The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL
HOME
LOAN
BANK
Vol.
11, No. 3
N A T I O N A L HOUSING
AGENCY
John B, Blandford, Jr., Administrator
Washington, D. C
DECEMBER 1944
The Savings and Loan Industry in the Second War Year
67
Let's Get More for Our Housing Dollar
70
The Real-Estate Overhang Continues Its Downward Course
74
Canada Looks to Its Housing
FEDERAL HOME LOAN
BANK ADMINISTRATION
. 7 7
REGULAR FEATURES
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
iLl-liLldil
Worth Repeating
66
Directory Changes of Member, Federal, end Insured Institutions
69
Home Front
79
Honor Roll of War Bond Sales
80
Monthly Survey
83
TABLES
New family-dwelling units
88-89
Building costs
89-90
Savings and loan lending
90-91
Mortgage recordings
91-92
Sales of U. S. war savings bonds
92
Federal Home Loan Banks
92
F H A activity
92
Insured savings and loan associations
93
Quarterly tables
94
• • * WORTH REPEATING * • •
C O N T I N U E D SUPPORT: " T h e r e
have
been m a n y demands m a d e of you in
t h e three long years t h a t we have
been a t war. You have m e t all of
t h e m faithfully a n d generously. If
you are tired now or feel t h a t you
have done your u t m o s t , t h e n think
for a m o m e n t of t h e men in b a t t l e . . .
And t h i n k of their response when they
are asked to go into t h e firing line
again—to find inside themselves new
sources of courage a n d of strength
a n d of endurance.
" O n e indispensable source of spirit
to these men is the knowledge t h a t we
a t home are backing t h e m up with all
we h a v e — w i t h nothing less t h a n t h e
fullest consecration of our wealth a n d
strength. This is our endurance test
as well as theirs."
General George C. Marshall, to
the Honorable Henry Morgenthau, Jr. at Sixth War Loan rally.
BETTER HOUSES: T h e p o s t w a r
house can and m u s t be a better house
t h a n even t h e best prewar house . . .
Building lacks neither t h e ideas nor
the means to carry t h e m out. I t lacks
neither t h e m a r k e t nor t h e public interest. This is not t h e time to 'walk
backwards into t h e future.' "
Architectural Forum, November
1944.
A LARGER ROLE: ' O u r
business
neither locally nor nationally can he
limited to the custody of savings and
their safe investment in home mortgages without some loss to our individual institutions.
Our activity
m u s t extend to a variety of services
in home planning, home ownership,
home security and c o m m u n i t y welfare.
Homes are elements in a community
of m a n y and complex interests involving h u m a n beings of diverse
purposes and habits. In a progressing
society not only are all called upon
to live together agreeably without
destroying the property values of
the other but each is expected to take
some responsibility for advancing the
cultural, business a n d social interests
of the community.
" N o manager of our savings and
loan institution can consider himself
a full-sized executive until he becomes
an active contributing factor in the
whole business t h a t makes home
66
ownership a t t r a c t i v e and secure and
t h a t business today includes comm u n i t y service a t least to t h e extent
of being fully informed of current
developments and their effects on
property values and home ownership.
" T h e r e should be no place in our
business for the comfortable stodgy
person who waits in his office for
saver or borrower to come his way
and leaves t h e m to go theirs when the
transaction is complete. T h e character of our h u m a n needs and the
response already in the making will
relegate such a p a t h y to rapid extinction and only those will count who
take the larger mantle of responsibility.
" M o m e n t a r i l y the war has altered
and restricted our services. Normal
functions have been limited or given
new direction, and we shall continue
to discharge t h e m until the war ends.
When victory is achieved we must be
ready for a larger role."
John H. Fahey, before the
United States Savings and
Loan League, November
13, 1944.
ONE WORLD: " D o m e s t i c considerations should not blind us to t h e fact
t h a t we are now inextricably b o u n d
up with the world politically and
economically. Broadly speaking, productive international t r a n s a c t i o n s
nourish our own economy as well as
those of other countries. Our aim
should be to build t h e kind of international trade t h a t can sustain itself
without draining away reserves from
the countries which need t h e m to the
countries which are surfeited. A
trade dependent on this artificial t y p e
of support would not last long and
even before its collapse would be
harmful to all t h e countries concerned."
Ernest G. Draper, Walter
R. Gardner, Federal Reserve Bulletin. November
1944.
CITIES TODAY: " T h e position and
functions of t h e city in American society have actually undergone a revolution. I t is no longer a question of an
autonomous municipality well governed within its borders. While the
city has been gaining more home rule
in respect to its form of government
and m a n y of its functions, its relations
to s t a t e government have multiplied
in m a n y directions—financial, legal
and operational, for instance.
Furt h e r m o r e new connections with t h e
federal government a n d its n u m e r o u s
agencies have been established . . .
" I t is no longer enough to consider
municipal affairs mainly in t e r m s of
home rule, model charters a n d a u t o n omous forms of government. I n s t e a d
of easing t h e strain of t h o u g h t a b o u t
municipal government, t h e intense
specialization of recent years has intensified it, has raised a new issue."
Charles A. Beard, National Municipal
Review, November 1944.
POST-WAR BOOKSHELF
Although inclusion of title docs not
necessarily mean recommendation by the
Review, the following recent publications
will be of interest.
HOUSING
YEARBOOK,
1944: 176
p p . (Publication No. N19K) Available at $3 from National Association
of Housing Officials, 1313 East 60th
Street, Chicago, 111.
FULL EMPLOYMENT—ITS
POLITICS
AND
ECONOMICS
By
Emerson P. Schmidt. 1944. 23 p p .
Available from C h a m b e r of Commerce
of t h e United States, Washington,
D . C.
PUBLIC
SPENDING
AND
POSTWAR
ECONOMIC
POLICY:
By
Sherwood M. Fine.
x a n d 117 p p .
Available at $2.50 from the Columbia
University Press, New York, N . Y.
POST-WAR
CITIES:
Available
from National Association of Real
Estate
Boards,
1737
K
Street,
N. W., Washington 6, D. C.
PLANNING
FOR
THE
SMALL
AMERICAN
CITY:
An outline of
principles and procedures especially
applicable to the city of fifty t h o u s a n d
or less. By Russell Van Nest Black.
1944. 86 pp. Available a t SI.00 from
Public Administration Service, Chicago 37, 111.
HOUSES
FOR TOMORROW:
By
Thomas
R.
Carskadon.
October
1944. Available at 10c from Public
Affairs Committee, 30 Rockefeller
Plaza, New York 20, N . Y.
Federal Home Loan Bank Review
THE SAVINGS AND LOAN INDUSTRY IN THE
SECOND WAR YEAR
Final 1943 reports of all operating savings and loan associations show
significant changes in many balance-sheet items.
A further strengthening of the liquidity
position featured
the annual
operations,
accompanied by an increased inflow of private capital and a fractional
decline in mortgage holdings.
H
I N spite of the abnormalities of wartime conditions, 1943 proved to be a successful year for
the savings and loan industry. The combined
statement of condition of all operating associations
for last year-end revealed a substantial increase in
assets, a rapid rise in private capital, a phenomenal
growth in liquid assets and a marked improvement
in the reserve position.
At the end of 1943, savings and loan assets stood
at $6,565,000,000—a gain of almost $456,000,000
during the year. This 7-percent increase in total
assets represents the most substantial step made in
any one year on the path back toward the 1930 peak.
Last year's growth in assets exceeded that (5.9)
made during 1941, the last pre-war year.
These data, however, do not tell the full story of
asset growth. In order to get a more realistic
picture, it is necessary to deduct mortgage pledged
shares from the total asset figure. Although these
pledged-share accounts are being displaced by directreduction loans, some associations still hold them for
accumulations against sinking-fund loan accounts.
Adjustment of this bookkeeping offset shows a rise
of $474,000,000 in assets during 1943.
The growth of assets coupled with a continued
decline (due largely to mergers) in the number of
operating savings and loan associations produced a
further substantial gain in the average size of these
institutions. During 1943, the number of operating
associations dropped 5 percent from 6,540 to 6,232.
Concurrently, their average assets rose 13 percent to
$1,053,500 from the $934,000 shown a year ago.
Federal Home Loan Bank System members occupied a position of increasing command in the industry.
In number they increased from 57 to 59 percent of all
operating associations, while their aggregate assets
($5,538,600,000) represented 84 percent of total
industry assets compared with 82 percent in 1942.
The average assets of reporting members amounted to
$1,496,500 in contrast to an average of only $405,700
for nonmembers.
December 1944
Liquidity
For the second successive time, the outstanding
feature of the year was the phenomenal growth in
the investment account. The combined balance
sheet on page 68 shows that the "total investment"
account rose 138 percent to $938,235,000 with the
result that it accounted for 14.3 percent of total
assets. In 1942, investments had increased 115
percent and represented 6.5 percent of aggregate
assets. Indications are that this trend has continued
at a more rapid rate during 1944, with Government
obligations amounting to more than 20 percent of
the assets of FHLB member associations at the end
of the Fifth War Loan.
Last year, for the first time, a breakdown was made
of the various types of investments of all operating
savings and loan associations. This not only provides a more exact picture of the true liquidity
position of the industry but also throws into bold
relief the part played b}7 these institutions in the
ASSET TRENDS IN THE
SAVINGS AND LOAN INDUSTRY
DIVISION OF OPERATING STATISTICS
FEDERAL HOVE LOAN BANK ADMINISTRATION
67
country's war-financing program. Of the total investments of $938,235,000 (shown in the table but
not itemized because of lack of comparative data)
$850,385,000, or 91 percent, consisted of U. S.
Government obligations. This account alone represented 13 percent of total industry assets. The
remaining investments were divided between F H L B
stock in the amount of $56,024,000 and $31,826,000
in other investment securities.
The only other gain in asset items in 1943 was in
the cash account, which, although substantial, did not
compare with the growth of Government bond holdings, nor was it as great as the cash increase recorded
during 1942. At the end of last year, this item
totaled $460,769,000 after a rise of $56,000,000, or
13.7 percent. During 1942, the advance amounted
to 19.3 percent.
A further fractional decrease occurred during
1943 in the mortgage-loan account of all operating savings and loan associations. Although lending activity during the year totaled $1,184,000,000
(only $133,000,000 more than in 1942) the unadjusted mortgage-loan account, as indicated in the
accompanying balance sheet, declined $13,000,000,
or 0.3 percent, in 1943. As a result of this drop to
$4,770,000,000, mortgage loans represented 72.7
percent of assets compared with 78.3 percent in the
previous year. The explanation of this decrease in
the face of increased lending is to be found in the
greatly increased prepayments of loan accounts
occasioned by the high level of individual incomes.
This picture, also, is somewhat altered by taking
into account the shares pledged against loans. An
adjustment for this item indicates that there was a
Comparative statement of condition for all operating savings and loan associations in the United States,
1943 and 1942
[Source: Annual reports of s t a t e savings and 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 t o t a l
assets
Increase or decrease
Amount
Item
ASSETS
Mortgage loans 2
Other loans
Real estate sold on contract
.
Real estate Owned
3
Investments
Cash
Office building
F u r n i t u r e a n d fixtures
Other assets
-Total a s s e t s .
Percent
change
1943
1942
1943
$4, 769, 769
32, 515
179, 855
113, 304
938, 235
460, 769
52, 801
6,929
11,279
$4, 782, 716
41, 489
217, 224
202, 686
394, 291
405, 214
54, 350
8,474
12, 992
Percent
72.65
0. 50
2. 74
1.73
14.28
7.02
0.80
0. 11
0. 17
Percent
78.29 - $ 1 2 , 9 4 7
0. 68
- 8 , 974
3. 39
-27,369
3. 32
-89,382
6 . 4 5 + 534,944
6.63
+ 55,555
0. 89
-1,549
0. 14
- 1 , 545
0. 21
-1,713
- 0 . 27
- 2 1 . 63
- 1 3 . 21
- 4 4 . 10
+ 137.95
+ 13. 71
- 2 . 85
- 1 8 . 23
- 1 3 . 19
6, 565, 456
6, 109, 436
100. 00
100. 00 + 456, 020
-7.46
902
829
992
298
831
287
917
090
290
1.06
76.78
3. 19
6. 44
2.03
0. 60
1. 37
0. 48
8.05
-98,576
2.75
7 3 . 8 0 + 532,215
-17,859
3. 72
6. 57 + 21, 871
2.50
-19,441
0. 54
+ 6,299
1.47
-604
0. 53
-321
8. 12
+ 32,436
-58.71
+ 11. 80
- 7 . 87
+ 5.45
- 1 2 . 72
+ 18. 92
-0.67
-1.00
+ 6.54
6, 109, 436
100. 00
100. 00 + 456,020
+ 7.46
1942
LIABILITIES AND CAPITAL
U. S. Government investments
P r i v a t e repurchasable capital
Mortgage pledged shares
-Deposits and investment certificates
Borrowed money
Loans in process
Other liabilities 4
P e r m a n e n t reserve, and g u a r a n t y stock
General reserves, undivided profits, a n d s u r p l u s .
Total liabilities a n d capital
69,
5, 041,
209,
423,
133,
39,
89,
31,
528,
326
044
133
169
390
586
313
769
726
6, 565, 456
167,
, 408,
226,
401,
152,
33,
89,
32,
496,
1
Excludes state-chartered associations in liquidation (both voluntary and involuntary) when s t a t u s is so reported in t h e
s t a t e supervisors' reports or by other reliable sources.
2
Includes advances a n d accrued receivables, t h e latter principally interest due on mortgages.
3
L u m p sum for investments is shown here because of lack of 1942 d a t a . For t h e 1943 breakdown of this item see discussion
on pages 67 and 68.
4
Includes deferred credits and specific reserves.
68
Federal Home Loan Bank Review
Estimated number and amount of assets held
by all operating savings and loan
associations, 1943 and 1942
[Dollar amounts are shown in thousands]
Assets
Number
Federal H o m e L o a n B a n k
District
1943
UNITED STATES. _
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
1942
1943
1942
6 , 2 3 2 6, 540 $6,565,456 $6,109,436
709, 712
753, 302
348
347
1—Boston
_
797, 064
789, 785
958
826
2—New Y o r k
513, 234
496, 420
1, 198 1,306
3 — P i t t s b u r g h __
735, 351
679, 068
648
645
4—Winston-Salem
841 1, 193, 033 1, 092, 791
826
5—Cincinnati
385, 490
342, 416
325
318
6—Indianapolis
614, 443
573, 520
772
758
7—Chicago
360, 201
330, 492
386
380
8—Des Moines
271, 258
260, 284
312
307
9—Little R o c k
264, 280
251, 895
295
286
10—Topeka.
__ ___
241, 135
160
155
207, 227
11—Portland
436, 665
189
186
375, 826
12—Los Angeles.
relatively small net increase of 0.11 percent which
reflects only a fractional change from the 1942 gain
of 0.07 percent in the mortgage-loan account.
The continued demand for existing residential
property was again reflected in the accelerated
reduction of real estate owned. Following a 38percent reduction during 1942, a further decline of
44 percent last year reduced this account by almost
$90,000,000. At the close of 1943, little over $113,000,000 in owned real estate remained on the books of
all associations. This represented 1.7 percent of
total assets compared with 3.3 percent in 1942.
For the third successive year the dollar volume of
reserves and undivided profits showed an increase.
Last year the gain amounted to more than $32,000,000, or 6.5 percent, compared with gains of 5.7 and
2.8 percent, respectively, in the two preceding years.
By reason of the $528,700,000 in this account at the
end of 1943 and the greatly reduced amount of real
estate owned at that time, for each book-value dollar
of property held there was $4.67 in reserves and surplus. That this represented a substantial strengthening in the reserve position of the industry is evident upon comparison with the two previous years
when this ratio was $2.45 and $1.43, respectively.
Private repurchasable capital increased at a greatly
accelerated pace during 1943. As a result of the
annual excels of new investments over repurchases,
total private capital increased $554,000,000, or 11.3
percent, and topped the $5,000,000,000 mark. The
previous year's increase was 5.6 percent.
December 1944
The most outstanding change on the liability side
of the balance sheet was the 58.7-percent decline in
U. S. Government investments (HOLC and Treasury) in savings and loan associations in contrast to a
drop of only 14.2 percent the previous year. This
1943 decrease, which amounted to almost $99,000,000 brought the total down to $69,000,000. During
1943, borrowings continued to decline although at a
greatly diminished pace. Last year they dropped
12.7 percent ($19,400,000) in comparison with a
decrease of 40.2 percent ($102,700,000) in 1942.
Bank District Picture
A Bank District analysis of the asset picture in
1943 reveals that all regions participated in the overall increase. Associations in the Portland area
again topped the list. Last year, however, their
gain amounted to 16.4 percent in contrast to a 9percent rise in 1942. Los Angeles ran a close second
with a 16.2-percent advance. New York and Pittsburgh, which in 1942 were the only ones to show
composite declines, last year climbed into the lowest
rungs of the increase column with gains of 0.9 and
3.4 percent, respectively. Combined balance sheets
of Little Rock and Topeka associations were the only
others to show an advance of less than 5 percent.
DIRECTORY
CHANGES
OCTOBEB 16-NOVEMBER
15, 1944
Key to Changes
* Admission to Membership in Bank System
^Termination of Membership u\Bank System
#Federal Charter Granted
##Cancelation of Federal Charter
01nsurance Certificate Granted
001nsurance Certificate Canceled
DISTRICT NO. 2
N E W JERSEY:
Trenton:
**Roma Savings and Loan Association, 717 Broad Street Bank Building.
N E W YORK:
New York:
*New York Times Savings and Loan Association, 229 West 43rd Street.
DISTRICT NO. 3
PENNSYLVANIA:
Johnstown:
0Cambria Building and Loan Association, 231 Franklin Street.
DISTRICT NO. 7
ILLINOIS:
Carlinville:
**Carlinville Loan and Building Association.
East St. Louis:
**St. Clair Federal Savings and Loan Association, 517 Missouri Avenue.
DISTRICT NO. 9
TEXAS:
El Paso:
**##00First Federal Savings and Loan Association of El Paso, 315 Texas
Street.
•First Savings and L©an Association, 315 Texas Street.
69
LET'S GET MORE FOR OUR HOUSING DOLLAR
Two obstacles have prevented a comprehensive approach to the
problem of housing-cost reduction. One has been the lack of reliable
data on where the housing dollar really goes; the other, a misunderstanding of the importance of building costs to volume. The NHA
has recently released a study throwing light on both these questions.
•
T H E R E is little argument that housing will be
one of the most important items in our post-war
world. This is true whether the matter is viewed
from the standpoint of the individual who wants a
home, or from the broader angle of the benefits to
our national economy of a large construction program. However, great as our personal and national
needs may be, it will take more than wishful thinking to translate them into reality. Unless building
costs are rapidly and substantially reduced, a great
part of this need may go unsatisfied and a large
portion of the potential demand may vanish.
This conclusion is emphasized in a recent study
prepared by the Technical Division of the National
Housing Agency. The report, based on items of
cost involved in the construction, maintenance, and
ownership of homes, points out that housing costs
have heretofore been so high that only a relatively
small number of families could afford to build.
Furthermore, current costs show no indication that
wartime improvements in building practices can be
expected to bring any substantial price reduction.
On the contrary, it is believed that unless some positive action is taken, housing costs are likely to be
higher than before the war in relation to the prices
of other commodities. Thus, it is concluded that
encouragement should be given all types of research
by private industry for the development of more
efficient building materials and methods, and that
these efforts by business should be augmented by a
Federal research program on the technical aspects of
construction.
Long-time Lag
Very little progress has been made during the last
20 years or so to reduce these costs on a broad scale.
Although there are not sufficient reliable data to showr
conclusively whether housing costs have gone up or
down, there is considerable evidence that, in relation
to the general price level, building costs for comparable houses have actually shown a rise during the last
20 years.
70
On the basis of building permits in 257 identical
cities, the average permit valuation for single-family
houses had decreased 2 percent between 1921 and
1940, whereas the cost of living index (BLS) had
dropped 18.5 percent. These building permit records,
of course, give no indication of comparable quality
or standards over this period, but it is safe to assume
that the 1940 house was smaller than the one built
in 1921.
Specific data which tend to bear out these conclusions are to be found in records of the FHA for
the years 1937-1940. During that time, the average
valuation of new properties insured under Title I I
decreased from $5,978 to $5,199, a reduction of $799.
However, because of the utilization of outlying lots,
the average land cost had dropped $251 during the
same period, accounting for 32 percent of the total
cost reduction. At the same time, the average
number of rooms per house declined from 5.5 to 5.1,
a decrease of 7.3 percent. Thus it can be seen that
almost 75 percent of the reduction in valuation can
be attributed to cheaper land and smaller houses
and not to a reduction in housing costs themselves.
In addition, fewer houses were built with garages in
1940 than in 1937 and more had wood exteriors—
factors which accounted for most of the remaining
decline in valuations.
Basis for Attack
Any effective attack on the problem of cost reduction must be based on a knowledge of the components of this expenditure and their relationship to
each other. The chart on the following page, taken
from the NHA report, gives this information in
concise form. The upper portion presents a breakdown of all the elements which make up the capital
cost of a typical house on a typical lot. The second
box contains an analysis of the monthly expense of
owning a $5,000 home. For the purpose of illustrating the relative effect of a similar percentage reduction in all components of monthly housing costs, the
third part of the chart shows what a 20-percent savFederal Home Loan Bank Review
WHERE THE HOUSING DOLLAR GOES
COST OF HOUSE AND LAND
(Each item expressed as percent of t o t a l cost of house and land)
1.
Cost of
Manufacture
Cost cf Materials at S i t e :
Lumber
Masonry
Concrete and mortar
Plaster, lath and wallboard
Insulation
Roofing
flooring
Millwork
Paint
Finish hardware
Plumbing
Heating
Electrical
Miscellaneous
All materials
4. 19
2.17
1.70
1.31
0.11
0.62
1.35
2.98
0.38
0.29
3.63
0.39
0.39
0.49
20.90
Cost of
Distribution
Cost of
Transportation
4. 64
0.73
0.86
1.54
0.06
0.32
1.02
3.10
0.34
0.29
0.90
0.30
0.40
0,30
14.80
Combined
Profits
Delivered
price
1.60
0.25
0.44
0.96
0.04
0.21
0.34
1.00
0.15
-0.10
0.60
0.14
0.14
0.13
67lO
11.85
3.45
3.33
4.27
0.24
1,25
2.95
7.36
1.41
0.71
5.48
1.42
0.98
1.00
45.70
1.42
0.30
0.33
0.46
0.03
0.10
0.24
0.38
0.04
0.03
0.35
0.09
0.05
0.08
3.90
Cost of Site Construction Labor
Contractor's and Subcontractors' Overhead and Profit
r
Total Cost of House
87.50
5.
Value of Unimproved Land (including profit on land)
6.
Cost of Land Improvements (including profit on improvements)
7.
CAPITAL COST
7.00
5.50
100.00
MONTHLY COST TO OWN
1
(As sumed cost of house and land i s S5,0'X))
1.
I n i t i a l Cash Payments:
Downpayment (90$ mortgage)
Closing fees and commissions
Total cash payments
2.
Monthly Cost for:
•*500
100
*6"o6
First
25 years
Next
year3
] .5
Interest (5*)
$11.31
Amortization (25 years)
15.00
Loss of interest on cash payments (3%) 1.50
Taxes (2%%)
10.42
Hazard insurance (2/10 of 1%)
.83
Maintenance (S-100 per annum)
8.33
Total monthly cost
$47.39
Average for
40 Tears
f5 1.50
10.42
.33
8.33
'21.08
SJ7752
EFFECT ON MONTHLY COST OF REDUCTIONS IN VARIOUS ITEMS
Monthly costs of nousing can oe cut by reducing any one of the following major items:
i n t e r e s t , amortization, taxes, maintenance, or cost of house and land. The r e l a t i v e
effect on monthly costs of a 20;? reduction in each of these items separately, with
a l l other items remaining unchanged, i s shown below. Reductions in two or nore of
the items together will of course have a correspondingly greater effect.
a,1or item and 20% reduction in each
First
25 years
Interest (from 5% to 4*)
Ancrtization (from 25 years to 31^ years)
Taxes (from 2§* to 2%)
Maintenance (from $100 to $80 per annum)
CAPITAL COST (from $5000 to $4000)
«
December 1944
Reduction in monthly cost
Next
Average for
15 years
40 years
5.4*
4.556*
4.4*
3.5*
16.4*
0
0
9.9*
7.9*
4.3*
-6.5*
5.6*
4.4*
11.9*
15.4*
* Represents savings per month over 31> years, term of loan in this case.
71
ing in each would mean. A period of 40 years has
been used as a reasonable estimate of the effective
life of the house.
Two points are made clear by a study of this breakdown. One is that a 20-percent reduction in the
cost of house and land will reduce monthly expenditures of home ownership 16.4 percent in the first 25
years, and 15.4 percent averaged over the life of the
house. This is more than three times the saving that
would result from a like reduction in interest rate.
I t is apparent that the capital cost of a house furnishes the most productive field for effective reduction in the costs of home ownership. This is not to
say that it is the only way, for financing arrangements
are of no small importance and will form the basis of
a separate inquiry by the NHA.
To proceed further with the analysis of the primary item—capital cost—it is necessary to segregate
the charges for land and construction, but the former,
including improvements, makes up only 12.5 percent
of this total. However, this important element
should receive careful consideration. Because rising
land costs might quickly offset any reductions in
building costs, it is the combination of these two
which is important. To insure proper attention to
this, the NHA report recommends that careful study
be given to urban redevelopment proposals to provide w^ell planned neighborhoods and available land
at reasonable prices.
The report further states: " T h e expansion of the
housing market which would result from a reduction
in building costs would create an active demand for
building lots and unless attention is given to the
problem, inflationary increases in urban land prices
might offset an important part of the potential
savings to the consumer, and have the effect of
perpetuating the high cost of housing.'"
"Shell" Is Most Important
By adding the appropriate amount for labor, subcontractor's overhead and profit to the cost of materials for the structural items in a typical house, it
will be seen that the cost of the shell of the house
amounts to approximately 60 percent of the total
cost of house and land. Of the remainder, less than
20 percent goes for painting, installing plumbing,
heating and electrical facilities; the rest is absorbed
by the contractor's overhead and land costs.
Thus, by far the major part of the cost of a house
is in the structural shell, the very area where the
least technical change has occurred. Walls, partitions, roofs and floors are still built of many indi72
vidual layers and many thousands of pieces. For
example, the exterior wall of a modern wood-frame
house is composed of 14 individual layers, each
separately produced, handled and manually applied.
The report points out that, to date, even the various systems of prefabrication have produced similar
layer and piece types of wall construction and that,
in spite of the advantages gained by their more
efficient assembly, savings so far effected have not
been great enough. In many instances they have
been offset to some extent by transportation charges.
Why so Costly?
There are a number of reasons why housing costs
are so high. Fundamentally, it is because " t h e
building industry has not kept pace with most other
industries in the development of new and more efficient techniques of organization, production and
distribution. Although certain new materials and
methods have been introduced . . . in recent years,
there is considerable evidence to indicate that most of
the changes have improved the quality of houses only
by increasing their cost, and that low costs have been
possible only by reducing the size and quality of
houses."
A further cause has been the tendency for prices of
building materials to rise higher than prices of other
commodities during periods of prosperity, and to
recede less during depressions. Between 1921 and
1940, a period which covers a complete economic
cycle, building material prices declined only 2.6
percent whereas the prices of all commodities dropped
19.4 percent.
Restrictive practices common to the building trade
have also tended to keep costs high. Common among
those are building codes, which, although they serve
a necessary purpose for health and safety, all too often,
prevent the rapid introduction of new materials and
methods and require more expensive construction
than is necessary. These, to a degree, are receiving
increasingly wide attention l through local revisions,
development of performance standards and flexibility
provisions based on experience with wartime construction. However, a great deal of code revision
remains to be done.
Other reasons for the continued high cost of housing stem from the essentially small-scale character of
the building trade and its uncertain and seasonal
volume of work. Distribution of supplies in this
industry has fallen far behind the streamlined
i See "Building Codes—Present and Future," F H L B REVIEW, March 1944,
p. 157.
Federal Home Loan Bank Review
methods adopted in many other businesses. Materials frequently must pass through traditional
channels—including both wholesaler and retailer—•
rather than be shipped directly from the manufacturer to the contractor. Reference to the chart
will show what this does to the total cost of home
ownership.
Then too there is the matter of labor charges. The
tight employment situation during the war has
forced a partial abandonment of restrictive labor
practices which have required that work be done in
the traditional manner, in some cases without the aid
of labor-saving devices and frequently by more people
than necessary. Even if these improved practices
continue, there is still the seasonal character of
building employment to be considered. Hourly
wages are high (up 42 percent from 1921 to 1940).
However, this high expense, which amounts to 29.5
percent of capital cost, is due to the fact that many in
the building trades, including both employees and
contractors, cannot normally be sure of more than
150 days of work during a year.
Pointing the W a y
A partial alleviation of the cost situation and some
indication of what might be accomplished on a more
inclusive scale are to be found in the results of
techniques employed in many large housing projects
which have demonstrated that maintenance costs
can be reduced by systematic organization. By
leveling off the peaks and valleys characteristic
of this type of work, it has been found possible to
employ labor on a year-round basis. The advantage
to labor of an assured annual income has frequently
resulted in the establishment of incentive wage rates
at a scale as much as 30 percent below the regular
hourly rate. In addition, large-scale operation has
permitted quantity purchase of materials at better
unit prices than can be obtained on small orders.
All this, of course, means an ultimate saving to home
owners.
The report suggests the possibility of some such
organization in the building industry itself. For
instance, group maintenance with an insurance
policy to cover home maintenance and repair might
operate in a way similar to the American Automobile Association in registering selected local concerns
which would do the work at a discount. "Such an
operation would become more attractive to the home
owner if the plan were operated on a mutual basis
with a part of the profits returned as dividends on
the maintenance policy according to the amount of
December 1944
619469—44—2
service required by a particular owner . . . Ultimately the goal is probably to develop building
organizations which will not only build the house,
but will also undertake to maintain the property at
an agreed upon monthly or annual charge."
That the developments necessary to bring about
lowered housing costs might eventually work themselves out is, of course, quite possible. However,
we cannot afford to wait. Too much is at stake in
the immediate future to allow nature to take its
course. When it is considered that even in 1941, a
high income year, 57 percent of all nonfarm families
earned less than $2,000 a year and thus could not
afford a house costing more than $4,000, it is easy
to see why the greatest potential demand has been
found in the low cost field.1 The fact that only 21
percent of the houses insured by the FHA under
Title I I in 1941-1942 were valued at less than $4,000
substantiates the conclusion that this need, far from
being met, is still the greatest factor in potential
demand. 2
This is not to say that at continued high costs no
great amount of post-war building will be done.
Much construction undoubtedly will be started as
soon as possible but a reduction in costs will increase
that volume to one that is more nearly adequate
to meet our social and economic needs. I t will also
serve another equally useful purpose. The study
points out that an important relationship appears to
exist between excessive housing costs and the high
rate of foreclosures which has occurred at fairly regular intervals in the past. If people are obliged to
overextend themselves in high income periods, their
future possible loss of equity during times of restricted income is bound to add to normal business
hazards which cause foreclosures.
Limits of this Summary
This article can by no means cover the complete
scope of the NHA study of housing costs. I t is
designed only to touch the more outstanding aspects
of the problem and to give, in broad outline, the
bases for the conclusion that only through a comprehensive and aggressive technical research program,
undertaken promptly, with the cooperation of private business and Government, can a large volume
of residential construction become a sound and
substantial factor for the social and economic wellbeing of the nation.
i See "A Survey of Post-war Demand for Homes," F H L B REVIEW, November
1944, p. 40.
2 See "After the War, What Will We Need in Housing?" FHLB REVIEW,
November 1944, p. 41.
73
THE REAL-ESTATE OVERHANG CONTINUES ITS
DOWNWARD COURSE
The prospects that lending institutions will face the post-war years
with a relatively clean slate in the volume of residential real estate
owned is coming nearer to reality. Last year the principal mortgagelending institutions reduced their holdings to a new low level. Preliminary indications are that the amount of residential property
owned is still going down.
•
T H E effect of continued war production on the
real-estate market is well exemplified by the rapidly declining volume of residential property held by the
principal mortgage-lending institutions of the country. Following in the wake of a market already on
the upswing from depression levels, the unprecedented demand for housing which has accompanied
war production has resulted in a shrinkage of the
total real-estate overhang to comparatively low proportions. Existing houses have been at a premium
and the increased purchasing power generated by
the huge production program of the past few years
has added greatly to the volume of sales.
Another important factor in this respect has been
the disposition on the part of management to take
advantage of the sellers' market and remove many
of the slow assets from their balance sheets, even if
it has in some cases represented a loss from original
book values. Also, at the same time that more
properties were being cleared from the books of these
lending institutions, fewer were being added because
of the exceedingly low rate of foreclosures which has
accompanied improved economic conditions. (During 1943 foreclosures dropped 39 percent following a
28-percent decline the year before.)
The data on which this study is based, while
they provide a reliable measure of yearly trends,
do not include the entire field of residential property
owned by all mortgage lenders. Estimates presented
here do not cover real estate foreclosed and owned
by individuals, closed banks and other closed institutions, mortgage companies, trust departments of
banks and fiduciary institutions or by tax authorities.
Data relative to the holdings of this group are not
available.
Reference to the following table will show that for
the period from December 31, 1942, through December 31, 1943, of all mortgage-lending institutions, the
Home Owners' Loan Corporation registered the
largest percentage decline in real estate owned.
At the end of 1942, HOLC holdings totaled $221,000,000. By the end of 1943 its holdings had been
reduced to $94,000,000, a decline of 57.5 percent.
Among the private lending institutions, savings and
loan associations were first in percentage reduction of
overhang. Their holdings at the end of last year
Estimated volume of residential properties
held by selected financial institutions
[Dollar amounts are shown in millions]
Recent Over-all Record
As a result of these conditions, the estimated book
value of residential real estate owned by savings and
loan associations, mutual savings banks, commercial
banks, life insurance companies and the Home
Owners' Loan Corporation declined to $550,000,000
at the close of last year from $946,000,000 in 1942,
a drop of $396,000,000, or 41.9 percent. Although
in dollar amount this was considerably less than the
known record reduction of $490,000,000 in 1941,
percentagewise it was the greatest annual decline.
Since 1938 the over-all drop in the real-estate overhang has amounted to 79.1 percent from the
$2,628,000,000 carried on the books at that time.
No reliable data are available for prior years.
74
Dec. 3 1 , Dec. 3 1 , P e r c e n t
1942
change
1943
T y p e of i n s t i t u t i o n
H o m e Owners' Loan Corporation__
Savings a n d loan associations
M u t u a l savings b a n k s 2
Commercial b a n k s 3
Life insurance companies 4
T o t a l p r i v a t e holdings
J
$94
113
81
49
213
456
r
$221
-57. 5
* 203
142
85
295
-44. 3
-43.0
-42.4
-27. 8
'725
-37. 1
r
r
1
Revised.
Based on reports of operating associations, received by FHLBA.
2 Based on reports of the Comptroller of the Currency and of state supervisory
authorities.
s
Based on reports of the Comptroller of the Currency and of the Federal
Deposit Insurance Corporation. Estimates exclude trust departments of such
banks
* Estimates of the FHLBA based on a questionnaire survey of the largest life
insurance companies. Excludes investment housing projects.
Federal Home Loan Bank Review
totaled $113,000,000, a decline of 44.3 percent from
the $203,000,000 at the end of 1942. Mutual savings
banks, after a reduction of 43 percent in 1943, held
an estimated $81,000,000. Commercial banks, on
the basis of a 42.4-percent decline, showed a balance
of $49,000,000. Life insurance companies, which
still hold the largest amount of residential real estate,
again showed the smallest percentage drop—27.8.
For the period from December 31, 1938, through
December 31, 1943, the percentage reduction in the
amount of real estate owned by the Home Owners'
Loan Corporation amounted to 80.8 percent. During the same period the percentage reduction in the
combined amount of real estate owned by private institutions amounted to 78.7 percent.
State and Area Data
Savings and loan associations, the only type of
private lending institution on which state data are
now available, showed an almost universal reduction in the volume of residential property owned.
Over half (57.8 percent) of the total real estate
owned by operating savings and loan associations is
still concentrated in four states—Ohio, Pennsylvania, New York and New Jersey. However, substantial progress was made in the disposition of their
repossessed properties which, in the first three states,
amounted to one-third less at the end of 1943 than
they had at the same time the previous year. New
Jersey reported a reduction of almost two-thirds in
total residential holdings during this period.
In
connection with this remaining concentration of
property holdings, it should be pointed out that
these same four states accounted for 34 percent of
the outstanding balance of $4,554,000,000 in residential mortgages held by savings and loan associations.
On a Bank District basis, the contractions ranged
from 23 percent in the Portland region to 51 percent
in Indianapolis and New York. In only four Bank
Districts—Portland, Pittsburgh, Cincinnati and Chicago—was the composite decline less than 40 percent.
A comparison with the 1942 minimum rate of decline
(12 percent) shows the acceleration experienced during last year.
Current Indications
Complete coverage on 1944 trends in the real-estate
overhang is not yet available. However, on the
basis of evidence at hand, it would seem that a
further decline might be expected. The underlying
conditions which have caused the steep drop of
recent years have not been materially altered. The
December 1944
housing shortage is still acute in many places. Annual income remains high and a further drop of 35
percent in foreclosures was reported during the first
six months of the year.
One indication of a continued decline in 1944 is
the record of insured savings and loan associations.
Between December 31, 1943 and June 30, 1944, these
insured institutions reported a further decline of
21.7 percent to a total of $33,000,000. HOLC experience adds to the evidence that the real-estate
overhang is becoming even less of a problem during
the current year. By the end of June, real-estate
holdings of this organization had decreased by another 63 percent since December 31, 1943, and stood
at only $34,800,000.
Just what the remaining war years and those of
the ensuing peace may mean in terms of the realestate market is, at this stage, anybody's guess.
However, it is safe to say that the principal mortgagelending institutions of the country will come close
to " starting from scratch" in the matter of overhang.
IN MEMORIAM
•
T H E Federal Home Loan Bank System
suffered the loss of one of its long-time
leaders in the recent death of Mr. Milford M.
Hurford, President of the F H L Bank of Los
Angeles.
Mr. Hurford was one of the original officers
of that Bank, having served as Vice President
and Treasurer prior to his appointment as
President in 1934. He had been active in real
estate and in the savings and loan field since
1923, coming to the Bank from the California
State Building and Loan Commissioner's Office.
A veteran of World War I, Mr. Hurford received a three-year certificate from the University of California prior to his entry into the
Army. In 1931 he was awarded the first certificate issued by the American Savings and
Loan Institute for completion of a five-year
course of study. Always active in work related
to his Bank interests and intensely loyal, Mr.
Hurford was one of the organizers and leaders
of the Los Angeles Residential Research
Committee.
He is survived by "his widow and three sons,
one of whom is in the service in India.
75
APPROVED
NATIONAL
NATIONAL
HOUSING
HOUSING
HOME
ADMINISTRATION — OTTAWA, CANADA
ACT — DESIGN NO. 5 0 2
24.6
GROUND FLOOR PLAN
SECOND FLOOR PLAN
At the foot of the page is one of
a variety of minimum cost designs
which may be built either with or
without a basement. Homes in
the minimum-cost bracket ordinarily have a frontage of 24 feet
and a depth of 28 to 33 feet. Floor
plans usually provide for a kitchen
adjoining the living room and
include two or three bedrooms. A
choice of three exterior finishes is
provided for this house—brick
veneer, frame or solid brick.
76
DESIGNS
MINIMUM
COST
The houses appearing on this page are
but two of the many types of design
approved by the Housing Administration for construction in accordance with
the terms of the Canadian National
Housing Act. Working drawings for
homes of approved design are obtainable
from the Administration for the sum of
$10. They consist of four sets of blueprints and four National Housing Memorandum Specifications to be filled in by
the owner and the builder.
On the left is the drawing for a one-andone-half story house in the low cost field.
Square in plan, this unit is well proportioned, plain and economical in design.
Although cost has been kept to a minimum, all of the features of good planning
and essential accomodation for a family
of moderate size have been maintained
without waste space.
Construction is not complicated and
stock materials can be used without cutting or waste. Exterior finish may be of
either frame, stucco or brick.
The ground floor is arranged as a selfcontained living establishment so that
the upper floor may be left unfinished for
future completion according to the needs
of the owner.
HOUSE
£>t.o R. o o/v\
1
•» • • 3
4~
i§H
| * — " ^ *|STOR.A<3t
•
NATIONAL HOUSING ACT
DESIGN NO. 3 6 !
Federal Home Loan Bank Review
CANADA LOOKS TO ITS HOUSING
In Canada, as in the United States and other countries, planning for
a high level of post-war employment is placing special emphasis upon
the construction industry. Another important step was taken in the
development of these plans when the National Housing Act of 1944
was passed, extending and enlarging upon previous legislation to
stimulate a greater flow of home credit and other assistance in
residential construction.
•
R E C E N T L Y the Canadian Parliament approved the National Housing Act of 1944 to
buttress a vast new social service plan by assuring
adequate credit and assistance for home building in
the post-war period. This Act, which carries forward the more successful features of the Canadian
housing measures of the thirties, enlarges upon previously authorized appropriations for a joint participation by the government with private lenders in
home construction and purchase loans to prospective
owner occupants. Also, the Act revives in enlarged
and somewhat different form an unused and expired
appropriation to eu courage similar activity with
respect to the construction of low-rent housing projects and contains special provisions for rural housing. In addition to the augmentation of private
capital with public funds, the Minister of Finance is
empowered to stimulate the flow of private investment by the partial guaranty of new construction
loans and a complete guaranty of credit for home
repairs. This latter aspect is similar in general principle to the service performed by the Federal Housing Administration in the United States. Also, as
in this country, the government, by virtue of its
interest in the loans, is granted certain authority
with regard to construction standards and loan
valuation of mortgaged properties.
Under the new legislation, appropriations for government participation in joint loans and other assistance to housing total $275,000,000. In addition to
loan participation and guaranty this sum is also intended to cover grants to communities as an aid in
the acquisition of slum properties and the guaranty of
returns to life insurance companies on the operation
of low-rent projects, all for the purpose of touching
off a three-billion-dollar housing program as soon as
materials and manpower become available.
One of the significant features of the law is the
importance which it attributes to community planning and research with respect to housing. Under
its terms the Minister of Finance (acting through the
National Housing Administration) is responsible for
December 1944
investigations of housing conditions throughout the
country and for the "distribution of information
leading to the construction or provision of more
adequate and improved housing accommodation and
the understanding and adoption of community plans
in Canada." However, collection and dissemination
of information concerning planning are not to be
restricted in scope to the community as a unit, but
are to include the underlying land and regional planning as well. As a part of this general program,
which is to be carried out in cooperation with provincial and local governments, the Minister is
directed to take such steps as appear advisable to
further training "in the construction or designing of
houses, in land planning or community planning or in
the management or operation of housing projects."
Legislative Antecedents
As indicated by the record of Canadian legislation
with respect to housing over the past quarter of a
century, the owner occupant has played what seems
to be the dominant role in the economy of residential
realty. In this respect, Canada is not unique, for
in our own country we have such statutes as the
Home Owners' Loan Act of 1933 and the National
Housing Act of 1934, both designed largely for the
security and promotion of ownership. The emphasis which is particularly striking in Canadian
legislation is to be found in the public-housing action
taken at the turn of the twenties under the War
Measures Act. To meet an acute housing shortage
which was then regarded as "one of the elements of
postwar unrest/' loans were authorized to provincial
governments for allocation to municipalities in need
of funds for new home construction. However, the
building which took place was intended for ownership rather than as low-rent accommodation.
I t was not until 1935 that Canada took another
major step in the field of housing legislation. Then,,
in the midst of economic depression, Canada adopted
the Dominion Housing Act, the first forebear of the
lawT of 1944. This measure established the precedent
n
for the joint participation of government and private
lending institutions in the mortgage-credit field.
Under this Act the Canadian government advanced
up to one-quarter of an 80-percent home loan,
receiving interest at the rate of 3 percent on its share.
The interest paid by the borrower was established at
5 percent with a maximum term of 20 years for
monthly amortization payments.
The year 1937 saw another addition to Canada's
housing laws with the passage of the Home Improvement Loans Guarantee Act. This enabled individuals to obtain up to $2,000 by unsecured advance
from private lending institutions, the government
guaranteeing against losses up to 15 percent of the
aggregate amount loaned. Again the next year,
further steps were taken with the adoption of the National Housing Act of 1938, superseding the earlier
Dominion Housing Act. Part I, relating primarily
to home ownership, continued the loan procedure of
the earlier legislation with some changes. Important
among these was the enlargement of the loan-tovalue ratio to 90 percent on low-cost units. As an
indication of the success of this legislation, it was
reported in June 1944 that the government allotment had provided more than $76,000,000 in home
mortgages with a loss of but $722. Also, a marked
downward trend in the average size of the loans
revealed a growing utilization of these credit opportunities by low-income borrowers.
The Act of 1938, however, was not confined solely
to assistance for owner occupants, for there had
been growing concern about the need for low-rent
accommodations. Part I I authorized the extension
of 80-percent loans to limited dividend companies
and 90-percent loans to municipalities to encourage
this type of construction. As a special inducement
to private capital, credit to limited dividend organizations was extended at an interest rate of 1% percent
as compared with the 2 percent charged where the
construction was to be undertaken by a local public
authority. Largely due to an inability to secure
provincial enabling legislation and to the advent of
the war, the $30,000,000 set aside for operations
under this part of the Act was unused when the
section expired in the spring of 1940. The third
part of the law also lost its effect at that time.
This had provided special measures for local taxcompensations by the federal government to municipalities which would furnish cheap building land for
low-cost residential construction. The third section,
like the first part of the law, had been intended for
the assistance of prospective owner occupants.
78
Status of Funds
Immediately prior to the passage of the National
Housing Act of 1944 the condition of appropriated
funds was somewhat as follows: $25,000,000 which
had been set aside for joint construction and homepurchase loans to home owners was almost entirely
committed; $50,000,000 authorized under the Home
Improvement Loans Guarantee Act had been exhausted in the fall of 1940 when operations under
this Act were suspended due to the war; and the $30,000,000 appropriated by the law of 1938 for the encouragement of rental construction had expired unused. Thus, there was a total of $75,000,000 in
appropriations largely employed in home-credit
investments to which the new law adds $275,000,000.
Of this amount, $20,000,000 has been tagged for
grants to municipalities for slum clearance and rehabilitation purposes, while $5,000,000 is available for
the encouragement of experimental production of
house components and equipment. Thus, that portion of the fund available for further government
participation with approved private lenders and for
guaranty purposes now stands in the neighborhood
of $250,000,000.
The new legislation continues the earlier provisions of the Act of 1938 upon even more liberal terms
than before. For instance, the maximum ratio to
value on loans to prospective owner occupants for the
purchase of homes is revised to allow 95 percent on
the first $2,000 of lending value, 85 percent on the
second $2,000 and 70 percent on value in excess of
$4,000. The maximum interest rate is set at 4%
percent. According to the Act, the authority to make
these loans to owners and to pay any future losses,
including any on loans closed under the Dominion
Act and the National Housing Act of 1938, is established at $100,000,000. The guaranty under Part I
covering loans to owners, and that under Part I I
which pertains to rental-project loans, is limited to 15
percent of the investment which has been made by
the private lender.
The second part of the new law is in some respects
a resurrection of the rental housing section of the law
of 1938 on an expanded scale, providing $50,000,000
for loan and guaranty purposes, including the assurance of a net return of 2)4 percent to life insurance
companies on the operation of low- and mediumrental projects.* However, the interest rate on loans
to limited dividend companies is somewhat higher
than under the earlier law, being set at not more than
3 percent. As an offsetting factor, though, the loan
(Continued on p. 93)
Federal Home Loan Bank Review
nim
New methods of
taxation
An interesting twist t o taxation is
the monthly p a y m e n t plan adopted by
Stockton, California.
This new arrangement decreases municipal shortterm borrowing for funds, a n d makes
it easier for t h e property owner t o
keep up with his taxes. Similar
methods of paying as you go have been
used successfully b y five other cities.
Another innovation in t a x methods,
expected to play a major p a r t in financing a long-term post-war rehabilitation program, has been instituted b y
West Palm Beach, Florida.
Voters
have approved a t a x on utilities, t o
apply t o sales of electric, gas, water
a n d telephone services. T h e t a x will
be added t o monthly bills—10 percent
on a m o u n t s up to $25, 5 percent on t h e
next $50 a n d 1 percent on any charge
over $75. I t is estimated t h a t each
family will pay from 75 cents t o $1.50
a month. The new levy will bring in
an expected $175,000 a year.
Nature of insurance
purchases changes
The comparison of t h e results of two
surveys, both made by the Life Insurance Sales Research Bureau, one in
1942 and one at midyear 1944, points
up some interesting shifts and changes
among t h e purchasers of life insurance.
Estimates of ordinary life insurance
bought place the probable total a t
$8,000,000,000 by the end of this year,
an increase of 26 percent over t h e 1942
figure of $6,332,000,000.
The rise in purchases by women
comprises the greatest change. This
year women are buying 83 percent
more than they did in 1942, accounting
for 35 percent of t h e sales to adults at
midyear, compared with 25 percent in
the earlier year. Juvenile insurance
sales have risen almost as much, 80
percent since the 1942 survey. T h e
majority of t h e juvenile policies, 83
percent, were for $1,000.
A decrease in purchases by men
aged 18 to 29 reflects t h e departure of
men in this age group for t h e armed
forces. T h e purchases in this classi-
December 1944
H
II
TP "ITU
H \U | l
jy I Jl
fication dropped from 45 percent of t h e
t o t a l number of male purchases in
1942 to 21 percent in mid-1944.
However,- t h e $121,000,000,000 of
National Service Life Insurance bought
by t h e armed services must be considered in t h e discussion of this factor
in t h e whole insurance picture. T h e
age group of 30 to 37 years increased
their purchases from 26 percent of t h e
total in 1942 to 32 percent this year.
These men were within draft age, a n d
at the time of t h e 1944 survey were not
certain about their future. T h e ageclassification of 38 a n d over increased
their purchases from 23 percent in
1942 t o 37 percent in 1944, while t h e
15 to 17 year-olds brought their buying
up from 6 percent in 1942 to 10 percent
this year.
N A R E B real-estate
market survey
Recently t h e National Association
of Real E s t a t e Boards announced the
findings of its forty-third semi-annual
survey of t h e real-estate m a r k e t .
About 84 percent of all cities reported
advancing prices on residential properties over the past 12 months, with
the median rise being about 13 percent above last year.
An increased volume of transfers
was indicated by about 63 percent, and
7 percent showed declines. T h e 8percent drop reported by war-production centers is attributed to the downward movement of this type of industrial activity.
Although the survey indicates a
wider spread for the housing shortage
t h a n existed six months ago, the situation was less acute from a q u a n t i t a tive standpoint. About 95 percent of
all reporting cities indicated a deficiency of housing as compared with
93 percent in the preceding survey.
On the other hand, the shortage expressed as a ratio to each one thousand
population was 6.8 single-family houses
and 2.8 a p a r t m e n t units as compared
with 8 houses and 3 a p a r t m e n t s six
months earlier.
Property deterioration was another
disturbing item upon which the survey
focused attention. Eight out of ten
cities indicated a lag of 25 percent in
normal repairs and maintenance, while
one-fourth reported between 25 and
50 percent of normal.
H o l d your sains
in thrift!
National Thrift Week 1945, beginning with Benjamin Franklin's birthday on t h e seventeenth of J a n u a r y ,
and continuing through the twentythird, is the time for individual budget
check-ups, t h e National Thrift Committee has announced. A budget
analysis, "simple as A B C " is recommended—A for All Necessary Expenses, B for Basic Savings for N e t
Gain (including Avar bonds, saving accounts, home ownership, savings and
loan shares, insurance, etc.) and C for
Cash (for miscellaneous, entertainm e n t a n d t h e like.)
T h e Committee believes that, aware
of the danger of inflation, t h e American
people will combat it by holding war
bonds until m a t u r i t y , and continuing
their savings gains. T h e Budget
Check-up is intended to assist in the
control of current finances in order to
maintain the wartime rise in savings.
Sample census
survey to be made
M a n y groups, industrial a n d commercial as well as Government, have
found numerous needs for up-to-date
information on population.
In t h e
rapid shifts of t h e past decade and a
half, t h e usual methods of estimating
changes in population have been of
limited use. D a t a on shifts, and on
t h e characteristics of various classes,
such as t h e number of unemployed, of
women working, and of persons in different age-sex or occupational groups
are constantly required. The survey
m a y be extended to provide other
types of information, such as rental
levels, d a t a on housing and housing
facilities, and other particular varieties
of statistics.
In order to fill these needs, t h e
Bureau of t h e Census has evolved a
(Continued on p. 95)
79
HONOR ROLL OF WAR BOND SALES
•
T H E Sixth War Loan is drawing to a close as
we enter the fourth year of war. Any illusions
of an easy victory have been dispelled and a number
of munitions plants are re-opening to replenish
supplies consumed at an unprecedented rate. On
the home front this means a continuation of the
urgent need for the utmost general support of the
Treasury's program for financing the war.
The quota for the present drive is somewhat lower
than that set for the Fifth War Loan. The need
for borrowing at this time, though, is as impelling
as it was before. The report of savings and loan
activity in the purchase and sale of Government
securities in the Sixth War Loan, which includes the
months of November and December, will be published in the February issue of the R E V I E W , together
with the Honor Roll. I n order to cover the Sixth
War Loan as a whole, no Honor Roll will be published
for November.
October Record
Sales and purchases of war bonds and stamps
totaling $33,671,000 were reported by 2,397 reporting members of the Federal Home Loan Bank System
for the month of October. This represented a
fractional rise above the total sales and purchases
of the preceding month, which, although small, was
a reversal of the previous tendency of this activity
to decline steadily in the months between war bond
drives.
A total of 92 members reported sales to individuals
in excess of 1 percent of assets, thereby qualifying
for the Honor Roll listed below.
NO. 1—BOSTON
Windsor Federal Savings and Loan Association, Windsor, Vt.
NO. 2—NEW YORK
Berkeley Savings and Loan Association, Newark, N. J.
Cranford Savings and Loan Association, Cranford, N. J.
May wood Savings and Loan Association, May wood, N. J.
Ridgewood Savings and Loan Association, Ridgewood, N. J.
NO. 3—PITTSBURGH
Brentwood Federal Savings and Loan Association, Brentwood, Pa.
First Federal Savings and Loan Association, Logan, W. Va.
Montour Valley Savings, Building and Loan Association, Imperial, Pa.
Our Home Building and Loan Association, Philadelphia, Pa.
St. Edmond's Building and Loan Association, Philadelphia, Pa.
United Federal Savings and Loan Association, Morgantown, W. Va.
Willow Grove Federal Savings and Loan Association, Willow Grove, Pa.
Atlantic Federal Savings and Loan Association, Baltimore, Md.
Bartow Federal Savings and Loan Association, Bartow, Fla.
Bohemian-American Building Association, Baltimore, Md.
First Federal Savings and Loan Association, Cordele, Ga.
First Federal Savings and Loan Association, Decatur, Ala.
First Federal Savings and Loan Association, Forest City, N. C.
First Federal Savings and Loan Association, Jasper, Ala.
Fort Hill Federal Savings and Loan Association, Clemson, S. C.
Hamlet Building and Loan Association, Hamlet, N. C.
Home Building and Loan Association, Spray, N. C.
Lexington County Building and Loan Association, West Columbia, S. C.
Mutual Building and Loan Association, Martinsville, Va.
Randolph County Federal Savings and Loan Association, Cuthbert, Ga.
Tifton Federal Savings and Loan Association, Tifton, Ga.
$ 3,000
2,500
2,000
1,500
NO. 5—CINCINNATI
Citizens Building and Loan Association, Coshocton, Ohio
Citizens Federal Savings and Loan Association, Dayton, Ohio
Fidelity Building Association, Dayton, Ohio
First Federal Savings and Loan Association, St. Bernard, Ohio
Fulton Building and Loan Association, Fulton, Ky.
Hickman Federal Savings and Loan Association, Hickman, Ky.
Home Federal Savings and Loan Association, Cincinnati, Ohio
Linwood Savings and Loan Company, Cincinnati, Ohio
McKinley Federal Savings and Loan Association, Niles, Ohio
1,000
500
r f l T t f i 1111 ii 1 n h i i
m i l l t.i.Lui.
1941
Honor Roll
NO. 4—WINSTON-SALEM
WAR SAVINGS BONDS
80
The October gain in sales and purchases combined
resulted from a better than 3-percent growth in
purchases by members for their own accounts which
totaled $23,315,000, offsetting a decline of almost 12
percent for sales to others. Sales for the month aggregated $10,356,000. This activity raised the cumulative total of sales and purchases reported by member
institutions since January 1, 1943 to $2,328,872,000.
Government securities held in the portfolios of
reporting members amounted to $1,194,093,000, or
21.9 percent of assets. Among the savings and loan
associations, Federals showed a ratio of investments
to assets of 21.3 percent; insured state-chartered associations, 19.8 percent; uninsured member associations, 19 percent; and savings banks, 38.1 percent.
1942
1943
1944
NO. 6—INDIANAPOLIS
Alexandria Building and Loan Association, Alexandria, Ind.
Griffith Federal Savings and Loan Association, Griffith, Ind.
Industrial Savings and Loan Association, East Chicago, Ind.
Federal Home Loan Bank Review
Logansport Building and Loan Association, Logansport, Ind.
Peoples Federal Savings and Loan Association, East Chicago, Ind.
Peoples Federal Savings and Loan Association, Monroe, Mich.
Peoples Federal Savings and Loan Association, Royal Oak, Mich.
NO. 7—CHICAGO
Central Federal Savings and Loan Association, Milwaukee, Wis.
First Calumet City Savings and Loan Association, Calumet City, 111.
General Sowinski Building and Loan Association, Cicero, 111.
Guaranty Building and Loan Association, Milwaukee, Wis.
Hales Corners Building and Loan Association. Hales Corners, Wis.
Haller Savings and Loan Association, Chicago, 111.
Harvey Federal Savings and Loan Association, Harvey, 111.
Kinnickinnic Federal Savings and Loan Association, Milwaukee, Wis.
Lawn Manor Building and Loan Association, Chicago, 111.
Lombard Building and Loan Association of DuPage County, Lombard ,[111.
Mt. Vernon Loan and Building Association, Mt. Vernon, 111.
Narodni Savings and Loan Association, Chicago, 111.
New London Savings and Loan Association, New London, Wis.
Peoples Savings and Loan Association, Milwaukee, Wis.
Prairie State Savings and Loan Association, Chicago, 111.
Reliance Building and Loan Association, Milwaukee, Wis.
West Highland Savings and Loan Association, Chicago, 111.
This first loan to be closed under the Servicemen's
Readjustment Act of 1944 bore the full guaranty of
$2,000 allowed and covered the purchase of a home
in Hyattsville, Maryland. The purchase price of this
property was $9,500 and a $2,000 cash down payment
was made by the buyer.
Ttenaaw Po*a» isct
U N I T E D S T A T E S O F AMERICA
Haas* <gitarattig Certificate
VETERANS ADMINISTRATION
9iLGol«abla.
JSaxlaga....aid
NO. 8—DES MOINES
Albert Lea Building and Loan Association, Albert Lea, Minn.
Fidelity Building and Loan Association, Winona, Minn.
First Federal Savings and Loan Association, Jamestown, N . Dak.
Home Building and Loan Association, Joplin, Mo.
Mark Twain Savings and Loan Association, Hannibal, Mo.
Public Service Company's Savings and Loan Association, Kansas City, Mo.
NO. 9—LITTLE ROCK
4mory Federal Savings and Loan Association, Amory, Miss.
Electra Federal Savings and Loan Association, Electra, Tex.
First Federal Savings and Loan Association, Belzoni, Miss.
First Federal Savings and Loan Association, McComb, Miss.
Gladewater Federal Savings and Loan Association, Gladewater, Tex.
Guaranty Savings and Homestead Association, New Orleans, La.
Helena Federal Savings and Loan Association, Helena, Ark.
Inter-City Federal Savings and Loan Association, Louisville, Miss.
Jennings Federal Savings and Loan Association, Jennings, La.
Morrilton Federal Savings and Loan Association, Morrilton, Ark.
Nashville Federal Savings and Loan Association, Nashville, Ark.
Natchez Building and Loan Association, Natchez, Miss.
Pocahontas Federal Savings and Loan Association, Pocahontas, Ark.
Ponchatoula Homestead Association, Ponchatoula, La.
Quanah Federal Savings and Loan Association, Quanah, Tex.
Teche Federal Savings and Loan Association, Franklin, La.
Third District Homestead Association, New Orleans, La.
Number L.
w W . p c w t y | . lout.
.Bi.C.<../..Z//-..
(To b*filladin b7 V. A.)
fejgxAggggtaUw
.Mll»* m l i ^ j f t g r ^ .
I*_«a
ilM.JBMtt«ta.JBL«*A
L .Jferxi«nd„
i r t W w * . D* c* ,
A. Thte eertiScata shall become effective when the requirements •of the statute and regulations have been complied with
and the acta certified in part III hereof have been accomplished in compliance with said requirements.
B. When it becomes effective as hereinabove prescribed, this certificate shall obligate the United States of America to pay
to the legal holder of the "note" described on the reverse hereof upon his duly filing claim therefor:
1. All or such portion of the maximum amount hereby guaranteed as becomes payable upon the conditions, at the
times stated in, and in accordance with the provisions of, the Servicemen's Readjustment Act of 1944 (38 U. S. Code 693;
68 S t a t 284), and the regulations issued pursuant thereto which are in effect on the date of this certificate. In no event
will the obligation under this certificate exceed $2,000. Subject to the foregoing, this guaranty on this date is for
$ t»00Q»fl0
, being , 8 7 per centum of the face amount of said "note," and in no event will it exceed said sum
indebtedness as prescribed by said regulatii
Bd on behalf of the United States of America by the Administrator of Veterans' Affairs, through the undersigned authorized a
agent on this date, to become effective in the jfiubner hereinabove prescribed.
—
Z
'
1
I..JL.
ADMINISTRATOR OF VETERANS' AITAIRS^
*feP
Description of Property To Be "Mortgaged"
mt. U w . H h U n
NO. 10—TOPE K A
Citizens Federal'Savings and Loan Association, Wichita, Kans.
First Federal Savings and Loan Association, Arkansas City, Kans.
First Federal Savings and Loan Association of Sumner County, Wellington,
Kans.
Railway Building and Loan Association, Pueblo, Colo.
NO.
(Conaty. Fariah)
L»t 9 0 , SfMro 2801, D i s t r i c t « f C o l m b l a
11—PORTLAND
Auburn Federal Savings and Loan Association, Auburn, Wash.
First Federal Savings and Loan Association, Sheridan, Wyo.
NO. 12—LOS ANGELES
California Savings and Loan Company, San Francisco, Calif.
Central Federal Savings and Loan Association, San Diego, Calif.
First Federal Savings and Loan Association, Huntington Park, Calif.
Golden Gate Federal Savings and Loan Association, San Francisco, Calif.
Above is a reproduction oj Veterans1 loan certificate
number one issued through the District of Columbia
Regional Office of the Veterans Administration to the
First Federal Savings and Loan Association of Washington.
*
The "G. I." Bill in Action
•
" G . I . " lending got under way on November 17,
when the Veterans Administration issued Loan
Guaranty Certificate Number One to the First Federal Savings and Loan Association of Washington,
D. C. covering the first transaction under the Government's program for the guaranty of home loans
to returning servicemen. This loan ($7,500) fell
within the range which the Veterans Administration
has revealed as being typical of early applications;
that is, between $6,000 and $12,000.
December 1944
*
•
In order to take care of the current and anticipated volume of business, four offices, the first of a
number planned by the Veterans Administration,
were opened in November to process home loans.
These are located in New York, to serve the New
England States; Washington, D . C , to serve the
Middle Atlantic and Southern States; Chicago, to
take care of the Middle West, and San Francisco for
the Far West. They will have no direct contact
with the veterans but will deal with savings and
loan associations, banks and other prospective lenders seeking the guaranty of loans.
8*
RESIDENTIAL BUILDING ACTIVITY AND SELECTED INFLUENCING FACTORS
1935-1939= IW\*
100/
BY YEARS
220
m)NTI4S
BY
i
>
i
i
i
i
i
ADJUSTED FOR SEASONAL VARIATION
200
/PRIVATE
160
\
140
i
a LIV. LtivL/.
• (FED HOME LOAN BANK ADM
^SVGS. 8 LN. LEND.
ff\\
V
80
/
60
..^N-
*V-v -•>
40
NUhrnnivi
F(
(FED. 1RECL0SURESD M . ) _
20
HOME
fNONFARM FORECLOSURES
<">AN RANK A
1 I
0
140
I20[
i
i
RENTS 1
s
ioo\
s>O
X.
BUILDING MATERIAL
...
Wr*l *T
J
1 I
i i
1 !
11
! I
...
PRICES*.^
*>
RENTS'*
pp/r ?FS
MATER/AL
1/LD/NG
(U. S. DEPT
OF LABOR)
rV
1 I 1 I 1 1 1 ! 1 i
i i
.••-
1
•%..-
80 [
JV j
\ \ . A. ...
Ivy *
/
)\L^
V \
r *•»
N
/
\
y
_&
lg
MX
I V
/
f
100
,A|
J
~Afbv\j&.
CONSTRUCTION
-~KVPR kIVATE
2 FAMILY DWELL. UNITS
/
>
»20
60
300
CONSTRUCTIOv^
1 a 2 FAMILY DWELL. UNITS
(FED. HOME LOAN BANK ADM.)
(U. S. DEPT OF LABOR RECORDS)
180
1
1
1
1
1
A
V
MAM
V
i
1 I
1 l
l 1
1 l
1 I
1
1 1
1
1 i
1 |A
V
||
i
i
i
i
1
i
i
ADJUSTED FOR SEASONAL VARIATION
280
260
tfi/DL/STRIAI_ PRODUCTION
> . - """"V
240
IND USTZUAL PRO!OUCTION- \ .
220
V
//
(FED RESE RVE BOARD)
1
200
^.•*"* ..—
/
,--
/ /
180
y
s'*
*
^ V -/A/CC)M£ PAYh1ENTS
f
t
160
""\
4
140
*•
MFG. £/V PLC YMEl\IT
/
120
/
100
(U. S. DEPT. OF COMMERCE
y
D
l«^
X'-
s _ <--•*
\V
\
^MFG. EMPLOYMENT
80
60
•*»». * « £ * , -
t
S
IQ^A^-?I
'-^O
1
x
11
'l/i
'•ztz
CONSUMER CREDIT
'•*c
i j
7
'•^Q
'^Q
1
y
AC\
'/ii
1 A^
'AO
^'/r*
_1_>\ 1 1 i
1/ in AO
MONEY IN CIRCULATION
i
1 1
i 1
i
1 1 M M
1 1 M
1 Qa.i
M/J J 1
IQ d/1
V
DEPARTMENT STORE SALES
1935-19 59 = 100
II
.^AAJ-
/w
M
A Kf
A
*
VJ
\J
.Mhiliihi
82
1 1 1 i l 1 1 1l l1h ll 1h l l l l
uliiliilii
fee/era/ Home Loan Bank Review
« « «
MONTHLY
SURVEY
» » »
HIGHLIGHTS
/. The financing of mortgages by individuals rose 5 percent in October—a gain almost equal to the combined total of recordings by
banks and trust companies, insurance companies and mutual savings banks.
A. A new high of 26 percent was reached in the ratio of recordings by individuals to total recordings during October.
B. All types of lenders, except insurance companies and banks and trust companies, shared in the 2-percent gain shown in
October recordings of mortgages of $20,000
or under.
II. An increase of less than 1 percent was shown in savings and loan new lending during October.
A. State-chartered members of the Bank System and nonmember associations indicated gains of 3 and 4 percent, respectively,
while Federals registered a 2-percent decline.
B. Six Bank Districts shewed increases ranging from 2 percent in Cincinnati to 4 percent in Indianapolis.
III. Residential construction, reversing the 4-month downward trend, showed a 29-percent increase during October but was still 52 percent
below the same month last year.
I V. The cost of building the standard 6-room house rose slightly in October on the basis of an increase in the price of materials.
Labor
charges remained unchanged from the previous month.
V. During October, Federal Home Loan Bank advances outstanding reached the lowest point recorded in that month since 1933.
VI. The resources of all insured associations rose $60,000,000
during October and at the end af that month stood at
$4,774,000,OOO. Of this, more than $3,000,000,000
was held by Federals.
VII. Industrial production showed a slight decline during October/ department store sales were 13 percent above last year; 1944 income
payments were expected to reach a new peak.
ft ft ft
BUSINESS CONDITIONS—Industrial
output shows little change
With the shifting pattern of war manufacture, industrial production showed a slight decline in October when it stood at 230 percent of the seasonally
adjusted 1935-1939 average. This was 1 point below the level reported by the Federal Reserve Board
for the preceding month. The output of steel, although up slightly, was 7 percent below the peak of
October 1943, while the production of aluminum,
copper and other non-ferrous metals continued to
drop off. The manufacture of machinery and transportation equipment showed slight declines. However, lumber output was at almost the same level
as in September when it was 10 percent above prewar figures.
Rail freight traffic continued at a high volume in
October and early November, standing during the
former month at 137 percent of the seasonally adjusted average (1935-1939 = 100) as compared with
139 percent for September. This activity of the
railroads was generally equivalent to that reported
for October 1943.
Distribution, as indicated by the seasonally adjusted index for department store sales, showed a
considerable increase and in October, as in other
recent months, the volume of this business was runDecember 1944
ning about 13 percent above the corresponding
months of last year. The October index for these
sales was 194 percent compared with 183 percent
during the preceding month and 174 percent in
October 1943. According to the Federal Reserve
Board, sales during the first half of November
showed a continued rise, standing approximately 8
percent above the corresponding weeks of the preceding year.
The Bureau of the Census reported another slight
decline in the labor force during October, 160,000,
bringing the total for the month to 52,870,000. This
net change resulted in a decline of 150,000 in unemployed leaving the total for this category at
630,000. The remaining 10,000 net loss was the
result of a 90,000 decline in the number of nonagricultural employees which offset a gain of 80,000
in agricultural workers.
[1935-1939 = 100]
r
1
Oct.
1944
Sept.
1944
42.8
108. 2
129. 9
186. 6
230.0
154. 5
234.7
39.8
108.2
129.5
189.2
231.0
156. 3
232. 7
r
r
Percent
change
Oct.
1943
+7.5
0.0
+0.3
-1.4
-0.4
-1.2
+0.9
62. 7
108. 0
125.8
158.9
247. 0
170. 5
217.5
Percent
change
-31.7
+0.2
+3.3
+ 17.4
-6.9
-9.4
+7.9
Revised.
Adjusted for normal seasona variation.
83
Indications are that 1944 will be the peak year for
income payments, with the total for the year being
estimated by the Department of Commerce at about
$154,000,000,000, compared with the estimate of
$142,000,000,000 for 1943. This gain is accounted
for principally by increases in the early part of the
year, for since June, the monthly volume of payments has remained fairly steady at $13,000,000,000
following the long period of rise. Three groups—
manufacturing wages and salaries, agricultural incomes and Federal personnel payments—accounted
for almost 90 percent of the expansion in incomes
between 1942 and 1943. During 1944, declining
employment has diminished manufacturing payrolls
and the bulk of the rise in payments this year has
been reflected in agricultural and military incomes.
The seasonally adjusted index of residential construction, based on 1- and 2-family privately financed
dwellings, rose from the September low of 39.8 to
42.8 (1935-1939=100), but with the exception of
August and September was well below any monthly
period in the last nine years.
From January through October, permits were
issued for a total of 95,658 units of all types, a decrease of 46 percent from the comparable period of
last year. Most of this drop was in publicly financed
construction, which accounted for 61,435 of the total
81,261 unit decrease. Percentagewise, there has
been an 82-percent decline in public building compared with last year. In spite of the current low
level of private construction, the January-October
total is only 20 percent below the same period of
1943.
[TABLES 1 and
2.]
BUILDING ACTIVITY-Up-turn
in total activity
Residential construction in urban areas during
October registered a slight upward swing from the
steady decline noted since June 1944. The total
of 8,268 dwelling units provided during the month
was an increase of 29 percent from September but
represented a decrease of 52 percent from October
1943. All iypes of dwellings contributed to the
1,875 increase in permits issued during October,
with increases of 6 percent shown for 1-family
privately financed dwellings, 27 percent for 2-family
units and 22 percent for privately financed multifamily dwellings. Although the 695 units provided
by public funds during October represented a substantial percentage increase over September's 150
units, the volume for either of these months was
considerably below that of any month since 1938.
B U I L D I N G COSTS—Fractional
increase shown
During October, a fractional rise in material prices
resulted in a slight advance in the index of the cost of
constructing the standard 6-room frame house.
Labor costs remained unchanged following a small
rise in September. The indexes of total cost, materials and labor now stand 33.5, 31.4 and 37.4 percent,
respectively, above the average for the 1935-1939
base level.
During the 12 months ending in October the
composite index of building costs gained 3 percent,
reflecting a 4-percent rise in materials going into the
standard house, and an increase of 2 percent in labor
charges.
Construction costs for the standard
house
[Average month of 1935-1939 = 100]
THOUSNEW
RESIDENTIAL CONSTRUCTION
35
VjrPRIVATE I ond 2 FAMILY
1943
1944
Element of
cost
Oct.
1944
Sept.
1944
Percent
change
Material _
Labor
__
131.4
137.4
131. 3
137.4
+ 0. 1
0.0
126.0
135.0
+ 4.3
+ 1.8
Total. __ 133. 5
133.4
+ 0.1
129. 1
+ 3.4
Oct.
1943
Percent
change
The composite index of wholesale prices of building materials, compiled by the U. S. Department of
Labor, rose from 129.5 to 129.9 during October, a
gain slightly larger than that which occurred during
the preceding four months. Of the components,
brick and tile showed the sharpest rise, 3.2 percent,
while cement and paint and paint materials gained
Federal Home Loan Bank Review
less than 1 percent. Plumbing and heating supplies,
structural steel, and "other' 7 materials remained
unchanged during October. For the second consecutive month, lumber prices declined slightly.
During the last 12 months, the wholesale index for
all building materials rose 3.3 percent. [TABLES
3, 4 and 5.]
TOTAL
LOANS MADE BY A L L SAVINGS AND LOAN ASSOCIATIONS
UNITED STATES-BY TYPE OF ASSOCIATION
BY MONTHS
MORTGAGE LENDING-Slight gain
noted
All savings and loan associations made over $135,000,000 in new loans during the month of October,
a gain of less than 1 percent over the preceding
month. State members loaned $61,000,000, a 3-percent rise, and nonmembers with $12,300,000 increased
their lending 4 percent. Federals, however, showed
less activity than in September. The $62,000,000
extended for new loans represented a 2-percent
decline. B y purpose of loan, repair and reconditioning loans declined 15 percent; loans for the purN e w mortgage loans distributed b y purpose
UNITED STATES - B Y PURPOSE OF LOAN
BY MONTHS
140
120
TOTAL
LOANS^
IOO
80
+-HOME
PURCHASE
[Dollar amounts are shown in thousands]
NSTRUCTION
.
Purpose
Construction _
Home purchase _
Refinancing
Reconditioning
Other purposes
Total
Oct.
1944
PerSept.
cent
1944 change
$6, 095 $5, 923
101, 461 101, 884
15, 253 14, 495
2,699 3, 160
8,993
9,720
+ 2. 9
-0.4
+ 5.2
-14. 6
+ 8. 1
PerOct.
cent
1943 change
$7, 452
83, 259
14, 025
2, 874
7,540
-18. 2
+ 21.9
+ 8. 8
-6. 1
+ 28.9
135, 228 134, 455 + 0. 6 115, 150 + 17.4
chase of existing dwellings decreased 0.4 percent;
while "other purpose'' loans increased 8 percent;
those for refinancing, 5 percent; and loans for home
construction were up 3 percent.
Six of the Bank Districts showed gains for the
month ranging from 2 percent in the Cincinnati
area to 4 percent for Indianapolis. New York
experienced slightly less activity in October than
during September, while the Des Moines region
lagged 6 percent below the previous month. For
the country as a whole, lending for October was 17
percent greater than in the comparable month a
year ago. Each Bank District, except Los Angeles
with a 5-percent decline, increased its lending in
comparison with October of 1943. The Little Rock
and Indianapolis areas gained 6 percent, while new
lending was 51 percent greater in the New York
region.
Decemfcer 1944
Jf REFINANCING
1
J
\
]
OfHER-Z
O
>ST\""T
JUN
1942
SEP
\'"v~
DEC
' T l
i i l , i 1 T i 1 ^.H
JUN
1943
SEP
DEC
MAR
• , "i
i M'I
JUN
1944
On a cumulative basis loans for the first 10 months
of this year ($1,224,500,000) were 25 percent above
those for the same period of 1943 with all Bank
Districts sharing in the gain. The Portland area
showed a 6-percent rise while the Chicago region
was up 40 percent and the New York region, 49
percent.
[TABLES 6 and 7.]
MORTGAGE RECORDINGS—High-level
activity continues
The generally high level of activity which has
prevailed in the mortgage market since early this
year was continued during October. Estimates
based on reports received from counties having
almost two-thirds of the country's nonfarm population indicate that about $422,800,000 of nonfarm
mortgages of $20,000 or less were recorded during the
month. This total was 2 percent above the September recording volume and exceeded that of October
1943 by 9 percent.
All types of lenders, with the exception of insurance
companies and banks and trust companies, showed
greater activity than in September, the increases
ranging from 1 percent for " other" mortgagees to 7
percent for mutual savings banks. Mortgage financ85
Mortgage recordings by type of mortgagee
[Dollar a m o u n t s are shown in thousands]
T y p e of lender
Savings and loan associations
Insurance companies
Banks, t r u s t companies._
M u t u a l savings banks
Individuals
Others
Total
PerPerPercent
Cumula- cent of
change cent of
tive
total
Oct.
from
recordings record1944
Sept. a m o u n t (10 months) ings
1944
+ 1.4
-6. 5
-1. 1
+ 7. 2
+ 5. 1
+ 1. 1
+ 1.6
35.
5.
18.
3.
26.
12.
0 $1,308,751
216, 448
0
741, 203
0
136, 216
9
934, 973
0
519, 172
1
100. 0 3, 856, 763
33.
5.
19.
3.
24.
13.
9
6
2
5
3
5
100. 0
ing by individuals rose 5 percent to $110,000,000 in
October, an amount almost as large as the combined
total of recordings by banks and trust companies,
insurance companies, and mutual savings banks.
The drop of 6 percent in recordings by insurance
companies reduced the volume for these institutions
to the lowest October level since this statistical
series was inaugurated more than five years ago.
The persistent upward trend in the ratio of recordings by individual lenders to total mortgage
recordings was also continued during October,
reaching a new high (26.0 percent) as compared with
25.1 percent in September. Offsetting declines
occurred in the proportion of total recordings accounted for by commercial banks and insurance
companies. [TABLES 8 and 9.]
F H L B SYSTEM—Advances reach
long-time low
In October of this year, Bank System advances
were lower than in any comparable month since 1934.
The October 1944 advances totaled $4,181,000, a
decline of $4,118,000 from the $8,299,000 reported in
October of the preceding year, and a drop of $2,812,000 from the September 1944 figure of $6,993,000.
Only five Banks showed advances as being higher in
October than in the preceding month.
Repayments during October were well above those
of the comparable month of 1943. This year the repayments of $18,869,000 were close to the high for
that month, being second only to the $19,065,000
peak recorded in 1942. However, October repayments were lower than the $25,466,000 reported in
the previous month, which had established a high for
September.
86
Advances outstanding were below any other total
recorded during October since 1933, $80,513,000, as
compared with $126,683,000 shown in October a
year ago. Advances outstanding declined $14,688,000 from the $95,201,000 of the preceding month,
with all Banks sharing in the drop.
Member deposits were well above last month's
figure, $31,885,000, a rise of 18 percent from the
$26,945,000 shown in September. Total combined
assets have risen from $276,654,000 in September to
$281,673,000 in October, an increase of $5,019,000,
but were $9,529,000 below the $291,202,000 of a year
ago.
[TABLE
12.]
FLOW OF PRIVATE REPURCHASABLE CAPITAL
In the first 10 months of 1944 new investments in
savings and loan associations amounted to approximately $1,568,000,000, a 25-percent increase over the
Share investments and repurchases, October 1944
[Dollar a m o u n t s are shown in thousands]
I t e m and period
All
Uninsured insured
Nonassocia- members members
tions
All
associations
Share investments:
1st lOmos. 1944__
1st lOmos. 1943__
Percent change
Oct. 1944
Oct. 1943
Percent change
$1,567,823 $1,227,121 $206, 163 $134, 539
$1,255,959 $942, 212 $177, 175 $136, 572
-1
+ 25
+ 30
+ 16
$163, 194 $129, 938 $20, 313 $12, 943
$115, 835 $87, 692 $16, 504 $11, 639
+ 41
+ 48
+ 23
+ 11
Repurchases:
1st lOmos. 1944__
1st lOmos. 1 9 4 3 ^
Percent change
Oct. 1944
Oct. 1943
Percent change
$880, 823 $656, 566 $135,
$790, 073 $542, 700 $137,
+ 21
+ 11
$75, 511 $54, 719 $12,
$67, 310 $45, 104 $13,
+ 21
+ 12
Repurchase ratio:
(percent):
1st lOmos. 1944
1st lOmos. 1943
Oct. 1944
Oct. 1943
56.
62.
46.
58.
2
9
3
1
53.
57.
42.
51.
5
6
1
4
335 $88, 922
080 $110, 293
-1
-19
678 $8, 114
Oil
$9, 195
-12
-3
65. 6
77.4
62. 4
78. 8
66. 1
80. 8
62. 7
79.0
$1,256,000,000 invested during the corresponding
period of 1943. Repurchases rose only 11 percent,
from $790,000,000 to $881,000,000 so that the net
increase was $687,000,000 for 1944, while $466,000,000
was the net added during 1943. As a result of the
47-percent excess of new investments over repurchases this year compared with last year, the repurchase ratio declined from 63 to 56.
Federal Home Loan Bank Review
During October, $163,000,000 in new share capital was added to private capital accounts while
$75,500,000 was withdrawn; or, $46 was repurchased
for each $100 of new investment. For the same
month a year ago $116,000,000 was invested and
$67,000,000 drawn out, so that the repurchase ratio
was 58 percent, or 12 points, above that of October
1944. Nonmembers and uninsured members each
bettered their ratios by 16 points; while insured associations lowered their ratio 9 points.
INSURED ASSOCIATIONS—Resources
show monthly rise
At the end of October there were 2,462 insured
savings and loan associations with total resources of
$4,774,000,000, a $60,000,000 gain during the month,
even though borrowings declined for the third consecutive month. The 997 associations operating
under state charter had assets of $1,774,000,000;
Federals numbered 1,465 with resources passing the
$3,000,000,000 mark.
For the fourth time this year insured associations
advanced over $100,000,000 during the month for
new loans. Of the total, $75,000,000 was for the purchase of homes.
Private investors added nearly $130,000,000 to
their accounts while less than $55,000,000 was repurchased during the period. That is, for each $100
invested by the public in insured associations, $42
was withdrawn. [TABLE 13.]
FEDERAL SAVINGS AND LOAN ASSOCIATIONS
Resources of the 633 new Federals amounted to
over $1,000,000,000 at the close of October, while
the 832 converted Federals had assets of nearly
$2,000,000,000. Federals as a whole attracted
$85,000,000 in new capital while $33,700,000 was
drawn out of the accounts of private savers; or, $40
was repurchased for each $100 invested.
Progress in number a n d assets of
Federals
[Dollar amounts are shown in thousands]
Approximate assets
Number
Class of
association
New _
Converted
Oct. 31, Sept. 30,
1944
1944
_
Total
December 1944
633
832
1,465
Oct. 31,
1944
Sept. 30,
1944
633 $1, 005, 125 $989, 904
1, 995, 240 1, 971, 956
831
1,464
3, 000, 365 2, 961, 860
Postwar Planning Directory
•
T H E latest publication of the Twentieth Century
Fund * is a directory giving brief descriptions of
"organizations engaged in research or education of
general public interest in the field of postwar problems—and of the w^ork they are doing." Titled
Postwar Planning in the United States, An Organization Directory, this booklet lists nearly two hundred
agencies, representative of eleven major areas of
interest.
Groups included have been limited to those which
are (1) within the United States, (2) operating on a
national or international basis, (3) carrying on continuing activities, and (4) concerned with programs of
particular interest to this country. Four large
library groups which serve the country as post-war
information centers, a good many health, relief and
rehabilitation agencies and some major business,
trade and professional associations have been included in this directory, which is a revision of earlier
volumes. There has been no effort to include
regional or technical societies, seminars, etc., nor to
tabulate the post-war planning of individual business
concerns, libraries, institutes, localized university
courses and the like. In addition to the list of state
planning associations contained in the appendix to
the Directory, a complete listing of personnel is
given.
Of the groups listed in the book, 39 are Government and 158 private organizations; 54 agencies are
mostly concerned with international and regional
problems; 45 are considering post-war industrial,
agricultural, and financial questions, and 27 are principally engaged in educational and public discussion
activities. Others deal with health, relief, housing,
urban development, transportation, labor, economics,
and such related problems. Each listing gives the
name of the group, the name and title of the administrative officer and the address. The descriptive
text is divided into "Background," "Activities" and
"Personnel."
In order to aid in reference, the Directory includes
an alphabetical index, an arrangement by type of
organization and a classification by major fields of
interest. A personnel file, too, is given. The Directory is comprehensive and well-designed for use and
for ready reference.
1
Postwar Planning in the United States, an Organization Directory, 3. Published
by the Twentieth Century Fund, 330 West 42 Street, New York 18, New York.
One dollar.
87
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 1944, by Federal Home Loan Bank District and by State
[Source: U. S. Department of Labor]
[Dollar amounts are shown in thousands]
All residential s t r u c t u r e s
N u m b e r of family dwelling
units
Federal H o m e Loan B a n k District and State
U N I T E D STATES
__ _
Connecticut
Maine
___ - ___
Massachusetts
New Hampshire.
R h o d e Island
Vermont
..
_.
_
I
Oct. 1943
Oct. 1943
Oct. 1944
Permit valuation
Oct. 1944
Oct. 1943
$21, 784
$50,325 1
6,017
8,820
$17,086
$29, 257
24
375
66
1,088 1
24
223
66
873
8
1
13
2
171 1
23
1
39
3
657
140
278
8
1
13
2
115
37
67
23
1
39
3
482
100
278
7,573
_
N o . 1—Boston
N u m b e r of family dwelling
units
Permit valuation
Oct. 1944
Oct. 1943
Oct. 1944
All p r i v a t e 1- a n d 2-family s t r u c t u r e s
17,170 1
133
67
4
...
4
13
13
193
857
575 ~~
2,628
33
167
140
481
180
13
420
437
553
22
1.117
1,511
20
13
120
47
118
22
318
163
82
451
236
1,822 1
69
273
211
1,023
50
32
32
414
5
177
59
96
1,725
1
37
32
32
236
5
152
59
96
926
1
1,106
2,575
2,538
6,821
715
1,003
1,353
2,368
193
287
204
367
3
24
9
19
145
234
423
638
561
45
22
507
532
836
346
728
8
41
9
38
236
639
851
1,576
1,605
38
8
1,868
193
75
185
207
3
24
9
19
145
9
183
23
553
45
22
23
532
291
288
146
8
41
9
38
236
33
428
19
1,589
38
8
17
_
658
2,082
2,582
,___
47
429
182
22
2,003
57
136
2,010
436
6,734
62
6,591
81
637
47
411
179
620
22
541
57
2,491
136
1,920
435
2,709
62
2,566
81
758
117
641
2,171
143
2,028
2,395
394
2,001
9,071
411
8,660
275
113
162
1,657
111
1,546
1,057
390
667
7,802
375
7,427
N o . 7—Chicago
Illinois
Wisconsin
951
812
139
744
369
375
4,164
3,472
692
3,070
1,530
1,540
609
470
139
690
349
341
2,885
2,193
692
2,886
1,466
1,420
N o . 8—Des M o i n e s
I o w a -_
Minnesota
Missouri
North Dakota
South Dakota
181
35
101
34
3
8
62
35
12
15
510
105
336
54
6
9
138
90
18
30
177
31
101
34
3
8
62
35
12
15
508
103
336
54
6
9
138
90
18
30
1,519
1, 504
2,454
1,923
16
1,220
63
107
1,048
1,515
46
534
99
42
794
2,445
40
27
76
59
1,302
2,296
8
7
37
138
2,106
1,309
46
534
99
42
798
40
27
64
59
1,119
16
1,220
63
107
1, 039
8
7
21
138
1,749
237
301
43
87
89
82
655
784
633
627
37
311
127
180
117
174
310
183
221
22
90
28
81
239
26
98
28
85
9
75
89
66
29
299
127
178
17
148
310
152
387
18
45
91
25
207
1
1,829
5
9
1, 097
117
343
258
1,411
19
102
291
75
922
2
6,068
10
15
3, 058
405
1,896
684
387.
18
45
91
25
207
1
541
5
6
57
112
343
18
1,411
19
102
291
75
922
2
2,582
1,477 1
41
1,426
10
4,219
4,198
114
4,069
15
9,805
54
9, 751
1,355 1
2,036
41
1,304
10
24
2, 012
3,886
114
3, 757
15
5,845
54
5,791
N o . 2—New Y o r k
....
N e w Jersey
New York
N o . 3—Pittsburgh
Delaware..
Pennsylvania-..
W e s t Virginia
_.
__
N o . 4—Winston-Salem
„
Alabama.
__
D i s t r i c t of C o l u m b i a
Florida
___
Maryland
N o r t h Carolina
South Carolina.
Virginia
N o . 5—Cincinnati
..
_ . _
Kentucky
Ohio
Tennessee
_
_
_
N o . 6—Indianapolis
Indiana...
Michigan
_
--
N o . 9—Little R o c k
Arkansas
Louisiana
Mississippi
N e w Mexico
T e x a s ._
N o . 10—Topeka
C o l o r a d o . . __
Kansas
Nebraska
Oklahoma
N o . 11—Portland
Idaho. _
Montana
Oregon.. _
Utah
Washington
Wyoming..
N o . 12—Los Angeles
Arizona
California
Nevada
!8
._
._ _ .
....
.___
_
_
_._
.___
_
_.
_
24
4,195
10
9
202
390
1,896
75
Federal Home Loan Bank Review
Table 2 . — B U I L D I N G A C T I V I T Y — E s t i m a t e d number and valuation of new family dwelling units
provided in all urban areas of the United States
[Source: U. S. Department of Labor]
[Dollar amounts are shown in thousands]
Permit valuation
N u m b e r of family dwelling u n i t s
M o n t h l y totals
T y p e of c o n s t r u c t i o n
O c t . 1944
January-October totals
S e p t . 1944
O c t . 1943
1944
1943
January-October totals
M o n t h l y totals
O c t . 1944
S e p t . 1944
O c t . 1943
1944
1943
__
6,878
6,243
11, 840
81,319
101,840
$19, 690
$19,780
$37,861
$254, 406
$316, 585-
1-family dwellings
. . . __
2-family dwellings *__ _
__ . ___
3- a n d more-family dwellings 2
5,284
733
861
4,963
575
705
7,018
1,802
3,020
62, 450
8,258
10, 611
65, 603
13, 932
22, 305
15, 225
1,861
2,604
15,500
2,031
2,249
23,946
5,311
8,604
195, 323
27, 863
31, 220
216, 215
38, 983.
61,387
695
150
5,330
13, 644
75,079
649
12, 464
36, 351
160,107
290,757
476,692
Private construction
Public construction
_ __
Total u r b a n construction
1
2
.
8,268
17,170
6,393
95, 658
176, 919
2,094 J
21, 784
20,429
50, 325
Includes 1- and 2-family dwellings combined with stores.
Includes multi-family dwellings combined with stores.
Table 3 . — B U I L D I N G COSTS—Index of building costs for the standard house in representative
cities in specific months 1
[Average month of 1935-1939=100]
1944
1943
19.42
1941
1940
1939
1938
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Federal H o m e Loan Bank District
and city
Nov.
No. 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.*
N a s h v i l l e , Tenn_ _ _
_
_.
_
_ ___
.
,
N o . 9—Little R o c k :
Little Rock, Ark.*
N e w Orleans, L a . *
Jackson, Miss.*
Albuquerque, N . Mex.*
D a l l a s , Tex_
H o u s t o n , Tex.*_._ _ . . . .
S a n A n t o n i o , T e x _.
N o . 12—Los Angeles:
Phoenix, Ariz.*..
Los Angeles, Calif.*
San Diego, Calif-San Francisco, Calif. __
Reno, Nev.*
_ ...
135.3
150.1
_
. _ ._
126.3
130.5
Aug.
May
Feb.
135.3
149.9
134.2
125.5
134.6
150.2
134.0
124.0
129.7
133.8
148.7
133.5
122.3
129.7
131.2
148.4
131.9
122.3
122.9
130.1
139.0
' 127. 0
122.2
122.0
122.8
134.0
' 118. 6
115.8
114.3
106.5
112.4
' 104.6
106.8
107.6
97.0
105.6
' 104.1
101.9
104.6
106.2
101.8
«• 104.2
102.7
99.0
139.3
138.6
133.9
142.1
129.6
138.1
130.6
133.3
131.2
140.4
129.7
138.1
127.9
133.0
130.7
139.3
132.1
137.2
126.8
112.0
128.1
117.6
126.4
121.4
122.0
111.0
124.7
115.6
122.8
118.3
107.0
100.5
110.0
103.4
108.5
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
125.5
138.6
135.3
125.5
136.0
123.6
137.6
123.3
138.6
130.8
125.4
136.0
123.1
137.8
123.7
138.4
127.7
122.8
123.6
131.9
122.7
116.5
128.8
116.6
128.5
117.0
126.9
121.1
112.3
131.5
118.1
131.4
103.1
119.3
109.6
99.5
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
109.1
109.0
123.1
114.3
117.2
101.2
100.8
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
139.6
134.6
143.3
127.8
138.0
138.0
126.2
138.6
136.4
123.5
126.1
138.6
135.0
123.5
124.3
124.3
117.9
144.3
117.9
144.3
115.7
144.4
115.7
143.1
113.2
142.0
111.8
131.3
127.5
127.5
127.5
124.6
119.9
119.9
142.1
121.5
- _ . - - _
•Indexes
of November 1940 and thereafter have been revised in order to use retail material prices collected by the Bureau of Labor Statistics.
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 wideboard siding with brick and stucco as features of design. Best quality materials and workmanship are
used.
The house is not completed ready for occupancy. It includes all 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.
The index reflects the changes in material and labor costs in the house described above. Allowances for overhead and profit, which were previously included in the
total costs, were based upon a flat percentage of the material and labor costs and therefore did not affect the movements of the series; no such allowances are included,
now that the index is expressed in relative terms only.
Reported costs do not include the cost of land nor of surveying the land, the cost of planting the lot, nor of providing walks and driveways; they do not include
architect's fee, cost of building permit, financing charges, nor sales costs.
In figuring costs, current prices on the same building materials list are obtained every 3 months from the same dealers, and current wage rates are obtained from
the same reputable contractors and operative builders. The Bureau of Labor Statistics furnishes building material prices for some cities. Although shortages of
materials and priority restrictions preclude the actual construction of this house under wartime conditions, tests indicate that the indexes measure fairly closely the
cost .changes for smaller frame structures that now can be built.
December 1944
89
Table 4 . — B U I L D I N G COSTS—Index of building costs for the standard house
[Average m o n t h of 1935-1939 = 100]
1
Oct. 1944 Sept. 1944 A u g . 1944 J u l y 1944 J u n e 1944 M a y 1944' A p r . 1944 M a r . 1944 F e b . 1944 J a n . 1944 D e c . 1943 N o v . 1943' Oct. 1943
1
i
i
1
•
1
E l e m e n t of cost
_
131.4
137.4
131.3
137.4
131.3
137. 3
131.0 I
137.3
130.7
137.5
130.3
137.3
129.7
137. 0
129.1
136.8
128.8
136.5
127.8
136.1
127.6
136.0
126.8
135.6
126.0
135.0
T o t a l cost. _ _ _ _ _ _
133. 5
133.4
133.3
133.1
133.0
132.7
132.2
131.7
131.4
130.6
130.5
129.8
129.1
Material, _
Labor
_
. __
Table 5 . — B U I L D I N G COSTS—Index of wholesale prices of building materials in the United States
[1935-1939 = 100; converted from 1926 base]
[Source: U. S. Department of Labor]
All b u i l d i n g
materials
Period
Brick a n d
tile
Lumber
Cement
Paint and
paint materials
Plumbing
and heating
Structural
steel
Other
1942: October
123.3
108.6
103.4
148.4
124.2
123.6
103.5
111.7
1943: October
November
December
125.8
126.3
126.6
109.0
110.1
110.1
102.7
102.7
102.7
163.3
164.1
164.3
126.4
126.9
127.0
118. 5
120.6
120.6
103.5
103.5
103.5
110.5
110.5
111.2
126.7
126.9
127.5
128.6
129.2
129.4
129.4
129.5
129.5
129.9
110.3
110.2
110.4
110.4
110.6
110.7
110.8
110.8
111.7
115.3
102.7
102.7
102.7
103.1
105.8
105.8
105.8
105.8
106.3
107.0
164.4
165.3
167.8
170.8
171.5
171.5
171.7
171.9
171.5
171.3
127.2
127.7
128.4
128.4
128.7
130.0
129.7
129.7
129.7
130.3
120. 6
120.6
120.6
120.6
121.4
121.4
121.4
121.4
121.4
121.4
103.5
103.5
103.5
103.5
103.5
103.5
103.5
103.5
103.5
103.5
111.2
111.2
111.2
111.2
111.4
111.4
111.5
111.6
111.7
111.7
+0.3
+3.3
+3.2
+5.8
+0.7
+4.2
-0.1
+4.9
+0.5
+3.1
0.0
+2.4
0.0
0.0
0.0
+1.1
1944: J a n u a r y
February
March
April
May
June
_
July
August
September
October_
___
___
.__
_ _ _
___
• ..
_
_
_
_ _ .__
_ _
___
.
. __
__.. '.__
_
______
__ _ _
_ _
_--_.
__ _
________
Percent change:
October 1944—September 1944
October 1944—October 1943
_ _ _ . ._
Table 6 . — M O R T G A G E LENDING—Estimated volume of new home mortgage loans by all savings
and loan associations, by purpose and class of association
[Thousands of dollars]
Class of association
P u r p o s e of loans
Period
1942
January-October
October
__
_
_
. _
_
_.
1943
January-October
October
November
December _
_ __ _ ___ _
_
_ _ _ _ _ _ _ ___
______
_ _ __
__ __
_ ___ ___
1944:
J a n u a r y - O c t o b e r . . __
_ _ ..
January
_
_ _
T . ..
February
_ __
_
March
____
______
April
_
May
_ _ _
June
_ _
_ __- _-_
July
August...
_-_______-_-___
______
September
_ _
O c t o b e r . _ ___
___
___.
__
_____
90
Reconditioning
L o a n s for
all o t h e r
purposes
Total
loans
State
members
Nonmembers
Construction
H o m e purchase
Refinancing
$190,438
$573, 732
$165, 816
$41, 695
$78, 820
$1,050, 501
$412, 828
$476,080
$161, 593
172, 691
10, 572
488, 308
56, 528
140, 576
14, 694
36, 489
3,498
67, 830
6,380
905, 894
91, 672
357, 284
35, 555
407, 888
41, 937
140, 722
14,180
106, 497
802, 371
167, 254
30, 441
77, 398
1,183, 961
511, 757
539, 299
132, 905
88, 665
7,452
6,928
10,904
664, 662
83, 259
73, 053
64, 656
141, 937
14, 025
12, 767
12, 550
25, 513
2,874
2,638
2,290
62, 556
7,540
7,670
7,172
983,333
115,150
103, 056
97, 572
423, 306
50, 576
44,804
43, 647
448, 219
52,026
47,108
43,972
111, 808
12, 548
11,144
9,953
85, 364
7, 872
11,195
9,127
13, 484
7, 338
9, 663
7, 078
7, 589
5, 923 1
6, 095
892, 327
55,000
66,138
81, 846
85, 568
98,872
103,276
93, 232
105,050
101,884
101, 461
136, 993
9,976
11,955
14, 422
13, 491
14, 415
14, 963
13, 871
14,152
14, 495
15, 253
26,117
1,521
1,960
2,266
2,679
2,967
2,957
2,841
3,067
3,160
2,699
83, 739
6,609
6,916
8,469
7,421
8,931
9,850
8,014
8,816
8,993
9,720
1, 224, 540
80, 978
98,164
116,130
122, 643
132, 523
140, 709
125,036
138, 674
134, 455
135, 228
562, 869
37, 076
44,144
53, 883
57,045
59,229
64, 474
57,164
64, 400
63, 489
61, 965
546, 508
35, 456
44,139
50, 686
54, 212
60,141
63, 851
56, 539
61, 377
59,162
60, 945
115,163
8,446
9,881
11, 561
11, 386
13,153
12, 384
11, 333
12, 897
11, 804
12, 318
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, 520,000 and under
OCTOBER 1944
[Thousands of dollars]
[Thousands of dollars]
C u m u l a t i v e new loans
(10 m o n t h s )
New loans
Federal H o m e L o a n
Bank District and
class of association
October
1944
September 1944
October
1943
1944
1943
$135, 228 $134, 455 $115,150 $1, 224, 540 $983, 333
UNITED STATES
Percent
change
Savings
Insurand
Federal H o m e L o a n
ance
loan
B a n k District a n d
comassocia- panies
State
tions
+24.5
...
Boston
61, 965
60, 945
12, 318
63, 489
59,162
11, 804
50, 576
52, 026
12, 548
10, 356
9,753
9,953
89, 506
80,062
+11.8
4,302
4,844
1,210
4,217
4,493
1,043
2,800
5,581
1,572
33, 929
44, 436
11,141
23, 336
43, 835
12, 891
+45.4
+1.4
-13.6
Federal..
State m e m b e r
Nonmember
N e w York
Federal State member
Nonmember
Federal
State member
Nonmember
13, 953
9,241
109, 546
73, 422
+49.2
5,095
6,756
2,097
4, 793
7,295
1,865
2,624
4,639
1,978
34, 829
56, 438
18, 279
18, 503
37, 832
17, 087
+88.2
+49.2
+7.0
10, 997
11,551
10,167
101, 928
83, 950
+21.4
5,116
3,867
2,014
5,363
4,078
2,110
4,324
3,390
2,453
46, 526
34, 741
20, 661
33, 691
27, 227
23, 032
+38.1
+27.6
-10.3
..
Winston-Salem
15,142
14, 735
13, 939
143,154
118, 729
+20. 6
7,526
6,695
921
7,860
6,024
851
6,944
5,826
1,169
75, 232
59, 231
8,691
59, 882
47,192
11, 655
+25. 6
+25. 5
-25.4
24, 371
23, 920
19, 004
212, 483
180,114
+18.0
Federal
State member
Nonmember
Cincinnati
. . .
+33.0
+21.9
+3.0
13, 948
-
Pittsburgh
423, 306
448, 219
111,808
10, 346
12, 275
1,750
10, 383
11,817
1,720
7,633
9,908
1,463
88, 916
106, 460
17,107
70,109
95, 910
14, 095
+26.8
+11.0
+21.4
.
7,622
7,345
7,183
68, 296
59, 585
+14.6
Federal _
State m e m b e r
Nonmember
3,937
3,361
324
3,687
3,285
373
3,690
3,142
351
33, 625
31, 453
3,218
30, 815
25, 468
3,302
+9.1
+23.5
-2.5
Federal
State member
Nonmember
.
Boston,. _ _
Connecticut
. ...
Maine
Massachusetts
New Hampshire--Rhode Island
Vermont
_.
N e w York
Chicago- - .
15, 718
15, 222
11, 658
6,291
8,066
1,361
6,924
7,183
1,115
4,969
5,356
1,333
Federal . State member
Nonmember
D e s Moines
_.
•
138,878
99, 095
+40.1
57,951
69, 493
11,434
38, 411
49, 200
11, 484
+50.9
+41.2
-0.4
8,775
9,350
6,899
77, 385
55, 492
+39.5
Federal
State member Nonmember
4,662
2, 974
1,139
5,234
2,916
1, 200
3,609
2,466
824
40, 397
27,114
9,874
27, 884
19, 726
7,882
+44.9
+37.5
+25.3
L i t t l e Rock . _ __
6, 317
6, 566
5,965
64, 356
50, 872
+26.5
3, 081
3,131 '
105
3, 212
3,268
86
2,536
3,329
100
27, 638
35, 951
767
20, 983
29, 057
832
+31.7
+23.7
-7.8
_..
6,295
6,494
5,528
59,144
48, 598
+21.7
_
3,573
1.541
1,181
3,423
1,862
1,209
2,831
1,624
1,073
31,131
16, 406
11,607
27,179
14,163
7,256
+14.5
+15.8
+60.0
4,385
4,610
3,682
39, 685
37, 373
+6.2
2, 604
1,675
106
2, 790
1,692
128
2,361
1,157
164
25, 743
12, 493
1, 449
23, 251
12, 536
1,586
+10.7
-0.3
-8.6
11, 302
10, 956
11, 931
120,179
96, 041
+25.1
5,432
5,760
110
5,603
5,249
104
6,255
5,608
68
66, 952
52, 292
935
49, 262
46, 073
706
+35.9
+13.5
+32.4
Federal
State member
Nonmember
Topeka -
_
..
Federal
State member
Nonmember
Portland
Federal . . _ __ .
State member
Nonmember
._
Los Angeles _ _
Federal
- _
State member
Nonmember
December 1944
8,135
6,821
2,467
35, 490
2,058
253
1,357
172
532
103
1,329
753
4,804
569
338
342
2,331
513
2,928
301
567
181
813
42
1,278
33
274
27
8,583
2,288
19, 772
1,403
2,594
850
12, 549
2,056
7,095
6,249
16, 472
6,216
50, 637
4,403
12,069
2,276
3,940
15, 614
35, 023
3,633
3,462
10,435
1,865
7,822
546
5,872
4,081 ' 30, 621
198
9,443
794
126
1,447
292
171
6,444
1,207
36
510
260
4,920
692
90
3,802
189
881
26, 566
3,174
15, 049
2,310
5,239
118
14, 586
3,791
41,093
456
206
437
730
259
2,088
2,529
1,725
1.795
3,775
2,158
410
2,201
313
466
244
131
561
216
173
419
854
1,125
695
371
401
937
118
1,325
5,660
1,364
1,833
1,250
701
1,723
589
736
450
303
571
274
609
5,175
9,441
4,978
6,855
4,911
2,002
5,643
28, 973
2,202
10, 280
753
6,769
3,795
52, 772
_-_
3,147
25, 015
811
389
758
1,057
1,077
8,322
881
358
5,820
591
146
1,413
2,236
5,117
42, 079
5,576
-
8, 395
2,394
7,605
19
3,545
2,260
24,218
789
1,605
2,870
4,735
19
..
5,456
2,939
1,302
2,243
916
1,344
11,352
12,866
17, 269
1,130
6,049
6
7,386
9,404
41,244
13,174
4,095
878
252
3,669
2,380
6
4,349
3,037
8,868
536
30,938
10, 306
9,383
2,066
5,995
148
5,831
3,509
26, 932
2,528
3,358
3,010
331
156
204
754
1,060
36
12
1,384
1,265
3,072
91
183
946
1,786
2,770
174
155
250
602
2,566
75
16
5,312
7,913
12, 478
707
522
8,234
2,616
1,888
7,083
3,071
22, 892
524
2, 034
329
231
5,116
49
106
86
2,375
337
255
260
171
865
402
1,208
380
277
4,816
54
413
105
82
2,417
1,366
4,016
1,160
761
15, 589
7,811
704
5,092
1,504
17, 718
1,272
2,286
1,252
3,001
4,953
396
414
1,047
533
2,459
104
11,899
157
84
310
153
500
46
14
172
138
130
2,503
495
456
1,638
3,414
359
299
1,487
324
837
108
573
236
162
533
5,065
3,624
2,585
6,444
2,004
130
20
434
140
1,269
11
9,121
14, 761
1,128
946
3,463
1,742
7,049
433
64,461
74
9,029
18
1,568
62, 470
423
Delaware
Pennsylvania--.
W e s t Virginia
.
.
Winston-Salem
Alabama
D i s t r i c t of C o l u m bia
.
Florida _
Georgia
Maryland
N o r t h Carolina
S o u t h Carolina
Virginia
__
Indiana
Michigan
Chicago
Illinois
Wisconsin
.
Des Moines
_..
Minnesota
.
Missouri _
North Dakota.__
South Dakota
Little R o c k . .
Arkansas
Louisiana
Mississippi
N e w Mexico.._
Texas.
4,475
248
21
142
846
1,210
Indianapolis
Indianapolis
411
1,804
706
9,263
328
883
197
3,819
8,730
Pittsburgh
Kentucky
Ohio
Tennessee
13,181
637
5,612
New Jersey.. _ _
New York.
Cincinnati
Total
$148,131 $20, 985 $76,181 $16, 552 $109, 767 $51, 223 $422, 839
U N I T E D STATES
FederalState m e m b e r ,
Nonmember
562, 869
546,508
115,163
Banks
and
Other
Mutual
trust savings Indimortcomb a n k s v i d u a l s gagees
panies
..
Topeka
Colorado
_. .
Kansas
_
Nebraska
_
Oklahoma
Portland
_.
Idaho .
Montana
Oregon
Utah
.
Washington
Wyoming...
Los Angeles
Arizona
California
Nevada . . . .
160
11,659
80
2,607
560
523
405
1,119
3,312
197
199
291
607
1,808
210
2,731
13,814
3
2,728
262
13, 488
64
753
148
578
32
546
26,896
1,069
25, 566
261
91
Table 9 . — M O R T G A G E RECORDINGS—Estimated volume of nonfarm mortgages recorded
[Dollar amounts are shown in thousands]
Savings a n d loan
associations
Insurance
companies
Banks and trust
companies
M u t u a l savings
banks
Individuals
All mortgagees
O t h e r mortgagees
Period
Total
Percent
Percent
Total
Total
Percent
Total
Percent
Total
Percent
Total
Percent
Total
Percent
$1,024,511
122, 832
111, 818
101,176
32.3
31.8
31.6
30.6
$234, 563
25,141
23,115
22,188
7.4
6.5
6.5
6.7
$620, 652
74, 875
64,877
66, 699
19.5
19.4
18.3
20.1
$125, 001
15,023
15,141
12, 227
3.9
3.9
4.3
3.7
$698, 942
87,430
82, 307
76.432
22.0
22.6
23.3
23.1
$473,070
61,002
56,415
52,267
14.9
15.8
16.0
15.8
$3,176,739
386,303
353,673
330,989
100.0
100.0
100.0
100.0
1944: J a n u a r y — O c t o b e r
1, 308, 751
89, 887
J a n u a r y __ __. _
February
101, 705
121, 210
March
___
April
__
127,429
May
139, 748
June
145,893
July
138, 762
August
149, 835
September
.
146,151
October
148,131
33.9
29.8
32.8
32.9
34.5
34.5
34.6
33.7
34.8
35.1
35.0
216, 448
20, 585
18, 753
22,660
19, 671
21, 794
22, 215
24, 707
22, 646
22,432
20, 985
5.6
6.8
6.1
6.1
5.3
5.4
5.3
6.0
5.2
5.4
5.0
741, 203
62,180
60, 346
70, 570
72, 438
79, 083
79,453
80. 858
83,094
77,000
76, 181
19.2
20.6
19.5
19.2
19.6
19.5
18.8
19.7
19.3
18.5
18.0
136, 216
9,731
9,294
11, 255
12, 338
14, 882
15, 536
15, 261
15, 920
15, 447
16, 552
3.5
3.2
3.0
3.1
3.4
3.7
3.7
3.7
3.7
3.7
3.9
934, 973
72,600
72, 246
89,136
89, 466
95, 730
99,140
98,194
104, 215
104, 479
109,767
24.3
24.0
23.3
24.2
24.2
23.6
23.5
23.9
24.2
25.1
26.0
519,172
46,966
47, 300
53, 409
47, 926
53.858
59,394
53, 354
55, 066
50, 676
51, 223
13.5
15.6
15.3
14.5
13.0
13.3
14.1
13.0
12.8
12.2
12.1
3,856,763
301, 949
309, 644
368,240
369, 268
405, 095
421,631
411,136
430, 776
416,185
422.839
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
1943: J a n u a r y — O c t o b e r
October
November
December
Table 1 1 . — F H A — H o m e mortgages insured *
Table 1 0 . — S A V I N G S — S a l e s of war bonds *
[Thousands of dollars]
Period
Series E
2
Series F
[Premium paying; thousands of dollars]
Series G
Total
Redemptions
$1,622,496
$207,681
$1,184,868
$3,015,045
$13,601
5,988,849
652,044
2,516,065
9,156,958
245,547
1943.
October..
November
December..
10,344,369
1,340,148
665, 293
727, 558
745,123
93,124
23, 449
24,081
2, 6559,908
274,877
109,404
101, 378
13,729,402
1, 708,150
798,146
853,017
1, 506,894
137,496
164,412
200, 840
1944
January
February
March
April
May
June
July
August
September
October
1,084,637
2,102,345
575,714
605,709
624, 253
1,349,794
1, 686,509
499,357
590,827
598, 570
126,825
157,422
22,933
19,306
15, 287
115,119
101,082
17, 807
15,953
13,653
486,942
521,702
110,347
113, 528
111, 088
377, 284
337,459
85, 272
85, 286
82, 871
1, 698,404
2,781,469
709,054
738, 543
750, 628
1, 842,197
2,125,050
602,436
692,066
695, 004
180,965
177,980
261, 549
230,614
271, 597
241, 278
220,145
272,125
277,445
394,846
1941
1942
i U. S. Treasury War Savings Staff., Actual deposits made to the credit of
the U. S. Treasury.
2
Prior to May 1941: "Baby Bonds."
Title II
Period
Title VI
New
Existing
1943: October...
November.
December.
833
747
$18,856
20, 499
17,401
$48,571
48,421
42,979
1944: J a n u a r y . . .
February..
March
April
May
June
July
August
September
October
592
249
250
130
81
81
82
90
79
40
18, 397
13,795
12, 729
13, 200
18,319
17, 768
18,322
20, 256
19,967
21, 941
49, 003
40,616
41,620
36, 793
37,739
34, 238
42, 322
48,166
42, 592
43, 354
Total
insured
at end of
period *
$5, 295,193
5, 364,946
5,426,073
5,494,065
5, 548,725
5, 603,324
5, 653,447
5,709, 586
5, 761,673
5,822, 399
5,890,911
5,953, 549
6, 058, 000
1
Figures represent gross insurance written during the period and do not take
account of principal repayments on previously insured loans.
2
Includes Title I, Class 3, amounts that were shown prior to January 1943.
Table 1 2 . — F H L B A N K S — L e n d i n g operations and principal assets and liabilities
[Thousands of dollars]
L e n d i n g operations
October 1944
P r i n c i p a l assets October 31,1944
C a p i t a l a n d principal liabilities
October 31,1944
Federal Home Loan Bank
Advances
B o s t o n . __
New York
Pittsburgh
Winston-Salem
Cincinnati
Indianapolis- . .
Chicago
__
Des Moines
Little Rock
Topeka
. . .
Portland.
Los Angeles
•
$575
828
427
253
504
57
475
60
212
17
50
723
_
__.
_
__
._
...
O c t o b e r 1944 ( C o m b i n e d total)
S e p t e m b e r 1944
__'
October 1943
1
2
Repayments
Advances
outstanding
Cashi
Governm e n t securities
$787
2,055
1,151
2,720
1,660
1,262
2,146
2,316
577
1,235
516
2,444
$5, 516
13,297
10,199
4,495
5,365
8,022
8,886
4,834
4,027
3,176
607
12,089
$5, 096
1,013
4,334
1,145
1,841
817
7,056
1,128
791
1,761
825
2,137
$12,913
28,281
9,073
12, 500
25, 417
15, 022
16,005
13,251
9,667
7,579
9,416
13,048
4,181
18,869
80, 513
27, 944
6,993
25, 466
95, 201
23, 907
8,299
11, 981
126, 683
20, 743
142,904
Capital 2
Debentures
$20,003
27, 556
16,823
17, 758
25, 722
14,409
22,853
12,845
12,495
10,694
8,517
15,901
$2,000
7,000
6,000
0
2, 500
5,000
4,000
5,000
2,000
1,000
1,000
8,500
172,172
205, 576
156, 976
205,045
199,126
Member
deposits
Total
assets
Oct. 31,
19441
$1, 588
8,118
840
431
4, 519
4, 596
5,183
1,405
50
857
1,372
2,926
$23, 601
42, 720
23, 691
18,193
32, 757
24,028
32,059
19,268
14, 552
12, 555
10, 892
27, 357
44, 000
31, 885
281, 673
44,000
26, 945
276,654
66, 000
24,934
291,202
Includes interbank deposits.
Capital stock, surplus, and undivided profits.
92
Federal Home Loan Bank Review
Table 13—INSURED A S S O C I A T I O N S —
Progress of institutions insured by the FSLIC *
[Dollar amounts are shown in thousands]
Operations
Period and class
of association
Number of
associations
Total
assets
New
Private
New
repurmortgage private
investchases
loans
ments
Repurchase
ratio
ALL I N S U R E D
1943: October
NovemberDecember..
$2,439
2,442
2,447
$4,081,472 $81,929
4,127, 212 72,936
4,182, 728 70,973
$87, 692
90, 023
118,496
$45,104
43,137
37, 885
51.4
47.9
32.0
2,451
2,453
2,452
2,453
2,459
2,461
2,463
2,461
2,460
2,462
4, 218, 521
4, 287, 788
4, 327, 868
4, 374, 338
4,442,608
4, 583, 568
4, 619,867
4, 667, 060
4, 713, 815
4, 774,160
59, 704
73,164
87,163
91, 344
97, 454
105, 245
93, 305
104, 008
101,658
100,642
153, 276
94,831
104, 494
103, 713
109, 049
127, 945
155, 218
126, 641
122, 016
129,938
104,839
59, 890
56, 693
48,392
44, 403
46, 560
120, 349
64, 619
56,102
54,719
68.4
63.2
54.3
46.7
40.7
36.4
77.5
51.0
46.0
42.1
1943: October-__.
November..
December. .
1,468
1,467
1,466
2, 550,973
2, 580,481
2, 617,431
50, 576
44,804
43, 647
56,490
57,915
76, 677
26,825
24, 373
21, 569
47.5
42.1
28.1
1944: January
February....
March
April
May
June
July
August
September.
October
1,467
1,467
1,466
1,466
1,466
1,465
1,466
1,465
1,464
1,465
2, 637,410
2, 685, 310
2, 709, 897
2, 737, 017
2, 775, 665
2,881,276
2, 907, 974
2, 934, 647
2, 961,860
3, 000, 365
37, 076
44,144
53,883
57, 045
59, 229
64,474
57,164
64,400
63,489
61,965
100,496
61, 545
68, 276
68,549
72, 413
83,856
101, 500
82,105
79,126
85, 297
68, 509
37, 548
36,182
30,279
27, 676
25,969
79, 735
40,825
35, 570
33, 746
68.2
61.0
53.0
44.2
38.2
31.0
78.6
49.7
45.0
39.6
1943: October
November.
December..
971
975
981
1, 530,499
1, 546, 731
1, 565, 297
31,353
28,132
27, 326
31, 202
32,108
41, 819
18,279
18, 764
16, 316
58.6
58.4
39.0
1944: January
February...
March
April
May
June
July
August
September.
October
986
986
987
993
996
997
996
996
997
1, 581, 111
1, 602,478
1, 617, 971
1,637, 321
1, 666, 943
1, 617,971
1, 711, 893
1, 732,413
1, 752, 015
1, 773, 795
22, 628
29,020
33, 280
34, 299
38,225
33, 280
36,141
39, 608
38,169
38, 677
52, 780
33, 286
36, 218
35,164
36, 636
36, 218
53, 718
44, 536
42,890
44, 641
36, 330
22, 342
20, 511
18,113
16, 727
20, 511
40,614
23, 794
20, 532
20,973
68.8
67.1
56.6
51.5
45.7
56.6
75.6
53.4
47.9
47.0
1944: January.
February.-.
March
April
May
June
July
August
September..
October
FEDERAL
STATE
1
Balance sheet items, formerly shown each month, now appear only in the
February, May, August and November issues of the REVIEW.
Tables 1 4 and 15—now appear quarterly in the
February, May, August and November issues of the
REVIEW.
Canada Looks To Its Housing
{Continued from p. 78)
ratio has been increased to 90 percent of lending
value. Also, the earlier provisions for loans to communities for the construction of publicly owned
low-rent housing has been replaced by a system of
slum clearance grants to be drawn from a fund of
$20,000,000.
I t is in these rental housing assistance provisions
that tracings of the government's plan for action in
December 1944
the field of urban planning can be seen. Here special
terms with respect to joint loans may be secured
when the government is satisfied with the soundness
of planning in the particular locality concerned.
Likewise, insurance company investment in low- and
medium-rental housing projects and the assurance of
a minimum return are authorized, provided that such
developments are "in accordance or in harmony with
an official community plan satisfactory - to the
Minister.''
The new Act which became law with Royal assent
in the middle of August is based largely upon determinations by the Subcommittee on Housing and
Community Planning of the Advisory Committee
on Reconstruction. According to the final report of
the subcommittee, published in March of the current
year, the minimum housing need for Canada in the
first 10 years following the war was placed at 700,000
dwellings, while a building program of from 50,000
to 100,000 units was believed necessary for the first
post-war year. The Committee was also of the
opinion that "all methods of participation in the
financing and operation of housing schemes will be
needed and should be encouraged; public, private and
cooperative."
With respect to planning, which plays such an
important part in the new legislation, the Committee
made the following observation: "Town planning is
essentially the matter of using land in its most efficient and socially desirable way. Many people regard town planning as a matter of parkways, arterial
roads, and similar measures. B u t town planning
should mean the utilization of all land in terms of
long-range and carefully considered objectives. Obviously, this process must extend beyond the more or
less arbitrary boundaries of our present cities and
unite with organized rural planning wherever appropriate. The institution of at least the essentials of
town planning is both preliminary and basic to housing developments. The Committee, therefore, regards it as a step which must be taken at the earliest
possible moment in preparation for post-war housing
projects; and it must be added that on account of the
constitutional division of powers in Canada, town
planning requires the cooperation of all levels of government in the federal system. I t is equally true of
modern planning that it requires innovatory legislation and a spirit of initiative on the part of both
citizens and government. Only a wider appreciation
of the nature and techniques of town planning will
produce the co-operative action necessary from federal, provincial and municipal governments."
93
Table 1 6 . — H O L C — M o r t g a g e loans outstanding and properties on hand
Tabic 1 7 — G O V E R N M E N T S H A R E S Investments in member associations 1
[Dollar a m o u n t s are s h o w n in t h o u s a n d s ]
[Dollar a m o u n t s are shown in t h o u s a n d s ]
H o m e Owners' Loan
Corporation
Treasury
D u e on
property
sold
D u e on
original
loans
Period
1940: October.__
Properties owned
l
Book value N u m b e r
$310, 280
$1, 667, 296
T y p e of operation
$351,8
1941: O c t o b e r . _.
1, 449, 502
358, 922
282, 904
40, 615
1942: O c t o b e r - . .
1, 236, 432
366, 427
231, 950
31, 594
1943: O c t o b e r . . .
November
December
997, 970
978, 074
959, 818
370, 447
376,318
378, 284
129,005
108, 099
94,140
17.217
14, 509
12, 744
1944: January^__
February-.
March
April
May
June
July
August
September
Octobers-
939, 852
921, 987
902, 923
885, 304
856, 889
847,180
828, 977
810, 320
792. 620
774, 179
378, 248
377, 518
376, 205
375.093
373, 732
373, 732
370, 059
366, 561
362,874
358, 541
1
October 1935-September 1944:
Applications:
Number
Amount
Investments:
Number
Amount
Repurchases
Net outstanding investments
54, 433
82, 571
73, 789
64, 683
55, 456
45, 576
34,890
28, 771
23, 318
19, 009
15,641
Federals 2
Federals
State
members
1,862
$50, 401
4,708
$213, 601
997
$66, 595
5, 705
$280,196
1,831
$49, 300
$45, 796
3,504
4,241
$178, 316
$151, 889
26, 427
740
$45, 541
$37, 327
8,214
4,
$223,
$189,
34,
0
0
0
0
0
0
0
0
0
. 0
$1, 223
0
0
$9, 163
0
0
$2, 725
0
0
$11,888
T h i r d q u a r t e r 1944:
Applications:
Number
Amount
Investments:
Number
Amount
Repurchases
11, 267
10, 160
8,955
7,735
6,413
5,042
4,245
3,478
2,863
2,362
981
857
216
641
' Refers to n u m b e r of separate i n v e s t m e n t s , n o t to n u m b e r of associations in
w h i c h i n v e s t m e n t s are m a d e .
2
I n v e s t m e n t s in Federals b y t h e T r e a s u r y were m a d e b e t w e e n D e c e m b e r 1933
a n d N o v e m b e r 1935.
I n c l u d e s re-acquisitions of properties previously sold.
Table 18.—FKLBS—Membership in the Federal Home Loan Bank System
[Dollar a m o u n t s are s h o w n in thousands]
1943
1942
September
September
1944
Set t e m b e r
T y p e of i n s t i t u t i o n
Assets
Number
June
Number
Assets
Number
Assets
Number
Assets
All m e m b e r s
3, 706
$6,945,108
3,714
$6, 840, 241
3,764
$6,199, 087
3,808
$5, 617, 500
Savings a n d loan associations
3, 666
6,101, 752
3,671
5, 962, 319
3,720
5, 399, 517
3,765
4, 924, 055
_---_.
1.464
992
1, 210
2, 961, 860
1, 745, 993
1, 393, 899
1,465
992
. 1,214
2,881,276
1, 696, 352
1, 384, 691
1,471
965
1,284
2, 523, 737
1, 508, 558
1, 367, 222
1,466
916
1,383
2,214, 101
1, 293, 206
1,416,748
._.
22
473,198
22
463, 580
22
434, 289
20
369,146
.-
18
370, 158
21
414, 342
22
365, 281
23
324, 299
Federal
Insured state
Uninsured state
'
._ _
M u t u a l savings b a n k s
-
-
.. -
„
I n s u r a n c e companies
_
Table 1 9 . — W A R HOUSING—Progress of war-housing construction progra m
T o t a l n u m b e r of a c c o m m o d a t i o n s
allocated to localities
N u m b e r of accommodal ions u n d e r
construction
N u m b e r of a c c o m m o d a t i o n s
completed
T y p e of c o n s t r u c t i o n
As of
Sept. 30,
1944
P r i v a t e l y financed:1
Conversion
. _
N e w construction
._
__
..
P u b l i c l y financed:2
Single-person u n i t s , new c o n s t r u c t i o n
Family units:
Conversion ( H O L C )
N e w construction 3
Stop-gaD a c c o m m o d a t i o n s
. ..
_.
As of
! J u n e 30,
1
1944
As of
! M a r c h 31,
1944
!
As of
Sept. 30,
1944
209.182
835,363 \
206,987 \
826.784
207.573
822,839
4,017
56,610
165,901
165. 101 ;
163,648
2,449
48.318 1
532.752 i
79,248 |
1
52,743 '
525,478
73.808 !
54,349
522,917
68,807
5, 676
19,044
7, 698
As of
j J u n e 30,
1944
4, 499
68, 341
As of
M a r c h 31,
1944
As of
Sept. 30,
1944
As of
J u n e 30,
1944
As of
M a r c h 31,
1944
3, 723
73, 263
192,123
737, 590
188, 516
701,109
185, 392
664,102
3, 307
8,087
162, 726
160, 481
153, 917
10,880
32, 338
10, 307
17,181
52, 566
6, 561
42,162
504, 803
68, 834
35, 385
488, 372
60. 543
25. 136
462. 202
56. 230
1
R e p r e s e n t s p r i v a t e l y financed w a r housing built w i t h P-55 priority orders plus an e s t i m a t e d 302,000 n e w u n i t s a n d 175,000 converted u n i t s b u i l t w i t h o u t P-55
o r d e r s . T h e totals include a small n u m b e r of new and converted single-person u n i t s .
2
D a t a for M a r c h a n d J u n e 1944 revised as of S e p t e m b e r 30,1944. Fxcludes s u s p e n d e d , cancelled a n d limited projects, b u t includes u n i t s in completed projects w h i c h
h a v e been r e m o v e d to other localities, sold, converted to non-residential use or placed in s t a n d b y s t a t u s . As of S e p t e m b e r 1944 such u n i t s n u m b e r e d 64,905 (18,235
family u n i t s , 12,445 single-person u n i t s a n d 34,225 stop-gap a c c o m m o d a t i o n s ) ; as of J u n e 30,1944 there were 47,656 u n i t s (13,135 family u n i t s , 11,366 single-person u n i t s , a n d
23,155 stop-gap a c c o m m o d a t i o n s ) ; as of M a r c h 31, 1944 there were 31,747 u n i t s (7,668 family u n i t s , 6,421 single-person u n i t s , and 17,658 stop-gap.accommodations.)
3
I n c l u d e s a small n u m b e r ol u n i t s in converted projects b u i l t b y F P H A a n d other Federal agencies.
94
Federal Home Loan Bank Review
Home Front
{Continued from p. 79)
new "area sampling" system by which
small regions are designated as sampling units. By using a sample of about
4 percent of t h e population, for instance, reasonably reliable estimates
of t h e t o t a l population for individual
states a n d for cities of 100,000 or more
may be prepared.
T h e results of a carefully planned
and a d e q u a t e sampling will be comparable in m a n y respects to a complete
census. T h e survey, in addition t o
providing a representative cross-section of families, dwelling units, or
households, will furnish an effective
index of farms, which may be import a n t in marketing. The use of these
samples in the future will result in
economies of administration.
The
d a t a will reflect, too, recent shifts in
population providing a picture of the
Nation at t h e time of the survey. T h u s
it will be possible to have available
current statistical material at a time
when a regular census is not being
taken.
Prcfob warehouses for
quick reconversion
In order to fill the Reconstruction
Finance Corporation's demand for
easily demountable structures in which
to store surplus war machinery, a
contract for 1,200,000 square feet of
steel has been awarded, with contracts
for an additional 14,000,000 square
feet of this type of storage space to
follow shortly.
In order to m a k e reconversion
speedy a n d simple, t h e R F C has devised a plan whereby, instead of hauling heavy machinery about, steel
warehouses will be erected around t h e
machinery. Side panels will be removable, so t h a t t h e equipment can
be rolled out easily for shipment to
purchasers, or to be moved to Government disposal centers, where the warehouse units can be used again. It is
thought t h a t these prefabricated buildings will be economical as well as
efficient. T h e units will cost a b o u t
75 or 80 cents per square foot, in
comparison with permanent warehousing costs (including an overhead
crane) of approximate!} 7 $3.55 per
square foot.
December 1944
FOR THE FUTURE
In the midst of war, many towns and
communities are making their plans "For
the Future^ in order to have healthier,
more attractive cities, and to provide employment for the returning
servicemen
and workers. From time to time, as information becomes available, the R E V I E W
will publish accounts of some of the more
interesting of these.
Louisville organizes
for peace
When Harpers7 magazine did a study
of Louisville a few years ago, it was
labeled "American Museum Piece," as
Selden Menefee pointed out in his
recent column in t h e Washington Post.
This traced the steps t h a t have been
t a k e n in the development of the city,
a n d added t h a t now, however, it is
wide-awake and modern. Since the
war, 70,000 new people have come to
Louisville—making a metropolis of
half a million. T h r o u g h t h e efforts of
Wilson W y a t t , Mayor, and M a r k
Ethridge, publisher of two of the city's
newspapers, a planning body, the
Louisville Area Development Association, was organized. As a result of a
research program, citizens' committees
representing government, labor and
business were set up for all factors of
planning, with experts called in for
technical studies.
A survey of industrial prospects,
made by t h e Committee for Economic
Development, agrees wTith t h e Bureau
of Labor Statistics estimates t h a t
30,000 of t h e 100,000 industrial workers will be dropped after the war.
However, 20,000 of t h e migrants are
expected to r e t u r n to their former
homes.
T h e Area Development Association
is working on plans for t h e city. A
highway will cut across the city, bisecting t h e blighted area on one side
of t h e city center, while a slum area
on t h e other side will be removed in
order to set up a municipal center.
T h e business section will be encompassed so t h a t new slum areas will not
develop, and propert ; y values and
taxes will be stabilized. " T h e P o i n t , "
a particular blighted area which is
often flooded by the Ohio River, will
be filled in and turned into a park, and
it is expected that there will be playgrounds within a half mile of every
city residence. T h e landing fields of
two large aircraft plants will pro-
vide a new airport; and schools,,
libraries, and hospitals are being
planned. Housing needs, too, are
being considered in t h e over-all planning of the city.
Since t h e city is limited by law to a
low t a x rate, a n d could not raise more
t h a n $10,000,000 by issuing bonds, t h e
m a y o r has proposed purchasing t h e
Louisville Gas a n d Electric Company,
which must be sold under t h e terms of
the Holding Company Act. This
would yield a $2,000,000 profit annually. T h e master plan does not call
for Federal funds, except to help build
a few highways.
Planning a home in the
Memphis manner
A H o m e Planners' I n s t i t u t e in
Memphis, Tennessee, is being sponsored by t h e Committee for Economic
Development of t h e Chamber of Commerce and the Board of Education.
I n order to encourage savings and war
bond purchases, and to prepare future
home owners for construction to provide quick post-war employment, the
I n s t i t u t e plans to hold free classes.
T h e sponsors of t h e I n s t i t u t e feel t h a t
t h e construction industry will probably
be able to absorb discharged servicemen a n d manpower released from war
industries faster t h a n any other line of
business.
Subjects for the lectures wTill include:
selecting a homesite, designing t h e
home, financing, building materials,
contractors and home-builders, and
other aspects of building, buying and
furnishing a home. T h e symposiums
will be presented twice weekly in p u b lic school auditoriums, and outstanding authorities will lecture a n d lead
discussions. These sessions are open
to men a n d women, and the Institute
emphasizes t h a t nothing will be offered
for sale during the evening.
Other objectives of the Institute are
to have various branches of t h e construction and allied industries acquaint
t h e prospective purchaser and t h e
public with t h e features t h a t the new
home will contain, a n d to prevent delays in the post-war period by urging
people to have plans drawn at this
time. I t is pointed out t h a t by purchasing or modernizing at once when
building can be resumed, a better job
for less money can be secured. By
planning now, the period of transition
will be shortened.
95
FEDERAL HOME LOAN BANK DISTRICTS
1Q0>
M M
$
BOUNDARIES OF FEDERAL HOME LOAN BANK DISTRICTS
FEDERAL HOME LOAN BANK CITIES.
OFFICERS OF FEDERAL HOME LOAN BANKS
BOSTON
CHICAGO
B . J . R O T H W E L L , C h a i r m a n ; E . H . W E E K S , Vice C h a i r m a n ; W. H .
N E A V E S , President; H . N . F A U L K N E R , Vice President; L . E . D O N O V A N ,
S e c r e t a r y - T r e a s u r e r ; P . A. H E N D R I C K , Counsel; B E A T R I C E E . H O L L A N D ,
Assistant Secretary.
C. E . B R O U G H T O N , C h a i r m a n ; H . G. Z A N D E R , J R . , Vice C h a i r m a n ; A. R .
G A R D N E R , P r e s i d e n t ; J. P . D O M E I E R , Vice P r e s i d e n t ; L A U R E T T A Q U A M ,
Assistant Treasurer; C O N S T A N C E M . W R I G H T , Secretary; G E R A R D M .
U N G A R O , Counsel.
DES
NEW
MOINES
YORK
G E O R G E M A C D O N A L D , C h a i r m a n ; F . V. D . L L O Y D , Vice
Chairman;
N U G E N T F A L L O N , P r e s i d e n t ; R O B E R T G. C L A R K S O N , Vice P r e s i d e n t ;
D E N T O N C. L Y O N , Secretary; H . B . D I F F E N D E R F E R , Treasurer.
E . J . R U S S E L L , C h a i r m a n ; E . A. P U R D Y , Vice C h a i r m a n ; R . J . R I C H A R D SON, President-Secretary; W . H . LOHMAN, Vice President-Treasurer;
J . M . M A R T I N , Assistant Secretary; A. E . M U E L L E R , Assistant T r e a s urer; E M M E R T , J A M E S , N E E D H A M & L I N D G R E N , Counsel.
PITTSBURGH
LITTLE ROCK
E . T . T R I G G , C h a i r m a n ; C. S. T I P P E T T S , Vice C h a i r m a n ; R . H . R I C H ARDS, P r e s i d e n t ; G. R . P A R K E R , Vice President; H . H . G A R B E R , Secr e t a r y - T r e a s u r e r ; W I L L I A M S. B E N D E R , Counsel.
B . H W O O T E N , C h a i r m a n ; W . P . G U L L E Y , Vice C h a i r m a n ; H . D .
W A L L A C E , P r e s i d e n t ; J . C . CONWAY, Vice P r e s i d e n t ; R . T . P R Y O R ,
Secretary; W . F . T A R V I N , Treasurer.
TOPEKA
W INSTON-SALEM
H . S. H A W O R T H , C h a i r m a n ; E . C. BALTZ, Vice C h a i r m a n ; O. K . L A R O Q U E , President-Secretary; J o s . W . H O L T , Vice President-Treasurer.
PORTLAND
CINCINNATI
H A R R Y S. K I S S E L L , C h a i r m a n ; V M . M E G R U E B R O C K , Vice
P . F . GOOD C h a i r m a n ; A. G. H A R T R O N F T , Vice C h a i r m a n ; C . A. S T E R L ING, President-Secretary; R . H . B U R T O N , Vice President-Treasurer;
J O H N S. D E A N , General Counsel.
Chairman;
W A L T n D . SHULTZ, P r e s i d e n t ; W . E . J U L I U S , Vice President-Secretary;
A. L . M A D D O X , T r e a s u r e r ; T A F T , S T E T T I N I U S & H O L L I S T E R ,
General
Counsel.
B E N A. P E R H A M , C h a i r m a n ; H . R . G R A N T , Vice C h a i r m a n ; F . H .
JOHNSON, President-Secretary; I R V I N G BOGARDUS, Vice PresidentTreasurer; M r s . E . M . J E N N E S S , Assistant Secretary; V E R N E D U S E N BERY, Counsel.
INDIANAPOLIS
Los A N G E L E S
H . B . W E L L S , C h a i r m a n ; F . S. C A N N O N , Vice Chairman-Vice President;
F R E D . T . G R E E N E , President-Secretary; G. E . O H M A R T , Vice President-
D . G. D A V I S , C h a i r m a n ; C . A. C A R D E N , Vice C h a i r m a n ; C . E . B E R R Y ,
Vice President; F . C . N O O N , Secretary-Treasurer; H E L E N F R E D E R I C K S ,
Attorney.
T r e a s u r e r ; H A M M O N D , B U S C H M A N N , R O L L & A L E X A N D E R , Counsel.
S U B S C E I P T I O N P R I C E OF R E V I E W . The REVIEW is the Federal Home Loan Bank Adnnnistration'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 animal subscription price, which covers the cost of paper and printing, is $1. Single copies will be sold at 10 cents. Outside
of the United States, Canada, Mexico, and the insular possessions, subscription price is $1.60; single copies, 15 cents. Subscriptions should be sent to and copies ordered
from Superintendent of Documents, Government PrintinglOffice, Washington 25, D. C.
A P P R O V E D BY T H E B U R E A U OF T H E B U D G E T .
@FedFRASER