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Washington, December 1943
WORTH REPEATING
JUNGLES OF CRIME: "If our metropolitan communities are allowed to
grow in the future without plan or
direction, the central business areas
will be surrounded by hollow shells
with large numbers of dilapidated
buildings and jungles of crime, while
on the outer rim of the city there will
spring up hundreds of small independent neighborhoods, each developed on
a model plan but without any organic
relationship to the central city. It
will be very expensive to operate an
urban structure which has as its center
half-empty schools and little-used
streets, sewers and water facilities—
and, at its periphery, a conglomeration of disconnected neighborhoods
which require a duplication of these
unused central facilities. The additional costs of providing services for
such a diffuse and poorly organized
city will completely break down the
already overloaded municipal debt
structure."
Homer Hoyt, Journal of Land and
Public Utility Economics, Third
Quarter 1943.
REDEVELOPMENT: "The post-war
builder is going to find the overwhelming part of his market in the medium
price dwelling field, and he is going to
find that he can build to this market
only if he can give the public the
openness of residential arrangements
and the general environmental character that competes with him at the
outskirts of the city. He will be
forced to seek sites for the houses he
builds at prices he can pay. If he cannot find them in the areas that need to
be redeveloped, he will find them in
areas that ought not to be developed."
Hugh Potter, President, Urban
Land Institute, American Sav*
ings and Loan News, November
1&43
REVOLUTIONS:" . . . There are two
kinds of 'revolution* in this vast field
of home-building. One is product
revolution; the other, process revolution. The first affects building methods gradually; the second requires
great changes, not only in building
methods, but also in the vital matter of
distribution. The prefabricated house,
is a process revolution, entailing the
development of entirely new means of
distribution. In addition . . . the
predominant consideration in the
low-cost small house is usable space.
Thus, 'gadgets' and new materials will
become part of low-cost homes only as
they become competitive in cost with
the things they are planned to supersede.
"Another and equally vital factor
will work to make the so-called 'miracle
home* something for the far, rather
than the near, future. That is the
personal preference of home-buyers for
the traditional style of home architecture/'
Duncan W. Edes, before Northeastern
Federal Savings League Conference
Boston, November 1943.
GADGETS: "We have all laughed for
years at the gadgetry of the home
developer: the fancy tile, the funny
plaster arches, the useless doodads.
But these gadgets often sell the home.
It's time to stop laughing at gadgets
and make worthier use of them.
Hedges, window boxes, street trees,
backyard planting are the city developer's gadgets, on a plane below the
city planner's blueprint, but valuable
instruments for achieving urban l i a bility."
Albert Mayer and Julian Whittlesey,
The Architectural Forum, November
1943.
SACRIFICE: " . . .
People will make
personal sacrifices to buy bonds if
they are stacking them up for a home."
Ralph H. Cake, American Savings
and Loan News, October 1943.
TRIPLE-THREAT GLASS: "Glass is
being transformed into a triple-threat
raw material for the industry of the
future. It will compete with steel,
with textiles, and with building materials. Its natural defects are being
overcome and its natural advantages
enhanced . . .
"Glass, under a new forming process,
is treated like a plastic in high-pressure
molding machinery and can be forced
into exact shapes that never before
could be made quickly and cheaply
from glass. This means that glass, one
of the best insulators known, will be
able to compete with plastics in new
developments im electricity and electronics, where delicate and accurately
made parts are required . . ."
Sydney B. Self, The Wall
Street Journal, October 26,1943.
POST-WAR BOOKSHELF
Although inclusion of title does not necessarily mean recommendation by the
Review, the following recent publications will be of interest,
DOWNTOWN
AIR
TERMINAL
FANTASTIC?:
By Earle K. Radford,
American City, August 1943. 470
Fourth Avenue, New York 6, N. Y.
PROBLEMS
OF
CONVERSION
FROM WAR PRODUCTION:
A
study of reconversion problems.
Available without charge from the
Truman Committee, Senate Office
Building, Washington 25, D. C.
RECOMMENDATIONS
FOR THE
DISPOSITION OF FEDERAL WAR
HOUSING: 8 pp. Available at 10*
from National Committee on the
Housing Emergency, Inc., 512 Fifth
Avenue, New York 18, N. Y.
WAR HOUSING: An excerpt from
the report of the Executive Council
of the American Federation of Labor
to the Annual Convention. October
1943. 3 pp. mimeo., free upon request. Full report, 35*. Available
from American Federation of Labor,
901 Massachusetts Avenue, N. W.,
Washington 25, D. C.
WARTIME "PROSPERITY"
AND
THE
FUTURE:
By Wesley C.
Mitchell. 40 pp. Available at 35* from
the National Bureau of Economic Research, New York, N. Y.
A HISTORY OF
PREFABRICATION: By Alfred Bruce and Harold
Sandbank. July 1943. 80 pp. Available from John B. Pierce Foundation,
40 West 40th Street, New York, N. Y.
COMBATTING BUILDING GRAFT
BY THE t( INDUSTRY
TECHNIQUE":
By Abraham Weinman.
American City. October 1943. Available at 35* from American City
Magazine Corporation, 470 Fourth
Avenue, New York 16, N. Y.
ESTIMATES OF THE CIVILIAN
POPULATION OF THE UNITED
STATES, BY COUNTIES, MARCH
1, 1948: Available from Department
of Commerce, Bureau of the P - - ™ Washington 25, D. C.
FEDERAL
DECEMBER - 1943
HOME
Page
LOAN
LOCAL L E N D E R S IN T H E PREFABRICATED
C O M M I S S I O N E R F A H E Y ON I N F L A T I O N A R Y
REGIONAL
INFLUENCES
INSURED
How
BANK
AGE
MANY
OF
THE
58
LENDING
WAR
IN
1943
61
OPERATIONS
ASSOCIATIONS
FAMILIES
63
IN POST-WAR
AMERICA?
66
T H E SAVINGS AND L O A N I N D U S T R Y I N 1942
CHAPTER
NATIONAL HOUSING
AGENCY
John B, Blandford, Jr., Administrate!
CHECKS
ADDED
67
GUIDE
81
A m e n d m e n t t o Rules a n d Regulations
Home Front
Members Prepare for F o u r t h W a r Loan
Directory Changes of Member, Federal, a n d Insured Institutions
Monthly Survey
r.__
62
70
72
75
77
REVIEW
ON I N T E R N A L
OF
•
•
TO ACCOUNTING
•
FEDERAL HOME LOAf
BANK ADMINISTRATE
John H. Fahey. Commissioner
FEDERAL HOME LOAN
BANK SYSTEM
FEDERAL SAVINGS AND LOAN
ASSOCIATIONS
FEDERAL SAVINGS AND LOAN
INSURANCE CORPORATION
HOME OWNERS' LOAN
CORPORATION
UNITED STATES HOUSING
CORPORATION
Vol. 10
•
•
•
TABLES:
New family dwelling units
Building costs
_
Savings a n d loan l e n d i n g .
Mortgage recordings
Total nonfarm foreclosures.__
F H A activity
Federal H o m e Loan Banks
Sales of U . S. war-savings bonds
Savings in selected financial institutions
Insured savings a n d loan associations
Quarterly tables
82-83
83-84
84-85
85-86
86
86
86
87
87
87
88
No. ,
SUBSCRIPTION PRICE OF REVIEW: The REVIEW is the Federa£Home Loan Bank Administration's medium of communication with member institutions
of the Federal Home Loan Bank System and is the only official organ or periodical publication of the Administration. The REVIEW will be sent to all member institutions without charge. To others the annual subscription price, which covers the cost of paper and printing, is $1. Single copies will be sold at 10 cents. Outside
of the United States, Canada, Mexico, and the-lnsular possessions, subscription price is $1.60; single copies, 15 cents. Subscriptions should be sent to and copies ordered
from Superintendent of Documents, Government Printing Office,Washington 25, D. C,
APPROVED BY THE BUREAU OF THE BUDGET
December 1943
57
LOCAL LENDERS IN THE PREFABRICATED AGE
What
is prefabrication
in the post-war
certaintyf
question.
world?
apt to mean to the savings and loan
Obviously
nobody
can say with any degree
but it is none too soon to be giving
This article
and possibilities
is an attempt
inherent
serious thought
to suggest some of the
in this phase of tomorrow^
•
ALTHOUGH prefabricate: 1 is not primarily a
product of the War, it has gained momentum in
the war-housing program that may well carry it into
peacetime construction on a greatly expanded scale.
In 1942 prefabrication (large y in war housing)
accounted for 16}£ percent of tot il home construction.
Before the War, the annual percentage was only
one-half of 1 percent. If this industry is able to
supply better houses at lower costs and quicker
delivery, it will indeed become a factor to be reckoned
with by thrift and home-financ ng institutious. The
changes that it will bring are by no means confined to
construction methods and design. The greater application of engineering and quantity production to
home building will require reorientation in planning,
distributing, and financing in i mass market. This
article attempts only to point out, without specific
forecasts, some of these new directions.
In later issues, the R E V I E W hopes to present factual reports on prefabrication levelopments to date.
So far, most prefabricated noising has been in the
low-cost field, below the ordiniry price range of new
homes. Small prefabricated houses are now being
produced for less than $3,000 Not all of them are
this cheap, of course—for prefabrication has defi-
industry
to
of
the
problems
housing.
nitely entered the medium and even higher brackets—
but enough has happened to indicate the practicability of considering the really low-cost home
among potential sources of business. No one expects
prefabrication to capture the entire post-war market,
but it ma}7 well account for a large segment, especially
in the low-cost field.
Two Principal Types
There are many conceptions of prefabrication, but
essentially it refers to any sort of tailoring or subassembly of building material, either on the site of
construction or at the factory. Both methods utilize
the principle of assembly-line production with the
resulting decrease in unit costs.
In site prefabrication, the lumber is pre-cut in a
"factory" set up at the construction site. The cut
lumber is assembled into wall frames, porches, roof
trusses, etc., the same pattern being used for all
panels of similar type. Wall frames are laid on the
floor while siding is nailed on and windows installed.
Then walls and previously assembled roofs are hoisted
into position.
The same procedure is followed in factory prefabrication, the complete product being shipped to the
site ready for erection. There are also variations
and combinations of these two methods. When the
complete unit can be purchased and shipped from the
factory, houses can be sold either singly or in large
quantities. Complete site prefabrication, however,
which calls for bringing the factory to the house is
economically suited only to large-scale projects. 1
Public A c c e p t a n c e
I t is not generally anticipated that in the first year
after the War prefabrication will be a major factor in
the total volume of construction. I t will grow as
rapidly as it demonstrates that better houses can
thus be produced at less cost.
Six rooms, six hours, ten men. This factory prefabricated house in Liberty
Hills, Charleston, South Carolina, was erect 3d between 9 a. m. and 3:20 p. m.
58
1
It should be noted that both types of prefabricated houses are already many
years old; complete factory-built houses have been sold in this country for more
than 30 years by several firms while "site prefabrication" is simply a convenient
term for expansion of a generally accepted idea which began with prefabricated
doors and windows, and has gradually expanded to other units.
Federal Home Loan Bank Review
The general public acceptance of prefabricated
housing may come sooner than some anticipate.
For one thing, the prefabricated house need not look
startlingly "different," at least at first. Modern
design in home furnishings, according to reports of
the furniture industry, is increasingly popular, and
acceptance of modern architecture, especially if tactfully introduced, may follow.
Demountable Homes
A prefabricated house may or may not be demountable. The wide use of demountable housing
in the future is now a moot question, with some
observers swinging to a negative view. Demountability creates additional cost and high salvage loss.
Technical progress may overcome these handicaps,
but there remains the factor of public favor; in 1937,
it will be remembered, the "trailer boom" inspired
large-scale prophecies of a completely mobile population, which did not come to pass. The demountable
house, which is a development of the trailer, may
supplement, without supplanting, a fixed abode.
If, however, the public shows a preference for
dwellings on a temporary location, innovations will
necessarily be introduced into common mortgageleu ding practices. At present, land, as well as the
structure on it forms part of the security behind a
mortgage instrument. The owner of a demountable
structure presumably would rather lease than buy
the land. This would conceivably lead to the financing of the house by the owner on a personal-property
basis with the land being financed through a separate
transaction between the mortgage lender and, perhaps, a land company.
M
Demountable n Mortgages
The status of a house as personal, as opposed to
real property is not a new legal conception. According to one recent discussion, "Legal mechanics now
exist and are available to the prefabricated housing
industry to deal with prefabricated houses as
personal property when selling such houses. The
intention could be appropriately specified in a conditional sales contract or in other appropriate instruments which, when recorded, would be binding upon
all parties subsequently dealing with the land. The
problem of financing such houses as personal property
therefore reduces itself not so much to a legal
problem but to the practical problem of establishing
appropriate financing facilities and r oi being able to
sell the houses on a personal property basis. In this
December 1943
This photograph shows site fabrication at Barlow Place in Portsmouth,
Virginia. The hole in the roof section is for the chimney flue.
the attitude of the public will play an important
part." *
Houses, of course, may be of temporary construction but not demountable. In peacetime, some such
houses may be built, as during the War, to serve
definite short-term needs, for people who want a
house to last only for 5 to 10 years. If the cost over
this period were no more than rent for inferior
accommodations, even if the trade-in value were
little or nothing by the time the owners were ready
for a better home, it would be a sound investment.
Long-Term Financing
But if prefabricated houses on permanent locations
meet the mortgage lenders' standards as to soundness of construction, no particular problem would be
involved in financing. It has been contended that
scientific construction can make the prefabricated
house more durable than the custom-built structure;
and that the technical advances already made in the
field of prefabrication will now support the issuance
of 15- to 20-year mortgages as adequately as 12- to
15-year loans. If these contentions are sound, the
current trend toward longer-term financing would
not be checked.
Just what the "proper" post-war interest rate on
mortgages will be, of course, depends on factors yet
to be demonstrated. Projections vary from 5 percent to as low as 3 percent. Prefabricated construction alone will not be the determining factor;
but the development of new mass markets might
1
Bettin Stalling, Regional Counsel, Chicago Regional Office, Home Owasrs'
Loan Corporation, before the Real Property Law Division of the American Bar
Association, Chicago, Illinois, August 24, 1943.
S9
accelerate the development of a lower "going" rate,
as well as new loan plans for which various proposals
have already been advanced. I t is reasonable to
assume that competition bttween large manufacturers in housing will, as in the history of the
automobile industry, gradually make for simpler,
more flexible financing of their products.
New Principles For Longer Usefulness
Given fundamental durability, prefabrication can
apply to the medium-priced md eventually to the
low-cost field new principles which make for extended
usefulness. In the past, a standard measure of a
house was the number of rooms—a fixed quantity as
a rule. When a family outgrew 5, 6, or 7 rooms, it
was time to look for a new house. However, panel
construction with interchangeable vertical and horizontal units can follow more readily any change in
the family size, age, or income. More or fewer
rooms may thus be provided by changing the
arrangement of the wall spice or by adding or
subtracting a prefabricated unit. A house that can
expand or change with the needs of the family is at
once more saleable and has riore enduring value—
factors worth considering ir long-term financing.
House, Lot, and Furniture?
A tenet of contemporary cesign is greater use of
outdoor living space, breaking the rigid barrier between "indoors" and "outdoors." If this particular
trend is carried into the low-cost field by prefabrication it will have a definite efiect upon site selection,
and the relative importance which home-financing institutions give to the house and the lot.
"Attractive communities of low-cost nor les may be quickly and economically
constructed almost anywhere." Indian Hi ad, Maryland, a war-housing project
of prefabricated, demountable homes.
60
The growth of prefabrication may well intensify
the use of built-in furnishings and gadgets. When
houses are sold in department stores, as is already the
case, it is natural that some of them will be sold furnished. Lending institutions in the future, whether
they like it or not, may be called upon to help finance
the complete home rather than the empty house.
Here, again, the automobile industry supplies a
convenient parallel: luxury equipment, once purchased separately by owners of high-priced cars, is
now included in the financing of the most inexpensive
makes. I t will be in the nature of prefabrication to
speed up this evolution, already well under way.
Beginnings of Post-War Lending
Several starts have recently been made toward
purchase plans for houses to be bought after the War.
Own-your-own-home clubs have sprung up in increasing numbers. One group selling prefabricated
houses operates through department store advanceorder sales and has the active participation of several
savings and loan associations.
Share accounts
definitely earmarked for the future home are accepted by one of the associations. Members of
another association club plan to build at the same
time through one contractor in order to economize
and this arrangement, while not new, may point the
way for individual home builders to profit from a
modified form of site prefabrication.
View From a Helicopter
In the past, with the exception of a few war-housing
projects, new large-scale developments have been
tied to existing highways, railroads, and utility connections. This need no longer be the case, if trends
in air transport, rural electrification, and prefabrication combine to modify these limitations. Any desirable land within 100 miles of a city may eventually
be its new suburban area; as war housing has proved,
attractive communities of low-cost homes may be
quickly and economically constructed almost anywhere. No longer would it be necessary for suburban
growth to "inch" out from an existing community.
This is taking a broad view of a possible coming
age. For its advent, the R E V I E W does not set a
date. Neither does it seem possible, nor for our purposes necessary, to specify precise degrees and
definitions of prefabrication; the end product, which
is better and cheaper housing through mass production for the benefit of increasing numbers of home
owners, is what matters,
(Continued on p. 75)
Federal Home Loan Bank Review
COMMISSIONER FAHEY ON INFLATIONARY
LENDING
Warning that real estate is the only important kind of property which
has always invited speculation where adequate checks have not yet
been established, the Federal Home Loan Bank Commissioner urges
the savings and loan industry to use "every possible influence" in
putting the brakes on inflationary mortgages.
The following excerpts are from an address by Federal Home Loan Bank Commissioner John H. Fahey
before the annual War Conference of the U. S. Building
and Loan League in Chicago on November 30.
. . . No feature of mortgage practice can enlist
the attention of the lending institutions of this
country to greater advantage than a thorough overhauling of our appraisal system. Because right
now in every direction institutions of all classes are
making inflated loans based almost entirely on
temporary market conditions and exaggerated appraisals, we are developing a situation which can
easily become a real menace and interfere seriously
with the prompt resumption of home building when
this tragic war ends.
. . . In the Federal Home Loan Bank Administration we are forced to recognize that threatening
practices of this kind are developing rapidly and assuming proportions which demand attention. Every
banker, business, and professional man of common
sense well knows that if things get out of hand in
this country under present conditions and we experience inflation in any degree, comparable to that
inflicted upon some of the European countries as a
result of World War I, we will fail miserably in our
attempts to provide for the people of this country
such a standard of living as they have a right to
expect. There are few businesses of any kind which
will represent much of a future to those now engaged
in them if in the years ahead the economic machine
gets out of control and goes into an inflationary tailspin.
Curbs Fairly Successful So Far
. . . Thus far we have been fairly successful in
curbing the evils of real inflation. In World War I,
from July 1914 to July 1918, the cost of living in the
United States rose 50.3 percent. From August 1939
to August 1943, it rose but half that figure, or 24.9
percent. The wholesale price index, including all
commodities other than farm products and foods
in the last war, rose 96.1 percent. For the comDecember 1943
parable period in this War, the increase has been held
to 37.5 percent. While in World War I, as an illustration, the price of steel plates increased over 187
percent, thus far those prices have shown no advances since August 1929.
While these figures are encouraging, we certainly
ought to understand the difficulties w^e will confront
if they begin to balloon or if any other important
segment of the American economy goes "hay-wire."
. . . Under the powers delegated to the Federal
Reserve Board, loans against securities are limited
to 60 percent of their market value and the Board
has the power to increase that margin. Consumer
credit is strictly regulated and all bank loans up to.
$1,500 are granted only upon a statement of purpose
which shows a legitimate need. Such loans must be
paid in twelve months. For installment purchases
of articles listed in the Board's regulations, down
payments of 20 to 33^ percent are required and these
payments must be made from the purchaser's own
funds. . . . While ceilings have been fixed on
rents, and they represent a restraining influence on
real estate prices, the fact is that real estate as a
whole is the only important kind of property, which
has always invited speculation, where adequate
checks have not yet been established.
Rural and Urban Prices Rise
Secretary of Agriculture Wickard has repeatedly
warned of the dangers inherent in the farm land boom
which has already reached alarming heights. Only
recently he pointed out that the prices of farm lands
have already been hoisted at about the same rate as
in the last war and are increasing from month to
month. Some people remember what that led to.
Those who are not familiar with the facts should
read the record.
. . . Prices of urban homes are moving up with
almost equal rapidity and the trend is as serious as
that of farm land prices. In too many sections war
workers are being sold houses which they are almost
certain to abandon after the war, at prices far out
61
of line with real values. . . A worker goes from
his former employment into a war-industry center
remote from his home and leases his family behind.
After a time, anxious to have the family with him
and unable because of the housing shortage to rent
anything acceptable, he is ready to buy even at an
excessive price. He is not disturbed about the price
because of higher wages than he ever before enjoyed
and the ability to buy with a iimited down payment
and long-time amortized mortgage financing which
really represents but little more than rent. While it
is true that some of these workers may remain in
the communities where they now have war jobs,
about three million workers have moved from their
former homes, a migration ne^er equalled before in
this country.
Reminiscent of 1922-1928
Undoubtedly there will be c ertain shifts in the location of industries in the post-war period, but those
who believe that a large proportion of the workers
now employed on war contracts, remote from their
former homes, will remain where they are now are
just fooling themselves . . .
I am most interested to hear from one city after
another where war work has brought a substantial,
sometimes sensational, increase in population, that
a large part of it is going to remain, that things have
changed for that city and it is on the way to permanent and greater growth. All this is not only
reminiscent of 1922 to 1928 but of every land boom
and housing boom encourage I by unsound lending
and excessive prices, for many decades.
Trend is Spreading
. . . There may sometimes be good reasons, which
are not apparent on the sur'ace, for lending more
money on a home than seems justifiable. This can
hardly be true, however, when loans of this sort are
being made in all sections of the country. The
figures on 1,186 loans made in connection with sales
by HOLC borrowers during the last three months
are certainly disturbing as a:i indication of present
trends. The new mortgages made were $1,793,723
in excess of the HOLC loan balances on the properties,
an average increase of over $1,500 a property, or 78
percent more than the HOLC balance at pay-off.
Moreover, they were 104.2 percent of the original
HOLC loans on these properties, which, let us remember, included deliquent principal and interest
and usually overdue taxes, nsurance, and repairs.
The houses on which these new loans were placed
averaged over 22 years old.
62
These inflationary loans were not confined to any
one section of the country. They were made in more
than half our States and have been spreading from
month to month. They were all classes of mortgage
lenders, commercial banks, savings and loan assocations, mutual savings banks, insurance companies
and private mortgage concerns.
. . . This trend is something to which not only
this organization, but every other banking organization in the country should give its earnest attention.
I do not think it is sufficient to pass resolutions about
it. Warnings will not, in my opinion, restrict the
activities of reckless lenders whose practices, if persisted in, eventually react in greater or lesser degree
upon the entire business. I think organizations like
this should address themselves vigorously to the
problems involved and suggest methods of forestalling the troubles which are almost certain to
develop unless preventive measures are applied
promptly. It is particularly important that the
savings and loan associations of the country should
be in the front rank in exercising every possible
influence to put the brakes on inflationary mortgages.
Amendment to Rules and Regulations
FHLBA
Bulletin No. 33
A M E N D M E N T TO R U L E S AND R E G U L A T I O N S FOR F E D E R A L
SAVINGS AND LOAN SYSTEM RELATING TO ADDITIONAL L E N D I N G
POWERS FOR ASSOCIATIONS OPERATING UNDER CHARTER K.
(Effective November 27, 1943.)
Subparagraph (d) of Section 202.9 of the Rules and
Regulations for the Federal Savings and Loan System
was amended by the Federal Home Loan Bank
Administration on November 27 by the addition
of a new subparagraph (3). This paragraph will
provide associations operating under Charter K with
proper mechanism for submitting to the Federal
Home Loan Bank Administration for consideration
proposed loan plans which affect either Section 13
or 14 of the Charter.
The new subparagraph reads as follows:
" 3 . Amendment inserting the following Section
14.1 between Sections 14 and 15:
'14.1. Additional Lending Powers. All loans shall
be made in accordance with Sections 13 and 14 of this
Charter unless the Federal Home Loan Bank Administration, upon application from the association
for such approval, approves another loan plan, practice or procedure or permits a higher percentage of
the appraised value of the security to be loaned.
Such authority shall be in addition to, and not in
abrogation of, any existing authority or procedure
provided in this Charter/ "
This amendment became effective upon filing with
The Federal Register on November 27.
Federal Home Loan Bank Review
REGIONAL INFLUENCES OF THE WAR IN 1943
OPERATIONS OF INSURED ASSOCIATIONS
A study, by States, of the balance of net first mortgages held by insured savings and loan associations shows wide variations. Increases
in private share capital and liquid resources likewise reflect the
regional impact of War.
•
A geographical survey of the condition of insured
associations on September 30, 1943, compared
with the same date a year ago shows some trends not
revealed by other studies of the year's work so far.
As might be expected, in all States there has been
an increase in total assets and private share capital,
and there has been a phenomenal and general gain in
liquid resources. However, the rate of increase has
varied greatly from State to State. On the other
hand, the balance of net first mortgages shows a wide
range of decreases and increases.
Gains Reflect Wartime Activity
The national average increase in net first mortgages was 4 percent. Largest gains were in New
Jersey, 25 percent, and Connecticut, 23 percent,
States in which the number of insured associations
increased by 17 and 4, respectively. More typical,
perhaps, were the changes reported by States where
the number of insured associations showed little
change.
In Maryland, containing crowded war centers, the
gain was 13 percent, indicating that the rise in the
volume of new mortgage-lending more than offset
repayments on existing loans. In California, having
136 insured associations of which five became insured during the year ending September 1943, the
rise in the net balance of mortgages outstanding was
11 percent. Some California associations are especially active in war housing.
ties for home construction loans, the rising volume of
home loans for the purchase of existing properties—a
situation not without its elements of danger, as
pointed out in the November issue of the R E V I E W —
and the repayment of loans ahead of schedule. I t is
this last factor which is the most encouraging from
the point of view of the national welfare and institutional stability.
Geographical Pattern of Loan Balances
The geographical pattern followed by the States
sharing in the increased loan balance (see Figure 1)
forms an almost unbroken belt from the VermontMassachusetts line in New England, through Midwestern States, hence southwest (with the exception
of Colorado, Nevada, and Nebraska) to the Coast.
Mississippi and Georgia were the only Southern
States recording gains in this account.
Share Capital Influx Varies
While on a national basis the balance of private
savings invested in insured savings and loan associations increased 20 percent from a total of $2,834,000,000 on September 30, 1942, to $3,390,000,000 a
year later, representing the largest figure on record,
a look at the map again reveals an interesting geographical pattern. Figure 2 shows that, with few
Declines M a y Conceal Repayments
The decreases were equally interesting. Montana
and Idaho, both States which have lost population as
a result of the War, each showed a decline of 7 percent in the volume of outstanding mortgages. Yet
in Florida, where the War has swelled civilian population, there was a decline of 1 percent. Similarly, the
District of Columbia, where population and mortgage
lending have risen simultaneously, showed a fractional reduction in net balances.
For the country as a whole, the net balance picture
reflects mingled influences: the decline in opportuniDecember 1943
FIGURE 1
63
INCREASE IN PRIVATE REPURCHASABLE CAPITAL
INSURED SAVINGS AND LOAN
SEPTEMBER 30, 1942 -
ASSOCIATIONS
SEPTEMBER
3 0 , 1943
FIGURE 2
exceptions, those States which showed losses or only
moderate gains in private repurchasable capital were
also those in which a loss occurred in their net mortgage accounts. (Figure 1.) Such exceptions as
Florida, Washington, Oregon, and the District of
Columbia attracted substantial amounts of new
capital but showed losses in net mortgage accounts.
I t seems fair to credit insured associations in those
States with assisting many citizens to make new
savings while retiring old debts.
Utah, Arizona, Minnesota, and Washington all
registered increases in private share capital exceeding 30 percent. I n the same group were Connecticut and New Jersey where the rise in number of
newly insured associations during the reporting period was a determining factor. The 19 States showing more moderate gains of 11 to 20 percent, and
the remaining 9 recording rises up to 10 percent
were primarily Central States and in areas where
there has been no concentration of war-industry
activity, as can be seen from the accompanying
map. Analysis by Bank Districts shows the greatest
gains in share capital in three war-industry areas—
the Portland, Pittsburgh, and Los Angeles regions,
where increases ranged from 25 to 28 percent.
Total Assets Gain Everywhere
In every State, total resources of insured savings
and loan associations rose during the 12 months
ending September 30, 1943. On a national basis
the gain was from $3,513,000,000 to an all-time
high of $4,038,000,000, or 15 percent. Every District and State shared in the increase, with gains
ranging from a low of 5 percent in the Little Rock
region to 22 percent in the Los Angeles area. The
64
rise in total resources by States corresponds roughly
to the pattern of "war prosperity,'' agricultural
Nebraska, for example, showing a moderate rise of
7 percent while Washington increased 23 percent.
New Hampshire, not a "boom State'' but a thrifty
one, showed a gain of 28 percent in total assets of
its four insured associations.
During the period between September 30, 1942,
and September 30, 1943, the cash accounts of insured
savings and loan associations throughout the country
suffered a reduction, which all occurred in the third
quarter of this year, the period of the Third War
Loan. Prior to that time there had been substantial
gains each quarter from a year earlier. Total cash
held by insured institutions at the close of September
1943 stood at $186,954,000 as compared^with
$193,818,000 a year before.
FIGURE 3
Government Bonds Surpass Cash Accounts
Following the War Loan drive in April 1943, the
Government-bond portfolio of insured institutions
exceeded their cash accounts for the first time on
record. By September 30,1943, the $580,087,000 in
these bonds, an all-time peak for this type of investment, represented an excess of $393,133,000 over
the cash account. This concentration of funds in
"Governments" has been evident, of course, only
in the last 2 years. Prior to World War I I , most
funds of insured associations not invested in mortgages were generally held in the form of cash. Every
District and State shared in the 400-percent gain.
For the country as a whole, the aggregate liquid
assets of insured associations showed a 148-percent
increase. Gains of over 150 percent were recorded
in 10 of the Eastern Seaboard States and in WashingFederal Home Loan Bank Review
ton, California, Nevada, Utah, and Arizona. As
Figure 3 indicates, there is discernible a geographical
pattern not unrelated to those in Figures 1 and 2, the
States with the greatest gains in liquidity also being
among those having declines in net mortgage balances
and sizable gains in private repurchasable shares.
Cash and Government obligations of
savings and loan associations
Ratio of Liquidity to Share Capital
U N I T E D STATES
The total of the cash and Government-bond accounts held by insured associations at the close of
September 1943 was equal to 19 percent of their total
assets as compared with a ratio of 9 percent on September 30, 1942. As in the previous year, the highest
liquidity-asset ratio was recorded in the Portland
District (27 percent). With the exception of Delaware (which has but one insured association in
operation) every State reflected an increase in this
ratio over the previous year.
Even greater gains were recorded when liquid
assets are related to private repurchasable capital.
This liquidity-capital ratio stood at 23 percent at the
close of the reporting period as compared with 11
percent a year before. As Figure 4 reveals, over half
of the 48 States—including the entire Western area,
the East Central States as far south as Alabama and
Florida, and the New England Coast States—
had liquidity-capital ratios exceeding 20 percent.
TO PRIVATE SHARE
INSURED SAVINGS AND LOAN
AS OF SEPTEMBER
ASSOCIATIONS
30, 1943
Cash and Government
obligations
S t a t e a n d District.
1943
CAPITAL
Connecticut
Maine
M a s s a c h u s e t t s __
New Hampshire
R h o d e Island
Vermont
New York
1942
8.8
22.6
19.4
6.5
23.2
7.8
_ __
10, 500
171
27, 550
4,245
150
917
1,954
100
8,778
789
122
445
437.4
71.0
213.9
438.0
23.0
106.1
18.4
9.2
19.1
31.4
6.3
17.7
4.9
6.4
6.9
7.4
6.0
9.2
21.3
10.7
23.1
39.5
8.0
20.0
6.0
8.1
8.2
8.4
8.0
10.3
_
80, 377
32, 577
146.7
16.8
7.9
20.5
10.1
25,153
55,224
10,072
22, 505
149.7
145.4
18.9
16.0
10.2
7.2
23.7
19.2
13.3
9.1
33,272
13,986
137.9
14.1
7.2
16.8
9.1
8
29, 444
3,820
15
11, 736
2,235
-46.7
150.9
70.9
2.0
14.0
15.9
4.3
6.9
9.4
2.1
16.6
19.5
4.8
8.6
12.9
72, 394
22, 304
224.6
17.1
6.0
20.0
7.4
3,789
7,642
21,251
8,116
8,452
11,430
5,931
5,783
1,963
1,877
6,330
2,718
2,025
3,377
1,977
2,037
93.0
307.1
235.7
198.6
317.4
238.5
200.0
183. 9
20.8
15.2
23.6
15.9
11.4
19.7
17.8
11.8
11.6
4.2
8.3
6.3
3.3
6.6
6.2
4.5
23.1
17.0
27.6
18.5
14.2
23.5
19.7
13.6
13.5
5.0
10.4
7.6
4.4
8.3
6.9
5.5
.
Alabama
District of Columbia.__
Florida
Georgia
Maryland,.
N o r t h Carolina
.__
South Carolina
Virginia
10.9
_ 185, 718
86,166
115.5
24.4
12.9
28.6
15.5
___
15,434
162, 686
7,598
7,992
75,100
3,074
93.1
116.6
147.2
20.1
25.3
18.7
11.0
13.4
8.3
22.3
29.8
22.5
12.7
16.2
10.6
65, 730
26, 702
146. 2
23.1
10.9
27.0
13.2
.
41,154
24, 576
17, 342
9,360
137.3
162.6
23.3
23.0
11.2
10.5
27.1
26.9
13.7
12.3
Indianapolis
70, 233
29, 585
137.4
16.7
8.0
20.2
10.3
Illinois
Wisconsin
57,884
12,349
23, 979
5,606
141.4
120.3
18.1
12.2
8.7
5.8
21.8
14.9
11.1
7.8
Des Moines
42,038
15, 275
175.2
18.4
7.6
21.2
9.3
4,863
21, 356
12, 519
2,587
713
2,315
5,490
6,014
1,133
323
110.1
289.0
108.2
128.3
120.7
14.3
25.0
12.8
31.6
23.7
7.6
7.8
6.6
15.8
11.2
15.5
29.3
14.8
35.1
28.6
8.5
9.9
8.2
18.9
14.7
37,131
17,152
116.5
14.3
6.9
17.1
8.4
2,684
11,758
1,515
1, 304
19,870
1,214
4,961
741
584
9,652
121.1
137.0
104. 5
123.3
105.9
14.7
11.6
14.9
17.7
16.3
6.7
5.0
7.9
9.1
8.5
17.0
14.3
16.9
20.9
19.2
8.1
6.2
9.1
10.5
10.1
24, 258
12,061
101.1
14.8
7.8
17.5
9.7
6, 275
6,408
1,800
9,775
3,266
3,382
546
4,867
92.1
89.5
229.7
100.8
17.8
13.1
15.3
14.4
9.7
7.4
4.9
7.6 j
20.9
16.1
17.8
16.7
12.3
9.8
6,2
8.9
50,715
20,190
151.2
27.2
13.0
32.1
16.4
2,446
3,124
5,518
6,871
31, 504
1,052
200
1,292
1.501
2,322
1,934
12, 524
577
40
89.3
108.1
137. 6
255.3
151.5
82.3
400.0
25.3
24.5
23.7
26.4
28.9
20.3
32.4
14.6 29.7
12.6 ; 27.4
11.3 28.3
9.5 36.3
14.1 33.2
12.1 23.5
8.5 34.4
19.2
14.2
14.8
14.3
17.2
15.1
11.0
61, 642
21, 666
184. 5
16.5
7.1
20.7
9.1
1,686
290
58, 512
20, 661
310
115
1,134 |
600
481.4
183.2
169.6
89.0
20.0
16.3
32.1
23.5
4.4
7.0
14.0
13.7
24.3
20.5
35.2
26.0
5.8
9.0
15.7
15.2
Iowa
Minnesota
Missouri
North Dakota
South D a k o t a
Little Rock
Arkansas
Louisiana
Mississippi
N e w Mexico
Texas
.
...
__.
Idaho.
_.
Montana
Oregon
Utah
Washington..
Wyoming
Alaska,
Los Angeles
Arizona
California
Nevada
Hawaii
1943
19.0
Portland
561780—42-
Share capital
147.6
Winston-Salem
Colorado
Kansas
Nebraska
Oklahoma
December 1943
1942
257.2
Delaware
Pennsylvania
W e s t Virginia
Kentucky
Ohio
Tennessee
Percent ->q.o
increase
12,188
Pittsburgh
Cincinnati
As a percent of
Assets
43, 533
N e w Jersey
New York
Topeka
FIGURE
1942
$767, 041 $309,852
Boston
Chicago
Of the $1,468,000,000 of new capital received by all
operating savings and loan associations during the
period between October 1, 1942 and September 30,
1943, over $1,083,000,000, or 74 percent, was invested in associations insured by the Federal Savings
(Continued on p. 69)
RATIO OF LIQUID ASSETS
[Dollar amounts are shown in thousands]
Indiana
Michigan
Progress oi Insured Associations
insured
._ . . .
-
4
65
HOW MANY FAMILIES IN POST-WAR AMERICA?
•
T H E Census Bureau
expects the peak year
[flH fSH KnH I °^ P°S^ ~war ^row^n
llSMI
H l
iVfl
•if
m
Sflfln
R S |
w S
K T
PvSI
number of American famIfc^
^ e s *'° c o m e m 1947, when
film
^ e e s t i m a t e d number will
BVM J be 38,609,000, almost a
i million more than in 1946.
According to a forecast released this fall, in succeeding years through 1960 the annual increase will be
more moderate, at the rate of less than half a million.
In 1944, as the result of inductions and their effect
upon family life, a net loss of 66,000 in the number of
families is forecast, the increase resuming in 1945
and 1946, which are assumed to be the years of
demobilization.
These estimates are based upon the 1940 Census
definition of a family as a unit comprised of a family
head and all other related persons in the home who
share common housekeeping arrangements. The
estimate allows both for the usual percentage of
delays in establishing households after marriage and
for the additional postponements occasioned by the
War.
W a r losses and marriages
The effect of war losses, it will be noted, is spread
over 15 years following the War. I t begins with
1946 on the assumption of 110,000 men killed, confined to service-men's hospitals, or otherwise withdrawn from families as a result of the War. The
figure of 110,000 is in no sense a forecast of American
war casualties. I t is assumed, however, that this
figure would result in a total loss of 84,000 families
in the first 15 years after the War. While estimates
of casualties will alter with the progress of the War,
the proportion of families lost; will remain constant
and the figures for the anticipated loss for each postwar year may be multiplied by the necessary; factor
to obtain the estimated figure.
The expected increase in internal migration is not
included, as no evidence is available to indicate that
this movement during the War has increased or decreased the number of families in the United States
as a whole. An increase in the rate of divorce and
remarriage usually follows a war, but does not affect
the total number of families.
Estimates (see accompanying table) follow rather
closely the anticipated post-war marriage rate, with
66
adjustment for expected delays in establishing
homes.
In releasing its estimates, the Bureau of the Census pointed out that, although the years 1945 and
1946 were arbitrarily designated as the period of demobilization, "the user may observe the fluctuations
in the year-to-year family increases that demobilization is likely to introduce in the estimates, and he
may advance or postpone these fluctuations according to his own judgment. 7 '
While the Census forecast from 1940 through 1960
does not include separate estimates of farm and nonfarm families, it is expected that the proportion of
rural-farm families, which declined from 22.1 percent of all families in 1930 to 20.2 percent in 1940,
will continue to decline after the War.
Although increases in the number of nonfarm
families are, of course, a factor in estimating the
amount of home building—business conditions, family
incomes, building costs, and other elements are
likewise extremely important. Caution may be indicated in placing too much reliance upon the anticipated number of families as a forecast of the amount
of building. While during the twenties, 127 new
homes were provided for every 100 new families,
during the thirties only 61 new dwelling units were
provided for every increase of 100 families, according
to a study ("How Much Did We Build?") published
in the R E V I E W , September 1942, page 400.
Estimated number of families in the U n i t e d States
under wartime a n d post-war conditions
[Years 1945 and 1946 assumed as period of demobilization]
E s t i m a t e d n u m b e r of
families u n d e r w a r t i m e conditions J
Y e a r ( J a n u a r y 1)
Number
19401941
1942
1943
1944_
1945
1946
1947
1948
1949
1950
1955
1960
.
_
34,823,000
35,462,000
36, 111, 000
36, 610,000
36, 544. 000
36, 783,000
37, 616, 000
38, 609,000
39,112,000
39, 435,000
39, 757,000
42,095,000
44, 235,000
Estimated
n u m b e r of
families lost
(—) d u r i n g
preceding y e a r
Increase
d u r i n g pre- for each 110,000
w a r losses
ceding year
639,000
649,000
499,000
-66,000
239,000
833,000
993,000
503,000
323,000
322,000
2 468, 000
2 428,000
-13,000
-19,000
-17,000
-11,000
-6,000
2
-2,400
2
-1,200
i Assuming no war losses, but making allowances for the unusual marriage rates
during the 1940's, the delayed establishment of new families, the disestablishment
of families of inductees during the war, and the reestablishment of inductees'
families after the war.
2
Annual average for the preceding five-year period.
Federal Home Loan Bank Review
THE SAVINGS AND LOAN INDUSTRY IN 1942
The condition of all operating savings and loan associations, as shown
by the 1942 statement of condition, provided a gratifying contrast to
the anticipated effects of War.
Assets continued upward, real estate
holdings declined, and the reserve position was strengthened.
•
T H E condition of the savings and loan industry
at the end of 1942 belied the early apprehensions
in some quarters regarding the probable effects of
operation under a wartime economy. During the
year, total assets of all operating associations increased 2 percent to $6,121,000,000, share capital
rose 6 percent, liquid assets showed an outstanding
growth, and an increasingly favorable reserve position
was attained.
I t is true that the rate of expansion in total resources fell considerably below the 6-percent increase
shown at the end of 1941. However, the continuation of the upward trend evident since 1936 represents a remarkable achievement in the face of the
adverse construction-mortgage market and the large
proportions of the current family incomes being
absorbed through higher taxes and direct purchase
of war bonds by the public.
While the accompanying statement of condition
shows that total assets increased $109,690,000, a more
realistic picture of the progress made during the year
can be gained by deducting the mortgage pledged
shares. These pledged-share accounts, which are
generally being displaced through greater use of the
direct-reduction loan plan, are still held by some
associations for accumulations against sinking-fund
loan accounts. Thus, they represent only a bookkeeping offset against the mortgage loan account.
When this adjustment is made it shows that the
assets grew by $129 million from the 1941 figure.
number of Bank System members to all operating
associations increased from 55 to 57 percent. Their
aggregate assets—$5,025,450,000—accounted for 82
percent of total industry assets compared with 80
percent in 1941. The average assets of reporting
members amounted to $1,345,000, or nearly four
times those of nonmember associations.
Outstanding Gains in Liquidity
The growth of liquid assets in all operating savings
and loan associations was the outstanding feature of
the year. Investments showed the phenomenal increase of $212,000,000, or 116 percent, amounting to
$396,000,000 at the end of 1942. This was in contrast to the $184,000,000 held a year previous after
a 23-percent gain over 1940. The investment account, composed principally of U. S. Government
bond holdings, reflects the participation of the in-
A v e r a s e Size Increases
At the same time that assets were increasing, the
number of operating associations continued to decrease, dropping 5 percent during the year. At the
end of 1942, the 6,539 operating savings and loan
associations had average assets of $936,000—a rise
of 7 percent above the 1941 average of $870,000 for
6,905 institutions.
Member associations of the Federal Home Loan
Bank System continued to improve their position
both absolutely * and in relation to the industry as a
whole. During the past year the percentage of the
1
See "Members Grew in Strength Last Year," FHLB REVIEW, September
1943, p. 357.
December 1943
The continued upward trend of assets of all operating savings and loan associations is shown in this chart. Aggregate assets of all associations were $6,121,000,000 with members of the Bank System accounting for 82 percent of the
total.
67
dustry in war financing as well as an accelerated
trend toward liquidity of the associations. Investments now represent 6 percent of total assets compared with only 3 percent in 1941.
The cash account also showed a substantial growth,
although not on a par with the investment increase.
This account rose $63,000,000, or 19 percent, to
$403,000,000, compared with a 13-percent increase
the previous year when it amounted to $340,000,000.
At the end of 1942, cash represented 7 percent of
total assets compared to 6 percent in 1941.
The cash and investment accounts were the only
major asset items to reflect any increase during 1942.
Together they amounted to almost $800 million as
against $524 million in 1941. Thirteen percent of
total assets were contained in these two accounts in
1942 compared with 9 percent the previous year.
A negligible rise in the furniture and fixture account
was the only other increase in an asset item.
Loan and Real-Estate Accounts Drop
During the calendar year 1942, lending activity of
all savings and loan associations leveled out after the
decided upturn (10 percent) experienced in 1941.
The unadjusted item of mortgage loans shown on the
balance sheet reflects a fractional decrease of 0.14
percent to $4,792,000,000—78 percent of total assets.
After adjustment for shares pledged against loans,
the mortgage portfolio reflects a fractional increase
of 0.29 percent ($13,000,000) over the 1941 amount.
This is far below the gains experienced in the 2 preceding years when mortgage loans (less pledged
shares) rose 11.5 and 8.7 percent, respectively.
Over $1 billion of new mortgage loans were made
during 1942, but little more than 1 percent of this
amount was added to the net loan balance at the end
of the year. This is in striking contrast to 1941
when more than one-third of the new mortgage loans
Comparative statement of condition for all operating savings and loan associations in the United States,
1942 and 1941
[Source: Annual reports of S t a t e savings a n d loan supervisors—Summary of m e m b e r s ' consolidated a n n u a l reports]
[Dollar a m o u n t s are shown in thousands]
All operating associations
Ratio to total
assets
Increase or decrease
1942 t o 1941
Item
ASSETS
Mortgage loans 2
Other loans
Real estate sold on contract
Real estate owned
Investments
Cash
Office building
F u r n i t u r e a n d fixtures
Other assets
T o t a l assets
LIABILITIES AND
1941
1942
$4, 791, 624
41,481
209, 538
204, 172
395, 624
403, 075
54, 003
8,485
12, 926
$4, 798, 453
59, 922
219, 181
327, 620
183, 542
339, 751
56, 105
8,366
18, 297
Percent
78. 28
0. 68
3. 42
3. 34
6.46
6. 59
0. 88
0. 14
0.21
Percent
- $ 6 , 829
79. 82
-18,441
1.00
- 9, 643
3. 65
5.45 - 1 2 3 , 4 4 8
3.05 + 212, 082
5. 65 + 63,324
0.93
- 2 , 102
0. 14
+ 118
0. 31
- 5 , 371
- 0 . 14
- 3 0 . 78
- 4 . 40
- 3 7 . 68
f 115. 55
+ 18. 64
- 3 . 75
+ 1. 41
-29.35
6, 120, 928
6,011,237
100. 00
100. 00 + 109, 690
+ 1. 82
167,
4, 515,
226,
401,
153,
33,
90,
32,
499,
195,
4, 258,
246,
392,
255,
72,
87,
32,
469,
692
919
340
858
550
547
166
729
436
2.74
73. 78
3. 71
6.56
2. 51
0. 54
1. 48
0. 52
8. 16
-27,791
3.25
70. 85 + 257,031
4. 10 - 1 9 , 541
+ 8,413
6. 54
4. 25 - 1 0 2 , 0 1 9
1.21
-39,439
1.45
+ 3,580
0. 54
-639
7. 81 + 30,095
-14.20
+ 6. 04
- 7 . 93
+ 2. 14
- 3 9 . 92
- 5 4 . 36
+ 4. 11
- 1 . 95
+ 6.41
6, 011, 237
100. 00
100. 00 + 1 0 9 , 690
-1. 82
1941
Amount
CAPITAL
U. S. G o v e r n m e n t investments
P r i v a t e repurchasable capital
Mortgage pledged shares
Deposits a n d investment certificates
Borrowed money
Loans in process
Other liabilities 3
P e r m a n e n t reserve, a n d g u a r a n t y stock
General reserves, undivided profits, a n d surplus_
Total liabilities a n d c a p i t a l .
Percent
change
1942
902
950
799
271
531
108
746
090
531
6, 120, 928
1
Excludes State-chartered associations in liquidation (both voluntary a n d involuntary) when s t a t u s is so reported in t h e
State supervisors' reports or by otheir reliable sources.
2
Includes advances a n d accrued receivables, t h e . latter principally interest due on mortgages.
3
Includes deferred credits a n d specific reserves.
68
Federal Home Loan Bank Review
Estimated number a n d amount of assets held
b y a l l operating savings a n d loan
associations, 1 9 4 2 - 1 9 4 1
[Dollar a m o u n t s are shown in thousands]
Assets
Number
Changes in Bank District Picture
Federal H o m e Loan
Bank District
1942
UNITED STATES. _
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
1941
1942
1941
6, 539 6, 905 $6, 120, 928 $6, 001, 237
690, 390
709, 712
348
1—Boston
353
825, 945
789, 785
958 1, 115
2—New York
500, 659
496, 420
1, 306 1,402
3—Pittsburgh
664, 322
679, 068
680
648
4—Winston-Salem
883 1, 092, 791 1, 064, 451
841
5—Cincinnati
324, 955
342, 416
326
325
6—Indianapolis _ _
563, 506
573, 520
782
772
7—Chicago
319, 190
330, 492
389
386
8—Des Moines___
256, 709
261, 120
316
312
9—Little Rock.__
249, 613
267, 742
306
298
10—Topeka
190, 817
207, 227
157
160
11—Portland
360, 680
370, 635
196
185
12—LosAngeles__
written appeared as net additions to year-end loans
outstanding.
The exigencies of the wartime housing situation
have acted as a stimulus to the sale of existing properties and enabled savings and loan associations to
reduce their real-estate owned accounts at an accelerated pace. By the end of 1942 this item had been
reduced 38 percent ($124,000,000) to slightly over
$204,000,000 and represented only 3 percent of total
assets compared with 5 percent in 1941.
Considering the small amount of real estate owned,
and the fact that the general reserve and undivided
profit accounts increased $30 million during the year
to a total of $500 million, the reserve position was
substantially strengthened. This is only the second
time in several years that the dollar volume of these
accounts has increased from one year to the next.
For each book-value dollar of real-estate owned
there is now $2.45 in the reserve and surplus accounts
compared to $1.43 at the end of 1941.
The inflow of private repurchasable capital continued at a substantial rate, particularly during
the latter half of the year. Largely as a result of
the annual excess of new investments over repurchases, total private repurchasable capital increased
$257,000,000—a gain of 6 percent over 1941.
At the same time, U. S. Government investments
(Treasury and HOLC) in savings and loan associations were reduced by 14 percent and stood at $168
million. Because of the greatly reduced field for
lending activity, a complete reversal was recorded in
December 1943
the borrowed money account which declined 40 per
cent in contrast to a 10-percent increase during the
previous year. This reflects the continued downward trend in F H L Bank advances from the all-time
high reached at the end of 1941.
A study, by F H L Bank Districts, of asset changes
in all operating savings and loan associations reveals
some changes from the 1941 pattern. While increases were recorded in the same areas (all but New
York and Pittsburgh) there was considerably less
spread in the percentage gains registered. Associations in the Portland District showed the greatest
expansion—9 percent—in contrast to the top gain
in 1941 of 15 percent in Winston-Salem associations.
Other increases ranged from 7 percent for all associations in the Topeka region to less than 2 percent in
the Little Rock, and Chicago Districts. Assets of
associations in the New York area dropped 4 percent,
while those of Pittsburgh associations decreased less
than 1 percent.
Insured Associations
(Continued from p. 65)
and Loan Insurance Corporation. Insured associations now account for 62 percent of the assets of all
savings and loan associations.
The number of associations insured at the close of
September 1943 represented a net gain of only 54
over the same month a year previous. Of the eight
areas showing gains in number of insured associations, the New York region showed the greatest
increase, with 17 additions in New Jersey and 4 in
New York. The Pittsburgh District ranked second
with 17 additions, all accounted for by the State of
Pennsylvania. The Topeka, Des Moines, and Portland Districts reported fewer insured associations in
operation at the close of September 1943 than a
year previous, with decreases of 3, 2, and 1 association, respectively. Only one District, the Little
Rock area, showed no change in the number of
insured associations for the reporting period.
At the close of the reporting period, 66 percent of
all member savings and loan associations of the
Federal Home Loan Bank System were insured, and
they held 75 percent of the aggregate assets of all
member savings and loan associations. Insured
associations are now operating in every State as well
as in the District of Columbia, Alaska, and Hawaii.
69
nnn
Lessons through
experience
Results of t h e T h i r d War Loan
drive demonstrate t h e importance of
contact on a person-to-person basis.
Nearly 2% billion dollars of E bonds
were sold as compared with 1% billions
during the Second drive.
T r i b u t e should be paid t o t h e marvelous cooperation of t h e huge volunteer sales a r m y a n d of t h e people who
had to handle t h e less glorious p a r t s
of t h e operations. T h e enthusiasm of
local committees a n d their anxiety
t o meet quotas leads sometimes, however, t o " b a d selling" such as promotion of sales financed by direct borrowing from banks. Nevertheless, according to officials of t h e Treasury
D e p a r t m e n t , t h e most i m p o r t a n t lesson of t h e Third W a r Loan drive is
t h e value of personal solicitation.
About 52 percent of t h e individuals in
cities a n d towns who were asked directly to buy extra bonds in September did
so. I n farm areas the percentage was
even higher—61 percent. These figures
are in startling contrast t o t h e purchasers in cities (20 percent) a n d in
rural areas (12 percent) where individuals were not asked t o buy extra
war bonds.
Tied in with t h e person-to-person
approach is t h e placing of emphasis
on a local-appeal level. Individuals
respond more readily t o neighborhood
quotas as opposed to national, a n d
prefer locally inspired radio programs,
speeches, a n d e n t e r t a i n m e n t r a t h e r
t h a n " c a n n e d " material which is dist r i b u t e d on a national scale.
ft ft ft ft ft
Professional war
bond salesmen
Experience of the C a n a d i a n governm e n t has proved t h a t although " a m a t e u r " war bond salesmen are conscientious a n d enthusiastic, "professionals" sell a far greater percentage of
bonds. Consequently, 16,000 of these
professionals are currently employed
by t h e Dominion, making door-to-door
canvasses on a commission or profit
biasis:'
' :|>ii"
70
N
11
01 ^1 f i l l
Chief reason is t h a t the paid salesmen, working on a competitive basis,
earn more money selling war bonds
t h a n their regular peace-time merchandise.
The canvass is planned
with scientific precision. New salesmen receive 2 weeks of intensive training before going on t h e road and experienced salesmen are required t o
t a k e a week's refresher course before
every drive.
Canadians are solicited both a t
home a n d office. Stress is laid on the
investment r a t h e r t h a n on patriotic
appeal. T h e objective of t h e current
$1,200,000,000 Fifth Victory Loan
campaign is to sell 44 percent of t h e
t o t a l to approximately 25 percent of
t h e Dominion's 11,500,000 inhabit a n t s . Corporations and a few wealthy
individuals are expected t o buy t h e
balance.
ft ft ft ft ft
O P A reveals benefits
of rent control
Surveys just completed by t h e OPA
in 39 war-housing areas with a t o t a l
population of 17 million indicate t h a t ,
u n d e r rent ceilings, owners of rental
housing are receiving larger operating
margins t h a n in t h e pre-war years of
1939 a n d 1940. Nineteen of these
areas have roll-back rent or freeze
dates in 1941; for t h e other 20, M a r c h
1, 1942 was established as t h e maxim u m rent date.
A 6-month record t a k e n from t h e
books of a p a r t m e n t house operators
showed net operating income to be
34 percent greater t h a n in 1939; t h a t
of landlords of small structures was
36 percent greater over t h e same
period.
T h e contributing factors a r e : rent
increases of 3 to 4 percent from 19391940 levels before rents were frozen,
almost capacity occupancy, a n d declining over-all expenses because of
decreases in competitive decoration
a n d unnecessary services.
I t is estimated t h a t t h e fixing of
rent ceilings has saved more t h a n $1
billion on t h e N a t i o n ' s 1943 rent bill.-'
"Stop-Construction"
Order modified
T h e " S t o p - C o n s t r u c t i o n " Order—
L—41—has been re-issued in simplified
and revised form. T h e revisions include: lowering to $200 t h e over-all
limit on construction for which a higher limit is not authorized by t h e order;
liberalization of provisions for insulating to conserve fuel oil, a n d elimination of assistance to h o m e owners in
converting existing facilities t o t h e
use of coal.
Installation of plumbing e q u i p m e n t
is now p e r m i t t e d if t h e cost is u n d e r
$200. I n determining w h e t h e r a job
is within specified L - 4 1 limits, t h e cost
of used materials or t h e value of labor
furnished free need no longer be
counted.
ft ft ft ft ft
Court decision
safesuards mortgagees
T h e United States Supreme Court
last m o n t h refused t o review t h e decision of t h e New York S t a t e Court of
Appeals in t h e case of foreclosure p r o ceedings being t a k e n b y a N e w York
City building society against a defaulting mortgagor who, since his earlier
defaults, h a d been inducted into t h e
Army.
In ruling on t h e case, t h e Appellate
Division of t h e N e w Y o r k Supreme
Court h a d held: " T h e s t a t u t e is t o be
liberally administered as an instrum e n t to accomplish substantial justice
in order t o p r o t e c t t h e interests of
persons in t h e military service, b u t it
m a y not be employed as a means of
enabling one who has flouted his
obligations in civilian life t o obtain
indefinite delay or to cancel his just
liabilities."
T h e refusal of t h e U. S. Supreme
Court t o review t h e case lets t h e decisions a n d opinions of t h e N e w York
courts stand. I t does not, however,
h a v e t h e force of a decision construing
t h e application of this legislation t o t h e
facts involved, nor does it lay down a
rule of construction for guidance in
other cases.
Federal Home Loan Bank Review
First year estimate
of housing
An analysis of a survey m a d e by t h e
62 field offices of t h e Federal Housing
Administration on privately financed
home construction, modernization, a n d
repair, showed t h e following prospects
for t h e first year after removal of wartime limitations (assuming availability
of materials a n d labor, and a normal
demand):
Between 350,000 a n d 400,000 privately built dwelling units with an
average value of $5,000 will be built
a t a cost of $1,750,000,000 t o $2,000,000,000, in addition to as m u c h as
$3,000,000,000 worth of home repair
a n d modernization work.
Starting
from a low level, t h e home building ind u s t r y will gain m o m e n t u m in t h e first
year a n d a m u c h greater activity m a y
be looked for thereafter.
F r o m a low initial level, construction, modernization, a n d repair m a y
provide work, on a n d off t h e site, for
a n average of 2,400,000 m e n for t h e
first
year, reaching 3,000,000 to
4,000,000 t o w a r d its end.
"Because of uncertainties as to economic conditions immediately after
t h e W a r and the rapidity with which
materials, equipment, and labor will become available," F H A Commissioner
Abner H. Ferguson said, "it is difficult
t o m a k e a firm estimate now of t h e
a c t u a l volume in t h e first post-war
year; however, when national policies
for reconversion are established a n d
time factors are clearer, t h e N H A will
m a k e an exhaustive survey of housing
demand, capacity a n d other factors.
"Various estimates t h a t we shall
build 10 million or more homes in t h e
10 years immediately after t h e W a r / '
Mr. Ferguson said, " h a v e not assumed
t h a t there would be a million homes
built each year." Recovery in building has always been gradual, he
pointed o u t ; it was not until 3 years
after World W a r I t h a t new construction exceeded t h e 400,000 mark, a n d
it was 4 years more before it passed
900,000.
A great majority of areas h a v e
ample lots with utilities installed t o
allow immediate building. N o area
of importance is expected t o h a v e a
scarcity of capable builders ready t o
resume activity in t h e early m o n t h s
after t h e War, even t h o u g h building
organizations now doing business are
less t h a n one-fourth of t h e 20,000 t o
December 1943
22,000 expected to be in operation
during t h e first post-war year.
Ample funds from private lending
institutions will be available. " T h e
F H A organization is in a position to
aid industry from t h e s t a r t — a very
different situation t h a n existed after
t h e last W a r , " t h e F H A Commissioner
said.
ft ft ft ft ft
Thrift Week starts
January 17
National Thrift Week which commences on J a n u a r y 17 will be observed
while the F o u r t h W a r Loan is in progress. This is a particularly appropriate coincidence in view of t h e history
a n d purpose of this event. In 1917
the first observance of Thrift Week was
promoted to emphasize t h e value of
saving as a means of helping" t o win
World War I. Now t h a t t h e c o u n t r y
is " b u y i n g " a bigger war, thrift is more
t h a n ever necessary.
ft ft ft ft ft
N H A tightens
repair credits
T h e 3-year time limit for amortizing
repair loans for war housing, provided
by t h e N H A exception to credit
Regulation W, has been withdrawn
by t h a t agency from all b u t one cate-
gory of such transactions.
Effective
November 15, only loans for rehabilit a t i o n of such p r o p e r t y impaired by
fire, flood, similar act of God, or enemy
action continue to be exempted from
t h e s t a n d a r d 1-year r e p a y m e n t t e r m s
which govern these instalment loans
ft ft ft ft ft
Producers' Council
estimates post-war building
A volume of post-war building, of al
kinds, attaining the average level of
16 billion dollars of new construction
annually for t h e 5 years beginning
approximately 12 months following t h e
end of the War was t h e prediction of
t h e market analysis committee of t h e
P r o d u c e d Council, t h e national organization of building materials and
equipment. The estimate, reflecting
t h e committee's belief t h a t the postwar demand for goods will provide employment for virtually t h e entire
peacetime labor force of the Nation,
is predicated on t h e assumption t h a t
there will be no chaotic price inflation
in the post-war period, b u t allows for
an anticipated increase of 35 percent
in t h e general price level as compared
with 1940. Prices, t h e committee
pointed out, had already risen 23 percent by August of this year.
INCREASE IN COST OF LIVING
WORLD WAR ONE
WORLD WAR TWO
+ 76%
1913
1919
1937
Although the cost of living has advanced during World War II, this graphic comparison with the situation
during the last War shows the measure of success achieved by the Government's price control program.
71
MEMBERS PREPARE FOR FOURTH WAR LOAN
Distinguished Service Citations
From the War Finance Division of the U. S.
Treasury, distinguished service citations are soon to
be sent direct to the more than 300 members of the
Federal Home Loan Bank System who, during the
Third War Loan, exceeded the goal of 16.59 percent
of total assets in the sale and purchase of war
bonds.
As member associations swing into action on the
Fourth War Loan drive to be held next month,
reports on the Third War Loan indicate that the
F H L B System accounted for $657,651,027 in sales
and purchases. (The figure published last month
in the K E V I E W should have been $600,500,000 instead of $6,500,000.)
Honor Roll for October
In order to preserve the incentive purpose of the
Honor Roll, it has been determined to change the
basis for admission. Cumulative figures which
included the Third War Loan, it is felt, would tend
to distort the picture and not recognize the regular
month-by-month effort of the associations. For
that reason, the Honor Roll for October, November,
and December activity will be based on sales to the
public during each month equal to 1 percent of
member assets. Each asterisk indicates sales of 5
percent of assets. On this basis, 307 associations
qualified during October,"of which 48 received stars.
Total sales amounted to almost $24,000,000 which
compares favorably with previous records.
A MESSAGE FROM THE GOVERNOR
The Treasury has announced the Fourth War
Loan drive from January 18 to February 15, 1944.
As the War approaches its climax, I know that the
member institutions of our Federal Home Loan
Bank System will wish to maintain and even to lift
the level of their magnificent past participation in
financing it on the home front. Of the national goal
of fourteen billion dollars, five and one-half billion
is to be raised from individuals.
I t is on this phase
throughout the drive that the heavy emphasis will
be placed. During the period from January 18 to
February 1, only sales made to individuals will be
reported by the Treasury. While subscriptions
from any non-banking investor will be accepted at
any time during the drive, sales to other than individual investors will not be reported until after
February 1.
Our members all share the belief, I am sure, that
this program is almost made to order for us. More
than any other financial institution, our savings and
loan associations are able to reach and serve the
small savers and investors of the Nation. Moreover, through the decentralized character of the
Federal Home Loan Bank System, they command facilities for doing so with the minimum of regimented
interference and the maximum of local freedom
and initiative.
72
We here are eager to do everything that we can
to help, but we thoroughly recognize that this patriotic service is a matter for each institution to handle
in its own way, within the fold of its own Federal
Home Loan Bank. At this end, we shall do our best
to see that the member performance in each Bank District is properly recorded and recognized.
In the monthly Honor Roll of War Bond Sales,
we have already one established yardstick. In conformity with the Treasury program, the Honor Roll
for the month of January will be based solely upon
the sales made to the public. The requirements for
admission to the Honor Roll will be raised for January to sales equivalent to 5 percent of the total assets of each member institution. For the System as
a whole, this will approximate three hundred million
dollars—a high goal, it is true, but one for which the
outstanding record of our institutions in past drives
gives promise of fulfillment.
/N
\(AW^
(A)©'
JAMES TWOHY, Governor
Federal Home Loan
Bank System
Fee/era/ Home Loan Bank Review
NO. 1—BOSTON
Bristol Federal Savings and Loan Association, Bristol, Conn.
Calais Federal Savings and Loan Association, Calais, Me.
First Federal Savings and Loan Association, Greenwich, Conn,
Portsmouth Savings Bank, Portsmouth, N. H.
Windsor Federal Savings and Loan Association, Windsor, Vt.
Windsor Locks Building and Loan Association, Windsor Locks, Conn.
Treasury A w a r d s
To FHLBA
NO. 2—NEW YORK
Amsterdam Federal Savings and Loan Association, Amsterdam, N. Y.
Bankers Federal Savings and Loan Association, New York, N. Y.
Berkeley Savings and Loan Association, Newark, N. J.
Bloomfield Savings Institution, Bloomfield, N. J.
*Bradford Savings and Loan Association, Newark. N. J.
Center Savings and Loan Association, Clifton, N. J.
Cranford Savings and Loan Association, Cranford, N. J.
East Rochester Federal Savings and Loan Association, East Rochester, N. Y.
First Federal Savings and Loan Association, New York, N. Y.
First Federal Savings and Loan Association, Rochester, N . Y.
Glen Rock Savings and Loan Association, Glen Rock, N. J.
Haven Savings and Loan Association, Hoboken, N . J .
Home Federal Savings and Loan Association, Ridgewood. N. Y.
Lakeview Savings and Loan Association, Paterson, N . J.
Long Beach Federal Savings and Loan Association, Long Beach, N . Y.
Maywood Savings and Loan Association, Maywood, N. J.
Mohawk Savings and Loan Association, Newark, N . J .
Reliance Federal Savings and Loan Association, Queens Village, N . Y.
Schuyler Building and Loan Association, Kearny, N. J.
Shepherd Savings and Loan Association, East Orange, N . J .
Union City Savings and Loan Association, Union City, N. J.
White Plains Federal Savings and Loan Association, White Plains, N. Y.
NO. 3—PITTSBURGH
Brentwood Federal Savings and Loan Association, Brentwood, Pa.
Cambria County Federal Savings and Loan Association, Cresson, Pa.
*Capital Building and Loan Association, Philadelphia, Pa.
Cayuga Federal Savings and Loan Association, Philadelphia, Pa.
* Colonial Federal Savings and Loan Association, Philadelphia, Pa.
Conshohocken Federal Savings and Loan Association, Conshohocken Pa.
East Girard Savings and Loan Association, Philadelphia, Pa.
Ellwood City Federal Savings and Loan Association, Ellwood City, Pa.
First Federal Savings and Loan Association, Homestead, Pa.
First Federal Savings and Loan Association, Logan, W. Va.
First Federal Savings and Loan Association, Wilkes-Barre, Pa.
Franklin Federal Savings and Loan Association, Pittsburgh, Pa.
Friendly City Federal Savings and Loan Association, Johnstown, Pa.
Investment Building and Loan Association, Altoona, Pa.
Keystone Federal Savings and Loan Association, Sharpsburg, Pa.
Lansdowne Federal Savings and Loan Association, Lansdowne, Pa.
*Mid-City Federal Savings and Loan Association, Philadelphia, Pa.
Monaca Federal Savings and Loan Association, Monaca, Pa.
*North Philadelphia Federal Savings and Loan Association, Philadelphia, Pa.
Reliance Federal Savings and Loan Association, Philadelphia, Pa.
Roxborough-Manayunk Federal Savings and Loan Association, Philadelphia,
Pa.
**St. Edmond's Building and Loan Association, Philadelphia, Pa.
Troy Hill Federal Savings and Loan Association, Pittsburgh, Pa.
*United Federal Savings and Loan Association, Morgantown, W. Va.
Westmoreland Federal Savings and Loan Association, Philadelphia, Pa.
West Philadelphia Federal Savings and Loan Association, Philadelphia, Pa.
NO. 4—WINSTON-SALEM
* Aberdeen Building and Loan Association, Aberdeen, N. C.
Atlantic Federal Savings and Loan Association, Baltimore, Md.
Baxley Federal Savings and Loan Association, Baxley, Ga.
Bohemian American Building Association, Baltimore, Md.
Brevard Federal Savings and Loan Association, Brevard, N. C.
Citizens Federal Savings and Loan Association, Rutherfordton, N. C.
Daytona Beach Federal Savings and Loan Association, Daytona Beach, Fla.
* First Federal Savings and Loan Association, Andalusia, Ala.
First Federal Savings and Loan Association, Anderson, S. C.
First Federal Savings and Loan Association, Arlington, Va.
First Federal Savings and Loan Association, Augusta, Ga.
First Federal Savings and Loan Association, Bainbridge, Ga.
First Federal Savings and Loan Association, Bessemer, Ala.
**First Federal Savings and Loan Association, Cordele, Ga.
First Federal Savings and Loan Association, Darlington, S. C.
#
First Federal Savings and Loan Association, Decatur, Ala.
First Federal Savings and Loan Association, Eustis, Fla.
First Federal Savings and Loan Association, Forest City, N. C.
First Federal Savings and Loan Association, Gastonia, N. C.
First Federal Savings and Loan Association, Jasper, Ala.
First Federal Savings and Loan Association, Lake Wales, Fla.
First Federal Savings and Loan Association, Montgomery, Ala.
First Federal Savings and Loan Association, Phenix City, Ala.
*First Federal Savings and Loan Association, South Boston, Va.
First Federal Savings and Loan Association, Statesboro, Ga.
First Federal Savings and Loan Association, Sumter, S. C.
* First Federal Savings and Loan Association, Way cross, Ga.
First Federal Savings and Loan Association, Winder, Ga.
*Fort Hill Federal Savings and Loan Association, Clemson, S. C.
Gate City Building and Loan Association, Greensboro, N. C.
Gwinnett County Building and Loan Association, Buford, Ga.
Hamlet Building and Loan Association, Hamlet, N. C.
**Home Building and Loan Association, Easley, S. C.
Home Building and Loan Association, LaGrange, Ga.
****Home Mutual Building and Loan Association, Washington, D. C.
Jefferson Federal Savings and Loan Association, Birmingham, Ala.
Lake City Federal Savings and Loan Association, Lake City, Fla.
December 1943
Photo by Harris & Ewing.
On November 22 t h e Federal H o m e Loan Bank Administration was awarded t h e coveted " Minute M a n F l a g " a n d now
takes its place on t h e Treasury Honor Roll. This means t h a t
90 percent, or more, of t h e 4,600 employees of t h e Administration are purchasing W a r Bonds under t h e Payroll Allotment
Plan (10 percent of gross payroll).
Only 14 Government
agencies have m e t t h e Treasury's standards for eligibility.
T h e flag was presented by E. F . Bartelt, Chairman of t h e
I n t e r d e p a r t m e n t a l War Savings Bond Committee in a colorful
ceremony before Bank Administration officials a n d employees
a t Washington. Reading left to right: Major General H . K.
Loughry, Chief of Finance, W a r D e p a r t m e n t ; Mr. Bartelt;
Commissioner J o h n H . F a h e y ; Governor James T w o h y ;
National Housing Administrator J o h n B. Blandford, Jr.; Lt.
Col. Dean Almy, War Bond Officer, War D e p a r t m e n t ; a n d
Mr. J. Francis Moore, Secretary, F H L B A .
Leeds Federal Savings and Loan Association, Arbutus, Md.
Lexington County Building and Loan Association, West Columbia, S. C.
Lithuanian Federal Savings and Loan Association, Baltimore, Md.
Marianna Federal Savings and Loan Association, Marianna, Fla.
Mutual Building and Loan Association, Martinsville, Va.
Orangeburg Building and Loan Association, Orangeburg, S. C.
Peoples Building and Loan Association, Whiteville, N. C.
Peoples Mutual Building and Loan Association, Mount Gilead, N. C.
Perpetual Building and Loan Association, Anderson, S. C.
Petersburg Mutual Building and Loan Association, Petersburg, Va.
Randolph County Federal Savings and Loan Association, Cuthbert, Ga.
Richmond County Building and Loan Association, Rockingham, N. C.
Stephens Federal Savings and Loan Association, Toccoa, Ga.
*Tifton Federal Savings and Loan Association, Tifton, Ga.
Tuskegee Savings and Loan Association, Tuskegee Institute, Ala.
Weldon Building and Loan Association, Weldon, N. C.
Woodruff Federal Savings and Loan Association, Woodruff, S. C.
Workmen's Federal Savings and Loan Association, Mount Airy, N. C.
NO. 5—CINCINNATI
Bedford Savings and Loan Company, Bedford, Ohio
Dollar Federal Savings and Loan Association, Columbus, Ohio
Dyer County Federal Savings and Loan Association. Dyersburg, Team
East Cleveland Savings and Loan Company, East Cleveland, Ohio
Fidelity Building Association, Dayton, Ohio
•First Federal Savings and Loan Association, Bowling Green, Ky.
First Federal Savings and Loan Association, Covington, Ky.
First Federal Savings and Loan Association, Dickson, Term.
**First Federal Savings and Loan Association, Hopkinsville, Ky.
First Federal Savings and Loan Association, Lorain, Ohio
Fulton Building and Loan Association, Fulton, Ky.
Hawthorne Federal Savings and Loan Association, Cincinnati, Ohio
Hickman Federal Savings and Loan Association, Hickman, Ky.
Home Federal Savings and Loan Association, Cincinnati, Ohio
McKinley Federal Savings and Loan Association, Niles, Ohio
Provident Building and Loan Association, Cleveland, Ohio
San Marco Building and Loan Association, Cincinnati, Ohio
South Euclid Savings and Loan Company, South Euclid, Ohio
Suburban Federal Savings and Loan Association, Covington, Ky.
Tatra Savings and Loan Company, Cleveland, Ohio
Ukranian Savings Company, Cleveland, Ohio
Union Building and Loan Company, St. Marys, Ohio
73
NO. 6—INDIANAPOLIS
Adrian Federal Savings and Loan Association, Adrian, Mich.
Citizens Building and Loan Association, Columbus, Ind.
Dearborn Federal Savings and Loan Association, Dearborn, Mich.
Detroit Federal Savings and Loan Association, Detroit, Mich.
Greencastle Savings and Loan Association, Greencastle, Ind.
*Griffith Federal Savings and Loan Association, Griffith, Ind.
Homestead Loan and Building Association, Albion, Mich.
Industrial Savings and Loan Association of Indiana Harbor, East Chicago, Ind.
Marsnall County Building and Loan Association, Plymouth, Ind.
Merchants Loan and Savings Association, Terre Haute, Ind.
Midland Federal Savings and Loan Association, Midland, Mich.
*Monon Building and Loan Association. Monon, Ind.
Peoples Building Association, Monticello, Ind,
Peoples Federal Savings and Loan Association, Detroit, Mich.
Peoples Federal Savings and Loan Association, Monroe, Mich.
Peoples Federal Savings and Loan Association, Royal Oak, Mich.
NO. 7—CHICAGO
Alliance Savings and Loan Association, Chicago, 111.
Atlas Savings and Loan Association, Milwaukee, Wis.
Avondale Building and Loan Association, Chicago, 111.
Belmont-Central Savings and Loan Association, Chicago, 111.
Cook County Federal Savings and Loan Association, Chicago, 111.
Copernicus Building and Loan Association, Chicago, 111.
Damen Savings and Loan Association, Chicago, 111.
Du Quoin Homestead and Loan Association, Du Quoin, 111.
East Side Federal Savings and Loan Association, Milwaukee, Wis.
Fairfield Savings and Loan Association, Chicago, 111.
First Calumet City Savings and Loan Association, Calumet City, 111.
First Federal Savings and Loan Association, Barrington, 111.
*First Federal Savings and Loan Association, Chicago, 111.
First Savings and Loan Association of Hegewisch, Chicago, 111.
Gage Park Savings and Loan Association, Chicago, 111.
General Sowinski Building and Loan Association, Cicero, 111.
Grand Crossing Savings and Building Loan Association, Chicago, 111.
***Guaranty Building and Loan Association, Milwaukee, Wis.
*HalIer Savings and Loan Association, Chicago, 111.
Harvey Federal Savings and Loan Association, Harvey, 111.
Investors Savings and Loan Association, Chicago, 111.
Keistuto Savings and Loan Association, Chicago, 111.
Kinnickinnic Federal Savings and Loan Association, Milwaukee, Wis.
Laramie Federal Savings and Loan Association, Chicago, 111.
Lawndale Savings and Loan Association, Chicago, 111.
Lombard Building and Loan Association of DuPage County, Lombard, 111.
**Merchants & Mechanics Building and Loan Association, Springfield, 111.
Mitchell Street Loan and Building Association, Milwaukee, Wis.
Mt. Vernon Loan and Building Association, Mt. Vernon, 111.
Naprstek Savings and Loan Association, Chicago, 111.
Narodni Savings and Loan Association, Chicago, 111.
National Savings and Loan Association, Chicago, 111.
New City Savings and Loan Association, Chicago, 111.
New London Savings and Loan Association, New London, Wis.
North Shore Building and Loan Association, North Chicago, 111.
Northwestern Bohemian Building and Loan Association, Chicago, 111.
Ogden Federal Savings and Loan Association., Berwyn, 111.
Peerless Federal Savings and Loan-Association, Chicago, 111.
Peoples Federal Savings and Loan Association, Peoria, 111.
Peoples Savings and Loan Association, Milwaukee, Wis.
Prairie State Savings and Loan Association, Chicago, 111.
Pulaski Savings and Loan Association, Chicago, 111.
Reliance Building and Loan Association, Milwaukee, Wis.
St. Paul Federal Savings and Loan Association, Chicago, 111.
Tocin Savings and Loan Association, Berwyn, 111.
United Savings and Loan Association, Chicago, 111.
Universal Savings and Loan Association, Chicago, 111.
Uptown Federal Savings and Loan Association, Chicago, 111.
West Highland Savings and Loan Association, Chicago, 111.
Workmen Building and Loan Association, Chicago, 111.
NO. 8—DES MOINES
Albert Lea Building and Loan Association, Albert Lea, Minn.
Cass Federal Savings and Loan Association, St. Louis, Mo.
**East Grand Forks Federal Savings and Loan Association, East Grand Forks,
Minn.
Fidelity Building and Loan Association, Winona, Minn.
First Federal Savings and Loan Association, Thief River Falls, Minn.
*Home Building and Loan Association, Fort Dodge, Iowa
Home Building and Loan Association, Joplin, Mo.
*Home Building and Loan Association, Marion, Iowa
Independence Savings and Loan Association, Independence, Mo.
Minot Federal Savings and Loan Association, Minot, N. Dak.
Nevada Federal Savings and Loan AssociatiDn, Nevada, Iowa
Public Service Company's Savings and Loan Association, Kansas City, Mo.
Sentinel Federal Savings and Loan Association, Kansas City, Mo.
St. Joseph Savings and Loan Association, St. Joseph, Mo.
Standard Federal Savings and Loan Association, Kansas City, Mo.
NO. 9—LITTLE ROCK
Alamogordo Federal Savings and Loan Association, Alamogordo, N. Mex.
**American Homestead Association, New Orleans, La.
Amory Federal Savings and Loan Association, Amory, Miss.
*Argenta Building and Loan Association, North Little Rock, Ark.
Arkadelphia Federal Savings and Loan Association, Arkadelphia, Ark.
**Atlanta Federal Savings and Loan Association, Atlanta, Tex.
Batesville Federal Savings and Loan Association, Batesville, Ark.
Brownwood Federal Savings and Loan Association, Brownwood, Texj
Citizens Federal Savings and Loan Association, Jonesboro, Ark.
•"Continental Building and Loan Association, New Orleans, La.
74
Purchases and holdings of U. S. Government
obligations by reporting member institutions
[Dollar a m o u n t s are shown in thousands]
1943
January
February.. _
M a r c h . ____ .._
April _
May
June
July_
August
_ .
September
October _
_ _
Number
reporting
2,775
2,721
2,732
2, 744
2, 642
2,447
2,391
2,452
3,035
2,469
Purchases
during
month
$39,
22,
29,
177,
17,
13,
31,
21,
327,
18,
835
020
293
536
719
426
858
534
950
881
Holdings a t
end of
month
$364,
375,
390,
537,
547,
528,
553,
537,
973,
772,
455
883
018
849
460
002
533
254
026
369
Davy Crockett Federal Savings and Loan Association, Crockett, Tex.
Denison Federal Savings and Loan Association, Denison, Tex.
**Dryades Building and Loan Association, New Orleans, La.
*Electra Federal Savings and Loan Association, Electra, Tex.
El Paso Federal Savings and Loan Association, El Paso, Tex.
*First Federal Savings and Loan Association, Beaumont, Tex.
**First Federal Savings and Loan Association, Belzoni, Miss.
First Federal Savings and Loan Association, Corpus Christi, Tex.
First Federal Savings and Loan Association, Little Rock, Ark.
First Federal Savings and Loan Association, Lubbock, Tex.
•First Federal Savings and Loan Association, Luling, Tex.
First Federal Savings and Loan Association, Paris, Tex.
First Federal Savings and Loan Association, Texarkana, Tex.
**First Homestead and Savings Association, New Orleans, La.
Gladewater Federal Savings and Loan Association, Glade water, Tex.
Greater New Orleans Homestead Association, New Orleans, La.
**Guaranty Savings and Homestead Association, New Orleans, La.
Harrison Federal Savings and Loan Association, Harrison, Ark.
Henderson Federal Savings and Loan Association, Henderson, Tex.
Inter-City Federal Savings and Loan Association, Louisville, Miss.
investors Homestead Association, New Orleans, La.
Jennings Federal Savings and Loan Association, Jennings, La.
Laurel Federal Savings and Loan Association, Laurel, Miss.
Mineral Wells Building and Loan Association, Mineral Wells, Tex.
**Nashville Federal Savings and Loan Association, Nashville, Ark.
Olney Federal Savings and Loan Association, Olney, Tex.
Orange Federal Savings and Loan Association, Orange, Tex.
Peoples Federal Savings and Loan Association, Bay St. Louis, Miss.
****Pocahontas Federal Savings and Loan Association, Pocahontas, Ark.
Ponchatoula Homestead Association, Ponchatoula, La.
**Pulaski Federal Savings and Loan Association, Little Rock, Ark.
*Quanah Federal Savings and Loan Association, Quanah, Tex.
Riceland Federal Savings and Loan Association, Stuttgart, Ark.
*Roswell Building and Loan Association, Roswell, N. Mex.
Searcy Federal Savings and Loan Association, Searcy, Ark.
**Security Building and Loan Association, New Orleans, La.
*****Slidell Savings and Homestead Association, Slidell, La.
St. Tammany Homestead Association, Covington, La.
Sulphur Springs Loan and Building Association, Sulphur Springs, Tex.
Taylor Building and Loan Association, Taylor, Tex.
**Teche Federal Savings and Loan Association, Franklin, La.
Union Federal Savings and Loan Association, Baton Rouge, La.
Waxahachie Federal Savings and Loan Association, Waxahachie, Tex.
NO. 10—TOPEKA
Brighton Federal Savings and Loan Association, Brighton, Colo.
Century Building and Loan Association, Trinidad, Colo.
Citizens Federal Savings and Loan Association, Sand Springs, Okla.
Citizens Federal Savings and Loan Association, Wichita, Kans.
Concordia Building and Loan Association, Concordia, Kans.
Erie Building and Loan Association, Erie, Kans.
First Federal Savings and Loan Association of Sumner County, Wellington,
Kans.
Garnett Savings and Loan Association, Garnett, Kans.
*Kansas Building and Loan Association, Kansas City, Kans.
Osage Federal Savings and Loan Association, Pawhuska, Okla.
Peoples Federal Savings and Loan Association, Tulsa, Okla.
Salida Building and Loan Association, Salida, Colo.
Schuyler Federal Savings and Loan Association, Schuyler, Nebr.
N O . 11—PORTLAND
Auburn Federal Savings and Loan Association, Auburn, Wash.
Commercial Savings and Loan Association, Kelso.. Wash.
First Federal Savings and Loan Association, Sheridan, Wyo.
First Federal Savings and Loan Association, The Dalles, Oreg.
Guaranty Federal Savings and Loan Association, Pocatello, Idaho
Polk County Federal Savings and Loan Association, Dallas, Oreg.
Raymond Federal Savings and Loan Association, Raymond, Wash.
Rawlins Federal Savings and Loan Association, Rawlins, Wyo.
Wenatchee Federal Savings and Loan Association, Wenatchee, Wash.
Federal Home Loan Bank Review
NO. 12—LOS ANGELES
California Savings and Loan Company, San Francisco, Calif.
Central Federal Savings and Loan Association, San Diego, Calif.
Century Federal Savings and Loan Association, Santa Monica, Calif.
Chino Building and Loan Association, Chino, Calif.
Citrus Belt Building and Loan Association, Riverside, Calif.
First Federal Savings and Loan Association, Alhambra, Calif.
First Federal Savings and Loan Association, Altadena, Calif.
First Federal Savings and Loan Association of Hawaii, Honolulu, T. H.
First Federal Savings and Loan Association, Huntington Park, Calif.
First Federal Savings and Loan Association, San Jose, Calif.
First Federal Savings and Loan Association, Santa Ana, Calif.
First Federal Savings and Loan Association, Santa Monica, Calif.
Glendale Federal Savings and Loan Association, Glendale, Calif.
Guarantee Building-Loan Association, San Luis Obispo, Calif.
Independent Building-Loan Association, San Jose, Calif.
Inglewood Federal Savings and Loan Association, Inglewood, Calif.
Liberty Building-Loan Association, Los Angles, Calif.
Los Angeles Federal Savings and Loan Association, Los Angeles, Calif.
Santa Maria Guarantee Building-Loan Association, Santa Maria, Calif.
Standard Federal Savings and Loan Association, Los Angeles, Calif.
Prefabricated
dtfttk% DIRECTORY
i* CHANGES
SY^
OCTOBER
1 6 — N O V E M B E R 15,
1943
Key to Changes
* Admission to Membership in Bank System.
** Termination of Membership in Bank System.
# Federal Charter Granted.
## Cancellation oj Federal Charter.
0 Insurance Certificate Issued.
00 Insurance Certificate Canceled.
Age
(Continued from p. 60)
The prefabricated age would seem to favor the
large-scale planning and financing of new communities, while at the same time the seeker after an
individual home will be freed from old restraints.
(A factory-prefabricated house, for example, may be
trucked to almost any location.) Savings and loan
associations of the future, while they will certainly
be more concerned than in the past with community
planning and development, will always be particularly well adapted to helping the man who wants
an individual home.
They will also, of course, be mindful of their
investments and obligations in existing mortgages
and their stake in established communities. Only
if the suburban growth tomorrow is counter-balanced
by increased attention to the problem of urban
blight shall we be able to make progress on a total
front. Essentially, the danger in the coming age
lies in losing, as a Nation, our sense of balance.
Prefabricated methods and modern design will need,
in each detail, to be weighed against the traditional;
large-scale building against individual homes; commutation by helicopter against walking to work;
profits from new developments against declining
urban tax yields and the danger of more city slums.
Savings and loan associations, by their nature,
are in a position to help the public keep its sense of
balance in these matters.
The wider view which will be necessary was
symbolized recently by the action of savings and
loan officials who surveyed the area of a proposed
development from the vantage-point of a blimp.
In the future, a bird's-eye view will be necessary for
all thrift and home-financing institutions, even if
their lending concentrates on individual homes or
small developments.
December 1943
DISTRICT No. 1
MAINE:
Water ville:
**Waterville Loan and Building Association.
DISTRICT N O . 2
N E W JERSEY:
Asbury Park:
**Reserve Building and Loan Association, 601 Mattison Avenue.
Irvington:
*Pulaski Savings and Loan Association, 564 Grove Street.
Rah way:
0Reliance Savings and Loan Association, 1498 Irving Street.
Toms River:
* Jersey Shore Savings and Loan Association, 36 Washington Street.
Wood-Ridge: (Carlstadt)
0South Bergen Savings and Loan Association, 423 Hackensack Street.
DISTRICT No.
3
PENNSYLVANIA:
Ardmore:
** ##Civic Federal Savings and Loan Association of Ardmore (merger
with First Wayne Federal Savings and Loan Association,
Wayne).
Philadelphia:
* ^Chestnut Hill Savings and Loan Association, 8338 Germantown Avenue.
*The West Somerset Building and Loan Association, 1006 West
Lehigh Avenue.
Pittsburgh:
** ##Allegheny City Federal Savings and Loan Association, 1219 Spring
Garden Avenue (merger with Troy Hill Federal Savings and Loan
Association, 162 Lowrie Street, Pittsburgh).
^Economy Federal Savings and Loan Association of Pittsburgh,
1433 Woods Run Avenue.
** ##First Federal Savings and Loan Association of Penn Township,
Frankstown Avenue, Wilkinsburg (merger with Wilkinsburg
Federal Savings and Loan Association, Penn Lincoln Hotel,
Wilkinsburg).
** ##North Side Federal Savings and Loan Association of Pittsburgh,
1433 Woods Run Avenue (merger with Economy Federal Savings
and Loan Association of Pittsburgh, 1433 Woods Run Avenue,
Pittsburgh).
DISTRICT No.
NORTH
4
CAROLINA:
Hickory:
# 0Fidelity Federal Savings and Loan Association, 1310 Union Square
DISTRICT N O . 7
WISCONSIN:
Eau Claire:
^Eau Claire-Menomonie Federal Savings and Loan Association, 131
South Barstow Street.
Menomonie:
** ## 00Menomonie Federal Savings and Loan Association, 133 Main
Street (merger with Eau Claire-Menomonie Federal Savings and
Loan Association, 131 South Barstow Street, Eau Claire).
Milwaukee:
#Central Federal Savings and Loan Association, 912 West Walnut Street.
DISTRICT NO. 8
Missouri:
Kansas City:
**United Savings and Loan Association, Land Bank Building, 15 West
Tenth Street.
DISTRICT N O . 11
WASHINGTON:
Port Townsend:
## <£<£Port Townsend Federal Savings and Loan Association, Taylor
Street.
75
RESIDENTIAL BUILDING ACTIVITY AND SELECTED INFLUENCING FACTORS
1935-1939= 100
BY YEARS
BY MONTHS
INDEX
260
1
1
240
220
)
1
180
(FEDERAL rIOME LOAN BANK ADMIN.)
(U. S. DEFT OF LABOR RECORDS)
\
140
i 7
y
.Al
>t
>\ /
120
7 r ^ j K u a
f
cr LJVMIV
UCIVU.^
\(FEDERAL HOME LOAN BANK ADMIN.)
\
\\
80
.^.
f»
c—*~
100
^y
r
^_
v
\% \J \
\
\
220
v
1
A.
//
180
i\
160
LENDING
i
/
/
/*
240
SVGS. a LOAN
l\
/
260
1
CONSTRUCTION
A..'**
t
f
/
1
1 a 2 FAMILY DWELLING UNITS
A w
,•'
\
1
200
J\
PRIVATE CONSTRUCTION-
160
1
h ^PRIVATE
I Y*y
200
INDEX
ADJUSTED FOR SEASONAL VARIATION
140
/
120
100
4
80
•
\V
S
60
A
' > > . _ . . .— *
60
1
40
1"
.
NONFARM
1 J>^
FORECLOSURES'
i
jtNONFARM
FORECLOSURES^
40
(FEDERAL HOME LOAN BANK ADMIN.)
20
20
1
0
140
^J
RENTS
120
100
LI
>
^«T'4-Wl
••~ ^ • " >
80
60
260
LA
\r~
BUILDING
/OUIL
T**
^""*ii
-.!.,«•
*i.
1 1
1 .. 1 .1.
1
i 1
_L_L _L I _. 1 1 1 1 1 1
l 1
120
ii*^*^
100
RENTS'
80
^BUILDING
MM i cm ML
rrxiuco
(U. S. DEPARTMENT OF LABOR)
1
I
I
I
-ArV
JJL
^
AH
ADJUSTED FOR SEASONAL VARIATION
I
I
I
]
y
200
V -
INDUSTRIAL
y
220
V'
200
*'*
180
PRODUCTION^*
I (FEDERAL RESERVE BOARD) | \ /
t
-A
160
60
260
240
+"
!
INDUSTRIAL PRODUCTION^
220
180
0
140
MATERIAL PRICES
+•''
_.*'_
240
..—"
160
,*y
140
120
i i1
i i
V//VC OME PAYMENTS
140
120
-INCOME PAYMENTS
100
100
\y
80
80
60
1930 '31
'32 '33
'34 '35" '36 '37
.NOEX COST OF STANDARD SIX-ROOM HOUSE
'39
INDEX
WHOLESALE COMMODITY PRICES
160 r
—^y
LABORy
y
V
y
1935-19 39= 100
LUMBER^
140
130
A
y ft
150
'42
II
1941
1 |
'38
1935-19 19=100
'40 '41
L A J_
r
120
r
1 1 IAL
V
1943
60
'MILLIONS F H . L B . ADVANCES OUTSTANDING
*
, L
V.
..•-
/
+
1942
!1
$250r
BUILDING MATERIAL).
^MATERIAL
1 1 1 1 1 1 1 1 1 1 1I
^
f»
41
*'
)42-
•-
.-•'
+y
,19 43
-1
V 4 L L INDUS rf?/AL
110
LrrirrtSL-L
76
• M I M I M I I I
M I M I M I M
•uhilnln
100 rSftfifJrfT l . l n l , ,
Nj.llub.
,.!., I,,l,,l
JAN. FEB. MAR. APR. MAY
JUN. JUL AUG. SEP. OCT. NOV. DEC.
Fee/era/ Home Loan Bank Review
MONTHLY
SURVEY
HIGHLIGHTS
/. Income payments for 1943 are expected to equal $142 billion compared with $114 billion in 1942.
Despite increased taxes and the
unprecedented individual savings, during the third quarter of 1943 the public spent at the rate of $91 billion a year.
II. The average shareholder in insured savings and loan associations had $956 in his account as of the close of October, compared with
$870 a year ago. Private investments on October 31 totaled $3,436,000,000,
a 20-percent increase for the year.
III. During the first 10 months of 1943 savings and loan associations loaned more than $983,000,000
on mortgage security, 8.5 percent
above the total for the like period of 1942.
A. Loans for the financing of home purchase accounted for 68 percent of the total, and were 36 percent above those made in the
same interval last year.
B. Refinancing of home loans so far this year showed a 1-percent increase, other categories registering declines.
IV. Mortgage recordings in October reached the year's high point of $386,000,000,
8 percent above October 1942 but 14 percent
under October 1941.
A. Building and loan associations, the only type of lender showing a steady volume gain since January, in October decreased 3
percent from September.
B. Life insurance companies reversed their recent trend, showing a 5-percent gain in October over September.
C. Individuals have now risen to second place among all major home-mortgage lenders.
V. The average cost of constructing the standard 6-room frame house rose more than 1 percent in October.
It now stands 29 percent
above the 1935-1939
base period.
VI. Both public and private construction gained in October from September.
ft ft ft ft
BUSINESS CONDITIONS-lndusfrial
production shows rise in October
A pre-Christmas spurt of buying carried the U. S.
Department of Commerce index of department store
sales (1935-1939=100) to 190 in mid-November—
an increase from 174 at the end of October and 167
in November last year. According to that Department, in terms of "constant dollars" which eliminate
the factor of rising prices, the aggregate sales during
the year 1943 amounted to $48 billion as compared
with $47 billion in 1942 and $51 billion in the last
pre-war year when the quantity of civilian goods
was much larger.
The Department of Commerce estimates that income payments for 1943 will probably equal $142
billion compared with $114 billion in 1942 and that,
in spite of increased taxes and the unprecedented
rate of individual savings, the American public during the third quarter of 1943 spent surplus income at
the rate of $91 billion a year. Kevised figures of the
War Production Board showed Government expenditures of $7,105 million for all war purposes, a decrease
of 1.5 percent from September outlays.
The volume of industrial production increased
somewhat in October and early November. As
measured by the Federal Reserve Board's seasonally
adjusted index (1935-1939=100) it rose in October
to 245 compared with 244 in September. This
December 1943
shows substantial progress from the first of the year
when the index stood at 227.
Reports of "cutbacks" in certain lines of war production were generally construed as reflecting a
changing strategic pattern rather than an approaching end to hostilities. A large gain in war production as a whole was reported for October, with the
index of the War Production Board advancing 29
points to 648 percent of the level for November 1941.
The combined index of commodity prices showed
a fractional decline to 127.8 in October compared to
127.9 in September, according to the U. S. Department of Labor index (converted to 1935-1939=100).
At the same time, the cost of living, as reported by
that Department, rose 0.4 percent to 124.4 in midOctober from 123.9 in September. This is the second
month in which an upturn has been reported, following a 1.4-percent decline in the 3 previous months.
1935-1939 = 100
Oct.
1943
Sept.
1943
Percent
change
62.7
13.7
108.0
125.8
158.9
P 245.0
P 170. 2
P 218.6
59.0
15.6
108.0
125.6
173.0
r
244. 0
r 169. 7
r 215.6
+6.3
-12.2
0.0
+0.2
-8.2
+0.4
+0.3
+1.4
Oct.
1942
68.6
24.4
108.0
123.3
126.5
215.0
160.4
183.0
Percent
change
-8.6
-43.9
0.0
+2.0
+25.6
+14.0
+6.1
+19.5
p Preliminary.
Revised.
i Adjusted for normal seasonal variation.
r
77
BUILDING ACTIVITY—Public and
private construction increase
Both public and private construction in urban
areas gained in October. The total was 31 percent
above September with greater gain in public construction. October permits for publicly financed
structures totaled 6,330 dwelling units, an increase
of 116 percent from last month, although only about
three-fifths of the number for October 1942.
NEW RESIDENTIAL CONSTRUCTION IN ALL URBAN AREAS
PERMITS ISSUED FOR PUBLICLY AND PRIVATELY FINANCED DWELLING UNITS
PRIVATE I and 2 FAMILY
1935-1939 base period. Labor charges and material
prices advanced at similar rates during the month.
In comparison with October of last year, material
and labor costs have gained nearly 4 percent.
For individual cities, costs involved in the construction of the standard house were generally higher in
the August-November period. Of the 17 cities reporting, 14 registered increases while 3 cities indicated no change in building costs.
Wholesale building material prices, as reported
by the U. S. Department of Labor, advanced very
slightly during October, with lumber, paint, and
miscellaneous items contributing to the rise. Wholesale material prices have increased 26 percent from
the average month of the 1935-1939 period—a gain
almost identical to that shown by the cost (to contractors) of materials used in the standard house.
[TABLES 3, 4, and
5.]
Construction costs for the standard house
[Average month of 1935-1939=100]
PRIVATE MULTI-FAM.^/I i f I I I i T I i I I i " T " T ' T ' « f T i
JUN.
Element of cost
1942
Privately financed construction showed a gain of
9 percent in October from September, and was 6
percent above October 1942. During the past 18
months the number of dwelling units provided by
private construction has not varied as much as
usual, ranging close to 11,000 dwelling units per
month, with the exception of 3 months last winter—
December, January and February—when it dropped
to about 6,000 per month.
Permits have been issued during the past 10 months
for nearly 177,000 dwelling units, 42 percent of which
have been built with public funds. In the same
1942 period, permits were issued for nearly 250,000
units, one-third of which were publicly financed.
The trend toward fewer single-family dwellings,
and more of the material-saving multifamily units,
continues. Of private dwelling units provided during the past 10 months, 64 percent were single family,
compared to 76 percent and 80 percent for like
periods in 1942 and 1941, respectively. [TABLES
1 and 2.J
B U I L D I N G C O S T S — T o t a l construction
costs rise
The average cost of construction of the standard
6-room frame house rose more than 1 percent during October and now stands 29 percent above the
78
Material
Labor
Total
Sept.
1943
Oct.
1943
Percent
change
Oct.
1942
Percent
change
126. 0
135. 0
124. 4
133. 8
+ 1.3
+ 0. 9
121. 6
130. 2
+ 3. 6
+ 3. 7
129. 1
127. 6
+ 1.2
124. 5
+ 3.7
MORTGAGE LENDING—October
a c t i v i t y shows increase
During the first 10 months of 1943 over $983,000,000 was loaned by savings and loan associations
on mortgage security, an 8% percent gain over the
$906,000,000 loaned during the same period of 1942.
Home purchase loans, $665,000,000, accounted for
nearly 68 percent of total lending during the January-
New mortgage loans distributed by purpose
[Dollar amounts are shown in thousands]
Purpose
Construction
H o m e purchase
Refinancing
Reconditioning
Other purposes
Total
Oct.
1943
Sept.
1943
Percent
change
Oct.
1942
$7, 452 $13,211 - 4 3 . 6 $10, 572
83, 259 86, 016 - 3 . 2 56, 528
14, 025 13, 799 + 1.6 14, 694
3,498
2,874
3,229 - 1 1 . 0
6,718 + 1 2 . 2 6,380
7,540
115, 150 122, 973 - 6 . 4
Percent
change
-29. 5
+ 47.3
-4. 6
-17. 8
+ 18.2
91, 672 + 2 5 . 6
Federal Home Loan Bank Review
TOTAL
LOANS MADE BY ALL SAVINGS AND LOAN ASSOCIATIONS
UNITED STATES-BY TYPE OF ASSOCIATION
MILLIONS
OF DOLLARS
BY
MONTHS
— TOTAL
ALL
.STATE
MEMBERS
r.^.i
4
A
•**J
S*
ASSOCIATIONS
V'...
\, \
S f c ^ i—4.—>-fN\..J
FEDERALS-*'
^
/
V.£':.,/
^^^i
1
AJONMEMBERS^
1 1 1 1 i i —1 L. i 1
1 i 1
1 l
1
1
1 1
1
1
1
1
CUMULATIVE AS OF OCT 31, EACH YEAR
•ntKt
1
October period. These loans for the financing of
home property sales were 36 percent above those
made daring the same interval of 1942. Refinancing
of home loans so far this year showed a 1-percent
increase while all other categories have registered
declines ranging from 49 percent for construction
to 8 percent for "other purpose" loans.
October total new mortgage lending activity
reached $115,000,000. Although there was a 6-percent decrease from September, greater than seasonal,
still the gain was 26 percent above the corresponding
month a year ago. Each type of association experienced a decline for the month—7 percent for
State members and Federals and only 3 percent for
nonmembers. All Bank Districts showred decreases
in lending activity, except Pittsburgh and Indianapolis, each of which reported an increase of 9
percent.
[TABLES 6 and 7.]
MORTGAGE RECORDINGS
point for 1943
Reach hi3h
Following the seasonal tendency for nonfarm
financing, October mortgage recordings of $20,000
or less moved 1 percent upward to a total of $386,000,000, the highest monthly figure recorded this
Deczmber 1943
year. The October volume is 8 percent above the
same month of 1942 but 14 percent under the
October 1941 level.
Examination of October activity of the different
types of lenders discloses interesting shifts from
earlier months. Building and loan associations, the
only type of lender reporting a steady increase in
volume since last January, in October decreased 3
percent from September, while insurance companies,
showing declines in activity since June, indicated a
5-percent gain during October. Recordings of
individual lenders rose 5 percent; commercial banks,
4 percent; and miscellaneous mortgages, 3 percent.
Mutual savings banks declined 2 percent during
this same period.
Cumulative recordings reflect the consistent monthto-month gains in total financing since last February.
The total of $3,176,700,000 for the January-October
period was 7 percent below the corresponding period
of 1942 compared to a decrease of 14 percent between
the same 10 months of 1942 and 1941. Individual
lenders and savings and loan associations showed
increases of 12 percent and 1 percent, respectively,
in the 1942-1943 comparison. All other classes
declined, although the differentials for these classes
have been decreasing since February. Insurance
companies suffered the heaviest reduction in cumulative recordings—25 percent.
m
Mortgage recordings by type or mortgagee
[Dollar amounts are shown in thousands]
T y p e of lender
Savings a n d loan associations^- _ —
Insurance companies
Banks, t r u s t companies _
M u t u a l savings banks
Individuals
Others
Total
PerPerPercent
Cumulachange cent tive record- cent
from of Oct. ings (10 of total
record1943
months)
Sept.
ings
1943 a m o u n t
-3.0
+ 4. 8
+ 3.8
-2.0
+ 4. 9
+ 2. 6
+ 1.4
31. 8 $1,
6. 5
19. 4
3.9
22. 6
15. 8
024,
234,
620,
125,
698,
473,
511
563
652
001
942
070
32.3
7.4
19. 5
3.9
22. 0
14. 9
100.0 3, 176, 739
100. 0
Individuals have risen to second place among the
major home-mortgage lenders. From the inception
of the mortgage recording series in January 1939
through 1942, individuals recorded fewer mortgages
each month than either savings and loan associations
or commercial banks. The associations have since
continued in first place, but from January through
October 1943, the volume for individuals has con79
tinuously exceeded that for any other group. During the entire 10-month period, 32 percent of the
total was recorded by savings and loan associations,
22 percent by individuals, and 20 percent by commercial banks. [TABLES 8 and 9.]
F O R E C L O S U R E S — I n d e x falls to
all-time low in October
On the basis of a 15-percent decline in foreclosures
during October, the seasonally adjusted index (19351939 = 100) dropped to the lowest point in the entire
series—13.7. Foreclosures in October numbered
1,765 compared to 2,077 in September and 3,147 in
October 1942.
During the 12-month period ending in October,
28,001 foreclosures were completed, a rate of 1.3
per 1,000 nonfarm dwellings.
Thus far in 1943, there have been 21,993 foreclosures, a decline of 40 percent from the 36,323
cases during January-October last year.
Every
F H L B District shared in this improvement, with
reductions ranging from 56 percent in the Indianapolis District to 31 percent in the New York region.
[TABLE
10.]
B A N K SYSTEM—Rise in repayments
over September
The decline in the balance of Federal Home Loan
Bank advances outstanding at the close of October
was the result of a rise in repayments and a "back
to normal" trend in advances. At the close of the
month the balance outstanding stood at $126,683,000
as compared with $130,365,000 the previous month
end, and represents the second highest figure recorded during 1943.
Repayments of $11,981,000 during the month
were 60 percent over September, b u t 37 percent
below October a year ago. Every Bank, with the
exception of the Topeka Bank, shared in this increase. The greatest rise was recorded in the WinstonSalem District ($1,940,000).
During October 1943, the Banks advanced
$8,299,000, or $2,609,000 more than during the same
month of last year. The Federal Home Loan Banks
of Boston, Cincinnati, and Los Angeles made the
largest volume of advances, accounting for more than
$3,800,000 of the total.
Total assets of the 12 Banks increased slightly
during the month to $290,208,000 on October 31,
1943. At the close of the month there were 3,760
member institutions in the Bank System, with total
assets of $6,238,403,000.
80
[TABLE 12.]
F L O W OF PRIVATE REPURCHASABLE
CAPITAL
Savings
and
loan
associations
attracted
$115,800,000 of new private share capital in October,
11 percent more than in the same month of 1942.
Repurchases were $67,300,000 during October, increasing 8 percent from October of last year. This
resulted in a slight improvement in the ratio of
withdrawals to new investments—from 60 percent a
year ago to 58 percent in October 1943. Uninsured
members were responsible for this reduction in the
repurchase ratio, since their new investments increased at a more rapid rate than their withdrawals.
Share investments and repurchases, October 1943
[Dollar amounts are shown in thousands]
I t e m and period
All associations
All insured UninNonassociasured
tions
members m e m b e r s
Share investments:
Year
ending
October
SI, 479, 933 $1, 097, 938 $207, 967,$174, 028
October 1943
115,835!
87,692 16,5041 11,639
October 1942
104, 216j
73, 124 14, 109! 16, 983
+ 11
+20
Percent change+ 17|
-31
Repurchases:
Year
ending
October
October 1943
October 1942
Percent change.
Repurchase r a t i o :
(Percent)
Year
ending
October
October 1943
October 1942
892, 156
67, 310
62, 598
+8
60. 3
58. 1
60. 1
603, 657 157, 750 130, 749
45, 104 13,011
9, 195
37, 720 11,490
13, 388
+ 20
+ 13
-31
55.0
51.4
51.6
75. 9
78. 8
81. 4
75. 1
79.0
78. 8
During the year, $1,480,000,000 was placed in
the private capital accounts of all savings and loan
associations, while $892,000,000 was withdrawn;
thus approximately $60 was repurchased for each
$100 newly invested. Uninsured members had withdrawals of $76; nonmembers, $75; and insured associations, $55 for each $100 added to their accounts
through new capital.
INSURED ASSOCIATIONS—Private
ments gain substantially
invest-
Insured savings and loan associations had on their
books share investments of some 3,590,000 private
savers as of the close of October, and their average
shareholder had $956 in his account compared with
$870 a year ago. During October private investors
increased their share accounts in insured associations
Federal Home Loan Bank Review
by $46,000,000, of which $42,600,000 resulted from
the excess of new investments over repurchases, while
$3,400,000 came into the system through insurance of
additional associations. Private investments as of
October 31 aggregated $3,436,000,000—a 20 percent
increase for the past year.
During October, although borrowings declined
nearly 4 percent and Government investment remained practically unchanged, total resources rose
to $4,081,000,000, after a gain of 1 percent. Mortgages on the books of these associations increased
by $21,000,000.
Two associations received insurance during the
month. Although three insurance certificates were
cancelled, no loss of assets was involved, since the
associations were in each case merged with other
insured associations.
Progress in number and assets of Federals
[Dollar amounts are shown in thousands]
Number
Class of association
New
Converted __
Total
_ __
Oct.
31,
1943
638
830
Sept.
30,
1943
Approximate assets
Oct. 31,
1943
Sept. 30,
1943
638 $830, 375 $819, 857
833 1, 720, 598 1, 703, 880
1,468 1,471 2, 550, 973 2, 523, 737
FEDERAL SAVINGS AND LOAN ASSOCIATIONS
The 1,468 Federal savings and loan associations
operating at the end of October, had total assets
of $2,551,000,000. They increased their resources
by $315,000,000, or 14 percent, during the previous
year. [TABLE 15.]
Chapter on Internal Checks A d d e d to
Accounting Guide
•
In an effort to facilitate the work of directors
and management of savings and loan associations
in discharging their responsibility for assuring adequate protection of association funds, a new chapter-—"Internal Check and Control"— has been added
to the Accounting Guide for Federal Savings and
Loan Associations. This manual, while in no sense
mandatory, has through use established itself as the
"Bible" of accounting practice among Federal
associations.
December 1943
While the double entry system of bookkeeping
provides an automatic check of total debit against
total credit, it contains no assurance of the accuracy of results nor any method of control over receipts
and disbursements in individual transactions. A
supplementary system of internal checks may prevent
losses through defalcation, embezzlement, or ordinary
carelessness.
This new chapter outlines a number of specific
procedures to be carried out for the proper supervision
by the board of directors. I t is recommended that a
committee of directors be appointed in a resolution
prescribing the minimum check to be made and outlining the duties to be performed by the committee
in making periodical reports for the minutes of the
board. These duties, it is suggested, might be
assigned to the Auditing Committee or to an "Internal Check Committee." To be most effective,
the specific practices instituted should be regular and
systematic and, in obvious cases, unannounced and
as inconspicuous as possible.
The primary safeguard is to make the accuracy of
each transaction the responsibility of at least two
people, supplementing but not duplicating each
other's work. The responsibilities for each operation
should be clearly defined, preferably by written
instruction or j ob description. Efficiency and honesty
in this type of work are particularly dependent on
careful selection and training of employees. Rotation
in jobs is a recommended practice which hinges on
universal training. Adequate salaries for people
charged with handling money are not only a matter
of common justice but remove one excuse for the
temptation to small peculations.
Proofs and controls should be utilized, the Guide
states, and wherever possible the use of mechanical
equipment with its automatic checks and proofs is
highly desirable. In this connection, it is doubly
safe to have the control key, on equipment that is
operated that way, in the possession of someone
other than the employee who uses the machine.
The new chapter goes into rather great detail in
recommending methods of handling various phases of
cash transactions, subsidiary ledgers, and general
suggestions on records, verification, and signatures.
Emphasis on an adequate and systematic approach
to checking on the internal operation of financial
transactions is not based on the conception of
fundamental dishonesty among employees. It is
recommended as a matter of additional protection
to the association itself and to its employees, as well
as to those whose funds are entrusted to them.
81
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 October 1943, by Federal Home Loan Bank District and by State
[Source: U . S . Department of Labor]
[Dollar amounts are shown in thousands]
All r e s i d e n t i a l s t r u c t u r e s
Federal H o m e Loan B a n k District and State
N u m b e r of family dwelling
units
Oct,, 1943
UNITED STATES..
Connecticut._.
Maine.
Massachusetts
.
______
N e w H a m p s h i r e __ ..
Rhode Island _ _ _ _ _ _
__ _ _
Vermont
___
_____
N o . 2—New Y o r k .
__
_ __
N o . 4—Winston-Salem
._ _
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
South Carolina.
Virginia _ _
__
N o . 5—Cincinnati
Kentucky. _
Ohio
Tennessee _
__ _
__
_..
$55, 836
$69,162
9,660
$29, 257
$32, 325
1,088
6,595
223 |
904
873
3,464
_
171
133
67
980
896
250
657
140
278
3,552
1,821
966
115
37
67
444
142
242
482
100
278
1,723
539
946
4
70
6
13
244
12
4
70
6
13
244
12
Illinois __
Wisconsin
500
1,023
2,093
1,033
6
4,041
11
32
236
5
494
6
96
926
1
2,082
11
2,368
2,660
236
33
428
18
1,589
39
8
17
154
30
549
419
499
432
41
536
2,582
1,178
7,299
4,619
620
834
2,709
3,306
22
2,503
57
66
1,088
24
62
7,156
81
192
4,343
84
22
541
57
66
744
24
62
2,566
81
192
3,030
84
2,311
2,105
9,362
8,516
1,657
1, 521
7,802
6,123
143
2,168
374
1,731
412
8,950
1,059
7,457
111
1,546
310
1,211
375
7,427
951
5,172
2,244
1,954
10,666
6,348
690
682
2,886
2,667
1,869
375
1,003
951
9,127
1,539
3,787
2,561
349
341
555
127
1,466
1,420
2,190
477
62
168
138
497
62
168
138
497
35
12
15
54
52
42
4
16
90
18
30
183
164
96
10
44
35
12
15
54
52
42
4
16
90
18
30
183
164
96
10
44
1,504
3,058
2,296
8,411
1,309
742
1,923
1,583
40
27
76
59
1,302
71
51
26
28
2,882
8
7
37
138
2,106
190
110
24
78
8,009
40
27
64
59
1,119
71
51
26
28
566
8
7
21
138
1,749
190
110
24
78
1,181
301
294
783
715
239
266
627
659
43
87
89
82
8
90
106
90
117
174
310
182
12
183
301
219
9
75
89
66
8
62
106
90
17
148
310
152
12
127
301
219
829
2,262
3,388
7,802
541
466
2,581
1,561
5
9
97
117
343
258
1
105
125
137
1,894
10
15
379
405
1,895
684
2
208
445
352
6,795
5
6
57
112
343
18
1
109
77
274
10
9
202
390
1,895
75
2
10
419
206
924
.
4, 219
2,644
9, 805
7,587
2,036
1, 852
5,846
5,795
__ _
24
4,195
56
2,525
63
54
9,751
188
7,195
204
24
2,012
5
1,784
63
54
5,792
13
5,578
204
...
. ___
__
_ _
__
.
._
_.. ___
. ._
. ...
___
______
_
.
_.
...
_.
__
._
_ . . _
__
. __ __
___ __ _ _ _
__
_
_
____
_
._ __ _ __
. __
.- - -_ _ _ _
_
_
_ _
...
_ __
_. _ __ _
._ _
Arizona, _ ___
_ __ ._
California..
__. _ _ _ _ _ _ _ _
Nevada
273
154
8
245
193
198
163
17
161
N o . 11—Portland
82
4,052
96
1,726
1
1,139
___ _
_ _
1,823
145
9
183
23
553
45
22
23
N o . 10—Topeka
N o . 12—Los Angeles -
1,039
32
414
5
1, 003
Arkansas
_
___
L o u i s i a n a __ _
___ _ __
Mississippi
___ _ _. _
N e w Mexico
_
_.
Texas.. . . .
_. _ __ __ _
Idaho
_ __
Montana
_
Oregon _
_
Utah
Washington.
Wyoming
451
1,282
1,163
5,019
438
2,258
517
41
1,017
_____
__
_ __ .
_ __
1,128
789
11,735
Iowa
.
_
.__
M i n n e s o t a . __
_ _ __ __ ___
Missouri..
__ _
_
_
_______
North Dakota .
__
__
_
South Dakota
Colorado
.
Kansas.
___
Nebraska
Oklahoma
1,917
318
163
236
638
590
1.577
1,605
39
8
1,868
_______
N o . 9—Little R o c k
481
365
221
6,561
_
N o . 8—Des M o i n e s . _
586
120
47
554
489
1,757
205
618
199
17
253
_ __ _
_
167
1,279
1,006
4,092
„
_
2,285
1,116
1,511
145
234
283
638
561
45
22
507
___
_ _
2,627
433
343
2,435
__
___
776
_
_
N o . 7 — C h i c a g o . . ._
857
420
437
... _
_
___
8,820
_
No. 6—Indianapolis..
Indiana.._
Michigan.
._
__
__
Oct. 1942
__
_
_______
Oct. 1943
Oct. 1942
2,202
_____
__
___
Oct. 1943
375
__
_
.__
Oct. 1942
18,170
N e w Jersey
New York
Delaware. .
P e n n s y l v a n i a . __
West Virginia.
Oct. 1943
Permit valuation
..__
__
.._
No. 3—Pittsburgh,
Permit \ aluation
21, 772
-
N o . 1—Boston
Oct. 1942
All p r i v a t e 1- a n d 2-family s t r u c t u r e s
N u m b e r of family dwelling
units
_
.
Federal Home Loan Bank Review
Table 2 . — B U I L D I N G A C T I V I T Y — E s t i m a t e d number and valuation of new family dwelling units
provided in all urban areas of the United States
[Source: U. S. Department of Labor]
[Dollar amounts are shown in thousands]
Permit valuation
N u m b e r of family dwelling u n i t s
P r i v a t e construction
_.
... _ .
1-family d w e l l i n g s . _
..
. . .
2-family d w e l l i n g s l
. . _.
3- a n d more-family dwellings 2
Public construction
_. __
J a n u a r y - O c t o b e r totals
M o n t h l y totals
T y p e of c o n s t r u c t i o n
_ _ _
Total urban construction _
... _
1943
Oct. 1943
S e p t . 1943
Oct. 1942
11,840
10, 906
11,181
101,840
7,018
1,802
3,020
6,685
1,535
2,686
8,527
1,133
1,521
65, 603
13, 932
22, 305
J a n u a r y - O c t o b e r totals
M o n t h l y totals
Oct. 1943
S e p t . 1943
Oct. 1942
167, 866
$37,861
$34,209
$36, 224
$316, 585
$546,135
127,484
13, 456
26. 926
23. 946
5; 311
8,604
22. 350
< 309
7,550
28, 958
3,367
3,899
216,215
38,984
61, 386
439, 858
36, 658
69, 619
1942
1943
1942
6, 330
2,930
10, 591
75, 038
81, 624
17,975
6,148
32,938
161, 759
261,433
18,170
13,836
21,772
176,878
249,490 1
55,836
40, 357
69,162
478,344 1
807,568
1
Includes 1- and 2-family dwellings combined with stores.
2 Includes multi-family dwellings combined with stores.
Table 3 . — B U I L D I N G COSTS—Index of building costs for the standard house in representative
cities in specific months 1
[Average month of 1935-1939=100]
1943
1942
1941
1940
1939
1938
1937
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
F e d e r a l H o m e L o a n B a n k District
a n d city
Nov.
N o . 3—Pittsburgh:
Wilmington, Del. . . . _
Philadelphia, Pa. .
Pittsburgh, Pa
_ _.
C h a r l e s t o n , W . Va
Wheeling, W . Va
N o . 5—Cincinnati:
Louisville, K y
C i n c i n n a t i , Ohio
Cleveland, Ohio
C o l u m b u s , Ohio
Memphis, Tenn
Nashville, T e n n
N o . 9—Little Rock:
Little Rock, Ark
N e w Orleans, L a
Jackson, Miss
Albuquerque, N . Mex
Dallas, Tex
H o u s t o n , Tex
S a n A n t o n i o , Tex
N o . 12—Los Angeles:
P h o e n i x , Ariz
Los Angeles, Calif..
S a n Diego, Calif
S a n Francisco, Calif
Reno, Nev
.
__ _ .
__.
. .
_ ... _ _
... .
._
...
.
Aug.
May
Feb.
148.6
151.2
136.7
126.0
122.9
144.1
150.8
136.7
123.5
122.1
144.2
149.3
138.4
123.5
122.1
144.1
143.1
133.0
123.3
122.1
135.4
143.4
129.2
123.5
122.0
126.6
136.0
120.7
113.8
114.3
107.8
119.4
106.5
104.0
107.6
97.0
105.6
105.9
101.9
104.6
106.2
101.8
106.0
102.7
99.0
104.6
108.9
111.2
108.8
109.4
132.7
130.7
130.0
132.1
133.5
r 123. 8
112.3
120.5
117.7
' 127.0
r 123. 7
112.3
120.5
117.7
r 125. 6
r 123.9
112.0
119.5
117.6
r 125. 7
121.4
123.4
112.0
119.5
117.6
r 126. 2
121.4
122.0
111.0
116.9
115.6
r 123. 0
118.3
107.0
100.5
109.3
103.4
' 108. 6
103.2
104.0
97.4
107.6
101.0
104.0
97.9
100.8
97.9
100.9
100.2
103.1
99.7
103.6
105.4
108.0
106.6
104.9
106.7
120.0
135.0
130.2
r 120. 0
125.6
r 123. 5
rll9.8
125. 5
' 123.6
r 120. 3
125.5
r 123.5
121.5
126.0
' 123. 2
120.9
116.9
129.0
116.7
128.5
129.0
116.7
128.5
128.8
117.1
128.5
117.0
123.7
' 121.1
122.7
131.5
117.8
131.4
103.1
113.8
109.6
106.5
105.2
104.9
100.7
99.8
105.3
105.1
99.5
93.2
99.9
98.1
100.1
104.3
105.9
103.0
100.4
100.8
102.3
99.9
107.1
104.2
104.7
106.0
104.6
107.5
114.2
124.0
112.8
120.0
112.8
119.4
112.7
120.4
112.7
120.6
120.9
120.9
120.8
119.2
119.2
110.5
109.2
123.1
114.3
117.2
101.2
100.9
107.0
103.1
108.6
99.4
96.3
95.9
102.3
104.3
103.3
99.3
102.0
103.4
102.2
107.7
107.6
108.4
103.5
103.7
r
Revised.
1 The house on which costs are reported is a detached 6-room home of 24,000 cubic feet volume. Living room, dining room, kitchen, and lavatory on first floor;
three bedrooms and bath on second floor. Exterior is wide-board siding with brick and stucco as features of design. Best quality materials and workmanship are used
throughout.
t The house is not completed ready for occupancy. It includes all fundamental structural elements, an attached 1-car garage, an unfinished cellar, an unfinished
attic, a fireplace, essential heating, plumbing, and electric wiring equipment, and complete insulation. It does not include wallpaper nor other wall nor ceiling finish
on interior plastered surface, lighting fixtures, refrigerators, water heaters, ranges, screens, weather stripping, nor window shades.
Reported costs include, in addition to material and labor costs, compensation insurance, and allowance for contractor's overhead and transportation of materials
plus 10 percent for builder's profit.
Reported costs do not include the cost of land nor of surveying the land, the cost of planting the lot, nor of providing walks and driveways; they do not include
architect's fee, cost of building permit, financing charges, nor sales costs.
In figuring costs, current prices on the same building materials list are obtained every 3 months from the same dealers, and current wage rates are obtained from the
same reputable contractors and operative builders.
December 1943
83
Table 4 . — B U I L D I N G COSTS—Index of building costs for the standard house
[Average month of 1935-1939-100]
E l e m e n t of cost
Oct. 1943 Sept. 1943 A u g . 1943 J u l y 1943 J u n e 1943 M a y 1943 Apr. 1943 M a r . 1943 F e b . 1943 J a n . 1943 Dec. 1942 N o v . 1942 Oct. 1942
Material
Labor
Total c o s t . . .
126.0
135.0
124. 4
133. 8
123.4
134.2
123. 7
134.3
123.0
134.3
122.2
134.3
121.8
133.4
122.0
133.0
121.9
132.5
121.5
130.9
121.4
130.7
121.5
130.2
121.6
130.2
129.1
127. (i
127.1
127.3
126.8
126.2
125.7
125.7
125.5
124.7
124.5
124.4
124.5
Table 5 . — B U I L D I N G COSTS—Index of wholesale price of building materials in the United States
[1935-1939=100; converted from 1926 base]
[Source: U. S. Department of Labor]
All b u i l d i n g
materials
Period
1941: October
_ ...
1942: O c t o b e r
November
December
1943: J a n u a r y
February
March
_
_
April
_
_
May
June
_.
.
July.
August
September
October
P e r c e n t change:
October 1943-September 1943
_.
.
October 1943-October 1942___
Brick a n d
tile
Cement
Paint and
paint materials
Lumber
Plumbing
and heating
Structural
steel
Other
119.8
106.3
101.7
144.2
118.0
115.3
103.5
109.8
123.3
122.9
122.8
108.6
108.5
108.6
103.4
103.4
103.4
148.4
148.2
148.4
124.2
123.8
123.3
123.6
122.4
118.8
103.5
103.5
103.5
111.7
111.3
111.4
122.6
123.1
123.3
123.2
123.4
123.5
123.6
125.3
125.6
125.8
108.6
108.5
108.6
108.6
108.8
109.0
109.0
109.0
109.0
109.0
103.4
103.4
103.4
103.4
103.1
102.7
102.7
102.7
102.7
102.7
148.4
149.9
149.9
150.0
151.0
151.8
152.7
158.1
158.9
159. 4
123.7
124.4
125.7
126.0
125.7
125.4
125.4
126.4
126.1
126.4
118.8
118.8
118.8
118.8
118.8
118.0
118.8
118.8
118.5
118.5
103.5
103.5
103.5
103.5
103.5
103.5
103. 5
103.5
103. 5
103.5
110.5
110.5
110.3
109.9
109.9
110.0
109.5
109.7
110.3
110.5
+0.2
0.0
0.0
+0.3
+0.2
0.0
0.0
+0.2
+2.0
+0.4
-0.7
+7.4
+1.8
-4.1
0.0
-1.1
Table 6 . — M O R T G A G E LENDING—Estimated volume of new home-mortgage loans by
savings arid loan associations, by purpose and class of association
all
[Thousands of dollars]
Class of association
P u r p o s e of l o a n s
Period
1941
._
January-October.-.
October
1942
._
_ ._. _
_.
_. .
January-October
October
November
December
_ _ _ ...
1943
January-October
January
.
February
March
...
.
April
May
June
July
August...
September...
October..
__ _.
84
_
.
....
.
_
. . . _.
...
Reconditioning
L o a n s for
all other
purposes
Total
loans
State
members
Nonmembers
Construction
H o m e purchase
Refinancing
$437,065
$580,503
$190.573
$61,328
$109,215
$1,378,684
$584,220
$583,804
$210,660
376, 672
37, 722
488, 542
59,874
162,809
16, 283
52,891
5,361
92, 813
8,698
1,173,727
127,938
501,128
52, 507
492, 954
54, 930
179, 645
20, 501
190,438
573,732
165,816
41,695
78,820
1,050,501
412,828
476,080
161,593
172, 691
10,572
9,275
8,472
488, 308
56,528
43,984
41,440
140, 576
14,694
12,472
12,768
36,489
3,498
3,007
2,199
67, 830
6,380
5,241
5,749
905,894
91,672
73,979
70, 628
357, 284
35, 555
28.163
27,381
407, 888
41,937
35, 441
32, 751
140, 722
14,180
10,375
10,496
88, 665
7,173
4,597
8,572
9,853
9,039
8,946
9,209
10,616
13,211
7,452
664, 662
32,820
39,084
55, 235
65,088
67,826
74.885
77, 555
82.894
86,016
83, 259
141, 937
11,408
12,510
14,874
15,040
14,843
15,913
14,925
14, 600
13,799
14,025
25,513
1,667
1,953
2,377
2,484
2,606
2,707
2,807
2.809
3,229
2,874
62, 556
4,788
5,183
6,127
6,270
6,176
6,425
6, 859
6.470
6,718
7,540
983, 333
57,856
63,324
87,185
98.735
100,490
108,876
111,355
117,389
122,973
115,150
423, 306
23,390
26,566
37,850
42, 717
41,835
46,730
48,370
51,172
54,100
50, 576
448, 219
26,910
28,175
38, 595
44,461
47, 818
50,182
50, 648
53, 497
55,907
52,026
111, 808
7,556
8,583
10, 740
11,557
10,837
11,964
12, 337
12,720
12,966
12, 548
Federals
Federal 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]
[ T h o u s a n d s of dollars]
OCTOBER
C u m u l a t i v e new loans
(10 m o n t h s )
N ew loans
Federal H o m e L o a n B a n k !
District a n d class of
j
association
j Octo- September
| ber
1943 j 1943
1
1943 j 1942
October
1942
i
1 $115,160'.$122,973 $91, 672 $983,333 $905,894
U N I T E D STATES
50,576 | 54,100
52,026 55, 907
. 12,548 12.966
Federal
__
State member
Nonmember..
Boston
Federal .
State member
Nonmember
TVew Y o r k
w
.
Federal
State member
Nonmember Pittsburgh
Federal
- _
State member
Nonmember
Winston-Salem
_. _- --
State m e m b e r
35, 555 423,306 357,284
41, 937 448, 219 407,888
14,180 111, 808 140,722
+18.5
+9.9
-20.5
9,953
11,094
9,348
80,062
90,162
-11.2
2,800
5,581
1,572
3,426
6,093
1,575
2,823
4,827
1,698
23, 336
43,835
12, 891
27,358 1
48,367
14,437
-14.7
-9.4
-10.7
9,241
9,598
8,909
73, 422
91,614
-19.9
-15.0
+9.4
-51.6
+1.2
2,624
4,639
1,978
2,629
4,792
2,177
2,271
3,922
2,716
18, 503
37, 832
17, 087
21, 761
34, 579
35, 274
10,167
9,301
8,980
83, 950
82,936
4,324
3,390
2,453
3,892
3,296
2,113
13, 939
14, 041
6,944
5,826
1,169
7,617
5,430
994
19, 004
Cincinnati
7,633
9,908
1,463
Federal
S t a t e m e m b e r . __ _
Nonmember..-- -
Federal
State member
Nonmember
_ _
-2.1
51, 895
56, 052
13, 383
+15.4
-15.8
-12.9
59,882
47,192
11, 655
4,438
5,120
1,355
17, 719 180,114 167,429
70,109
95,910
14,095
6,114
9,421
2,184
62,135
87,837
17, 457
+7.6
+12.8
+9.2
-19.3
59, 585
49, 400
+20.6
3,690
3,142
351
3,184
3,071
340
2, 678
2,337
236
30,815
25, 468
3,302
24, 713
22,160
2, 527
+24.7
+14.9
+30.7
11,658
12, 979
8,641
99,095
88,196
+12.4
4,969
5,356
1,333
4,952
6,456
1,571
3,274
4,285
1,082
38, 411
49, 200
11. 484
32, 051
42,835
13, 310
+19.8
+14.9
-13.7
6,899
7,420
4,538
55,492
44, 477
+24.8
3,609
2,466
824
3,613
2,731
1,076
2,188
1,738
612
27,884
19, 726
7,882
20,887
16,498
7,092
+33.5
+19.6
+11.1
5,965
6,667
3,880
50,872
42, 284
+20.3
2, 536
1 3,329
___
100
2,395
4,167
105
1,508
2,312
60
20, 983
29, 057
832
15, 968
25, 523
793
+31.4
+13.8
+4.9
-
_.
D e s Moines
.
_
Little Rock
Federal. State member
Nonmember
10, 913 118, 729 121, 330
5,251
.
Federal
_.
State member
Nonmember
8,791
11,166
1,590
+ 10.0
+10.6
-16.8
6, 595
..
Federal
State member
Nonmember.-
21, 547
30, 621
24,616
27, 699
33, 691
27, 227
23,032
3,146
2,498
3,336
7,183
Indianapolis
Chicago--
+8.5
1
_
-
1
-
5, 528
6,017
3,603
48, 598
38, 324
+26.8
Federal _
___ _
State member
. .
Nonmember
2,831
1,624
1,073
3,309
1,660
1,048
2.022
1,024
557
27,179
14,163
7, 256
21,104
10, 992
6,228
+28 8
+28 8
+16. 5
Topeka
.
3,682
Portland
Federal
State m e m b e r
Nonmember
Los Angeles
Federal
State m e m b e r
Nonmember
December 1943
_
Federal H o m e
Loan
Bank
District
and State
Banks MuSavings
Insur- and
tual
and
ance
trust
savloan
comings
associ- comations panies panies b a n k s
U N I T E D STATES
$122,832 $25,141 $74,875 $15,023 $87, 430| $61,002 $386,303
Percent
change
i
1943
Boston
--
Connecticut
Maine - Massachusetts
New Hampshire
Rhode Island
Vermont-
...
New York, .
New Jersey.. - .
New York _
Pittsburgh
Delaware
Pennsylvania
W e s t Virginia
__
„
Winston-Salem
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 C arolina
S o u t h Carolina
Virginia. _ _ _
Cincinnati
Kentucky
Ohio
Tennessee
._
Indianapolis
.
Indiana..-.
Michigan
Chicago
Illinois..
Wisconsin.
Des Moines
Iowa
_Minnesota.__ . . . _ __
Missouri
North Dakota
South Dakota
L i t t l e R o c k . . . __ . . . .
Arkansas
Louisiana
Mississippi
N e w Mexico
Texas..
_ __
...
. _ .__
Topeka
Colorado
Kansas
Nebraska
Oklahoma
.
...
_ ._
Portland
Idaho. _
Montana
Oregon
Utah
Washington
Wyoming
Individuals
Other
mort- Total
gagees 1
10,629
838
3,144
7,669
5,802
3,958
32,040
1,308
596
7,483
262
823
157
5591
27
241
1,511
231
967
130
227
78
1,642
627
4,4181
433
289
260
1, 754 1,379
517
61
2, 5571 2,284
2841
37
519
175
171
22
8,153
2,059
17,950
1,146
2,044
688
8,103
2, 312
6,001
4,246 11, 545
9, 616
41,823
3,247
4,856
803
1, 509
3,438
2,563
685
3,561
3,983
7,562
3,986
5, 630
16,142
25,681
9,519
ii
1, 788
7,659
633
5,439
4, 309
29, 347
182
8,455
882
125
1,452
211
136
6,436
1,087
25
563
45
266
4,578
595
88
4,058
163
822
25, 542
2,983
13,945
3,417
5,274
107 11,013
4,935
38,691
390
2,270
1,486
1,429
4,284
1,875
331
1,880
619
288
680
362
229
440
215
584
457
301
715
1,198
855
259
358
1,131
107
920
1,146
3,178
893
1,424
1,041
518
1,893
488
184
539
604
1,136
489
293
1,202
2,874
4,189
6, 598
4,486
8,035
4,104
1,715
6,690
22, 797
2,501
9,556
1,227
5,908
4,556
46, 545
2,482
19, 738
577
543
1, 489
469
715
8,155
686
1,227
306
5,219
383
228
2,313
2,015
4,274
38,141
4,130
7,177
2,869
6,791
18
2,913
5,470
25, 238
4,699
2,478
637
2,232
2,505
4,286
18
893
2,020
802
4,668
9,554
15, 684
12,934
1,734
6,261
19
6,191
9,280
36, 419
9,875
3,059
1,163
571
3,830
2,431
19
3,277
2,914
8, 337
943
26, 482
9,937
8,063
2,492
5,239
108
5, 017
3,462
24, 381
1,948
3,023
2, 654
320
118
311
980
1,124
67
10
1,203
752
2,987
117
180
661
1,277
2,731
167
181
186
437
2,786
27
26
4,309
6,577
12,282
698
515
7,521
2, 363
1,622
5,400
2,550
19, 456
443
2, 545
280
173
4,080
51
238
225
1,849
215
135
226
121
925
329
1,045
419
172
3,435
23
403
172
17
1,935
1,061
4,366
1,322
483
12, 224
6,327
861
2,501
4,213
1,668
15, 570
1,126
1,829
1,123
2, 249
50
134
509
168
297
689
543
972
2,189
406
474
1,144
362
409
141
756
4,024
3,467
2,790
5,289
3,826
545
2,876
996
2,530
4,666
15,439
353
166
867
343
1, 905
192
32
23
310
103
77
130
126
267
579
1,697
77
40
245
234
976
270
646
159
96
54
1,778
435
2,298
5
856
603
4 238
1 730
7,579
433
108
4,685
3,054
37,373
28, 349
+31 8
2, 361 | 2,675
1, 727
1,157
164 !
283
1,954
816
284
23,251
12,536
1, 586
17, 772
8,685
1,892
+30 8
+44.3
— 16 2
13,029 1 6,836 1 96,041
61,393
+56.4
Los Angeles
_
11/991
3,421 17, 951
21,459
6,532
61 354
31,019
29, 744
630
+58.8
+54.9
+12 1
Arizona
California.
Nevada
_
168
11, 782
41
142
23
3,392 17, 774
35
6
726
20, 556
177
16
6,512
4
1,075
60,016
263
1 11,931
6, 255
5,608
68
7,617 1 3,139
5, 318
3,637
94
60
49,262
46,073
706
. .
.
i
956
85
Table 9 . — M O R T G A G E
RECORDINGS—Estimated volume of nonfarm mortgages recorded
[Dollar a m o u n t s are s h o w n in t h o u s a n d s ]
Savings a n d loan
associations
Banks and trust
companies
Insurance
companies
M u t u a l savings b a n k s
Other
mortgagees
Individuals
All
mortgagees
Period
1942:
1943:
Total
Percent
Total
Percent
Total
Percent
January-October
October
_.
November
December.
$1,014,082
103,170
80,970
75, 494
29. 8
28. 9
29.1
28.4
$312. 490
32, 577
25, 950
23, 303
9.2
9.1
9.3
8.8
770.141
79, 224
58, 519
57, 050
22. 2
2L0
21.5
$143.438
14,817
11,596
10, 640
January-October
January
February
March
April
May
June
-.
July
August
September
October
1,024.511
64, 935
66, 938
85,642
101,135
107, 221
113,431
116.406
119,385
126. 586
122. 832
32.3
28.4
30.5
31.8
32.7
32.8
32.5
33.1
33.6
33.2
31.8
234. 563
19, 900
18, 064
22,198
24, 558
24, 435
26,613
25, 586
24,072
23. 996
25,141
7.4
8.7
8.2
8.2
8.0
7. 5
7.6
7.3
6.8
6.3
6.5
620. 652
48, 640
44, 273
53,186
63, 3S5
65, 688
65, 656
64. 766
68. 043
72, 140
74, 875
19.5
21.3
20.1
19.7
20.5
20.1
18.8
18.4
19.1
19.0
19.4
125. 001
8,045
7,895
9,536
11,122
12, 940
14, 718
15, 329
15, 061
15,332
15. 023
Table 10.—FORECLOSURES—Estimated nonfarm real-estate foreclosures, by Federal
Home Loan Bank District
Total
Percent
Total
Percent
Total
Percent
4.2 $622. 660
4.2
67, 623
4.2
55, 830
4.0
54, 207
18.3 $536.075
59, 672
18.9
45, 456
20.1
44, 712
20.4
15.8 $3. 398. 886
16.7
357.083
16.3
278, 321
16.9
265, 406
100.0
100.0
100.0
100.0
3.9
3.5
3.6
3.5
3.6
3.9
4.2
4.4
4.2
4.0
3.9
22.0
22 2
22. 7
22*2
21.3
21.4
21.6
22.3
22.1
2L9
14.9
15.9
14.9
14.6
13.9
14.3
15.3
14.5
14.2
15.6
15.8
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
698. 942
50,583
49, 854
59, 662
65, 807
70, 054
75,183
78. 594
78, 455
83, 320
87, 430
473. 070
36,180
32, 858
39,195
42,950
46. 754
53, 445
50, 835
50, 416
59, 435
61, 002
i. 176. 739
228,283
219,882
269,419
308, 957
327.092
349.046
351,516
355, 432
380. 809
386, 303
Table 1 1 . — F H A — H o m e mortgages insured *
[ P r e m i u m p a y i n g ; t h o u s a n d s of dollars]
Title I I
Title I
Class 3
Period
Title V I
New
Federal H o m e L o a n B a n k
District
1942:
U N I T E D STATES
229
509
460
192
160
41
115
123
81
82
19
66
202
475
251
199
150
32
97
105
89
83
16
66
Boston.
.-.
New York
Pittsburgh
Winston-Salem.
Cincinnati
Indianapolis
Chicago
D e s Moines
Little Rock
Topeka
Portland
Los Angeles
369
790
480
378
289
94
181
183
105
100
26
152
2,315
5. 824
3,708
2, 583
1,746
450
1,258
1,404
758
850
208
889
4.220
8,488
6,041
4,185
3, 344
1,029
2,183
2,147
1,282
1,287
461
1,656
-45.1
-31.4
-38.6
-38.3
-47.8
-56.3
— 49 4
-34! 6
-40.9
-34.0
-54.9
-46.3
Percent
Total
October
November..
December..
1943: J a n u a r y
February
March
April
May....
June...
July
August
September...
October
Existing
Total
insured
at e n d of
period
802
726
557
26, 831
21, 893
19,187
17, 639
17,071
19, 530
38, 265
40,195
43. 214
4, 491,529
4,581,414
4. 663,902
167
84
706
-50
41
-19
-25
27
-25
-18
14.172
8,495
5.690
3,463
2,894
2.606
2,424
1,563
1.479
818
17,084
11, 846
13.175
12, 704
15. 248
16, 759
18, 502
18.519
18, 737
18. 856
40,649
37,168
43, 523
35, 878
39, 511
41, 629
43, 445
49.518
46, 365
48. 571
735, 974
793.570
856, 664
908, 659
966, 353
027, 328
091, 674
161.301
227, 857
296. 084
r Revised.
1
Figures represent gross insurance w r i t t e n d u r i n g t h e period a n d do n o t t a k e
account of principal r e p a y m e n t s on previously insured loans.
}
A d j u s t m e n t s in loans r e p o r t e d in previous m o n t h s .
Table 1 2 . — F H L B A N K S — L e n d i n g operations and principal assets and liabilities
[ T h o u s a n d s of dollars]
L e n d i n g operations
O c t o b e r 1943
C a p i t a l a n d principal liabilities
October 31, 1943
P r i n c i p a l assets October 31, 1943
Federal Home Loan B a n k
Advances
Pittsburgh
._
Little Rock
-
_ .. .
(All B a n k s ) October 1943S e p t e m b e r 1943
October 1942
-
.
i n c l u d e s i n t e r b a n k deposits.
86
- -
-
$1, 530
953
614
457
1,184
486
575
233
272
188
675
1,132
Repayments
$636 '
1,519
675
2,623
751
930
1,987
799
325
135
233
1,368
Advances
outstanding
Cashi
Government
securities
Capital2
Debentures
Member
deposits
Total
assets 1
October
31, 1943
$12,620
18, 668
11,392
11, 406
10,048
11,221
15, 833
8,325
4.317
4,033
2.353
16, 467
$1, 386
882
2,866
1,187
2,806
2,440
2,699
1,772
1,221
1.263
585
1,636
$9,815
19, 248
10,558
5,335
20, 824
12,233
14,831
12, 533
10,483
7,366
8, 241
11.437
$19, 556
27,080
16, 300
17, 505
24, 264
13,630
22, 075
12, 327
12, 374
10, 344
8,330
15, 341
$3,000
9.000
8,000
0
3,500
8,700
6,000
9,000
3,500
1,500
1.800
12, 000
$1,327
2,819
557
471
5,506
3,621
5,345
1.352
'212
859
595
2,270
$23, 887
38, 912
24, 897
17, 978
33, 797
25,965
33. 436
22, 688
16, 089
12, 705
11, 227
29,621
8,299
11,981
126. 683
20,743
142, 904
199.126
66, 000
24, 934
291, 202
56,501 |
7,502
130.365
18. 944
138,601
198,559
60.000
24. 711
288,483
19.065
131,377
64, 528
106, 278
191, 377
87, 500
23, 719
303,070
5.690 1
2
C a p i t a l stock ,surplus , a n d u n d i v i d e d profits.
Federal Home Loan Bank Review
Table
1 3 . — S A V I N G S — S a l e s of war bonds
Table 1 4 . — S A V I N G S — H e l d by institutions
[Thousands of dollars]
Series G
[Thousands of dollars]
Redemptions
Period
Series E *
Series F
1941
1942...
October
November
December
1943
January
February
March
April
May
June
July
August.
September
October
$1,622,496
5, 988,849
587,854
541, 573
725, 777
$207, 681 $1.184,868
2, 516,065
652,044
175,178
51,321 '
148, 211
44, 766
222, 398
65, 994
$3.015,045
9.156. 958
814,353
734, 549
1, 014,168
$13,601
245, 547
32,190
36, 843
47,919
348,450
205, 295
180,011
353.421
253,857
144,128
169,241
112,434
387,412
274,877
1, 240, 444
887,195
944, 276
1, 469, 724
1, 334, 984
875, 491
889, 691
801, 729
1,926, 555
1, 708,150
55,429
69,440
126, 621
95, 458
97,488
134, 822
131, 424
144,966
148, 498
137,496
814,928
633, 572
720, 407
1.006,786
995, 234
696, 213
682,871
661, 200
1,400,159
1, 340,148
__..
77. 066
48,328
43, 858
109, 517
85, 893
35,149
37, 579
28, 095
138, 984
93,124
Total
1
U. S. Treasury War Savings Staff, Actual deposits made to the credit of
the2 U. S. Treasury.
Prior to May 1941: "Baby bonds."
Insured
savings a n d
loans l
E n d of period
1941: J u n e
December
1942: October
November,
December
1943: J a n u a r y
February
_
March
April
May_.
June
July....
August
September
October ___._. _.
$2, 433, 513
2, 597, 525
2,873,822
2,912.717
2, 983, 310
3,030,919
3, 068,672
3,105,080
3,143, 943
3,194, 029
3, 270, 834
3, 318, 900
3, 362, 380
3, 389, 891
3,435,798
Mutual
savings
banks *
Insured
commercial
banks 3
$10,606, 224
10, 489, 679
$13,107.022
13,261,402
10, 620. 957
« 13, 820.000
11,104, 706
* 14, 870, 000
Postal
savings *
$1, 304,153
1, 314. 360
1, 376,898
1, 396, 242
1,417,406
1,445, 268
1, 467, 833
1, 492, 966
1, 517,167
6
1, 544, 712
6
1, 576. 266
6
1, 621, 641
6
1,660,499
6
1, 683, 365
6
1,716,898
1
Private repurchasable capital as reported to the FHLB Administration.
2 Month's Work. All deposits.
3 F D I C . Time deposits evidenced by savings passbooks.
« Estimated by FDIC.
* Balance on deposit to credit of depositors, including unclaimed accounts.
• Unaudited.
Table 1 5 . — I N S U R E D A S S O C I A T I O N S — P r o s r e s s of institutions insured by the FSLIC
[Dollar a m o u n t s are s h o w n n t h o u s a n d s ]
Operations
Government
bond
holdings
Total
assets
N e t first
mortgages
held
Cash
2,313
2, 343
$3,159,763
3, 362,942
$2, 555,393
2, 751,938
$190,671
206,457
2, 390
2,396
2,398
3, 548, 692
3, 588, 995
3,651,598
2,871, 968
2,875,165
2,871,641
256,470
193,452
2,405
2,415
2,415
2,417
2,422
2,428
2, 435
2,433
2,440
2,439
3,627,828
3,657,989
3, 690,918
3,757,464
3,811,473
3, 880, 999
3, 875, 269
3,920,852
4,037,926
4,081,472
2, 865, 632
2,866,839
2,868,410
2, 881, 247
2, 892,665
2, 918, 577
2, 931, 482
2, 946,968
2,971,411
2, 992, 823
260, 749
241,818
276, 785
376,177
186, 954
580,087
1941: J u n e
December
1,452 i
1,460
2,028,138
2,173,326
1.687,087
1. 824,646
126,390
138,040
16,714
23.623
1942' October
1,466 1
1,468
1,467
2,235,726
2,259,670
2,299,895
1, 862, 593
1, 862, 796
1,853,868
164,430
117,339
1,467
1,468
1,467
1,466
1,466
1,468
1,468
1,466
1,471
1,468
2,264,817
2,278,839
2,300,638
2,349,831
2,380,241
2,426,079
2, 408, 687
2,438,803
2,523,737
2,550,973
1. 843, 714
1,839, 245
1,839,302
1,846,536
1,849,999
1,865,991
1,871,478
1.880,513
1,896,312
1,908,518
156,792
146, 537
170,730
235, 524
109,181
369,954
64,281
68,417
16, 804
20, 269
1,017.773 1 92,040 1 76,113
Number
of associations
Period a n d class of association
ALL
INSURED
1941: J u n e
December
1942: October
December
..
1943: J a n u a r y
February
March
April
May
June
July
September
October
_
.
.
Government
share
capital
Federal
Home
Loan
Bank
advances
$206,301
196, 240
$144,331
193,275
$85,117
63, 506
1 2, 873, 822 1 169,162
2,912,717
169, 257
2,983,310
169,167
113,856
103, 329
113,977
59,021
48, 017
46, 705
3,030,919 1 148.220
3,068,672
120,308
3,105, 080
120,138
3,143, 943
119, 572
3,194. 029
119, 547
3, 270, 834
119,252
3, 318, 900
74, 568
3, 362, 380
69, 941
3,389,891
69,920
3,435, 798
69,720
99,037
82,652
66,970
75, 664
67, 631
78,155
80, 904
71,013
118,153
114,619
39,149
44,076
61,139
69, 604
69, 471
76, 899
77, 994
83, 068
87, 878
81, 929
119,923
73,455
83,403
83, 242
78, 294
103, 939
134,065
94, 229
83,970
87, 692
1,553,712
1,668, 415
169, 247
160.060
103,696
144,049
57, 542
41,182
1,814,156
1, 839, 506
1,882,051
137,108
137, 208
137, 208
83,095
75, 865
84,135
1.906.323
1,928,559
1, 953, 846
1,979,864
2,011,373
2, 060, 502
2, 087, 404
2.117,053
2,135,010
2,164,155
118,769
96,109
96,109
96,109
96,109
96,109
58,239 i
55,021
55,021
55,021
800,193
929,110
Private
repurchasable
capital
$33,518 $2,433,905
43,892 1 2, 597, 525
February.
March..
April
...
.
June
July
September
N e w private
investments
Private
repurchases
Repurchase
ratio
$61,448
74,801
$26,779
35, 728
43.6
47.8
73,124
64,697
91,029
37,720
30,738
30,219
51.6
47.5
33.2
84, 573
42,123
48,955
47.171 1
33, 684
33, 704
97,117
50. 250 1
60,019
45,104
70.5
57.3
58. 7
56.7
43.0
32.4
72.4
53.3
71.5
51.4
40.030
48,872
14, 530
20,400
36.3
41.7
35,555
28,163
27,381
47, 222
42, 076
58,937
22,019
18.174
18, 530
46.6
43 2
28.0
72, 046
58, 489
46,820
54, 254
47, 725
56, 553
59, 416
51, 639
87, 648
84,983
23,390
26, 566
37,850
42,717
41,835
46, 730
48, 370
51,172
54,100
50, 576
79. 083
48,412
54,824
53, 675
50, 732
68, 235
87, 444
61,351
53,138
56,490
55, 518
25. 987
30. 238
27,774
20, 045
19, 586
64,073
31,253
37, 274
26, 825
70 2
53 7
55.2
51 7
39 5
28.7
73.3
50.9
70.1
47.5
37,054
36,180
40, 635
49, 226
27,575
22,324
21,418
25,929
12, 249
15,328
57. 2
59.1
1,059,666
1,073,211
1,101, 259
32,054
32.049
31. 959
30, 761
27,464
29,842
23,466
19, 854
19, 324
25,902
22, 621
32, 092
15,701
12. 564
13,689
60 6
55 5
42.7
1,124,596
1,140,113
1,151, 234
1,164, 079
1,182,656
1,210,332
1, 231, 496
1, 245, 327
1, 254, 881
1, 271.643
29,451
24, 199
24,029
23,463
23,438
23,143
16,329
14,920
14,899
14,699
26,991
24,163
20,150
21,410
19, 906
21, 602
21,488
19,374
30,505
29,636 1
15,759
17,510
23, 289
26.887
27, 636
30,169
29,624
31.896
33,778
31,353
40, 840
25.043
28. 579
29,567
27,562
35,704
46,621 1
32.878
30,832
31,202
29,025
16,136
18,717
19,397
13,639
14,118
33,044
18,997
22, 745
18, 279
71 1
64 4
65.5
65.6
49 5
39 5
70 9
57 8
73 8
58 6
FEDERAL
December
New
mortgage
loans
1
STATE
1941: J u n e
December
..__
1942: October
December
1943: J a n u a r y
February.._
March
April
Mav
June__
July
August
September
861
883
1,131,625
1,189,616 1
924
928
931 |
1.312,966 1
1,329,325
1.351,703 |
868,307 1
927,292
1,009,375
1,012,369
938 1 1,363,011 1 1,021,918
_
.
December 1943
1
_..
947
948
951
956
960
967
967
969
971
1.379,150
1,390,280
1,407,633
1,431.232
1,454,920
1,466,582
1,482. 049
1,514,189
1,530,499
1,027,594
1,029,108
1,034,711
1,042,666
1,052,586
1,060,004
1,066,455
1,075.099
1,084,305
103,957
95,281
106,055
140,653
77,773
210,133
87
QUARTERLY TABLES
Table 1 6 . — H O L C — M o r t g a g e loans outstanding
and properties on hand
Table 1 7 — G O V E R N M E N T S H A R E S Investments in member associations 1
[Dollar amounts are shown in thousands]
Due on
original
End of period
[Dollar amounts are shown in thousands]
T y p e of operation
Book value Number
1940: October
1941: October
1942: October
November _
December-
$1,667,296
1,449, 502
1, 236,432
1, 218,869
1, 200, 203
1,180,
1,163,
1,143,
1,123,
1,101,
1, 081,
1, 059,
1,038,
1, 018,
997,
1943: January
February-_
March
April
May
June
July
August
September.
October
Home Owners' Loan
Corporation
Treasury
Properties owned
Due on
property
sold
l
$310,280
358,922
366,427
367, 522
366, 768
$351,890
282,904
231,950
225,448
221, 512
54,433
40,615
31, 594
30, 518
29,876
365,009
363, 287
360,891
358,966
358, 758
360,101
359, 394
361, 356
364, 506
370, 447
218, 083
215,160
211,821
207, 571
199,435
187,952
179,103
165, 667
149, 788
129,005
29,393
29, 032
28,483
27, 864
26, 582
24,935
23, 728
21,943
19,915
15,942
O c t o b e r 1935-September 1943:
Applications:
Number
Amount..
Investments:
Number
Amount
Repurchases
N e t outstanding investments
T h i r d q u a r t e r 1943:
Applications:
• Number
Amount
Investments:
Number
Amount
Repurchases
.. . .
..
Federals 2
Federals
State
members
1,862
$50,401
4, 708
$213,601
997
$66,595
5,705
$280,196
1,831
$49,300
$37,801
$11,499 1
4,241
$178,316
$93,094
$85,222
740
$45,541
$21,391
$24,150
4,981
$223,857
$114,485
$109, 372
o 1
0
0
0
0
0
0
...
$6,049
o.
Total
0
o
0
0
$7, 977
$34,962
0
o
$42, 939
1
Refers to number of separate investments, not to number of associations in
which investments are made.
2 Investments in Federals by the Treasury were made between December
1933 and November 1935.
i Includes reacquisitions of properties previously sold.
Table 18.—FHLBS—Membership in the Federal Home Loan Bank System
[Dollar amounts are shown in thousands]
1943
Number
All m e m b e r s
-
__.__.
S a v i n g s a n d l o a n associations
Federal
.- .__.
Uninsured State
__
June
September
T y p e of i n s t i t u t i o n
-
...
-
.
Assets
Number
Assets
1942
1941
September
September
Number
Assets
Number
Assets
..- -
3,764
$6,199, 087
3,774
$6, 045,016
3,808
$5, 617,500
3,836
$5, 339, 627
-
3, 720
1,471
965
1,284
5, 399, 517
2, 523, 737
1, 508, 558
1, 367, 222
3,729
1,468
956
1,305
5,249,414
2, 426, 079
1, 449,255
1, 374, 080
3,765
1,466
916
1,383
4,924, 055
2, 214,101
1,293,206
1,416,748
3,796
1,459
867
1,470
4, 693,139
2, 076, 618
1,141, 089
1, 475,432
22
434,289
22
428, 566
20
369,146
13
263, 003
22
365,281
23
367,036
23
324, 299
27
383,485
M u t u a l savings b a n k s .
Table 1 9 . — W A R HOUSING—Progress of war-housing construction program
T o t a l allocated to localities
Under construction
Completed
T y p e of c o n s t r u c t i o n
As of Sept. 30, As of M a r . 31, As of Sept. 30, A s of M a r . 31, As of Sept. 30, As of M a r . 31,
1943
1943
1943
1943
1943
1943
Privately
Publicly
financed:l
financed:2
Family units:
Conversion ( H O L C )
New construction3
T r a i l e r s a n d p o r t a b l e s ._
.
-
-
207,160
785,133
185, 709
718, 705
3,070
83, 581
6,525
74, 686
179,303
583, 915
168,508
500,772
159,409
140, 584
28, 884
41, 008
127,059
93, 586
61, 288
500,823
44, 216
43. 503
440; 492
28,173
15,640
91,964
6,793
759
190,432
6,975
5,980
377,621
31, 248
24
224, 573
16,993
i Represents privately financed war housing built with P-55 priority orders plus an estimated 297,000 new units and 175,000 converted units built without P-55
orders. The totals as of March 31, 1943, shown previously in the June 1943 issue of the Federal Home Loan Bank REVIEW, excluded war housing built without P-55
orders.
* Publicly financed new construction excludes suspended, cancelled, andiimited projects. The 11,838 units in limited projects as of September 30,1943 were distributed
as follows: 7,663 family units, 3,969 single-person units, and 206 trailer units. As of March 31,1943, an estimated 24,593 units were in limited projects of which 15,116 were
family units and 9,477 were single-person units.
3 Includes a small number of units in converted projects built by FPHA and other Federal agencies
88
Federal Home Loan Bank Review
FEDERAL HOME LOAN BANK DISTRICTS
M M BOUNDARIES OP FEDERAL HOME LOAN BANK DISTRICTS.
•
FEDERAL HOME LOAN BANK CITIES.
OFFICERS OF FEDERAL HOME LOAN BANKS
BOSTON
CHICAGO
8 . J. ROTHWBLL, Chairman; £ . H. WEEKS, Vice Chairman; W. H.
N BATES, President; H. N. FAULKNER, Vice President; L. £ . DONOVAN*
C E. BROUGHTON, Chairman; H. G. ZANDER, JR., Vice Chairman; A. R,
Secretary-Treasurer; P. A. HENDRICK, Counsel; BEATRICE E. HOLLAND,
Assistant Secretary.
NEW
YORK
GEORGE MACDONALD, Chairman; F. V. D . LLOYD, Vice Chairman;
NUGENT FALLON, President; ROBERT G. CLARKSON, Vice President;
DENTON C. LYON, Secretary; H. B. DIFFBNDERFER, Treasurer.
PITTSBURGH
.^..~—mmmm
E. T. TRIGG, Chairman; C. S. TIPPETTS, Vice Chairman; R. H. RICHARDS, President; G. R. PARKER, Vice President; H. H. GARBER, Sec*
retary-Treasurer; WILLIAM S. BENDER, CounseL
:£&&£& U l i
GARDNER, President; J. P. DOMEIER, Vice President; LAURETTA QUAM,
Assistant Treasurer; CONSTANCE M. WRIGHT, Secretary; GERARD M.
UNGARO, CounseL
D E S MOINES
E. J. RUSSELL, Vice Chairman; R. J. RICHARDSON, President-Secretary;
W. H. LOHMAN, Vice President-Treasurer; J. M. MARTIN, Assistant
Secretary; A. E. MUELLER, Assistant Treasurer; EMMERT, JAMBS,
NEBDHAM & LINDGREN, CounseL
LITTLE ROCK
W. C. JONES, JR., Chairman; W. P. GULLET, Vice Chairman; B. H.
WOOTEN, President; H. D. WALLACE, Vice President-Secretary; W. F.
TARVIN, Treasurer.
WINSTON-SALEM
H. S. HA WORTH, Chairman; E. C. BALTZ, Vice Chairman; O. K. LaROQUE, President-Secretary; Jos. W. HOLT, Vice President-Treasurer;
T. SPRUILL THORNTON, Counsel.
" ., ffrl 8S afi* J
iJ
ClNCINNATIJJ
M^-Ufri
R. P. DIETZMAN, Chairman; WM. MECRUB BROCK, Vice-chairman^
WALTER D . SHULTZ, President; W. E. Juuus^ViceLPresident-Secretary;
A. L. MADDOX, Treasurer; TAFT, STETTINIUS^& HOLLISTER, General
Counsel.
INDIANAPOLIS
H. B. WELLS, Chairman; F. S. CANNON, Vice Chairman-Vice President;
FRED T. GREENE, President; G. £ . OHMABT, Vice President; C. RUSSELL
PARKER,
Secretary-Treasurer;
ALEXANDER, Counsel.
HAMMOND,
BUSCHMANN,
ROLL &
TOPEKA
P. F. GOOD, Chairman; L. W. BAUERLE, Vice Chairman; C. A. STERLING.
President-Secretary; R. H. BURTON, Vice President-Treasurer; JOHN
S. DEAN, JR., General CounseL
PORTLAND
BEN A. PERHAM, Chairman; A. C. BOUCHER, Vice Chairman; F. H.
JOHNSON, President-Secretary; IRVING BOGARDUS, Vice PresidentTreasurer; Mrs. E. M. JENNESS, Assistant Secretary; VERNE DUSBN*
BERY, CounseL
Los ANGELES
D. G. DAVIS, Chairman; HORACE S. WILSON, Vice Chairman; M. M#
HURFORB, President; C. E. BERRY, Vice President; F. Q NOON,
Secretary-Treasurer; HELEN FREDERICKS, Attorney,
@FedFRASER