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. 13, No. 3
Washington, D. C.
DECEMBER 1946
IN THIS ISSUE
Revised Housing Program Announced
How Associations are Reducing Examination Time
A Management Survey on Savings Campaigns
Home Mortgage Debt at Record Level
Rocky Mount Solves Its Housing Problem
™- REVIEW'»
Brief
Revised housing program announced
During December, t h e Government's Housing Program underwent
a substantial revision to bring it into line with t h e announced policy
of relaxing controls wherever possible. I n 1947, t h e emphasis will
be on rental housing. Priorities a n d price ceilings on new construction have been dropped, b u t veterans preference will be maintained on
units built for sale or rent. Non-veterans will be allowed t o build
for their own use, however. A new Housing Expediter a n d new Administrator for t h e N H A were also appointed. [Page 67.]
How associations are reducing examination time
By Verne C. Bonesteel
D a y - t o - d a y experiences of F H L B A examiners working throughout
t h e country were drawn on t o provide some suggestions for reducing
t h e time necessary for a d e q u a t e examinations.
Observations of these examiners as t o methods actually used b y
associations included: an a d e q u a t e b u t not cumbersome accounting
system, emphasizing uniformity of procedure a n d consistency of
recording similar transactions; a good filing system; internal check a n d
control. Accurate a n d rapid calculation of mortgage loan interest
rates, a n d general orderliness a n d efficiency in daily operations were
also stressed. [Page 69.]
A management survey on savings campaigns
A survey of more t h a n 50 managing officers of savings a n d loan
associations t h r o u g h o u t t h e c o u n t r y showed widespread agreement
regarding t h e importance of a t t r a c t i n g new private capital t o finance
expanded mortgage lending activity.
I n encouraging new business, chief emphasis was placed on sound
public relations. T h e value of well satisfied old customers was stressed
as t h e best source of new ones. Other i m p o r t a n t items mentioned
were: t h e open-door policy in accepting savings, participation in civic
affairs, a n d well located offices. [Page 73.]
Home mortgage debt at record level
T h e t o t a l home mortgage debt was estimated a t almost $20 billion
a t last year-end after a 12-month gain which all b u t eliminated t h e
previous 3-year net reduction. If, as now anticipated, t h e 1946 rise
is between $3-4 billion, t h e total a t t h e end of this year will be above
$23 billion for t h e first time.
T h e only 1945 increases in portfolios were a m o n g savings a n d loan
associations, commercial banks a n d "individuals a n d others." Changes
in distribution of t o t a l debt followed closely this p a t t e r n . New lending of $4.7 billion was t h e largest a n n u a l figure since 1929; only life
insurance companies failed to gain. [Page 77.]
October highlights
The 8-percent gain in the recording of real estate mortgages sent the
total volume of real estate financing
above the billion-dollar mark for the
first time since these data have been
available. The 10-month t o t a l is in
excess of $8.7 billion.
New mortgage loans m a d e by all
savings a n d loan associations were
also higher t h a n in t h e preceding
m o n t h . October's t o t a l of $326
million raised t h e cumulative figures
for t h e year above $3 billion—
double t h e activity for t h e same
period of 1945.
T h e net inflow of new savings into
all savings a n d loan associations
t u r n e d upward. T h e $88-million
excess of new investments over withdrawals was nearly 50 percent higher
t h a n in September, a n d also above
t h e t o t a l for t h e corresponding
m o n t h last year.
Outstanding FHLB advances to
member institutions now exceed a
quarter of a billion dollars—almost
three times t h e volume in October
1945.
P e r m i t s were issued for 58,000 new
privately financed residential u n i t s —
slightly higher t h a n t h e September
totals. October was the best month
so far in the production of building
materials, with m a n y new all-time
or a t least postwar highs being registered in m o s t critical items. This is
t h e encouraging element in t h e construction outlook.
Over-all
industrial
production
reached a n o t h e r new peacetime peak
as t h e F R B index a d v a n c e d 2 points
to 182 percent of t h e 1935-1939
average.
Rocky Mount solves its housing problem
I n less t h a n a year, c o m m u n i t y action channeled through the Mayor's
Emergency Housing Committee of Rocky Mount, N o r t h Carolina, got
t h a t city past its housing crisis a n d headed for normal operations.
Savings a n d loan associations have financed 90 percent of these new
homes, all of which are privately financed p e r m a n e n t construction a t
price ranges well under national maximums. T h e 400 completions
scheduled for early 1947 will mean a new house for about 1 out of
every 70 persons in Rocky M o u n t . [Page 81.]
723131—46
1
65
FEDERAL HOME LOAN BANK
IT'
Contents
Page
REVISED H O U S I N G P R O G R A M A N N O U N C E D
67
H O W ASSOCIATIONS ARE REDUCING E X A M I N A T I O N
TIME, by Verne C. Bonesteel
69
A
m
No. 3
DECEMBER 1946
The Federal Home Loan Bank Review
is published monthly by the Federal
Home Loan Bank Administration under
the direction of a staff editorial committee. This committee is responsible
for interpretations, opinions, summaries,
and other text, except that which appears in the form of official statements
and signed articles.
Communications concerning material
which has been printed or which is desired for publication should be sent to
the Editor of the Review, Federal Home
Loan Bank Building, Washington 25,
D. C.
*
*
*
The Federal Home Loan Bank Administration assumes no responsibility for
material obtained from sources other
than itself or other instrumentalities of
the Federal Government.
MANAGEMENT
PAIGNS
SURVEY
ON
SAVINGS
CAM73
H O M E M O R T G A G E DEBT A T RECORD LEVEL
77
ROCKY M O U N T SOLVES ITS H O U S I N G P R O B L E M . . . .
81
STATISTICAL D A T A
New family dwelling units
Building costs
Savings and loan lending
Mortgage recordings
Gl lending
F H A activity
Federal Home Loan Banks
Insured savings and loan associations
Share investments and repurchases
Quarterly tables
90-91
91-92
92-93
93-94
94
94
94
95
95
96
SPECIAL FEATURES
News notes
Worth repeating
San Francisco Bank President
Monthly survey
Directory changes of member, Federal and insured institutions
Proposed amendments to rules and regulations
68
76
79
85
89
89
*
Contents of this publication are not copyrighted
•
N A T I O N A L HOUSING AGENCY
Raymond M. Foley,
Administrator
FEDERAL HOME LOAN BANK
ADMINISTRATION
John H. Fancy, Commissioner
66
SUBSCRIPTION P R I C E OF R E V I E W . — A copy of the R E V I E W is sent to each member and insured institution w i t h o u t charge. To others t h e a n n u a l subscription price,
which covers the cost of paper and printing, is $ 1 . Single copies will be sold a t 10
cents. Outside of the United States, Canada, Mexico, and the insular possessions, subscription price is $1.60 ; single copies, 15 cents. Subscriptions and orders for individual copies should be sent w i t h r e m i t t a n c e s to t h e Superintendent
of
Documents,
Government Printing Office, Washington
25, D. C.
APPROVED BY THE BUREAU OF THE BUDGET
Federal Home Loan Bank Review
REVISED HOUSING PROGRAM ANNOUNCED
Sweeping changes in the Government's Housing Program were
announced recently by the President. Emphasis during the coming
year will be on rental housing, with all priorities and price ceilings
on new construction eliminated.
•
SUBSTANTIAL changes have been made in
the Government's Housing Program following
the resignation of Wilson W. Wyatt on December
4, and the appointment by the President on
December 12, of Frank R. Creedon and Raymond
M. Foley to the positions of Housing Expediter
and NHA Administrator, respectively. On December 14, the President issued a detailed statement of the policies of the 1947 program.
Highlights of the new program are as follows:
(1) Any one, veteran or non-veteran, may now
build a home for personal occupancy. However,
veterans preference is being retained for all new
construction built for sale or rent.
(2) The former $10,000 ceiling on the sales
price for a new house will no longer be in effect.
There will be restrictions, however, on the total
floor areas of new dwellings.
(3) The priorities system for obtaining scarce
building materials is being dropped, although
outstanding priorities will be honored.
The
production of critical building materials will
require the continued allocation of a few raw
materials during the first quarter of 1947.
(4) In the case of rental housing projects, the
$80-a-month ceiling will be applied on a projectaverage basis, rather than to each individual unit.
Rentals will continue to be established for individual houses built for rental purposes.
(5) Restrictions on non-residential construction
will be relaxed as rapidly as the increased volume
of building materials will permit.
In his statement announcing the new housing
policy, the President said, " T h e main point of
emphasis for 1947 is rental housing. Within the
total number of homes to be built, it is of major
importance that a maximum number of rental
units be provided. We are planning financial and
other aids that will encourage builders to produce
units for rent."
The new Housing Expediter and the NHA
Administrator ofEcially began their duties on
December 15. Mr. Frank R. Creedon, a native
of Massachusetts, comes to his position as Housing
Expediter from the Civilian Production Administration where he had been Deputy Administrator
December 1946
in charge of all construction and housing activities.
During the early part of the war, Mr. Creedon
handled construction of munitions plants for
the Corps of Engineers, United States Army.
In 1943, he went with the War Production Board
in charge of the construction of synthetic rubber
plants. Early in 1944, he became resident manager in charge of the construction of the atomic
bomb plant at Oak Ridge, Tenn., for which he later
received the medal of merit from the Secretary of
War. After the war ended, Mr. Creedon held
important posts with the Reconstruction Finance
Corporation and the War Assets Administration
before going with CPA. From 1934-1940, he
was with the Public Works Administration.
The new NHA Administrator, Mr. Raymond
M. Foley, is well known to members of the F H L B
System and other home financing institutions.
He is a native of Michigan, and before entering
Government service worked on newspapers in
Detroit and Pontiac, where he became city and
managing editor of the Daily Press.
In October 1934, Mr. Foley was appointed State
Director for Michigan of the newly established
Federal Housing Administration. He served in
that capacity until July 1945, when he was appointed by the President as FHA Commissioner.
Mr. Foley will remain in charge of FHA, in addition to his duties as NHA Administrator.
Relaxing controls
In a Presidential statement issued at the time
of Mr. Wyatt's resignation, it was pointed out
that: " T h e problem has been recognized, it has
been measured, and a successful organization has
been set up to achieve the goals, as is evidenced
by the increase in housing construction, and the
increases in the production of building materials.
The remainder of the program must now be faced
within the framework of the Government's announced policy of relaxing controls. Balance of
materials and equipment must be achieved. The
program must be given its proper emphasis in the
over-all economy and controls must be relaxed as
rapidly as possible without threatening the success of the housing program."
67
Money in circulation
at record level
Money in circulation on October 31
reached a new high of $28,604,000,000
to exceed the previous record of
$28,507,000,000 on December 31,
1945, the Treasury Department reported. The $95-million gain registered during this past October,
however, was considerably smaller
than the increment of $226 million
in the same month last year.
After attaining a record level last
December, money in circulation
dropped sharply in January and also
declined, though by smaller amounts,
in February and March. Turning
upward again from the March 31
level of about $27,875,000,000, it has
gradually but consistently increased
to the October 31 peak.
Weekly output of
prefabs passes 1,000
Weekly shipments of factory-built
homes in October exceeded the
1,000-mark for the first time, with
shipments during the month totaling
4,700. This was 1,000 more than in
September and reflects the largest
monthly increase since the start of
the program, according to NHA
reports. Production for the first 10
months of the year aggregated
30,300 units—substantially below
the goals set early this year.
Encouraging reports on
lumber output
For lumber generally the prospect
of achieving a balance between
supply and demand continues bright,
according to CPA reports, combining
data from the Bureau of the Census
and the U. S. Forest Service.
September was the fifth consecutive
month with a total output of more
than 3 billion board feet.
This
sustained rate of record production
has enabled mills and concentration
yards to make a good start toward
rebuilding their stocks. More than
68
a billion feet was added to these
inventories' during the second and
third quarters of this year, regaining
the ground which had been lost in
the preceding two years. Retail and
wholesale distributors were also able
to get their stocks back to the level
on hand at the beginning of this year.
If current estimates of requirements are correct, the CPA states
that the lumber industry will be
much better prepared to handle 1947
housing construction and make its
contribution to shortening the building time.
Priorities issued by
FHA up 20 percent
The Federal Housing Administration approved the issuance of priorities for the construction of approximately 63,000 new privately financed
dwelling units during October—a 21percent increase over the September
total. In addition, HH ratings were
granted for 11,500 conversion units.
Through October, more than 1 million homes and apartments had been
authorized for construction or conversion under the Veterans Emergency Housing Program.
Semi-annual report
of banks
The total assets of the 14,626 active commercial and savings banks
in the United States, amounting to
almost $773 billion on June 30, were
down 3 percent during the first half
of this year. According to a recent
report of the Comptroller of the
Currency, most of the decline was
attributable, on the one hand, to the
retirement of U. S. Government obligations held by the banks and, on
the other, to the decline of Government funds on deposit with these
institutions.
Total loans increased 4 percent in
the first six months, but loans on real
estate were up 13 percent in the
same period. Real estate loans rose
$1,166,000,000 from January to
June, in contrast with an increase of
only $237,000,000 in the preceding
half-year.
Deposits of individuals, partnerships and corporations were a little
more than $6 billion, or 5 percent,
above the totals at the beginning of
this year, with the gains about
equally divided between demand and
time deposits.
PROGRESS OF THE VEHP—OCTOBER 3 1 , 1946
882,200 units started account for 74 percent of 1946 goal of 1,200,000
Units
started
Program component
Total
1
New permanent
2
_
3
Conventional
Factory-built 4 _
Temporarv re-use 5
Conversions6
Trailers 7
__
___ _
_
_ __
_
.__
Units
completed
882, 200
500, 400
579, 900
341,200
549, 600
30, 300
215,000
51, 100
36, 200
72, 600
50, 400
36, 200
1
2
October data preliminary.
Includes factory-built units; breakdown of conventional and factory-built completions not
available.
3
Adjusted to exclude factory-built units; includes approximately 6,500 permanent units
financed
by New York State.
4
Factory shipments.
s Family-equivalent units financed by Federal and non-Federal funds.
6 Figures for previous months have been revised.
7 Factory shipments.
Federal Home Loan Bank Review
HOW ASSOCIATIONS ARE REDUCING
EXAMINATION TIME
Managing officers frequently ask, "What can we do to reduce
the time required for the examination and audit of our association?" To provide practical and constructive answers, this
article is drawn from the day-to-day experiences of examiners
on the job throughout the country.
By VERNE C. BONESTEEL, Chief Examiner
•
T H E recently published combined statements
of members of the Federal Home Loan Bank
System show that the average annual cost of
assessments, audits and examinations of savings
and loan members is less than three-fourths of one
cent out of each dollar of gross operating income.
Approximately the same total is shown in the
combined operating ratios of insured associations.
Although small in relation to other expenses, it
is understandable that these costs are a matter of
some concern. Virtually all other costs have
been mounting and the operating margin has
narrowed. Most managers value annual examinations; and yet a few managers feel that the
costs are higher than necessary.
Prior to the inception of the Federal examining
system there was very little uniformity in procedures and thus there was no occasion or opportunity to discuss any one plan or coordinated
program. In some states examinations were
thorough. In others, examinations were cursory.
In still others, no examinations were made at all.
Recent years have brought far more uniformity,
with the result that there has been more interest
in the subject.
The attitude of management toward examinations has generally been cooperative. Legislation,
including provision for audits and examinations,
has usually been initiated and endorsed by officers
and directors of savings and loan associations.
The interests of good management require intelligent and efficient examinations. Managers and
directors receive a measure of protection from these
periodic examinations of accounts and reviews of
condition and operations. The general public,
particularly the investing member, expects and
assumes that financial institutions are competently
examined and supervised.
Responsibilities have thus been placed upon
both Federal and state examining and supervisory
December 1946
departments. Every effort is made by the Federal Home Loan Bank Administration to hold
examination time and costs to a minimum consistent with those responsibilities. In the past
year the Administration has made substantial reductions in procedures and is continually alert for
such changes when they represent sound practice.
I t should be recognized, however, that saving of
examination time is a joint or mutual responsibility. I t is a program to which the associations
can contribute materially. The cooperation of
the institutions toward this effort has been very
helpful; and the purpose of this article is to
present the observations of examiners as to
methods which are actually used by associations
to assist in the reduction of the time required to
complete examinations.
Examination costs are determined generally by
three factors: first, the amount of information to
be obtained; second, the availability of such information from the association's records; and third,
the efficiency of the examiner. Examiners themselves have little or no control over the amount of
information deemed necessary for supervisory purposes. As to the third factor, the Administration
and the state supervisory authorities must be
careful in the selection of examiners and must
have methods of training them and of overseeing
their work.
Obtaining necessary data
This article will deal with the second factor—
the problem of obtaining the necessary information
from the association's records. The cooperation
of associations has a primary bearing on the
availability of such material. Where the examiner finds a cooperative attitude, as he usually
does, the question is presented as to what specifically can be done by management to facilitate
the examination. Most phases of the work must
be performed by the examiner. Other phases
69
may be done jointly. The association's employees
can usually be helpful iu pointing out sources of
information in the files, in checking tapes run by
an examiner, and in preparing certain schedules
which need only be test-checked by an examiner.
In some associations the manager delegates an
employee to ascertain from the examiner in charge
just what can be done by office personnel, arid this
employee then sees to it that such assistance is
rendered.
Since the examiner as well as the managing
officer must obtain information largely from the
books and records, most of these observations pertain, first, to the accounting system. The system
should conform basically to the uniform standard
system. Not many years ago there were nearly
as many different bookkeeping systems as there
were associations. Greater uniformity not only
saves time for the examiner but it is beneficial to
the business as a whole. Much progress has been
made. As of September 1940, the standard
accounting system was used by 75 percent of all
insured institutions. At present it is used by
approximately 84 percent of all insured associations.
What are the essentials of any accounting system? The system should be adequate but not
cumbersome. Entries should be clearly described
or identified. The test is whether the records
readily reveal what happened, or whether the
examiner or anyone else must call upon someone's
memory. Recently in a six-million-dollar association where the number-two man had been elevated
to the position of manager and all the other employees had served the association less than a year,
the manager commented that his job was extremely difficult because "you know in this business you rely considerably upon memory.'' This
situation is serious in many associations which
have grown rapidly from a one-man operation to a
large organization requiring departmentalization.
To do the work accurately and efficiently and
to make improvements from time to time, it is
important that any association employ a competent head bookkeeper. Too often the bookkeeping staff, although competent, is too small to
keep the work current. The importance of keeping records posted up to date cannot be overemphasized.
There should be consistency of recording similar
transactions. An account should be used only
for the functions for which it was established.
Journal entries should be adequately explained
and properly authorized. Where a cash book is
used, all pages should be footed and the totals carried forward. If a window-posting machine is
used for audit purposes, the machine should be
kept under proper control. The companies which
sell machines are particularly interested in the
audit phase of the machine's operation and will
gladly furnish information which will enable the
association to obtain the maximum protection.
They will also assist in effecting the most complete
use of the machine.
Special records
I n order that loan practices and facts may be
summarized, certain information is necessary.
With very little extra work, the association can
materially assist by keeping that information so
that it need only be checked by the examiner.
Some institutions maintain in duplicate a mortgage
loan register incorporating minimum columnar
information. Such a chronological record is also
useful to associations in showing quickly the lending volume between any two dates. An alterna-
fypical Mortgage Loan Register
ORIGINAL
T
RECORD OF NEW MORTGAGE LOANS
DATE
N A M E
ADDRESS
IT3ff
APPRAISAL
i[
i
~ Z7Z
„re
.,
I
™
11
J
INSURANCE J S
MISC.
«""»
llll
H
|
1
ait:
70
«-
vj
itt
^^_^>
K
Federal Home Loan Bank Review
Sample Mortgage Loan "Line C a r d "
tive plan which many examiners and managers
consider preferable is for the association to head
up "line cards" which are left in the association
between examinations. The examiner when he
arrives can readily bring these down to date. An
example of each method is given in the accompanying illustrations.
Ledger cards for mortgage loans should contain
the following: address of the property and of the
owner, date, original amount, appraised value,
interest rate, monthly payment (interest, principal
and taxes), recast date, reference to additional
loans on same property and additional collateral,
type of property, term of loan, advance payments
and contractual arrearage record. Supervisors in
analyzing lending and appraisal policies need to
know tha purchase price of a property. I t is less
time consuming if the examiner does not have to
search for such information on the loan application, the appraisal report or elsewhere. This
figure could also very well be inserted on the ledger
card and need then be merely test-checked to
confirm the correctness of the association's records. Numbers assigned to loans should be new—
old numbers of closed accounts should not be
used.
December 1946
The association should know at any time the
volume of loans at the different rates. I t is
helpful to management and examiner, therefore,
if mortgage loan ledger cards are segregated
according to interest rates. Another segregation
may be made for GI loans and for FHA loans.
If not segregated by general ledger controls, a
supplementary bookkeeper's control could be
made at the end of each month.
Importance of proper filing
The second suggestion for facilitating an examination is a good filing system. I t has been
proved by experience that a flat filing system for
mortgage loans will save considerable time and
money in contrast with the pouch system. This
flat folder should be properly tabbed as to contents.
I t is suggested that an inventory be maintained of
documents in each folder and that documents be
filed in the same consecutive order. The numerical rather than alphabetical system of filing
individual loan and contract records is recommended. Folders should be filed in the same
sequence as mortgage loan cards. The numerical
filing of documents will facilitate the examination
of the files for supporting documents. The
71
correspondence file for each loan should also be
filed in numerical sequence.
Some institutions have grown so rapidly that
working and filing space is inadequate. When
space will permit, all incomplete document files
for mortgage loans should be kept in a separate
cabinet or drawer and should be completed
before being placed in the regular files. Invoices
supporting expense items should also be filed in
flat folders by general ledger account number.
There should be a separate file maintained between
examinations for all closed out or filled ledger
cards that pertain to mortgage loans, real estate
contracts and share accounts.
Internal checks
Much has been said and written and much has
been accomplished in the past three years regarding the third suggestion—improvement of the
system of internal check and control. Improvements in associations' internal control have
enabled directors and managers better to discharge
their trusteeship responsibilities, and have enabled the examiner to dispense with some of the
auditing procedures which otherwise would be
necessary.
The term "internal control" refers to the
methods employed by the association to safeguard
its assets and to check the accuracy ot its records.
The basic principle is that the several duties of the
personnel be so separated and yet coordinated that
there is a constant check of the work of one department or employee against that of another, so
that no one person has complete control over any
entire important transaction. In addition to the
division of work and responsibilities and the
proofs as the work is in flow, there is the necessity
of periodic internal audits.
Trial balance proofs of subsidiary ledgers should
be taken at least monthly. Tapes should be
preserved and some one in authority should determine the accuracy of the proof. Stubs ot full
paid or investment shares should be proved
monthly, the same as the subsidiary ledgers. A
master inventory will be of assistance in this
latter proof.
The petty cash funds should be maintained on
an imprest basis, and properly supported by
authorized vouchers and periodically applied to
operating accounts.
Paid checks, after the bank accounts have been
reconciled, should be kept with the statements
72
and, after the examination or audit has been made
should be filed numerically without regard to the
date paid.
Recording interest
Now, when associations have large bond
accounts, the management must be able to verify
income readily, and a saving in examination time
would result from more adequate records of
investment holdings, purchases, sales and income.
Some associations reflect bond income in one interest account which includes, in addition to bond
interest, mortgage loan interest, contract interest,
share loan interest and Federal Home Loan Bank
stock dividends. I n test-checking interest reflected on the books against the amount of interest
earned on investments, there is at least several
hours of time lost when separate controls are not
maintained.
There is one important function of internal check
which is often overlooked. That is the determination that the correct amount of interest on mortgage loans is being charged. Mortgage loan interest is the principal source of income, and a
reasonable certainty that charges are correct
would appear to be a responsibility of management. The examiner makes a test analysis to
ascertain that charges are computed properly and
that the income is not being diverted but his testchecks cannot take the place of internal supervision.
The simplest and most practical method for
management to have reasonable assurance that
interest charges are correct is the establishment of
block controls by interest rates. After charges are
made at the beginning of the month, the adding
machine listing of the individual cards can be
proved by applying the respective interest rate to
the total unpaid balance of each mortgage loan
block control. This method also reduces the
examiner's time in effecting proof of the interest
account.
General observations
Outside of the association's records and files
there are vast differences among associations in
the general orderliness and the manner of carrying
on the daily work. I t is always reflected throughout the operations when the staff is well informed.
There are various methods of improving their
knowledge, and the fact is merely pointed out
{Continued on p. 79)
Federal Home Loan Bank Review
A MANAGEMENT SURVEY ON
SAVINGS CAMPAIGNS
Because of the current importance of maintaining a steady inflow
of new money, the REVIEW queried a cross-section of Bank System
members to obtain management opinions on this vital topic.
The highlights of letters from more than 50 managing officers are
included in this first article on the subject.
•
FOR some time all savings institutions have
been riding the crest of the great war-induced
savings surge. In the five years following Pearl
Harbor, share capital invested in all operating
savings and loan associations increased almost
$4 billion. Withdrawal rates were comparatively
low so this vast amount of money, for which
there was no normal loan investment channel,
went into liquid assets, and the cash and Government bDnd holdings of the industry soared. The
largest proportion of this money went to help
finance the war and to build a reservoir of credit
for an expanding construction program once
home building was resumed.
The wartime liquidity position of the savings
and loan industry was easily achieved and not too
difficult to maintain under the then-current conditions. True, it represented a level above the
necessities of ordinary operation and to that extent
is not a goal whose absolute maintenance is
dictated by sound business policy. However,
the retention of a sizable proportion of this gain
is a matter of vital concern to savings and loan
management and one which will not automatically
take care of itself.
The factors which caused the unprecedented
flow of capital into savings accounts have already
undergone a change. I t is constantly becoming
harder for individuals to save. Everyday living
expenses take an increasing proportion of income,
and long-felt shortages are beginning to yield to
the pressure of production. There are, in short,
many other things to do with money besides
putting it into savings accounts. These conditions are, in many instances, eating into both past
and current savings of individuals.
From this it is evident that a passive approach
by association management to the accumulation
of share capital will not be enough—aggressive
action will be needed to make the savings program
keep pace with the demand for mortgage money.
December 1946 •
723131—46
2
I t has for some time been apparent that this
view represents the concensus of leaders of the
industry and officials of the Federal Home Loan
Bank Administration. I n his discussions with
savings and Joan executives throughout the country, as well as in his recent R E V I E W article, 1
Governor Lee has repeatedly emphasized, in
relation to the broad field of savings and loan
operations, "Without question, one of the most
urgent needs is not only to accept every dollar
of savings offered but to stimulate increased
savings during the next several years by every
sound means.''
Because of the urgency and importance of this
problem, the R E V I E W has undertaken to canvass
a number of widely scattered associations whose
savings records have been outstanding. Almost
without exception, the reply has been that this is
indeed a matter of the foremost concern in the
days ahead. Although there are undoubtedly
many associations not polled which are devoting
serious attention to this matter and achieving
excellent results, the more than 50 replies received
to date constitute a good cross-section of Bank
System membership.
Growing emphasis on savings
Programs to attract share capital are, of course,
not just a postwar development. B u t appraisals
by management indicate their belief in the need
for concentration on this phase of operation. The
time element in this problem is an interesting sidelight of the R E V I E W ' S canvass. One association
as long ago as 1943 anticipated the future ready
market for mortgage loan investments and
launched an aggressive advertising campaign for
new funds. I n three years they have more than
doubled their savings shares. I n another instance
a stepped-up savings program grew out of this
1
"Purposes and Policies of the FHLB System," FHLB REVIEW, November 1946, p. 35.
73
conviction, ". . . in the spring of 1945 we ventured to make the prediction that over a five-year
period beginning at that time, savings and loan
associations would find their main problem to be
obtaining enough money to meet the demand for
loans."
A considerable number of associations have
come to this same conclusion in the intervening
time. Several mentioned that the turning point
in their shift toward savings promotion came
sometime between a year ago and last summer.
A number of institutions reported that all of their
advertising is now devoted to the savings side of
the business.
The need for a change to greater emphasis on
capital accumulation has apparently not yet been
felt by all associations replying to the survey.
However, in most cases such a turn is foreseen.
One manager stated that in the past his association's advertising program had been entirely
concentrated on mortgage loans but on the basis
of a definite savings decrease this fall, he said,
"if this trend continues we shall have to give it
careful consideration and plan to counteract its
influence."
Several replies indicated that a pinch was being
felt, not because of a decline in savings but rather
due to increased withdrawals which, of course,
would require remedial action. Others mentioned
both reduced savings and accelerated withdrawals as a current development.
I t is interesting to note that no association
advanced its own particular program as a formula
guaranteed to succeed any place or any time.
Each had cut a pattern to fit its own needs—some
on the basis of preliminary analysis of the problem
and others by the trial and error method over a
period of years. But running through all the
replies received were several fundamental beliefs
and practices which appear to be the bedrock
of promotional policy.
Public relations paramount
If any one thing could be said to be the basic
principle of success, it would be sound public
relations. Time and again, managing officers
stated that a well satisfied customer was their
best advertisement. Beyond the obvious requirements of financial stability and technical efficiency, the relationship between the association
and its members stood out as the focal point of
emphasis.
74
Courteous, friendly personal contact was mentioned again and again as being of primary importance. As one manager stated, " I t might be
said that we have adopted a 'floorwalker's'
technique in greeting our shareholders when they
visit the office." Another form of individual
attention: "When members come in on any
business in connection with their accounts, we '
invite them in to sit down. Chairs are still not
so expensive but what we feel that we can have
enough to permit our members to be seated when
they come in to see us."
The importance of customer relations was
summed up by the executive of one Ohio association: ". . . our advertising money is wasted if the
customer is not properly handled after he enters
our front door." "Fundamentally," wrote the
president of one of the largest savings and loan
associations in the country, "business goes where
it is invited and abides where it is well treated."
The head of a Kansas association whose aim was
to make that institution the nicest in town with
which to do business, explained that, in spite of the
fact employees were hard to get, "we even discharged a couple . . . who we felt were not
handling the public properly."
The value of present customers
Again and again throughout the correspondence
with the managing officers of these various institutions, the importance of well satisfied present customers was emphasized. This was not to imply
that the essential nature of a comprehensive
advertising campaign for new customers was being
overlooked; but simply that an association's
present customers were certainly one of the most
important, if not the most important source of new
business. The president of one institution in
Philadelphia said, " I t has always been our thought
to keep our present members sold on the advantages of our institution; and most of our public
relations work has been pointed toward this effort.
We find that contented old members are of great
value in building up our institution as most of our
new accounts are a result of recommendation on
the part of our present members." From Toledo
came the report that, "The new customer is very
apt to say that he saw our ad in the newspaper or
heard our broadcast over the radio, whichever
comes into his mind first, but in eight cases out of
ten he always ends up by saying . . . 'and Mrs.
Jones told me that she had her account at the . . .
Federal Home Loan Bank Review
and it was a nice place to do business 7 ." These
observations appear trite in many ways, yet they
do raise a question to which many boards of
directors will want to give serious thought and
discussion: "Have we explored all of the possibilities within our own membership for the development of new business?"
No limit on savings
I t was not a little surprising to find that a
majority of those participating in the R E V I E W ' S
survey laid special emphasis on the fact that they
had made it a policy never to refuse to accept
money offered to them for savings accounts.
Associations which followed this policy throughout
the period of excess funds have now apparently
found they are reaping cumulative benefits. The
manager of a Michigan association said, "The
basic decision made by our Directors back in 1942,
when they decided to continue to accept investments without restrictions, has enabled the association to service the savings needs of twice as
many people as formerly in this community, and
it now has ample funds available to service the
community's greater demands for home financing
. . ." Another executive out in Oklahoma wrote
that, "We have never done anything to restrict the
inflow of savings into our institution. During the
war we continued to accept all savings offered, and
with these excess funds purchased bonds, and it is
this reservoir of surplus funds that makes it possible for us to maintain our heavy lending volume
at the present time." From another midwestern
association, came word that, "We have felt it is
bad policy to advertise for funds and then, when
people have money to invest, stop them at the
front door and tell them that their money is not
wanted."
Role in community affairs
In such widely separated states as New York,
Ohio, Kansas and Texas, associations have found
it important to take an active part in every
worthy civic enterprise. As one managing officer
expressed it, "We make it a special practice that
our top executives are affiliated with every type
and kind of organization which may contribute
either civically or socially to the improvement of
our community." The result, of course, is to
broaden association contacts into all elements of
business and social life. "We try to do our full
share in supporting financially every worthy
cause," said the president of a Texas institution.
December 1946
Closely tied in to this phase of the program of
an association's operations, are its relations with
the other financial institutions. Many associations have made it a point to develop and maintain
the good vvill of the banks in their area. From the
Southwest, the president of one association wrote,
" W e enjoy a very close and friendly relationship
with the majority of the officers in our banks. I t
has been a part of our program to call on these
gentlemen at frequent intervals and discuss our
business with them and impress upon them our
sincere and earnest effort to conduct not the largest
but the soundest and most constructive program
for the expansion of a savings and loan association.
With all humility, I can report that our visits have
been kindly received and numerous investors have
been referred to us by the officers of banking
institutions."
"Know and be on intimate,
friendly relations with your commercial bankers,
from the President down to the porter," was the
way another managing officer expressed it.
Importance of office location
One of the most frequently mentioned factors
having influence on the success of associations in
maintaining a steady inflow of new savings was
the location and facilities of their office quarters.
This was true regardless of the size of the institution or the size of the community in which it was
located. From North Dakota, one association
reported that until it moved from an out-of-theway side street location, to a ground floor office in
the center part of the business district, it had considerable difficulty in securing enough local investments. " W e feel," said the president of this
institution, " t h a t this new location has done a lot
for us in attracting new business of all kinds."
The executive vice-president of an association in
Pennsylvania wrote, " I believe our new, modern,
up-to-date savings and loan home has had a tremendous influence on our local public by instilling
confidence and setting our association out as a
recognized financial institution in the community."
Little things often have a way of being "attention-getters" out of all proportion to their significance or cost. For example, an institution in
Tennessee told that, on moving into new modern
office quarters, they had installed "electric-eye"
doors, which happened to be the only ones in their
city. The interest which they created brought
the institution to the attention of potential cus(Continued on p. 96)
75
* * * WORTH REPEATING * * *
ASSURANCE: "We must not discourage building by closing down on
veterans' home loans, but we must
squeeze out the speculative profits
and make loans which these young
men have some reasonable assurance
they will be able to pay. If the
American people permit scalpers to
take the veteran with his GI loan,
they shall have to reckon with the
disillusionment that may strike the
veteran in the event he finds himself
doomed to foreclosure."
General Omar N. Bradley, Administrator of Veterans' Affairs,
before the U. S. Savings and
Loan League, Milwaukee, Wis.,
November 21, 1946.
STANDARDS: "Most building codes
are admittedly antiquated in that
they make little provision for the use
of so-called experimental methods
and materials. Those who desire
sweeping changes charge that vested
interests — including some trade
unions as well as some suppliers of
building materials—are
blocking
progress by obstructing the revision of
codes. From the other camp come
charges that the proponents of
change want to lower the all-important safety factor and throw the field
open to all sorts of untested experiments. However, most unbiased
observers agree on the need for setting up general performance standards as a basis for modernizing local
regulations."
Tomorrow's Town,
1946.
September
DISTORTED VALUES: "Periods of
rising salaries present admirable
opportunities to revalue jobs and
revalue people in the true light of
their respective worth. Over the
past five years (1941-1946) the relationship between the value of jobs
and the value of incumbents has become distorted. In many cases the
relationship is absurd. Your employees realize something that you
do not—namely that these disparities
cannot long be continued."
Guy Fergason, President, Fergason Personnel, Best's Insurance News, Sept. 3, 1946.
COOPERATION: "There is a real
opportunity, I think, for local housing authorities to work with private
housing groups in their respective
communities in a joint effort to
76
service all income levels of the population. This means, first of all,
sitting down with the private housing
people, learning their problems and
their points of view, giving them the
benefit of your experience in the lowrent field, and helping them to narrow the gap that now exists between
public and private housing. . . . It
should be recognized more widely,
for example, that slum clearance is
a form of cooperation with private
enterprise, since it leads usually to a
toning-up of the whole neighborhood
and an improvement of private
values all along the periphery of the
project."
Dillon S. Myer, FPHA Commissioner, before National Association of Housing Officials convention, Cleveland, Ohio, October 10, 1946.
COURTING DISASTER: 'Until those
housing requirements are met, you
will be subject to constant pressure
to exceed sound lending values. If
you succumb to that pressure, sore
trouble lies in store for you. Obviously production will reduce costs
and the prices of existing houses—
houses on which you have mortgage
loans—will fall . . . Even if we
could assume that higher costs are
more or less permanent, we know
that in virtually every real estate
transaction today there is being
paid a premium for possession, and
any bank which lends against any
part of that premium is courting
disaster."
Richard Rapport, Connecticut
State Bank Commissioner, before annual convention of the
Savings Bank Association of
Conn., Manchester, N. H..
October 1946.
WISDOM: "At the rate we are now
going, we will not be able to catch
up with our housing needs for 10
years, or until after 1956. . . . Nevertheless, since real estate loans are
frequently made for periods of from
10 to 25 years, it is the policy of
wisdom to require substantial amortization in the good years ahead, so
that loans may be carried safely
through any adverse conditions that
might prevail in the middle 1950's."
Homer Hoyt, Div. of Research
& Statistics, Federal Deposit Insurance Corporation, before
Louisiana Bankers Association,
October 1946.
REASONABLE VALUE: " . . « It
would appear that an asking price is
within 'reasonable value' when it is
moderate in comparison with the
current level of replacement costs
within the same community or area,
allowing, where necessary, for the
various factors of depreciation. If
it rears its head above that current
level, it should not be countenanced
with a GI loan. GI loans should not
be made the rungs by which the asking price of residential properties can
climb to still higher peaks."
T. B. King, Director, Loan
Guarantee Service, Veterans
Administration, before Board
of Governors, National Savings
and Loan League, Miami, Fla.,
Nov. 1, 1946.
THE BOOKSHELF
Although inclusion of title does not
necessarily mean recommendation by
the REVIEW, the following recent publications will be of interest.
HO USING
PRACTICES—WAR
AND PREWAR, A Review of Design and Construction: National
Housing Bulletin 5. May 1946.
National Housing Agency. 15$ a
copy from the Superintendent of
Documents, Government Printing
Office, Washington 25, D. C.
PRINCIPLES
OF
PLANNING
SMALL HOUSES: Technical Bulletin No. 4 (revised). Federal Housing
Administration, August 1946. Single
copy 10^ from Superintendent of Documents, Government Printing Office,
Washington 25, D. C.
MUNICIPAL
REGULATION
OF
TEMPORARY
HOUSING
AND
PREFABRICATED
CONSTRUCTION: By Roy H. Owsley. American Municipal Association, Chicago
37, 111. 1946. 33 pp. $1.00.
WINTER
CONSTRUCTION
TECHNIQ UES: Construction Methods Division Bulletin No. 4, September 1946. National Housing Agency, Washington 25, D. C.
THE PACKAGE
MORTGAGE—A
List of Selected References: Compiled
by Ruth L. Mushabac, Federal
Housing Administration Library,
Washington 25, D. C.
Federal Home Loan Bank Review
HOME MORTGAGE DEBT AT RECORD LEVEL
After three years of fractional declines during the war years
1942-1944, the outstanding balance of loans on 1 - to 4-family
nonfarm homes increased almost a half-billion dollars last year.
The record-breaking volume of new lending this year will set a
new all-time high for this type of private long-term debt.
•
F I N A L estimates of the mortgages outstanding on all nonfarm 1- to 4-family homes as of
December 31, 1945, revealed a total debt of
$19,991,000,000. This was $463,000,000 higher
than at the end of the previous year, a gain which
all but wiped out the net reduction during the three
previous years. At the beginning of 1946, the
nonfarm home mortgage debt was approximately
$100 million below the prewar peak registered in
1941 and about a billion and a quarter dollars less
than the pre-depression high point which was
reached in 1930.
The active real estate m a r k e t a n d construction of new homes during the current year
have combined to make 1946 a year without equal
in the history of the home financing industry.
Preliminary estimates indicate that the total new
loans made on 1- to 4-family homes this year may
reach $8 billion. This is almost 40 percent more
than in 1928 which was the highest year during
the building boom of the twenties. The continued substantial volume of loan repayments has
been more than offset by recent increases in the
proportion of owner-occupied homes. The combined result of these various factors should produce a rise in the nonfarm home mortgage debt
during the current year of between $3 and $4
billion. An increase of this proportion, added to
the balance at the beginning of the year, would
send the total above the $23-billion mark for the
first time.
Life insurance company investments in this
type of security were down $200 million, or 8
percent; while the portfolio of mutual savings
banks shrank only $40 million which was less than
2 percent. The continued liquidation of the
Home Owners' Loan Corporation brought a $200million decline in the balance of loans outstanding—more than one-fifth of its holdings at the
beginning of the year.
Distribution of the debt
Changes in the distribution of the total debt
among the various types of lenders followed
closely the pattern of increases and decreases
shown above. The holdings of "individuals and
others'' continued to account for the largest single
share of the total, but the gain during the year
was less than 1 percentage point. Savings and
loan associations added more than 2 points to
their portion, giving them the largest share they
have held since 1931.
The portfolio of commercial banks moved fractionally ahead of mutual savings banks. This
was the first time this had happened in the 21
years for which this type of information is available. Each of these lenders accounts for about
RELATIONSHIP BETWEEN CHANGE IN
MORTGAGE DEBT AND NEW LOANS
I To 4-Family Nonfarm Dwellings, 1940-1945
RATIO C)F CHANGE IN DEBT
TO NEW HOME LC ANS
Summary of 1945 operations
In reviewing the portfolio changes during 1945,
savings and loan associations, commercial banks
and the miscellaneous classification of "individuals and others'' were the only major groups of
mortgagees to show an increase in their holdings.
Savings and loan association mortgages were up
12 percent, or nearly $600 million. Commercial
bank residential loans rose 7 percent, or about
$165 million; and those held by individual lenders
advanced 3 percent, or $200 million.
December 1946
pn
I
K
•*'.' *•
i«*
•.
LEGEND
New Home Loans
•
1940
Change in Debt
1941
1942
1943
1944
1945
1940
1941
1942
1943
1944
1945
77
Estimated mortgage loans outstanding on
1- to 4-family nonfarm homes
[Dollar amounts are shown in millions]
Amount
P e r c e n t of
total debt
Change
T y p e of mortgagee
1945
1944
Percent
1945
$577
12.0
-8.1
-200
-1.6
-40
6.8
165
-239 -21.9
3.2
200
26.9
11.3
12.6
12.9
4.3
32.0
24.6
12.6
13.2
12.3
5.6
31.7
2.4 100.0
100.0
Amount
The largest percentage increase last year (40
percent) was registered by commercial banks with
a total new loan volume of $840,000,000. Both
savings and loan associations and mutual savings
banks also showed gains of more than 30 percent
in the same period.
1944
A preview of 1946 totals
•
Savings a n d loan associations- $5,376 $4, 799
2,258 2,458
Life i n s u r a n c e c o m p a n i e s
2,530 2,570
M u t u a l savings b a n k s
Commercial banks 2,575 2,410
H o m e Owners' Loan Corp
852 1,091
6,400 6,200
Individuals and others
Total.
19,991 19, 528
463
one-eighth of the total home mortgage debt. Life
insurance companies held a little over 11 percent
of the aggregate—about 1 point less than a year
previous.
HOLC's share of the home mortgage debt
dropped more than a point, and at the end of
1945 was equal to about $1 out of every $25 of the
total. This is in sharp contrast to the position of
the Corporation 10 years previously when it
accounted for $1 out of every $6 invested in home
mortgages.
New lending operations
New home mortgage loans made by all types of
lenders last year were estimated at $4,700,000,000,
which was the largest annual figure since 1929.
Compared with 1944, it represented a gain of
$871,000,000, or almost 23 percent. Only one
active lender (insurance companies) reported a
smaller volume of new loans in 1945 than in the
previous year. New lending by the HOLC, of
course, has been restricted since 1935 to loans for
reconditioning purposes or in connection with the
disposal of acquired properties.
Savings and loan associations accounted for the
largest single share of the new home mortgage
loans made last year. Their total of $1,913,000,000,
which was just under the previous all-time high
established in 1928 by these institutions, equaled
two-fifths of the loans of this type made by all
lenders. Next in order of relative importance
were the advances made by "individuals and
others" which aggregated $1,551,000,000—also a
new high for these lenders during the period for
which data are available. New loans by commercial banks, amounting to $840,000,000, earned
them third place, with insurance companies,
mutual savings banks and the HOLC following
in that order.
78
Mortgage financing activity during the current
year has moved forward at such an accelerated
pace that there is no doubt that the home mortgage debt has been carried to the highest levels in
the country's history. While only meager data
are available on all types of lenders for the first
half of this year, it is apparent that the gain was
unprecedented. The total new home mortgage
loans made from January through June are estimated to have been approximately $4 billion—or
more than the annual totals for every year since
1930, with the exception of 1945. Despite the
high volume of loan repayments, this is believed
to have resulted in a net increase of more than
$1,500,000,000 in the home mortgage debt during
the six-month period. The significance of this
gain is made more evident by the fact that no
year since 1929 has witnessed a rise of as much as
a billion dollars in the debt figures.
To take some specific examples as "straws in the
wind," it is estimated that the mortgage loan
portfolios of all savings and loan associations
grew by close to a billion dollars in the first sixmonths of this year—more than in any other
annual period for which data are available. New
loans by these institutions were approximately
$1,773,000,000 in the first six months of 1946, and
wil] exceed $3 billion by the end of the year.
Keal estate loans held by all active banks in
the United States (including national banks, state
Estimated new mortgage loans made on
1- to 4-family nonfarm homes
[Dollar amounts are shown in millions]
Amount
Change
P e r c e n t of
total
lending
T y p e of mortgagee
1945
1944
Savings a n d loan associations^ $1,913 $1,454
Life i n s u r a n c e companies
209
300
184
M u t u a l savings b a n k s
140
Commercial banks
840
601
H o m e Owners' Loan Corp
4
31
1,551
1,304
I n d i v i d u a l s a n d others
Total
4,701
3,830
Percent
1945
$459
31.6
-91 -30.3
44
31.4
239
39.8
-27 -87.1
18.9
247
40.7
4.4
3.9
17.9
0.1
33.0
38.0
7.8
3.7
15.7
0.8
34.0
22.7 100.0
100.0
Amount
871
1944
Federal Home Loan Bank Review
commercial banks, mutual savings banks and
private banks) passed the 10-billion dollar mark,
an increase of more than $1,166,000,000 in the
first half of the year. This was more than four
times the gain shown in this account for all of
1945. While these data compiled by the Comptroller of the Currency include loans on all types
of properties, mortgage recording data and other
information indicate that a sizable portion of this
has been in loans on residential properties.
The Institute of Life Insurance reports that
activity of life insurance companies in the mortgage and real estate fields has been materially
increased this year. Purchases of mortgages of
all types in the first nine months of 1946 were 60
percent higher than in the same period last year
and well above prewar levels. New mortgage
financing extended by life insurance companies
during the first 9 months of this year amounted to
$1,127,000,000, which compares with slightly less
than a billion dollars in the full 12 months of last
year. Both figures exceed the prewar years of
1941 and 1939.
Certainly one of the most important factors in
the current year's activity has been the volume
of loans guaranteed or insured by the Veterans
Administration. In the first 11 months of this
year, the principal amount of loans reported by
the Veterans Administration to have been closed
and disbursed totaled more than $2,142,000,000.
At the current rate of loan closing, this figure will
approach $2,500,000,000 by the end of the year.
These figures, of course, are included in the totals
for the various types of lenders, but they do demonstrate the part played by GT loans in today's
mortgage activity.
Examinations
(Continued from p. 72)
here that the staff or at least the department
heads should be familiar with the provisions of the
association's charter, the state laws and the regulations. Managers sometimes unintentionally delay
the examiner by plying him with questions mainly
with reference to charter provisions, insurance
regulations and interpretation of the state code.
The examiner wants to be helpful, but he should
be permitted to proceed with the examination
with the minimum of delay and interruptions.
I t is not suggested here, however, that there should
be any hesitancy about discussing with him imDecember 1946
provements in accounting practices and other
procedural matters.
It is believed that the adoption of these suggestions will save examination time. Many associations have already put into effect these and other
methods, and it is generally agreed that they have
thus accomplished far more than merely assisting
the examiner to complete his work more rapidly.
The examiner is present only a few days each year.
The saving of the time of officers and employees
by having information more readily available and
dependable and the obtaining of other benefits to
the association are of paramount importance. As
a rule, those changes in routine, in accounting
and filing, and in internal proofs and controls
that facilitate examinations and audits, will enable
the association's staff to do the day-to-day work
more accurately and efficiently, will promote
harmony within the staff, and will give the officers
more time for planning and constructive endeavor.
New President Named for
FHLB of Sa n Francisco
•
Garritt Van der Ende, city manager of Berkeley, California, has been elected president of
the Federal Home Loan Bank of San Francisco,
Ben A. Perham, chairman of the board of directors
of the Bank, announced on December 10. His
unanimous election by the directors of the F H L B
of San Francisco has been approved by Commissioner Fahey.
Former executive officer of the Berkeley Guarantee Savings and Loan Association, Mr. Van der
Ende was drafted for the city administrative post
in 1944. He earlier served as president of the
California Savings and Loan League and as vice
president of the American Savings and Loan
Institute. He is a former president of the Rotary
Club of Berkeley, where he has been active in
civic affairs for many years.
Mr. Van der Ende began work in 1917 as a
messenger for the Bank of Savings in Oakland,
and rose to become its manager. In 1926 he went
to the Berkeley association as assistant secretary
and later was elected secretary and manager.
Mr. Van der Ende will succeed Frank H. Johnson of Portland who is retiring for reasons of
health. Mr. Johnson will continue his association
with the Bank until Mr. Van der Ende enters upon
his new duties.
79
HE EVENING TELEGRA1
ROCKY MOUNT, N. C, FRIDAY AFTERNOON, OCTOBER 4,1946
illace, Baruch City Is Fast Finding Solution
Squabble For Critical Housing Problems
!&£!£%
Lgree On Dangers
iut Dispute Cause
Newest Outbreak
Chief Exi
And Cabir
On
^ t h B u i l d i n g Of 317 Dwellings Parley
Demand Expc
r
y JOHN M. HIGHTOWER / ^ e ^
Mayor's Cdmmittee
Report Shows City
Ahead Of Other Towns
^ a
^
?§*&
Exceed Supply ]
1948; Gloomy'"
WASHINGTON, Oct
By MAUD BATTLE
President T r u m a n mi
_ ^ , With a carefully planned ef-- cabinet for 45 minul
j ^ S s QQ; /rt by city and civic offioials to the m e a t shortage
ou**w / ^ t n e ^ i t i c a l housing shortage |of discussion 4 g a i n .
And the starting of 317 new, per-' Secretary nf.Agricultl
/manent dwelling units in the pastfeofc, asked, if h e agrees
Ihine months, Rocky Mount is far 1i Jd e n t Trunian's s t a t e m J
l o u t ahead of other communities a y t h a t t h e m e a t scarclt
| l n t h e southeast in solving her rorse this winter, repliw
| h a d not h a d a n oppcf
lousing problems.
Vead t h e statement.
Despite t h e fact t h a t a short-*:
age of living accommodations! Economists in Andei
predicted,
still exist here, t h e remarkable! partment
progress m a d e i n t h e c i t j ^ i n c e j th>t meat supplies will
the first of J a n u a r y is revealed i n ] up* with demand before
a report of the mayor's emergen-* by t h e n people m a y m
cy housing committee, headed by] to t afford a? many i
Henry Gregory, Jr.. which shows roasts as they would
t h a t executives of t h e various! T h a t doubly discourai
housing branches of t h e federal cast f o r , meat-hungry
\1\ government have looked to the [-came as the price deco]
% yacky Mount program as a model. ^suspended a t least until
M T h e committee report shows •a,, third decision on th<
v|\%t from J a n u a r y 18 through! ceiling prices for milk
| > 30 there were 216 registra-; dajbry products, now fr<
«fc?\s representing 577. people for- jmisdiction.
No Comment
accommodations in t h e city.
Anderson was asked
, »1 of 438 persons were placed; any
comment
on a stal
% wsons moved away and 39i Bfp. Spence ^D-Ky.)
th
i\is cither, bought or buUt; "Eftthered the impress!
government might v
\ tfdition t o working on t h e the
action to ease
l^yte housing problems, thej remedial
\ee has viewed t h e situation! shortage.
Anderson said h e hi
\-eye to long-range plan- what
Spence could hi
\ h a s recommended that} When
reporters ask<
tit city building code be! meant the
governmeni
«» date a n d t h a t its wise ning
n
o
action,
Anders*
•^V.not be weakened u n - have some suggestions
ai
MVcumstances because of made them."
1>\ demands. I t also recThe
secretary
said
M t h a t as soon as maAvailable, provisions of |ficult to work out" a
W\\uiring proper m a i n - t h e meac situation
$. \jiits offered for rent framework of policy a:
[down." He said, Ipvi
\|\ \f orced.
| h e i s hopeful t h a t som<
>mmittee Named
jbe-worked out. since "tl
% n committee, ap- la fairly good supply of
%vor. J. R. Bennett jworld."
m of this year to! The Agriculture De]
ng situation and ^Bureau of Economics e:
\^\ suggestions for' prediction of a slacken
p mposed of Greg- 'demand some 12 or
| \ M. P . Dawson, hence by saying t h a t c<
n J . J. Haggerty, comes are expected t o
5
I d R. L. Sides. ward in late 1947 or ear
p£i of the com-' Furthermore, t h e ag<
^T. Thorpe, J r . ' the demand for m e a t
of t h e Chamber of^ foods — now a t a recor
,-xunerce, W. W. Shaw, current] may decline as consuml
it
Chamber of Commerce president} ing
__„ shifts to
.„ non-food
4VfUUi „
and chairman of Rocky Mount's!as"automob7lesrwashing
J
postwar planning committee, City?"*-*
—- and clothii
refrigerators,
iManager L. B. Aycock a n d Mayor; plies of those goods be<
BY HOWARD CqWAN
[Bennett.
j abundant.
J j A N D E R Nfld^ Oct. 4—<#)— ; O u t _pf meetings with builders A
Low OutDafi Set
^ Q a f c l l H f c . J A ^ J O / : Qtfielal* wejai * t • « • l o a d ^ ^ J * 1 ^ 8 ' 7 : * « f l d i n g supply: ^ P l b u r ^ u said mei.
¥*
** 1today
* „ J . . . ._
I_J_ xi."_
^^L of
_» .a fctraipanies^,*imTteriaI hiahufacfur- : during the remainder o f |
to txplain
the crash
ers, representatives of civic groups] be "relatively low," reflet/
Berlin-bound American Overseas Jand other persons interested ir±l marketings of hogs a n f
Airlinei piane in which 39 per- housing, t h e committee evolved a] July and August, w h e n l
sons lost theii iiv£S yesterday in 12-point program which was i m 3 no price controls, and <
mPrilfltPlv r>n>. ir>*in affpri; i~~uv- •'
gstockl
fASHINGTON, Oct. 4—(AP)-V 0f{<8r, j t j ^ J r j j g g g s s
Ive danger confronts Unite/ jjgjpa '•*
*t^z^^^
\ o n s efforts to set up i n f — ^
^
L atomic conl
ftch and H e
bally agreed ^
/fut they bitt*
:e.
allace, ousted
[ommerce, bli
red t h a t wittf
launched on\
bomb race,'
ted a "stubborn
approach to neg<
g Russia.
,ruch. American
N. Atomic L_
ion blamed Walla(
the former cabi
itrated "errors"
confusion in
« United States
Dangerous Etf $iye M
| h e "errors," Bar/.ca»aj J 1
'gravely danger? *t ttfi±\
I negotiationsnrf * W £\\1
Thile P r e s i d e n t « a i 5 *f»>
fwhole controvf f*f utin?}
fter between B/ bot^ Qj*ttt
\, t h e governm*
housiJ:ei
(red to be c a /
JlfeTf>rnational nerf
^jtfljT-^e,
testic c o n l y & eofr?1** o/'
^ly persona/ . J j o ^ | to> ^
men seeme/ c^ a ,*,.?* «ie
illace.^ wl/' £e P f t a
^ved froi.
. -.,
becau/ 2***8
?*M^\
AM0**
°M
dedal/
&37?1*&h£Z0<*.
tIo
to full l u ^ . V r , SF2#ei2t
*i
*** tn ^ ° r
^ Russia's "refusal to agree u», j ^ i j
national system of inspection
bntrol atomic energy produc-
I Unnecesary Insistence
| y o n d these, Wallace said, the
States has insisted "unssarily" on the great powers
l g up their veto over atomic
fcy control matters despite
pa's flat refusal to do BO. This, ]
,... &Jha$. "sejrved^fts a j
fier to the successful negotlaof a n international atomic
• control treaty."
b.arging Baruch with preoccui with "procedures," Wallace
80
K ^ ^ '
, 1946
Session To Close
Federal Home Loan Bank Review
HOW ROCKY MOUNT SOLVED ITS HOUSING
PROBLEM
Community participation in solving the problem of veterans1
housing has received wide acclaim as being the ultimate answer.
This article, based on reports of the Mayor's Emergency Housing
Committee of Rocky Mount, North Carolina, tells the story of
how it actually worked in that city.
•
T H E Mayor's Emergency Housing Committee of Rocky Mount, North Carolina, has
worked itself out of a job, odd as that sounds in
these days when housing is still a number-one
domestic problem. This does not mean that no
shortage of living accommodations now exists
there. But in less than a year's time, community
action channeled through this Committee, got the
city over the hump of the crisis and headed toward
normal operations. In rendering its final report
after nine months of activity, the Committee
states: " I t is our definite opinion that the dwellings now under construction will furnish adequate
houses to take care of our critical demand and that
sufficient momentum has been set in motion to
carry on our building program to such a point
that a normal housing supply should be available
by late spring or early summer of 1947 . . .
"We know of nothing further the Committee
can do in connection with the program except
to be a clearing house for Government officials and
local builders, lenders, etc., and in that capacity
we shall be glad to continue to function."
The accompanying "box score", contained in
the report covering activity from January through
June, gives a statistical accounting of the problem
faced and the results achieved through the housing
registration bureau. As to the actual construction record in Rocky Mount this year, a supplementary report issued by the Chairman of the
Committee on November 1 to keep the community
up to date on continued progress shows 352 units
started and 152 completed in 10 months. At the
rate then current, it seemed apparent that 200
new units would be completed and ready for occupancy by the first of next year with an additional
200 under construction or nearing completion.
This means that Rocky Mount, a city of approximately 29,000, will have provided a new home for
about every 70 people. While an effort has been
made to provide sufficient dwellings for the minorDecember 1946
ity group, only 44 of the units so far finished were
for negro residents, more because of inability to
locate suitable land with public utilities than on
account of high costs.
Since this construction program consists entirely
of privately financed, permanent dwellings, the
role of savings and loan associations is of particular interest. Rocky Mount has four such associations which, according to the Mayor's Committee,
have long furnished the bulk of home mortgage
credit in the community. Since the inception of
the local housing program these institutions have
financed 90 percent of the new housing and have
been active cooperators in all phases of the community undertaking.
The first steps
All this did not just happen. As told in the
September report of the Mayor's Committee, submitted as that group was going out of active business, it is apparent that the accomplishments were
the result of careful advance planning, dynamic
leadership and the concerted effort of all citizens.
Emergency Housing Committee
Report of Operations
January 18-June 30, 1946
Number of registrations for accommodations. _ 216
Number of registrations by families
Number of registrations by single people
158
58
These 216 registrations represent 577 people.
Number
Number
Number
Number
Total
of
of
of
of
persons
persons
persons
persons
placed
438
moved away
82
who have bought or built__ 39
to be placed
18
577
81
«** mmm^
IBI
1
I
Reflecting local recognition of the approaching
housing crisis, in January of this year the Chamber of Commerce promoted a meeting of the
builders, lenders, realtors, building supply companies, material manufacturers, representatives
of civic groups and others interested in housing.
At this meeting a comprehensive program was
drawn up and a committee appointed to set up the
machinery for carrying out the program. In its
early start, as well as because of the program
developed, the Rocky Mount Emergency Housing
Committee was a forerunner of the national
Veterans Emergency Housing Program. As a
pioneer group it has been a center of information
and interest in that region.
In this city, as in so many others, members of
the savings and loan industry were called upon to
provide leadership. The chairman and two others
of the six active members of the Committee appointed by the mayor were savings and loan executives. Realtors, contractors and building supply
officials made up the remaining active members.
Representing the public interest were four exofficio members—the mayor, the city manager,
the president of the Chamber of Commerce and
the chairman of the Rocky Mount Postwar Planning Committee. This same group was later
appointed to serve as the Mayor's Emergency
Housing Committee when the National Housing
Agency began its program later in the year.
The cornerstone of the entire undertaking was
the recognition that the public was entitled to a
positive housing program. The other 11 points
were concrete suggestions for accomplishing this
end. At the outset, the Committee employed a
temporary secretary, paid from the advertising
fund of the Chamber of Commerce which is supplied by the city. He acted as a clearing house
82
HI
for all veterans housing programs. By the end
of June this expediter had completed his part of
the job and turned over to the Chamber of Commerce the responsibility of handling the few applications that still come in.
Preliminary action
In order to get a line on what the problem
actually was, a housing survey was immediately
undertaken. From information made available,
it was the concensus of the Committee that, barring an upset such as a large industry moving
into the community, approximately 500 homes
would be needed to create a normal supply and
beyond that ordinary construction and demand
would take care of the situation.
Supplementing this survey, an inventory was
taken of actual construction planned within the
next 12 months. On the basis of this, the Committee was satisfied that the critical needs would
be met.
However, people desperately in need of housing
couldn't wait till the necessary construction program could get rolling. As a stop-gap measure,
every effort was exhausted to make available
rooms in existing dwellings. Appeals were made
through civic clubs, churches and business firms
and speakers appeared before club meetings.
With the cooperation of radio and newspaper
officials, the Junior Chamber of Commerce put
on a radio program and a newspaper advertising
campaign was financed by such interested groups
as lenders, realtors and building supply dealers.
Another temporary expedient that had been
recommended by the original civic meeting was
the provision of an adequate trailer site equipped
with the necessary utilities. A comprehensive
study of the suggestion convinced the Committee
Federal Home Loan Bank Review
that the cost of such a project would not be justified even by its worth as an emergency measure.
The proposal was abandoned, as was the plan
to make use of any temporary or public housing.
I t was decided to concentrate every effort and
to channel all materials into a privately financed,
permanent housing program.
Permanent construction program
Chief reliance was placed, and it turned out
justly so, on complete cooperation among all
related housing groups, including cooperation
with Government agencies to stimulate production and allocation of adequate building supplies.
Many of the materials problems that have beset
the rest of the country were, of course, felt in
Rocky Mount, but the Committee Report stated:
". . . our building supply companies have done
everything humanly possible to make available
the materials necessary to do this job, and in no
instance has any builder intimated that any
local supply company has demanded, directly, or
indirectly, black market prices."
Attacking the problem also from the local
production standpoint, labor end builders were
discouraged from seeking work elsewhere and
were assured of full employment in the community.
Since more labor was actually needed in these
lines, cooperativee ffort was made to assist in recruiting employees for building supply companies,
lumber mills, brick manufacturers and related lines
in an effort to achieve maximum output. Through
the assistance of the local Veterans Administration
and the Employment Service, a veterans' training
program was set up in several industries.
Another angle of approach to increase available
"makings" of homes was an appeal to landowners
with standing timber to offer it for sale on the
current market; owners of vacant lots were urged
to put them up for sale at as reasonable prices as
possible. Furthermore, the Mayor's Committee
conducted an extensive campaign to make all
citizens conscious of CPA building regulations
with the result that few applications were made,
and none approved, for construction that did not
further the veterans program. The public support
thus mobilized went a long way toward conserving
scarce material for use in much needed homes.
Attention to building codes
That the effort to solve an emergency problem
did not result in jerry building has been due,
according to the Committee, to a good building
code realistically adjusted to necessities of the
supply situation, but still enforced. In addition
to this, Federal and local government inspectors
were on the job, as were the savings and loan
associations that handled the bulk of the financing, all insisting on as good construction as conditions permitted. As a result, the Report states:
"The Committee found that, except for a few
isolated cases, the housing units completed and
those now under construction are well built. . . .
The greatest amount will be a credit to the community for years to come."
In addition to urging the continued enforcement
of the code in connection with new construction,
its importance as a tool for correcting and forestalling slum hazards was recognized by the
Committee. The recommendation was made
that, as soon as materials become available,
strict compliance be demanded with provisions
requiring proper maintenance in units offered for
rent. "The City of Rocky Mount was well on its
way toward enforcement of this part of the code
{Continued on p. 89)
Index (1935-1939-100)
Index (1935-1939 = 100)
550
2501
INDUSTRIAL
PRODUCTION A
©PRIVATE CONSTRUCTION
Urban I 8t 2 - F a m i l y Dwelling Units
(LABOR DEPT.)
(FED. RESERVE)
200
500
® SAVINGS 8 LOAN LENDING
(FHLBA)
UJJ
450
150
400
100
1941
1942
1943
1944
1945
1946
1943
1944
1945
1946
1944
1945
1946
1944
1945
1946
Index ( 1 9 3 5 - 1 9 3 9 - 1 0 0 )
200
350
MANUFACTURING
EMPLOYMENT
(LABOR DEPT.).
150
100
1941
Index
1942
(1935-1939-100)
300
1
1
INCOME PAYMENTS
(COMMERCE DEPT.)
250
200
150
1941
Index
1942
1943
1944
1945
1941
1942
1943
Millions
$1,200
(1935-1939-100)
180.
100
1946
,
BUILDING COST INDEX
MORTGAGE RECORDINGS
Stondord six-room house
All
lenders
900
600
300
' ° °
Millions
1941
$300
1942
1943
1944
1945
200
r
1941
84
~
Percent
1941
1942
1943
120
1
FHLB ADVANC ES
OUTSTANDING
100
1946
vv
1 REPUIRCHASE RATIO
J
VsW
1942
1943
J\
\I\J V /\J
\/V
\r
1944
1945
\r\
A
80
K
U\ w\f ^ bhm
40 1
1946
All ih sured S S L Assns
^
1941
1
1942
\
N
1943
\f N
1944
)1 V
1945
1946
Federal Home Loan Bank Review
((((((MONTHLY
Production showed further
increases in October
The total output of American industry during
October was slightly higher than in September,
and at record peacetime levels. The Federal
Reserve Board's index of industrial production
advanced 2 more points to reach 182 percent of
the 1935-1939 average. Both durable and nondurable goods were produced at the highest rate
for any month to date this year. The same trends
were evident in November until the coal strike
forced a gradual shutdown of vital elements of
the economy.
Consumer incomes have held near peak levels.
Income payments to individuals during September
were down slightly from the August record ($168
billion on an annual basis) b u t developments in
October and the first part of November point to
new increases in consumer incomes, particularly
for farmers. Important, however, is the fact that
the real incomes of consumers are somewhat below last year. The increase over the past year (7
percent) in consumer income has not kept pace
with the rise in consumer prices (14 percent
through September).
Department store sales, which usually increase
from September to October, showed little change
this year. Consequently, the Federal Reserve
seasonally adjusted index dropped to 258 percent
of the 1935-1939 average compared with 269 for
September and the all-time peak of 290 which was
reached in August.
Inventories in department stores set a new high
in October; and the general inventory picture
failed to show any signs of reversing the recent
trend of accumulating stocks. The Department
of Commerce reports that the aggregate value of
business inventories at the end of September
Index
[1935-1939=100]
Oct.
1946
Sept.
1946
Percent
change
Oct.
1945
H o m e construction (private) 1
B u i l d i n g m a t e r i a l prices.
_ __
Savings a n d loan lending i
Industrial production i
Manufacturing employment L . .
I n c o m e p a y m e n t s x~
~
222.6
150.5
450.1
182.0
146.7
256.1
' 225.3
149.4
435.9
' 180.0
' 146. 2
' 246. 6
—1.2
+0.7
+3.3
+1.1
+0.3
+3.9
123.9
132.1
271.0
162.0
127.4
231.4
r
Revised.
i Adjusted for normal seasonal variation.
December 1946
Percent
change
+79.7
+13.9
+66.1
+12.3
+15.1
+10.7
S U R V E Y >> » »
exceeded $32 billion—an increase of $3 billion
during the third quarter, even after allowance for
seasonal influences. Minimizing the import of
these high inventories is the fact that they are low
in relation to the volume of business being transacted. Inventory-sales ratios are still below prewar levels.
Employment conditions were relatively unchanged during October. A seasonal decline in
agricultural employment was offset by a rise in
non-agricultural workers, leaving the total at
about 57,400,000. Estimates of the number of
unemployed workers dropped below 2,000,000 for
the first time since January.
Substantial gains in
building materials output
With few exceptions, the Civilian Production
Administration reports "spectacular" gains in the
production of critical building materials during
October. New all-time highs were established in
the production of such plumbing fixtures as sinks,
water closet bowls and lavatories; and in gypsum
board and lath; warm air furnaces; and water
heaters. New postwar records were reached in
bricks, structural tile, clay sewer pipe, hardwood
flooring, softwood plywood, cast iron soil pipe, cast
iron and convector radiation, and nail production.
CPA indicates that the record output in the
third quarter has gone a long way toward reducing
severe shortages in many items. Brick, concrete
block, cement, hot water heaters, warm air furnaces and floor and wall furnaces appear to be in
the best supply-requirements relationship. The
worst such balance is presently found in cast iron
soil pipe, bathtubs, lavatories, water closet bowls
and insect screen cloth.
Private housing permits
slightly higher in October
There was a slight increase in the number of
privately financed building permits from September to October, b u t the total during the latter
month is still well under the peaks reached in the
spring of this year. The total of 58,000 units was
almost double the volume in October 1945, and 14
percent above the same 1941 month.
85
Dwelling Units-Thousands
PRIVATE '
^MULTI-FAMILY*.'
J
.
I
Nearly 595,000 building permits were issued for
privately financed residential units during the first
10 months of 1946—or about four times the number
of such permits filed during the corresponding
interval of 1945. Detached homes accounted for
nearly 9 out of every 10 new privately financed
dwellings, a ratio very close to that shown in 1945
and 1941, but somewhat higher than that shown
during the intervening war years. [TABLES 1
and 2.]
Building costs showed
further advances
The N H A price index of constructing a standard six-room frame house rose in October by 1.5
percent bringing the national index to 154.2
(1935-1939 = 100). The material and labor components of the index increased to 150.5 and 161.6,
respectively. Material prices maintained the 1.5percent rate of increase shown in September.
Labor evidenced a 1.4-percent gain during October,
a slightly higher rise than in the prior month.
Prices and wage rate changes reflected in the
index were derived from October 15 quotations
and were primarily the result of increases granted
by OPA and WAB. They do not measure the
effect of price decontrol on November 9.
The paint and paint materials group was the
only component of the Bureau of Labor Statistics
index of wholesale building materials prices to
show a significant increase in October, rising 2
percent above the September level. Gains for all
other commodity groups were less than 1 percent.
The composite index was up 0.7 percent during the
86
month, bringing this series to 150.5 percent of the
1935-1939 base period. These data also do not
reflect any changes resulting from the decontrol
order. [TABLES 3, 4 and 5.]
Savings and loan lending
passed $3~billion mark
Over $3 billion in new mortgage loans have been
made by savings and loan associations in the first
10 months of this year, an amount half again as
great as during the full year 1945, and more than
double any previous annual total since 1929.
This substantial expansion in mortgage activity,
while induced by the postwar revival of building
activity and by increased turnover of existing
properties, has been accentuated by rising prices
for both new and existing homes. As may be
observed through a study of mortgage recording
statistics, however, the rise in financing activity
during 1946 has been much greater for other types
of banking institutions than for savings and loan
associations.
Analyzing monthly changes in new mortgage
lending activity for savings and loan associations,
October loans amounting to $326 million were 5
New mortgage loans distributed by purpose
[Dollar amounts are shown in thousands]
Purpose
October
1946
September 1945
Percent
change
October
1945
Construction
H o m e purchase
Refinancing
Reconditioning
O t h e r purposes
$60,931
207,139
24,376
9,061
24,692
$55,354
198,842
21,546
8,027
26,022
+10.1
+4.2
+13.1
+12.9
-5.1
$23,985
135,224
18, 751
4,857
13, 562
+154.0
+53.2
+30.0
+86.6
+82.1
326,199
309, 791
+5.3
196,379
+66.1
Total
Percent
change
Federal Home Loan Bank Review
percent above September and within 10 percent
of the postwar peak reached in May. After allowance for the fact that lending in the autumn
months is normally somewhat below that recorded
in the spring of the year, the current rise has
brought the total nearly in line with the previous
high level.
New loans in October were 66 percent in excess
of the total for October 1945, with loans for the
construction of homes showing by far the greatest
gain—154 percent. All other classes of loans
shared in the increase, the rises ranging from 30
percent for refinancing to 87 percent for reconditioning of homes. [TABLES 6 and 7.]
Real estate financing in
October exceeded $1 billion
October was the first "billion-dollar month" on
record for the financing of mortgages of $20,000
or under. The $1,007,000,000 estimated for the
current month was 8 percent higher than in
September, and nearly double the volume for
October 1945.
The sustained volume of mortgage recordings,
which has exceeded $900 million for each month
since April of this year, has carried the cumulative
total for the year to date in excess of $8.7 million.
I t appears that, for the year as a whole, more
than $10.5 billion of mortgages of $20,000 or
less will be placed on record. This annual total
will be about 90 percent higher than in 1945 when
the volume was approximately $5.6 billion.
Savings and loan associations continue to record
the largest proportion of mortgages of $20,000
Mortgage recordings by type of mortgagee
[Dollar amounts are shown in thousands]
October
T y p e of l e n d e r
1946
amount
Savings a n d loan associations
I n s u r a n c e companies
__ _
B a n k s , t r u s t companies ___ _ _
M u t u a l savings banks_ _. .
Individuals* _ _ _ __
Others
Total...
All Insured
NET
INFLOW-*
+80.1
+94.4
+156. 7
+168. 2
+48.3
+91.5
$2,900, 442
387, 325
2, 222, 441
451,702
1,711,536
1, 030, 492
33.3
4.5
25.5
5.2
19.7
11.8
1,006,681
+91.9
8,703, 938
100.0
FHLB advances passed the
quarter-billion dollar mark
Continuing their upward movement, F H L B
advances outstanding a t the end of October
exceeded a quarter of a billion dollars for a new
record. Increased balances in every Bank District,
except for a fractional decline in Cincinnati,
brought the month-end total to $252,518,000.
This was almost three times greater than the
advances outstanding a year ago and nearly
: (1935-1939 = 100)
BUILDING MATERIALS
Wholesale Price Index
(LABOR DEPT)
(LABOR DEPT.)
KM
$312,055
48, 429
275, 769
57,971
184, 511
127,946
[TABLES 8 and 9.]
CONSUMERS'
PRICE INDEX
Associations
Percent
1946
Percent
change (10 m o n t h s ) of total
from 1945
or less, although both commercial banks and
mutual savings banks have shown substantial
gains during recent periods. During the first 10
months of 1946, savings and loan associations
financed about one-third of all such mortgages
compared with 26 percent for commercial banks
and 5 percent for mutual savings banks. The
size of mortgage instruments recorded during the
January-October period averaged $4,169, compared with $3,401 in the same 1945 period.
Index (1935-1939 = 100)
PRIVATE SHARE CAPITAL
Cumulative
180
160
X"
140
COMBINED'^ *•»'
INDEX
j /
r*f=-
120
SPLUMBING a HEATING
„
I I I I I 1 I I I I I 1 I I 1 I I 1 I I I I I 1 I I I I I I I I I 1 I
December 1946
I I 1 I i 1 i I ! i i I i 1 i i 1 i i 1 i ii i
1 ii 1 i i 1 ii
100
- &V^.
"
IT
S^BRICK a TILE
I I I I I I I I I I I 1 I I I I I I I I
I I I I I I I I I
87
$18 million more than the September 30> 1946,
figure.
New advances made during October by the
11 F H L Banks aggregated $32,720,000—slightly
above those of the preceding month. The increased lending activity, however, was confined
to five Districts—Boston, Indianapolis, Chicago,
Des Moines and San Francisco. The total
October advances this year, almost five times as
high as in the same 1945 interval, represented
the peak volume for any October in the System's
14 years of operation.
October repayments by borrowing members of
the Bank System totaled $14,969,000, or over $2
million more than the September aggregate but
almost one-fourth less than the October 1945
repayments. Seven of the eleven Banks received
larger repayments during October 1946 than in
the preceding month, with only Boston, Indianapolis, Des Moines and San Francisco experiencing
slight declines in such receipts.
Total assets of all the F H L Banks at the end
of October were up to $423,828,000 compared
with $398,337,000 on September 30 and
$341,445,000 on October 31, 1945. This gain in
assets partially reflected the issuance on October 15
of $140,000,000 in consolidated bonds which were
used to retire $102,000,000 in outstanding debentures of the Banks and to make available additional
credit to member institutions of the F H L B
System. The new bonds, which will mature on
April 15,1948, are a non-callable. 1^-percent series.
[TABLE
12.]
Insured associations showed
continued growth this year
At the end of October, 2,496 associations were
insured by the Federal Savings and Loan Insurance Corporation, representing a net decline of
1 during the month with an increase of 21 since
the first of this year. The total resources of these
institutions in October continued the steady
growth which has characterized their operations,
increasing 1.5 percent during the month to
$7,114,000,000. Since the first of the year, their
aggregate resources have risen almost $1 billion.
This is $181 million more than was registered
during the first 10 months of last year.
New mortgage lending by insured associations,
which had been declining very gradually from the
record level reached last May, rose 6 percent in
October to $255 million, bringing the new lending
88
total for the first 10 months of this year to $2.4
billion, an increase of 108 percent over the volume
of new loans made during the January-October
period of last year. This rise in the demand for
home mortgage credit has been accompanied by
a sharp increase in the mortgage holdings of these
institutions, some liquidation of U. S. Government bond portfolios and larger borrowings from
the Federal Home Loan Banks. [TABLE 13.1
Substantial increase shown in
net inflow of funds
Following declines in August and September,
the net inflow of savings funds into savings and
loan associations showed a substantial recovery
during October. Compared with the two-year
low of $60 million reached in September, growth
in the share capital accounts of these institutions
approximated $88 million in October, an increase
of 47 percent. Although exceeded in four of the
first nine months of this year, the net inflow of
savings funds during the reporting month was
greater than in the same month last year. During
both August and September, share capital growth
fell short of that registered during the same 1945
months.
The rise in net savings receipts during October
resulted from an increase in the volume of new
share investments and a decline in withdrawals, a
divergent movement which served to reduce the
withdrawal ratio to 65 percent from 74 percent in
September. A year earlier, withdrawals were
equal to 59 percent of new investments.
Statistics for the first 10 months of 1946 clearly
indicate an all-time record year for growth in the
share capital accounts of savings and loan associations. On the basis of the $906-million growth
registered during the January-October period, it
is estimated that the full year will see net additions to share capital accounts of close to $1,135,000,000 which, compared with the gain recorded
during 1945, will represent an increase of about
$75 million, or 7 percent.
Viewed in the light of the U. S. Department
of Commerce estimates t h a t the annual rate of
savings of individuals has dropped sharply from
last year's high level, the experience of savings
and loan associations in increasing the net inflow
of savings funds in 1946 is impressive. However,
the gain in share capital accounts will fall far
short of the increase in mortgage portfolios
estimated at about $2 billion. [TABLE 14.]
Federal Home Loan Bank Review
'k DIRECTORY
CHANGES
October 1946
Key to changes
*Admission to membership in Bank System
**Termination of membership in Bank System
##Federal charter canceled
01nsurance certificate granted
001nsurance certificate canceled
WINSTON-SALEM DISTRICT
NORTH CAROLINA:
Kernersville:
**Kernersville Building and Loan Association, W. Mountain St.
VIRGINIA:
South Boston:
**##00First Federal Savings and Loan Association of South Boston,
John Randolph Hotel Building.
INDIANAPOLIS DISTRICT
INDIANA:
East Chicago:
**001ndustrial Savings and Loan Association of Indiana Harbor Chicago
and Kennedy Aves.
Committee wound up with the statement: "Every
veteran needing a home should have a home; but
every veteran who can stay in his present accommodations should be encouraged to do so for
the time being. The reservoir of credit available
under the GI Bill of Rights can be used by veterans
for the next ten years, and every veteran who can
wait should be encouraged to wait and not build
until supplies can be obtained in an orderly
fashion. Every effort is being made by all interested parties to see that good housing is built
in Rocky Mount; and that is being accomplished.
An orderly building program will guarantee
good dwellings and will stop rising costs in construction . . . however, if the demand for housing
continues, it is obvious that sooner or later, cost
of housing will become prohibitive. 7 '
Proposed Amendments
CHICAGO DISTRICT
ILLINOIS:
Galva:
0Galva Homestead and Loan Association, 318 Main St.
L I T T L E ROCK DISTRICT
MISSISSIPPI:
Corinth:
**First Federal Savings and Loan Association of Corinth, Fillmore and
Waldron Sts.
TEXAS:
Dallas:
*0Oak Cliff Savings and Loan Association, 219 S. Adams St.
Rocky Mount
(Continued from p. 83)
when war restrictions caused its abandonment.
Resumption at the proper time is strongly
recommended."
Price range
The price range of new construction in this
community has stayed well under the national
maximums, the report of the Mayor's Committee
revealed. A vast majority of the new houses
have been offered for sale to veterans for amounts
ranging from $4,500 to $7,000, with higher priced
dwellings very much in the minority. While it
was recognized that the cost of housing in Rocky
Mount is not high in comparison with nationwide
prices, the Committee expressed concern lest the
current excessive demand, if not held to an
absolute minimum, might price the construction
industry out of business and defeat the housing
program.
Tying together the whole problem of quantity
and quality production, the final report of the
December 1946
FHLBA
Bulletin N o . 8 0
Proposed amendment to Rules and Regulations for the Federal
Savings and Loan System relating to collection and payment
of sales commissions.
(Proposed December 11, 1946; published in The
Federal Register December 14, 1946.)
Proposal has been made by the F H L B Administration to add the following new Section 203.22:
Sec. 203.22. Sales Commissions on Shares.
No sales commission shall be paid by any Federal association to any of
its officers or directors for the sale of its shares.
FSLIC
Bulletin N o . 35
Proposed amendment to Rules and [Regulations for Insurance
of Accounts relating to collection and payment of sales commissions.
(Proposed December 20, 1946; published in The
Federal Register December 25, 1946.)
The Federal Savings and Loan Insurance
Corporation has proposed to amend paragraph
(d) of Section 301.7 by adding the following
sentence:
No sales commissions shall be paid by any insured institution to any of
its officers or directors for the sale of a withdrawable or repurchasable
share, investment certificate, or deposit account issued by such institution.
Bulletin No. 36 supersedes a smilar amendment
proposed in Bulletin No. 35, published in The
Federal Register on December 14.
The Bulletins shown above will not be approved
until at least 30 days after publication in The
Federal Register.
89
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 of new family dwelling units provided
in all urban areas in October 1946, by Federal Home Loan Bank District and by state
[Source: U. S. Department of Labor]
T o t a l u r b a n residential construction
Federal Home Loan B a n k
District a n d State
1- a n d 2-farnily dwellings
Oct.
1946P
Sept.
1946 r
3- a n d more-family dwellings
Oct. 1945
Oct.
Oct.
37,113
Public residential construction
P r i v a t e residential construction
1946P
Sept.
1946'
Oct. 1945
Oct.
1946P
Sept.
1946 r
1946P
Sept.
1946 r
3,659
1,314
8,043
563
1,286
26
19
544
1,286
26
2,057
43, 087
19,496
31,330
31, 385
17, 439
4,469
1,336
590
1,348
1,336
578
615
12
228
65
701
65
258
19
115
31
314
25
88
17
212
42
663
74
337
20
228
65
701
65
258
19
103
31
314
25
88
17
4
12
611
4, 224J
4,200
1,561
1,767
2,864,.
998
1,171
1,310
1,197
3,027
1,507
2,693
312
1,249
708
1,059
1,214
1,650
293
705
489
682
293
1,017
1,955
1,517
887
1,907
1,227
833
48
260
54
38
1,688
229
44
1,209
264
22
748
117
38
1,655
214
44
974
209
19
701
113
33
15
235
25
3
47
4
30
5,161
5,848
3,135
4,588
4,404
2,899
573
463
236
981
722
297
1,550
445
460
779
130
778
721
150
1,499
651
465
769
440
1,153
409
186
1,083
305
385
271
104
392
722
59
1,409
441
460
775
130
592
675
147
1,312
567
382
649
148
524
405
140
948
305
377
252
104
368
4
46
135
4
8
3
187
4
83
48
38
238
141
4
186
130
24
Cincinnati. _
2,961
3,482
1,396
2,543
2,295
1, 316
418
186
80
Kentucky
Ohio
Tennessee _
238
2,173
550
272
2,126
1,084
97
893
406
214
1,783
546
246
1,486
563
93
821
402
24
390
4
166
20
4
72
4
26
474
501
2,451
2,602
1,397
2,414
2,379
1,368
37
18
29
205
937
1,514
869
1,733
353
1,044
917
1,497
781
1,598
349
1,019
20
17
8
10
4
25
80
125
2,277
2,724
1,504
2,140
1,822
1,357
109
134
UNITED
STATES
1,963 ~~
Boston
216
42
1,274
74
337
20
Connecticut
Maine
Rhode Island
Vermont
New York
N e w Jersey
New York.
__
..
Pittsburgh
Delaware
Pennsylvania
W e s t Virginia
Winston-Salem
Alabama
_
D i s t r i c t of C o l u m b i a
F l o r i d a __
Georgia _
M a r y l a n d __
N o r t h Carolina
S o u t h Carolina
Virginia
Indianapolis
Indiana _ _
Michigan
.
Chicago
Illinois _ _.
Wisconsin
184
67
2,006
12
24
60
4
98
524
1,384
492
277
99
4
4
4
36
19
6
4
480
241
70
298
119
51
1,150
115
41
48
960
239
140
78
223
52
24
12
27
17
4
20
33
10
5
371
297
24
268
6,894
3,831
835
786
722
448
93
5,128
181
86
62
350
307
662
25
173
3, 018
35
27
24
185
102
242
25
14
776
12
712
15
10
32
653
30
288
1,576
~~l7973
229
541
235
93
49
407
561
426
72
110
491
767
480
87
148
4,813
6,615
2,598
4, 321
4,720
2, 499 ~~
206
449
267
154
3,737
206
762
444
268
4,935
168
217
250
73
1,890
202
445
263
154
3,257
206
428
325
217
3,544
149
211
246
73
1,820
1, 585
2,472
728
1,470
1,471
680
Colorado _-KansasNebraska--,
Oklahoma--
516
358
235
476
785
693
309
685
272
150
83
223
464
334
223
449
397
392
265
417
San Francisco
8,091
8,128
4,553
7,256
126
6,498
175
110
45
366
179
537
55
135
6,128
196
116
62
438
331
694
28
205
3,671
35
27
29
214
102
245
25
112
5,722
175
102
45
349
179
525
47
_
__
p Preliminary.
90
768
393
375
4
3
45
4
1,147
601
1,315
1,924
87
236
Arizona
.
California. _.
Idaho
Montana.-Nevada
Oregon
_._ _
Utah
Washington
Wyoming
_
28
28
56
4,163
411
564
471
76
110
Topeka.
147 ~
225
541
215
50
49
1,632
A r k a n s a s __
LouisianaMississippi
N e w Mexico
Texas
1,001
1,080
1,325
497
L i t t l e Rock._
-—
112
35
1,408
732
Iowa
__
Minnesota
M i s s o u r i . ___
North Dakota
South D a k o t a -
72
292
499
52
82
980
524
~
.
80
8
19
86
23
1,770
954
Des Moines
30
868
489
1,522
755
O c t . 1945
Oct. 1945
20
43
88
8
17
12
8
r
10
24
1,618
20
5
29
78
3
32
3
Revised.
Federal Home loon Bank Review
Table 2 — B U I L D I N G ACTIVITY—Estimated number and valuation of new family dwelling units
[Source:
U. 3. D e p a r t m e n t of L a b o r .
Dollar a m o u n t s are s h o w n in t h o u s a n d s ]
N u m b e r of family dwelling u n i s provided
P e r m i t \ •aluation
P r i v a t e construction
P r i v a t e co n s t r u c t i o n
Period
Total
construction
Total
1-family
2-family
3- a n d
morefamily
Total
Public
construc- construction
tion
1-family
2-family
88, 089 $2,220,562 $1,932,402 $1,731,959
Total
3- and
morefamily
Public
construction
Nonfarm
$294, 160
635, 772
547, 683
471, 843
25, 276
50, 564
$61, 804
$138, 639
56,179
50, 972
44, 992
2,456
3,524
5,207
200, 440
181, 559
165, 745
6,253
9,561
18, 881
185, 000
168, 657
149, 247
7,394
12, 016
16, 343
636,138
591, 915
528, 218
24, 405
39, 292
44, 223
29, 800
31, 400
29,100
29, 775
31, 400
29,100
26, 696
28, 229
25,116
929
1,146
1, 426
2,150
2,025
2,558
25
124, 532
129,195
127, 065
124, 294
129,195
127, 065
111,861
117, 642
112, 467
3,779
4,379
4,912
8,654
7,174
9,686
238
1946: J a n u a r y - O c t o b e r
714, 300
594, 937
532,141
22, 608
40, 188
119, 363 2, 934, 686 2, 598, 472 2, 355, 607
January r
February r
M a r c h «• ...
April r
May
J u n e r_
July
August.. .
September r
October P
44, 800
49, 500
84, 500
82, 900
88, 700
76,100
80, 400
82,100
65, 800
59, 500
39, 111
43, 342
77, 002
70, 478
68, 758
58, 340
60, 586
62, 090
57, 044
58,186
34, 782
38, 689
68, 461
64,182
60, 549
52, 712
45, 462
55, 931
50, 945
51, 428
1,395
1,889
2,783
2,671
3,417
2,264
2,027
2,063
2,160
1,939
2,934
2,764
5,758
3, 625
4,792
3,364
4,097
4.096
3,939
4,819
392, 376
328, 030
262, 600
20, 285
45,145
33, 646
29, 709
24, 727
2,000
2,982
3,937
127, 233
121,127
111,039
92, 580
6,938
11, 521
10, 088
19, 496
20, 417
19, 256
19, 496
20, 417
19, 256
16, 582
17, 421
15, 494
857
1,069
1,241
2,057
1,927
2,521
476, 932
376, 059
316, 657
21, 500
37, 902
31, 607
34, 370
56, 503
55, 603
60,167
51, 270
52,131
55, 081
43, 087
37,113
25, 918
28, 503
50, 066
44, 996
43, 583
36, 660
36. 830
38, 660
35, 044
35, 799
21, 786
24, 072
41, 785
39, 000
35, 824
31, 372
31, 071
32, 921
29, 335
29, 491
1,309
1,792
2,683
2,571
3,267
2, 144
1,902
1,943
2.050
1,839
2,823
2,639
5, 598
3,425
4,492
3,144
3,857
3, 796
3, 659
4,469
1941: J a n u a r y - O c t o b e r
October
_
1945: J a n u a r y - O c t o b e r .
October,
November
December.
.. _ _
. _
_ _
93, 309
149, 556
336. 214
147, 800
169, 037
316, 924
286, 437
265, 321
231, 938
235, 336
246, 251
224,140
232, 423
5,222
6,969
12, 098
10, 991
13, 754
9,531
8,217
9,014
9,290
8,223
9,282
9, 043
23, 934
13, 420
17, 063
14, 317
13, 269
17, 236
13,833
18,159
13, 981
16, 654
18, 135
29, 766
51, 446
54, 919
59, 557
62, 573
20, 683
8, 500
64, 346 1, 447, 531 1, 230, 579 1, 050, 762
52, 423
127, 394
216, 952
112, 710
99, 025
5,405
8,280
14, 523
465, 564
438, 236
377, 033
23, 319
37, 884
27, 328
91,114
93, 953
95, 040
91,114
93, 953
95, 040
79,194
82, 944
80, 639
3,551
4,134
4,275
8,369
6,875
10,126
100, 873 2,122, 820 1, 841, 210 1, 609,137
89, 897
142,176
281, 610
105,098
116, 568
217, 388
195, 969
181, 907
159, 954
157, 063
168, 556
150. 795
155, 839
4,947
6,659
11, 749
10, 688
13, 304
9,171
7,842
8,654
8.960
7,923
8,941
8,659
23, 400
12, 755
16,109
13, 617
12, 489
16, 261
12, 923
17, 022
13,981
15, 747
15, 996
26,153
43, 790
40, 992
42, 956
54, 347
19,148
8,500
5,689
6,158
7,498
12,422
19, 942
17, 760
19, 814
20, 010
8,756
1,314
176, 285
201, 703
371, 091
340, 614
347, 584
310, 705
316, 379
335, 074
267, 946
267, 305
162, 304
185, 049
352, 956
310, 848
296,138
255, 786
256, 822
272, 501
247, 263
258, 805
Urban
1941: J a n u a r y - O c t o b e r
October
_ _.__
__
1945: J a n u a r y - O c t o b e r
October
November
December
1946: J a n u a r y - O c t o b e r ... ___
January r _ _ _
February r , _ _ _ _
March *
April T ^ _
May r
June r
_
Julyr
August
r
S e p t e m b e r __ _ . _ ___
October P
. _
5,689
5,867
6,437
10, 607
16, 584
14, 610
15, 301
16, 421
8,043
1,314
132,967
147,633
268, 533
245, 565
255,110
223, 734
220, 350
247, 818
191, 826
189, 284
118, 986
131, 886
252, 537
219, 412
211,320
182, 742
177, 394
193, 471
172,678
180, 784
r
Revised.
p Preliminary.
Table 3 . — B U I L D I N G COSTS—Index of wholesale prices of building materials
[Source: U. S. Department of Labor. 1935-1939=100; converted from 1926 base]
All b u i l d i n g
materials
Period
1946: J a n u a r y
February
March
April
May
June
July
August
September
October
December 1946
Paint and
paint materials
Plumbing
Structural
and heating '
steel
Other
115.3
107.0
171.3
130.3
121.4
103.5
111.7
_.
.
126.8
128. 4
128.4
109.6
109.9
110.3
172.8
173. 2
175. 7
132.3
132.4
132.5
124.8
124.8
124.8
103.5
103.5
103.5
113.1
114.0
114.5
.
.._
134.0
135.0
139.5
141.3
142. 7
115.1
147. 5
148.2
149.2
150.5
12S.7
128.7
129.2
132.0
132.6
133.5
134.8
138. 7
140. 5
140. 7
111.0
111.4
112.3
112.4
112.6
112.6
114.1
116.1
116.9
116.9
176. 5
178.3
186.6
190.9
192.1
196.0
197.4
197.8
198. 4
199.2
132.5
132.5
132.5
132.8
133.0
133.5
141.3
140.0
143.5
146.6
124.8
124.9
124.9
132.4
132.4
139.3
139.3
139.7
140.8
140. 8
103.5
109.7
115.9
115.9
115.9
115.9
115.9
115.9
115.9
115.9
115.3
115.9
121.4
122.0
125.1
128.0
129.7
130.7
131. 3
132.5
+0.7
+13.9
+0.1
+11.0
0.0
+6.7
+0.4
+15.3
+2.2
+10.8
0.0
+12.8
0.0
+12.0
+0.9
+17.2
._
P e r c e n t change:
October 1946-September 1946.
October 1946-October 1945
Lumber
132.1
132.5
133.4
_.
__
Cement
129.9
1944: October
1945: October
November
December
Brick a n d
tile
91
Table 4 . — B U I L D I N G COSTS—Index of building costs for the standard house
[Source: National Housing Agency. Average month of 1935-1939=100]
1945
1946
E l e m e n t of cost
October
September
August
150.5
161.6
148.3
159.3
146.1
157.2
143.7
155.6
141.6
153.8
139.2
152.5
138.0
150.6
137.1
148.9
154.2
151.9
149.8
147.7
145.7
143.6
142.1
141.0
Material
Labor
Total
July
May
June
April
March
January
December
November
136.3
148.5
135.5
147.9
135.2
147.5
135.0
147.3
134.6
146.3
140.3
139.7
139.3
139.1
138.5
February
October
Table 5 . — B U I L D I N G COSTS—Index of building costs in representative cities x
[Source: National Housing Agency. Average month of 1935-1939=100]
1946
1945
1944
1943
1942
1941
1940
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Federal H o m e Loan B a n k District and city
Aug.
Nov.
Pittsburgh:
Wilmington, Delaware
Philadelphia, Pennsylvania _
Pittsburgh, Pennsylvania _
Charleston, West Virginia
Cincinnati:
Louisville, K e n t u c k y
C i n c i n n a t i , Ohio
C l e v e l a n d , Ohio
Memphis, Tennessee-..
_
__
Little Rock:
Little Rock, Arkansas
_
N e w Orleans, L o u i s i a n a . . _
Jackson, Mississippi.
A l b u q u e r q u e , N e w Mexico . . .
Houston, Texas
May
Feb.
_ __
154.9
187.4
152.7
166.0
143.1
176.5
146.9
157.4
141.6
172.9
140.9
150. 5
138.5
170.0
139.6
136.3
137.9
161.1
138.9
136.1
134.9
151.1
135.0
134.2
130.8
148.3
131.9
121.6
129.7
138.3
127.0
121.3
122.8
127.9
118.6
115.5
106.5
112.4
104.6
106.8
_
_ _ _ __
__
152.1
152.2
163.1
154.1
148.9
146.1
159.6
147.3
146.0
141.0
147.0
141.6
142.9
140.1
145.9
141.3
138.4
138.2
149.2
139.9
134.7
134.6
147.8
135.6
126.2
130.7
142.3
133.7
118.4
116.7
128.1
118.9
112.1
111.0
124.7
113. 0
107.0
100.5
110.0
107.5
__
_
163.1
160.5
156.8
152.2
146.5
154.9
155.2
148.6
148.6
138.1
145.4
150.2
141.7
137.6
135.5
142.3
143.1
141.6
133.9
132.3
140. 9
142.7
.41.1
132.5
128.6
138.5
141.7
137.2
132.0
126.8
135.4
138.4
129.2
130.9
121.5
135.0
131.9
122.7
117.5
116.6
125.0
126.9
121.1
113.1
118.1
109.9
119.3
109. 6
104.9
104.9
.
.
i For complete explanation of these data, see Statistical Supplement to April 1946 REVIEW.
Table 6 . — M O R T G A G E LENDING—Estimated volume of new home mortgage loans by al
savings and loan associations, by purpose and class of association
[Thousands of dollars]
P u r p o s e of loans
Class of association
Period
1944
January-October
_
October
__ ___
1945
January-October
October
November
December
_ . . . _._
_
.
...
Reconditioning
L o a n s for
all o t h e r
purposes
Total
loans
H o m e purchase
Refinancing
$95,243
$1,064,017
$163,813
$30,751
$100,228
$1,454,052
$669,433
$648,670
$135,949
85,364
892,327
136,993
26,117
83,739
1,224,540
562,869
546,508
115,163
6,095
101,461
15,253
2,699
9,720
135,228
61,965
60,945
12,318
180, 550
1, 357, 555
196,011
40, 736
137, 826
1,912,678
911,671
836,874
164,133
133,147
1,092,313
158,752
32,291
110, 306
1,526,809
724,042
669,179
133, 588
23,985
24,481
22,922
135, 224
135,685
129, 557
18, 751
19,411
17,848
4,857
4,487
3,958
13, 562
14,095
13, 425
196, 379
198,159
187, 710
95,815
96, 709
90,920
84, 819
85,804
81,891
15, 745
15,646
14,899
514,122
2,034,620
226,494
67,489
216,590
3,059,315
1,556,025
1,284,932
218,358
30,807
30, 866
45, 391
53,202
62,189
56, 297
59,708
59, 377
55, 354
60,931
145, 342
154,219
202,995
235,877
243, 458
218, 575
216, 369
211,804
198,842
207,139
21, 372
19,801
24, 244
24,882
24,451
22,402
21, 388
22,032
21,546
24,376
3,803
4,217
6,198
6,796
6,954
6,625
7,327
8,481
8,027
9,061
15, 518
16, 416
21, 335
22, 242
24, 246
22,098
21, 256
22, 765
26,022
24,692
216,842
225, 519
300,163
342,999
361, 298
325,997
326,048
324,459
309,791
326,199
109,146
111,927
155, 960
174,468
186, 282
107, 552
165,031
165,812
154,105
165, 742
92,103
97, 305
123,945
143,114
150,161
136,296
136,966
134,624
133,758
136,660
15, 593
16, 287
20,258
25,417
24,855
22,149
24,051
24,023
21,928
23, 797
Federals
State
members
N o n m embers
Construction
1946
January-October
January
February
M a r c h . __
April
May
June... ...
July
August
September
October.
92
_
...
_______
...
___ _
__ _ _ _
_________
_ _ _
. . .
_ _. . .
...
. . . _._ _ ___ _ . . .
... .
_.
. . . _ . . __ _
Federal Home Loan Bank Review
Table 7.—LENDING—Estimated volume of
new loans by savings and loan associations
Table 8.—RECORDINGS—Estimated nonfarm mortgage recordings, $20,000 and under
[Dollar amounts are shown in thousands]
N e w loans
Federal Home Loan
B a n k District a n d
class of association October Septem- October
1945
1946 berl946
OCTOBER 1946
[Thousands of dollars]
C u m u l a t i v e new loans
(10 m o n t h s )
1946
1945
Percent
change
Savings I n s u r - B a n k s
and
and
ance
trust
loan
comassoci- panies companies
ations
Federal H o m e
Loan Bank
District and
state
U N I T E D S T A T E S . _ |$312,055 ,$48,
. 165, 742 154,105
136,660 133,758
23,797 21,928
Boston
F e d e r a l ._
State member
Nonmember
New York
Pittsburgh
F e d e r a l _.
State member
Nonmember
Winston-Salem
Federal
State member
Nonmember
_
Federal--.
State member
Nonmember
95,815 1, 556,025
84,819 1,284,932
218, 358
15,745
724,042 +114. 9
669,179 + 9 2 . 0
133, 588 + 6 3 . 5
102, 590
21,879
19,400
12,671
200, 325
9,226
10, 673
1,980
8,578
9,174
1,648
5,636
5,919
1,116
88, 316
92,709
19, 300
43, 587 +102. 6
46,892 + 9 7 . 7
12, 111 + 5 9 . 4
34,792
33,144
19, 346
316,184
150, 314 +110. 3
14, 307
15,211
5,274
Federal
State member
Nonmember
Cincinnati _
14,184
14,164
4,796
7,521
9,215
2,610
134, 750
137,640
43, 794
+95.3
53, 522 + 1 5 1 . 8
72, 387 + 9 0 . 1
24, 405 + 7 9 . 4
24,044
21, 368
15,261
228, 313
125,891
+81.4
11,506
8,179
4,359
10, 516
7,269
3,583
7,324
5,354
2,583
115,465
72,761
40,087
59,847
43, 342
22, 702
+92.9
+67.9
+76.6
49,046
45, 646
25,723
441,722
191,034 + 1 3 1 . 2
26,787
18,729
3,530
26,971
15, 426
3,249
13, 238
10, 512
1,973
252, 692
158, 248
30,782
101,020 + 1 5 0 . 1
77,815 +103. 4
12,199 +152. 3
50,134
49,968
31, 352
483,198
251,888
+91.8
22,849
24,815
2,470
22,210
25,228
2,530
13,570
15,647
2,135
219,982
240, 517
22,699
107,785 + 1 0 4 . 1
126, 532 + 9 0 . 1
17,571 + 2 9 . 2
18,057
17,965
11, 529
181, 267
85,177 + 1 1 2 . 8
10,702
6,888
467
10,876
6,602
487
6,301
4,746
482
106,417
70, 411
4,439
46,019 + 1 3 1 . 2
35,390 1 + 9 9 . 0
3,768 + 1 7 . 8
34,752
31, 535
21,779
317,376
172,932
+83.5
17,040
16, 268
1,444
14, 289
15, 691
1,555
9,438
10,753
1,588
147,439
155,407
14, 530
73,754
86, 234
12,944
+99.9
+80.2
+12.3
19,939
18,250
12,117
186,332
92, 280 + 1 0 1 . 9
11,167
6,446
2,326
10,193
5,721
2,336
6,597
4,004
1,516
103,776
59,977
22, 579
47,794 + 1 1 7 . 1
32, 383 + 8 5 . 2
12,103 + 8 6 . 6
17,610
15,911
9,311
161,882
72, 344 +123. 8
7,741
9,709
160
7,681
8,077
153
4,690
4,479
142
75,923
84,407
1,552
35,807 + 1 1 2 . 0
35, 545 +137. 5
992 + 5 6 . 5
13, 398
13, 476
9,898
147, 290
7,965
3,821
1,612
8,185
3,901
1,390
5,656
2,827
1,415
86, 038
44, 959
16, 293
42, 548
43,128
27, 392
395,426
205, 373
26, 452
15, 921
175
20, 422
22, 505
201
15,844
11,363
185
225, 227
167,896
2,303
112,626 +100. 0
90, 561 + 8 5 . 4
2,186
+5.4
Boston
Connecticut
Maine
Massachusetts _
New Hampshire
Rhode Island.Vermont
New York
N e w Jersey
New York
|
Pittsburgh
Delaware
Pennsylvania. _
W e s t Virginia. _|
Winston-Salem...
AlabamaD i s t r i c t of Columbia
Florida
. _
Georgia..
Maryland
N o r t h Carolina.
South Carolina.
Virginia
Cincinnati
Kentucky
Ohio
Tennessee
Individuals
Other
mortgagees
Total
Federal
State member
Nonmember
Chicago
Des Moines
FederaL _
State member
Nonmember
L i t t l e Rock
Federal
State member
Nonmember
Topeka
F e d e r a L . _ _. _ ._
State member
Nonmember
S a n Francisco
Federal _ _
State member
onmember
December 1946
76,986
+91.3
42, 281 +103. 5
22, 098 +103. 5
12, 607 + 2 9 . 2
+92.5
1,083
12,233 26,088
10,131
5,487
82,240
3, 657
950
19, 643
846
25
204
4, 574 5,137
589 1,386
5,101 16,833
3, 466
547
4,228
1,848
90
2,765
19, 528
3,587
48, 774
669
2,001
298
8
1,021
1,171
540
603
971
316
82
641
61
2,670
6,295
1,386
28,490
4, 210
24,371 26,946
26,914
10, 781
121, 712
6,934
21,556
8,399 1,570
1,357
2,853 J 15,972 25,376
6,698
20, 216
3,979
6,802
28,937
92, 775
22,094
2, 632
23,992
920
9,630
6,521
65, 789
352
19,487
2,255
324
171
2,148 20,683
313 1 2,985
172
748
367
8,360
903
150
5,851
520
1,536
57,277
6,976
30,725
7,224 1 12,333
545
88,829
295
1, 503
171
26, 787
11,215
1, 424
852
1, 230
1,400
1,270
6,176
5, 314
6, 619
3,165
7,672
2,372
554
3,605
711
2,835
237
466
851
298
974
803
1,939
1,989
2, 657
819
759
2,137
545
3,297
11, 459
1,829
2,050
1,639
911
4,202
1,270
3,674
1,991
751
803
498
958
11, 395
26, 526
9,211
14,141
6,484
3,020
11, 876
56,927
4,795
28, 540
1,300
11,816
11,616
114,994
4, 665
49,832
2, 430
661
2,713
1,421
2,159
22, 772
3, 609
1,300
635
9,583
1,598
320
5,395
5,901
8,440
91, 595
14,959
19,929
5,249
28,811
32
6,344
7,527
67,892
2,088
3,161
10, 111
18, 700
32
2,078
4,266
1,577
5,950
27,363
40, 529
36, 739
2,191
16,987
36
12,363
17, 527
85,843
27,824
8,915
1,561
630
10,350
6,637
36
7,541
4,822
15,946
1,581
63,222
22, 621
_ ._
18, 578
4,063
15, 506
575
8,864
9,796
57,382
Iowa.
- .
Minnesota
Missouri- _
North DakotaSouth D a k o t a . -
4,267
8,246
5,058
763
244
488
1,581
1,887
40
67
4,502
4,358
6,112
297
237
1,419
2,949
4,055
262
179
1,002
3,752
4,942
75
25
11, 678
21, 461
22,054
1,437
752
16,043
7,040
5,876
13,221
12,823
55,003
1,125
6,110
856
294
7,658
620
679
494
56
5,191
1,042
553
763
206
3,312
730
3,140
715
412
8,224
108
1, 562
463
30
10, 660
3, 625
12.044
3,291
998
35.045
14, 898
1,943
7,176
9,163
5, 935
39,115
2,613
5,169
1,782
5,334
260
477
555
651
1,670
2, /87
772
1,947
4, 600
1, 245
756
2, 562
1, 409
1, 423
144
2,959
10, 552
11,101
4,009
13,453
40, 414
7,999
99,944
49,278
28, 718
227,882
1,299
26, 516
1,028
651
264
2, 350
1, 348
6, 638
320
282
5,773
116
83
62
637
343
702
1
1,613
85,054
524
863
362
2,452
1, 567
7,0331
476
2, 833
336
38, 456 20, 398
152
715
705
54
702
77
2, 632
1,471
5001
554
2, 366
5, 599
369
77
6,363
176,197
2,535
2,356
1,467
9,654
4,312
23,755
1,243
Indiana
- _ M i c h i g a n . - . _.
ChicagoIllinois
Wisconsin
Des M o i n e s
Federal
State member
Nonmember
42S |$275, 769 |$57,971 |$184, 511 $127,946 $1,006,681
27, 218
11,477
8,452
Indianapolis
Indianapolis
1
$326,199 $309,791 $196,379 $3,059,315 $1, 526,809 +100. 4
U N I T E D STATES
Federal
State member
Nonmember
Mutual
savings
banks
Little Rock _ _
A r k a n s a s . . _ ._
L o u i s i a n a - . . __
Mississippi
N e w Mexico..__
Texas _ __
Topeka .
Colorado
Kansas
Nebraska
Oklahoma
.
. _
San Francisco
Arizona.- . . .
California.- . .
Idaho
Montana
Nevada
.__
Oregon
Utah
Washington
Wyoming. _ _
575
1,529
112
1,417
93
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
Banks a n d trust
companies
Insurance
companies
M u t u a l savings
banks
Individuals
Other mortagees
All mortgagees
Period
Percent
Total
Total
Percent
Percent
Total
Percent
Total
Percent
Total
Percent
4.4 $1,091,021
19.4
$216,982
3.9 $1,402,103
24.9
$658,945
11.7
$5,623,190
100.0
865,797
110,429
114, 636
110, 588
19.1
19.9
20.5
21.0
168, 408
23,711
23.310
25, 264
3.7 1,153, 734
4.3
131, 590
4.1
130,986
4.8
117,383
25.4
23.7
23.4
22.2
538, 221
60,928
63,087
57,637
11.9
10.9
11.3
10.9
4, 535, 586
555,893
560,180
527,424
100.0
100.0
100.0
100.0
4.5 2, 222. 441
139,126
4.2
140,890
4.2
180, 656
4.1
213,878
3.8
241, 330
4.0
245, 624
4.3
263, 669
4.9
273,093
4.7
248, 406
5.1
275,769
4.8
25.5
21.9
22.8
23.6
24.1
25.0
26.8
26.9
27.3
26.7
27.4
451, 702
24, 401
24, 973
33,914
44,855
51,851
50,123
58,020
53,616
51, 978
57,971
5.2 1, 711, 536
3.9
151,601
4.0
140,477
4.4
162,986
5.1
180,318
5.4
187,311
5.5
168,889
5.9
178,128
5.4
184,005
5.6
173, 310
5.8
184,511
19.7 1,030,492
23.9
71,633
22.7
68, 703
21.3
79, 926
20.3
98.770
19.4
111,892
18.4
104,662
18.1
118,490
18.4
131,257
18.7
117,213
18.3
127,946
11.8
11.3
11.1
10.4
11.1
11.6
11.4
12.1
13.1
12.6
12.7
8,703, 938
634,117
618, 763
765,973
887, 266
964, 438
917,414
981,187
999, 221
928, 878
1,006,681
100. 0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
$2,009,707
35.7
$244, 432
1,610,167
207,006
_
205,100
194,440
35.5
37.2
36.6
36.9
199, 259
22, 229
23,061
22,112
4.4
4.0
4.1
4.2
2, 900,442
220, 420
217, 621
277, 408
315, 471
333,192
308,226
314, 779
310, 723
290, 547
312,055
33.3
34.8
35.2
36.2
35.6
34.6
33.6
32.1
31.1
31.3
31.0
387, 325
26, 936
26,099
31, 083
33,974
38,862
39.890
48,101
46, 527
47, 424
48,429
1945.
January-October
October
November
December
Total
Percent
Total
1946
January-October
January. _
February
March
April
May
June..,
July
August.. _
September
October
Table 1 0 — G l L E N D I N G — H o m e loans
Table 1 1 . — F H A — H o m e mortgages insured
[Dollar amounts are shown in thousands]
[Premium paying; thousands of dollars]
Total loans reported closed and
disbursed 2
Cumulative through
March 30
April 26
May 31
June 28
July 26
August 30
September 27
October 25^ __
November 25
No. of applications
and reports
126, 249
156, 786
209,334
257,986
305, 503
371,142
420,960
473, 784
524, 428
Title II
T i t l e V I (603)
Period
Amount of
guaranty
and insurance
105, 990
118,143
133,972
165, 737
200, 231
257, 471
303, 353
356, 804
409,112
New
Principal
amount of
loan
$214,869
245,046
283,948
364, 514
454, 709
610, 007
737,342
886, 216
1,032, 596
1945: October
November.
December
$495, 385
555, 541
634,812
804.907
994, 778
1, 316, 554
1, 584, 444
1,906,743
2, 217, 347
_.
1946: J a n u a r y
...
February.. .
__ _
March...
_.___.
April
__
May
June
_
July
August. .
September
October _ .
_ _ ._ _
Existing
New
Existing
$1, 228
1,777
1,965
$18, 606
18,887
18,051
$14,645
10,261
10,836
$608
518
547
3,095
3,728
3,760
3,570
4, 406
5,573
6,374
5,668
5,279
6,576
24, 275
20,006
24,346
24,160
26, 389
31, 551
26,956
20,831
20,713
26,553
9, 617
6,267
5,122
6,870
5,988
3,678
4,020
2,959
2,084
2,475
1, 676
1,241
1 152
983
3,712
1,012
572
960
613
1,335
1
Records of Veterans Administration.
Totals do not include 68,937 loans acted upon and approved for loan
closing. Their dollar volume, $418,025,000, brought the aggregate principal
of Gl home loans to $2,635,372,000 on November 25.
2
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]
P r i n c i p a l assets,
October 31, 1946
L e n d i n g operations,
October 1946
C a p i t a l a n d principal liabilities,
October 31, 1946
Federal Home Loan Bank
Advances
Repayments
Advances
outstanding
Boston
N e w York
_
___. .
Pittsburgh
__
_.
Winston-Salem
. . . . .
.. _ ...
Cincinnati
__
_ _ ______
I n d i a n a p o l i s . ___ _
...
Chicago
- . .__.-__
.
DesMoines. _ ...
_
Little Rock
._ ._
Topeka
_ _.
S a n Francisco ._
.
$1, 850
3,031
2,986
•3, 383
1,791
6,505
5,115
2,642
1,401
1,491
2,530
$828
1,430
1,005
2,297
1, 843
191
3, 055
429
869
609
2,413
$17, 085
20, 896
27, 513
29, 681
23, 330
22, 710
41, 351
20, 637
13.158
11, 998
24.159
October 1946 ( C o m b i n e d total)
32, 725
14, 969
32, 446
12,142
6,577
19, 748
S e p t e m b e r 1946.. __
... _
... .
October 1945
1
2
3
Cash i
Government
securities
Capital 2
$2, 252
1,756
2,187
2,637
1,738
2,651
1,622
210
1,138
1,612
2,256
$11, 484
24, 671
7,445
4,119
27, 642
14, 236
9,964
10, 445
9,119
8,040
22, 457
$21,131
29, 847
18, 913
20, 644
29, 443
16, 090
25, 843
15, 458
13, 354
11, 658
27, 694
252. 518
20, 059
149, 622
234, 762
32, 572
130,109
86, 598
20, 917
232, 626
Bonds
$9, 000
Member
deposits
Total
assets,
October 31,
1946 1
17, 000
15, 000
12, 000
16, 000
22, 500
15, 000
10, 000
9,500
14, 000
$789
17, 609
1,367
906
11, 538
7,610
4,716
939
165
571
7,370
$30, 926
47, 471
37, 307
36, 565
53, 005
39, 725
53, 079
31, 411
23, 525
21, 736
49,078
230, 075
140,000
53, 580
423, 828
228, 888
3 102, 000
54, 530
398, 337
217, 048
3 68, 500
53,749
341, 445
Includes interbank deposits.
Capital stock, surplus and undivided profits.
Debentures.
94
Federal Home Loan Bank Review
Table 1 3 — I N S U R E D A S S O C I A T I O N S — P r o g r e s s of institutions insured by the FSLIC
[Dollar amounts are shown in thousands]
Operations
P e r i o d a n d class
of association
Federal
Home
Loan
New
B a n k admortgage
vances
loans
N e w priv a t e investments
Private
repurchases
$79,497
88,304
185, 210
$150,000
151,335
144,664
$163,628
147,022
180, 352
$91,668
92,650
71,777
56.0
63.0
398
20,165
19, 374
19,373
19, 373
19,358
19,358
16,832
16,306
16, 306
16,305
163, 559
154,835
144,111
145,744
159, 546
189,908
187,401
196,495
216, 573
233, 503
169,107
174,954
238, 268
268,706
285,613
257,175
254,858
255,273
240,708
254,626
283,487
182,679
198,176
198, 896
196, 973
219,825
296,710
207,782
185, 754
202,178
205, 537
122,099
129, 573
123, 265
116, 370
86,017
224,686
140,849
135,144
129, 272
72.5
66.8
65.4
62.0
59.1
39.1
75.7
67.8
72.7
63.9
3, 231,187
3, 271,317
3,348, 567
18,058
18,058
18,058
58,694
62,153
137,839
95,815
96,709
90,920
108, 252
97, 373
120,195
59,925
59,023
44, 352
55.4
60.6
36.9
3,395,108
3,435,482
3,481,382
3, 532,406
3, 586, 501
3,677,643
3, 716,445
3, 758,827
3,760, 634
3,839,002
15, 250
14,540
14,539
14,539
14,539
14,539
12, 380
11,956
11, 956
11,956
124, 242
118,501
109, 213
106, 599
115,009
137,605
134, 376
142,018
153,096
164,305
109,146
111,927
155,960
174,468
186, 282
167, 552
165,031
165,812
154,105
165, 742
190,748
122,452
132,145
132,092
130,551
144,470
194,872
136, 777
121,872
132,882
144, 388
82,173
86,471
81, 241
78,013
55,038
156, 734
95, 328
80, 296
84, 518
75.7
67.1
65.4
61.5
59.8
38.1
80.4
69.7
74.1
63.6
1,823,886
1,837,784
1,871,343
5,309
5,308
5,308
20,803
26,151
47,371
54,185
54,626
53,744
55, 376
49,649
60,157
31,743
33,627
27,425
57.3
67.7
45 6
1,904, 560
1,925,832
1,950,698
1,975,517
2,003, 294
2,047, 250
2,081,935
2,110, 511
2,131, 873
2,156,693
4,915
4,834
4,834
4,834
4,819
4,819
4,452
4,350
4, 350
4,349
39,317
36, 334
34,898
39,145
44,537
52,303
53,025
54, 477
63, 477
69,198
59,961
63,027
82,308
94, 238
99, 331
89,623
89,827
89, 461
86, 603
88,884
92,739
60, 227
66,031
66,804
66,422
75, 355
101,838
71,005
63,882
69, 296
61,149
39,926
43,102
42,024
38, 357
30,979
67,952
45, 521
44, 818
44,754
65.9
66.3
65.3
62.9
57.7
41.1
66.7
64.1
70.2
64.6
P r i v a t e reGovernm e n t b o n d purchasable
capital
holdings
Government
share
capital
$5,055,073
5,109,101
5, 219,910
$23,367
23,366
23,366
5, 299,668
5,361, 314
5,432,080
5, 507,923
5, 589,795
5,724,893
5, 798,380
5,869,338
5, 922, 507
5,995,695
Total
assets
N e t first
mortgages
held
Cash
2,476
2,474
2,475
$5, 797, 238
5,878,098
6,148, 230
$3,763,128
$307, 712
$1,839,008
2,477
2,481
2,485
2,486
2,488
2,490
2,493
2,495
2,497
2,496
6, 204,954
6, 274,832
6.359,998
6,462,376
6, 592, 552
6, 743,121
6,810,626
6,916,472
7,012, 249
7,114,023
4,051, 583
279, 543
1,792,418
4, 519, 248
347,362
1,641,628
4, 922, 400
289,903
1, 566,979
1,466
1,466
1,467
3,676,401
3, 732,490
3,923, 501
2, 382,101
194,678
1, 213,609
1,467
1,468
1,469
1,469
1,471
1,472
1,473
1,473
1,474
1,472
3,955,391
3, 999,837
4,050,719
4,118,076
4, 204,057
4, 311, 747
4, 344, 421
4,411,389
4, 469, 937
4, 537,135
2, 571,919
169,884
1,175, 285
2,886, 641
221,431
1,067,943
3,151,813
180, 457
1, 004, 260
1,010
1,008
1,008
2,120,837
2,145,608
2, 224, 729
1, 381,027
113,034
625,399
1,010
1,013
1,016
1,017
1,017
1,018
1,020
1.022
1,023
1,024
2, 249, 563
2, 274,995
2,309, 279
2,344, 300
2,388,495
2,431, 374
2,466, 205
2, 505,083
2, 542, 312
2, 576,888
1,479,664
109,659
617,133
1,632,607
125,931
573,685
1, 770, 587
109,446
562, 719
Number
of associations
Repurchase
ratio
ALL INSURED
1945: October
November
December
_
1946: J a n u a r y February
March
April ._
MayJune..
July
September.
___
FEDERAL
1945: October
November
December
.
__
1946: J a n u a r y .
February
March
April
MayJune.
July—August...
September
.
STATE
1945: October
November
December
1946: J a n u a r y
February
March
April.._
May..
June
July—.
August..September
_
__
__
.
Table 1 4 . — S A V I N G S — S a v i n g s and loan share investments and repurchases, October 1946
[Dollar amounts are shown in thousands]
All associations
Period
1945: J a n u a r y - O c t o b e r
October
November
December
1946: J a n u a r y - O c t o b e r
January
February
March
April.._
May
June
July
August
September
October
December 1946
New
investments
Repurchases
Net
inflow
I n s u r e d associations
Repurchase
ratio
New
investments
Net
inflow
$841, 292
$708, 303
91,668
92,650
71, 777
71,960
54,372
108, 575
Repurchase
ratio
New
investments
Repurchases
Net
inflow
54.3
$380,032
$241,810
$138,222
63.6
56.0
63.0
39.8
39,149
37,024
43, 533
28,153
26, 231
23,193
10, 996
10, 793
20, 340
71.9
70.8
53.3
Repurchase
ratio
$1,929,627 $1,083,102
$846, 525
119,821
118, 881
94, 970
82,956
65,165
128, 915
2, 656,006 1,749,786
906, 220
65.9 2,172,460 1,412,782
759, 678
65.0
483, 546
337,004
146, 542
69.7
244,619
150,656
158, 627
155,455
147, 675
112,144
271, 568
176,823
169,863
162, 356
90,342
69,813
84, 736
92,622
99,038
157, 550
85, 368
78,431
60,160
88,160
73.0
68.3
65.2
62.7
59.9
41.6
76.1
69.3
73.8
64.8
77,950
60, 580
68,603
75,631
80,603
133, 808
72,024
66,933
50, 640
72, 906
72.5
66.8
65.4
62.0
59.1
39.1
75.7
67.8
72.7
63.9
51,474
37, 790
45,187
49,181
49, 740
49,869
60, 226
47,472
44,269
48, 338
39,082
28, 557
29,054
32,190
31, 305
26,127
46,882
35,974
34,749
33,084
12, 392
9,233
16,133
16,991
18,435
23, 742
13, 344
11, 498
9,520
15, 254
75.9
75.6
64.3
65.5
62.9
52.4
77.8
75.8
78.5
68.4
202, 777
184, 046
223,885
334,961
220, 469
243, 363
248,077
246, 713
269,694
356,936
255, 254
230,023
250, 516
56.1 $1,549,595
Repurchases
U n i n s u r e d associations
59.1
64.6
42.4
163,628
147, 022
180,352
283,487
182,679
198,176
198, 896
196, 973
219, 825
296, 710
207, 782
185, 754
202,178
205, 537
122,099
129, 573
123, 265
116, 370
86,017
224,686
140,849
135,114
129, 272
95
Table 17—GOVERNMENT SHARES
Table 1 6 . — H O L C — M o r t g a g e loans outstanding and properties on hand
Investments in member associations
[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 amounts are shown in thousands]
P r o p e r t i e s owned
D u e on
property
sold
D u e on
original
loans
Month
Book
value
Number
1
$358,922
366, 427
370,447
358, 541
$282,904
231, 950
129,005
15,641
40,615
31, 594
17, 217
2,362
1945: October
November-December _
590, 747
577, 748
565, 923
296,405
291, 208
286,396
2,001
1,594
1,367
357
296
249
1946: J a n u a r y
F e b r u a r y . _ _ __ __
March
April
May
550, 745
538, 330
524, 751
510, 598
496,662
484,416
470, 553
458, 879
447, 522
435, 748
279,977
274, 666
268,894
262, 752
256,498
250,888
244,905
239, 683
234, 594
229,153
1,133
1,004
935
769
736
685
638
617
607
516
212
186
175
147
136
127
122
113
103
89
October
October
October
October
July
.August
S e p t e m b e r __ -_
H o m e O w n e r s ' L o a n Corporation
Treasury
T y p e of operation
$1,449,502
1, 236,432
997, 970
774,179
1941:
1942:
1943:
1944:
1
Federals
State
members
1,862
$50,401
4,710
$213, 701
995
$66,495
5,705
$280,196
1,831
$49, 300
$48,150
$1,150
4,243
$178,401
$167, 558
$10, 843
738
$45, 456
$41,106
$4,350
4,981
$223,857
$208,664
$15,193
$261
$2,323
$468
$2, 791
2
Federals
October 1935-September 1946
Applications:
Number
_ ._ _
Amount
._
_ .
Investments:
Number
_
Amount
__
Repurchases..
N e t outstanding investments._
T h i r d Q u a r t e r 1946
Applications:
Number
Amount-.
Investments:
N u m b e r . - _ _ _.
Amount
Repurchases.
Total
__ __
__ .
1
Refers to number of separate investments, not to number of associations
in which investments are made.
2
Investments in Federals by the Treasury were made between December
1933 and November 1935.
* Includes re-acquisitions of properties previously sold.
Table 18.—FHLBS—Membership in the Federal Home Loan Bank System
[Dollar amounts are shown in thousands]
1945
1944
September
September
1946
September
T y p e of i n s t i t u t i o n
No.
All m e m b e r s _. _. _
-.
_-
-
Savings a n d loan associations
Federal
-.
Insured state
Uninsured state _ _ _
M u t u a l savings b a n k s
__
. -
_
_
-
-_
_ __
_
__ __
Assets
June
No.
Assets
No.
Assets
No.
Assets
3,702
$9, 676,092
3,699
$9, 443, 242
3,697
$8,144,151
3,706
$6, 945,108
3,665
8, 628, 457
3,660
8, 358, 532
3,658
7,192, 282
3,666
6,101, 752
1,474
1,019
1,172
4, 469, 937
2, 534, 900
1, 623, 620
1,472
1,014
1,174
4, 311, 747
2, 424,109
1, 622, 676
1,467
1,005
1,186
3, 632,197
2, 086, 970
1, 473,115
1,464
992
1,210
2, 961, 860
1, 745, 993
1, 393, 899
25
630, 039
25
630. 039
25
566, 553
22
473,198
12
417, 596
14
454, 671
14
385, 316
18
370,158
A Management Survey on Savings Campaigns
(Continued from p. 75)
tomers who might not have been reached so effecings, the correspondence from managing officers
tively through conventional media.
also highlighted the use of specific advertising
Many associations, already acutely aware of the
media such as newspapers, radio, direct mail,
importance of adequate modern office quarters,
house organs and other good will builders, the
have been unable to carry out expansion and
sponsorship of school and payroll savings cammodernization programs because of the restricpaigns, and other matters of special importance
tions on commercial construction. B u t the subin connection with obtaining new investments for
ject, judging from the opinions of the managing
their institutions. Also several associations emofficers in the R E V I E W ' S survey, is well worth the
phasized the importance of an over-all plan for such
attention devoted to it by executives and their
a campaign, and for testing the results to be cerboards of directors.
tain that expenditures were being made in the
most effective manner possible. The January
Next month
issue of the R E V I E W will continue the discussion
I n addition to the discussion of these general
on these subjects.
elements of association operations affecting sav-
96
Federal Home Loan Bank Review
U. S. GOVERNMENT PRINTING OFFICE: 1946
FEDERAL
HOME LOAN BANK DISTRICTS
BOUNDARIES OF FEDERAL HOME LOAN BANK DISTRICTS
FEDERAL HOME LOAN BANK CITIES
BRANCH CITIES
OFFICERS OF FEDERAL HOME LOAN BANKS
BOSTON
B . J. ROTHWELL, Chairman; E . H . W E E K S , Vice Chairman; W. H . NEAVES,
president; H. N . FAULKNER, Vice President and Assistant Treasurer; L. E .
DONOVAN, Secretary-Treasurer; BEATRICE E . HOLLAND, Assistant Secretary;
PHILIP A. HENDRICK, Counsel.
NEW
YORK
GEORGE MACDONALD, Chairman; R O Y H . BASSETT, Vice Chairman;
NUGENT FALLON, President; ROBERT G. CLARKSON, Senior Vice President;
DENTON C. LYON, Vice President and Secretary; HAROLD B. DIFFENDERFER,
Vice President and Treasurer; JOSEPH F . X. O'SULLIVAN, Assistant Secretary
and Office Attorney.
INDIANAPOLIS
H. B. WELLS, Chairman; FKRMOB S. CANNON, Vice Chairman and Vice
President; F R E D T . G R E E N E , President-Secretary; G. E . OHMART, Vice
President-Treasurer; SYLVIA F . BROWN, Assistant Secretary; CAROLINE F .
WHITE, Assistant Treasurer; HAMMOND, BUSCHMANN & ROLL, Counsel.
CHICAGO
C. E . BROUGHTON, Chairman; H . G. ZANDER, JR., Vice Chairman; A. R .
GARDNER, President; J. P . DOMEIER, Vice President and Treasurer; CONSTANCE M . WRIGHT, Secretary; LAURETTA QUAM, Assistant
PITTSBURGH
DES
E. T . TRIGG, Chairman; C. S. TIPPETTS, Vice Chairman; RALPH H . RICHARDS, President; G. R. PARKER, Vice President-Secretary; DALE PARK,
Treasurer; WILLIAM S. BENDER, Counsel.
Treasurer;
GERARD M . UNGARO, Counsel.
MOINES
ROBERT E . L E E HILL, Chairman; E . J. W E B B , Vice Chairman; R. J. RICH-
ARDSON, President and Secretary; W. H . LOHMAN, Vice President and
Treasurer; A. E . MUELLER, Assistant Treasurer; J. M . MARTIN, Assistant
Secretary; EMMERT, JAMES, NEEDHAM & LINDGREN, Counsel.
WINSTON-SALEM
H. S. H A WORTH, Chairman; E . C. BALTZ, Vice Chairman; O. K. L A R O Q U E ,
President-Secretary; Jos. W. HOLT, Vice President-Treasurer; SPRUILL
THORNTON, Counsel.
LITTLE
ROCK
B. H . WOOTEN, Chairman; W. P . GULLEY, Vice Chairman; H . D . WALLACE,
President; J. O. CONWAY, Vice President; W. F . TARVIN, Treasurer.
CINCINNATI
HOWARD L. BEVIS, Chairman; W. M E G R U E BROCK, Vice Chairman; W. D .
SHULTZ, President; W. E . JULIUS, Vice President-Treasurer; J. W. WHITTAKER, Secretary; E . T . BERRY, Assistant Secretary; TAFT, STETTINIUS &
HOLLISTER, Counsel.
SAN
TOPEKA
W M . M . JARDINE, Chairman; J. E . BARRY, J R . , Vice Chairman; C. A.
STERLING, President and Secretary; R. H . BURTON, Vice President and
Treasurer; JOHN S. D E A N , Counsel.
FRANCISCO
B E N A. PERHAM, Chairman; W M . A. DAVIS, Vice Chairman; FRANK H .
JOHNSON, President and Secretary; GUY E. JAQUES, Vice President; IRVING
BOGARDUS, Vice President and Treasurer, Manager of Portland Branch; A.
C. NEWELL,Vice President, Manager of Los Angeles Branch; E . M. JENNESS;
Assistant Secretary; E . E . PEARSON, Assistant Secretary; KATHLEEN
MCCLIMENT, Assistant Secretary; T . A. MARCURE, Assistant Treasurer;
L. F . NOLAN, Assistant Treasurer; G. H . MELANDER, Assistant Treasurer;
VERNE DUSENBERY, Counsel.
@FedFRASER