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vol. 6 immt N 5 " FEDERAL HOME LOAN BANK REVIEW FEBRUARY 1940 ANNUAL STATISTICAL NUMBER ISSUED BY FEDERAL HOME LOAN BANK BOARD WASHINGTON D . C . For the third successive year, the FEDERAL HOME LOAN BANK REVIEW is presenting in February an analysis and statistical summary of home-mortgage finance and related activities during the preceding year. In addition to the narrative discussion of the general significance of trends indicated by the year-end figures, this issue contains the usual monthly statistics and also selected statistical reports for the entire year 1939- It is the most valuable issue for reference that is published during the year. CONTENTS FOR FEBRUARY FEDERAL 1940 SPECIAL ARTICLES Pag« 138 Review of 1939 HOME STATISTICS Residential construction a n d home-financing activity Residential construction LOAN BANK REVIEW Published monthly by the FEDERAL HOME L O A N BANK BOARD John H. Fahey, Chairman T. D. Webb, Vice Chairman F. W. Catlett W. H. Husband F. W. Hancock, Jr. FEDERAL HOME LOAN BANK SYSTEM FEDERAL SAVINGS AND LOAN ASSOCIATIONS FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION HOME OWNERS' LOAN CORPORATION 158 160 New mortgage-lending activity of savings a n d loan associations Mortgage recordings 160 160 Small-house building costs Federal Savings a n d Loan System Federal Savings a n d Loan Insurance Corporation Federal H o m e Loan Bank System Dividends paid or declared Interest rates on advances to members C o m p a r a t i v e s t a t e m e n t of condition, 1939, 1938, a n d 1937 161 161 162 163 163 164 165 Statistical tables: Nos. 1,2: N u m b e r a n d estimated cost of new family dwelling units . . . . No. 3: Small-house building costs Nos. 4, 5: E s t i m a t e d lending activity of all savings a n d loan associations . No. 6: Index of wholesale price of building materials No. 7: M o n t h l y operations of Federal a n d State-chartered insured associations No. 8: Institutions insured b y t h e Federal Savings a n d Loan Insurance Corporation No. 9: Lending operations of t h e Federal H o m e Loan Banks No. 10: G o v e r n m e n t investments in shares of savings a n d loan associations . Nos. 11, 12: H o m e Owners' Loan Corporation Nos. 13, 14: Mortgage recordings Supplemental tables: A: S t a t e m e n t of condition of t h e Federal H o m e Loan Banks B: S t a t e m e n t of profit a n d loss of t h e Federal H o m e Loan Banks 170 172 173 174 175 175 176 176 176 177 166 168 REPORTS Resolutions of t h e Board F r o m t h e m o n t h ' s news Directory of member, Federal, a n d insured institutions added during November-December 148 157 178 Announcement of t h e designation of Chairmen a n d Vice Chairmen a n d t h e a p p o i n t m e n t of Public Interest Directors 180 SUBSCRIPTION PRICE OF REVIEW. The FEDERAL HOME LOAN BANK REVIEW is the Board's medium of communication with member institutions of the Federal Home Loan Bank System and is the only official organ or periodical publication of the Board. The REVIEW will be sent to all member institutions without charge. To others the annual subscription price, which covers the cost of paper and printing, is $1. Single copies will be sold at 10 cents. Outside of the United States, Canada, Mexico, and the insular possessions, subscription price IB $1.60; single copies, 15 cents. Subscriptions should be sent to and copies ordered from Superintendent of Documents, Government Printing Office, Washington, D. C. APPROVED BY THE BUREAU OF THE BUDGET. 205770-40 1 SUMMARY: "REVIEW OF 1939» I. Vital statistics of the savings and loan industry: 1939. A. The 7-percent growth in assets reported for FHLB member savings and loan associations during 1939, in face of decline in number of members, indicates continued strengthening of the home-financing system. B. The increase in the total amount of mortgage loans outstanding was the largest since 1929, reflecting the high rate of new lending. C. Gains in private share capital of identical insured institutions were larger than either 1938 or 1937 (18 percent over 1938). D. A study of the supply of, and demand for, funds of a comparable group of insured associations reveals that the new mortgage loans made approximated net increase in private capital plus loan repayments. II. For all sectors of the national economy, 1939 was a better year than 1938. A. Early summer recovery was accelerated by September war declaration, and for last quarter, business activity matched best quarter of 1929. Outstanding: increase in durable goods production. Caution: wave of buying caused production to out-run consumption, and accumulated inventories warned of possible readjustments in 1940. B. Stable or falling money rates indicated for immediate future. III. Approximately 473,000 nonfarm dwelling units were built during 1939: an increase of 37 percent over 1938, and 65 percent over 1937. A. For the first time in 10 years construction volume approximated the annual requirements for replacements and additional families. B. The number of 1-family units was up 35 percent with the greatest gains shown by the Chicago, Pittsburgh, and Indianapolis Bank Districts. C. Building costs, particularly the cost of materials, rose sharply during the last quarter. Labor costs were relatively unchanged. IV. Savings and loan associations continued to lead in home-mortgage lending by accounting for the greatest single share (31 percent) of total mortgage recordings ($3,766,000,000) in 1939. Second: banks and trust companies (25 percent). A. New mortgage loans of savings and loan associations totaled almost $1,000,000,000—up 24 percent from 1938, and largest volume since 1930. B. Greater participation by savings and loan associations in financing new construction was indicated by a rate of increase in construction lending greater than the increase in the volume of 1-family building. C. Nonfarm home-mortgage debt: preliminary estimates for 1939 show an increase of $400,000,000—the third successive annual increment. V. Real estate sales: above the levels of 1938 and 1937, with greatest activity in new 5- to 6-room modern houses. A. Significant price differential between old and new properties continues. B. The disposition of institutionally owned property continued. An identical group of Bank System members reported a 12-percent decline in real estate holdings from June 1938 to June 1939. C. Foreclosures, dropping 11.5 percent below 1938, completed the sixth consecutive year of decline. There are some indications that the index may be leveling off. D. Rents: up gradually during last half of the year, but building material prices increased more rapidly. Over-all vacancy ratios rose in many cities due to marked increases in unoccupied multifamily units. VI. Individual long-term savings reached a new all-time high at end of 1939. A. Greatest increases: U. S. Savings Bonds—53 percent/ all insured savings and loan association share investments—24 percent. B. Rates of return paid on savings in 1939 were lower than in 1938 in most instances. Important: more pronounced downward trend in savings and loan association dividend rates evident. VII. Prospects: 1940. (A synthesis of private and Governmental forecasts.) A. National income—a new recovery high in excess of $70 billion. B. Average annual rate of industrial production—above the 1939 level. C. Residential construction—widespread differences of opinion, with majority forecasting increases (FHLBB estimate indicates total residential building unlikely to vary greatly from 1939). D. Savings and loan lending—probable increase over 1939 volume. 138 Federal Home Loan Bank Review REVIEW OF 1939 How did your business in '1939 compare with the 12 months of 1938? Savings and loan managers and directors are invited to measure the progress of their institutions against the trends in their own Bank District and for the entire savings and loan industry. This third annual survey analyzes savings and loan operations against the hackground of general business conditionsf and digests prospects for 1940. • M A N Y a savings and loan executive, tearing the last sheet from his 1939 calendar, summed up the decade just ended as years of crisis, recovery, and sweeping economic change. Few believed it was just the end of another year, for 1940 brought the Western World from 10 years of outward peace and growing international strain to outright war. Uncertainty engendered by economic crises was replaced by the greater uncertainty threatened by war conditions. In the face of these evidences of transition, the savings and loan industry could look back on 1939 as the most successful year in the decade. Significant too was the widespread feeling as the industry stood on the threshold of 1940 that despite all uncertainties, mistakes of the past could be more successfully avoided because of new sources of information and new concepts of their usefulness to association management. This third annual survey, made with the cooperation of the Division of Research and Statistics, collects as much information as possible on the basis of activity within each Bank District. The object: to bring national trends closer to the operation of each individual association, and to permit officers to measure gains made by their institutions in relation to trends of other associations in their area. After six years of rapid expansion in the membership of the Federal Home Loan Bank System, 1939 marked a period of consolidation of gains and more normal growth. As a result of mergers and reorganizations of member institutions, strengthening the home-financing system, a net decrease of 31 occurred last year in total Bank System membership, in contrast to a net gain of 19 in 1938. I n contrast to this decline in number, however, was a growth from $4,432,000,000 to $4,741,000,000 in combined resources of member institutions. By the year-end, in the majority of Bank Districts members held more than three-fourths of the assets of all savings and loan associations. With membership approaching its maximum, newly admitted February 1940 savings and loan members become fewer each year, so that the 7-percent increase in assets during 1939— about the same gain as was registered in 1938—is due in large part to actual growth of members. This is all the more remarkable in view of the fact that the assets of a number of savings and loan members have been revised downward as the result of consolidations, reorganizations, and the adoption of the direct-reduction loan plan. To permit executives to compare the 1939 rate of growth of their associations with the trend in their Districts, dollar and percentage increases in assets have been charted. Last year, as in 1938, the most striking advance was made by all savings and loan members in the Winston-Salem District, where an increase of more than 18 percent ($65,000,000) was shown. During 1938, increases of more than 5 percent were recorded by a group of identical member associations in only five of the Bank Districts; last year, gains of more than 5 percent were reported by all Districts, with seven showing better than 10-percent advances. GROWTH IN ASSETS OF 2,448 IDENTICAL FEDERAL HOME LOAN BANK MEMBERS Percent increase 1939 over 1938 F H.L.B. Dist. United States Dollar Am't. (COO omitted) o PERCENT 5 10 15 20 25 $295,066 H 3 8 9 H H H H B B H I 4 Winston Salem 3 Pittsburgh II Portland 17,495 H S B H H H H I ^ H I H D H H 8 Des Moines 23,179 H H H I H | H H H H i i H f l H I 7 Chicago 29,121 flBBHHRHHHHHHI 12 Los Angeles 27,273 p H l f l H H H B H B H i 9 Little Reck 2i,937 E H H H H H H H B I New York 27,338 H H B B D B H H I 6 Indianapolis !6,ooo H f l H H f l H f l 1 Boston 20,076 p H H H H H I 10 Topeko 8,780 nHBHBKRR 5 Cincinnati 37,?.4i pSBHBHflB W I S I O N OF RESEARCH AND STATISTICS FEDERAL HOME LOAN BANK BOARD I 1 139 With outstanding home-mortgage loans accounting for 70 percent of savings and loan assets, it is significant to note that the home-financing activity of these institutions reversed its 1938 decline to reach new post-depression highs in 1939. The total volume of loans outstanding showed a substantial gain over the balance at the beginning of the year, indicating the excess of new lending over repayments. This was the third successive year that savings and loan associations had been able to report a larger balance of mortgage loans outstanding on December 31, than at the close of the previous year. Although it is not possible at this date to obtain figures for all classes of associations, the statistics for all insured institutions indicate that the increase during 1939 was the largest since 1929. The outstanding-mortgage-loan index of a group of comparable insured associations rose more than 16 percent during the year. Mortgage balances of Federals increased more than those of insured State members, reflecting a higher rate of lending by the former group. The volume of new mortgage loans written was approximately $986,000,000—the highest since 1930. I t represented an increase of 24 percent over 1938, and 10 percent more than the 1937 peak. The activity for individual Bank Districts is summarized in the accompanying bar chart which indicates that all 12 regions had a greater volume of business in 1939 than in 1938. This is in contrast to 1938 when the Little Rock Bank District was the only area to report an increase over the preceding 12-month period. PERCENT INCREASE IN CUMULATIVE LENDING ACTIVITY OF ALL SAVINGS AND LOAN ASSOCIATIONS 1939 am 1938- By F.H.LB. Districts PERCENT 5 !2 U s Angetes 140 10 15 20 25 30 JW_ The long-term trend of mortgage lending by all savings and loan associations has been compared with statistics on industrial production in the chart in the middle of this column. The unadjusted mortgage-lending series reached new high levels last year, and sustained a substantial volume of activity from April to the year end. The Federal Reserve seasonally adjusted index of industrial production receded gradually during the first five months of 1939. In June, a recovery was begun which carried the series to a new all-time high at the end of December. Mortgage-recording figures for the year indicate that savings and loans were continuing as a predomiINDEXES OF MORTGAGE LENDING AND INDUSTRIAL PRODUCTION INDEX 1936 * 100 nant factor in the field of home finance. Of the estimated total of more than $3,766,000,000 recorded by all mortgagees, savings and loan associations accounted for 31 percent; banks and trust companies, 25 percent; and individual lenders, 17 percent. Mutual savings banks and insurance companies recorded 4 and 9 percent, respectively, and a miscellaneous classification, the remaining 15 percent. Further analysis of the asset items of the savings and loan balance sheet reveals a continued liquidation of the real estate holdings of these institutions during 1939. This reflects both improved market conditions, and a more realistic attitude toward the "overhang" problem. A large group of identical members reported a 12-percent reduction in this account from June 1938 to June 1939. A healthy sign in the disposition of these institutionally owned properties is found in the trend of the relationship of the real estate owned account to total assets. From 20.2 percent of the assets of all savings and loan associations at the end of 1936, real estate owned (excluding office buildings) had shrunk to 16.1 at the end of 1938, with an even Federal Home Loan Bank Review lower ratio indicated for December 31, 1939. Approximately 12 percent of all member association assets at the close of 1938 was in owned real estate, but further reductions are indicated for 1939. Turning from the asset side of the savings and loan statement to the liabilities, of greatest importance is the fact t h a t private repurchasable capital increased substantially last year, according to the evidence of the record of insured associations. (Data for 1939 are not yet available for non-insured associations.) Eliminating the effects of reorganizations in financial structure and of the admission of newly insured associations by studying comparable reporting institutions, an 18-percent gain in private repurchasable capital was recorded last year. Comparable Federal associations increased their private capital by 24 percent in 1939, as compared with 20 percent in 1938 and 17 percent in 1937. Similarly, increasing successive gains are shown by State-chartered insured associations: 9 percent last year; 4 percent in 1938; and 2 percent in 1937. SUPPLY AND DEMAND I t is not enough to picture the fact that private capital of member savings and loan associations appeared to be increasing last year at an even higher rate than in preceding years, accompanied by the highest volume of mortgage loans in a decade. Fundamental to savings and loan operations is the relationship between the inflow of new capital and the demand for mortgage funds. For the first time this annual survey is able to discuss this relationship, using as a basis the trends shown by all comparable insured associations in 1939. The year 1939 opened with insured associations receiving large volumes of new private share capital— a trend already in evidence in the closing months of 1938. New mortgage loans, although beginning to recover from previous low levels, were not being made in volume sufficient to equal the net monthly increases in new investment plus the funds becoming available through monthly loan repayments. This is shown in the accompanying chart by the small bars above the base line which portray a greater net increase in the supply of funds than in the demand for mortgage money. With the usual pick-up of mortgage lending in March, however, insured associations initiated a trend which was interrupted only during the dividend declaration months of June, July, and December: each month showed a mortgage demand greater than the increase February 1940 The small bars above the base line indicate that the net monthly increase in private capital plus monthly repayments on mortgage loans was greater than the demand for new mortgage loans. Bars below the base line show the opposite condition: demand for mortgage loans in these months exceeded the supply of funds flowing into the associations during these same months. The single trend line on the chart depicts the cumulative effect of the monthly excesses or deficiencies in the supply of capital. Thus, the position of the cumulative line above the base in December indicates that for the year as a whole the new mortgage loans made were somewhat less than the net increase in private capital plus repayments on outstanding mortgage loans. in supply of funds for lending. The single trend line on the chart, depicting the cumulative effect of the monthly excesses or deficiencies in the supply of capital, reflects the pattern of the monthly bars by its rapid fall in March, April, and May, its upturn in June and July, and its sharp descent throughout the remaining months of the year, until December when the effect of dividend credits to share accounts and of the seasonal decline in lending activity caused the supply of funds to exceed demand. The rapid absorption of excess funds as the year proceeded resulted in an increase in mortgage loans outstanding approximating the rise in private repurchasable capital for insured associations in 1939. This trend was reflected in the balance of advances outstanding of the Federal Home Loan Banks. Declines were general throughout the first eight months of the year, as savings and loan associations drew on excess funds to repay Bank advances. In September, however, Bank advances turned sharply upward, and by the end of December had recovered a large part of the declines of the January-August period. INDIVIDUAL B A N K DISTRICT ANALYSIS The next four pages contain an individual narrative and graphic analysis of significant factors in savings and loan operations in each Bank District. 1 i Figures for all savings and loan balance sheet items are based on comparable groups of institutions. Mortgage-lending estimates are for all associations, Keal estate owned changes are from June 1938 to June 1939. I4I IMPORTANT SAVINGS AND LOAN TRENDS: 1939 COMPARED WITH 1938 I-BOSTON 2-NEW YORK I 1 T OTAL ASSET S 1 1 11 T OTAL ASSET S 1 FEDERALS INS. ST MEM. IJNINS. ST MEM. M >RTGA iE LOANS OU rSTAN )ING 3-PITTSBURGH M0RT6A< FEDERALS T FSTANl )ING NONMEM. i REA u EST/ T E OW NED 1i T OTAL ' 1 ASSET Hi 1 •w ni — MOf TGAGE LENI 61.7 II | REA - ESTATE OV FEDERALS 'NED PRIVATE SHARE CI kPITAL ^ H INS. ST " RESIDE NTIAL CONSTRUCTION (H AMILY) PRIVA "E SHARE C/ lui—iiiiliiiiyiiiiiiii PITAL J MEM.Wj^^ • H V"\" M"r— 1 —[ — - r - - - RESIDENTIAL CONSTRUCTION (l-FAMILY) RESIDENTIAL CONSTRUCTION (l-FAMILY) 1N 1 1 FORECLOSURES | flBHSl FORECLOSURES Hill FORECLOSURES SUPPLY AND DEMAND FOR FUNDS: 1939 SUPPLY AND DEMAND FOR FUNDS: 1939 T5M ING INS. ST. MEM. PRIVA fE SH ^RE C/ PITAL H "STANDING REA . ESTATE OV 'NED S$[0M%MXM> | s MORTGA( E LOA NS OU MORTGAGE LENl)ING ALL ST. MEM. 1 E LOANS OU INS. ST. MEM. MOf TGAGE LEN1>ING 1 SUPPLY AND DEMAND FOR FUNDS: 1939 " • " • • • - " \ | | 1 B " " I JAN. 1 O FEft MAR. APR. MAY m \^/ JUN. JUL. AUG. SEP. OCT. NOV DEC. MORTGAGE RECORDINGS: 1939 20% 40% 60% 80% ^ CUMULATIVE-^ „•„ 100% s ., JAN. FEB. MAR. APR. MAY O ••M= 142 "ZI1ZZ ALL OTHER 1• / m JUN. JUL. AUG. SEP OCT NOV. DEC. MORTGAGE RECORDINGS'- 1939 20% 40% 60% 80% S 8 L ASS'NS. BOSTON: Asset growth: 13% increase for Federals below average; small group of insured State members doubled the national rate for this class; uninsured members, + 3%. Lending: up for all classes. Loans outstanding of Federals rose 19%; of insured State, 18%. Real estate owned: trend down. Federals, — 6%; insured States, —24%. Chief among liability items, private repurchasable capital gains by Federals (+19%) and by insured State associations (+18%) ranked 9th and 3rd, respectively, among the 12 Districts. The 28% increase in 1-family construction was within a fraction of the national pace . . . but, the 9% rise in nonfarm foreclosures was in sharp contrast to the pattern throughout the country . . . the supply and demand chart indicates a slight excess of new lending . . . industry well-represented in total financing picture—35.7%. V ^ 100% 13 JAN. FEB. MAR. APR. MAY 0 JUN. JUL. AUG. SEP. OCT. NOV. DEC. MORTGAGE RECORDINGS: 1939 20% 40% 60% 80% •"•••• ; "" 100% ,iu n LENDERS NEW YORK: Asset growth: 18% rise for Federals above national pace; the smallest insured State member increase reported—3 %; uninsured members ranked 7th in their group—up 0.5%. Lending: total up, slightly above the national pace. Net mortgages held by Federals rose 22%; by insured State members—6%. Real estate owned: trend down, but decreases relatively small. Private capital: 21 % increase in Federals, and 3 % increase in insured State members, rank 8th and 12th, respectively, among the Districts. The 2% increase in 1-family building was the smallest gain for any Bank District—but, foreclosures were down 18%, a rate of decrease better than average .. . . the supply and demand chart shows substantial excess of new lending over net capital inflow during last half of year . . . savings and loan share of total mortgage recordings—24%. PITTSBURGH: Assets: 29% gain for Federals is the largest; 7% rise for insured State members—average; decrease of 2% for uninsured members—low. Lending: all classes up, total above average. Federal associations had the largest District increase in new loans and loans outstanding. Increase due to construction loans and a substantial number of Federal conversions. Real estate owned: Federals, a large reduction, 18.5%; insured State members, —7%. Private share capital: gains by Federals (47%) and by insured State associations (13%) outran the national averages. The 44.2% rise in 1-family units was N u m b e r T w o in t h e c o u n t r y . . . foreclosures were down 12% in line with the national trend . . . the supply and demand chart indicates a slight excess of new lending . . . proportion of savings and loan mortgage recordings (29%) slightly less than industry's. Federal Home Loan Bank Review WINSTON-SALEM: Assets: Highest general ratings in any District. Federal increase ( + 28%) ranked 2nd; 2 2 % gain—highest for insured State m e m bers; uninsureds ( + 5 % ) were second. Lending: all classes u p ; t o t a l ahead of national average. Loans outstanding of insured State members rose 2 3 % ; of F e d e r a l s — 2 9 % ; these gains ranked 1st a n d 2nd for these classes in t h e country. Real estate owned: t r e n d down, a t slightly better t h a n t h e national r a t e . Private repurchasable capital: 4 5 % gain for Federals, 1 8 % gain for insured State members—next to highest. T h e n u m b e r of 1-family dwellings j u m p e d 3 1 % , b u t ranked 7th . . . foreclosures (—13%), average drop . . . incoming funds were greater t h a n outgoing during seven m o n t h s , b u t totals indicate a slight d e m a n d excess . . . savings a n d loan mortgages recorded were 3 6 % of District total. CINCINNATI: Asset growth: 1 0 % increase for Federals was next to t h e smallest gain. Insured State members, up 5 % . Uninsured members, down 1%. Lending: 2 9 % increase over 1938. Total loan volume was 2nd highest among t h e Bank Districts. Loans outstanding of Federals rose 1 3 % ; of insured S t a t e m e m b e r s — 6 % . Real estate owned: t r e n d down b u t 9 % decrease in holdings of Federals and 6 % decrease for insured State members were below national averages. Private capital: 1 5 % gain for Federals, 8 % gain for insured State members—not quite up to national pace. T h e 3 7 % rise in 1-family units a n d 2 4 % drop in foreclosures r a n k e d quite high in b o t h items . . . although associations showed t h e highest ratio t o total mortgage recordings, an excess of investments a n d r e p a y m e n t s over new loans is indicated by t h e supply-demand chart. INDIANAPOLIS: Assets: Federal ( + 1 0 % ) a n d insured State member ( + 5%) gains were relatively small; 4 % gain b y uninsured members r a n k e d 3rd. Lending: up for Federals ( 3 8 % ) ; u p for all S t a t e members ( 3 9 % ) — t h e largest increase of any District; nonmember loans gained 8 % . Loans outstanding of Federals rose 1 1 % ; of insured S t a t e m e m b e r s — 1 3 % . Real estate owned: t r e n d down, b o t h for Federals a n d insured S t a t e members. Private repurchasable capital of Federals increased 1 4 % ( r a n k — 1 2 t h ) ; insured States recorded a 1 0 % gain (rank—7th). T h e 3rd largest gain in construction ( + 4 4 % ) . . . t h e 4th largest decline in foreclosures ( — 22%) . . . one of four Districts in which t h e cumulative supply a n d d e m a n d curve failed to drop below t h e balancing point . . . only two Districts showed a smaller savings a n d loan ratio of all recordings. IMPORTANT SAVINGS AND LOAN TRENDS: 1939 COMPARED WITH 1938 ~I 1 6-INDIANAP0LIS > o 5-C1NCINNATI o 4-WINSTON SALEM T- -i TOTAL ASSETS TOTAL ASSETS 1 r- TOTAL ASSETS FEDERALSB INS. ST MEM. MORTGAGE LOANS OUTSTANDING MORTGAGE LOANS OUTSTANDING FEDERALS MORTGAGE LOANS OUTSTANDING ffl[ INS. ST. MEM. I l l MORTGAGE LENDING MORTGAGE LENDING MORTGAGE LENDING FEDERALS A L L ST. MEM. NONMEM. REAL ESTATE OWNED REAL ESTATE OWNED REAL ESTATE OWNED J O n FEDERALS MM PRIVATE SHARE CAPITAL INS. ST. MEM. PRIVATE SHARE CAPITAL| PRIVATE SHARE CAPITAL FEDERALS INS. ST. MEM. SUPPLY AND DEMAND FOR FUNDS" 1939 SUPPLY AND DEMAND FOR FUNDS: 1939 1•_- JAN. FEB. MAR. APR. MAY \ I Is!—" P JUN. JUL. AUG. SEP OCT NOV. DEC. MORTGAGE RECORDINGS' 1939 0 20% 40% MUM—PI™* 60% ' — 80% 100% -JAN. FEE MAR. APR. MAY JUN. JUL. AUG. SER OCT. NOV DEC. MORTGAGE RECORDINGS: 1939 20% 40% 60% 80% JAN. FEB. MAR. APR. MAY JUN. JUL. AUG. SER OCT. NOV DEC. MORTGAGE RECORDINGS: 1939 20% 40% 60% 80% | S. 8 L. ASS'NS. February 1940 SUPPLY AND DEMAND FOR FUNDS: 1939 ALL. OTHER LENDERS 143 IMPORTANT SAVINGS AND LOAN TRENDS: 1939 COMPARED WITH 1938 7-CHICAGO 8-DES MOINES i i I TOTAL ASSETS I 9-LITTLE ROCK ~ ~ TOTAL ASSETS I I TOTAL ASSETS FEDERALS INS. ST MEM. UNINS. ST. MEM. MORTGAGE LOANS OUTSTANDING MORTGAGE LOANS OUTSTANDING MORTGAGE LOANS OUTSTANDING REAL ESTATE OWNED PRIVATE SHARE CAPITAL m RESIDENTIAL CONSTRUCTION (1-FAMILY) FORECLOSURES Nl 1 SUPPLY AND DEMAND FOR FUNDS: 1939 SUPPLYAND DEMAND FOR FUNDS: 1939 SUPPLY AND DEMAND FOR FUNDS: 1939 • CUMULATIVE *~l^\ " " • " " lis?"" JAN. F E & MAR. APB. MAY J 0 JUN. JUL. AUG. SEP. OCT. NOV. DEC. MORTGAGE RECORDINGS: 1939 20% 40% 60% 80% wm Hi 100% r—~—*-i CHICAGO: Asset growth: the 17% increase in assets of insured State members was 3rd greatest, but the 5 % decline for uninsured members was least favorable, among the 12 Districts. Lending: 25% increase in total volume slightly above the national average. Federals ranked 5th, and insured State members 3rd, in rises in loans outstanding. Real estate owned: decreases in holdings of Federals and of insured State members approximated the national pattern. Private capital: gains of 35% for Federals and 14% for insured State members. (Rank— 4th among the 12 Districts.) The largest increase in 1-family building in the country (+52.5%) . . . but also the largest increase in foreclosures, running against the national trend . . . first-quarter excess of funds was almost wiped out before the December increase . . . associations' portion of total recordings was average. 144 JAM FEB. MAR. APR. MAY JUN. JUL. AUG. SEP. OCT. NOV. OEC. MORTGAGE RECORDINGS: 1939 20% 40% 60% 80% 0 •*•*••• w Bimniiiii S. a L. ASSMVS. ™™™_-. 100% _ ^ A L L OTHER LENDERS DES MOINES: Asset growth: increases of 22% for Federals, 9% for insured State members, and 4% for uninsured members. Lending: percentage gain in District loan volume (28 %) ranked 3rd. Federals, + 4 5 % ; State members, + 17%; nonmembers, + 1 5 % . Loans outstanding of Federals and insured State members showed substantial gains. Real estate owned: a greater-than-average decrease for Federals, but slight increase for insured State members. Private capital gains of 37 % for Federals and 13% for insured State members, ranking them 3rd and 5th, respectively. Although ranking 8th, the 29% gain in construction was still above the national average . . . foreclosures were virtually unchanged . . . seven months of greater loan volume than incoming funds resulted in a cumulative excess of demand for the year . . . the 36 % share of mortgage recordings was significant. JAN. FEB. MAR. APR. MAY 0 JUN. JUL. AUG. SEP. OCT. NOV. OEC. MORTGAGE RECORDINGS: 1939 20% 40% 60% 80% 100% mi—Mft^^^^^^^^^^M^^M LITTLE ROCK: Asset growth: percentage increases for Federals (17%) and for uninsured members (0.3%) failed to match national pace. 9% gain for insured States was above average. Lending: this District was the only one to record an increase in total lending volume of savings and loan associations in 1938. Consequently, percentage gains in 1939 appear smaller than in most other Districts. Real estate owned: trend sharply down, with next-to-largest percentage declines among the 12 Districts. Private capital: Federals, + 2 4 % ; insured State members, + 9 % . Only one other District showed a smaller increase in 1-family units, and the 6% increase in foreclosures was an unfavorable sign . . . there were only three months, however, during which the lending activity did not exceed the inflow of funds . . . savings and loan portion of mortgage recordings, 34%. Federal Home Loan Bank Review TOPEKA: Asset growth: Federals, + 8 % ; insured State members, + 8 % ; uninsured members, unchanged. Lending: the 15% increase in total loan volume of savings and loan associations was next to lowest improvement among the 12 Districts. Loans by Federals increased 29%; by nonmembers, 12%. State member loans (down 1%) ranked 11th. Real estate owned: Federals and insured State members were disposing of their holdings at a rate higher than the national average. Private capital gains of Federals and insured States did not match the national pace. A sizeable increase in 1-family units (+35%) . . . the largest reduction in foreclosures (—24.4%) . . . the cumulative supply and demand total remained below the balancing point from March through December . . . the second highest ratio of savings and loan mortgage recordings among all Districts, 39%. PORTLAND: Asset growth: uninsured members7 6% gain was highest in the country; insured State members. + 1 6 % ; Federals, + 1 8 % . Lending: increase in loans outstanding of Federals was slightly below, and the gain for insured State members was somewhat above, the national norms. Total loan volume gained 24% over 1938. Real estate owned: holdings of Federals and insured State members are small; slight increases shown in 1939. Private capital of insured State members increased 18%—the greatest gain shown by this class in any District. Federals, + 2 7 % . A 34.5% rise in residential construction and a 24% drop in foreclosures presented a favorable District picture . . . six months of lending excess could not overcome the surplus funds and there was an excess of supply for the year as a whole . . . the 32% share of savings and loan recordings ranked 7th. LOS ANGELES: Asset growth: Federals and uninsured members ranked 3rd and 6th with percentage gains in assets of 24% and 2%, respectively. Insured State members, + 5 % . Lending: loan volume of Federals up 4 1 % ; of State members—down 7%. Nonmembers registered their largest drop in this District ( — 34%). Loans outstanding of Federals rose 2 3 % ; of insured State members—9%. Real estate owned: trend down, with 32% decline in holdings of insured State members largest of any District for this class. Private capital: Federals, + 3 0 % ; insured States, + 5 % . The increase in 1-family building (+23%) was less-than-average, but the 19% decline in foreclosures was well above-average . . . the cumulative excess of new loan demand over inflowing funds is indicated by the trend-line . . . savings and loan share of recordings (18%) was the smallest in any District. IMPORTANT SAVINGS AND LOAN TRENDS: 1939 COMPARED WITH 1938 ll-PORTLANO 10-TOPEKA SUPPLY AND DEMAND FOR FUNDS: 1939 SUPPLY AND DEMAND FOR FUNDS: 1939 M JAN. FEB. MAR. APR. MAY \ 111 JUN. JUL. AUG. SEP. OCT. NOV. DEC. 1 MORTGAGE RECORDINGS: 1939 20% 40% 60% 80% i 1 1 . . . i. 100% I • I i ^tjnggpmB^mm^m^mmmmmmmmm^ S.a February 1940 205770—40 2 L ASS'NS. \ . • JAN. FEB. MAR. APR. MAY KB JUN. JUL. AUG. SEP OCT. NOV. DEC. JUN. JUL. AUG. SEP OCT. NOV. DEC. MORTGAGE RECORDINGS: 1939 20% 40% 60% 80% 0 SUPPLY AND DEMAND FOR FUNDS: 1939 (-CUMULATIVE JAN. FEB. MAR APR. MAY 0 12-L0S ANGELES ALL OTHER LENDERS 100% 0 — MORTGAGE RECORDINGS' 1939 20% 40% 60% 80% ' ' '" - 100% 1 ' 145 Genera! Business Conditions • FOR industry, trade, and agriculture, 1939 was a better year than 1938. Although the striking advance in business which marked the closing months of 1938 was not extended through early months of last year, by June a strong revival was under way. Recovery was accelerated with the outbreak of war in Europe in September, and business activity moved upward over a wide front in one of the sharpest rises on record. Industrial production in the last quarter of 1939 matched that of the best quarter of 1929. Outstanding in this pattern of recovery was the rise in the production of durable goods. With continued business advance dependent upon keeping the durable goods industries going, the 69-point gain (almost a 100-percent rise) in the durable goods index last year, with levels in November and December well above 1937 peaks, is particularly favorable. Closely following business expansion were monthly income payments to individuals, one of the most inclusive single indicators of current economic change. With every month of 1939 at a higher point than the corresponding month of 1938, income payments reached levels not far below 1937 peaks. Estimates for the year indicate $69.7 billion in income payments in 1939, compared with $66 billion in 1938 and $72 billion in 1937. In placing a yardstick to measure 1939's business, analysts noted that: bank debits averaged midway between 1938 and 1937 levels; the combined index of the cost of living remained below either the 1938 or 1937 average; the annual index of wholesale commodity prices was the lowest in five years, with a drop in the prices of farm products and foods more than offsetting the rise in industrial commodities. Prime fact about 1939's business spurt, however, was that upon the outbreak of war, a wave of buying which carried many industries to full capacity also caused production to run ahead of consumption and exports. There was ample evidence of this lag. Factory employment and pay rolls failed to keep pace with the increase in manufacturing output. Freight carloadings, the most important indicator of distribution, although showing a sharp rise over 1938, were below either 1937 or 1936. While production last year averaged 86 percent of the 1929 volume, and for the whole year was not far below 1937, carloadings averaged only two-thirds of the 1929 amount. 146 By the year-end, there was some evidence that consumption by individuals was beginning to catch up to production. Retail sales had gained 7 percent over 1938, with general merchandise trade reaching the 1937 peak. Outlays for capital goods and exports are additional means of absorbing increased production. The amount of new capital raised for outlays for plant expansion and equipment was small, but exports— although approximating the same volume in 1939 as in 1938—advanced rapidly from the beginning of the war and were higher than 1938 in every month after May. The end of the year, however, found inventories still being enlarged with the volume of new orders below the present rate of production. General opinion was that as backlogs of orders are reduced, the accumulation of inventories will necessitate some marked increase in consumption by individuals, in exports, and in capital investment, if the present high rate of industrial activity is to be maintained. GENERAL M O N E Y M A R K E T CONDITIONS The trend in the yields of long-term investments is a clue to the direction of home-mortgage interest rates, and consequently of dividend rates as well. The accompanying chart reveals that yields on longterm bonds continued downward last year. Despite a brief upturn after September 1, by the end of 1939 yields on long-term U. S. Treasury bonds and on high-grade and low-grade corporates had fallen below the levels of the beginning of the year. Total deposits at all banks increased to a new high level in 1939, but a further decline to a new low in the turnover indicated that an increasing amount of deposits was being held idle. Money supply for real estate financing was adequate or in excess of available loans in 92 percent of the cities reporting Federal Home Loan Bank Review to the National Association of Real Estate Boards at the year-end. A 5-percent rate was for the first time the commonest nominal charge for first mortgages on new moderately priced homes. Such straws in the wind indicated stable or falling, rather than increasing, interest rates in the immediate future. Residential Construction • D U E I N G 1939, and for the first time in 10 years, the volume of construction was approaching the quantity needed each year to replace those dwelling units lost through fire, demolition, and other causes, and to house the annual increase in the number of nonfarm families. According to preliminary estimates of the U. S. Department of Labor, there were approximately 473,000 nonfarm dwelling units constructed during 1939 at total cost of about $1,705,000,000. In comparison with the 346,600 units built during 1938, this represents an increase of 37 percent in the number of units and 34 percent in estimated cost. Contrasting 1939 with 1937—a year of higher national income and also one of sharp industrial recovery—the gain in residential building is more than 65 percent in the number of units and 48 percent in the total dollar volume. Houses of the 1-family type accounted for 350,000 units: almost 74 percent of all residential accommodations provided during 1939, and 35 percent more than the 1938 volume. Greatest improvement in the number of dwelling units built, however, was shown by the multifamily classification: almost three multifamily units were begun in nonfarm areas during 1939 for every two built during 1938. As the construction of privately financed multifamily structures remained relatively unchanged, the increase in this type of building was due to the accelerated activity of the U. S. Housing Authority in providing loans and rental subsidies for new construction in connection with slum-clearance programs. On the basis of statistics for all types of residential construction in cities of 10,000 population and over, the greatest gains over 1938 were made by the Cincinnati and Pittsburgh Bank Districts, which more than doubled their previous year's volume. The New England and Chicago regions had increases of more than 90 percent in residential building in 1939, and the only District which did not show a gain was New York (—15 percent). This was due primarily to a reduction in the volume of multifamily units. February 1940 The building of 1-family houses—the barometer of privately financed construction of prime significance to savings and loan operations—moved 27 percent ahead of the 1938 totals, with the Chicago, Pittsburgh, and Indianapolis Districts taking the lead. Every Bank District showed an improvement over the preceding year, although the New York region's gain was only 2 percent. (See individual Bank District charts on pages 142-145.) The rate of residential construction as measured by the number of units per 10,000 population has been increasing over a period of several years. The greatest gains during 1939, as shown by the following table, were made by cities in the 25,000-100,000 range, although communities of 10,000-25,000 and more than 100,000 continued to have the highest rates of construction expressed in terms of population. Rate of residential construction/ by size of community* First nine months of— 1935 1936 1937 1938 1939 Size of city All cities of 10,000 and over 10,000 to 25,000 25,000 to 50,000 9.3 19. 1 21. 1 25.7 33.9 12.7 20.7 27.2 27.0 35.5 7.8 16.4 19.5 21.3 31.4 50,000 Over to 100,000 100,000 7.4 13.9 18.3 19.0 27.7 9. 1 20.0 20.4 27. 4 35.0 Change: 1938 to 1939_. + 31.9% + 31.5% + 47. 4% + 45. 8% +27.7% 1 Number of dwelling units per 10,000 population. Size of cities based on estimated population for the respective years. T H E T R E N D OF BUILDING COSTS Perhaps no other topic in the field of residential construction received as much attention during 1939 as did building costs. With the volume of building increasing, the trends of material and labor costs were studied carefully. Until September there was little change. The F H L B B index of the cost of constructing a standard 6-room house had eased to the lowest point since February 1937, and the Department of Labor's index of wholesale building material prices had remained practically unchanged for the first eight months of the year. During the last four months of the year, however, substantial increases appeared in several classifica147 COST INDEXES FOR CONSTRUCTING BY FEDERAL Districts 1,4,7 and 10 report costs quarterly as of March, June,September and December 3 1 I £ § i % % '£ I % l g 1 % Si I % % § iiTTTiTTTTTlTlTTal 1936 1937 1938 T H E STANDARD HOME L O A N BANK AVERAGE MONTH 1936-100 1935 1939 tions; particularly lumber, paint, and prepared roofing. The wholesale index for the week of December 23 was the highest in over two years, although the rise in building material prices was not quite as sharp as the upturn of all industrial commodity prices (see chart below). The F H L B B index of the standard-house costs reflected only a slight increase for the entire year. The small decline in labor costs was more than offset by higher material prices toward the year-end. Little change was noted in the average cost of dwellings for which building permits were issued during 1939 and 1938. INOEx PRICE IN DEXE SOF BUIL DING MAT ERIAL S AN DAL LINO USTFUAL <:OMN ODIT — ES 100 /"Built ing Mt teriols 90 ..-...,.—••« \ 80 x— •**** ^ Industri ol Com modi tie *-... *••.. .^...-J- ! •ma t i OfJC. ! 1 i i MAR. JUN 1936 148 » SEP f 1 1 1 t 1 1 1 OEG MAR JUM SEP 1937 US OEM ,T*£NTO ,'"•• u*» 1 t I 1 t i t i t 1 i t 1 i i 1 . i t I DEC. MAR JUN SEP DEC MAR JUN SE^ i C 1938 1939 SIX-ROOM FRAME HOUSE DISTRICTS I % ^ i % a § i % si % § i % si § i ? §i g I i si g i % § &' 1937 1938 1939 1936 1937 1938 1939 Resolutions of the Board and Proposed Amendment AMENDMENT TO R U L E S A N D REGULATIONS FOR FED- ERAL SAVINGS AND LOAN SYSTEM, ELIMINATING REQUIREMENT FOR PROMPT EXAMINATION OF ASSOCIATIONS U P O N C O N V E R S I O N I N T O F E D E R A L S : A d o p t e d January 12, 1940; effective January 13, 1940. On January 8, 1940 the Federal Home Loan Bank Board approved the proposed revision of the eligibility examination report form, including the percentage summary and confidential section, for use in connection with examinations to determine whether an institution is eligible to convert itself into a Federal. The same form, with the exception of the percentage summary and confidential section, was approved for use as Form 1 to be used by an association in filing application for membership. I n keeping with these changes, the Board amended Section 203.1 of the Federal Regulations by eliminating the requirement that associations upon conversion into Federals must be examined promptly upon completion of organization. T h e first sentence of Section 203.1 now reads as follows: (Continued on p. 156) Federal Home Loan Bank Review Relative Part Played by Savings and Loan Associations in 1939 Mortgage Lending • F O R the first time in these annual reviews of savings and loan operations, it is possible to present a comprehensive analysis of the mortgage-financing activity of all types of lenders and to discuss the relationship of savings and loan lending to the total volume. Beginning with January 1939, monthly estimates of all nonfarm mortgages of $20,000 and under recorded throughout the entire country have been prepared by the Division of Research and Statistics of the Federal Home Loan Bank Board. Reports which are now received from approximately 600 geographic areas representing 60 percent of the total nonfarm population provide the basis for these estimates. I t is estimated that there were more than 1,360,000 mortgages of $20,000 or less recorded during 1939, and that the dollar amount exceeded $3,766,000,000. This total includes all types of mortgage instruments whether for the refinancing of old loans or the lending of new funds. Savings and loan associations accounted for the highest percentage of the dollar volume of recordings (31 percent). Banks and trust companies were responsible for almost one-fourth of the total and ranked second as a source of mortgage funds. Individual lenders, "other" mortgagees, insurance companies, and mutual savings banks followed. D a t a on the size of mortgages recorded by each lender explain the differences between the percentage distribution of the number and dollar amount of instruments handled, and indicate the appeal of savings and loan associations to the small borrower. Among institutional lenders, savings and loan associ- MORTGAGE RECORDINGS DURING 1939 IN EACH FEDERAL HOME LOAN BANK DISTRICT Percent of dollar volume by type of mortgagee Insurance Companies 50 H 40 - Z ***^v Bonks & Trust Companies _ — _ 2 - NEW YORK 1-BOSTON Mutual Savings Bonks ——»--— Individuals 50 ^ ' — 40 H z " '^» W 30 o a. '•••.*T.tn»7..j#< tu 20 a. Others - 4 - WINSTON SALEM 3 - PITTSBURGH 30 * 10 — DEC JAN February 1940 O tc 20 iu a. ,TJ"M.«»"""«...........,. M ... . -.-• W 10 MAR DEC JAN. MAR. DEC. JAN. MAR 149 ations had the lowest average loan, $2,530, which was more than $200 below the average for all mortgagees. The typical mortgage of other institutional lenders was: banks and trust companies, $3,250; "other" mortgagees, $3,280; mutual savings banks, $3,450; and insurance companies, $5,040. Loans by individuals averaged $1,900. Complete analysis of the mortgage-financing trends in specific geographic areas is illustrated in the individual Bank District charts which appear at the bottom of the preceding page. ANALYSIS OF 1939 SAVINGS AND LOAN LENDING The volume of savings and loan new mortgagelending during 1939 was the largest since 1930 and came within 14 million dollars of being the ninth billion dollar loan-year in the history of savings and CONSTRUCTION LOANS MADE BY A L L SAVINGS AND LOAM ASSOCIATIONS 35 30 a 1\h^ 25 < i -i o Q o iw ,5 o d Kri y -J 1 \J 20 IL Purpose of loan i i X. 01 Distribution of the average dollar loaned by all savings and loan associations N u m b e r of cents out of every dollar loaned in— .o 5 substantial increases were made by advances for new construction (36.6 percent) and for the purchase of existing dwellings (27.9 percent). Every classification showed an improvement over 1938 totals, although the increase in reconditioning loans was only fractional. The make-up of the typical dollar loaned by all savings and loan associations last year indicates a continued increase in the proportion of their financing which is directed to the fields of new construction and home purchase. Almost two-thirds of every dollar advanced last year was for these purposes. This compares with 61 cents out of every dollar in 1938; 63 cents in 1937; and only 54 cents three years ago. Significant too is the steady decline in the share of money loaned for reconditioning purposes in spite of the fact that building-permit records of the U. S. Department of Labor on additions, alterations, and repairs show that the actual volume of reconditioning increased from 1936 to 1937 and again from 1938 to 1939. MAR. JUN. 1936 SEP OEC. MAW. JUN. SEP. 1937 DEC. DIVISIO N OF RESEARCH AND STATISTICS FEDERAL HOME LOAN BANK BOARD 1 1 • I 1 I I 1 i i 1 1 i 1 i i 1 1 MAR. JUN. SEP. DEC. MAR. JUN. SEP D :c 1938 1939 loan operations. 1 Up 24 percent from 1938 totals, the $986,000,000 of new mortgage loans written last year exceeded even the 1937 totals, which were the first in seven years to register an increase over the preceding 12-month period. Every Bank District reported a larger volume of lending during 1939 than in 1938 with the Indianapolis, Cincinnati, and Des Moines Bank Districts showing the greatest gains. Eight of the 12 regions were above the average increase for the country as a whole, and only the Boston, Little Rock, Topeka, and Los Angeles Federal Home Loan Bank Districts failed to keep up with the national pace during this period. An analysis of these loans according to the purpose for which they were made reveals that the most i Records of the Division of Research and Statistics of the Federal Home Loan Bank Board, based on reports of the U. S. Savings and Loan League, indicate that the years from 1923-1930 each had an annual volume of mortgage lending of more than $1,000,000,000. 150 Construction ___ Home purchase Refinancing Reconditioning. Other T o t a l . __ 1939 1938 1937 1936 $0. 31 .34 . 18 .06 . 11 $0. 28 .33 .20 .07 . 12 $0.26 .37 .20 . 07 . 10 $0.24 .30 .23 . 09 . 14 1.00 1. 00 1.00 1. 00 Concurrent with the recovery in residential building, the volume of construction lending by all savings and loan associations showed a substantial increase over 1938. The average monthly loans for new dwellings last year were $5,000,000 greater than either 1938 or 1937, and $10,000,000 greater than the average month of 1936. The totals for every month of 1939 were larger than the corresponding month of 1938 and each of the 12 Bank Districts reported a greater volume than for the previous year. The improvement in lending for new construction purposes is made more significant by a comparison with the increase in the erection of new 1-family houses—the most common type of structure on which mortgage loans are made by savings and Federal Home Loan Bank Review THE INCREASE IN SAVINGS AND LOAN CONSTRUCTION LENDING COMPARED WITH THE INCREASE IN T H E BUILDING OF I-FAMILY HOUSES IN CITIES OF 10,000 OR MORE POPULATION Percent change J939 over 1938 United States loan associations. The increase in the constructionlending activity of these institutions was larger than the building gains in most geographical areas which indicates, therefore, a greater participation on the part of savings and loan associations in the financing of new private construction. This contrast is shown in the chart at the top of this page which graphs the percentage increases in construction loans and 1-family dwelling units built throughout the entire United States and in each Bank District. Preliminary estimates of changes in the total nonfarm home-mortgage debt during 1939 reveal an increase of approximately $400,000,000: the third successive annual increase, and almost double the gain made in 1938. Savings and loan associations contributed the major increment while commercial banks also registered a substantial increase. HOLC holdings declined more than $100,000,000. Mutual savings bank and insurance company changes were minor. Increasing activity of Federal Housing Administration operations was shown by the fact that premium-paying mortgages insured under Section 203 of the National Housing Act totaled $669,400,000 in 1939, a 41-percent increase over 1938, bringing the cumulative amount to $1,970,000,000. Important was the greater emphasis placed on the insurance of new construction loans: of total dollar volume of mortgages accepted for insurance, 76 percent were on new homes in 1939, compared with 69 percent in 1938 and 55 percent in 1937. Mortgages accepted for insurance during the entire year 1939 totaled $562,000,000—a 25-percent increase over the totals for 1938. February 1940 General Real Estate Conditions • REAL estate sales in 1939 averaged considerably better than 1938, and somewhat above 1937. The former sales peak in May 1937 shown on the accompanying chart was followed by a rapid recession until early 1938. From this low point, real estate sales have increased almost uninterruptedly to a new peak. In last-quarter strength, 1939 gives every indication of a continued upward trend in sales activity into 1940. Year-end reports to the National Association of Real Estate Boards showed that all sections of the country gained in market volume over 1938, with advances most frequently reported for cities in New England, followed by the Southeast and Great Lakes regions. Gains were least frequent in Southwest cities. Most active sales were for new 5- to 6-room modern houses priced below $5,000, while the market continued slow for larger, older houses. But—for older properties priced below $3,000, sales were reasonably REAL ESTATE SALES ACTIVITY IN THE UNITED STATES 1926=100 100 ^ K TH^ x 80 o 60 \ V ^H \ i ^ z ~ 40 ^T * 5 r-* j $ r^ Xi)f... r^ ^ r - br*^ 5 20 5 I 1926 1927 1928 1929 1930 SOURCE REAL. EST« TE ANAL' STS, INC 1931 1932 1933 1934 1935 1936 1937 1938 1939 I5I active, paralleling HOLC experience. Half of all HOLC sales have been in the price classes below $3,000, with 30 percent below $2,000. Two facts stood out in 1939's market: first, the demand for homes persisted in the low-priced field; second, a significant price differential between old and new properties continued, reflecting present levels of building costs, important technological improvements, and the ease and low cost of homemortgage finance. With continued expansion of new building and real estate market recovery dependent on assimilation of an estimated overhang of $4 billion in residential properties, the improvement made in the real estate position of institutional holders during 1939 despite this price differential was encouraging. A 12-percent OWNED REAL ESTATE AS A PERCENT OF TOTAL ASSETS; 1930-1938 (BASED ON ALL S. a L. ASSOCIATIONS) decline in real estate holdings of an identical group of insured members of the Bank System took place from June 30, 1938 to June 30, 1939, indicating that 1939 will show a third successive decrease in ratio of real estate owned to total assets (see chart). The real estate owned by all members of the Federal Keserve System, of which two-fifths is residential property, decreased 8 percent in the first nine months of 1939—more than the entire year's reduction in either 1937 or 1938. The ratio of real estate owned by life insurance companies to total assets has declined each year since 1936 because of substantial increases in their other assets. Preliminary estimates for 1939 indicate that there may have been a slight actual decline in the dollar volume of their real estate holdings. Despite mounting sales activity and some reduction of the overhang, indicators of the strength of the recovery in the real estate market revealed mixed trends. Foreclosures, completing six consecutive years of decline, stood 11.5 percent below the 1938 152 TREND OF NONFARM FORECLOSURE BY SIZE OF COMMUNITY THOUSANDS OF FORECLOSURES IOO »50 Lightly Urban The more highly urbanized areas have shown the greatest decreases in foreclosures during the past six years, due primarily to the greater original intensity of foreclosure action in these communities. One relationship has held good over this entire period: the larger the community, the higher the rate of foreclosure per 1,000 dwellings. total, with every month of 1939 showing fewer foreclosure cases than the corresponding 1938 month. Important however were definite indications of leveling off in the index: each of the first three quarters of 1939 showed a successively smaller percentage decrease in total foreclosures from the corresponding quarter of the preceding year; a similar relationship held true for the last two quarters of 1938, when compared with the corresponding periods of 1937. Although 14 States reported more foreclosures in 1939 than in 1938, these increases were fairly evenly distributed over the country, with some concentration in New England, and in the Michigan, Illinois, Wisconsin, and Iowa sector. Rentals, after falling gradually from the October 1937 peak, turned gently upward for latter half of INDEXES OF MARKET RENTALS AND BUILDING MATERIAL PRICES 1926 = 0 0 | INDE X IOO -*x; "Vl" •'••••# 3r "•S^-awa : .' } JIN6 MATERIAL PRICES'') •'\ 1 1 .• : 80 ji * 1 / ~^r*— jS^~ 60 Source: ( l ) U.S .Dept.of Labor (2) National Industrial Conference Board 40 1926 l l I I I 1927 1928 1929 1930 DIVISION OF RESEARCH AND STATISTICS FEDERAL HOME LOAN BANK BOARD 1931 1332 1933 1934 1935 1936 1937 1938 1939 Building costs declined more sharply from their peak in 1937 than did rents. This improving relationship between rentals and building costs is shown by the narrowing spread between the two curves. Since August 1939, however, when rents stood at 85 percent of the base and wholesale material costs at 90 percent, building costs have advanced much more rapidly than rents. Federal Home Loan Bank Review the year 1939. The improving rent-building-cost relationship, however, was reversed in the closing four months of 1939 (see chart). The reason: build ing material prices up 4 percent; rents up less than one-half of 1 percent. Closely related to rentals as a factor influencing residential building are vacancies in existing properties. Most important 1939 trend revealed by vacancy figures was the increasing demand for singlefamily houses, and the swing away from apartments. Reports to the Department of Commerce show that vacancies in single-family dwellings continued to decrease throughout 1939 in most cities and stood at low levels ranging from 1 to 3 percent. The over-all vacancy ratio rose in many cities in 1939, due to marked increase in multifamily vacancies. Comparisons of 1939 and 1938 average adjusted tax rates of 257 American cities [Source: National Municipal Review, December 1939, p. 851] Average adjusted rates per $1,000 of assessed value Population group 1939 1938 500,000 and over 300,000 to 500,000 100,000 to 300,000 50,000 to 100,000 30,000 to 50,000 $29. 38 29.50 28.73 26.54 27.02 $28. 67 29.68 27.73 26.07 26.93 + $0. 71 —. 18 + 1. 00 + .47 + . 09 Total 27.57 27. 12 + . 45 Change Of prime importance to the market is the burden of taxation upon real estate. Tax rates in American cities have increased slightly for the past four years, but assessed values have apparently reached a plateau, remaining practically constant since 1934. The preceding table shows that the average tax rates (adjusted to be comparable) of 257 cities increased slightly during 1939, although less than in 1938 or 1937. The diminishing rate of increase may indicate that the general property tax is reaching its maximum productivity. The National Municipal Review, measuring trends from 1933 through 1939, finds that the 10-percent increase in average adjusted tax rates during this 7-year period is not particularly significant in view of the accompanying shrinkage of 8.4 percent in per capita assessed valuations. "This tabulation points to a decreasing burden on general property taxes in favor of other revenues/' February 1940 205770—40 Private Savings in 1939 • SAVINGS in financial institutions participating in home finance, together with selected types of investments that are directly competitive to savings in home-financing institutions, registered an increase during 1939 over the previous all-time high reached at the end of 1938. Representing to a large extent the accumulated savings of our middle and lower-income groups, all of these types of savings for which figures are available advanced last year (see table at top of next page). By far the largest increase, both in percentage and in dollar amount, was the three-quarter of a billion-dollar gain recorded by U. S. Savings Bonds last year. In less than five years, two and a quarter billion dollars have been invested in these securities, with bonds issued to about two million owners. Estimates of private investments in all savings and loan associations, which increased during 1938, are not available for 1939 as yet. A 24-percent rise in the private repurchasable capital of all insured savings and loan associations, however, indicated the continued satisfactory trend among these Bank System members. This growth includes the private capital gained by the insurance of additional savings and loan associations during the year. Eliminating the effect of changes in the number of institutions and reorganizations in financial structure, the net increase in private capital in a comparable group of insured associations was 18 percent—a rate of gain greater than in 1938. The savings (time deposits) in all members of the Federal Reserve System increased more during the first nine months of 1939 than during the entire year 1938. The gain in deposits in mutual savings banks during 1939 was double the entire year's increase in 1938, bringing the total to the highest level in their history. Postal savings have shown comparatively little change in recent years. The preliminary figure for 1939 shows a 2.2-percent rise, in contrast to the small decrease recorded in 1938. Most of the growth in the dollar amount of savings in the last decade has been accounted for by life insurance companies. Even in 1938, when the amount of life insurance written fell 17 percent below the preceding year's total, estimated accumulated savings in life insurance companies advanced 6.6 percent, or roughly 1.3 billion dollars. Although no estimates for 1939 are yet available, a greater volume of life insurance was written than in the preceding I S3 3 Trend of selected individual Ions-term savings during the calendar year 1939 [Amounts are shown in millions of dollars] Change in dollar amount during— Latest available date in 1939 Dec. 31, 1938 Type of savings Date U. S. Savings Bonds * All insured savings and loan associations 2_. AU members of the Federal Reserve System 8 Mutual savings banks Postal Savings Dec. 31 Dec. 31 Oct. 2 Dec. 31 Dec. 31 Amount 1939 1938 Percent change during— 1939 (to 1938 (enlatest avail-1 tire year) able date) $2, 209 1,811 $1, 442 1,456 + $767 + 355 + $478 + 316 Percent + 53.2 + 24.4 Percent + 49.6 + 27.7 11, 104 10, 481 1, 279 10, 846 10, 235 1,252 + 258 + 246 + 27 + 40 + 109 -18 + 2.4 + 2.4 + 2.2 + 0.4 + 1.1 -1.4 4 1 2 3 Current redemption value. Private repurchasable capital. Includes growth due to net gain of 99 in number of insured associations. Time deposits evidenced by savings passbooks, certificates of deposit, open accounts, and Christmas savings or similar accounts. 4 Preliminary. year, and it is probable that a substantial increase in these savings will be reflected by year-end figures. T h a t the public is interested primarily in safety, and only secondarily in return, as the essential test of a sound investment can be no more clearly demonstrated than by the continued growth of long-term savings of these types to new record levels. These increases in savings have come during a period in which rates paid on money placed in savings institutions have steadily declined. Even the outbreak of a European War did no more than lift interest rates temporarily. By the end of the year, it was apparent that the stiffening of interest rates which developed toward the end of the World War is not likely to recur in the immediate future. Yields on longterm U. S. Treasury bonds had fallen back nearly to the low August levels by December, and there were few quarters which expected higher interest rates in 1940. Current levels of return paid on savings in 1939 were lower than in 1938 in many instances. In most areas, commercial banks were paying interest rates on savings deposits substantially below the 2 ^-percent maximum authorized for members of the Federal Reserve System. The mid-year record of payments by mutual savings banks indicated that interest rates on their deposits continued downward, with a number of banks placing reductions in effect for the last half of the year. On a "per deposit" basis, the average interest rate paid by all mutual savings banks on July 1, 1939 was 2.17 percent. In New Jersey, rulings in 1939 limited the maximum interest 154 rates to be paid on savings deposits by banking institutions, including savings banks, to 1 percent. Simultaneously Post Office Department officials lowered the interest rate on Postal Savings in this State to 1 percent, marking the first break in the uniform 2-percent rate which has prevailed throughout the country since the inception of the Postal Savings System in 1911. Until the end of 1938, there was no clear indication that dividend rates were moving downward generally for the savings and loan industry. Average rates tended to decline, but the movement was not uniform throughout the country, and in several areas rates remained stable or even increased. I n 1939, one important fact stood out sharply: a more pronounced downward trend appeared to be in the making. Prospects for 1940 • "WAR—what will be its effects?" Upon the answer to this question depend the accuracy and validity of 1940 forecasts. The solution of problems such as the length of the wars, their eventual intensity, and perhaps their extension to include countries neutral at the present time will bear directly and indirectly upon the national economy. I t is true t h a t a substantial p a r t of the recovery movement of the last half of 1939 was under way before the beginning of hostilities in September, which indicates a sound foundation for the current high levels of industrial activity. Actual orders resulting thus far from military engagements have Federal Home Loan Bank Review been relatively small and limited to a comparatively few industries. Nevertheless, wars and rumors of wars play an important role in the prospects for continued improvement in business during 1940. Private and Government economists agree that the national income for the current year should establish a new recovery high of more than $70,000,000,000. This is based upon predictions for increased farm income, a higher rate of industrial production and employment, and larger consumer incomes. It is natural that 1940 should witness some reactions from the phenomenal rises which took place during the latter half of 1939. The accumulation of finished goods inventories in the last quarter will probably necessitate some adjustments during the current year. Nevertheless, it is believed that the average annual rate of production will be well above 1939 levels, and that the durable goods industries— laggards in previous recovery movements—will participate to a considerable extent. The anticipated reaction from present record levels of industrial production should discourage disproportionate commodity price increases, but the general level of wholesale prices will likely be higher in 1940 than in 1939. Quotations on finished goods have not as yet reflected all of the recent increases in the cost of raw materials, and advances in these commodities should be registered as low-cost stocks are exhausted. The demand for farm products is expected to be stronger in 1940 largely because of better domestic business activity and some opportunities for additional exports. The prices paid for farm products may also increase somewhat. RESIDENTIAL CONSTRUCTION For six consecutive years (1934-1939), the annual volume of nonfarm residential construction has increased. There are widespread differences of opinion as to whether this trend will be continued during 1940. The FHLBB estimates that the totals will not vary greatly from those of 1939. In fact, it appears likely that unfavorable factors may tilt the balance toward an actual decline in the total dwelling units. Among the factors which would tend to retard the upward movement of the building volume are the influences of the international situation. The diversion of industrial facilities and labor to meet production demands will increase uncertainties in the construction field even though it may stimulate February 1940 building activity in the vicinity of manufacturing centers. In addition, construction costs offer indications of further increases. Predictions for general rises in the level of wholesale prices during 1940 include higher material costs. The recent advance in wholesale quotations is already being felt in the dealers' prices reported for products used in constructing the FHLBB standard 6-room house. Residential rents do not yet give evidence that they are keeping pace with the increases in building costs. More than half of 261 cities surveyed by the National Association of Real Estate Boards were not expecting any changes in the rents of single-family dwellings during 1940, although most revisions which were predicted indicated an upward trend. A fourth important factor is the substantial volume of institutionally owned real estate which remains on the market in spite of recent improvements in this situation. Price differentials which exist between old properties and new houses will continue and may be overcome only by adequate reconditioning of the obsolescent dwellings. On the other hand there are several favorable influences which will tend to offset these conditions. There still exists a sizeable housing need which may be augmented by additional pressure for dwellings in industrial centers. In addition, a further stimulus will be provided by the anticipated rise in national income resulting from increased employment, production, and pay rolls. The emphasis by Governmental and private organizations on the necessity for producing low-cost houses for the lower income brackets should widen the potential market for new homes. This factor combined with favorable financing conditions, including minimum down payments, reduced interest rates, and extended loan plans should also be a springboard for additional building. The combined effect of these favorable and unfavorable factors should result in a volume of residential construction approximately equal to that of 1939. The 50-percent increase in public construction indicated by the United States Housing Authority will offset a decrease of as much as 5 percent in total private residential-building activity. Savings and loan operations during 1940 will be greatly influenced by these national trends. Increased national income, higher factory pay rolls and employment, and larger farm incomes indicate opportunities for associations to obtain new private share investments from both old and new members. 155 Because there is a possibility ^that the volume of residential construction may be pegged at 1939 levels, it does not follow that the mortgage-lending activity of savings and loan associations must also remain ,the same.jk I t has been shown that in 1939, construction loans of these institutions increased faster than residential building. If this same relationship persists in 1940, the volume of savings and loan mortgage lending will increase even though the construction rate is unchanged. Encouraging is the fact that each year savings and loan management has more "tools" with which to work—more information with which to plan and organize its activities. During 1939, mortgage-recording surveys were inaugurated with the cooperation of individual associations so that the entire homefinancing industry might benefit from current data on the volume and source of mortgage activity. Likewise, the study of the operating ratios of member associations was another "first" of last year. Undoubtedly other studies will be developed during 1940 of practical value to association managing officers. The first national census of housing which is planned for inclusion in the decennial population survey will provide additional knowledge hitherto unavailable. Further analysis of savings and loan advertising and business promotion will measure the progress in this field. It remains for each executive officer and board of directors to determine that their operating policies including dividend and interest rates, loan plans, public relations programs, office facilities, and employee relationships are such that the entire organization functions at maximum efficiency. (Continued from p. 148) Promptly upon the completion of the organization of a newly organized Federal association pursuant to the provisions of Sections 202.1 to 202.16, such Federal association shall be examined and a report made thereof in such form as shall be prescribed by the Board. TO RULES AND REGULATIONS INSURANCE OF ACCOUNTS, ELIMINATING FOR ADDITIONAL INSURANCE PREMIUMS I N CONNECTION WITH MERGER, CONSOLIDATION, INVOLVING AND INCREASES PURCHASE IN OF CREDITOR BULK ASSETS OBLIGATIONS: Adopted January 19, 1940; effective January 23, 1940. 156 In the event of the approval by the Board of the purchase of bulk assets or of the absorption by an insured applicant of another institution through merger or consolidation and the issuance of accounts of an insurable type in connection therewith, the applicant will be billed for an additional premium based upon the aggregate of the increase of its accounts of an insurable type issued in connection with such transaction. P R O P O S E D A M E N D M E N T TO R U L E S A N D R E G U L A T I O N S FOR FEDERAL SAVINGS AND LOAN SYSTEM, RELATIVE TO P R O C E D U R E F O R V O L U N T A R Y D I S S O L U T I O N In order to clarify subparagraph (1) subsection (a), Section 204.2 of the Federal Regulations so that Federals will be clearly advised that adoption of a plan whereby the Insurance Corporation should serve as a receiver for the purpose of liquidation would constitute a default in the association, the Federal Home Loan Bank Board approved on January 31 the following proposed amendment, which refers expressly to the pertinent provisions of Title IV of the National Housing Act: (1) For the Federal Savings and Loan Insurance Corporation to be appointed, in accordance with the provisions of Sections 405 and 406 of the National Housing Act, as amended, and pertinent regulations of such Corporation, as receiver for the purpose of liquidation. Resolutions AMENDMENT On November 15, 1939 the Board of Trustees of the Federal Savings and Loan Insurance Corporation amended Insurance Regulation 301.17 so that gross increases in the creditor obligations of an insured institution effected by reason of merger, consolidation, or purchase of bulk assets would not require Board approval. The Trustees on January 19, 1940 considered and adopted an amendment to Insurance Regulation 301.13 (c) eliminating additional insurance premiums in connection with merger, consolidation, and purchase of bulk assets involving increases in creditor obligations. The first sentence of subsection (c) of Section 301.13 was amended to read as follows: At the same time the Board approved a proposed new subparagraph (4) of subsection (a), Section 204.2 authorizing association directors to adopt any other plan of dissolution satisfactory to both the association and the Bank Board. This new subparagraph reads as follows: (4) For dissolution in such other manner as may be proposed by the directors and approved by the Board and which appears to be to the best interest of all concerned. These proposed revisions will not be approved until at least 30 days after the mailing date to the Federal Savings and Loan Advisory Council. Federal Home Loan Bank Review « « « FROM THE MONTH'S NEWS HON. JESSE H. JONES: "We need more national income, but we should not look for too great an increase at one time. In order to be a healthy increase, it will have to go up by degrees. Your foot sometimes slips when you try to jump too far." Washington Post, Jan. 12, 1940. COL. AYRES: "National income, which will be about 69 billions in 1939, will probably be about 71 billions in 1940, and not over 3 percent above or below that total. "Contracts for new building will probably be larger than those of any previous recovery year, and the largest since 1930, but not as large as those of that year." Cleveland Trust Company Business Bulletin, Dec. 15, 1939. B. C. FORBES: "As I see it, should peace unexpectedly come soon, the effect here would not be at all serious. . . . " Forbes, Jan. 1, 1940. GEORGE W. WEST: "Savings, building and loan associations will finance more home-owners with probably a larger dollar volume of advances this coming year than they have since 1929. They will make a larger portion of their loans for new construction in 1940 than in any of the past 10 years, probably averaging between 35 and 40 percent of their disbursements for brand new homes." News release, XT. S. Savings and Loan League, Dec. 30,1939. B. A. E.: "The 1940 prospects are for little further gain in construction. Residential building next year probably will be maintained somewhere near the improved level of the last 18 months." Report of the Bureau of Agricultural Economics, U. S. Department of Agriculture. Wall Street Journal, Nov. 6,1939. F. W. DODGE CORP.: "The 1940 construction estimates here presented may be quite easily exceeded by next year's actual volume, but errors on the conservative side seem preferable to over-optimistic expectations. . . . A 5-percent increase in private residential building volume to $1,192,000,000, combined with a 65-percent increase in public housing volume to $338,000,000, would create a net 14-percent increase to $1,530,000,000." N. Y. Herald-Tribune, Nov. 26, 1939. » » A temporary setback . . . . . "Ifs, ands, and buts there are galore in the current picture, yet there are just enough tangibles in it too to indicate that external forces such as war, politics, and the like can only tend in 1940 to accentuate the indicated downturn (all nonfarm residential building—down 7 percent; private housing—13 percent less) though it still be true that the upward phase of the building cycle itself has some distance to travel, after the temporary set-back, before it goes into broad reverse." L. Seth Schnitman, Barron's Financial Weekly, Jan. 15, 1940. Real estate in 1940 in the average American city "Median city in 1940 will experience higher sales volume for real estate than it has known for the past two years, but residential prices will balance equivocally between 1939 prices and some new higher level. . . . Rents for single-family dwellings will hold their present level, but will threaten to stiffen as and if general business conditions improve. . . . Construction of new single-family dwellings will be the dominant real estate story of the year, with definitely greater construction volume than in the past year. . . . Mortgage money will be easy to get, with interest rates on the whole a little lower than last year. . . . Taxes in Median City will threaten but will not actually rise." Survey of forecasts for 261 cities by the National Association of Real Estate Boards. Freehold, Jan. 1, 1940. A forecast about forecasts ". . . it seems entirely probable that within the next year or two methods of forecasting based upon deductions drawn from factual information which is now available or may be obtainable with reasonable effort, weighed with a precision unknown in the past, will serve as dependable guides indicating the course of business activity in this country. . . . During the coming years these and other absolutely essential factors will be brought into the completed statistical picture, which will be as different from the existing forecasts as the motion picture is to the snapshot, for forecasts must portray a moving trend and not a static condition." A.. D. Whiteside, President, Dun & Bradstreet, Inc. Dun's Review, January 1940. The upward trend will continue "With this total U. S. expenditure for building materials and labor ($6,310,000,000) 1939 lived up to predictions, surpassed 1938 by a comfortable 22 percent. And, the upward trend will continue. . . . The Architectural Forum forecasts t h a t total construction activity in 1940 will advance 4 percent. . . . Out in front dollar-wise will be nonfarm residential building, due for an 11-percent advance . . . exclusive of public housing under U. S. Housing Authority program." Architectural Forum, January 1940. February 1940 205770—40 157 4 SUMMARY OF RESIDENTIAL CONSTRUCTION AND HOME-FINANCING ACTIVITY I. The seasonally adjusted index of residential construction reached a new post-depression high in December as building volume strongly resisted the normal seasonal decline. 1. USHA activity was again an important factor, accounting for approximately 36 percent of all units in cities of 10,000 or more population. 2. Number of 1-family units was one-fourth larger than December 1938. II. Wholesale prices of materials used in home construction exhibited a tendency to level off in December after three months of sharp increases. 1. Materials used in constructing the standard house showed a smaller monthly increase during December than in the previous month. 2. Labor costs were more than 1 percent below the corresponding month of 1938. III. December volume of mortgage recordings by all mortgagees, and of total loans made by savings and loan associations, were down about 3 percent. 1. Mortgage recordings: insurance companies and banks and trust companies were the only mortgagees to increase their dollar volumes and percentages of the total recordings. 2. Decline in savings and loan lending was due to decrease in home-purchase and reconditioning loan classifications. Construction and miscellaneous purpose loans were larger in volume contrary to the general trend. IV. Foreclosure activity in December dropped to within a fraction of the post-depression low established in October of last year. V. December level of industrial production carried the Federal Reserve index to an all-time high. Final figures confirm earlier that many of the country's economic units were functioning at or near post-depression highs at the close of the year. reports RESIDENTIAL BUILDING ACTIVITY AND SELECTED INFLUENCING FACTORS 1926* 100 600 1929 158 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 Federal Home Loan Bank Review RESIDENTIAL CONSTRUCTION and HOME-FINANCING ACTIVITY • T H E December index of residential building (after adjustment for normal seasonal declines) showed a sharp rise from November to the highest level since 1929. In terms of units and cost, residential-construction volume showed unusually strong resistance to depressing seasonal influences. The estimated number of units on which construction was started declined 8 percent from November; this constitutes a favorable movement in comparison with the normal November-to-December drop of 35 percent. Foreclosure activity in metropolitan communities eased off in December of last year to a point only fractionally above the post-depression low level established in October. The decline during the month of December brought the foreclosure index to a point well below the corresponding month of 1938. In line with the improvements shown by the residential construction and foreclosure indexes, production in American industries mounted to an all-time high level in December as indicated by the seasonally adjusted Federal Reserve index. Recent sky-rocket- ing of production activity, together with more moderate improvement earlier in the year, carried the December index 23 percent above the close of 1938. Recent building-cost quotations indicate a leveling off from the relatively sharp rises reported since August of last year. The index of wholesale building material prices remained unchanged from November to December, while the cost of constructing a standard 6-room frame house showed relatively little rise. December mortgage-financing volume was seasonally lower than November, with all types of lenders [1926=100] Dec. 1939 Type of index ^Residential construction *_._ Foreclosures (metro, cities)._ Rental index (NICB) Building material prices Industrial production 1 Manufacturing employment Manufacturing pay rolls Average wage per employee. 1 70.5 121.0 85.5 93.0 118.6 102.3 t 97.7 95.5 Home Loan Bank NUMBER OF UNITS 30 Board. Compiled 1 building permits 1938 20 J22 |l8 K; 90 1938 70| / Labor) PROVIDED 90 ^^^ y 60 60 14 _M939il |I2 12 10 11 0 /,931-35 AVt 8 6 s * -*' ~-J 8 mm — - •»••• —-- • ^ S ^ ^ ___ February 1940 APR. MAY JUN. JUL. AUG. SEP OCT. NOV. OEC. O 50 /<?3/-3 30 6 2 F E B . MAR —, 40 r***** ^ —J 4 2 JAN. to U. S. Dept. of 100 16 39 \ DEC. reported -po 18 4 t-.- +63.2 -19.9 +0.5 +4.0 +23.0 +10.6 +16.9 +5.6 ~l 100 i24 T/ 22 43.2 151.0 85.1 89.4 96.4 92.5 83.6 90.4 H28 —Y | +32.3 -6.2 -0.1 0.0 +3.2 +0.2 0.0 -0.2 Percent change 120 g26 24 Dec. 1938 PROVIDED COST OF UNITS -|30 26 14 residential PROVIDED — 28 16 from 53.3 129.0 85.6 93.0 114.9 102.1 97.7 95.7 Percent change Corrected for normal seasonal variation. ESTIMATED NUMBER AND COST OF FAMILY DWELLING UNITS IN ALL CITIES OF 10,000 OR MORE POPULATION (Source: Federal Nov. 1939 * • 5 AV 1 30 *** — ^^^ ^^^ ^„^ ^^s | 10 w 20 10 Division of Research 8 Statistics J Federal Home Loan Bank Board I DEC. JAN. FEB. MAR. APR. MAY JUN. JUL. AUG. SEP. OCT. NOV. D E C 159 other than insurance companies and commercial banking institutions sharing in the decline. Savings and loan associations showed a somewhat greater-than-average decline in volume of mortgages recorded. Relatively large decreases in the homepurchase and reconditioning loan classifications contributed to the downward movement of savings and loan lending during December. TOTAL LOANS MADE BY* ALL SWINGS ANO LOAN ASSOCIATIONS UNITED STATES - BY TYPE OF ASSOCIATION MILLIONS OF OOLLARS 120 no Residential Construction [Tables 1 and 2] • AGAIN in December, units placed under construction in connection with slum-clearance programs accounted for a relatively high proportion of total home building. Approximately 9,000 of the 13,500 units classified as multifamily in cities of 10,000 population or over were instituted by local sponsors of such projects mider the direction of the United States Housing Authority. Privately financed apartment construction remained practically unchanged from November to December at 4,500 units, while 1-family, 2-family, and joint home and business structures each registered declines mVolume. New Mortgage-Lending Activity of Savings and Loan Associations [ Tables 4 and 5] • DECEMBER volume of new loans made by savings and loan associations was 3 percent lower than November due principally to decreases of over 8 percent in the home-purchase and reconditioning classifications. Construction loans as well as those for miscellaneous purposes increased contrary to thejjeneral trend. New mortgage loans distributed by purpose [Amounts are shown in thousands of dollars] Purpose Dec. 1939 Nov. 1939 $26, 923 $26, 607 Construction 27, 779 30, 434 Home purchase 15, 001 15, 445 Refinancing 4,335 4,720 Reconditioning— Other purposes— 9,074 8,870 Total 160 83, 112 86, 076 Percent change Dec. 1938 + 1.2 $19, 152 - 8 . 7 20, 826 - 2 . 9 12, 805 - 8 . 2 4,025 + 2.3 7,126 Percent change + 40.6 + 33.4 + 17. 1 + 7.7 + 27.3 - 3 . 4 63, 934 + 30.0 Savings and loan associations in the four Bank Districts which comprise a belt across the southern half of the United States showed rises in lending activity from November; the only northern area in which loans increased was the Des Moines District. In comparison with December of 1938 all Districts reported higher new loan volumes, the Des Moines District leading with a rise of 57 percent. Mortgage Recordings [Tables IS and 14] • IN the month of December, the 113,241 mortgages recorded amounted to $316,541,000, a decrease of about 2% percent from the previous month. Lower mortgage activity occurred in 31 States, and each type of lender, with the exception of insurance companies and banks and trust companies, participated in the December recession. Contrary to the general downward trend, insurance companies recorded a larger number and a greater dollar amount of mortgages than in November. Banks and trust companies increased their portion of total mortgage business, and expanded their business in 21 States. Federal Home Loan Bank Review Mortgage recordings by type of mortgagee [Amounts are shown in thousands of dollars] Percent change from November Type of lender Savings and loan associations Insurance companies Banks and trust companies Mutual savings banks Individuals Others Total Percent of December amount PerCumulative re- cent of cordings total record(12 ings months) 30.2 $1,168,075 331,514 9.2 31.0 8.8 + 0. 6 -7.0 -4.8 -6. 1 25.6 4.3 15.7 15.0 924,479 140,809 648,352 552,366 24 6 3.7 17.2 14.7 -2.6 100.0 3,765,595 100. 0 Small-House Building Costs [Tables 8 and 6]} MATERIALS used in constructing a standard 6-room frame house cost slightly more in December than in November; however, this monthly increase is considerably smaller than those shown during the past three months. The index of material costs stood over 1 percent above the corresponding month of 1938, and nearly 5 percent higher than the average 1936 month. Labor costs in connection with building the standard house continued the gradual decline which has been evidenced since March 1939, bringing the index more than 1 percent below the level at the close of 1938. The December labor cost index was nearly 11 percent above the 1936 level. Divergent trends in total cost of the standard February 1940 Construction costs for the standard house [Average month of 1936=100] -3.2 + 2. 5 During the fourth quarter of 1939, several interesting shifts took place in the mortgage-financing picture. Whereas savings and loan associations steadily expanded their proportion of home financing during each of the first three quarters, mortgage activity in the fourth quarter indicated that some of this business was surrendered to banks and trust companies and other mortgagees. From 33 percent of total business in the third quarter, the savings and loan portion was reduced to 31 percent in the October-December period, while banks and trust companies expanded their proportion of business from 23 percent to 25 percent. The portion of home-financing business done by insurance companies and mutual savings banks remained unchanged between the third and fourth quarters. • house were noted among the 26 cities reporting in October of last year as well as in January 1940. Although the majority of cities showed higher costs at the end of the 3-month period, five of the cooperating communities had declines in excess of $100. Dec. 1939 Nov. 1939 Percent change Dec. 1938 Percent change _ 104.5 _ _ _ 110.6 104.4 110.8 + 0. 1 -0.2 103. 1 112. 1 + 1. 4 -1. 3 106.6 106.5 + 0. 1 106. 1 + 0.5 Element of cost Material Labor Total Federal Savings and Loan System [Table 7] • EIGHT more converted Federals were operating on December 31 than at the close of the preceding month, bringing the total of such institutions up to 775; during this period the number of associations originally formed by new subscription of shares remained unchanged at 634. The combined assets of all Federals continued the regular growth of the past five years to a total of $1,578,000,000. A comparable group of 1,321 Federals reporting movements in balance sheet items from November displayed a pattern of changes which are typical of savings and loan operations in December. Private capital reflected abnormal rises due to dividend credits, while borrowings from the Federal Home Loan Banks increased to meet the cash needs incident to dividend payments and post-dividend withdrawals. Loans outstanding continued to swell due to the continued high lending rate, but such rises were not in proportion to increased private capital. Progress in number and assets of Federals Number Type of association New Converted Dec. 31, 1939 634 775 Nov. 30, 1939 Approximate assets Dec. 31, 1939 Nov. 30, 1939 634 $446, 915, 000 $431, 104, 000 767 1, 131, 066, 000 1, 108, 119, 000 T o t a l . . - 1,409 1,401 1, 577, 981, 000 1, 539, 223, 000 Federal Savings and Loan Insurance Corporation [Tables 7 and 8] • T H E year 1939 again displayed the steady sound growth of insured associations which was apparent during 1938. Due to the receipt of new private share investment at a rate considerably greater than the volume of repurchases, private share capital of all comparable insured institutions during 1939 increased 18 percent over 1938. Increases in private repurchasable capital were reported in every Bank District (chart opposite). The largest increase during the year (38 percent) was again reflected in the private share capital of the Winston-Salem District, with the Pittsburgh, Des Moines, and Chicago Districts ranking next. The smallest increases in private share capital during this period, less than 13 percent, were reported by the Cincinnati, Indianapolis, and Topeka Districts. The greatest increase in mortgages outstanding over 1938 also took place among these Bank Districts in the same order—28 percent in the Winston-Salem District, with the Pittsburgh, Des Moines, and Chicago Districts following close behind. The percentage increase in mortgages held for all comparable insured institutions paralleled very closely their growth in private repurchasable capital. During 1939, 95 State-chartered associations with assets of $97,606,000 and 21 Federals with assets of $14,004,000 were insured, making a total of 116 associations insured during the year with assets of $111,610,000. Chart below shows distribution of assets of all insured associations. Those associations PROGRESS OF FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION FEDERAL INSTITUTIONS S (CONVERTED.. | STATE CHARTERED INSTITUTIONS.... 1,600 1,400 ^m q mm 11 i 1934 1935 1936 162 MUM PERCENT INCREASE IN PRIVATE REPURCHASABLE CAPITAL OF COMPARABLE INSURED SAVINGS AN0 LOAN ASSOCIATIONS 1939 over 1938 By F.H.LB. Districts PERCENT 10 Topeka 6 Indianapolis which have converted to Federal charter (763 in number) hold the largest proportion of assets—45 percent; while the 799 State-chartered associations hold 37 percent, and new Federals hold 18 percent. Eight loss cases were placed in the custody of the Insurance Corporation during the year. Seven of these were settled at a total cost to the Corporation of $773,000 and with contingent commitments of $334,000. One case was in process of settlement at the end of the year. Three were merged and the balance were continued under new management. The Corporation continues to operate on less than 4 percent of its gross income. Operating costs, administrative and nonadministrative (excepting losses), have been met since the creation of the Corporation from the earnings of invested reserves, and no part of premium receipts, admission fees, or earnings on the $100,000,000 capital has been used for operating purposes. Assets of the Corporation at the end of 1939 totaled $122,000,000 of which $121,000,000 was in cash and Government or Government-guaranteed bonds. There were 2,196 insured associations with assets of $2,506,958,000 and 2,386,000 protected savers at the close of 1939. | | D u r i n g December applications for insurance were received from 20 associations, of which 15 were Statechartered and five, converted Federals. Federal Home Loan Bank Review Federal Home Loan Bank System: Progress During 1939 [Table 9; Supplemental SAVINGS and loan membership in many Federal Home Loan Bank Districts now embraces the great bulk of such associations in the area. Although the opportunities to increase the volume of new members of this type are diminishing as the Banks approach their maximum savings and loan membership possibilities, admissions to the System have continued to exceed actual withdrawals. However, nominal withdrawals (mergers and consolidations within the System), although usually not effecting a change in total member assets, have been more than sufficient to offset the number of admissions. At the close of 1939, the number of member institutions of the Federal Home Loan Bank System was 3,920 with estimated assets totaling $4,741,000,000. This represents a decrease of 42 institutions since the October 1938 peak, although the aggregate assets of member institutions increased by more than $300,000,000 during the same period. Gross advances by the Banks during the calendar year 1939 amounted to $94,781,000 and exceeded the 1938 figure by $12,822,000. However, repayments during the year reached an all-time high of $112,310,000, resulting in a reduction of total advances outstanding from $198,842,000 on December 31, 1938 to $181,313,000 on December 31, 1939. As the chart Tables A and B] • ADVANCES AND REPAYMENTS BY MONTHS AND BALANCE OF ADVANCES OUTSTANDING to A^ MUUKt i: , TQLH/1 in * OUTSTAMOne —|[— ?* ^Hfl y« fla E§K£&\ ^ ft # | ^Ss Hra^f^S4isS! rttj 8 hi IW - ! I 8 eo A- JQfr-J W*% 140 Ji i 1 1 I r '.— !Y>"U $&'* ftb on this page shows, this is only the second time since the inception of the Banks that total advances outstanding have failed to increase over the previous year's balance. Four Banks—New York, WinstonSalem, Des Moines, and Los Angeles—reported a larger balance of outstanding advances at the end of 1939 than a year earlier. Since the creation of the Banks, $581,922,000 has been advanced to members and repayments on these advances have amounted to $400,609,000. Dividends at annual rates ranging from threequarters of 1 percent to 2 percent during the first Dividends paid or declared by the Federal Home Loan Banks through Dec. 31,1939 Cumulative through Dec. 31, 1939 Total for 1939 Federal Home Loan Bank No. No. No. No. No. No. No. No. No. No. No. No. 1—Boston __ 2—New York 3—Pittsburgh 2 4—Winston-Salem 2_ 5—Cincinnati.. __ 6—Indianapolis 7—Chicago 8—Des Moines. ._ 9—Little Rock 10—Topeka 11—Portland 12—Los Angeles Total.- ._ 1 2 . - Rate per annum 1 Percent 1 1 1 1 Members $38, 497. 69 44, 213. 63 25, 510. 82 38, 828. 98 129, 256. 33 41, 162. 64 2-1 68, 773. 55 IK 27, 885. 35 20, 623. 84 1 16, 987. 79 1 11, 177. 67 H-Di 34, 670. 56 Government Total $124,675.00 $163, 172. 69 233, 845. 63 189, 632. 00 111,463.00. 136, 973. 82 130, 910. 98 92, 082. 00 352, 831. 08 223, 574. 75 139, 823. 64 98, 661. 00 281, 382. 05 212, 608. 50 120, 321. 61 92, 436. 26 108, 347. 84 87, 724. 00 90, 323. 79 73, 336. 00 70, 777. 67 59, 600. 00 159, 269. 32 124, 598. 76 Members Government Total $210, 921. 53 381, 177. 86 186, 426. 77 223, 120. 94 736, 163. 55 233, 799. 65 383, 859. 12 158, 917. 09 126, 190. 80 77, 028. 61 60, 757. 33 136, 184. 74 $783, 129. 61 1, 590, 668. 75 945, 574. 39 695, 907. 29 1, 659, 324. 54 673, 647. 59 1, 590, 817. 95 726, 749. 57 639, 028. 62 386, 588. 56 409, 390. 88 551,332. 11 $994, 051. 14 1, 971, 846. 61 1, 132, 001. 16 919, 028. 23 2, 395, 488. 09 907, 447. 24 1, 974, 677. 07 885, 666. 66 765, 219. 42 463, 617. 17 470, 148. 21 687, 516. 85 497, 588. 85 1, 490, 391. 27 1, 987, 980. 12 2, 914, 547. 99 10, 652, 159. 86 13, 566, 707. 85 Where two rates are shown they represent declarations for first and second halves of 1939. Dividends declared as of Dec. 31, 1939, for the calendar year 1939; other Banks declared semiannual dividends. February 1940 163 half of 1939 and from 1 to IK percent during the last half were declared by the 12 Federal Home Loan Banks (see table at bottom of preceding page). Total dollar amount of dividends disbursed by the Banks during 1939 was $1,987,980, a decrease of almost $418,000 from the previous year's volume due to the lowering of dividend rates. These 1939 dividends include $1,490,391 paid to the United States Treasury and $497,589 to member institutions of the Federal Home Loan Bank System. Since the establishment of the System in 1932, the Treasury and member institutions have received $10,652,160 and $2,914,548, respectively, on their investments, making a total of $13,566,708. During 1939, five Banks—Pittsburgh, Winston-Salem, Indianapolis, Little Rock, and Topeka—declared dividends at the same rates as in 1938. Although the remaining seven Banks reduced their dividend rates slightly during the year, this reduction approximated only one-half of 1 percent. A decline of $29,216,000 in the resources of the Banks during the year 1939 to a total of $254,680,000 as of December 31, 1939 is primarily accounted for by the retirement on July 1 of $41,500,000 in consolidated debentures, which left a balance of $48,500,000 outstanding (see table on facing page). On the other hand, advances outstanding declined $17,529,000 during the same period, which was a lower percentage of reduction than in resources, with the result that whereas advances outstanding represented 70 percent of resources at the close of 1938 they amounted to 71 percent on December 31, 1939. Cash and investments of the Banks which were 29.7 percent in 1938 were 28.5 percent at the end of 1939. The Banks' capital increased during the past year from $170,291,000, or 60.0 percent of liabilities and capital, to $175,338,000, or 68.9 percent. Deposits have steadily increased from 5.0 percent of liabilities and capital in 1937 to 11.7 percent in 1939. Detailed statements of condition and of profit and loss for the 12 Federal Home Loan Banks will be found in Supplemental Tables A and B on pages 166 and 168. INTEREST R A T E S The effective interest rates of seven Banks were lowered during 1939. As a result of the Federal Home Loan Bank Board's action, effective October 15, the maximum interest rate on advances to member institutions has been set at 3 percent. Some of the Banks are charging interest rates substantially 164 Interest rates on advances to members 1 Federal Home Loan Bank No. 1—Boston No. 2—New York No. No. No. No. No. No. No. No. No. No. 3—Pittsburgh 4—Winston-Salem_ 5—Cincinnati 6—Indianapolis 7—Chicago-. 8—Des Moines 9—Little Rock 10—Topeka 11—Portland 12—Los Angeles __ Rate in effect on Dec. 31, 1939 Type of loan Percent 2JJ All short-term advances amortized within one year. 3 All other advances. All short-term advances IK amortized within one year. 3 All other advances. 3 All advances. 3 All advances. 3 All advances. 3 All advances. 3 All advances. 3 All advances. 3 All advances. 3 All advances. 3 All advances. 3 All advances. 1 On May 29, 1935, the Board passed a resolution to the effect that all advances to nonmember institutions upon the security of insured mortgages, insured under Title II of the National Housing Act, "shall bear interest at rates of interest one-half of 1 per centum in excess of the current rates of interest prevailing for member institutions." below the maximum. The table above lists the rates in effect on advances to members as of January 1, 1940. C U R R E N T OPERATIONS New advances by the Federal Home Loan Banks during the month of December 1939 more than trebled the volume for the preceding month. This December figure which amounted to $18,724,000 represents an increase of approximately four million dollars over the December 1938 amount, and was the largest volume of new advances during any one month since the organization of the System. Increasing somewhat over November, repayments during December totaled $6,233,000. The net effect of the Banks' lending activity in December was a 12 million dollar increase in advances outstanding to $181,313,000. With the exception of a slight decrease in the Pittsburgh Bank, the month's lending operations resulted in each of the Banks reporting an increase in advances outstanding at the end of December 1939 over the November balance. The Federal Home Loan Banks of New York, Winston-Salem, Des Moines, and Los Angeles reported larger balances of advances outstanding on December 31, 1939 than at the end of 1938. Federal Home Loan Bank Review Consolidated statements of condition of the Federal Home Loan Banks compared for the years 1939, 1938, and 1937 December A....t. 3 I, 1939 December Percentage Distribution 31, »....«. 1938 December Percentage Distribution Amounts 31 1937 Percentage Distribution ASSETS CASH: On hand and on d e p o s i t INVESTMENTS: U. S. Government o b l i g a t i o n s and s e c u r i t i e s guaranteed by U. S. ADVANCES OUTSTANDING: Members Nonmembers Total advances o u t s t a n d i n g ACCRUED INTEREST RECEIVABLE: Investments Advances t o members Advances t o nonmembers T o t a l accrued i n t e r e s t OTHER ASSETS: Accounts r e c e i v a b l e - FHLB8 assessment r e f u n d Accounts r e c e i v a b l e - o t h e r Mi seellaneous T o t a l other assets TOTAL ASSETS LIABILITIES $ 37,849,688.54 13.33 $ 23,203,071.96 9.03 50,430,213.95 19.80 46,404,368.99 16.35 32,620,157.86 12.70 181,312,990.64 0 181,312,990.64 71.19 198,839,803.15 2.635.00 198,842,438.15 200,091,653.48 2,975.00 200,094,628.48 77.90 .21 210,887.15 390,625.71 23.24 601,536.10 218,592.18 470,254.37 26.24 688,872.79 .27 .04 97,291.87 0 15,645.96 9.50 112,947.33 .04 .06 payable DIVIDENDS PAYABLE: U. S. Government Members T o t a l d i v i d e n d s payable ACCOUNTS PAYABLE "CONSOLIDATED DEBENTURES OUTSTANDING PREMIUMS ON DEBENTURES MATURED OBLIGATIONS: C o n s o l i d a t e d debentures I n t e r e s t on c o n s o l i d a t e d debentures T o t a l matured o b l i g a t i o n s liabilities CAPITAL: CAPITAL STOCK ( P a r ) : Members ( f u l l y p a i d ) Members ( p a r t i a l l y p a i d ) Total Less unpaid s u b s c r i p t i o n s .21 .09 102,837.73 0 15,101.94 123.50 118,063.17 0 6,104.45 1,925.00 8,029.45 .01 75,000.00 3,927.17 1,171.25 80,098.42 .03 152,439.70 4,302.14 874.97 157,616.81 $254,680,415.89 100.00 $283,896,193.37 100.00 $256,877,295.23 100.00 $ 24,990,444.75 4,626,240.56 87,778.61 0 29,704,463.92 11.66 $ 19,801,365.98 2,098,742.83 74,953.61 0 21,975,062.42 7.74 $ 11,372,635.28 1,193,167.53 149,125.00 56,932.50 12,771,860.31 4.97 32,437.71 151,166.68 191,604.39 .08 32,178.65 366,666.58 398,845.23 .14 16,536.19 309,291.65 325,827.84 .13 671,529.76 233,912.68 905,442.44 .36 770,938.75 256,621.59 1,027,560.34 .36 914,864.05 262,519.52 1,177,383.57 .46 4,295.20 .00 6,103.77 .01 3,035.21 .00 48;500,000.00 19.04 90,000,000.00 31.70 77,700,000.00 30.25 28,645.84 .01 176,615.34 .06 120,045.74 .04 5,000.00 2,532.50 7,532.50 .00 15,000.00 6,185.00 21,185.00 .01 0 0 0 .00 79,341,984.29 31.15 113,605,372.10 40.02 92,098,152.67 35.85 57,284.97 150,000.00 16,251.74 9.50 223,546.21 U. S. Government s u b s c r i p t i o n s Less amount u n c a l l e d 40,947,700.00 60,000.00 41,007,700.00 29,750.00 40,977,950.00 124,741,000.00 0 T o t a l paid in on c a p i t a l 165,718,950.00 stock SURPLUS: Reserve as r e q u i r e d under Sec. 16 of Act Reserve f o r c o n t i n g e n c i e s Total surplus UNDIVIDED PROFITS: T o t a l s u r p l u s and u n d i v i d e d Total 70.04 AND CAPITAL LIABILITIES: DEPOSITS: Members - time Members - demand Applicants Prepayments on advances Total deposits Total 8.70 211,989.75 330,652.81 0 542,642.56 DEFERRED CHARGES: Prepaid debenture expense Prepaid assessment - F . H . L . 8 . Board Prepaid s u r e t y bond and insurance premiums Other T o t a l d e f e r r e d charges ACCRUED INTEREST PAYABLE: Deposits - members Debentures T o t a l accrued i n t e r e s t $ 22,162,993.08 capital TOTAL LIABILITIES AND CAPITAL 16.09 48.98 65.07 4,638,551.83 901,701.25 5,540,253.08 162,712,125.00 j 13.37 43.94 57.31 3,832,798.73 262,021.01 4,094,819.74 4,079,228.52 profits 37,881,900.00 144,100.00 38,026,000.00 54,875.00 37,971,125.00 124,741,000.00 0 34,577,000.00 440,300.00 35,017,300.00 183,575.00 34,833,725.00 124,741,000.00 0 159,574,725.00 13.56 48.56 62.12 2,876,819.56 0 2,876,819.56 3,483,876.53 9,619,481.60 3.78 7,578,696.27 2.67 175,338,431.60 68.85 170,290,821.27 59.98 $254,680,415.89 100.00 $283,896,193.37 100.00 520^ <\JX^\ 161/79^*^ $256,877.?.^;if v, """Consolidated Federal Home Loan Bank debentures issued by the Federal Home Loan 8ank Board and now outstanding are the joint and several obligations of all Federal Home Loan Banks. February 1940 .6 100 00 165 Supplemental Table A—Statement of condition of Balance sheet Combined Consolidated item Ks» Y o r k Boston j Pit E .l,«r g h ! ASSETS CASH: On Hand On Deposit w i t h : U. S. Treasurer Commercial Banks F. H. L. Bank of New York, Agent Other Federal Home Loan Banks In T r a n s i t _ Total Cash Deposit with U. S. Treasurer f o r Matured O b l i g a t i o n s $ _ __ INVESTMENTS: U. S. Government O b l i g a t i o n s and S e c u r i t i e s F u l l y Guaranteed by United States ADVANCES OUTSTANDING - Members ACCRUED INTEREST RECEIVABLE: Deposits - Other F. H. L. Banks Investments Advances t o Members Total Accrued I n t e r e s t Receivable _ _ DEFERRED CHARGES: Prepaid Debenture Expense Prepaid Assessment - F. H. L. B. Board Prepaid Surety Bond and Insurance Premiums Other Total Deferred Charges OTHER ASSETS: Accounts Receivable Miscellaneous Total Other Assets _ _ TOTAL ASSETS _ _ _ ___ LIABILITIES LIABILITIES: DEPOSITS: Members - Time Members - Demand Applicants Other Federal Home Loan Banks Total Deposits __ _ _ _ _ _ _ _ _ DIVIDENDS PAYABLE: U. S. Government Members Totaf Dividends Payable _ __ _ .. ACCOUNTS PAYABLE PREMIUMS ON DEBENTURES •CONSOLIDATED DEBENTURES: 2% Series C Due December | f 1940 2t Series D Due A p r i l | , 1943 Total Consolidated Debentures _ MATURED OBLIGATIONS: Consolidated Debentures I n t e r e s t on Consolidated Debentures Total Matured O b i i g a t i o n s _ CAPITAL: CAPITAL STOCK (PAR): Members ( F u l l y Paid) Members ( P a r t i a l l y Paid) Total Less: Unpaid S u b s c r i p t i o n s _ _ _ U. S. Government ( F u l l y Paid) _ Total i d In on Capital Stock ,'»,.. quired Under Section 16 of Act - ^ * 7 > °» £"*> cd DVivided P r o f i t s \& *"' i _ :::.:..: ^ ^ £ / 7 £ S /ND CAPITAL ,>u£e As o f l 2 - 3 l - 3 9 * * r \ t , ^ w y °rk Bank $ 37,605.90 $ 500.00 10,815,432.46 11,286,720.81 15,000.00 3,150,000.00 0 30,304,820.17 0 1,037,654.22 1,308,614.60 1,250.00 1,000,000-00 0 3,948,018.82 0 $ $ 500.00 1,200.00 250,013.87 1,329,555.67 1,250.00 653,270.53 324.251.47(a) 1,250.00 1 5,150,000.00 ! o 0 6,129.272.00(a) I 0 1,592,019.54 0 o 50,430,213.95 50,430,213.95 8,153,045.02 2,217,402.53 4,985,934.18 181,312,990.64 181,312,990-64 7,410,033.35 19,820,093.94 16,259,439.38 0 211,939.75 330,652.81 542,642.56 939.04 211,989.75 330,652.81 543,531.60 212.33 31,532.47 11,890.45 43,635.25 466.43 14,940.18 56,190.02 71,596.63 0 23,797-52 57.916.66 81,714.18 57,234.97 150,000.00 16,251.74 9.50 223,546.21 57,284.97 150,000.00 18,251.74 9.50 223,546.21 0 8,488.42 1,334.10 0 9,822.52 15,618.87 2,889.03 0 18,507.95 7,645.74 13,595.31 1,343.09 0 22,584.14 6,104.45 1,925.00 8,029.45 6,104.45 1,925.00 8,029.45 534.15 0 534.15 250.00 0 250.00 2,241.74 0 2,241.74 $254,680,415.89 $262,823,182.02 $19,571,089.11 $28,257,123.05 $22,943,933.16 $ 24,930,444.75 4,626,240.56 87,778-61 0 23,704,463.92 $ 24*990,444.75 4,6 26,240.56 87,778.61 8.150.000.00 37,854,463-92 $ 2,402,457.95 200,000.00 0 0 2,602,457-95 $ 3,134,515.18 439,666.65 7,575.00 0 3,581,756.83 $ 32,437.71 0 159,166.68 191,604.39 32,437.71 298.63 159,166.68 1.91,903.02 5,854.06 0 0 5,854.06 591.37 0 0 591.37 2,306.69 0 22,500.00 24,806.69 671,529.76 233,912.68 905,442.44 671,529.76 233,912.68 905,442.44 62,337.50 19,533.22 81,870.72 0 0 0 111,463.00 25,510.82 136,973.82 0 ] | j AND CAPITAL ACCRUED INTEREST PAYABLE: Deposits - Members Deposits - Other F. H. L. Banks Debentures Total Accrued I n t e r e s t Payable SURPLUS: Reserve 37,606.90 10,815,492.46 11,286,720.81 15,000.00 0 640.41 22,155,460.58 7,532.50 _ 690,498.49 0 21,853.61 1.750.000.00 2,462,352.10 4,295.20 4,295.20 0 0 0 23,645.84 28,645.34 0 0 1,718.75 25,000,000.00 23,500,000.00 48,500,000.00 25,000,000.00 23,500,000.00 43,500,000.00 0 0 0 0 5,000.00 2, 532.50 7,532.50 $ 79,341,984.29 0 0 0 $ 87,484,750.42 0 0 0 $ 2,690,182.73 0 0 0 $ 3,582,348.20 0 0 0 $ 8,125,851.36 $ 40,947,700.00 60,000.00 41,007,700.00 29,750.00 40,977,950.00 124.741,000-00 165,718,950.00 $ 40,947,700.00 60.000.00 41,007,700.00 29,750.00 40,977,950.00 124.741,000.00 165,718,950.00 $ 3,982,000.00 0 3,982,000.00 0 3,982,000.00 12,467.500.00 16,449,500.00 $ 4,669,500.00 17.800.00 4,687,300.00 6.700.00 4,680,600.00 18,963.200.00 23,643,800.00 $ 2,648,500-00 3.000.00 2,651,500.00 1.500-00 2,650,000.00 I I , 146.'300.00 13,796,300.00 4,633,551.83 901,701.25 5,540,253.08 4,638,551.83 901,701.25 5,540,253.08 285,123.49 0 285,128.49 600,611.95 104,893.21 705,505.16 430,756.59 0 430,756.59 4.079.228.52 .9,619.431.60 $175,333,431.60 4.079,223.52 9,619,481.60 $175,333,431.50 146.277.89 431,406.33 $16,880,903.38 325.469.69 1,030,974-85 $24,674,774,85 591.025.21 1,021,781.80 $14,813,081.80 $262; 823,132.02 $19,571,089.11 $23,257,123.05 $22,943,933.16 $254,680,1*15.39 administered as Agent f o r the 12 Banks an imprest fund of $|( ,000, fram which deoeniure 0 0 i 1 1,500,000.00 4,000,000.00 5,500,000.00 expenses, other than orokerage commissions and Consolidated Federal Home Loan Bank debentures issued oy the Federal Home Loan Bank Board and now outstanding are the joint and several obligations of all Federal Home Loan Banks. 166 fee/era/ Home Loan Bank Review the Federal Home Loan Banks as of Dec. 3 1 , 1939 Win s t o n - S a l em $ 1 10.00 Cincinnati $ 510.00 306,286.08 35,641.81 1,250.00 0 0 313,187.89 0 2,655,484.40 900,945.15 1,250.00 500,000.00 0 4,058,189.55 0 Chi cago Indianapolis $ 31,344.67 1,619,746.82 762,840.15 1,250.00 0 0 2,415,181.64 0 $ Des 3,232.23 $ 260,186.80 4,959,502.02 1,250.00 1,500,000.00 0 6,724,171.05 0 Little Moines 25.00 $ 25.00 1,326,383.58 0 1,250.00 0 0 1,327,658.68 0 834,732.65 75,104.66 1,250.00 0 0 911,112.31 0 p o r t 1 and Topeka Rock $ 25.00 $ Los 0 $ 565,395.16 40,000.00 1,250.00 0 0 606,645.16 0 590,357.17 5,124.67 1,250.00 0 0 596,756.84 0 Angelee 235.00 705,381.18 945,140.61 1,250.00 0 0 1,652,606.79 0 1,519,759.98 11,366,410.90 7, 376,223.-84 4,440,000.00 1,367,000.00 2,490,000.00 1,938,750.00 1,355,000.00 3,214,637.50 19,819,667.95 13,339,077.67 10,944,151.29 25,882,259.69 17,618,540.79 9,843,611.06 10,947,227.97 6,273,796.54 18,155.091.11 0 6,014.35 56,825.52 62,869.87 27.40 47,226.49 58,850.64 106,104.53 0 24,531.27 663.34 25,194.61 232.88 16,812.05 4,770.41 21,815.34 0 11,085.76 16,216.89 27,302.65 0 13,011.87 25,253.90 38,265.77 0 11,706.92 19,405.71 31,112.63 0 2,428.79 15^278.44 17,707.23 0 8,872.08 7,390.83 16,262.01 6,354.39 11,376.85 690.15 9.50 18,430.89 6,163.18 19,872.79 1,771-66 0 27,807.63 5,590.18 10,810.05 1,137.66 0 17,537.89 10,986.12 20,124.40 1,187.49 0 32,298.01 9,604.25 11,605.96 1,145.07 0 22,355.28 2,819.50 8,443.69 1,523.09 0 12,786.28 3,823.00 9,062.02 1,126.65 0 14,011.67 0 9,292.82 1,191.67 0 10,484.43 4,298.61 11,708.62 912.03 0 16,919.46 137-05 1.075.00 i, 212.05 573.22 0 573.22 143.05 425.00 573.05 275.00 0 275-00 0 0 0 101 .50 0 101.50 0 0 0 75.00 0 75.00 1,768.74 425.00 2,193.74 $21,765,128.63 $33,893,163.50 $20,778,862.32 $37,100,813.99 $19,946,311.03 $13,712,423.(19 $13,527,859.11 $8,263,708.H2 $23,057,761.51 $ 757,306.68 0 4,050.00 900.000.00 1,661,356.68 $ 3,944,000.00 2,782,562.74 28,350.00 0 6,754,912.74 $ 4,989,364.78 198,750.63 0 1.000.000.00 6,188,115.31 $ 5,827,952.09 0 6,675.00 0 5,334,6 27.09 $ $ 0 54,598.29 0 0 54,598.29 $ 1,090,000.00 50,000.00 0 0 1,140,000.00 $ 0 620,000.00 375.00 0 620,375.00 $ 1,211,000.00 280,662.35 15,000.00 3.500.000.00 5,006,662.35 3.66B.39 24.66 17.500.00 21,190.05 161.11 0 17.083.33 17,244.44 12,346.82 54.79 15,833.36 28,234.97 7,025.83 0 28.333.33 35,359.16 21.03 219.18 27.500.00 27,740.26 0 0 8.333.33 8,333.33 2&..3I 0 11.250.00 11,275-31 0 0 0 0 440.05 0 10.833.33 11,273.38 92.082.00 38.823.98 130,9 10.98 95,817.75 .56.285.86 152,103.61 49,330.50 21.081.18 70,411.68 70,869.50 23.101.75 93,971.25 46,218.13 14.393.93 60,612.06 43,862.00 I0.464.J9 54,326.19 0 0 0 37,250.00 7TQ7q.p(j 44,329.09 62,299.38 I7rf? 33.66 79,933.04 943,349.58 0 3,900.00 1.000.000.00 1,947,249.58 0 4,200.00 39.00 0 10.00 0 0 0 46.20 3,437.50 3,151.00 2,291.75 9.166-67 3,437.50 573.00 859.25 0 4,010.42 3,000,000.00 2,500,000.00 5,500,000.00 2,750,000.00 2,500,000.00 5,250,000.00 2,000,000.00 2,500j 000.00 4,500,000.00 8,000,000.00 3,000,000.00 11,000,000.00 3,000,000.00 4,500,000.00 7,500,000.00 500,000.00 1,500,000.00 2,000,000.00 750,000.00 2,000,000.00 2,750,000.00 0 0 0 3,500,000.00 1,000,000.00 4,500,000.00 0 0 0 $ 7,316,895.21 0 0 0 $12,181,611.79 0 0 0 0 o $10,789,092.71 $l6,973f o 124.17 0 0 0 $ 9,539,049.40 0 0 0 $ 2,117,830.81 0 0 0 $ 3,902,134.66 0 0 0 $ 664,704.09 0 0 0 $ 9,601,925.33 $ 4,168,000.00 500.00 4,188,500.00 375.00 4,168,125.00 9,203,200.00 13,376,325.00 $ 7,559,900.00 12,100.00 7,572,000.00 6,150.00 7,565,850.00 12.775,700.CO 20,341,550.00 $ 2,385,000.00 500.00 2,885,500.00 250.00 2,885,250.00 6.577.400.00 9,462,650.00 $ 4,718,600.00 0 4,718,600.00 0 4,718,600.00 14.173.900.00 18,892,500.00 $ 2,379,200.00 8.000.00 2,387,200.00 4.000.00 2,333,200.00 7.394.300.00 9,778,100.00 $ 2,119,300.00 0 2,119,300.00 0 2,119,300.00 8.772.400.00 10,891,700.00 $ 1,751,500.00 0 1,751,500.00 0 1,751,500.00 7.333.600.00 9,085,100.00 $1,190,'30 0.00 I.100.00 1,191,400.00 275.00 1,191,125.00 5.960.000.00 7,151,125.00 $ 2,875,900.00 17.000.00 2,392,900.00 10,500.00 2,832,400.00 9.967.900.00 12,850,300.00 398,187.32 152,334.49 550,521.81 754,278.52 194,473.55 948,752.07 286,923.05 0 236,923.05 641,974.38 0 641,974.38 303,025.73 150,000.00 453,025.78 293,634.39 0 293,634.39 201,549.55 0 201,549.55 183,612.27 200,000.00 383,612.27 253,369.54 100,000.00 358,869.04 521,386.61 1,071,908.42 $14,446,233.42 426,249.64 1,375,001.71 $21,716,551.71 240,196.56 527,119.61 $ 9,989,769.61 593,220.44 1,235,194.82 $20,127,694.82 176,135.85 629.161.63 $10,407,261.63 409.257.99 702.892.38 $11,594,592.33 339,075.00 540.62i4.55 $ 3,625,724.55 64,257.06 447.879.33 $7,599,004.33 246.668.58 605.536.1? $13,455,836.12 '" 1 $2!,765, 128.63 $33,898,163.50 $20,773,862.32 $37,100,818.99 $19,945,311.03 $13,712,423.19 $13,527,859. »ll $3,263,708-92 $23,057,761.61 interest are paid. In addition the New York Bank held as Agent $117-60 for the payment of premiums pn employees' group l i f e insurance in the several Banks. February 1940 167 Supplemental Table B.—Statement of profit and loss for the Federal Consolidated Banks Total Operating Charges $5,064,503.63 964,811.65 9.096.61 6,038,411.89 $194,769.76 135,403.55 212.33 330,385.64 $480,853.57 56,828.17 2.871.91 540,553.65 927,635.26 1,029,530.60 45,552.76 18,044.03 267,100.63 0 300,000.00 927,635.26 1,029,530.60 45,552.76 18,044-03 267,100.6 3 9,096.61 300,000.00 57,936.05 0 0 1,498.00 14,717.58 0 I5>7M.68 125,900.85 0 0 1,497.99 35,035.01 0 26,184.86 116,138.87 114,687.52 4,187.56 1,503.01 9,802.86 3,746.58 27,400.88 $ 520,753.93 98,423.85 0 619,177.78 2,537,863.28 2,596,959.89 89,863.31 188,618.71 277,467.28 3,441,452.00 3,441,452-00 240,522.33 351,934.94 341,710.50 0 0 0 ADD - NONOPERATING INCOME: P r o f i t on Sale o f Investments Discount on Investments Credited Miscellaneous _ Total Nonoperating Income LESS - NONOPERATING CHARGES: Premium Charged Off on Investments Loss on Sale o f Investments Total Nonoperating Charges NET INCOME. P i t t s b u rgh $5,064,503.63 364,811.65 0 6,029,315.28 LESS - OPERATING CHARGES: Compensation, T r a v e l , e t c . ( D e t a i l Below) I n t e r e s t on Debentures Debenture Expense - Conmissioris Debenture Expense - Ott er I n t e r e s t on Deposits - Memoers I n t e r e s t on Deposits - Other F. H. L. 8. Banks Assessment f o r Expenses o f F. H. L. B. Board NET OPERATING INCOME York 637,906.62 2,000.00 299.72 637,906.62 2,000.00 299-72 ooo GROSS OPERATING INCOME: I n t e r e s t Earned on Advances I n t e r e s t Earned on Investments I n t e r e s t Earned on Deposits - Other F. H. L. Gross Operating Income New Boston Combined u"5 105,822.76 0 0 640,206.34 640,206.34 0 105,822.76 0 52,736.64 156.25 52,736.64 156.25 0 0 0 0 102.98 0 52,892.89 52,892.89 0 0 102.98 $4,028,765.45 $4,028,765.45 $240,522.33 $457,757.70 $341,607.52 $ $ $ $ $ DETAIL OF COMPENSATION, TRAVEL AND OTHER EXPENSES: COMPENSATION: D i r e c t o r s ' Fees O f f i c e r s ' Salaries Counsel's Compensation Other S a l a r i e s Total _ _ _ Compensation TRAVa EXPENSE: Directors Officers Other „ _ Total Travel Expense OTHER EXPENSES: Telephone and Telegraph _ Postage and Express _ L i g h t , Power, e t c . S t a t i o n e r y , P r i n t i n g and Supplies Insurance and Surety Bond Premiums F u r n i t u r e and F i x t u r e s Purchased _ Rent - Less Rental Charged Exam. Div. F. H. L. B, Board Services of Examining D i v i s i o n _ Miscellaneous Operating Expense __ _ „ 38,567.50 264,245.30 45.951.00 260,468.22 TOTAL - __ — $ 2,420.00 25,750.00 3,200.00 8,744.75 5,400.00 24,200.04 6,250.00 45,601.16 3,075.00 20,100.00 5,600.00 51,151.23 609,232.02 609,232.02 40,114.75 81,451.20 79,926.23 1 30,360.00 34,834.83 16,608.54 30,360.00 34,834.83 16,608.54 1,196.67 3,337.92 23.97 2,321.61 3,787.37 4,338.57 3,183.54 4,082.4! 1,740.18 i 31,803.37 81,803.37 4,558.56 10,447.55 9,006.13 21,377.15 20,318.11 8,170.64 24,791.79 24,574.01 6,342.80 55,839.46 38,462.81 36,723.10 21,377.15 20,318.11 8,170.64 24,791.79 24,574.01 6,342.80 55,839.46 38,462.81 36,723.10 877.36 620.70 357.46 1,041.89 1,874.62 415.92 2,903.34 1,493.57 3,672.88 2,695.34 2,774.95 2,696.37 4,261.75 3,313.76 1,845.85 8,349.96 5,121.58 2,942.54 2,943.90 2,167.16 190.63 2,217.36 2,131.63 1,182.17 6,846.16 6,176.42 3,351.08 236,599.87 Total Other Expense 38,567.50 264,245.30 45,951.00 260,468.22 927,635.26 $ 236,599-87 13,262.74 34,002.10 27,206.51 927,635.26 $ 57,936.05 $125,900.85 $116,133.87 | A n a l y s i s of S u r p l u s - R e s e r v e s SURPLUS - RESERVE SECTION 16 OF ACT: C r e d i t B a l a n c e - DecemDer 3 1 , 1938 Add: ZQ% Net Earnings Year 1939 . C r e d i t Balance - December 3 1 , 1939 $3,832,798.73 305,753.10 4,638,551.83 $3,832,798.73 805,753.10 4,638,551.83 $237,024.03 48,104.46 285,128.49 $509,060.40 91,551.55 600,611.95 SURPLUS - RESERVE FOR CONTINGENCIES: C r e d i t Balance - December 3 1 , 1938 Added During Year 1939 C r e d i t Balance - DecemDer 34, 1939 262,021.01 639,680.24 901,701.25 262,021'.01 639,680.24 901,70l.-25 0 0 0 20,235.01 84,658.20 104,893.21 0 0 0 3,483,876.53 4,028,785.45 60.00 7,512,701.98 1,988,038.28 805,753.10 639,680.24 1.84 3,433,473.46 3,483,876.53 4,028,765.45 60.00 7,512,701.98 1,988,038.28 805,753.10 6,39,680.24 1.84 3,433,473.46 117,032.71 240,522.33 0 357,555.04 163,172.69 48,104.46 0 0 211,277.15 277,767.37 457,757.70 0 735,525.07 233,845.63 91,551.55 84,658.20 0 410,055-38 454,713.02 341,607.52 0 796,320.54 136,973.82 68,321.5i 0 0 205,295.33 $4,073,228.52 $4,079,228.52 $146,277.89 $325,469.69 $591,025.21 UNDIVIDED PROFITS: C r e d i t Balance - DecemDer 3 1 , 1938 . . Add: P r o f i t - Year 1939 Adjustment D i v i d e n d s - I939_ _ Total . . Deduct: Dividends Declared Year (939 A l l o c a t i o n t o Legal Reserve A l l o c a t i o n t o Contingency Reserve Adjustment Dividends - 1939 Total Deductions C r e d i t Balance - December 3 1 , 1939 168 _ _ _ $362,435.08 68.321.51 430,756.59 | Federal Home Loan Bank Review Home Loan Banks for the period Jan. 1 , 1939# through Dec. 3 1 , 1939 ! Des Chicago Indianapolis Moines Little Portland Topeka Rock LOB Angeles Wins c o n - S a l em Cincinnati $472,376.67 32,323.24 5,176.73 509,876.64 $606,143.50 135,701.59 27.40 791,872.49 $313,372.05 112,803.21 0 426,175.26 $853,063.73 66,463.17 232.88 919,764.78 $455,685-07 52,554.34 0 508,239.41 $262,977.64 66,900.55 0 329,878.19 $313,413.17 47,223.18 0 360,636.35 $160,586.23 49,883.51 0 210,469.74 $430,508.3f 60,298.29 575.36 491,381.96 74,560.38 113,906.17 4,843.70 1,503.86 10,907.07 24.66 30,039.10 102,422.41 121,463.58 6,335.56 1,512.50 32,386.55 0 38,782.80 61,681.01 91,328.21 3,463.70 1,501.04 46,406.44 630.15 20,422.64 33,138.67 230,234.23 11,057.44 1,513.29 86,491.17 0 41,982.27 60,677.14 150,6 2 4 . 9 7 5,375.01 1,501.64 14,472.07 219.18 26,845.49 74,812.98 43,749.97 1,791.69 1,501.22 0 0 17,080.59 55,312.72 58,437.40 2,250.01 1,501.27 11,079.45 0 17,270.46 40,676.04 4,429.63 632.87 1,501.14 0 445.20 14,045.73 74,378.14 100,663.92 5,565.22 1,509.07 5,802.43 4,030.84 24,233.50 235,784.94 302,953.40 225,433.19 454,417.07 259,715.50 138,936.45 145,851.31 61,730.61 216,183.12 148,739.13 275,198.84 274,091.70 488,914.09 200,742.07 465,347.71 248,523.91 190,941.74 214,785.04 107,860.27 0 0 121,608.46 0 50.00 31,026.61 0 0 57,731.25 0 0 106,655.89 0 0 0 0 249.72 0 0 0 107,201.38 2,000.00 0 0 0 0 107,860.27 121,658.46 31,026.61 57,731.25 106,655.89 249.72 0 109,201.33 0 809.98 0 0 156.25 9,905.30 0 2,700.00 0 16,962.33 0 0 0 600.00 0 20,156.05 0 1,500.00 0 809.98 156.25 9,905.30 2,700.00 16,962.33 600.00 20,156.05 1,500.00 $381,141.99 $610,416.30 $221,863.38 $520,378.96 $338,217.47 $191,191.46 $2(4,185.04 $237,784.46 $273,693.84 $ $ $ $ $ $ $ $ $ 2,147.50 18,300.00 2,400.00 24,122.90 4,500.00 31,800.00 5,001.00 28,260-24 2,650.00 16,440.26 3,400.00 18,412.48 3,480.00 22,125.00 4,500.00 20,390.18 3,300.00 22,700.00 3,300.00 7,823.00 0 3,180.00 27,800.00 3,300.00 16,412.50 3,700.00 16,500.00 2,400.00 13,677.72 1,590.00 14,630.00 2,400.00 7,525.76 3,125.00 23,400.00 4,200.00 18,346.30 37,123.00 50,692.50 36,277.72 26,145.76 49,071.30 2,041.,47 1,926.72 270. 35 2,869.67 2,940.09 127.90 3,643.30 2,556.97 660.00 3,296.48 1,867.44 265.39 2,513.26 1,641.99 555.40 1,932.75 4,641.05 165.61 5,669.80 4,238.54 5,937.66 6,860.27 5,429.31 4,710.65 6,739.41 1,770.64 1,119.25 490.44 997.54 1,683.17 506.72 3 , 1 8 0 . 00 2,713.02 2,647.69 1,764.85 2,675.31 1,735.51 2,617.66 2,222.89 53.97 10,500.00 4,811.13 2,023.63 1,067.41 884.3S 335.40 1,916.69 1,590.59 267.95 3,999.96 2,113.40 5,440.77 2,220.41 1,589.09 763.33 1,869.17 2,546.01 363.55 1,800.00 1,962.07 4,146.53 1,038.55 945.54 0 1,127.28 1,572.58 478.50 4,200.00 2,228.72 2,014.52 965.62 746.91 0 558.54 1,390.12 414.04 2,700.00 1,360.51 1,683.89 1,953.08 2,385.57 560.06 3,311.44 1,692.94 336.82 1,290.00 3,085.65 3,951.87 47,470.40 69,561.24 40,902.74 2,816.61 3,880.37 5,102.78 2,991.59 2,503.83 910.31 t, 5 5 3 . 0 5 1,668-67 2,443.08 11,799.76 6,405.73 1,878.32 2,255.72 239.31 1,740.99 1,364.73 110.76 2,865.00 3,260.04 1,575.35 2,201.67 2,153.60 302.13 3,131.48 3,190.97 366.55 7,200.04 4,136.70 3,272.30 50,495.18 13,605.69 15,290.22 26,455.44 15,108.47 28,404.95 17,616.48 17,260.21 9,819.63 18,567.43 $174,560.38 $102,422.41 $561,681.01 $*83.133.67 $J60,677.14 $ 74,812.98 $ 55,312.72 $$40,676.04 $$74,378.14 and U n d i v i d e d Profits $321,958.9Z 76,228-40 398,187.32 $632,195.26 122,083.26 754,278.52 $242,550.38 44,372.67 286,923.05 $537,898.58 104,075.80 641,974.38 $235,382.28 67^643.50 303,025.78 $255,396.10 38,238.29 293,634.39 $158,712.55 42^837.00 201,549.55 $136,055.38 47,556.89 183,612.27 $204,129.77 54,739.77 258,869.54 44,474.22 107.860.27 152,334.49 97,311.78 97.161.77 194,473.55 0 0 0 0 0 0 0 150,000.00 150,000.00 0 0 0 0 0 0 0 200,000.00 200,000.00 100,000.00 0 100,000.00 455,244.27 381,141.99 0 836,386.26 130,910.98 76,228.40 107,860.27 0 3}M99.j>^ 387,909.45 510,416.30 0 998,325.75 352,329.24 122,033.26 97,161.77 1.84 572,076.11 202,529.49 221,863.38 0 424, 392 .87 139,323.64 44,372.67 0 0 184,196.31 458,299.33 520,373.95 60.00 978,733.29 364,652.66 191,191.46 0 555,844.12 108,347.84 38,233.29 0 0 146,586.13 253,050.75 214:, 185.04 0 472,235.79 90,323.79 42,337.00 0 0 133,160.79 144,817.16 237,784.46 0 332,601.62 70,777.67 47,556.89 200,000.00 0 318,334.56 186,976.83 273,693.84 0 460,675.67 281,442.05 104,075.80 0 0 335,517.85 175,883.49 338; 2 1 7 . 4 7 0 514,100.96 120,321.61 67,643.50 150,000.00 0 337,965.11 $593,220.44 $176,135.85 $409,257.99 $339,075.00 $ 64,267.08 $246,666.58 $521,336.61 February 1940 $426,249.64 ._ $240,195.56 159,269.32 54,739.77 0 0 214,009.09 169 Table 7.—Number and estimated cost of new family dwelling units provided in all cities of 10,000 population or over in the United States 1 [Source: Federal Home Loan Bank Board. Compiled from residential building permits reported to U. S. Department of Labor] [Amounts are shown in thousands of dollars] Total cost of units Number of family units provided Nov. 1939 Dec. 1939 Dec. 1938 1939 Year Monthly totals Year Monthly totals Type of dwelling 1938 Dec. 1939 Nov. 1939 Dec. 1938 11, 115 13, 439 8,924 161, 821 127, 052 $43, 955. 4 $53, 519. 7 $36, 178. 9 1-family dwellings 600 11,406 10, 340 1, 925. 9 2, 326. 6 1, 551. 4 964 806 2-family dwellings __ 2 230.8 172.3 203.8 906 790 47 57 47 Joint home and business 3-and-more family dwellings _ 13, 467 12, 981 6,020 115, 975 76, 435 40, 705. 9 40, 898. 9 20, 463. 1 1939 1938 $636, 070. 5 $501, 083. 0 28, 859. 2 26, 651. 4 3, 194. 4 3, 512. 3 376, 265. 3 248, 874. 0 25, 435 27, 441 15, 591289, 992 214, 733 86, 719. 0 96, 976. 0 58, 365. 7 1, 044, 707. 3 779, 802. 8 Total residential- 1 Estimate is based on reports from communities having approximately 95 percent of the population of all cities with population of 10,000 or over. 2 Includes 1- and 2-family dwellings with business property attached. Table 2.—Number and estimated cost of new family dwellins units provided in all cities of 10,000 population or over, in December 1939, by Federal Home Loan Bank District and by State [Source: Federal Home Loan Bank Board. Compiled from residential building permits reported to U. S. Department of Labor] [Amounts are shown in thousands of dollars] All 1- and 2-family dwellings All residential dwellings Federal Home Loan Bank District and State Number of family dwelling units Dec. 1939 UNITED STATES.- __ 25, 435 _ Dec. 1938 Estimated cost Dec. 1939 Dec. 1938 15, 591 $86, 791. 0 $58, 365. 7 Number of family dwelling units Dec. 1939 Dec. 1938 Estimated cost Dec. 1939 Dec. 1938 11,968 9,571 $46, 085. 1 $37, 902. 6 432 109 16 214 17 73 3 3, 103. 8 903.9 104.3 1, 505. 1 131.7 458.8 0.0 2, 177. 1 601. 7 54. 1 1, 159. 6 38.9 308.2 14.6 No. 1—Boston Connecticut Maine.. _ __ Massachusetts New Hampshire Rhode Island Vermont ____ _ _.. 1,213 348 27 696 39 103 0 500 121 16 270 17 73 3 5, 141. 1 1, 429. 0 104.3 3, 017. 3 131.7 458.8 0.0 2, 399. 8 609.2 54. 1 1, 374. 8 38.9 308.2 14.6 634 181 27 284 39 103 0 No. 2—New York New Jersey New York 4,016 1,262 2,754 5,654 189 5,465 15, 102. 4 4, 659. 8 10, 442. 6 20, 962. 4 995.8 19, 966. 6 1,100 271 829 1, 135 189 946 4, 727. 9 1, 195. 6 3, 532. 3 5, 050. 7 995.8 4, 054. 9 2,849 79 2,714 56 679 3 620 56 9, 845. 7 260.5 9, 366. 1 219. 1 3, 756. 4 26.0 3, 528. 1 202.3 626 1 573 52 462 3 413 46 3, 091. 4 10.5 2, 869. 8 211. 1 2, 579. 7 26.0 2, 372. 4 181.3 5,451 404 429 665 1,780 123 418 681 15, 957. 9 1, 040. 1 1, 654. 1 2, 172. 8 5, 774. 7 232.8 1, 754. 5 2, 243. 5 1,609 128 161 524 1,253 123 188 420 5, 194. 3 235.2 986.5 1, 783. 3 4, 285. 3 232.8 1, 074. 5 1, 478. 9 _ No. 3—Pittsburgh Delaware Pennsylvania _ West Virginia No. 4—Winston-Salem Alabama._ __ __ __ __ District of Columbia._ __ ._ Florida _ __ 170 __ Federal Home Loan Bank Review Table 2.—Number and estimated cost of new family dwelling units provided in all cities of 10,000 population or over, in December 1939, by Federal Home Loan Bank District and by State—Contd. [Amounts are shown in thousands of dollars] All 1- a n d 2-family dwellings All residential dwellings Federal H o m e Loan B a n k District a n d State N u m b e r of family dwelling units Dec. 1938 Dec. 1939 No. 4—Winston-Salem—Con. Georgia Maryland N o r t h Carolina South Carolina Virginia 1,989 866 429 465 204 110 123 167 66 92 N o . 5—Cincinnati 1,338 N u m b e r of family dwelling units E s t i m a t e d cost Dec. 1939 Dec. 1939 Dec. 1938 Dec. 1938 E s t i m a t e d cost Dec. 1939 Dec. 1938 589. 6 353. 9 239. 4 205. 8 702.2 $290.4 379.8 375.4 150.9 347.4 229 162 190 93 122 110 118 140 66 88 $453. 0 505.9 568.8 193. 1 468.5 $290. 4 373.8 342.6 150.9 341.4 512 4, 695. 0 2, 239. 6 627 414 2, 707. 1 1, 960. 1 270 603 465 36' 408 68 783.3 2, 646. 7 1, 265. 0 119. 1 1, 922. 8 197.7 56 442 129 36 310 68 192.0 2, 143. 5 371.6 119. 1 1, 643. 3 197.7 1,434 863 6, 413. 7 4, 208. 2 1, 262 863 5, 646. 2 4, 208. 2 238 1,196 131 732 886.5 5, 527. 2 504.6 3, 703. 6 238 1, 024 131 732 886.5 4, 759. 7 504. 6 3, 703. 6 645 387 3, 310. 4 2, 176. 4 624 379 3, 262. 9 2, 157. 1 Illinois Wisconsin 412 233 270 117 2, 298. 2 1, 012. 2 1, 669. 6 1 506.8 I 400 224 265 114 2, 263. 2 999.7 1, 658. 3 498. 8 N o . 8—Des Moines 583 398 2, 146. 7 1, 533. 6 | 552 389 2, 073. 5 1, 502. 6 89 146 145 0 j 166 241 138 13 25 316.0 652.8 526. 9 0.0 37.9 166 222 126 13 25 84 146 141 0 18 607.5 900.3 437. 3 49.0 79.4 302.0 652.8 509.9 0.0 37.9 __ 1 2,059 1, 207 5, 456. 0 3, 309. 6 1, 250 3, 471. 5 3, 235. 1 57 207 1 547 36 1, 212 75 135 77 34 886 138.6 614.2 1, 285. 8 114.3 3, 303. 1 129. 397. 129. 102. 2, 550. 465 150 74 64 177 410 103 84 42 181 1, 209. 0 1, 574. 1 524.4 318. 3 190.9 196. 4 240.4 1 136.4 618.4 557. 9 606 28 199 111 55 207 6 311 4 21 90 40 146 10 2, 047. 5 100.5 638. 1 407.0 149.6 ! 726.3 [ 26.0 4, 776 31 4, 729 ! 16 2, 890 56 2, 798 36 Kentucky. Ohio Tennessee N o . 6—Indianapolis _ Indiana Michigan __ _ N o . 7—Chicago__ _ Iowa _ __ Minnesota Missouri North Dakota South D a k o t a j No. 9—Little Rock Arkansas Louisiana Mississippi-_ New Mexico Texas N o . 10—Topeka Colorado Kansas Nebraska Oklahoma, _ _ _ _____ __ _ _ No. 11—Portland-._ Idaho. _ Montana.- _ _ _ Oregon Utah Washington Wyoming No. 12—Los Angeles Arizona California. Nevada. February 1940 _ _ _ _ _ _ __ _ i 18 $5, 2, 1, 1, 607.5 946.5 464.3 49.0 79.4 | 1,173 ; 57 203 134 36 820 75 1 135 77 34 2, 852 138. 6 605. 1 256. 1 114. 3 357. 4 129.4 397. 2 129. 6 102. 7 2, 476. 2 445 130 74 64 177 362 ! 1, 533. 1 483.4 71 1 190. 9 72 240. 4 42 618. 4 177 1, 119. 8 257.3 173.2 136. 4 552. 9 1,011.1 12.7 45.5 345. 0 111.7 460.4 35.8 402 24 37 89 39 207 6 311 4 21 90 40 146 10 1, 381. 2 89.0 71.3 346. 0 122.6 726. 3 26.0 1,011. 1 12. 7 45. 5 345.0 111. 7 460.4 35.8 9, 784. 9 15, 100. 5 107.4 ! 160.4 9, 481. 2 14, 925. 4 143. 3 67.7 2, 837 28 2, 793 16 2,398 40 2,341 17 9, 892. 2 101.4 9, 723. 1 67.7 8, 615. 123. 8, 404. 83. 4 2 6 7 7 1 8 9 1 3 I7I Table 3.—Cost of building the same standard house in representative cities in specific months l NOTE.—These figures are subject to correction [Source: Federal Home Loan Bank Board] Cubic-foot cost Total cost Federal Home Loan Bank District and city 1939 1940 Jan. No. 2—New York: Atlantic City, N. J_- ___ $0. 261 Camden, N. J .248 .238 Newark, N. J__ Albany, N. Y .234 .237 Buffalo, N. Y .243 Utica, N. Y .233 White Plains, N. Y 1939 Jan. 1940 Jan. Oct. July Apr. Jan. 1938 Jan. 1937 Jan. $0. 241 .233 .231 2.228 2.240 .239 2.231 $6, 262 5,942 5,705 5,619 5,683 5,826 5,600 $6, 272 5,829 5,654 5,602 2 5, 914 5,786 2 5, 538 $5, 867 5,574 5,492 2 5, 522 2 5, 607 5,706 2 5, 433 $5, 745 5,676 5,536 2 5, 585 2 5, 662 5,938 2 5, 501 $5, 790 5,581 5,539 2 5, 474 2 5, 763 5,726 2 5, 540 $5, 934 5,710 5,363 2 5, 910 2 5, 910 $6, 138 5,529 5,346 2 5, 520 2 5, 573 $5, 860 5,089 5,077 5, 218 2 5, 358 2 2 2 5, 639 5, 737 No. 6—Indianapolis: Evansville, Ind_ Indianapolis, Ind__ __ __ South Bend, Ind Detroit, Mich Grand Rapids, Mich .255 .233 .242 .242 .229 .244 .243 .226 .258 .246 6,116 5,582 5,804 5,816 5,490 6,095 5,725 5,848 5,935 5,672 5,897 5,956 5,553 6, 118 5,824 5,750 5,966 5,506 6,118 5,834 5,854 5,831 5,424 6, 181 5,900 5,769 5,711 5,796 6, 108 5,908 5,518 5,505 5,858 5,494 5,257 No. 8—Des Moines: Des Moines, Iowa Duluth, Minn St. Paul, Minn Kansas City, Mo. St. Louis, Mo Fargo, N. D_ Sioux Falls, S. D .264 .258 .272 .251 .257 .244 .254 .262 .249 .272 .242 .253 .236 .261 6,339 6, 198 6,525 6,022 6, 159 5,863 6,099 6,303 6,043 6,550 5,960 6,052 5,841 6,051 6,287 6,000 6,548 6, 116 5,959 5,605 6,016 6,275 5,995 6,569 5,959 6,053 5,655 6,210 6,279 5,975 6,529 5,808 6,078 5,658 6,272 6,264 6,248 5,840 6,207 5,957 6,339 6,139 5,697 5,973 5,444 6,224 5,732 5,837 .259 .290 .223 .251 .263 .263 .268 .253 .291 2.221 .245 . 261 .250 .269 6,220 6,956 5,345 6,035 6,315 6,313 6,435 5,934 7,004 5, 335 6,039 6,503 6,548 6,520 5,972 6,582 5,322 5,692 6,114 6,375 6,228 _ __ No. 11—Portland: Boise, Idaho _Great Falls, Mont Portland, Or eg __ _ Salt Lake City, Utah Seattle, Wash _ Spokane, Wash Casper, Wyo _ 1936 Jan. 2 6,112 6,887 5, 283 5,998 6,310 6,282 6,594 2 6,161 6,932 5, 132 6,016 6,255 6, 114 6,522 2 6, 161 7,035 5, 098 6,026 6,304 6,089 6,532 2 6,078 6,996 5, 304 5,880 6, 272 6,001 6,456 2 5, 482 5,453 5,556 5, 136 6,003 5,226 5,229 6,085 5,504 5,621 5, 637 6,491 5,238 5,691 5, 591 1 The house on which costs are reported is a detached 6-room home of 24,000 cubic feet volume. Living room, dining room, kitchen, and lavatory on first floor; three bedrooms and bath on second floor. Exterior is wide-board siding with brick and stucco as features of design. Best quality materials and workmanship are used throughout. The house is not completed ready for occupancy. It includes all fundamental structural elements, an attached 1-car garage, an unfinished cellar, an unfinished attic, a fireplace, essential heating, plumbing, and electric wiring equipment, and complete insulation. It does not include wall-paper nor other wall nor ceiling finish on interior plastered surface, Hghting fixtures, refrigerators, water heaters, ranges, screens, weather stripping, nor window shades. Reported costs include, in addition to material and labor costs, compensation insurance, an allowance for contractor's overhead and transportation of materials, plus 10 percent for builder's profit. Reported costs do not include the cost of land nor of surveying the land, the cost of planting the lot, nor of providing walks and driveways; they do not include architect's fee, cost of building permit, financing charges, nor sales costs. In figuring costs, current prices on the same building materials list are obtained every three months from the same dealers, and current wage rates are obtained from the same reputable contractors and operative builders. 2 Revised. 172 Federal Home Loan Bank Review Table 4.—Estimated volume of new lending activity of savings and loan associations, classified by District and type of association [Amounts are shown in thousands of dollars] N e w loans Percent Percent change, change, I New Federal H o m e Loan B a n k November loans, D e - December District a n d t y p e of t December N o v e m b e r 1938 to 1939 to cember association ! 1939 1939 December December 1938 1939 1939 United S t a t e s : T o t a l Federal State member, _ Nonmember $83, 34, 33, 15, 112 053 209 850 $86, 34, 34, 16, 076 785 671 620 -3.4 -2. 1 -4. 2 -4. 6 $63, 934 25, 019 26, 504 12,411 + + + + C u m u l a t i v e new loans (12 months) 1939 1938 Percent change 30. 0 36. 1 25. 3 27.7 $986, 400, 396, 190, 383 337 041 005 $797, 286, 333, 177, 996 899 470 627 + 23. 6 + 39.5 + 18.8 + 7.0 379 013 800 566 74, 20, 36, 17, 733 744 096 893 + 20.9 + 35. 0 + 21. 3 + 3.8 District N o . 1: T o t a l __. Federal State member. _ Nonmember 7,657 2,294 3,850 1,513 8,858 2, 785 4,633 1, 440 -13.6 -17.6 -16.9 + 5.1 5,600 1,580 2,887 1 1, 133 | + 36. 7 + 45. 2 +33. 5 90, 28, 43, 18, District N o . 2 : T o t a l _ Federal State member._ Nonmember 7,716 2,576 1,834 3,306 8,538 3,028 2, 128 3,382 -9. 6 -14.9 -13.8 -2.2 6,219 ! 2,128 1 1,699 2,392 +24. 1 +21. 1 + 7.9 I + 38.2 96, 36, 22, 36, 233 890 602 741 77, 22, 19, 34, 617 807 999 811 + 24. 0 + 61. 7 + 13.0 + 5.5 District N o. 3 : T o t a l Federal State member. _ Nonmember 6,075 2, 140 1,539 2,396 6,406 2, 164 1,506 2,736 -5.2 -1. 1 + 2.2 -12.4 5,043 1,329 1,392 2,322 + 20. 5 ! + 61. 0 + 10.6 + 3.2 79,284 22, 726 20, 597 35, 961 62, 12, 17, 31, 561 981 842 738 + + + + 26.7 75. 1 15.4 13.3 District N o . 4: T o t a l Federal State member. _ Nonmember 13, 071 5,472 5,413 2, 186 12, 459 5, 133 5,212 2, 114 4.9 6. 6 3.9 3.4 8,962 3,479 i 3,964 1,519 1 +45. 8 +57. 3 + 36. 6 +43.9 817 368 287 162 111, 39, 52, 19, 104 102 197 805 + + + + 24.9 46.7 13.6 11.9 District No. 5: T o t a l . Federal ._ State member. _ Nonmember 13, 101 4,654 6,386 2,061 14, 686 5,425 6,912 2,349 -10.8 -14.2 -7.6 -12.3 9,248 ! 3,698 ! 4,559 991 +41. 7 1 +25.9 + 40. 1 ! +108. 0 156,944 62, 054 75,059 19, 831 121, 47, 55, 18, 652 212 556 884 + 29. 0 + 31.4 + 35. 1 + 5.0 District No. 6: T o t a l ... Federal. _ . State member. _ Nonmember 4, 192 2, 123 1,852 217 4,407 2, 176 1,967 264 -4.9 -2.4 -5.8 -17.8 3, 195 1,389 1,430 376 + 31.2 + 52.8 + 29.5 -42.3 48, 310 22, 734 22, 258 3,318 35, 617 16, 520 16, 021 3,076 + 35.6 + 37.6 + 38.9 + 7.9 District N o . 7: T o t a l Federal State member. _ Nonmember 7,908 3,071 3,448 1,389 8, 426 3,057 4,066 1,303 -6. 1 + 0.5 -15.2 + 6. 6 6, 175 2,270 2,420 1,485 + 28. 1 + 35.3 + 42.5 -6.5 98, 382 34, 286 43, 685 20,411 78, 26, 33, 18, 865 519 709 637 + 24.7 +29. 3 + 29.6 + 9.5 District N o . 8: T o t a l Federal. _ _ _ State m e m b e r . _ Nonmember 5,862 2,826 2,055 981 5, 173 2,487 1,585 1, 101 + 13.3 + 13.6 + 29. 7 -10.9 3,726 1,860 1, 198 668 + + + + 61, 29, 18, 13, 776 301 841 634 48, 239 20, 251 16, 102 11,886 + 28. 1 +44.7 + 17.0 + 14.7 District No. 9: T o t a l Federal State member. _ Nonmember 4,260 1,664 2,431 165 4,215 1,815 2,286 114 + 1. 1 -8.3 + 6. 3 + 44. 7 4, 131 1,555 2,361 215 + 3. 1 + 7.0 + 3.0 -23.3 56, 917 23, 029 31, 796 2,092 48, 699 18, 778 27, 591 2,330 + 16. 9 + 22.6 + 15.2 -10.2 District N o . 10: T o t a l Federal State member. _ Nonmember 4, 126 2,001 962 1, 163 3,733 1, 843 843 1, 047 + 10.5 + 8.6 + 14. 1 + 11.1 3,759 1,793 1,016 950 + 9.8 + 11.6 -5.3 + 22.4 47, 23, 12, 12, 505 340 162 003 41, 18, 12, 10, 148 116 290 742 + 15.4 + 28.8 -1.0 + 11.7 District N o . 1 1 : T o t a l Federal State m e m b e r . . Nonmember 2,507 1,531 786 190 3, 089 ! 1, 666 1 1, 103 320 -18.8 -8. 1 -28.7 -40.6 2, 191 1,204 730 257 + 14.4 + 27.2 + 7.7 -26. 1 34, 673 20, 550 12, 028 2,095 28, 15, 9, 2, 007 426 608 973 i + 23. 8 + 33.2 + 25.2 -29.5 District No. 12: T o t a l _ F e d e r a l . _ ____ State member. _ Nonmember J 6,637 3, 701 j 2, 653 I 283 i 6, 086 3, 206 2,430 450 1 + 9. 1 + 15.4 + 9.2 -37. 1 1 5,685 2,734 2,848 103 + 16. 7 +35.4 -6. 8 + 174.8 77, 40, 33, 3, 69, 754 i 28,443 36, 459 4, 852 + 10. 6 + 40.8 -6.9 -34. 2 February 1940 + + + + +33. 4 57.3 51.9 71. 5 46.9 138, 57, 59, 22, 163 046 926 191 173 Table 5.—Estimated volume of new loans by all savings and loan associations, classified according to purpose and type of association 1 [Amounts are shown in thousands of dollars] Type of association Purpose of loans Mortgage loans on homes Period Construc- Home pur- Refinancchase tion ing 1937 December 1938 December 1939 Januarv February March April _ _ May June July August-September October November December _ | _ Reconditioning $234, 102 $326, 629 $180, 804 $62, 143 15, 281 20, 167 12, 677 4, 175 7, 796 | 220, 458 265, 485 160, 167 58, 623 93, 263 : 19, 152 20, 826 12, 805 4,025 301, 039 339, 629 182, 025 59, 463 16,099 16, 027 21, 254 23, 727 26, 646 29, 919 26, 865 29, 863 27,854 29, 255 26, 607 26, 923 17, 19, 24, 29, 31, 32, 29, 32, 31, 33, 30, 27, 503 118 705 903 289 228 638 282 367 383 434 779 11,749 12, 551 14, 871 15, 384 15, 687 17, 123 15, 353 17, 005 16, 021 15, 835 15, 445 15, 001 Total loans Loans for j all other purposes 3,389 3,593 4,211 4,974 6,069 5,802 5, 133 5,909 5,544 1 5,784 i 4,720 1 4, 335 $92,901 Federals State members $307,278 $379, 286 $210, 015 20,038 24, 522 15, 536 797, 996 1 286,899 333, 470 177, 627 25,019 26, 504 12, 411 986, 383 1 400,337 396, 041 190, 005 $896, 579 60,096 j 7, 126 1 104, 227 63,934 J 6, 827 7,020 8,337 9,437 9,432 9, 082 8, 183 9, 979 8,946 9,040 8,870 9, 074 55, 58, 73, 83, 89, 94, 85, 95, 89, 93, 86, 83, 567 309 378 425 123 154 172 038 732 297 076 112 20, 22, 29, 33, 36, 39, 34, 40, 37, 37, 34, 34, 894 298 811 400 358 094 055 645 090 854 785 053 23, 24, 30, 32, 35, 36, 34, 37, 36, 37, 34, 33, Nonmembers 071 191 124 562 426 465 146 340 989 847 [ 671 209 1 11, 602 11, 820 13, 443 17, 463 17, 339 18, 595 16, 971 17, 053 15, 653 17,596 16, 620 15,850 Revised figures for 1936, 1937, and for the first 10 months of 1938 appear on p. 93 of the December 1938 issue. Table 6.—Index of wholesale price of building materials in the United States [1926=100] [Source: U. S. Department of Labor] All building materials Brick and tile Cement l 92.5 92.0 89.7 93.8 80.2 79.6 114.9 96. 9 1938: December 89.4 91.5 90.6 90.9 81.0 78.7 107.3 89. 7 1939: January, __ __ February _ _ __ March _ _ __. April __ May _ _ _ June _ _- July August _ September. _ October November. _ December 89.5 89.6 89.8 89.6 89.5 89.5 89.7 89.6 90.9 92.8 93.0 93.0 92.4 92.4 92.5 93.0 91.7 91. 1 90. 6 90.5 91.0 91.5 91.6 91.6 90.6 91.2 91.5 91.5 91.5 91.5 91.5 91.3 91.3 91.3 91.3 91.3 91.7 92.6 92. 1 91.5 91.2 90.7 91.8 91.8 93.7 98.0 98.3 97.8 81.0 80.5 81.5 81.3 81.6 82.4 82.2 82. 1 84.7 85.7 84.9 85.5 78.7 79.2 79.3 79.3 79.3 79.3 79.3 79.3 79.3 79.3 79.3 79.3 107.3 107.3 107.3 107.3 107.3 107.3 107. 3 107.3 107.3 107.3 107.3 107.3 89. 6 89.3 89.8 89.7 89. 6 89.5 89.6 89. 5 90.3 91.9 92.9 92. 7 0.0% + 4. 0% 0.0% + 0. 1% 0.0% + 0. 8% - 0 . 5% + 7.6% + 0. 7% + 5. 6% 0.0% + 0. 8% Period 1937: December Change: Dec. 1939-Nov. 1939 Dec. 1939-Dec. 1938 __ Lumber Paint and paint materials Plumbing and heat- Structural steel ing 0.0% 0.0% Other - 0 . 2% + 3.3% 1 Based on delivered prices at 48 cities and introduced into the calculation of the Bureau's general indexes of wholesale prices beginning with March 1939. 174 Federal Home Loan Bank Review Table 7.—Monthly operations of 1,321 identical Federal and 695 identical insured State-chartered savings and loan associations reporting during November and December 1939 [Amounts are shown in thousands of dollars] 1,321 Federals Type of operation December November 695 insured State members Change November to December December November Change November to December 1, 344, 824 1, 322, 657 Percent + 1.7 912, 119 904, 914 Percent + 0.8 $1, 051, 205. 7 Paid on private subscriptions 197, 468. 7 Treasury and HOLC subscriptions. _ $1, 025, 829. 1 197, 468. 7 + 2.5 0.0 $655, 484. 5 1 37, 685. 7 $645, 302. 8 1 37, 635. 7 + 1.6 +0.1 1, 248, 674. 4 1, 223, 297. 8 + 2.1 693, 170. 2 682, 938. 5 + 1.5 Private share investments during month._ Repurchases during month. 30, 318. 5 8, 735. 1 25, 687. 4 10, 336. 0 + 18.0 -15.5 15, 250. 7 7, 659. 0 12, 052. 0 8, 040. 0 + 26.5 -4. 7 Mortgage loans made during month: a. New construction. _ _ b. Purchase of homes. c. Refinancing _ _ _ d. Reconditioning. _ __ e. Other purposes. _ 12, 709. 6 9, 131. 1 5, 918. 7 1, 427. 8 2, 623. 3 12, 619. 6 9, 894. 9 5, 881. 9 1, 665. 4 2, 263. 4 + 0.7 -7.7 + 0. 6 -14.3 + 15.9 4, 607. 0 4, 514. 7 2, 851. 8 714.6 1, 713. 5 4, 588. 4 4, 731. 4 2, 470. 8 697.0 1, 567. 5 + 0.4 -4.6 + 15. 4 + 2.5 + 9. 3 31, 810. 5 1, 197, 342. 6 32, 325. 2 1, 183, 807. 9 -1. 6 + 1.1 14, 401. 6 625, 519. 3 14, 055. 1 621, 607. 9 + 2. 5 + 0.6 97, 431. 0 7, 211. 2 87, 894. 7 3, 715. 2 + 10.8 + 94. 1 34, 169. 9 3, 707. 5 32, 676. 4 3, 325. 4 + 4.6 + 11.5 104, 642. 2 91, 609. 9 + 14.2 37, 877. 4 36, 001. 8 + 5.2 1, 489, 798. 0 1, 459, 426. 1 + 2.1 863,785.0 855, 058. 3 + 1.0 Share liability at end of month: Private share accounts (number) Total. _ Total. __- _ _ __ . Mortgage loans outstanding end of month. Borrowed money as of end of month: From Federal Home Loan Banks From other sources . . _ Total Total assets, end of month 1 _ Includes only HOLC subscriptions. Table 8.—Institutions insured by the Federal Savings and Loan Insurance Corporation * [Amounts are shown in thousands of dollars] Cumulative number at specified dates Number of private investors in repurchasable shares 2 Assets Private repurchasable capital Dec. 31, Dec, 31, Dec. 31, Dec. 31, Nov. 30, Dec. 31, 1938 1939 1935 1936 1937 1939 Dec. 31, 1939 Dec. 31, 1939 Dec. 31, 1939 Type of association State-chartered associationsConverted F. S. and L. A __ New F. S. and L. A Total 136 406 572 382 560 634 566 672 641 1, 114 1,576 1,879 3 737 723 637 2,097 4 799 756 634 2, 189 973, 800 $932, 644 799 763 1, 029, 500 1, 127, 399 634 382, 700 446, 915 $702, 707 833, 643 274, 838 2, 196 2, 386, 000 2, 506, 958 1,811, 188 5 1 Beginning Dec. 31, 1936, figures on number of associations insured include only those associations which have remitted premiums. Earlier figures include all associations approved by the Board for insurance. 2 This series revised to agree with schedules submitted each month by insured institutions. Private investors in repurchasable 3shares in insured State-chartered members numbered 931,600 in June 1939; no other association type revised. In addition, 6 Federals with assets of $1,505,000 had been approved for conversion but had not been insured as of Dec. 31. 4 In addition, 11 Federals with assets of $3,328,000 had been approved for conversion but had not been insured as of Nov. 30. 5 In addition, 12 Federals with assets of $3,667,000 had been approved for conversion but had not been insured as of Dec. 31. February 1940 175 Table 10.—Government investments in savings and loan associations l Table 9.—Lending operations of the Federal Home Loan Banks [Amounts are shown in thousands of dollars] [Thousands of dollars] December 1939 Federal Home Loan Bank Boston New York Pittsburgh Winston-Salem Cincinnati Indianapolis.. _ _ Chicago Des Moines Little Rock Topeka __ Portland Los Angeles. __ __ Total Jan.-Dec. December Jan.-Dec. December Jan.-Dec. 1939 1938 1938 1937 1937 Advances $979 1,834 705 3,935 1,144 1,179 1,661 1,351 1,109 824 1,043 2,960 18, 724 November 1939 Treasury Advances outstanding at the end ReReAd- payof Depayments vances ments cember $187 900 728 916 565 282 1,228 546 231 245 119 286 $394 $541 738 1,015 596 701 872 1, 327 687 465 188 138 664 339 391 72 338 306 48 165 120 161: 791 429 $7, 410 19, 820 16, 259 19, 820 18, 339 10, 944 25, 882 17, 619 9, 844 10, 947 6, 274 18, 155 6,233 5,827 5, 659 181,313 94, 781 112, 310 14, 996 5,841 81, 958 83, 211 17, 591 4,832 123, 251 68, 557 198,842 200,095 Table 11.—Summary of operations of H O L C Reconditioning Division through Dec. 3 1 , 1939 Home Owners' Loan Corporation Type of operation State members Federals Federals 2 Oct. 1935-Dec. 1939: Applications: 5,561 4, 587 974 1, 862 Number Amount $50, 401 $199, 759 $63, 305 $263, 634 Investments: 4, 174 731 Number. _ 4,905 1, 831 Amount _ $49, 300 !$174, 913 $45, 013 $219, 926 $9, 621 $5, 815 $2, 658 $8, 473 Repurchases Net outstanding in$39, 679 $169, 098 $42, 355 $211,453 vestments December 1939: Applications: Number Amount __ __ Investments: Number. _ _ _ Amount. _ Repurchases 0 0 2 $109 13 $445 15 $554 0 3 $50 0 3 $50 0 1 Refers to number of separate investments, not to number of 2associations in which investments are made. Investments in Federals by the Treasury were made between December 1933 and November 1935. Table 12.—Properties acquired by H O L C through foreclosure and voluntary deed * 1 Period Dec. 1, June 1, 1934 1939 Type of operation through through Nov. 30, 1939 Dec. 31, 1939 Cases received 2 1, 113, 239 6,382 Cumulative through Dec. 31, 1939 1, 119, 621 Contracts awarded: 722, 970 718, 234 4,736 Number Amount $144, 452, 776 $1, 107, 116 $145, 559, 892 C o n t r a c t s completed: 712, 618 Number 717, 868 5,250 Amount $141, 767, 307 $1, 486, 374 $143, 253, 681 1 All figures are subject to adjustment. Figures do not include 52,269 reconditioning jobs, amounting to approximately $6,800,000, completed by the Corporation prior to the organization of the Reconditioning Division on June 1, 1934. 2 Includes all property management, advance, insurance, and loan cases referred to the Reconditioning Division which were not withdrawn prior to preliminary inspection or cost estimate prior to Apr. 15, 1937. 176 Total Prior to 1935 1935: Jan. 1 through June 30_ July 1 through Dec. 31 _ 1936: Jan. 1 through June 30. July 1 through Dec. 31 _ 1937: Jan. 1 through June 30. July 1 through Dec. 31 _ 1938: Jan. 1 through June 30_ July 1 through Dec. 3 1 . 1939: Jan. 1 through June 30 _ July August September October November December Grand total to Dec. 31, 1939- Number 9 114 983 4,449 15, 875 23, 225 26, 981 28, 386 22, 533 19, 509 2,773 2,857 2,590 2,445 2,356 1,800 156, 885 1 Does not include 9,771 properties bought in by HOLC at foreclosure sale but awaiting expiration of the redemption period before title in absolute fee can be obtained. In addition to the 156,885 completed cases, 881 properties were sold at foreclosure sale to parties other than the HOLC and 22,903 cases have been withdrawn due to payment of delinquencies by borrowers after foreclosure proceedings were authorized. Federal Home Loan Bank Review Table 73.—Summary of estimated nonfarm mortgage recordings,1 $20,000 and under, during December 1939 (Amoi n t s ! F e d e r a l Home L o a n B a n k District and S t a t e & loan I n s t ranee comp a n i e s associ ations Number Amount Number Amount 3 38,018 $95,721 UNITED STATES No s hown a re i n t housan d s of Banks and Mut u a l Indiv iduals t r u s t companies s a v i n g 3 banks Number Amount Number Amount Number Amount J o i i a r s) Amount Other mortgagees Number Amount To t a l Number Amount 1 5,691 $28,990 21,133 $80,971 3,692 $13,550 27,031 $19,577 11,370 $17,529 113,211 $316,511 10,128 289 1,551 981 3,738 1,858 6,213 1,852 3,862 1,121 3,177 9,335 29,002 251 103 2, 159 171 200 50 853 907 6,981 550 700 127 69 33 155 15 II 6 111 165 807 85 51 35 291 163 288 11 95 95 1,231 111 1,269 183 365 279 1,657 553 3,181 321 368 110 392 305 850 88 857 100 1,953 205 236 211 1,161 305 1,185 165 29 S 61 1,735 1,330 1,876 160 606 328 6,180 2,751 15,680 1,519 2,016 856 2,659 8,117 183 2,712 2,190 8,555 128 302 881 89 109 15 1,386 New York 828 1,831 2,187 5,960 206 277 957 1,083 1,529. 1,233 1,027 1,538 103 1,283 3—Pittsburgh 2,513 6,792 295 1,559 1,807 6,559 Del aware Pennsylvania West V i r g i n i a 60 1,975 607 160 5,012 1,620 33 235 11 177 1,298 81 58 1,180 269 277 5,577 705 No. 1—Winston-Salem 6,155 13,139 832 3,931 2,166 6,713 198 113 621 700 851 2,037 305 997 270 2,082 1,837 1,219 2,06S 2,988 153 2,191 89 52 279 207 21 18 39 97 375 339 1,265 881 127 323 171 119 192 90 338 111 316 371 232 513 538 539 991 679 980 753 550 1,673 No, 5—Cincinnati 5,293 11,266 671 3,660 2,713 8,891 Kentucky Ohio Tennessee 912 3,910 111 2,005 11,511 717 165 379 127 761 2,118 151 123 1,686 601 1,561 5,819 1,511 6—-lndianapolis 2,513 5,191 679 3,282 2,795 Indiana Michigan 1,881 759 3,503 1,991 276 103 1,210 2,012 913 1,853 I 3,231 Connecticut Maine Massachusetts [ __ Rhod-e Island No. 2~New York New Jersey No. Al abama D i s t r i c t of Columbia Florida Georgia Maryland South Carolina Virginia No No. 7—Chicago Illinois Wi scons in No 8—Des Moines . Iowa North Dakota South Dakota No 9 — L i t t l e Rock Loui si ana No !0~Topeka Colorado 7,336 6,189 11,858 39,391 152 5,390 1,301 2,007 3,111 1,222 888 911 2,718 3,711 1,286 7,572 13,911 25,180 177 610 1,501 3,200. 1,089 3,706 7,612 22,155 27 116 1 99 538 3 108 1,235 258 205 2,571 121 23 891 172 119 3,375 212 309 5,965 1,337 1,037 18,371 3,018 29 127 1,213 6,138 1,988 5,163 15,713 35,511 112 211 915 135 278 570 583 718 665 652 1,811 517 518 370 592 1, 183 235 228 583 117 133 212 116 271 669 1,059 1,570 236 355 338 287 619 1,155 1,051 2,770 1,903 1,528 3,268 1,305 2,629 2,517 1,571 7,505 3,562 1,273 1,782 2,053 6,118 no 29 127 50 219 1,683 2,821 1,122 1,120 11,812 33,980 60 219 252 1,153 278 276 2,121 121 51 695 653 161 2,126 1,530 1,816 7,913 2,083 1,767 21,580 1,533^ 8,190 15 18 1,010 1,923 857 3,172 8,030 22,379 2,511 5,919 15 18 372 668 551 1,369 321 536 857 2,315 3,811 1,219 8,713 13,665 10 27 1,578 1,056 1,318 6,705 7,716 26,950 | 2,710 1,315 1,121 191 6, 111 561 5,529 2,117 21,361 5,589 16,613 3,005 8,803 373 2,135 1,162 5,221 2,307 698 7,037 1,765 323 50 1,877 258 950 512 3,565 1,658 10 27 925 553 2,192 5,576 168 2,029 1,562 3,108 39 122 2,250 3,398 838 2,080 7,519 659 887 721 122 90 1,330 2,212 1,582 272 150 98 251 102 10 1 132 1,077 169 12 9 193 523 125 13 78 1,079 1,271 831 95 128 397 829 911 12 68 629 1,311 1,290 63 72 210 170 101 21 3 168 520 1,019 10 3 1,897 2,702 2,569 238 213 2,951 7,153 705 3,531 888 2,576 1,858 3,215 1,318 1,191 7,750 20,696 385 1,082 197 51 1,222 760 2,920 115 138 2,920 11 115 21 3 521 251 572 101 1 2,597 I2S 158 107 53 131 285 371 311 181 1,121 160 321 229 135 1,009 150 635 100 202 1,857 110 261 89 20 838 316 617 251 72 2,905 853 1,951 615 275 1,021 l,76S 5,119 1,181 600 11,700 2,105 1,593 235 952 832 2,007 1,111 2,157 811 2,171 5,757 12,293 3IS 586 658 815 721 975 1,266 1,731 20 51 70 91 72 191 275 121 162 291 81 295 117 572 290 698 171 288 180 502 833 370 381 573 237 137 71 39S 990 318 155 981 1,208 1,356 1,063 2,132 3,063 2,159 2,367 1,101 1,506 1,251 2,115 792 2,383 5,163 11,522 227 363 627 391 29 615 117 1,060 158 3,659 512 159 1,215 556 2,186 205 11,785 1,211 1,018 2,611 1,230 1,887 199 9,125 151 22 183 66 318 19 921 15,718 | 185 8,508 133 29 892 3 27 3,610 2 162 11,231 90 1,018 11,137 293 39 122 3,011 230 810 l,2S6 2,891 89 151 318 156 692 57 156 350 702 357 1,320 116 22 33 67 16 92 80 97 233 50 350 108 83 181 215 631 18 377 179 387 596 1,223 129 12—Los Angeles 3,032 8,222 131 2,825 5,170 21,905 169 157 119 103 352 51 1,925 Arizona Cal i f o r n i a 61 2,965 6 165 8,018 9 5 128 1 23 2,795 7 101 318 5,331 21,116 32 112 283 1,515 18 No. I I — P o r t l a n d Idaho. Oregon Utah No _ 5,812 107 3,311 301 121 510 53 '80 23 1,829 118 312 17 80 101 232 no 702 86 3,938 6,576 5,221 513 362 1 per capita (nonfarm) $3.13 1.07 1.39 3.80 3.77 3.00 3.17 3.56 2.15 5.11 2.09 2.38 1 93 9.60 6.31 2.39 3.07 3.05 2.50 1.18 3.31 1.36 3.31 3 59 3.37 3.22 2 72 2.61 3.91 2 08 1.81 1 20 2.10 1.05 2.29 2.27 3.37 1.07 2.09 2.99 3.21 1.85 3.06 3.62 3.11 3.88 3.27 3.02 8.79 3.93 1 Based upon county reports submitted through the cooperation of savings and loan associations, the U. S. Savings and Loan League, the Mortgage Bankers Association, and the Amer ican Title Association. February 1940 177 Tcrfe/e 14.—Estimated volume of nonfarm mortgages recorded, by type of mortgagee [Amounts are shown in thousands of dollars] Savings and loan associations Insurance companies Banks and trust companies Mutual savings banks Individuals Other mortgagees All mortgagees Period Number: 1939: January__._ February March April May June July August— September. . October. _ _ November. _ December Total Percent 27, 283 27, 666 36, 008 38, 167 43, 648 43, 655 41, 048 44, 224 41, 946 42, 091 38, 671 38, 018 30. 1 32.5 32.8 34.5 34.8 34. 1 34. 6 35.3 35.6 34. 6 33.3 33.6 Amount: 1939: January $66, 114 February 68,840 March | 92,337 April 94,857 May 109, 652 June 113,479 July 105, 890 August. _ 112,516 September. _ 104, 548 October. _ __ 105, 229 November. . 98, 889 December. __ 95, 724 Total 4,866 3,688 5,547 5,240 6,009 6, 335 5,946 6,014 5,352 5,636 5,443 5,694 27. 1 $22, 704 30.3 19,278 29.5 ! 28,316 31.2 26, 839 31.4 29, 922 31.5 30,017 32. 1 29, 777 32.6 30, 796 33.0 28, 086 31.6 28, 503 30.4 28, 286 30.2 28, 990 Total Percent 20, 003 19, 138 23, 764 22, 768 25, 658 26, 779 22, 860 24, 750 23, 627 25, 589 24, 594 24, 433 22. 1 22.5 21. 6 20.6 20. 4 20. 9 19.3 19.7 20.0 21. 0 21.2 21.6 2, 143 2,059 2,895 2,978 3,825 3,524 3,909 3,908 3,924 3,718 3,994 3,692 9.3 $62, 697 8.5 57, 843 9. 1 79. 920 8.8 73, 320 8.6 85, 417 8.3 89, 563 9.0 74, 960 8.9 80, 049 8.9 74, 577 8.6 84, 678 8.7 80, 484 9.2 80, 971 25.7 25.5 25. 6 24. 1 24.4 24.8 22.7 23.2 23.5 25.4 24.7 25.6 $7, 525 7,031 9,822 10, 108 12, 195 12, 048 13, 679 13, 844 13, 470 12, 966 14, 571 13, 550 Percent 5.4 4.3 5. 1 4.7 4.8 4.9 5.0 4.8 4.5 4.6 4.7 5.0 Directory of Member Institutions I. INSTITUTIONS ADMITTED TO MEMBERSHIP IN THE FEDERAL HOME LOAN BANK SYSTEM BETWEEN DEC. 16, 1939, AND JAN. 15, 1940 DISTKICT NO. 2 N E W JERSEY: Harrison: Peoples Security Building & Loan Association, 315 Harrison Avenue. Newark: Midtown Building & Loan Association of Newark, New Jersey, 1033 Broad Street. DISTKICT NO. 3 PENNSYLVANIA: Philadelphia: The Alleghany Avenue Building & Loan Association, 1847 Alleghany Avenue. D I S T R I C T NO. 5 OHIO: Celina: Mercer County Building & Loan Association Company, 130 West Market Street. Kingston: Kingston Building & Loan Company, 412-13 Main Street. Waverly: Waverly Building & Loan Company, 118 North Market Street. D I S T R I C T NO. 6 MICHIGAN: Detroit: Society for Savings, 1121 National Bank Building. D I S T R I C T NO. 12 CALIFORNIA: Riverside: Riverside County Mutual Building & Loan Association, 3634 Seventh Street. 178 Total Percent 2.4 2.4 2.6 2. 7 3.0 2.8 3.3 3. 1 3.3 3.0 3.5 3.2 Total Percent Total Percent Combined total Percent 24, 974 22, 903 28, 729 28, 441 30, 904 30, 710 30, 209 31, 174 29, 055 29, 577 27, 955 27, 034 27.6 26.9 26. 1 25.7 24. 6 24.0 25.4 24.9 24. 7 24.3 24. 1 23.9 11,286 9,706 12, 930 12, 976 15, 560 17, 002 14, 693 15, 339 14, 009 15, 195 15, 336 14, 370 12.4 11.4 11.8 11.8 12.4 13.3 12.4 12.2 11.9 12,5 13. 2 12. 7 90, 555 85, 160 109, 873 110, 570 125, 604 128, 005 118, 665 125, 409 117,913 121, 806 115,993 113, 241 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 14.7 $244, 015 13.9 226, 991 14.4 312, 465 14.3 304, 351 15. 1 349, 454 15.7 360, 868 14.4 329, 983 14.3 345, 580 13. 7 317, 156 14.3 333, 079 15. 6 325, 112 15.0 316, 541 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 3. 1 $49, 032 3. 1 42, 528 3. 1 57, 036 3.3 55, 667 3.5 59, 453 3.3 58, 967 4.2 58, 056 4.0 58, 826 4.2 53, 018 3.9 53, 909 4.5 52, 183 4.3 49, 677 20. 1 $35, 943 18.7 31, 471 18.3 45, 034 18.3 43, 560 17.0 52, 815 16.4 56, 794 17.6 47, 621 17.0 49, 549 16.7 43, 457 16.2 47, 794 16. 1 50, 699 15.7 47, 629 WITHDRAWALS FROM THE FEDERAL HOME LOAN BANK SYSTEM BETWEEN D E C . 16, 1939, AND JAN. 15, 1940 ILLINOIS: Chicago: Building & Loan Association Douglas Park, 2014 South California Avenue (voluntary withdrawal). INDIANA: Terre Haute: Phoenix Building, Loan & Savings Association, 17 South Sixth Street (merger with, and under name of, "Wabash Federal Savings & Loan Association", Terre Haute, Indiana). MARYLAND: Baltimore: Alliance Building & Loan Association of Baltimore City, 1024 West Baltimore Street (voluntary withdrawal). Franklin Square Permanent Building & Loan Association, Incorporated, 1841 West Baltimore Street (voluntary withdrawal). The Greek-American Building & Savings Association of Baltimore City, Incorporated, 100 South Howard Street (voluntary withdrawal). MISSOURI: Lee's Summit: Lee's Summit Building & Loan Association, 18 East Third Street (dissolution—sale of all assets and transfer of 15 shares of Bank stock to Community Federal Savings & Loan Association of Independence, Independence, Missouri). Kansas City: Santa Fe Savings & Loan Association, 916 Baltimore Avenue (voluntary withdrawal). St. Louis: Paramount Savings & Loan Association, 3525 North Broadway (voluntary withdrawal). N E W JERSEY: Investing Building & Loan Association, 76 West Main Street (merger with, and under name of, "The Bogota Building & Loan Association", Bogota, New Jersey), Elizabeth: The Citizens Building & Loan Association of Elizabeth, N . J., 1443 Irving Street (voluntary withdrawal). Federal Home Loan Bank Review N E W JERSEY (Continued): Kearny: West Hudson Building & Loan Association, 541 Kearney Avenue (merger with The Kearney Building & Loan Association of Arlington, N. J., under name of "Kearny Building & Loan Association", Arlington, New Jersey). West Orange: Edison Building & Loan Association, Main Street & Lakeside Avenue (merger with Llewellyn Building & Loan Association of West Orange, under name of "Llewellyn-Edison Building & Loan Association of West Orange", West Orange, New Jersey). Wildwood: Holly Beach City Building & Loan Association, 4712 Pacific Avenue (merger with, and under name of, "City of Wildwood Building & Loan Association", Wildwood, New Jersey). III. INSTITUTIONS INSURED BY THE FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION BETWEEN DEC. 16, 1939, AND JAN. 15, 1940 DISTRICT NO. 1 CONNECTICUT: Windsor Locks: The Windsor Locks Building & Loan Association, Incorporated, 138 Main Street. D I S T R I C T NO. 2 N E W JERSEY: Clifton: East Clifton Building & Loan Association, 226 Dayton Avenue. Hackensack: The Hackensack Mutual Building & Loan Association, 242 State Street. The New Barbadoes Mutual Building & Loan Association of Hackensack, New Jersey, 725 Main Street. Newark: Midtown Building & Loan Association of Newark, New Jersey, 1033 Broad Street. PENNSYLVANIA: Mt. Oliver: (Pittsburgh): The Relief Building & Loan Association, 120 Brownsville Road (voluntary withdrawal) SOUTH DAKOTA: Rapid City: Black Hills Building & Loan Association, 802 St. Joseph Street (voluntary withdrawal). WISCONSIN: Milwaukee: Atlas Mutual Building & Loan Association, 4700 West North Avenue (voluntary withdrawal). II. FEDERAL SAVINGS AND LOAN ASSOCIATIONS CHARTERED BETWEEN DEC. 16, 1939, AND JAN. 15, 1940 DISTRICT NO. 3 DISTRICT NO. 3 PENNSYLVANIA: Phoenixville: Phoenixville Federal Savings & Loan Association, 27 South Main Street. DISTRICT NO. 4 ALABAMA: Robertsdale: Baldwin County Building & Loan Association. NORTH CAROLINA: Conover: First Federal Savings & Loan Association of Conover. PENNSYLVANIA: Philadelphia: Fox Chase Federal Savings & Loan Association, 7940 Oxford Avenue (converted from Fox Chase Building Association Number Two). Hestonville Federal Savings & Loan Association, 15th & Locust Streets (converted from Hestonville Building & Loan Association). D I S T R I C T NO. 5 OHIO: Wapakoneta: The Wapakoneta Building & Savings Company, 22 East Auglaise Street. DISTRICT NO. 6 MICHIGAN: Detroit: Peoples Federal Savings & Loan Association of Detroit, 1121 National Bank Building (converted from Society for Savings). DISTRICT NO. 6 INDIANA: Monticello: The People's Building Association of Monticello, Indiana, 105^6 East Broadway. DISTRICT NO. 7 DISTRICT NO. 7 WISCONSIN: Racine: West Lawn Federal Savings & Loan Association of Racine, 3015 Washington Avenue (converted from West Lawn Building & Loan Association). DISTRICT NO. 9 TEXAS: Tyler: First Federal Savings & Loan Association of Tyler, 206 West Ferguson Street (converted from Texas Building & Loan Association of Tyler, Texas). DISTRICT NO. 10 ILLINOIS: Chicago: Grand Crossing Savings & Building Loan Association, 7826 Cottage Grove Avenue. DISTRICT NO. 12 CALIFORNIA: Riverside: Riverside County Mutual Building & Loan Association, 3634 Seventh Street. NEVADA: Reno: Union Federal Savings & Loan Association, 150 North Virginia Avenue. KANSAS: Wichita: Citizens Federal Savings & Loan Association of WTichita, 906 West Douglas Avenue (converted from Citizens Building & Loan Association) . Roof Over America" CANCELATIONS OF FEDERAL SAVINGS AND LOAN ASSOCIATION CHARTERS BETWEEN DEC. 16, 1939, AND JAN. 15, 1940 CALIFORNIA: - Alhambra Alhambra Federal Savings & Loan Association, 200 West Main Street (merger with First Federal Savings & Loan Association of Alhambra). FLORIDA: Homestead: First Federal Savings & Loan Association of Homestead (merger with First Federal Savings & Loan Association of Miami, Miami. Florida). PENNSYLVANIA: Philadelphia* James W. Queen Federal Savings & Loan Association, 7010 Elmwood Avenue (merger with Elmwood Federal Savings & Loan Association of Philadelphia). Rutledge-Morton Federal Savings & Loan Association, Rutledge Fire Hall (merger with Elmwood Federal Savings & Loan Association of Philadelphia). Wharton Square Federal Savings & Loan Association, Twenty-ninth & Wilder Streets (merger with Elmwood Federal Savings & Loan Association of Philadelphia). Pittsburgh: Eagle Number Two Federal Savings & Loan Association, 4625 Liberty Avenue (merger with Friendship Federal Savings & Loan Association of Pittsburgh). New Century Federal Savings & Loan Association of Pittsburgh, 4625 Liberty Avenue (merger with Friendship Federal Savings & Loan Association of Pittsburgh). Safe Investment Federal Savings & Loan Association of Pittsburgh, 1312 Beaver Avenue (merger with Fort Pitt Federal Savings & Loan Association, Pittsburgh, Pennsylvania). February 1940 • "ROOF over America" is the title chosen for an educational program on housing, to be broadcast for 13 Sundays at 2:00 p. m., E. S. T., over the Columbia Broadcasting System beginning March 24th. Announcement of the series was made by John W. Studebaker, Commissioner, U. S. Office of Education, which is sponsoring the program. "Roof over America" will deal with the housing problems of America, their origin and effects, and what progress savings, building and loan associations, banks, local civic groups, and the building industry are making in this field, in cooperation with Government agencies. Bulletins and booklets will be utilized for the further information of the radio audience. 179 FHLB Appointments DISTRICT NO. 6: FEDERAL HOME LOAN BANK OF INDIANAPOLIS T H E Federal Home Loan Bank Board has announced the designation of nine Chairmen and 12 Vice Chairmen of the Federal Home Loan Banks, whose terms of office will be for one year ending December 31, 1940, or until their successors are designated and qualified. Chairmen for the Banks of Winston-Salem, Cincinnati, and Portland will be designated and published at a later date. Appointments of Public Interest Directors in six Federal Home Loan Bank Districts have also been made by the Board. These Directors will hold office for 4-year terms ending December 31, 1943. In the case of Chairmen and Vice Chairmen, the asterisk (*) denotes re-designation; in the case of Public Interest Directors, re-appointment. Chairman: Herman B. Wells, Indiana University, Bloomington, Indiana. Vice Chairman: F. S. Cannon, Railroadmen's Federal Savings and Loan Association of Indianapolis, Indianapolis, Indiana. Public Interest Director: Charles T. Fisher, Jr.—President, National Bank of Detroit. Detroit, Michigan.* • DISTRICT NO. 1: FEDERAL HOME LOAN BANK OF BOSTON Chairman: Bernard J. Roth well, Bay State Milling Company, Boston, Massachusetts.* Vice Chairman: Edward H. Weeks, Old Colony Cooperative Bank, Providence, Rhode Island.* DISTRICT NO. 2: FEDERAL HOME LOAN BANK OF NEW YORK Chairman: George Mac Donald, Manufacturers' Trust CornCompany, New York, New York.* Vice Chairman: Francis V. D. Lloyd, Park Building and Loan Association, Ridgefield Park, New Jersey.* Public Interest Director: Lucius Root Eastman—President: The Hills Brothers Company; American Arbitration Association; Survey Associate Publishers. New York, New York.* DISTRICT NO. 3: FEDERAL HOME LOAN BANK OF PITTSBURGH DISTRICT NO. 7: FEDERAL HOME LOAN BANK OF CHICAGO Chairman: Charles E. Broughton, The Sheboygan Press, Sheboygan, Wisconsin.* Vice Chairman: Henry G. Zander, Jr., Henry G. Zander and Company, Realtors, Chicago, Illinois.* Public Interest Director: Charles E. Broughton—Editor and Publisher, The Sheboygan Press; President, Press Publishing Company. Sheboygan, Wisconsin.* DISTRICT NO. 8: FEDERAL HOME LOAN BANK OF DES MOINES Chairman: Charles B. Robbins, Cedar Rapids Life Insurance Company, Cedar Rapids, Iowa.* Vice Chairman: E. J. Russell, Mauran, Russell, and Crowell, Architects, St. Louis, Missouri.* DISTRICT NO. 9: FEDERAL HOME LOAN BANK OF LITTLE ROCK Chairman: Will C. Jones, Jr., The Murray Company, Dallas, Texas.* Vice Chairman: Wilbur P. Gulley, Pulaski Federal Savings and Loan Association, Little Rock, Arkansas.* DISTRICT NO. 10: FEDERAL HOME LOAN BANK OF TOPEKA Chairman: Paul F. Good, Good, Good, and Kirkpatrick, Attorneys, Lincoln, Nebraska. Vice Chairman: Charles F. Quaintance, Colorado Federal Savings and Loan Association, Denver, Colorado. DISTRICT NO. 11: FEDERAL HOME LOAN BANK OF PORTLAND Chairman: Ernest T. Trigg, National Paint, Varnish and Lacquer Association, Philadelphia, Pennsylvania.* Vice Chairman: Charles S. Tippetts, University of Pittsburgh, Pittsburgh, Pennsylvania.* Public Interest Director: Arthur B. Koontz—Senior member, law firm of Koontz, Hurlbutt and Revecomb; Vice President and Director, Charleston National Bank. Charleston, West Virginia.* Vice Chairman: Frank S. McWilliams, Fidelity Savings and Loan Association, Spokane, Washington. Public Interest Director: J. W. Maxwell—Chairman of the Board of Directors, National Bank of Commerce; Director, Northern Life Insurance Company of Seattle, Seattle, Washington.* DISTRICT NO. 4: FEDERAL HOME LOAN BANK OF WINSTON-SALEM DISTRICT NO. 12: FEDERAL HOME LOAN BANK OF LOS ANGELES Vice Chairman: E. C. Baltz, Perpetual Building Association, Washington, D. C * Chairman: David G. Davis, Raphael Weill and Company, San Francisco, California.* Vice Chairman: Albert J. Evers, Housing Authority of the City and County of San Francisco, San Francisco, California. Public Interest Director: Albert J. Evers—Executive Director, Housing Authority of the City and County of San Francisco. San Francisco, California.* DISTRICT NO. 5: FEDERAL HOME LOAN BANK OF CINCINNATI Vice Chairman: Wm. Megrue Brock, The Gem City Building and Loan Association, Dayton, Ohio.* 180 Federal Home Loan Bank Review O. S. GOVERNMENT PRINTING OFFICE: 1940 FEDERAL HOME LOAN BANK DISTRICTS \Q0A M M • BOUNDARIES OF FEDERAL HOME LOAN BANK DISTRICTS FEDERAL HOME LOAN BANK CITIES. OFFICERS OF FEDERAL HOME LOAN BANKS CHICAGO BOSTON B . J. ROTHWELL, Chairman; E . H . W E E K S , Vice Chairman; W . H , N B A V B S , President; H . N. FAULKNER, Vice President; FREDERICK W I N A N T , J R . , Treasurer; L. E . D O N O V A N , Secretary; P . A. HKNDRICK, C. E . BROUGHTON, Chairman; H . G. ZANDER, JR., Vice Chairman; A. R. G A R D N E R , President; J. P . D O M B I E R , Vice President-Treasurer; C O N STANCE M . W R I G H T , Secretary; UNGARO & SHERWOOD, Counsel. Counsel* NEW DES YORK MOINES Chairman; C. B . R O B B I N S , Chairman; E . J. R U S S E L L , Vice Chairman; R. J. RICHARD- G. L . BLISS, President; F . G. STICKEL, J H . , Vice President-General SON, President-Secretary; W. H . LOHMAN, Vice President-Treasurer; J. M . M A R T I N , Assistant Secretary; A. E . MUELLER, Assistant Treasurer; E . S. TESDELL, Counsel. CEOBGE MACDONALD, Counsel; ROBERT C. Chairman; F . V . D . L L O Y D , Vice G. CLARKSON, Vice President-Secretary; DENTON L Y O N , Treasurer* PITTSBURGH LITTLE ROCK E. T . T R I G G , Chairman; C . S. T I P P E T T S , Vice Chairman; R . H . R I C H ARDS, President; G. R. PARKER, Vice President; H. H GARBER, Secretary-Treasurer; R. A. CUNNINGHAM, Counsel. W. C. JONES, J R . , Chairman; W. P . GULLET, Vice Chairman; B . H. W O O T E N , President; H . D . W A L L A C E , Vice President; W . F . T A R V I N , Treasurer; J. C CONWAY, Secretary; W. H . CLARK, JR., Counsel. WINSTON-SALEM E. C. BALTZ, Vice Chairman; O. K . L A R O Q U E , President-Secretary; G. E , WALSTON, Vice President-Treasurer; J o s . W. HOLT, Assistant Secretary; RATCLIFFE, H U D S O N & F E R R E L L , C o u n s e l TOPEKA P , F . GOOD, Chairman; C . F . Q U A I N T A N C E , VicePi Chairman; C. A. S T E R - LING, President-Secretary; R. H . BURTON, Vice President-Treasurer; JOHN S. D E A N , J R . , General Counsel. CINCINNATI W M . M E G R U E BROCK, Vice Chairman; W A L T E R D . SHULTX, President; W . E . J U L I U S , Vice President; D W I G H T W E B B , J R . , Secretary; A, L. M A D D O X , Treasurer; T A F T , STETTINIUS & HOLLISTSR, General Counsel; R. B . JACOBT, Assigned Attorney* INDIANAPOLIS H, B . WKLLJ», Chairman; F . S. CANNON, Vice Chairman-Vice President; F R E D T. G R E E N E , President; G. E . OHM ART, 2d Vice President; J. C . M O R D B N , Secretary-Treasurer; J O N E S , HAMMOND, BUSCHMANN & G A R D - NER, Counsel. PORTLAND F, S. MCWILLIAMS, Vice Chairman; F . H . JOHNSON, President-Secretary I IRVING BOGARDUS, Vice President-Treasurer; Mrs. E . M . SOOT SMITH, Assistant Secretary; M. M. MATTHIXSSXN, General Counseli Los ANGELES D . G . D A V I S , Chairman; A. J. E V E R S , Vice Chairman; M . M . H U R F O H D , President; C. E . B E R R Y , Vice President; F . C. N O O N , Secretary-Treasurer; VIVIAN SIMPSON, Assistant Secretary; RICHARD FiTzPATRicKt General Counsel.
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