Full text of Federal Home Loan Bank Review : February 1943, Vol. 9 No. 5

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FEDERAL
HOME
LOAN
BANK
Washington, February 1943

ANNUAL SURVEY




Construction standards
are liberalized

A revision of "War Housing Construction Standards" issued on January 23 by the WPB and the NHA
should reduce many problems encountered by the home-construction
industry. Increases of 10 to 15 percent in floor areas which are permitted,
the removal of the ban on the use of
softwood finish- and sub-flooring, and
the easing of heating provisions, all
should facilitate the design and construction of needed housing.
Also important is the expansion of
areas in which wood-frame construction may be used. This does not
mean, WPB states, that the softwood
lumber situation is any less critical.
The new provision permits the shipment to nearby States of lumber
produced as a by-product of the production of timber for war needs.
States within easy reach of the northwestern and southeastern production
areas now are permitted to use "side
cuts" in home construction.
Under the new standards, construction in the following States and
FHLB Districts must be of laid-up
masonry exterior walls of clay or concrete products: Districts 1, 2, 3, 6,
7, 8, and 10 (excepting Maine, West
Virginia, Minnesota, and Colorado)
and the States of Maryland, Ohio, and
the District of Columbia.
Under certain conditions, construction started in the States of New
Hampshire, Vermont, Wisconsin, Iowa,
and North and South Dakota, during
the first 3 months of 1943 may be of
wood frame construction.
Copies of the new standards, which
go into effect immediately, may be
obtained from field offices of the WPB
or the FHA.

*

Committee of the WPB by the Office
of Civilian Supply.
Claimant agencies act as the spokesmen for the various "customers" using
critical materials. They are responsible for preparing and presenting
estimates of requirements of critical
materials needed in a particular field.
Allotments are made after consideration has been given the claims of all
interested parties.
The original claimant agencies were
the Army, Navy, Air Forces, Maritime
Commission, Office of Civilian Supply,
Lend-Lease, and Board of Economic
Warfare. Now added to the list are
the Office of Defense Transportation,
Food Administrator, Office of Rubber
Director, Petroleum Administrator for
' War, the Facilities Bureau of the War
Production Board as well as the National Housing Agency.
ft ft ft ft ft
War-bond sales
set new record

Sales of Series E, F, and G bonds in
January reached a total of $1,240,000,000, a figure 17 percent higher
than the previous peak established in

January 1942. Sales of Series E bonds
amounted to $814,928,000, or 22 percent above the previous record for a
single month.
Since May 1941, purchases of warsavings bonds have aggregated almost
$13,000,000,000. Approximately 98
percent of these bonds still are in the
hands of the purchasers.
ft ft ft ft ft
Personnel turnover of
New York associations

More than 300 officers and employees of savings and loan associations
in New York State resigned either to
enter the armed services or to enter
other types of business, according to
reports submitted to the December
conference of these associations. This
is a turnover of approximately 28 percent of total association employment
throughout the State.
Some 133 officers and employees of
the associations have entered the
armed services; 33 resigned to enter
war industries; and 77 left because of
higher salaries obtainable in other
industries.
Replacements are being made largely from the group of older men and by
the employment of women and girls.
Only 15 percent of these replacements
are considered to be temporary or
provisional.

*|g|ptp:;p»^
^^^Mp^m^M^^^^MMs^<

ft

N H A becomes
claimant agency

Designation of the National Housing Agency as one of six new "Claimant Agencies" to the WPB should assure that war-housing construction will
have more direct access to critical materials. In the past, the NHA has
been represented on the Requirements




LjLJ

The chart above demonstrates the gains and losses in civilian population experienced by various States
and sections of the country since the inception of the Defense Program in 1940. The largest loss in population—500,000—was experienced by New York, with Pennsylvania recording a decline of 187,000.
Michigan, with 311,000, and California, with 302,000 showed the largest gains in the 2-year period.

_ _ « « _

CONTENTS

FOR

FEBRUARY • 1943

FEDERAL
HOME

REVIEW OF 1 9 4 2 - O N E YEAR OF WAR
The conversion to a war economy
Housing a Nation at war
Savings and loan operations enter a new phase
Rising incomes bring higher savings
Looking ahead in 1943

I ^ ^ A k •
| _ V J A \ |\l

page
132
134
140
143
145

BANK
MONTHLY SURVEY
DC\/IC\A/
l>bY It W
_______________
NATIONAL HOUSING

AGENCY
John B. Blandford, Jr„ Administrator

•
FEDERAL HOME LOAN
BANK ADMINISTRATE

Highlights and summary
Residential construction
Building costs
New mortgage-lending activity of savings and loan associations
Mortgage recordings

151
152
152
152
153

Foreclosures

153

Federal savings a n d loan associations
Federal Savings a n d Loan Insurance Corporation
Federal H o m e Loan Bank System

153
154
155

STATISTICAL TABLES

John H. Fa hey, Commissioner

_
™
FEDERAL HOME LOAN
BANK SYSTEM

N e w family dwelling units—Building costs—Savings a n d loan lending— Mortgage
recordings—Total nonfarm foreclosures—FHA activity—Federal H o m e Loan
Banks—Sales of U. S. war-savings bonds—Savings in selected financial institutions—Insured savings and loan associations
158-163

FEDERAL SAVINGS AND LOAN
ASSOCIATIONS
FEDERAL SAVINGS AND LOAN
INSURANCE CORPORATION

REPORTS

HOME OWNERS' LOAN

CORPORATION
UNITED STATES HOUSING
CORPORATION
- - _ _ _ - — _ _ _ — •

Vol. 9

Honor roll of war-bond sales
A m e n d m e n t t o Rules a n d Regulations
.
Directory of member, Federal, a n d insured institutions added during December
1942-Januarv 1943

147
164
167

No. 5

SUBSCRIPTION PRICE OF REVIEW. The REVIEW is the Federal Home Loan Bank Administration's medium of communication with member institutions
of the Federal Home Loan Bank System and is the only official organ or periodical publication of the Administration. The REVIEW will be sent to all member institutions without charge. To others the annual subscription price, which covers the cost of paper and printing, is $1. Single copies will be sold at 10 cents. Outside
of the United States, Canada, Mexico, and the insular possessions, subscription price is $1.60; single copies, 15 cents. Subscriptions should be sent to and copies ordered
from Superintendent of Documents, Government Printing Office, Washington, D. C.
APPROVED BY T H E BUREAU OF T H E BUDGET.




PRIVATE HOME CONSTRUCTION
x
1 9 3 5 - 1939 « 100

MILLIONS

MORTGAGE

NEW INVESTMENTS-SAVINGS a LOAN
1955-1939*100
JNE

RECORDINGS

OF DOLLARS
500
400

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300

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SUMMARY

INO£X < ^ S T OF STANDARD
I40r

HOUSE

II, Construction, Home Financing, and Real Estate: The
necessity for conserving critical materials and manpower resulted in drastic cuts in all new residential
building, with the exception of necessary housing for
war workers. Home-financing activity was concurrently affected, but home-purchase loans and the
refinancing of existing contracts tended to sustain the
mortgage volume until late in the year.
Real-estate
trends were again mixed, depending upon the degree
to which individual localities were affected by war
industries.

IEOF-

tool

RENTS

INDEX
ISO

t*4E^
J941X

^

4

105
l*40**
lUfc'OF LA80* $TATS»

too

,1,

1„ L I

NONFARM

U

/. General Business Conditions: The conversion to a war
economy absorbed most business energy during the
past year, as one after another of our industries
turned to the manufacture of munitions. Despite the
extensive change-over involved, it was the greatest
production*year on record.
New highs in national
income, production, and employment were by-products
of the war effort.

> I

I •••!• I

FORECLOSURES

III, Savings and Loan Operations: The financing of war
housing and the sale of war bonds were in the center
of all savings and loan activity during the year.
With the single exception of the decline in new
lending, all primary changes during 1942 resulted in
a further strengthening of the industry.
Liquidity
positions were improved/ new private capital continued to be received in good volume/ borrowed
money was repaid/ real-estate owned was further
liquidated/ and reserves were bolstered.
Total assets
of all operating associations at the end of the year
were estimated at approximately
$6,200,000,000.

1 i i i ,i, , i i i i
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MEMBER

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PRODUCTION

L 0 1

^ T O W U.S. BOND YIELDS

ASSETS

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SAVINGS AND LOAN LENDING NDI

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INCOME

1 1 1 1

PAYMENTS

id
INDE
£0<

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I6(
(4Q

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re*cf*r

to

1*40-^

IV. Savings: Higher national income resulted in the largest
annual increaselyet registered in savings funds. A
major share of the new money was placed at the
disposal of the Government for financing the War.
Purchases of war bonds exceeded 9 billion dollars,
and additional
amounts were also added to the
accounts of savings and loan associations and other
savings media.
1

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WHOLESALE

1940
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PRICES

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J F M A M J J A S O N D




1940*^

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REVIEW OF 1942—ONE YEAR OF WAR
The forging of a war economy out of normal business habits during the
past year has wrought extensive changes in nearly all types of enterprise. Thrift and home-financing institutions have been no exception
to this rule, and a summary of their 1942 operations reveals their
ability to make necessary adjustments.
•

T H E fortunes of thrift and home-financing institutions were increasingly affected during 1942
by developments outside the immediate control of
their own management as the growing magnitude
of the war effort enveloped all business in its path.
While they have fared better than many other
industries, there were new problems arising each day
which required the concentrated attention of managing officers and their boards of directors. Efforts
to solv^e these problems were greatly influenced by
the growing realization that the importance of any
operation was now determined by its contribution
toward the winning of the War.
Mortgage-lending activity was probably the most
drastically altered element in the operation of savings and loan associations and other home-financing
institutions. This was the result of two important
developments of the past year: the dwindling opportunities for financing new construction; and the
highly competitive condition of the mortgage market.
Although building activity had already been subjected to priority controls before the year began,
existing inventories were sufficient to maintain a
substantial volume of construction during the first
few months of 1942. The "Stop-Construction"
order in April, however, marked the end of normal
home-financing for the duration. The increasing
emphasis on temporary housing accommodations
also acted as a deterrent to private lenders who could
not be expected to assume the added risks involved
in this type of building. At the same time, lending
institutions found themselves with a surplus of
loanable funds. This situation was brought about
by the larger volume of individual savings and by
the increased repayments on existing mortgage
contracts.
The combined effect of excess funds for investment
and a declining loan volume created a highly competitive condition in the mortgage market which had
a tendency to lower interest rates and to stimulate
loan transfers between institutions.
The flow of private savings into thrift institutions,
although affected by war conditions, was less disFebruary 1943




turbed than was the market for the investment of
these funds. On the crest of the highest national
income in our history, a new all-time record was
established in the amount of saving by the general
public. More than nine billion dollars was placed
at the disposal of the Government through the sale
of war bonds. At the same time, money continued
to flow in good volume into savings and loan associations, banks, and life insurance companies.
SAVINGS AND LOAN ASSOCIATIONS D U R I N G

1942

The major efforts of savings and loan associations were centered on two primary objectives: the
financing of war housing, and the sale of war bonds.
Although their contribution in the first of these
aims was limited by the increasing restrictions on
new construction, it is estimated that savings and
loan members of the Bank System alone have
financed the building of 250,000 homes in warindustry areas since the defense housing program
started in May 1940. In assisting the Government
through the sale of war bonds, savings and loan
associations continued to make steady progress.
Sales by all member associations were 75 percent
higher during the second half of 1942 than in the
first 6 months, and the cumulative total is now well
over $300,000,000.
In view of the substantial recovery of these institutions during recent years, the current operating
conditions afford an excellent opportunity to consolidate the gains which have been made and to
prepare for a resumption of full-scale activity when
the War is over. This can be done by building up
reserves, by increasing liquidity, and by unloading
the small amount of real estate which is still in the
hands of these associations.
Substantial progress was made in each of these
directions during 1942. This is evident in the following pages which analyze the results of savings
and loan operations in the light of developments in
general business conditions, residential building and
real estate, and savings trends.
I3I

The Conversion 1
•

AS production soared to the highest levels on
record, control of the American economy during
the past year reached deeper and deeper into every
business. Priorities and price ceilings, inventory
controls and rationing extend the full range from
production to consumption; and the story of 1942
in the business world is largely a chronology of these
measures.
At the beginning of the year the country was
only starting on the road toward a war economy.
In January, the War Production Board was established with extensive powers to convert the civilian
productive facilities to the manufacture of munitions;
and each succeeding month found additional industries included in the over-all program. Also in
January, price-control legislation was enacted and
the regulation of prices became an important cog
in the effort to prevent inflation. The scope of
price controls was steadily widened, and with the
creation of the Office of Economic Stabilization in
October control was extended to include wages,
salaries, and other important elements. Gradually
the noose was drawn more tightly around all activity
not directly contributing to the prosecution of the
War. Only in summarizing the year's activity is it
possible to see what was accomplished despite the
difficulties which were inevitable in the execution of
any program of such magnitude.
I t was the biggest year in production that this
country has ever experienced. About one-third of
our total national output during the past year was
exclusively for war purposes, as compared with less

a W a r Economy
than 10 percent in 1941, and only 3 percent in 1940.
National income during 1942 rose to 117 billion
dollars—also about one-fourth greater than in the
previous 12-month period.
The greatest increase
was reflected in payments for wages and salaries
which jumped from 61 billion dollars in 1941 to
more than 80 billion dollars last year. Corporate
income, after allowance for taxes, was about 5
percent lower than in the previous period.
By the end of 1942 the Federal Reserve index of
industrial production reached a level almost double
the 1935-1939 average. For the year as a whole,
the gain over 1941 output was more than 16 percent.
Virtually the entire increase was in the durable
goods classification which includes most types of
war production. The volume of nondurable manufactured goods, including the majority of items for
civilian consumption, showed, almost no change
during the year.
The construction of new war plants and army and
navy installations during 1942 produced a record
volume of building—one which is likely to stand for
many years. The Department of Commerce estimates that a total of $13,600,000,000 was spent on
construction activity last year as compared with
slightly more than 11 billion dollars in the previous
year. More money was spent for new plant capacity
last year than was expended during the decade of the
thirties. At the same time, there were drastic cuts
in other types of building activity such as residential
construction, highways, and public works projects.
PRICES W E R E

UNDER CLOSE SCRUTINY

Higher national income in the face of a diminishing supply of consumer goods brought considerable
pressure for higher prices in almost every phase of
the economy. Early in the year, waves of buying
in anticipation of future shortages accentuated this
development, and prices began to rise. I n May,
the Office of Price Administration issued its General
Maximum Price Regulations which established price
ceilings at March levels for most goods, particularly
cost-of-living items. However, unregulated commodities—especially farm products—continued to
rise until, in October, Congress passed additional
legislation to include many articles not previously
covered. This provided for the stabilization of wages
and salaries subject to certain conditions.
132




Federal Home Loan Bank Review

The accompanying charts show clearly the variation in the price trends of controlled and uncontrolled commodities. Wholesale prices of industrial
commodities have been almost unchanged since the
establishment of the March ceilings, b u t those of
farm products and food items continued to rise
throughout the remainder of the year. Cost-ofliving indexes shown in the upper chart also reflect
similar trends; rents and clothing prices have declined
slightly from the M a y peaks, b u t food costs have
risen approximately 10 percent. The cost of living
at the end of 1942 was almost 20 percent above the

BUSINESS
INDEX

BACKGROUNDS
,MDEX

300r-

tM

TREND

IN PRICES

1 9 4 0 - 1942

COST OF LIVING
1935-1939 = 100 j

I I I I i I
801—^
X-l—L-L
DEC V MAR.
MAR.
JUN. SEP
DEC
MAR. JUN.
1940
1941
SOURCE: Bureau of Labor Statistics

I

i

I

I

I

I

I

^W

levels in the Spring of 1941 when the upward movement of prices got under way.
DEVELOPMENTS IN FINANCE

Most important development during 1942 in the
sphere of finance was the continued absorption by
the market of new Government issues in unprecedented volume. The total Government debt rose
from less than 60 billion dollars to more than 100
billion during the year.
Nearly half of the increase in the public debt was
reflected in the Government security holdings of the
banking system, including commercial banks and
February 1943




Federal Reserve Banks. However, in the biggest
single Treasury drive of the year—the December
Victory Fund Campaign—about 60 percent of the
$12,990,000,000 was raised from nonbanking sources.
Despite the increased volume of Government
securities on the market, bond prices showed comparatively little change during the year. The
average yield on partially tax-exempt long-term
Government bonds was 2.09 percent in December,
as compared with 1.97 percent in the same month
of 1941.
The amount of money in circulation showed
another substantial gain, in excess of 4 billion dollars
from one year-end to the next, and at the end of
last year totaled over 15 billion dollars. This is
more than twice the amount of money in circulation
three years previous. Federal Reserve economists
explain the rise in terms of larger payrolls, higher
consumer expenditures and retail prices, the removal
of many persons from their customary homes and
bank connections, and increased holdings of idle
currency.
Stock prices as measured by industrial averages
declined during the first 4 months of the year, reaching a year-low in April, but followed an almost
steady upward trend during the remaining 8 months
and finished the year at levels above those prevailing
at the end of December 1941.
Reduction of consumer credit was another feature
of the year in finance. On the basis of estimates b}^
the Federal Reserve Board, the outstanding balance
of this type of debt was reduced more than one-third
in 1942, bringing the total to slightly more than 6
billion dollars at the end of the year. The decline
in automobile financing was responsible for a large
share of this drop.
I33

Housing a Nation at W a r
•

T H E story of home construction in the year
1942 is one of redirection of the operations of
an entire industry from the general activity of providing housing for the whole population to the
specific task of supplying accommodations needed
in war-industry areas. I t is, therefore, the story of
the elimination of nonessential building, of increasing
Government participation in the financing of new
dwellings, and of growing control not only of the
type but of the location of the units produced.
When the year opened, the construction of homes
was proceeding at the same rate and under much
the same conditions prevailing prior to the declaration of War. The first indication of the change to a
new status was the " Stop-Construction'' order of
April 9 which brought normal building activity to a
standstill. While the order was relaxed to permit
a rather small volume of building during the middle
months of the year, the effect of the second "StopConstruction" order late in October (almost immediately rescinded) and the joint NHA-WPB
"War-Housing Construction Standards" completed
the transition to a war-industry status. Until the
end of the emergency, the production of homes will
be subject to all of the controls which such a status
entails.

for 715,000 publicly and privately financed units.
Estimates of the Department of Labor show that
during 1942 only 473,000 nonfarm units were constructed, and the permit valuation for new homes
declined from $2,500,000,000 to approximately
$1,500,000,000, a drop of 40 percent.
Private residential-construction activity experienced an even sharper drop. Permits for privately
financed structures declined more than 50 percent
from totals reached in 1941. Only 301,000 privately
financed units were started in 1942 while in the
previous year more than 620,000 units were placed
under construction. The estimated permit valuation was $950,000,000, a drop of 56 percent from
1941,
Construction of publicly financed dwellings, on
the other hand, gained 80 percent in the year. In
1941 publicly financed housing accommodations accounted for 95,000 units, or 13 percent of all permits
for nonfarm areas. In 1942 a total of 172,000
Government-financed family units, of permanent or
temporary character, were built and public housing
accounted for more than 36 percent of all home
building.

How M U C H D I D W E BUILD I N 1942?

While every section of the country, and all States
except Nevada, shared in the decline, the extent of
the variation from last year's activity showed a
wide divergence on geographic lines. The heaviest
decline—49 percent—occurred in the Middle Atlantic
States of New York, New Jersey, and Pennsylvania.
The West North Central States (including Minnesota, Iowa, Missouri, and Kansas) were almost
equally hard hit, and New England States were also
sharply affected.
The two sections in which building activity showed
the smallest decrease were the Pacific Coast and the
South Atlantic States, including the Coastal States
from Delaware to Florida, the District of Columbia,
and West Virginia. I n the Pacific area, where only
9 percent fewer homes were built in 1942 than in
1941, the rate of construction in terms of population
was four times as great as in the New England
States.
Even these figures do not represent a true picture
of the variation in activity within a given State.
A survey of the Bureau of Labor Statistics, completed
last Summer, showed that seven-tenths of all non-

In the face of record activity in other types of
construction, the production of housing in nonfarm
areas declined more than one-third from the postdepression peak of 1941 when permits were issued

134




GEOGRAPHIC VARIATIONS IN CONSTRUCTION VOLUME

Federal Home Loan Bank Review

F. H. A. INSURANCE ACTIVITY

DEC

MAR

JUN

SEP

1940

DEC

MAR.

JUN

SEP

DEC

MAR

1941

JUN

SEP

OEC

1942
DIVISION OF OPERATING STATISTICS
FEDERAL HOME LOAN SANK ADMINISTRATION

farm dwelling units and more than two-thirds of all
privately financed nonfarm homes started in the
second quarter of 1942 were located in 138 defense
areas. These same localities accounted for only
half of the nonfarm total in 1940. The survey
indicates that construction during the latter half of
the year probably was even more heavily concentrated
in these areas.

written on. 3,778 mortgage's amounting to $13,450,000 under Title VI, which is used exclusively
for the financing of war-housing construction.
In 1942 insurance was written on 104,000 new
home mortgages amounting to $490,000,000 under
Title II. This decrease in premium-paying mortgages was 33 percent of the number and 29 percent
of the amount of insurance written on the type of
structures which are of primary concern to mortgagelending institutions in peacetime. Under Title
VI, however, 68,706 mortgages in an amount of
$267,000,000 were insured, bringing total FHA
mortgage insurance for new construction above the
1941 level. Study of applications and commitments
issued by the FHA under both Titles I I and VI
during recent months would seem to indicate that
new home mortgages insured under Title VI will
represent an even larger proportion of FHA new
home premium-paying mortgages during the presentyear.
BUILDING COSTS AND PERMIT VALUES

The rise in the level of building costs was far less
pronounced in 1942 than during the previous year.
The index of the total cost of constructing the stand-

SINGLE-FAMILY STRUCTURES STILL PREDOMINATE

Single-family structures again predominated in
the housing picture in 1942, although the percentage
decline in 1- and 2-family units was greater than for
multifamily dwellings. Permits were issued for
391,000 single-family units during the year, a decrease
of 36 percent from the 613,000 units built in the
previous year. In spite of this decline, individual
houses accounted for 83 percent of all construction
in 1942.
Only 18,000 two-family structures were built
during the year, a decline of 47 percent from the
previous period. Multifamily dwellings constructed
contained 64,000 units, a decrease of only 5 percent
from 1941. The comparatively better showing of
this type is due to the large number of Federally
financed projects in this classification.
FHA

AND W A R HOUSING

One illustration of the extent to which residentialconstruction activity has been directed to war needs
is to be found in the experience of the Federal
Housing Administration in insuring mortgages on
newly constructed houses. During 1941 about
156,000 new home mortgages totaling $694,000,000
were insured under Title I I , and insurance was
Fzbruary 1943




I35

REAL ESTATE TRENDS
1942 COMPARED WITH 1941
UNITED STATES
..-80%

- S Q % ~407 ?

~gO%

0

+ 20%
PRIVATE HOME CONSTRUCTION
MORTGAGE RECORDINGS
FORECLOSURES

INDIANA

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One measure of the impact of the War on new
home financing is the analysis on a state-by-state
basis of permits issued in urban areas for privately
financed 1- and 2-family homes. As the charts on
this and the facing page show, the over-all decline in
single and 2-family dwellings was 50 percent from
the previous year's levels. Total construction of
these houses declined to approximately 155,000 units,
the lowest number for any year since 1938. Permit
valuation dropped 57 percent from the $1,234,000,000
total in 1941.
In only one State, Nevada, was there an increase
in privately financed construction of homes in urban
areas. In only one other State—Connecticut—was
construction less than 25 percent below 1941 levels.
Declines in 29 States and the District of Columbia
were larger than 50 percent, and in 8 of these States
the decrease was greater than 75 percent from the
previous year. I n Delaware, permits were 90 percent below the 1941 number.

[

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5

5

1

In spite of the large decline in the construction of
new homes, mortgage recordings of $20,000 or less
amounted to more than $3,900,000,000 in 1942, a
decrease of about 17 percent from the record total of
$4,732,000,000 for the previous year. I t w^ill be
evident from the accompanying charts that the percentage change in recordings did not parallel that of

MISSOURI
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AREAS

H O M E PURCHASES BOLSTER MORTGAGE RECORDINGS
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arc! 6-room house was less than 4 percent higher at
the end of the year than in December 1941. Labor
costs mounted approximately 5 percent in the period
and materials costs recorded an average rise of 3
percent. In spite of a fractional decline in certain
materials costs toward the end of 1942, the cost of
home construction still remained as much as 12 percent higher than in 1940.
Notwithstanding this increase in costs, the average
permit value declined from $3,500 for 1941 to about
$3,100 during the 1942 building season. Permits
for privately financed single-family structures in
urban areas showed an even larger decline, from
about $4,000 in 1941 to an average of approximately
$3,400 at the end of 1942. Government restrictions
on the use of certain materials, the limitations on
the size and equipment of units, and the shift to
temporary types of structures undoubtedly were
responsible for this reversal in the trend of per-unit
costs.

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Federal Home Loan Bank Review

REAL ESTATE TRENtfe
1942 COMPARED WITH 1941

residential construction, In three eastern S t a t e s - Maine, Delaware, and Maryland—recordings were
somewhat greater than for the previous year. I n
six States the decline from 1941 activity was 5
percent or less; and in six additional States, 1942
recording activity was between 5 and 10 percent less
than in 1941. Only three States reported declines
of as much as 40 percent from one year to the next,
The heavy volume of mortgage transactions involving existing structures was responsible for the
well maintained activity during the early months of
the year when recordings were equal to or only fractionally below comparable months of 1941. I t was
only in the last 2 months of the year that figures
dropped to as much as 25 percent below 1941 levels,
and December recordings showed the worst year-toyear comparison of any month—32 percent below the
corresponding month of 1941.
While all types of lenders shared in the decreased
volume, recordings of banks and trust companies and
mutual savings banks showed the largest percentage
decrease—24-percent from their 1941 totals. Recordings of savings and loan associations were onefifth smaller than in the previous year. As the chart
on page 138 demonstrates, insurance companies,
individual lenders, and "other" mortgagees were far
less affected by the events of the year and their
business declined only 10, 6, and 7 percent, respectively. Each of these three groups, therefore, increased its relative share of the year's business.
Savings and loan associations still led all types of
institutions with approximately 30 percent of the
annual total recordings. Banks and trust companies
and individual lenders retained second and third
places, handling about 22 percent and 19 percent,
respectively. " Other" mortgagees accounted for
approximately 16 percent of all mortgage recordings.
Insurance companies improved their position during
the year with more than 9 percent of the total.
Mutual savings banks recorded 4 percent of all
mortgages.
HOME-MORTGAGE

DEBT

SHOWS

SMALLER

2

CONSTRUCTION

RECORDINGS

FORECLOSURES

NEBRASKA
-80

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RHOOE ISLAND

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PENNSYLVANIA
{—i—m—J * i i -

February 1943




MORTGAGE

1

I

I

I "-T-

GAIN

Increasing at a retarded rate during 1942, the
home-mortgage debt now stands at approximately
$20,650,000,000, a figure almost equal to that of the
peak level of the twenties. The scanty data available at this time point to an increase of less than
$500,000,000 in the total mortgage portfolios of all
lenders during the year. While this is the sixth
successive year that the total debt has risen, the gain
is less than half of that registered during 1941.

508401—43

MONTANA
HW%
-SO% - 4 0 % - 2 0 %
0
»g<>%
,
1 '"{ i
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* t"'"" "|
1 1
PRIVATE HOME

WEST VIRGINIA
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WYOMING
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MORTGAGE RECORDINGS DURING 1942
UNITED
PERCENTAGE

DISTRIBUTION

STATES
PERCENT DECREASE FROM 1941
-25

-20

-15

-10

INDIVIDUALS
OTHER LENDERS
INSURANCE CO'S.
ALL LENDERS

$3,942,000,000

I t is probable that private mortgage lenders may
have added almost $700,000,000 to their holdings in
the year, but this was partly offset by the accelerated
liquidation in HOLC mortgage holdings. Normal
repayments and substantial prepayments by borrowers, as well as increased refinancing of loans by
private lenders, brought a drop of $210,000,000 in
HOLC holdings in 1942 as against $180,000,000 for
the previous period.
There are two factors which probably explain the
smaller gain in the home-mortgage debt in 1942. I t is
obvious from reports of all types of institutions that
borrowers, responding to the appeal of the President,
have used increased wages to speed up the retirement of their indebtedness. I t is also evident that
mortgage-recording figures have been maintained
in volume, to a certain extent, by mortgages refinanced and transferred from one institution to
another. These loans and those for the purchase of
homes already mortgaged do not necessarily represent any increase in the total mortgage debt.
M I X E D T R E N D S E V I D E N T IN R E A L - E S T A T E
ACTIVITY

While many indexes of real-estate activity showed
favorable trends in 1942, the picture for the country
as a whole was uneven. For some cities, the
demand for accommodations so far exceeded the
supply that critical housing shortages developed.
For others, a declining market for real estate, whether
for rent or sale, reflected the draining of manpower
from every source for war and war-industry needs.
One of the best indicators of the wide divergence
between individual cities is to be found in a survey
of residential vacancies conducted by the Department of Commerce last year. The study showed
that while vacancies in all cities of more than 25,000
declined by nearly one-half from 1940 to 1942, the
138




effects of the War upon the supplies of housing
accommodations had varied widely from community
to community. With the exception of New York
City, larger cities showed the greatest decline in
vacancies and the smallest percentage of vacant
properties.
Out of 88 cities with populations of more than
100,000, which were surveyed, only 4 reported a
larger number of vacancies in 1942 than in 1940;
for a few others, substantial decreases had not yet
brought vacancies to a "danger" point. In some
cities, as the accompanying table shows, the supply
of accommodations had dropped to the vanishing
point by the early months of 1942 (the small percentage of vacancies reported probably involves
sub-standard houses, properties unsuited for housing
workers either because of location or size, and vacancies occurring during a change of tenancy).
Percent of urban dwelling units vacant in selected
cities
City

1940 Census 1942 Survey

All cities over 25,000

4. 6

2. 5

Springfield, Mass
Baltimore, Md
Seattle, Wash _
Omaha, Nebr
Kansas City, Mo
San Diego, Calif
Tulsa, Okla
Flint, Mich

4. 5
3.7
5.8
5.4
8. 1
6.3
5.9
2.5

0. 7
0.8
1. 1
3.9
4. 6
1.0
2. 2
3. 6

_
_ _ _.
__
__ _
_
. _

This critical shortage of housing accommodations
which developed in some areas early last year made it
necessary for the Federal Government to take
measures to control the existing supply of properties.
The first step in the nation-wide control of residential
rents was taken with the passage of the District
of Columbia Rent Control Bill effective January 1.
1942. Almost immediately thereafter, nationwide
price-control legislation was enacted. In March
the first cities were designated as Defense-Rental
Areas, and on June 2 they became subject to Federal
rent-control regulation. Successive designations have
brought every section of the country within the scope
of rent control. While regulations actually are in
effect in only about 350 cities throughout the country, others are being brought under Federal regulation as the intensity of the demand depletes the supply of housing.
Because of the enormous expansion of the population in many areas, initial control measures have not
Federal Home Loan Bank Review

been sufficient to curb evasive practices. To prevent
waves of evictions which developed in some parts of
the country, the OPA late in November issued regulations rigidly controlling the sale of tenant-occupied
homes and the eviction of existing tenants without
reasonable notice.
In addition to these measures, the Government
has moved along three fronts to keep housing shortages from delaying the adequate staffing of defense
plants. The major portion of publicly and privately
financed construction has been scheduled for areas
of greatest need. Private conversions of existing
properties have been encouraged and a Government
program for the lease and conversion of certain
structures inaugurated. The National Housing
Agency also appealed to families to open their homes
to "War Guests." While the situation in some areas
still remains critical, it was apparent at the end of
the year that progress has been made toward providing an adequate supply of housing for workers in
critical areas.
R E A L - E S T A T E OVERHANG

DECLINES

Even in areas where real-estate activity is comparatively slight, the cessation of construction and
the rise in wages and salaries have combined to develop a demand for institutionally owned properties.
As a result, the volume of real estate held by mortgage lenders again was reduced in 1942. While
comprehensive data on the sale of owned real estate
still are lacking, preliminary estimates show that
the net reduction for the year will amount to approximately $400,000,000. Although this is a decline in
dollar volume from the record activity of 1941, it
represents an equal or greater percentage decrease in
real-estate holdings.
REAL ESTATE ACTIVITY IN THE UNITED STATES

BIRMINGHAM

.NDEX

BALTIMORE

RENT
CONTROL

' " . , {

1 1 I . . I . . I . .

CLEVELAND
140

———*"'

liilninml
1941

*~

130

130

120

ISO

no

1 10

M I • , 1 1 , 1 , • 1 100 1 < i . 11 • . 1 , , 11 . 1 . . 1 . i l u

100

^ ^ZI
, , 1, , 1 . ,_i ! !

^

1 1,,l

1942

SOURCE: Bureau of Labor

Statistics

I t is probable that, as a result of 1942 sales activity,
the real-estate-owned account of savings and loan
associations, life insurance companies, commercial
banks, mutual savings banks, and the HOLC has
fallen below the $1,000,000,000 level for the first
time in more than a decade.
One factor which has played an important part in
the net reduction of real-estate owned is the low level
of foreclosures. Throughout last year, only about
42,000 foreclosures were reported for the entire
country, a decline of 28 percent from 1941. Foreclosure activity was the lowest in over 15 years.
In only three States—Maine, Georgia, and Utah—
were foreclosures higher than in 1941. I n every
Federal Home Loan Bank District, fewer properties
were acquired by mortgage lenders during 1942
than in the previous year, and in 7 of the 12 Districts
the decline was greater than the national average.
Foreclosures in the Indiana-Michigan area were 44
percent fewer than during 1941. I t is again to be
noted that the foreclosure rate tended to be higher
in the Eastern Seaboard States and substantially
lower in the western part of the country.
T A X R A T E S SHOW SLIGHT

150

140

130

120

110

100
MAR.

JUN.

SEP

1940
S DURCE:

1935 - 1939 = IOO

1935-1939 = 100

INDE
160

DE C

EFFECTS OF RENT CONTROL IN SIX SELECTED CITIES

Reol

E s t a t e A n a l y s t s , Inc.

DEC.

MAR.

JUN.

SEP

DEC.

MAR.

1941

February 1943




JUN.

SEP

DE

a

1942
D I V I S I O N OF OPERATING

FEDERAL HOME

STATISTICS

LOAN BANK AOMINISTRAT ON

CHANGE

In spite of increased operating costs, American
cities have, on the whole, been able to keep real-estate
taxes at about the same level. A study conducted
by the Detroit Bureau of Government Research 1
indicates that for the first time in 7 years, the average
adjusted tax rate levied by all cities declined during
the 1941-1942 fiscal year. The amount of the
decrease was small, averaging five cents per $1,000 of
assessed value, and was accompanied by a 1% percent
increase in assessed value.
1
"Comparative Tax Rates of 276 American Cities—1942," National Municipal
Rerieu\ December 1942.

139

Savings and Loan Operations Enter a New Phase
I

T H E War has, of course, affected many phases
of savings and loan operations. During the
past year, lending on new homes narrowed down to
the financing of private war-housing projects in a
limited number of areas. The net growth of the
mortgage portfolios of these associations was considerably smaller than in 1941. The sale of warsavings bonds and stamps to the general public
became increasingly significant and now stands out
as one of the most important functions which
management can perform.
With the single exception of the decline in new
construction financing, all primary trends prevailing
during the past year may be considered as conducive
to a further strengthening of the savings and loan
industry.
Liquid resources such as cash and Governmentbond holdings were increased; new private-share
capital was received in substantial volume; the
amount of borrowed funds was reduced; real-estate
owned was further liquidated; and reserve positions
were bolstered with increased allocations: each was
a constructive development, and together they produced one,of the best all-around years for savings
and loan associations in the past decade.
I t was the third successive year during which the
total assets of all operating savings and loan associations registered an increase. Although the gain
was not as large as in 1941, it is conservatively

estimated that these institutions held resources of
about $6,200,000,000 at the end of December. The
assets of all savings and loan members of the Federal
Home Loan Bank System passed the five-billiondollar mark near the end of the year; and with a
1942 gain of $216,000,000 reached a total of $5,041,000,000 on December 31. This was an increase of
4 percent over the previous year-end, and compares
with a 9-percent gain from 1940 to 1941. Slightly
more than four-fifths of the assets of all operating
savings and loan associations are now included in
the Bank System membership.
DISTRIBUTION OF MORTGAGE LOANS
BY ALL SAVINGS AND LOAN ASSOCIATIONS
fcY LOAN PURPOSE - 1940 TO 1942

18,948 k ^ H | H H H H I H H | H l | H H |

On a Bank District basis, it is evident from the
bar chart on this page that the largest percentage
and dollar gains in assets were shown by associations
in the Portland and Boston regions, respectively. The
Pittsburgh, Indianapolis, Winston-Salem, and New
York Districts also had better-than-average records
for the year as a whole.

6
Indianapolis

20,662 • I H H I H ^ ^ ^ H ^ ^ H H I H l

MORTGAGE-LENDING TOTALS D R O P

4
Winston Salem

29,367 • ^ ^ ^ | H H I H H H I i l
163 • m ^ m p i

GROWTH IN ASSETS OF MEMBER
SAVINGS AND LOAN ASSOCIATIONS
PERCENT INCREASE 1942 OVER 1941
Dollar Increase
F.H-.L.B. Disf. (thousands) 0

2

4

6

8_

\5

1 1
Portland
Boston

37,065 H I H H H B i i H H H B H H P l H

3
Pittsburgh

2
New York
United States
8
Oes Moines

°"'°°^^^^^r
18 H U H U m H I

12
Los Angeles

13,998 H H H B I H H H

5
Cincinnati
10
Topeka

36,461 H ^ ^ H H H H I ^ I
3,004 H U H

9
Little Rock

3,503 H f H

7
Chicago

3,498 H |
DIVISION OF OPERATING STATISTICS
FEDERAL HOME LOAN BANK ADMINISTRATE 14

140




T I M E SINCE

FOR THE

FIRST

1938

For the duration of the War, the principal bar to
the normal balance of savings and loan operations
will be the reduced opportunity for mortgage investments. Although the total loans made by all
savings and loan associations during 1942 were still
in excess of one billion dollars ($1,050,000,000), they
were 24 percent below the 1941 figures and more than
12 percent under the 1*940 level.
The stringent limitations on the construction of
new homes was, of course, the main factor in the
Federal Home Loan Bank Review

State-chartered associations which were not members
of the Bank System experienced a 23-percent drop,
while the lending of State-chartered members was
down only 18 percent. Last year, for the first time
since 1938, the volume of lending by State members
exceeded that of the Federal associations.

I
1 LENDING ACTIVITY OF ALL SAVINGS AND LOAN ASSOCIATIONS
J 9 4 2 COMPARED WITH 1 9 4 1 - 3Y F R L . B . DISTRICTS
:

AND CLASS OF ASSOCIATION

UNITED STATES
-40%

-30%

-20%

1

-10%

0

FEDERALS

r

i

STATE MEMBERS

I
OlST.J- BOSTON

-SO

-20

-10

DIST. 3 - PITTSBURGH

0

+10

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OIST. 4 - WINSTON SA L£M

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LOAN PORTFOLIOS SHOW SMALLER GAINS

1
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OIST. 6 - INDIANAPOLIS

1

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O I S T . 8 - 0 E S MOINES

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-40

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ALU +S.&L
A.

1

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1
1

1

1942 slump. Analysis on the basis of the purpose
for which the loans were made, reveals a 56-percent
drop in loans for the building of new residential
structures, as compared with a maximum decline of
32 percent for any other classification.
Home-purchase loans became the backbone of all
home-financing operations, as almost 55 percent of
the total volume was for this purpose. The line
chart on page 140 indicates clearly the divergent
trends in the relative importance of construction and
home-purchase lending. By the end of the year,
only $1 out of every $8 was being used for new
construction, whereas almost $5 out of every $8 was
advanced to persons buying existing properties.
The proportion of loans for refinancing purposes—
approximately 16 percent—showed little change
throughout the year.
Greatest resistance to the downward trend in new
lending was found in the Pittsburgh, Cincinnati,
Topeka, and Indianapolis Districts, each of which
reported declines of less than 20 percent for institutions within their regions. At the other extreme, drops of more than 30 percent were noted
in the Portland and Des Moines regions.
There was considerable difference in the lending
business of the various classes of associations. This
reflected to a large extent the varying emphasis
placed in previous years on construction loans.
Federal associations, Svhich had been particularly
active in construction-financing operations, were the
hardest hit and their loan total declined 29 percent.
February 1943




Although new loans were still above one billion
dollars, the net gain in the mortgage-loan portfolios
of savings and loan association was not as large in
relation to their lending volume as in previous years.
Increased incomes in the hands of borrowers have
stimulated the rate of loan repayments, and there
are indications of a sizable loss of loans through
refinancing by other mortgage lenders. Taking the
record of insured associations as an example, these
institutions made new loans during the year of
approximately $670,000,000, and yet the net growth
in their mortgage accounts was only $120,000,000.
In other words, it was necessary to obtain more than
$5 of new loans to add $1 to the balance outstanding.
In 1941, with new loans amounting to $883,000,000,
these institutions were able to add $409,000,000 to
their books: a ratio of slightly more than $2 to $1.
Real-estate holdings of all savings and loan
associations continued to be liquidated at a rapid
pace. Total holdings are believed to have dropped
to less than $250,000,000, or about 4 percent of
aggregate resources at the end of the year.
ASSOCIATIONS BECOME M O R E LIQUID

Cash and Government-bond holdings of savings
and loan associations have been increasing steadily
during the past few years, and this trend was greatly
MORTGAGE LOANS MADE BY ALL
SAVINGS AND LOAN ASSOCIATIONS
MILLIONS
OF DOLLARS

1930 - 1942

1,600 |

-4H
11111111 111
I I I I I II II I Ml

I4I

NEW SHARE INVESTMENTS AND REPURCHASES
FROM INSURED SAVINGS AND LOAN ASSOCIATIONS

accentuated in 1942. The lower volume of new
lending, increased rate of payment of existing loans,
and the continued flow of new share capital, all combined to bring this about. Again judging from the
records of all insured associations, their cash and bond
portfolios have more than doubled in the past 2
years, and are now in excess of 12 percent of assets.
Insured associations in 1942 added almost $150,000,000 to their holdings of U. S. Government obligations, and the balance in this account is more than
four times that at the end of the previous year.
Nearly five-sixths of this gain was registered during
the second-half of last year.
At the same time that institutions have been
building up their cash and bond positions, they have
been retiring a substantial portion of their borrowed
money. Federal Home Loan Bank advances to
member savings and loan associations were reduced
$90,000,000 during the year. This was equal to
more than 40 percent of the amount outstanding at
the end of 1941. Additional repayments of approximately $16,000,000 during the first month of 1943
have reduced the balance of advances to $113,000,000
—the lowest point since May 1936.
SHARE CAPITAL AVAILABLE IN GOOD VOLUME

The stability of share capital under wartime conditions was one of the indeterminable factors at the
outset of 1942; but operations during the past year
have proved the mettle of these accounts, at least
in the case of insured associations for which current
data are available. New private investments received by all insured institutions during 1942 were
only slightly below 1941 totals and share repurchases
did not reflect any abnormal tendencies. Only in
142




January did the net balance of investments held by
the public show a decline; and for every month from
May through December the ratio of repurchases to
new investments was lower than in the corresponding
period of the previous year.
Another measure of activity in investment accounts—share capital turnover—also demonstrates
the continued stability of funds invested in savings
and loan associations. On the basis of preliminary
estimates, the turnover rate dropped from 22.4
percent in 1941 to 21.0 percent for the 12-month
period just ended. This is a reversal of the trend in
the 2 preceding years and, if continued, would indicate that the average dollar invested in these institutions is now remaining on the books for a longer
period of time.
An ample supply of new funds received from the
general public in both share and loan payments made
possible a further retirement of the Government
money which was invested in savings and loan associations during earlier years. At the beginning of
1942, shares held by the Treasury and HOLC
amounted to almost $200,000,000. Net retirement
in 1942 of shares held by these agencies totaled
$27,000,000, of which more than 58 percent was in
excess of contract schedules. There are indications
that repurchases of Government shares following the
December 1942 dividend declarations may be almost
double the volume retired during all of last year; and
that the amount still outstanding is in the neighborhood of only $125,000,000. This compares with original Government investments of over $270,000,000
in these institutions.
STRENGTHENING OF R E S E R V E S
AS noted in the December R E V I E W , 1941 was the
first time in several years that the dollar volume of
the reserve and undivided-profits accounts of all
savings and loan associations had increased from
one year-end to the next. Now that real-estateowned accounts of these institutions ha^e been reduced to more normal proportions, the pressure on
reserves to absorb the losses involved in the liquidation of property holdings has been somewhat eased.
This should bring about a continued increase in the
volume of reserves, and there is considerable likelihood
that when the summary of 1942 operations is complete, it will show that both the dollar volume and
the ratio of reserves to total assets were raised in the
past 12 months. This will reverse the trend evident in recent years when reserve ratios have been
declining.

Federal Home Loan Bank Review

T H E SAVINGS AND LOAN R O L E IN THE W A R EFFORT

Participation of savings and loan associations in
the war effort during 1942 was directed along three
principal avenues: the financing of needed home
construction in war-industry areas; the sale of war
bonds to the general public; and the purchase of
Government obligations with the surplus funds of
their own institutions.
Since May 1940, it is estimated that savings and
loan members of the Bank System have financed the
construction of 250,000 homes for workers in warindustry areas. As the restrictions on private building have become more stringent, the volume of construction lending has also been reduced, but even in
the last 3 months of 1942 savings and loan associations were advancing nearly $10,000,000 a month for
this purpose.
As the importance of this activity diminished,
savings and loan associations concentrated more of
their energy on the promotion of the war-bond campaign and on the acquisition of a substantial volume
of Government obligations for their own accounts.
By the end of the year 84 percent of all member
savings and loan associations and almost 96 percent
of all insured institutions were qualified to sell bonds

and stamps. War-bond sales in the second half of
the year were greater than the total from May 1941
through June 1942.
Despite a constant upward revision of the minimum standards, the R E V I E W ' S Honor' Roll of War
Bond Sales by members of the Federal Home Loan
Bank System has shown steady growth each month.
In the current list (see page 147) there are more
than 400 institutions which have cumulative sales
equal to at least 15 percent of their assets. There
are now 29 members which have passed the milliondollar mark in war-bond sales. The record of institutions on the Honor Roll represents an increasingly
significant contribution to the war effort.
The extent of bond purchases for association portfolios has already been covered, but it is interesting
to observe that more than one-third of the net
increase of private funds invested in insured savings
and loan associations was reinvested by those institutions in Government securities which are of direct
assistance in financing the Wrar. If the bondpurchase program outlined by the industry leaders
for the current year is achieved, the proportion of
the net increase of share investments converted into
Government issues will be substantially higher than
in 1942.

Rising Incomes Bring Higher Savings
•

E V E N with increased taxes and the rising cost of
living, the average American worker was in a
better position to save during 1942 than in previous
years. Wage payments rose steadily, reaching in the
last quarter an average of more than ten billion
dpllars per month, a figure never previously approached. As living costs, retarded by price-control
measures, were rising at a slower rate and the supply
of civilian goods was more and more restricted,
Americans found themselves with more money to
spend and fewer goods to buy.
This situation set the scene for an unprecedented
volume of savings, particularly in the last half of the
year. At the same time, the ever-increasing emphasis on war-financing needs brought a marked
change of normal savings patterns.
How

A R E AMERICANS SAVING?

A large, perhaps a major portion of all individual
savings was channeled into financing the War, either
directly or indirectly. Direct purchases of Series E,
F, and G war-savings bonds during 1942 exceeded
February 1943




$9,000,000,000. Sales of Series E bonds continued to
be the chief measure of the participation of individuals in war financing, accounting for approximately
two-thirds of the total of the three types of savings
bonds sold in the year. A substantial portion of the
$6,000,000,000 of Series E bonds acquired by individuals during 1942 was purchased through payroll
deductions. By the end of the year, such deductions
amounted to approximately $300,000,000 monthly.
Indirectly, individual savings placed in savings
accounts of banks, in savings and loan associations,
life insurance companies, and other reservoirs of
thrift were diverted to war financing through heavy
purchases of Government securities by financial
institutions. Some pledged themselves to use all
newly acquired long-term funds for the purchase of
Government obligations. In addition to buying up
to the legal limit of Series F and G bonds during the
early months of the year, many institutions participated heavily in floating other types of Government
issues. In December alone, financial institutions
acquired $5,000,000,000 of Government obligations.
143

SALES

OF

WAR

SAVINGS

BONDS

UNITED STATES - BY MONTHS

800

600

Source: U. S. Treosury

INSTITUTIONAL SAVINGS SHOW D I V E R G E N T T R E N D S

The flow of money into what may be called "regular" sayings channels showed varied trends in
1942. In the first half of the year, for example,
deposits of mutual savings banks continued a decline
first noted in 1941, and savings deposits in commercial banks insured by the F D I C dropped approximately $200,000,000.
Commencing in August,
however, long-term deposits of individuals in mutual
savings banks began an increase lasting throughout
the remainder of the year, resulting in a net gain of
$131,278,000 for the year as a whole. Total private
savings held by these institutions at the end of 1942
were $10,620,000,000—a new all-time peak. Keports
from commercial banks also indicate that similar
trends in the early months were also reversed in the
second half of the year.
Private repurchasable capital of insured savings
and loan associations increased from $2,598,000,000
to $2,983,000,000 in the 12-month period. This
dollar increase was slightly less than the total added
to share capital for the previous year, and the rate
of growth was lower than from 1940 to 1941.
Postal savings deposits rose sharply from
$1,314,000,000 at the end of 1941 to an estimated
figure of $1,414,000,000 at the end of 1942. These
deposits increased by only $10,000,000 from 1940 to
1941.
144




Although no 1942 data on savings in life insurance
companies are available, it was noted that life insurance sales, which rose to unprecedented heights after
the declaration of War and in January 1942, declined
below 1941 levels for the remaining months of the
year. The total volume of insurance sales was 14
percent less than during 1941.
T H E R E T U R N ON SAVINGS

The return on private savings continued the downward course which has been noted for several years.
For some institutions, of course, the rate already is
so low that a further decrease cannot be expected.
A comparison of rates paid by mutual savings banks
on June 30, 1941 with the return paid the following
year revealed a definite trend toward lower rates,
particularly among the group paying more than 2
percent. The average rate paid by these 540 institutions declined from 2.08 to 2.04 percent from June
1941 to June 1942. Institutions paying 2 percent or
less increased from 351 to 383 in this period.
I t is obvious from numerous surveys that dividend
rates paid by savings and loan associations were
following the general downward course of the return
on savings. A study of dividend rates charged by
292 savings and loan associations in Ohio, conducted
by the Federal Home Loan Bank of Cincinnati, disclosed that 168 institutions contemplated a reduction
in dividend rates to be paid on June 30, 1943.
Federal Home Loan Bank Review

Only one institution intended raising its rate and the
remaining 123 hoped to continue their present rate.
At the time of the survey, 77 of the institutions
were paying more than 3 percent on investments.
According to presently outlined plans, only 44 of the
77 will be paying rates of more than 3 percent on
June 30 of this year.
Twenty-seven associations in the group were paying rates less than 3 percent at the time of the survey.

By June 1943, two out of every five of the group may
pay less than 3 percent on share investments.
Reports from other parts of the country indicate a
similar tendency. I t is obvious that as mortgagelending activity decreases and surplus funds are
placed in types of investments bringing a lower
return, a large portion of all savings and loan associations will find it necessary to bring dividend rates into
line with current earnings.

Looking Ahead in 1943
•

"Business editors uncertain on 1943" said the
headline of the New York Times, and there is
little question that there are many "ifs" to obscure
the future outlook. While there is no doubt about
the ultimate victory for the cause of the United
Nations, the course of the War during the coming
months will exercise considerable influence on all
business operations. Despite these indeterminable
factors, it is possible to distinguish certain trends
which will affect the operations of thrift and homefinancing institutions and which are worthy of consideration in formulating operating policies for 1943.
On the whole, the country was only approaching
its maximum output by the end of last year, and this
fact presages an even greater year in 1943. National
income is expected to rise to the unprecedented high
of 135 billion dollars, or about 15 percent above the
1942 levels. Industrial production will more than
likely also show a 15-percent increase, and the
annual rate for the current year should double the
1935-1939 average. The output of durable goods,
now almost exclusively military items, will account
for all of this gain; and the manufacture of nondurable goods (most consumer products) will probably fall below the average for the past year. Manpower problems will continue to be of prime importance and, while additional millions will be added to
the armed forces, the shifting of workers from nonessential positions into war jobs and the increased
use of women will tend to maintain total employment at all-time high figures.
War expenditures during 1943 may reach 100
billion dollars, or approximately double the 1942
outlay. In terms of our gross national production
this will be equal to more than half the total output,
as compared with a ratio of about one-third during
the past year.
The pouring of such tremendous sums into the
economic system will inevitably bring considerable
February 1943
508401—43-




pressure for a further increase in the general price
level. Some additional rise is likely, but the new
Price Administrator has indicated that the movement will be "slow and well ordered." Additional
advances in wholesale prices and living costs are
not likely to exceed the gains registered in 1942.
T H E P E A K IN CONSTRUCTION IS P A S T

Now that most of the new war plants are in production, and the army and navy projects are completed or in the final stages, it is only natural that
1943 construction totals will reflect sharp declines
from the all-time record of almost 14 billion dollars
spent in 1942. A consensus of the forecasts by
Government and private agencies indicates that
the volume may be cut as much as 40 to 50 percent,
to a total of about 7% billion dollars.
The greatest cuts, of course, will be in nonresidential building, but the output of new homes will
also be reduced considerably from the 1942 level
which was already substantially below the recent
peak. The U. S. Department of Labor estimates
that the dollar volume of new residential construction
will be 40 percent below the 1941 level. In terms of
units, private nonfarm dwellings are expected to
drop from the 1942 total of 301,000 to something
in the vicinity of 200,000 units. Publicly financed
war housing may showr a slight gain for the year
as a whole, and account for a total of 175,000 units.
There will be even more emphasis on the use of
existing structures to provide the additional accommodations needed to house war workers. Both
private and Government-financed conversion projects
are being counted on to provide about one-half of
the new dwelling units made available during the
year.
Although the recent action of the War Production
Board and the National Housing Agency indicates
KB

some relaxing of the standards for war-housing construction, 1 there is little likelihood that the controls
over new building will become less stringent to any
marked degree. Almost a million workers employed
on construction projects last year will be released,
but it is hoped that many of these men may be used
to run the plants they were building in 1942. Manpower shortages, as well as the continued scarcity
of critical materials, preclude any resumption of
normal residential building activity in the near
future.
COMPETITION

IN

THE

MORTGAGE

MARKET

WILL

INCREASE

In view of the continued restrictions on new construction, opportunities for new mortgage loans
during the coming year will be limited to those
involving the purchase of existing houses, the refinancing of present mortgages, the conversion of
apartments for war workers, or the financing of
necessary repairs. At the same time, lenders will
receive an even larger volume of mortgage repayments in advance of contract requirements as a
result of further increases in the income of the
average mortgagor. The combination of these
factors will result in increasingly keen competition
in the mortgage market.
Even though the volume of mortgages recorded
during the year may be fairly well maintained, this
could result from the transfer of mortgages from one
lender to another; and, for the year as a whole,
there may well be a net decline in the total volume
of mortgage-loans outstanding.
T H E T R E N D IN D I V I D E N D R A T E S IS DOWNWARD

There is already substantial evidence to support
the conclusion that dividend rates will be reduced
considerably during the coming year, as institutions
become more liquid and as earning capacities are
affected by the increased proportion of loweryielding, risk-free assets such as Government bonds.
Some institutions will find it necessary to reduce
dividends to maintain the spread between these rates
and the falling level of interest rates. Others believe
it important to take advantage of present low money
rates to build up reserves against future contingencies. Still another group is carrying out this
policy as a preferred method of stemming the flow of
new funds into their institutions, rather than refusing
to accept money which is offered for investment.
i See "The Home Front," inside front cover.

146




Whichever the motive, there is little doubt that the
average rates paid by savings and loan associations
during the coming year will be lower than in 1942.
T H E P R E S E N T AND THE FUTURE

Managing officers and boards of directors are confronted with two distinct types of problems in
operating under wartime conditions:
Of immediate importance are those which relate to
the day-to-day functioning of their institutions.
Problems such as increased operating costs resulting
from the aggressive promotion of the war-bond program, or from the decreased efficiency of inexperienced personnel, are typical of current questions in
the center of discussion. So also are policy decisions
on the revision of interest and dividend rates to meet
competitive conditions in current operations. Likewise, there is the problem of preparing a comprehensive public relations program for keeping the
name and purpose of an institution before the general
public as a constant reminder of its services and
facilities. Surmounting all of these, however, is the
necessity for doing everything within reason to make
easier the task of winning the War.
The other type of problem—planning for post-w^ar
operations—is also deserving of careful consideration. Plans should be drafted now to meet the challenge that faces all mortgage-lending institutions in
meeting the post-war needs in housing and home
financing. The existence of a tremendous pent-up
demand for new homes was demonstrated during the
past year by a special survey of the United States
Chamber of Commerce and a published report of the
National Resources Planning Board. If the construction of residential structures is to keep pace
with a demand estimated at more than one million
units per year, most leaders in the industry foresee
extensive changes in financing methods as well as in
building techniques. Whether private mortgagelending institutions will be prepared to handle home
financing on a large-scale basis will depend upon the
plans which are formulated during the present period
of relative inactivity.
The effective execution of present-day operating
policies is all-important in making certain that institutions will be in sound financial condition at the end
of the War; but unless constructive thinking is at the
same time directed toward the solution of post-war
problems, a resumption of building activity after the
emergency may find many institutions unprepared to
assume the leadership which w^ould otherwise be
theirs.
Federal Home Loan Bank Review

HONOR ROLL OF WAR BOND SALES
December sales of war bonds and
stamps by all members of the System
were the second highest for any month
during 1942, and brought the cumulative total of their sales well above the $300,000,000mark. The year-end tabulation reveals that 410
members had made cumulative sales equal to at
least 15 percent of their assets, and that one out of
three of these institutions had already passed the
25-percent goal.
There are now nine savings and loan associations
whose sales records exceed their own volume of
resources, and one organization—the Acme Savings
and Loan Association, of Milwaukee, Wisconsin—
sold an amount of bonds almost equal to four times
its present assets! December sales of $876,000 by
this institution were the largest volume reported by
any member during the month.
First place in cumulative sales to December 31
was held by the Citizens Federal Savings and Loan
Association of Dayton, Ohio, which barely nosed
out the leader at the end of November- -the First
Federal Savings and Loan Association of Chicago,
Illinois.
A N E W START IN A NEWT YEAR

The R E V I E W ' S Honor Roll of War Bond Sales for
1943 will be on a new basis designed to give every
member institution fresh opportunity to qualify.
The goal will be based on the current volume of sales
made, with a minimum quota of 1 percent of assets
per month. To be eligible for the Honor Roll to be
published in the next issue, a member must have
made sales during the month of January equal to 1
percent of assets at the beginning of the year. The
following month the goal will be a cumulative total
of 1943 sales equal to 2 percent; and it will then be
raised 1 percent each month throughout the remainder of the year.
The "Tops in Volume" record will be maintained
in its present form, except that it will be based on
19Jj3 sales alone.
All figures will be based on the issue price of the
bonds, and will include only sales made to the public.
Separate recognition will be given to the splendid
record which members are making in the purchase of
various Government bonds for their portfolios.
For the Honor Roll listed below^, however, one
asterisk denotes sales of 20 to 25 percent of assets,
February 1943




with an additional star for each 5 percent over that
amount. Italics indicate sales equal to 100 percent
of association assets, and bold-face type signifies
300-percent sales, with one asterisk for each additional 5 percent in both categories. (Maturity
values have been used in the case of appreciation
bonds.) .
NO. 1—BOSTON
Branford Federal Savings and Loan Association, Branford, Conn.
Bristol Federal Savings and Loan Association, Bristol, Conn.
***Windsor Federal Savings and Loan Association, Windsor, Vt.
Telephone Workers' Building and Loan Association, Providence, R. I.
******** Windsor Locks Building and Loan Association, Windsor Locks, Conn
NO. 2—NEW YORK
***Amsterdam Federal Savings and Loan Association, Amsterdam, N. Y.
Black Rock-Riverside Savings and Loan Association, Buffalo, N. Y.
**Broad Avenue Building and Loan Association, Palisades Park, N. J.
Bronx Federal Savings and Loan Association, Bronx, N. Y.
Caldwell Building and Loan Association, Caldwell, N. J.
******Center Savings and Loan Association, Clifton, N. J.
Central Savings and Loan Association, Albany, N. Y.
*Cranford Savings and Loan Association, Cranford, N. J.
East Rochester Federal Savings and Loan Association, East Rochester, N. Y.
***Economia Savings and Loan Association, Trenton, N. J.
First Federal Savings and Loan Association, New York, N. Y.
First Federal Savings and Loan Association, Rochester, N. Y.
Genesee County Savings and Loan Association, Batavia, N. Y.
*Jackson Heights Savings and Loan Association, Jackson Heights, N. Y.
****Long Beach Federal Savings and Loan Association, Long Beach, N. Y.
*Maywood Savings and Loan Association, May wood, N. J.
New Brighton Savings and Loan Association, St. George, N. Y.
*North Belleville Savings and Loan Association, Belleville, N. J.
North Park Savings and Loan Association, Elizabeth, N. J.
****Owego Federal Savings and Loan Association, Owego, N. Y.
*Schuyler Building and Loan Association, Kearny, N. J.
*******Shepherd Savings and Loan Association, East Orange, N. J.
Summit Federal Savings and Loan Association, Summit, N. J.
**Totowa Savings and Loan Association, Paterson, N. J.
Union City Savings and Loan Association, Union City, N. J.
United Savings and Loan Association, Paterson, N. J.
* Volunteer Building and Loan Association, Little Ferry, N. J.
Walton Savings and Loan Association, Walton, N. Y.
No. 3—PITTSBURGH
Alvin Progressive Federal Savings and Loan Association, Philadelphia, Pa.
*Brentwood Federal Savings and Loan Association, Pittsburgh, Pa.
Cayuga Federal Savings and Loan Association, Philadelphia, Pa.
***Colonial Federal Savings and Loan Association, Philadelphia. Pa.
**Ellwood City Federal Savings and Loan Association, Ellwood City, Pa.
Fidelity Federal Savings and Loan Association, Philadelphia, Pa.
First Federal Savings and Loan Association of Bucks County, Bristol, Pa.
*First Federal Savings and Loan Association, Homestead, Pa.
First Federal Savings and Loan Association, Logan, W. Va.
First Federal Savings and Loan Association of South Philadelphia, Philadelphia,
Pa.
**First Federal Savings and Loan Association, Wilkes-Barre, Pa.
*******First Federal Savings and Loan Association, Wilmerding, Pa.
**Franklin Federal Savings and Loan Association, Pittsburgh, Pa.
Girard Federal Savings and Loan Association, Philadelphia, Pa.
Grand Union Federal Savings and Loan Association, Philadelphia, Pa.
Hazleton Federal Savings and Loan Association, Hazleton, Pa.
**Lansdowne Federal Savings and Loan Association, Lansdowne, Pa.
Liberty Federal Savings and Loan Association, Philadelphia, Pa.
Metropolitan Federal Savings and Loan Association, Philadelphia, Pa.
******Mid-City Federal Savings and Loan Association, Philadelphia, Pa.

I47

•Mutual Building and Loan Association, Erie, Pa.
*North Philadelphia Federal Savings and Loan Association, Philadelphia, Pa.
Reliance Federal Savings and Loan Association, Philadelphia, Pa.
*******United Federal Savings and Loan Association, Morgantown, W. Va.
West Philadelphia Federal Savings and Loan Association, Philadelphia, Pa.
NO. 4—WINSTON-SALEM
•Atlantic Federal Savings and Loan Association, Baltimore, Md.
••••Bohemian American Building Association, Baltimore, Md.
"•Bohemian Building Loan and Savings Association "Slavie", Baltimore, Md.
•Carrollton Fedeial Savings and Loan Association, Carrollton, Ga.
Citizens Federal Savings and Loan Association, Rutherfordton, N. C.
Coral Gables Federal Savings and Loan Association, Coral Gables, Fla.
Elkin-Jonesville Building and Loan Association, Elkin, N. C.
•First Federal Savings and Loan Association, Andalusia, Ala.
••First Federal Savings and Loan Association, Bessemer, Ala.
•First Federal Savings and Loan Association, Columbus, Ga.
************First F e d e r a i Savings and Loan Association, Cordele, Ga.
•First Federal Savings and Loan Association, Darlington, S. C.
•••First Federal Savings and Loan Association, Decatur, Ala.
•First Federal Savings and Loan Association, Eustis, Fla.
First Federal Savings and Loan Association, Forest City, N. C.
•First Federal Savings and Loan Association, Gastonia, N. C.
First Federal Savings and Loan Association, Griffin, Ga.
First Federal Savings and Loan Association, Huntsville, Ala.
First Federal Savings and Loan Association, Jasper, Ala.
First Federal Savings and Loan Association, Lancaster, S. C.
••First Federal Savings and Loan Association, Montgomery, Ala.
••••••First Federal Savings and Loan Association, Phenix City, Ala.
First Federal Savings and Loan Association, Rock Hill, S. C.
First Federal Savings and Loan Association, Sumter, S. C.
First Federal Savings and Loan Association, Winder, Ga.
••Fitzgerald Federal Savings and Loan Association, Fitzgerald, Ga.
•***Fort Hill Federal Savings and Loan Association, Clemson, S. C.
***Gate Chy Building and Loan Association, Greensboro, N. C.
•Home Building and Loan Association, Dunn, N. C.
***************jj ome Balding and Loan Association, Easley, S. C.
Lake Worth Federal Savings and Loan Association, Lake Worth, Fla.
••Lithuanian Federal Savings and Loan Association, Baltimore, Md.
Meriwether Federal Savings and Loan Association, Manchester, Ga.
•••Moultrie Federal Savings and Loan Association, Moultrie, Ga,
Mutual Building and Loan Association, Martinsville, Va.
Mutual Building and Loan Association, Pensacola, Fla.
•New Home Building and Loan Association, Rocky Mount, N. C.
Peoples Building and Loan Association, Whiteville, N. C.
••Peoples Miutual Building and Loan Association, Mt. Gilead, N. C.
Raleigh Building and Loan Association, Raleigh, N. C.
••Southern Pines Building and Loan Association, Southern Pines, N. C.
Tallahassee Federal Savings and Loan Association, Tallahassee, Fla.
•••••••Tifton Federal Savings and Loan Association, Tifton, Ga.
Workmen's Federal Savings and Loan Association, Mt. Airy, N. C.
NO. 5—CINCINNATI
•Anderson Ferry Building and Loan Company, Cincinnati, Ohio
••Bedford Savings and Loan Company, Bedford, Ohio
•Chagrin Falls Savings and Loan Company, Chagrin Falls, Ohio
Citizens Savings and Loan Company, Akron, Ohio
••Citizens Federal Savings and Loan Association, Dayton, Ohio
Cleveland Federal Savings and Loan Association, Cleveland, Tenn.
Cookeville Federal Savings and Loan Association, Cookeville, Tenn.
Covington Building and Loan Association, Covington, Ohio
Doan Savings and Loan Company, Cleveland, Ohio
•East Cleveland Savings and Loan Company, East Cleveland, Ohio
•••First Federal Savings and Loan Association, Bucyrus, Ohio
First Federal Savings and Loan Association, Covington, Ky.
First Federal Savings and Loan Association, Defiance, Ohio
First Federal Savings and Loan Association, Dickson, Tenn.
•First Federal Savings and Loan Association, Galion, Ohio
•••First Federal Savings and Loan Association, Greeneville, Tenn.
•••••First Federal Savings and Loan Association, Hopkinsville, Ky.
•••••First Federal Savings and Loan Association, Lorain, Ohio
•First Federal Savings and Loan Association, Van Wert, Ohio
First Federal Savings and Loan Association, Warren, Ohio
•Glandorf-Gerinan Building and Loan Company, Glandorf, Ohio
Great Northern Building and Loan Company, Barberton, Ohio
Hancock Savings and Loan Company, Findlay, Ohio
H. B. Smith Building and Loan Company, Fremont, Ohio

148




••Hickman Federal Savings and Loan Association, Hickman, Ky,
Hicksville Building Loan and Savings Company, Hicksville, Ohio
Home Savings and Loan Company, Columbiana, Ohio
Home Loan and Savings Company, Coshocton, Ohio
Home Federal Savings and Loan Association, Knoxville, Tenn.
•Hopkinsville Federal Savings and Loan Association, Hopkinsville, Ky.
•Lincoln Heights Savings and Loan Company, Cleveland, Ohio
Logan Federal Savings and Loan Association, Logan, Ohio
McArthur Savings and Loan Company, McArthur, Ohio
McKinley Federal Savings and Loan Association, Niles, Ohio
Murfreesboro Federal Savings and Loan Association, Murfreesboro, Tenn.
Newport Federal Savings and Loan Association, Newport, Tenn.
•North Hill Savings and Loan Company, Akron, Ohio
•Ohio Savings and Loan Association, Fostoria, Ohio
Orol Federal Savings and Loan Association, Lakewood, Ohio
Orleans Federal Savings and Loan Association, Cleveland, Ohio
Peoples Savings and Loan Association, Cleveland, Ohio
•Peoples Federal Savings and Loan Association, Leetonia, Ohio
Pleasant Ridge Building and Loan Company, Cincinnati, Ohio
••Progress Savings and Loan Company, Cleveland, Ohio
St. Clair Savings and Loan Company, Cleveland, Ohio
St. Hyacinths Savings and Loan Association, Cleveland, Ohio
••Surburban Federal Savings and Loan Association, Covington, Ky.
•••••Tatra Savings and Loan Company, Cleveland, Ohio
Third Federal Savings and Loan Association, Cleveland, Ohio
•••Ukrainian Savings Company, Cleveland, Ohio
Van Wert Federal Savings and Loan Association, Van Wert, Ohio
•Versailles Building and Loan Company, Versailles, Ohio
•••••Warsaw Savings and Loan Association, Cleveland, Ohio
•West Jefferson Building and Loan Company, West Jefferson, Ohio
NO. 6—INDIANAPOLIS
American Building and Aid Association #6, Madison, Ind.
•••Bedford Federal Savings and Loan Association, Bedford, Ind.
Charlotte Federal Savings and Loan Association, Charlotte, Mich.
Citizens Federal Savings and Loan Association, Port Huron, Mich.
Crawfordsville Building Loan Fund and Savings Association, Crawfordsville,
Ind.
•••••Detroit Federal Savings and Loan Association, Detroit, Mich.
East Chicago Federal Savings and Loan Association, East Chicago, Ind.
Fayette Federal Savings and Loan Association, Connersville, Ind.
First Federal Savings and Loan Association, Indianapolis, Ind.
First Federal Savings and Loan Association, Kokomo, Ind.
First Federal Savings and Loan Association, Logansport, Ind.
First Federal Savings and Loan Association, Tipton, Ind.
•First Federal Savings and Loan Association, Washington, Ind.
••••Griffith Federal Savings and Loan Association, Griffith, Ind.
Homestead Loan and Building Association, Albion, Mich.
Howell Building and Loan Association, Evans ville, Ind.
•Indiana Loan Association, Nobelsville, Ind.
Indiana Savings and Loan Association of Indiana Harbor, East Chicago, Ind.
••••Liberty Savings and Loan Association, Whiting, Ind.
Loogootee Federal Savings and Loan Association, Loogootee, Ind.
••••Marshall County Building and Loan Association, Plymouth, Ind.
••Monon Building Loan and Savings Association, Monon, Ind.
Mooresville Federal Savings and Loan Association, Mooresville, Ind.
Muskegon Federal Savings and Loan Association, Muskegon, Mich.
Niles Federal Savings and Loan Association, Niles, Mich.
Ottawa County Building and Loan Association, Holland, Mich.
••Peoples Federal Savings and Loan Association, East Chicago, Ind.
••Peoples Savings and Loan Association, Huntington, Ind.
••Peoples Federal Savings and Loan Association, Monroe, Mich.
Peoples Federal Savings and Loan Association, Royal Oak, Mich.
•Port Huron Loan and Building Association, Port Huron, Mich.
••••••Sobieski Federal Savings and Loan Association, South Bend, Ind.
••Twleve Points Savings and Loan Association, Terre Haute, Ind.
•Wayne County Federal Savings and Loan Association, Detroit, Mich.
NO. 7—CHICAGO
****************Acme g a v i n g s a n < j Loan Association, Milwaukee, Wis.
Austin Federal Savings and Loan Association, Chicago, 111.
•Avondale Building and Loan Association, Chicago, 111.
Chicago Heights Federal Savings and Loan Association, Chicago Heights, 111.
•••••••City Savings and Loan Association, Chicago, 111.
•Clyde Savings and Loan Association, Cicero, 111.
Columbus Savings and Loan Association, Chicago, 111.
•Concord Savings and Loan Association, Chicago, 111.

Federal Home Loan Bank Review

Continental Savings and Loan Association, Chicago, III.
***Cook County Federal Savings and Loan Association, Chicago, 111,
****** Copernicus Building and Loan Association, Chicago, 111.
**Cragin Savings and Loan Association, Chicago, 111.
•Cudahy Savings and Loan Association, Cudahy, Wis.
Damen Savings and Loan Association, Chicago, 111.
Du Quoin Home Loan Association, Du Quoin, 111.
*Fairfield Savings and Loan Association, Chicago, 111.
*******First Calumet City Savings and Loan Association, Calumet City, 111.
* First Federal Savings and Loan Association, Chicago, 111.
•First Federal Savings and Loan Association, Des Plaines, 111.
* First Federal Savings and Loan Association, Moline, 111.
First Federal Savings and Loan Association, Shelbyville, 111.
* Flora Mutual Building Loan and Homestead Association, Flora, 111.
***************** George Washington Savings and Loan Association, Chicago, III.
* Grand Crossing Savings and Building Loan Association, Chicago, 111.
* Guaranty Savings and Loan Association, Chicago, 111.
Guaranty Savings and Loan Association, Milwaukee, Wis.
****************Haller Savings and Loan Association, Chicago, 111.
*********Harvey Federal Savings and Loan Association, Harvey, 111.
Hemlock Savings and Loan Association, Chicago, 111.
*********Homewood Building and Loan Association, Homewood, 111.
****** investors Savings and Loan Association, Chicago, 111.
••Jackson County Federal Savings and Loan Association, Black River Falls, Wis.
••Jugoslav Savings and Loan Association, Chicago, 111.
Lawn Savings and Loan Association, Chicago, 111.
•••••••••Lawndale Savings and Loan Association, Chicago, 111.
•Lawn Manor Building and Loan Association, Chicago, 111.
Liberty Savings and Loan Association, Chicago, 111.
•**Libertyville Federal Savings and Loan Association, Libertyville, 111.
•Lombard Building and Loan Association, of DuPage County, Lombard, 111.
••Merchants and Mechanics Building and Loan Association, Springfield, 111.
•Midwest Savings and Loan Association, Chicago, 111.
Morton Park Federal Savings and Loan Association, Cicero, 111.
Mt. Vernon Loan and Building Association, Mount Vernon, 111.
••••Naperville Building and Loan Association, Naperville, 111.
Naprstek Savings and Loan Association, Chicago, 111.
•Narodni Savings and Loan Association, Chicago, 111.
National Savings and Loan Association, Milwaukee, Wis.
••New City Savings and Loan Association, Chicago, 111.
••New London Savings and Loan Association, New London, Wis.
•North Shore Building and Loan Association, North Chicago, 111.
•North Side Federal Savings and Loan Association, Chicago, 111.
Northwestern Savings and Loan Association, Chicago, 111.
Ogden Federal Savings and Loan Association, Berwyn, 111.
•Peerless Federal Savings and Loan Association, Chicago, 111.
•Prairie State Savings and Loan Association, Chicago, 111.
Prospect Federal Savings and Loan Association, Chicago, 111.
•••Pulaski Savings and Loan Association, Chicago, 111.
Reliance Federal Savings and Loan Association, Chicago, 111.
••••••Richland Center Federal Savings and Loan Association, Richland Center,
Wis.
Ripon Federal Savings and Loan Association, Ripon, Wis.
Second Federal Savings and Loan Association, Chicago, 111.
Security Federal Savings and Loan Association, Chicago, 111.
•••Springfield Building and Loan Association, Springfield, 111.
•••St. Anthony Savings and Loan Association, Cicero, 111.
••••Sturgeon Bay Building and Loan Association, Sturgeon Bay, Wis.
Talman Federal Savings and Loan Association, Chicago, 111.
Union Federal Savings and Loan Association, Kewanee, 111.
••Universal Savings and Loan Association, Chicago, 111.
••Uptown Federal Savings and Loan Association, Chicago, 111.
•••Valentine Federal Savings and Loan Association, Cicero, 111.
•••West Highland Savings and Loan Association, Chicago, 111.
••West Pullman Savings and Loan Association, Chicago, 111.
NO. 8—DES MOINES
•Burlington Federal Savings and Loan Association, Burlington, Iowa
First Federal Savings and Loan Association, Fargo, N . Dak.
•••••••First Federal Savings and Loan Association, Jamestown, N . Dak.
•First Federal Savings and Loan Association, Rock Rapids, Iowa
•First Federal Savings and Loan Association, Sioux City, Iowa
•Home Building and Loan Association, Marion, Iowa
•Independence Savings and Loan Association, Independence, Mo.
••Insurance Plan Savings and Loan Association, Mount Pleasant, Iowa
Lake City Federal Savings and Loan Association, Lake City, Minn.
••••••Owatonna Federal Savings and Loan Association, Owatonna, Minn.

February 1943




***Perry Federal Savings and Loan Association, Perry, Iowa
Postal Employees Building Loan and Savings Association, St. Louis, Mo.
Provident Building and Loan Association, St. Joseph, Mo.
Public Service Company's Savings and Loan Association, Kansas City, Mo.
Sentinel Federal Savings and Loan Association, Kansas City, Mo.
Slayton Building and Loan Association, Slayton, Minn.
St. Joseph Savings and Loan Association, St. Joseph, Mo.
NO. ! - L I T T L E ROCK
•••Amory Federal Savings and Loan Association, Amory, Miss.
•Argenta Building and Loan Association, North Little Rock, Ark.
•••••••Atlanta Federal Savings and Loan Association, Atlanta, Tex.
•••••Batesville Federal Savings and Loan Assocation, Batesville, Ark.
Bell County Federal Savings and Loan Association, Belton, Tex.
•Brownwood Federal Savings and Loan Association, Brownwood, Tex.
•••••Clay County Federal Savings and Loan Association, West Point, Miss.
•Colorado Federal Savings and Loan Association, Colorado, Tex.
Conroe Federal Savings and Loan Association, Conroe, Tex.
•Delta Federal Savings and Loan Association, Greenville, Miss.
*******Deming Federal Savings and Loan Association, Deming, N.Mex.
**************** Plectra Federal Savings and Loan Association, Dallas, Tex.
••El Paso Federal Savings and Loan Association, El Paso, Tex.
Equitable Building and Loan Association, Roswell, N . Mex.

(Continued on p. 168)

Tops in Volume
The 25 member institutions which have reported the largest cumulative
sales of war-savings bonds and stamps through December 31
1. Citizens Federal Savings and Loan Association, Dayton, Ohio
2. First Federal Savings and Loan Association, Chicago,
111
3. Old Colony Co-operative Bank, Providence, R. I
4. Bloomfield Savings Institution, Bloomfield, N . J
5. Edison Savings and Loan Association, New York, N. Y .
6. First Federal Savings and Loan Association, New York,
N. Y._
7. Acme Savings and Loan Association, Milwaukee, Wis_
8. First Federal Savings and Loan Association, Rochester,
N. Y
9. Trenton Savings Fund Society, Trenton, N . J
10. Harvey Federal Savings and Loan Association, Harvey,
111- —
11. Minnesota Federal Savings and Loan Association, St.
Paul, Minn
12. Worcester Co-Operative Federal Savings and Loan
Association, Worcester, Mass
13. Colonial Federal Savings and Loan Association, Philadelphia, Pa
14. Pacific First Federal Savings and Loan Association,
Tacoma, Wash
15. Home Federal Savings and Loan Association, Tulsa,
Okla
16. Railroad Fedeial Savings and Loan Association, New
York, N . Y
.
17. Railroadmen's Federal Savings and Loan Association,
Indianapolis, Ind
18. Fourth Federal Savings and Loan Association, New
York, N . Y
19. Talman Federal Savings and Loan Association,
Chicago, 111
20. Perpetual Building Association, Washington, D. C
21. Gem City Building and Loan Association, Dayton,
Ohio_„
22. First Federal Savings and Loan Association, Miami,
Fla
23. Peoples Federal Savings and Loan Association, Peoria,
111
24. Dime Savings Institution, Newark, N . J
25. First Federal Savings and Loan Association, Youngstown, Ohio
.

$2,908,701
2,898,018
2,476,748
2,472,862
2,388,369
2,369,268
2,358,915
2,223,860
2,041,871
1,929,202
1,820,237
1,810,541
1,764,620
1,759,204
1,751,063
1,591,532
1,475,254
1,448,136
1,418,312
1,353,749
1,348,175
1,313,964
1,280,566
1,164,674
1,149,093

I49

RESIDENTIAL BUILDING ACTIVITY AND SELECTED INFLUENCING FACTORS
1935-1939 = 100

INDEX

BY YEARS

280

i
'
ADJUSTED

1

260

1

240
1

'|

200

1

1

1

1

1

260

1 1 11

!

FAMILY DWELLING UNITS

240
220

\

—s

160

(u

Sw

2

FAMILY DWELLING UNITS

S. DEPT OF LABOR RECORDS)

-

J

—-V

1

A
\,J,y- Tv

N/l/

j

j

|/

f

120
JL

V

•

.*** i

ft

I

f\AAI

1

x.... ••••••**

40

*'*' f\
/
f

I

|. _ !i ."

0
140

80

1

60

FORECLOSURES-** N .

i

1

^—

40

—

1
i

i

1

1 1

i

1

i

'

1 i

1

1 1

>

. i

|

i

...I

|

BUILDING MATERIAL PRICES^
j£

|

,, I , ,

, i

I

t

,

!

i

...i......i....J.>'--|"
rL_
„_i
V
!

*~REt

1

1 1

I

BUILDING MATERIAL PRICES^

120

20

i

^

~\

|(L). S. DEPARTMENT OF LABOR)

100

—

^

(FEOERAL HOME LOAN BANK ADMIN.)

1

20

-V-

1

-^

•

i

200

-

i

i

i

i

'
ADJUSTED

i

1 • 1li

i

120

80

l

(NATIONAL INDUSTRIAL CONFERENCE BOARD)

0
140

100

I

>RENTS-

80

120

'"

i

i
MONFARM

A

100

i

1 !
1

60

140

/*•• ..••••.

IN.

\

160

1

—\

LENC//V(?

'

HOME LC)AN BAN K A D M I N . ) _ _ _ ^ >

\i \

80

••

/

180

!

••"•••

SVGS.SLOA NLEh DING \ .
/F"DFRAI

X |

200

! s

4^1

PRIVATE CONSTRUCTION
1 a

*

!
!

i

i

180

1 & 2

!
I

i

|

100

280

i
i
FOR SEASONAL VARIATION

-PRIVATE CONSTRUCTION^
i
I

220

140

BY> MONTHS
i
i

1

I

i

i

i

'
'i
- r
1
1
FOR SEASONAL VARIATION

i

1

^Hr

,.•••

60
200

I*** ^

180

T"H'^

-INC USTiRIAL PRODUCTION*

160

180

^ 1

160

1.....„ZL_

140

140

INDUSTRIAL PRODUCTION
...•••

120

120

INCCME 1W M ENTS

100

iOO

80
60

80
1930

'31

'32

'33

'34

'35

'36

INDEX COST OF STANDARD SIX-ROOM HOUSE
135

'37

'38

'39

' 4 0 '41

-^

i

i

-L_L_

1940

WHOLESALE COMMODITY PRICES

1 1

i 1

i

,

—L--L-

1941




i

i

i

, ; , ,
1942

""V

60

M^ONS EH.LB. ADVANCES OUTSTANDING

1 9 3 5 - 1 9 3 9 = 100

JAN. FEB. MAR. APrt. MAY

150

,

JUN. JUL. AUG. SEP OCT NOV. DEC.

Federal Home Loan Bank Review

< «

«

M O N T H L Y

SURVEY

HIGHLIGHTS
/. Trends in the major indexes of home-financing activity followed the normal seasonal patterns during December.
A. The total nonfarm mortgages of $20,000
or less recorded throughout the country dropped almost 5 percent from November
to a level of 265 million dollars.
This was 32 percent below the volume in the same month of 1941.
B. Mortgage loans by all savings and loan associations were down 5 percent, a normal decline for this period of the year. A
slight increase was noted in refinancing loans.
II. Residential construction continued at relatively low levels, and permits for December were 17 percent lower than in November.
The seasonally adjusted index of private home-building activity showed a small rise in the final month of the year, but was
60 percent below the same month in 1941, and more than 30 percent below the average for the period from 1935 to 1939.
III. There were only fractional changes noted in building costs during the month. Data on the cost of constructing the standard 6-room
frame house showed mixed trends as labor costs increased and material charges declined. Wholesale prices of building materials
were slightly lower than in November.
IV. Cash and Government-bond holdings of all insured savings and loan associations rose sharply during the second half of 1942, and
accounted for approximately 12 percent of total assets at the close of the year. Bond holdings jumped $150,000,000
during
the past year, and an additional $50,000,000
was added to the cash balances of these institutions,
V. The December Victory Fund Campaign climaxed the greatest year of Government financing yet recorded.
Almost 13 billion dollars
was raised during the month. Sales of more than $726,000,000
of Series E bonds set a new high in the distribution of these bonds.

SUMMARY
With indexes of general business activity continuing in December to rise to new heights under the
stimulus of the war effort, the Nation's total income
was swelled to another unprecedented level. That
a large proportion of the resulting excess purchasing
power is being siphoned into savings is revealed by
the fact that during December $726,000,000 in
Series E war bonds were sold to the public—a new
monthly record for such sales.
Although current data on savings being received
by private financial institutions are scattered, it
appears that the volume continued unabated as the
year drew to a close. Insured savings and loan
associations reported a greater excess of new share
investments over repurchases during December than
in any previous month since the inauguration of the
Federal Savings and Loan Insurance Corporation.
The mutual savings banks and postal savings accounts also showed a substantial increase in new
savings over withdrawals. Similar statistics for
other types of financial institutions are not yet
available.
The inflow of private capital into mortgage-lending
institutions has been accompanied by a drying up of
normal investment outlets. Mortgage recordings
declined seasonally in December to a level one-third
lower than in the same month of 1941. All classes
of lenders shared in the 5-percent reduction from
November, as well as in the curtailment from a year
ago.
February 1943




Preliminary compilations of the year-end balance
sheets of all insured savings and loan associations revealed a substantial increase in the liquidity position
of these institutions. Cash and Government-bond
holdings of all insured associations amounted' to
$450,000,000 at the end of 1942, or 12 percent of their
aggregate assets, and compares with a ratio of 7 percent a year previous. Government-bond portfolios
jumped from 44 to 193 million dollars, and cash on
hand increased from 206 to 256 million. Repayment
of Federal Home Loan Bank advances and other
borrowed money, as well as a reduction in the balance
of the loans-in-process account, have also bad favorable effects on the liquidity position.
Trends in general business conditions were all upward: The Federal Reserve Board index of industrial
production reached 196 percent of the 1935-1939
average. December department store sales were 11
[1935-39 = 100]
Dee.
1942

Nov.
1942

65.8
64.8
21. 9
'23.4
111.3
111.3
122.8
122.9
119. 7
120. 4
» 196. 0 ' 194. 0
162.4 ' 158. 2
293.5 r 286. 1
190.4 ' 186. 4

Percent
change
+1.5
-6.4
0.0
-0.1
-0.6
+1.0
+2.7
+2.6
+2.1

Dec.
1941
162.9
32.4
110.2
120.4
169.8
168.0
141.2
201.0
151.9

Percent
change
-59. 6
-32.4
+1.0
+2.0
-29. 5
+16. 7
+15.0
+46.0
+25.3

p Preliminary.
Revised.
i Adjusted for normal seasonal variation.

r

I5I

percent higher than a year ago. National income
payments amounted to more than 11 billion dollars,
bringing the cumulative total for the year to more
than 114 billion dollars.

BUILDING ACTIVITY-P ermits were

Construction costs for the standard house
[Average month of 1935-1939=100]
Element of cost
Material
Labor

17 percent below November totals

_ __

Total

Dec.
1942

Nov.
1942

Percent
change

Dec,
1941

Percent
change

121. 4
130. 7

121. 5
130. 2

-0. 1
+ 0. 4

117. 7
124. 2

+ 3. 1
+ 5.2

124. 5

124. 4

+ 0. 1

119. 9

+ 3. 8

Residential-construction activity continued in December at a low level when compared with the high
rate of home-building activity in the year preceding
our entry into the War. The estimated 11,300 new
dwelling units provided in all urban areas during the
month represent a decline of 17 percent from November and 42 percent from December 1941. Private
construction, which accounted for more than twothirds of the December volume, evidenced a smaller
drop from November than did publicly financed
housing-—15 percent as against 21 percent.
Although the construction of privately financed 1and 2-family dwellings declined 17 percent from November, the seasonally adjusted index rose 1.5 percent to 65.8 (1935-1939=100), a point 60 percent
below the level of this index in December 1941.

For individual cities, costs involved in the construction of a standard house were generally higher
in the last quarter of the year. Of the 22 cities
reporting, 6 indicated no change, 3 registered declines, and 13 reported increases in the OctoberJanuary interval.
Wholesale building material prices as reported by
the U. S. Department of Labor moved downward
fractionally during the month of December, carrying
the composite index (1935-1939=100) to 122.8, a
decline of 0.1 percent from November. [TABLES 3,
4, and 5.]

[TABLES 1 and

down to $70,600,000 at year-end

2.]

NEW RESIDENTIAL CONSTRUCTION IN ALL URBAN AREAS
PERMITS ISSUED FOR PUBLICLY AND PRIVATELY FINANCED DWELLING UNITS
THOUSANDS OF
OWE LLING U NITS

35
30

•

-

—

/andPRIVATE
2 FAMILY^
^ ^ -,
"y

"

25

ys.

—1

20
15
10
ALL PUBLIC^,

[/

\...

• \\

- J -*

<\fec:

5
'ATE

°c EC

MAR

JUN
1940

SEP

DEC

MULTI-FAMILY
MAR

JUN
1941

1 !
SEP

DEC

MAR

•

JUN
1942

SEP

D

:c

MORTGAGE LENDING—New loans
During December, new loans made by all savings
and loan associations amounted to approximately
$70,600,000, the lowest volume for this month since
1938. While the November-December decrease in
mortgage lending amounted to 5 percent, the decline
was in line with average changes over the same period
of prior years. As a result, the seasonally adjusted
index (1935-1939 = 100) dropped only fractionally
to 119.7. I n December 1941, this index stood at
169.8 and in the post-depression peak month of
September 1941, at 182.8.
Home-purchase loans, which have accounted for
an increasing proportion of savings and loan lending,
New mortgage loans distributed by purpose

BUILDING COSTS-Labor costs

[Amounts are shown in thousands of dollars]

rise; material charges drop
The average cost of constructing a standard 6room frame house rose fractionally during December
and now stands nearly 25 percent above the 19351939 base period. Labor charges were the contributing factor in the rise since material prices dropped
slightly during December. I n comparison with December 1941, labor costs have risen 5 percent while
building materials gained 3 percent.
152




Purpose
Construction
Home purchase
Refinancing _
Reconditioning
Other purposes
Total

Dec.
1942

Nov.
1942

Percent
change

Dec.
1941

$8, 472 $9, 275 - 8 . 7 $30, 290
41, 440 43, 984 - 5 . 8 43, 145
12, 768 12, 472 + 2.4 14, 424
2, 199 3,007 - 2 6 . 9 4, 170
5,749 5,241 + 9.7 8, 179
70, 628 73, 979

Percent
change
-72.0
-4.0
-11.5
-47.3
-29.7

- 4 . 5 100, 208 - 2 9 . 5

Federal Home Loan Bank Review

were equal to 59 percent of the December total.
Refinancing loans again made up the second largest
share of the aggregate volume. [TABLES 6 and 7.]

MORTGAGE RECORDINGS—Seasonal
decline noted in December
The volume of mortgages filed for public record
during December dropped to the lowest level for
comparable months since these data were first
compiled in 1939. The $265,000,000 in nonfarm
mortgages of $20,000 or less recorded during December was $127,000,000, or 32 percent, below the same
1941 month.
The decline from November to December, which
was largely seasonal in character, amounted to almost 5 percent. All types of mortgage lenders contributed to the drop with percentage decreases
ranging from 2 to 3 percent for miscellaneous lenders,
individuals, and banks and trust companies, and
from 7 to 10 percent for savings and loan associations,
mutual savings banks, and insurance companies.
[TABLES 8 and

FEDERAL ASSOCIATIONS-Assets
increased 6 per cent in 1942
Assets of all Federal associations increased
$40,000,000 from November to December, and gained
$127,000,000 in the past year, reaching almost
$2,300,000,000 by the year-end. The total of 1,467
Federal charters outstanding on December 31 was
7 more than at the end of 1941. [TABLE 15.]
Progress in number and assets of Federals
[Amounts are shown in thousands of dollars]
Number

Approximate assets

Class of association
Dec. 31, Nov. 30,
1942
1942
New
Converted
Total

641
826
1,467

Dec. 31,
1942

Nov. 30,
1942

642 $734, 231 $717, 502
826 1, 565, 664 1, 542, 168
1,468

2, 299, 895 2, 259, 670

9.]

Recent Publications
Mortgage recordings by type of mortgagee
[Amounts are shown in thousands of dollars]

T y p e of lender

PerPerPercent cent of
Cumulative cent of
change
total
recordings
Dec.
from
1942 (12 months) recordNov.
ings
1942 amount

Savings a n d loan associations _
-6. 8
-10. 2
Insurance companies
Banks, t r u s t companies__ - 2 . 5
-8.2
M u t u a l savings banks
-2. 9
Individuals „
-1. 6
Others
_
.
Total

2 8 . 4 $1, 170, 546
8. 8
361, 743
885, 710
21. 5
165, 674
4. 0
732, 697
20. 4
626, 243
16. 9

29. 7
9. 2
22.4
4. 2
18. 6
15. 9

3, 942, 613

100. 0

- 4 . 6 100. 0

F O R E C L O S U R E S - L o n g term
downward trend continued
Continuing the long-term downward trend, nonfarm real-estate foreclosures in December numbered
only 2,957—an average for the country as a whole of
less than one foreclosure per county. The number
of foreclosures for December was 5 percent below the
3,112 cases in November, and 32 percent below
December of last year. Since the normal Novemberto-December movement is upward, the seasonally
adjusted index dropped to 21.9 in December (19351939-100). [TABLE 10.]
February 1943




B

TWO new publications of the National Bureau of
Standards are helpful in clarifying certain aspects
of war housing and post-war construction. The
first—Recommended Building Code Requirements for
New Dwelling Construction—is prepared with specific
war-housing problems in mind. Scarcity of certain
materials makes it desirable that the latest information on the suitability of substitute materials and
methods be available for general use.
I t is felt, also, that much of the experience gained
during the War will be incorporated in post-war
building codes, either through extensive revisions of
requirements or tjirough the preparation of new substitute codes. The present study provides a general
guide to such revisions for local authorities.
The second publication—A Glossary of Housing
Terms—brings up to date and expands an earlier
listing of construction phraseology. The new compilation covers approximately 800 items, most of
which are not fully defined in standard dictionaries
and glossaries.
Both reports constitute additions to the Building
Materials and Structures Series of the Bureau.
They may be obtained from the Superintendent of
Documents, Government Printing Office, Washington, D. C. Building Code Kequjrements—BMS88—
is priced at 20 cents; the Glossary—BMS91—costs
15 cents.
153

Federal Savings and Loan Insurance Corporation
•

T H E Federal Savings and Loan Insurance
Corporation has completed its first year of
operation under wartime conditions. For this
reason, the record of progress of the Corporation
during 1942 is one of considerable significance.
During 1942 the number of associations insured
by the Federal Savings and Loan Insurance Corporation increased from 2,343 to 2,398. The Corporation now protects more than 3,300,000 private

Federal Savings and Loan Insurance Corporation
Condensed Statement of Condition
December 31, 1942
&

•&

it

ASSETS
Cash in U. S. Treasury
$1, 051, 267. 14
Accounts receivable
1, 221, 634. 22
Includes insurance premiums of $1,170,101.98, payable subsequent to December 31,
194%
Investments
130, 144, 369. 32
U. S. Government obligations and securities
fully guaranteed by U. S.
Accrued interest on investments
598, 081. 34
Subrogated accounts in
insured institutions in
liquidation
$5, 397, 226. 33
Less: Allowance for losses_
749, 747. 30
4, 647, 479. 03
TOTAL ASSETS

$137,662,831.05

LIABILITIES A N D CAPITAL
Accounts payable
$2, 317. 28
Deferred income
L
1, 965, 962. 85
Represents insurance
premiums
not yet
credited to earnings
Capital
Capital stock
$100, 000, 000. 00
Reserve fund as provided b y law
11, 109, 114.23
Special reserve for
contingencies
22, 500, 000. 00
Unallocated income _
2, 085, 436. 69
135, 694, 550. 92
T O T A L L I A B I L I T I E S AND C A P I T A L .

$137, 662, 831. 05

The Corporation has outstanding commitments aggregating $236,374.11 in
order to prevent default of certain insured associations.
Insured accounts not yet subrogated in insured institutions in liquidation are
estimated at $74,044.31. The estimated loss in these accounts when subrogated
is $8,538.72.

154




investors in these associations, which are located in
every state in the Union, as well as in Alaska, Hawaii,
and the District of Columbia. The assets of insured
associations increased $288,656,000 during the past
year to a total of $3,651,600,000.
Private share capital invested in all insured savings and loan associations was within striking distance of three billion dollars at the end of 1942.
The total—$2,983,310,000—represented a 15-percent
gain over the previous year.
The Corporation strengthened its own resources
during 1942. I t s gross assets amounted to almost
$137,700,000 on December 31, as compared to
$133,100,000 at the end of 1941. Gross income from
operations for the year aggregated $7,380,000 and
total operating expenses were $343,000, approximately 4.6 percent of gross income.
The Corporation has built up reserves and surplus
aggregating more than $35,000,000 and, in addition,
the market value of its Government bonds exceeds
the book value by some $3,750,000.
Insured associations continued to improve their
position during 1942. The increase of 15 percent
in investments of the public, recorded during the
past 12 months, is indicative of growing public confidence in both the institutions and the insurance
program.
The Corporation took action to prevent default
of seven insured associations with total assets of
$26,600,000 during the year 1942. Cash disbursements by the Corporation in these cases amounted
to more than $1,723,500. Since its creation, the
Corporation has rehabilitated 25 associations and
its total disbursements to December 31, 1942 for
this purpose have been almost $4,900,000.
No insured savings and loan association was placed
in liquidation during 1942; however, seven were still
in the process of liquidation. At the end of December, almost 99 percent of the estimated dollar
amount of the insured claims of the share investors
in these seven insured associations in liquidation had
been settled. This involved the issuance by other
insured institutions of new share accounts amounting
to more than $6,650,000. Partial liquidating dividends totaling 20, 50, and 35 percent, respectively,
were declared in three of the receiverships during
1942. I t is estimated that the Corporation will
recover at least 86 percent of the funds disbursed in
the payment of insurance to insured members of
insured institutions in liquidation. [TABLE 15.]
Federal Home Loan Bank Review

Federal Home Loan Bank System
I

A year of operation under a wartime economy
has produced significant changes in the activities
of the Federal Home Loan Bank System and its
member institutions but at the close of 1942 combined estimated assets of all members stood at
$5,750,000,000, a gain of almost $300,000,000 over
last year. The average size of member institutions
continued to increase with assets concentrated in
3,788 organizations in 1942 in contrast to 3,824 the
year before. The distribution of membership was
3,744 Federal and State-chartered savings and loan
associations, 21 mutual savings banks, and 23 insurance companies.
Enforced curtailment of lending by member associations has resulted in a substantial reduction in
the use of credit facilities of the Federal Home Loan
Banks. The balance of advances outstanding of
the 12 Banks at the close of 1942 totaled $129,213,000,
the lowest year-end figure since 1935. This represents a decline of more than $90,000,000 from the
all-time high attained in 1941. Aside from the
usual seasonal upturns in June and December, each
month since December 1941 has shown a decreasing
balance of outstanding advances. Repayments in
the first month of the current year indicated that
this downward trend is still in progress, the balance
at the end of January having reached $113,000,000
which is the lowest since May 1936.
The Federal Home Loan Bank of New York reported the least decline from the previous year in
advances and showed the largest amount outstanding
in December 1942—$23,761,000. The Chicago Bank
had the second largest volume of advances to members ($19,975,000) although it experienced the most
substantial drop from 1941 levels.
The total new advances made by all Banks during
the year amounted to almost 100 million dollars—
slightly above the 1939 level but $58,000,000 below
1941. Although the trend of current monthly advances fluctuated from month to month in 1942,
beginning in April each month showed a smaller
volume of new advances than during the corresponding period in 1941. Approximately 75 percent of
all new advances made in the past 12 months were
on a short-term basis. This is a continuation of the
trend evident during recent years.
Repayments, on the other hand, were $50,050,000
above 1941 levels and reached an all-time high of
$189,700,000. I t was the first year in the history of
February 1943




Bank operations that repayments exceeded new advances made during the second half of the year.
COMBINED STATEMENT OF OPERATIONS

Net income from operations increased again in
1942, reaching almost $3,900,000. This represented
a gain of $124,000 over 1941 and $483,000 above the
1940 figure. An increase of $513,000 in interest on
investments, only partially offset by the loss of
$87,000 in interest on advances, accounted for this
gain. Operating expenses of $2,331,000 during 1942
amounted to 38.1 percent of operating income. Although this was larger in dollar volume (the result
of increased debenture interest and debenture expense), it was approximately the same ratio to operating income as in 1941.
Dividend declarations daring the calendar year
1942 ranged from 1 to 2 percent and represented a
return equivalent to 1.17 percent on the average
outstanding capital stock of all the Banks. This
rate of return paralleled that applicable to 1941.
Dividend payments of $605,600 to member institutions and of $1,462,800 on Government-owned
stock amounted to an annual total of $2,068,400.
During the 10 years of Bank operations, $19,478,000
has been disbursed in dividend payments.
Stock owned by member institutions of the Bank
System increased $2,888,000 during 1942 and now
amounts to 29.3 percent of total capital stock outstanding, as against 28.1 percent a year previous.
155

Dividends paid or declared by the Federal Home
Loan Banks during 1942
Federal Home Loan Bank

Boston
New York
Pittsburgh 2
Winston-Salem .
Cincinnati
Indianapolis
Chicago
Des Moines
Little Rock
Topeka
Portland
Los Angeles
Total

Rate per
annum i
Percent
1
1
1
2-1
l-i K

m
V/2-1
i
i
i

Members

$53, 098. 70
55, 565. 47
31, 919. 43
87, 376. 35
95, 320. 70
57, 403. 80
83, 461. 41
40, 419. 61
29, 996. 50
19, 677. 34
14, 936.18
36, 423.93

605,599.42

R. F. C.

$124, 675. 00
189, 632.00
111,463.00
138,123. 00
143, 726. 63
98, 661.00
212, 608. 50
101, 679. 88
109, 655.00
73, 336.00
59, 600. 00
99, 679.00

Total

$177, 773. 70
245,197. 47
143, 382. 43
225, 499. 35
239, 047. 33
156,064. 80
296, 069. 91
142, 099. 49
139, 651. 50
93, 013. 34
74, 536.18
136,102.93

1, 462, 839. 01 2, 068, 438. 43

i Where two rates are shown they represent declarations for first and second
halves of 1942.
2 Dividend declared as of December 31, 1942, for the calendar year 1942; other
Banks declared semiannual dividends.

Government-owned stock, which is held by the Reconstruction Finance Corporation, remained unchanged—$124,741,000.
Aggregate resources of the 12 Banks dropped by
the end of 1942 to $287,517,000 from the 1941 total
of $308,306,000, a decrease of about $21,000,000.
This may be explained by a corresponding decrease
in Federal Home Loan Bank debentures outstanding.
During 1942 four new series of Federal Home Loan
Bank debentures were issued. Of' these, Series I
($26,000,000) and Series J ($18,000,000) each bearing
a stated interest rate of % of 1 percent matured during
the year. Two other debenture issues (series G and
H) also matured last year. Series K ($24,000,000
at % of 1 percent), and Series L ($22,000,000 at %
of 1 percent) were issued and will mature in 1943
along with one other series. Debentures issued to
date amount to $314,700,000 with the total now
outstanding $69,500,000, a decrease of $21,000,000
during last year.
Demand and time deposits of members were
$25,400,000, representing a decline of more than
$4,000,000 during the 12-month period. The substantially lower amount of advances outstanding was
reflected in an increase in the total of cash and investments which rose almost $70,000,000 to a total of
$157,600,000.
INTEREST R A T E S

A continuation of the gradual downward trend in
interest rates on F H L B advances was evident in
1942. Five banks offered special short-term rates
on advances to members as an additional inducement
for the acquisition of U. S. savings bonds. The
Indianapolis Bank announced reduction of rates to
2% percent on all long-term advances, effective June
156




1, 1942. The Little Rock and Los Angeles Banks
also dropped their rates to 2% percent effective
January 1, 1943. No changes in rates were made by
the nine banks which pay interest on the time
deposits of member associations.
CURRENT OPERATIONS

During December current advances made by all
Federal Home Loan Banks increased over amounts
recorded for the previous month. The total—
$18,209,000—was more than four times the November figure but was substantially below December
amounts in 1941 and 1940. All regions except Cincinnati, Little Rock, and Portland registered higher
advances than repayments. The volume of repayments made during the month declined approximately $3,000,000 from November and stood at
$10,883,000. This was, however, the highest volume
of repayments ever made in December. [TABLE 12.]
Interest rates on advances 1 and on deposits
Rates Rates
on
on
addeposits vances
over 90 Jan. l,
days
1943

Federal Home
Loan Bank

Percent
2

Boston
New York
Pittsburgh, _ .__
Winston-Salem. -.
Cincinnati
._
Indianapolis

Chicago

_ ...

Des Moines

_

Little Rock
Topeka
Portland

_.

Los Angeles

._

Type of advance

Percent
1H All short-term advances amortized within
A
1 year
2M All long-term advances
1M All short-term advances amortized within
A
1 year
2M All long-term advances
All
short-term advances for purchase of
IH
A
Government bonds
3
All other advances
3
All advances
A
2y2 All advances
Yi
2 All short-term advances not exceeding 10
A
percent of member's share capital, plus
the amount of all Government and Government-guaranteed notes and bonds
owned by the borrowing associations and
unhypothecated, less the amount of war
bond advances
23^ All long-term advances
short-term advances, not to exceed 10
VA Allpercent
\/
2
of member's assets, amortized in
'
equal monthly instalments
2J4 All short-term advances, not to exceed 10
percent of member's
assets, amortized,
by not less than 2lA percent of the principal amount quarterly
3
All other advances
2H On advances for purchase of savings bonds
A
and other Government issues; amount
not to exceed approximately 12 percent
of member's line of credit
3
All other advances
2H All advances
All advances
3
On advances up to $50,000 or 25 percent of
2M
member's total indebtedness to Bank,
whichever is greater, when collateralized
by obligations of, or fully guaranteed by
U. S. Government and the principal is
repaid at rate of 2}4 percent quarterly
3
All other advances
2U On secured advances not exceeding $50,000
A
or 10 percent of member's line of credit,
whichever is greater, for purchase of
Goverment obligations
2A All other advances

1
Banks are required to charge A to 1 percent additional on advances to non members.
2 This Bank also pays interest on deposits remaining over 30 days.

Federal Home Loan Bank Review

Statement of c o n d i t i o n of the Federal H o m e L o a n Banks as of December 3 1 , 1 9 4 2
Consolidated

Balance sheet i t e m s

ASSETS
Cash
...
C a s h on deposit in IT. S. T r e a s u r y for m a t u r e d
debentures
. _.

Combined

Boston

Winston-Salem

Cincinnati

N e w York

Pittsburgh

$1,409,883.77

$3,269,056.78

$4, 762, 276.46

$2, 957, 893.04

11,599,274.53

8,461.171.53
11,794,526.56
63,482. 24

2, 317. 81
468. 75

1,315.01
727.83

11,949,820.75
12, 363, 287.00
68,282.88
1, 683. 88
1, 068. 80

18,074,859. 96

23, 760, 930. 97
108,314.41

$35, 504,143,82

$3, 738,877.16

122,144,485. 79

628, 630. 06
14, 075.86
6,157. 56

129.212,531.62
628,630. 06
14, 075.86
6,157. 56

10, 794, 587. 21
10, 462,818. 75
52,920.80
1,154.38
150. 00

$287, 516, 532.18

$287, 510,024. 71

$25,050, 508. 30

$36,881,190. 24

$23, 590, 279.95

$29,146, 419. 77

$30, 472,139. 32

$25, 520, 226.19
330, 838. 07
895, 355. 77
12,765.88

$25, 520, 226.19
330, 838. 07
895, 355. 77
6, 258.41

$ 2,140, 457. 95
15, 082. 22
89,606.84

$ 1, 942, 714. 76
21,187. 22

$517,375.00
38, 799.80
143,382.43

$4, 579,500.00
12, 544. 32
133, 043. 41
2,335. 90

69, 500,000. 00
2, 568. 08

69, 500,000. 00
2, 568. 08

4, 000, 000. 00

8, 500, 000. 00

7, 000, 000.00
321.00

$917,100. 00
57, 793. 72
75, 820. 74
14.00
11,000,000.00

$96, 261, 753.99

$96, 255, 246. 52

$6, 245,147.01

$10, 463, 901. 98

$7, 699, 878. 23

$12, 051,424. 00

$7,227,423.63

$176, 444, 225. 00
8,613,185.35
6,197, 367. 84

$176, 444, 225.00
8,613,185. 35
6,197, 367.84

$18,005,050.00
461,941.93
338, 369. 36

$24, 892,100. 00
1, 006, 504.42
518, 683.84

$14,434, 625.00
616, 252. 32
839,524.40

$15, 201,150. 00
932, 005.97
961, 839.80

$21, 306, 200.00
1,303.770.40
634, 745.29

TOTAL CAPITAL

$191, 254, 778.19

$191, 254, 778.19

$18, 805, 361.29

$26,417, 288. 26

$15,890,401.72

$17, 094, 995. 77

$23, 244, 715.69

T O T A L LIABILITIES AND CAPITAL

$287, 516, 532.18

$287, 510, 024. 71

$25, 050, 508. 30

$36, 881,190. 24

$23,590, 279.95

$29,146,419. 77

$30,472,139.32

Indianapolis

Chicago

Des Moines

Little Rock

Topeka

Portland

$1,750,810. €

$1, 839, 738.96

$1, 320, 394. 27

Investments _ _ _ _ _ . . _ . . .
Advances outstanding

...-.__-.__

Accrued interest receivable . . _ - .
Deferred charges
_
.
__..-.
O t h e r assets

-- -

TOTAL ASSETS

$35, 504,143. 82
6, 507.47
122,144,485. 79
129,212.531.62

9, 362, 689.98
75, 088. 21
832.90
775. 23

LIABILITIES AND CAPITAL

A ccrued interest p a y a b l e
Dividends payable-

_.....---

Accounts p a y a b l e . - - -~ -Debentures outstanding
P r e m i u m s on d e b e n t u r e s

Surplus
U n d i v i d e d profits

_

2, 500, 000.00

695. 54

ASSETS
C ash
Cash on deposit in U . S. T r e a s u r y for m a t u r e d
debentures

$2,127,346. 02

;6,449, 568.34

$3,665, 351. 23

Investments
Advances outstanding

10, 766, 208. 44
10, 200, 707.87
37,976.33
1,417. 90
160.00

10, 742, 228.15
19,975,329.16
35, 787. 66
1, 394. 29
400.00

1,016,416. 86
;, 486, 737.75
46, 926. 04
1, 276. 06
132.97

8,300,000.00
3,614,420. 00
46,210.11
187. 50
137.95

5,920,000.00
4, 843, 444. 38
36, 573. 62
769.33

8, 899, 230. 86
1, 390, 036. 98
25, 359. 35

$23,133,816. 56

$37, 204, 707. 60

i, 216, 840. 91

$13, 711, 766. 52

$12, 640, 526. 29

$11,636,092.33

$4,167, 909. 66
34, 828.96
80, 305.08
99.19
7,000, 000. 00
267. 54

$5, 431, 231. 86
60, 717.30
148, 029.60

$1, 878, 279. 52
38,140.43
64,097. 94

$452, 535.99
9, 296.85
37, 412. 66

10, 000, 000.00
749.00

7,000,000.00
267.54

$11,283,410.43

$15, 640, 727. 76

$10,907,200.00
467, 737. 46
475, 468. 67

TOTAL CAPITAL

T O T A L LIABILITIES AND CAPITAL

Accrued interest receivable
Deferred charges
O t h e r assets
T OTAL A S S E T S

LIABILITIES AND

CAPITAL

Deposits
Accrued interest p a y a b l e Dividends payable
Accounts payable
Debentures outstanding-.
P r e m i u m s on d e b e n t u r e s .
TOTAL

LIABILITIES.

C a p i t a l stock
Surplus
U n d i v i d e d profits.

February 1943




881. 81
189. 06

$754.83

$516, 283.84

7, 500.00
56, 006. 75
243. 75
1, 500,000.00

10, 000. 00

2,000,000. 00

3, 000, 000. 00
53.46

0, 785.43

, 564, 505.33

$2, 526, 362. 36

$3, 499, 298.96

$19, 816, 600. 00
918, 292. 93
829, 086.91

$10, 279, 900. 00
702, 425. 94
253, 729. 54

$11, 202, 700. 00
413, 719.53
530, 841.66

$9, 351, 700. 00

$7,486,400.00

301,100. 97

632, 947. 59

461*362. 96

17, 445. 78

$11, 850,406.13

$21, 563, 979. 84

$11,236,055.48

$12,147, 261.19

$10,114,163.93

, 136, 793. 37

$23,133,816. 56

7, 204, 707.60

$20, 216, 840. 91

$13, 711, 766. 52

$12, 640, 526.:

78.52

$11,636,092.33

157

Table 1 — B U I L D I N G A C T I V I T Y — E s t i m a t e d number and valuation of new family dwelling units
provided in all urban areas in December 1942, by Federal Home Loan Bank District and by State
[Source: X'. S, Department of Labor]
[Amounts are shown in thousands of dollars]
All residential s t r u c t u r e s
N u m b e r of family
dwelling u n i t s

F e d e r a l H o m e L o a n B a n k District a n d State

U N I T E D STATES

_ _._

.

.

...

.

. ._

N o . 1—Boston..
Connecticut
M a i n e _ - . . . . __
Massachusetts..
New Hampshire
Rhode Island
.
Vermont
.

.

...

N o . 2—New Y o r k

..
_. . . .

New Jersey. . . .
New York
.

.

. _
.

..

.

.

No. 3—Pittsburgh..

:

Delaware
Pennsylvania . . .
W e s t Virginia

.

N o . 4—Winston-Salem

.

.

.

.

-

- -..

. .

..

_......

Alabama _
. .
_ . _ - . - . . - _ . . .
District of C o l u m b i a
. ... .
... . . . . . .
.
Florida
.
Georgia._ . . . .
Maryland _ .
...
.
North Carolina.
..
.
..
. . l
.
... .
South Carolina. _ _ . . .
Virginia
_ ...
_ _. . . .
.
N o . 5—Cincinnati

.

Kentucky
Ohio
Tennessee

...

. ..
.

...

N o . 6—Indianapolis
Indiana
Michigan.. _

.

...
_ .

.

.

..

..

No. 7—Chicago.. .
Illinois
Wisconsin.

..
. .

N o . 8—Des M o i n e s

...

Iowa
Minnesota . . .
Missouri . ___ _
North Dakota
South D a k o t a . .
N o . 9—Little Rock

..

.

..

.. ...
.
...
. . ... . . . . . .
... . . ... ...
.
. .
. ......
...
.

.
.

_..
__.
..

_.
...

.

Arkansas
Louisiana
Mississippi
N e w Mexico
Texas

... .
. . . _ _. ._ ._
... ..
. .. .

.
.

...
.

_ . . _

.

N o . 10—Topeka.
Colorado
Kansas
Nebraska
Oklahoma

.

..

.

.

.

.

.
_.
., . ..

No. 1 1 — P o r t l a n d .
Montana
.
Oregon..
...
Utah
Washington
Wyoming

._
...

.
. . .

.

...
. .
.

.
....

_

____._.
.

_

._ . .
.
. . . . . . .

_ ..
...

N o . 12—Los Angeles
Arizona... .
California...
Nevada ..

158




...
. . ______

1

1

1

P e r m i t v aluation

j

N u m b e r of family
dwelling u n i t s

P e r m i t valuation

Dec. 1942

D e c . 1941

D e c . 1942

Dec. 1941

Dec. 1942

11, 253

19,338

$31,411

$70,863

6,333

15,683 1

$20,616

$59, 252

730

1,070

2,130

4,806

169

1,039 I

682

4,692

1,628
10
460
3
26
3

1,966
239 j
2,263 |
108
181
49

45
3
112
1
7
1

398
64
493
30
44 1
10

180
10
460
3
26
3

1,870
229
2.254
109
181
49

606
3
112 !
i !
7
1

. . . . . . . . -.
. _ _ _ .

_

All p r i v a t e 1- a n d 2 - family dwellings

|

422
67
497 1
30 !
44 i
10

D e c . 1941

D e c . 1941

D e c . 1942

996

1,596

2,680

6,778

688

1,412

1,999

6. 055

802
194

659
937

1,928
752

2,755
4,023

494
194

659
753

1,247
752

2, 755
3, 300

504

993

2,028

4,356

455

832

1,918

3. 765

8
485
11

2
846
145

24
1,976
28

7
3,860
489

8
436
11

2
694
136

24
1,866
28

3,296
462

2,584

2,837

5, 348

8,055

726

2,103

1,610

6,180

630
571
203
145
248
99
235
453

433
269
504
438
243
224
183
543

987
1,470
338
140
579
261
402
1,171

690
885
1,602
1, 090
763
666
407
1,952

26
3
43
145
248
99
21
141

379
101
432
235
240
212
150
354

31
12
64
140
579
261
27
496

620
519
1.453
491
755
633
353
1, 356

516

2, 733

1,617

10, 923

285

' 1, 383

1,144

5, 816

21
310
185

91
2,413
229

56
1, 208
353

255
10,070
598

21
254
10

87
1,071
225

56
1,062
26

253
4,974
589

824

1,281

3,554

5,437

813

1,274

3,522

5. 409

168
656

432
849

519
3,035

1, 639
3,798

157
656

432
842

487 i
3, 035

1,639
3 770

-

154

1,134

616

5, 858

150

1,127

602

5. 831

126
28

834
300

510
106

4,515
1,343

122
28

827
300

496
106

4, 488
1,343

69

773

238

3,160

69

700

238

2,877

6
8 i
28 i

19
26
84

27

190
274
205
9
22

19
26
84

109

791
1,223
1, 035
41
70

6
8
28

27

194
279
269
9
22

109

786
1. 203
777
41
70

1,639

2,054

3,760

5, 530

998

1,980

2,337

5, 378

83
292
38
448
778

187
239
191
64
1,373

229
853
43
1, 080
1,555

403
627
303
184
4,013

83
292
38
14
571

157
239
191
64
1,329

229
853
43 i
32
1,180

324
627
303
184
3,940

369

753

965

2,104

301

693

944

1, 980

1
263
34
71

152
209
66
326

3
652
109
201

453
498
239
914

1
199
30
71

152
169
54
318

3 I
639
101 j
201 j

453
417
208
902

673

645

2,068

2,280

377

600

1,352 1

2. 154

200
104
66 |
297 !
6 1

33
41
149
86
311
25

470
359
218
991
30

116
138
481
286
1.158
101

i
1

74
63
234
6

33
41
107
86
308
25

116
138
356
286
1.157
101

2,195 i

3,469

6,407

11, 576

1,302

2, 540 1

4,268

16
2.066 1
113 !

39
3,211
219

35
6,062
310

113
10.727
736

7
1,182
113

39
2,417
84

19 :
3,939
310 j

I

289 1
210 '
823 i
30
i

9.115
113
8.717
285

1

Federal Home Loan Bank Review

Table 2 . — B U I L D I N G A C T I V I T Y — E s t i m a t e d number and valuation of new family dwelling units
provided in all urban areas of the United States
[Source: U. S. Department of Labor]
[Amounts are shown in thousands of dollars]
N u m b e r of family dwelling u n i t s
T y p e of construction

M o n t h l y totals

P r i v a t e construction _. _ _

N o v . 1942

_ ___

7,648

9,046

17,098

188,943

_

5,275
1,058
1,315

6,745
876
1,425

14, 514
1,169
1,415

139,504
16,144
33, 295

P u b l i c construction
Total u r b a n construction
1

Year

Dec. 1942

1-family dwellings
__ .
2-family dwellings 1 _ _ _ _ _ _
3- a n d more-family dwellings 2

2

Permit valuation

Dec. 1941

1942

M o n t h l y totals
1941

Year
1942

1941

Dec. 1942

N o v . 1942

D e c . 1941

369,465

$23, 250

$29,124

$62, 788

$614,185

$1, 380, 736

295,024
22, 752
51,689

17, 891
2,725
2,634

23, 543
2,325
3,256

56,295
2,957
3,536

481, 292
44,701
88,192

1,175, 598
58,841
146, 297

3.605

4,555

2.240

75,454

70,117

8,161

13,470

8,075

242,518

237, 245

11, 253

13, 601

19, 338

264,397

439, 582

31,411

42, 594

70,863

856, 703

1, 617, 981

Includes 1- and 2-family dwellings combined with stores.
Includes multi-family dwellings combined with stores.

Table 3 . — B U I L D I N G COSTS—Index of building costs for the standard house in representative
cities in specific months x
[Average month of 1935-1939=100]
NOTE.—These figures are subject to correction.
1942

1943

1941

1940

1939

1938

1937

Jan.

Jan.

Jan.

Jan.

Jan.

Federal H o m e Loan B a n k District a n d city
Jan.

Oct.

July

Apr.

Jan.

N o . 2—New Y o r k :
Camden, N . J
Newark, N . J
Albany, N . Y._
Buffalo, N . Y
White Plains, N . Y

__

125.4
147.0
'153. 9
134.2
128.1
127.8

125. 3
145.9
146.3
130.9
128.2
126.2

124.9
142.1
137.0
123.2
125.4
126.0

122.7
141.0
136.5
124.6
123.7
124.3

118.7
117.1
113.2
112.3
108.8
112.7

105.4
108.5
106.6
102.2
100.6
100.1

97.4
101.9
103.5
99.5
102.0
99.1

99.9
104.3
100.2
107.5
104.6
100.8

103.3
101.0
99.9
100.1
98.6
102. 6

.__ _._

126.4
125.5
132.5
130. 7
128.6

126.2
129.9
132. 3
130.7
128.5

126.4
121.9
131.2
124.7
127.0

126.4
121.9
130.9
124.7
136.8

127.0
120.6
128.4
120.7
133.2

114.1
112.5
115. 3
108.6
116.1

107.1
98.5
102.9
101.9
99.6

102.5
102.9
96.2
108.3
107.0

101.0
100.8
102.8
107.0
107.2

96.6
97.1
103.9
96.3
95.3

114.2
118. 5
119.1
129.6
108.6
118.6
118.6

113. 8
118.1
118.7
129. 3
108.7
115.4
118.3

113.0
118.4
118.7
125.6
108.5
113.6
116.4

109.9
112.8
115.9
125.5
107.5
111.4
110.4

108.0
110.8
114.7
118.6
106.0
108.3
112.3

103.8
104.5
109.2
110.7
101.6
103.6
102.0

102.6
104.9
107.8
106.9
100.1
102.6
102.2

101.6
101.2
107.9
103.1
98.7
99.1
105.1

101.4
105.8
103.7
101.3
104.3
106.2

99.4
96.5
98.7
96.7
103.8
100.4
97.8

132.9

132.9
117.1
122.3
123. 0

' 132. 9
112.8
' 117.1
' 122. 3
' 121. 3
121.1
103.4

f 132. 7
112.8

117.1
122.3
123.0

* 124. 4
111.6
* 110.4
» 120. 2
r 121. 1
115.4
103.6

111.7
105.1
97.7
108.6
111.8
110.8
101.7

105.6
102.3
97.9
103.1
102.9
101.4
101.5

103.2
102.9
99.4
100.5
102.2
96.4
101.9

100.8
103.0
100.0
103.2
106.0
105.2
102.9

101.4
96. S
99.8
97.3
99.6
102.4
98.3

__

N o . 6—Indianapolis:
Evansville, I n d
. __ .
Indianapolis, I n d
South Bend, I n d
Detroit, Mich
G r a n d R a p i d s , M i c h . _ __ __
N o . 8—Des M o i n e s :
Des Moines, I o w a
Duluth, Minn
St. P a u l , M i n n _
Kansas City, M o
St. Louis, M o
Fargo, N . D a k
Sioux Falls, S. D a k

_____

125.4
145.6
155.5
144.8
128.2
129.0

„

_ _

__

_

__

_

_._
._

...

N o . 11—Portland:
Boise, I d a h o
G r e a t Falls, M o n t
._
P o r t l a n d , Oreg
Salt L a k e C i t y , Utah_ _
Seattle, W a s h
Spokane, W a s h - . .
_ ___
Casper, W y o

__
:_

_

__

_ _ _ _- _
_

_
_ _
_

..._.. i

r 121. 5
' 122. 8
121.7
103.6

r
Revised.
i The house on which costs are reported is a detached 6-room home of 24,000 cubic 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, lighting fixtures, refrigerators, water heaters, ranges, screens, weather stripping, nor window shades.
Reported costs include, in addition to material and labor costs, compensation insurance, and allowance for contractor's overhead and transportation of materials
plus 10 percent for builder's profit.
Reported costs do not include the cost of land nor of surveying the land, the cost of planting the lot, nor of providing walks and driveways; they do not include
architect's fee, cost of building permit, financing charges, nor sales costs.
In figuring costs, current prices on the same building materials list are obtained every three months from the same dealers, and current wage rates are obtained from
the same reputable contractors and operative builders.

February 1943




159

Table 4 . — B U I L D I N G COSTS—Index of building costs (or the standard house
[Average month of 1935-1939=100]
Dec. 1942 N o v . 1942 Oct. 1942 Sept. 1942 A u g . 1942 J u l y 1942 J u n e 1942 M a y 1942 A p r . 1942 M a r . 1942 F e b . 1942 J a n . 1942 D e c . 1941

E l e m e n t of cost
_

121.4
130.7

121. 5
130.2

121.6
130.2

121.5
130.2

121.2
129.4

121.2
128.5

121.3
127.8

121.0
126.4

120.5
125.9

120.0
126.0

119.3
125.0

118.6
124.5

117.7
124.2

T o t a l cost

124.5

124.4

124.5

124.4

124.0

123.7

123.5

122.8

122.3

122.0

121.2

120.6

119.9

Material
Labor

Table 5 . — B U I L D I N G COSTS—Index of wholesale price of building materials in the United States
[1935-1939=100; converted from 1926 base]
[Source: U. S. Department of Labor]
All b u i l d i n g
materials

Period

Brick a n d
tile

Paint and
paint materials

Lumber

Cement

Plumbing
and heating

Structural
steel

Other

1940: D e c e m b e r , .

110.9

100.3

99.8

132.3

105.0

105.8

103.5

1941: D e c e m b e r

120.4

106.4

102.5

144.1

118.6

117.1

103.5

110.8

1942: J a n u a r y __.
February..
March..
April..May
June
July....
August
September
October
November.
December

122.0
122.9
123.4
123.1
122.9
122.9
123.2
123.2
123.3
123.3
122.9
122.8

106.6
106.8
106.9
107.9
107.9
108.0
107.9
108.6
108.6
108.6
108.5
108.6

102.5
102.5
102.7
103.3
103.4
103.4
103.4
103.4
103.4
103.4
103.4
103.4

146.5
147.8
148.2
146.8
146.4
146.7
148.0
148.1
148.3
148.4
148.2
148.4

121.8
122.8
123.9
123.7
123.7
123.3
123.8
123.1
123.4
124.2
123.8
123. 3

123.0
128.6
129.0
129.4
129.4
129.4
123.6
123.6
123.6
123.6
122.4
118.8

103.5
103.5
103.5
103.5
103.5
103.5
103.5
103.5
103.5
103.5
103.5
103.5

111.5
111.3
112.3
112.9
112.3
112.3
112.3
112.3
112 3
111.7
111.3
111.4

-0.1

+ 0.1

0.0

+0.1

-0.4

-2.9

0.0

+0.1

+2.0

+2.1

+0.9

+3.0

+4.0

+1.5

0.0

+ 5.4

_
,
-.
_
-...
_
__

_

_ .
.
_

_ _

Percent change:
D e c . 1942-Nov. 1942
D e c . 1942-Dec. 1 9 4 1 . . .

102.2

Table 6 . — M O R T G A G E LENDING—Estimated volume of new home-mortgage loans by a l l
savings and loan associations, by purpose and class of association
[Thousands of dollars]
P u r p o s e of loans
Period

1940
December .

.

.

__

__ _ _

_

Construction

Home purchase

Refinancing

Reconditioning

L o a n s for
all o t h e r
purposes

-

$398,632

$426,151

$198,148

$63,583

$113,065

$1,199,579

..._.

30,032

31,465

14,575

4,248

8,233

88, 553

437,065

580, 503

190,573

61,328

109,215

1,378,684

1941
December..

__

1942
January..
February
March
April
May
__
J u n e ._
..
July
August
September
October
November
December _

.
....
__
.
-. . . . .
-

(60




.

.

-.
_

_.
_________

_._ _ . . . .
__ _ _._ .

'

1
1
|
1

30,290

43,145

14,424

4,170

8,179

190,438

573, 732

165,816

41,695

78,820

34,127
33,769
40,930
52,196
53,095
52,112
52,190
55, 301
58,060
56, 528
43,984
41.440

12,854
12,325
13,225
14,508
13,607
15,184
16,097
14,019
14,063
14,694
12,472
12, 768

3,190
3,138
3,547
4,083
3,866
3,566
3,671
4,126
3,804
3,498
3,007
2,199

22,791
20,799
21,775
20,488
17,610
15,930
17,709
12,568
12,449
10,572
9,275
8,472

6,571
6,725
7,890
7,772
6,831
7,303
6,130
6,549
5,679
6,380
5, 241
5, 749

Class of association

Total
loans

State
members

Nonmembers

$509,713

$483,499

$206,367

37, 715

36, 729

14,109

584, 220

583,804

210,660

Federals

41,182

43,960

15,066

1,050, 501

100,208

412,828

476,080

161, 593

79, 533
76,756
87,367
99,047
95,009
94,095
95,797
92, 563
94,055
91,672
73,979
70, 628

31,142
31,919
36,325
38,484
36,966
35,279
37,007
36,620
37, 987
35, 555
28,163
27, 381

35,312
33,939
38,030
43,937
43,005
44,265
43, 665
41,549
42,249
41,937
35,441
32, 751

13,079
10,898
13,012
16,626
15,038
14,551
15,125
14,394
13,819
14,180
10,375
10, 496

Federal Home Loan Bank Review

Table 7.—LENDING—Estimafed volume of new
loans by savings and loan associations

Table 8.—RECORDINGS—Estimated nonfarm
mortgage recordings, $20,000 and under
December 1942

[ A m o u n t s are s h o w n n t h o u s a n d s of dollars]

[Thousands of dollars]
C u m u l a t i v e n e w loans
(12 m o n t h s )

N e w loans

December
1942

November
1942

December
1941

1942

1941

State

Percent
change
UNITED

$70, 628 $73,979 $100,208 $1,050, 501 $1, 378,684

U N I T E D STATES

Federal
State member
Nonmember

-23.8

27, 381
32, 751
10,496

28,163
35, 441
10,375

41,182
43, 960
15, 066

412, 828
476, 080
161, 593

584, 220
583, 804
210,660

-29.3
-18.5
-23.3

5,712

6,959

9,856

102, 833

146,152

—29.6

1,804
2,911
997

1, 933
3,962
1, 064

3,598
4,833
1,425

31,095
55, 240
16,498

49,939
74,562
21,651

-37.7
-25.9
-23.8

6,545

7,905

11, 272

106, 064

138,375

-23.4

1,417
3,208
1,920

1, 974
3, 728
2, 203

3,434
3,694
4,144

25,152
41, 515
39, 397

41,134
43, 374
53,867

-38.9
- 4.3
-26.9

...

7,246

7,414

8,717

97, 596

111,619

-12.6

Federal. _
_ _.
State m e m b e r
Nonmember

2,615
2,186
2,445

2, 546
2, 278
2, 590

3,305
2,451
2,961

35,782
29, 080
32, 734

42,491
29, 276
39, 852

-15.8
- 0.7
-17.9

9,343

9,437

15, 531

140,110

191, 587

-26.9

4,126
4,023
1,194

3,674
4, 664
1, 099

6,812
7,218
1,501

59, 695
64, 739
15,676

92, 350
82,133
17,104

-35.4
-21.2
- 8.3

12,108

14,006

16,414

193,543

234, 588

-17.5

4,026
6,450
1,632

4,625
7,824
1,557

5,840
8,752
1,822

70, 786
102, 111
20,646

86, 988
118, 263
29, 337

— 18.6
-13.7
-29.6

3,813

3,710

5,297

56,923

70,602

-19.4

1,690
1,839
284

1,938
1,563
209

2,631
2,503
163

28, 341
25, 562
3,020

35, 508
32, 313
2,781

-20.2
-20.9
+ 8.6

B o s t o n _ ._
Federal- - State member
Nonmember,.

__

New York
Federal
State member
N o n m e m b e r . _ .__
Pittsburgh

Savings I n s u r - B a n k s ! M u Indiand
and
ance
tual
vidtrust
loan
comcom- savings u a l s
associb
a
n
k
s
panies
panies
ations

Federal H o m e L o a n
Bank District and

Federal H o m e L o a n
B a n k District and
class of association

Winston-Salem.
Federal
State m e m b e r
Nonmember.

Boston

STATES..______

_ .

Connecticut
. . . ._
Maine
Massachusetts.
New Hampshire
Rhode Island
Vermont.
N e w York.__

...

.

Federal
_ ___
State m e m b e r
Nonmember
_
Indianapolis. Federal
State m e m b e r
Nonmember
Chicago
Federal
State m e m b e r
Nonmember.
Des M o i n e s

_

Federal.
State member
Nonmember
Little R o c k
Federal
_ ..
State m e m b e r
Nonmember.. _ _
Topeka

..

Federal .
State member
Nonmember
P o r t l a n d _ _ _ _.

..

Federal
State member
Nonmember
Los Angeles
F e d e r a l . . ...
State member
Nonmember

1

February 1943




6,210

6,719

9,477

101,125

135, 923

-25.6

2,224
3,081
905

2,610
3,510
599

3,934
4,656
887

36, 885
49,426
14,814

52, 818
65, 388
17, 717

-30.2
-24.4
-16.4

3,742

3,109

4,772

51,328

74,416

-31.0

1,802
1,460
480

1,634
1,090
385

2,205
1,552
1,015

24, 323
19, 048
7,957

36,953
24, 709
12,754

-34.2
-22.9
-37.6

3,465

3,130

4,830

48,879

67,247

-27.3

1,230
2,171
64

1,078
2,007
45

1,976
2,769
85

18, 276
29, 701
902

28, 328
37,419
1,500

-35.5
-20.6
-39. 9

3,064

2,968

4,057

44,356

54,605

-18.8

1,697
1,006
361

1,666
921
381

2,143
1,104
810

24,467
12,919
6,970

29, 981
13,424
11, 200

-18.4
- 3.8
-37. 8

2,428

2,302

3,165

33, 079

48, 633

-32. 0

1,391
883
154

1,511
613
178

1,972
1,025
168

20, 674
10,181
2,224

31,317
15, 386
1,930

-34.0
-33.8
+15.2

6,952

6,320

6,820

74,665

104, 937

-28.8

3,359
3, 533
60

2,974
3,281
65 i

3,332
3,403
85

37, 352
36, 558
755

56, 413
47, 557
967

-33.8
-23.1
-21.9

I n d i a n a . __
Michigan...

1,979

21, 719

1,020
201
2,124
99
375
59

1,122
52
585
31
170
19

6,110
1,430
11,125
646
2,020
388

8,391

6,138

31, 864

388
3,498

3,602
4,789

3,078
3,060

14, 485
17, 379

5,706

2,341

5,259

419

3,681

4,431

—
.21,.837

183
4,914
609

122
1,906
313

118
4,229
912

65
340
14

224
3,023
434

100
4,202
129

812
18,614
2,411

9,707 ~~3, 523

3,785

125

6,516 " 4 , 643

28, 299

267
1,822
587
658
3,296
1,421
322
1,334

331
562
521
391
174
250
172
1,122

345
376
476
491
731
255
200
911

13, 328

2,873

7,589

.

1,479
11,481
368

416
2,075
382

560
6,575
454

__

4,299

2,673

2,670
1,629

756
2,007

...

. . . . .

__ _

312

3,104

3,190

30, 396

312

136
2,584
384

133
2,092
965

2,724
25,119
2, 553

6,325

12

1,981

3,591

18, 971

2,333
3,992

12

656
1,325

761
2,830

7,188
11, 783

125

4,257

22

3,678

5,835

22, 291

2,635
1,622

22

2,122
1,556

5,133
702

16, 294
5,997

4,693

1,910

3,342

42

2,990

2,460

15, 437

1,147
1,750
1,576
191
29

139
832
780
140
19

782
578
1,891
33
58

407
981
1,435
70
97

296
299
1,843
16
6

2,771
4,482
7, 525
450
209

5,115

2,244

1,148

3,598

2,652

14, 757

284
1,823
185
79
2,744

69
398
134
35
1,608

145
117
165
119
602

161
698
311
187
2,241

150
350
285
9
1,858

809
3,386
1,080
429
9,053

__

3,731

876

1,619

2,075

1,655

9,956

_

475
1,007
659
1,590

80
143
284
369

134
526
225
734

977
250
209
639

519
237
120
779

2,185
2,163
1,497
4,111

__

2,466

473

1,866

453

1,924

4,241

11, 423

_
_
_
_

129
156
538
330
1,209
104

12
50
160
67
184

79
78
163
482
989
75

27

150
193
715
160
669
37

124
47
671
67
3, 305
27

494
524
2,274
1,106
6,782
243

._

6, 602

2,220

13,346

12, 391

3,897

38, 456

215
6,277
110

15
2,195
10

309
12, 877
160

362
11, 839
190

63
3,804
30

964
36, 992
500

Little Rock
A r k a n s a s _____
Louisiana
Mississippi ___ _ _•_
N e w Mexico __ _ _
Texas

__.

Idaho
Montana
_ __
Oregon
Utah
Washington
Wyoming
__

2, 405
4,060
3,542
2,378
6,676
2,991
1,204
5,043

1,625
377

_

Portland

698
505
433
336
1,277
480
219
695

2,002

Iowa
Minnesota
Missouri.__ ___ _ __
N o r t h D a k o t a . __ __
South Dakota
.__.

Topeka

764
795
1,525
502
1,073
585
291
981

4,779
1,718

6,497

Des Moines

Arizona..
California
Nevada

3,878

1,375
462
2,697
294
364
177
3,886

Illinois. _
Wisconsin _______ __

L o s Angeles

5,369

1,161
224
724
77
316
46
5,966

Chicago

Colorado
Kansas
Nebraska
Oklahoma

2,548

364
53
202

3,602
2,364

_ -_.

Indianapolis

619

1,068
438
4,793
145
795
87

700
759

Alabama...
...
D i s t r i c t of C o l u m b i a .
Florida
Georgia
_.
Maryland
_ __
N o r t h Carolina
S o u t h Carolina
Virginia

Kentucky...
Ohio
Tennessee

7,326

1,459

C i n c i n n a t i . . __._
Cincinnati

$75,494 $23,303 $57,050 $10,640 $54,207 $44, 712 $265, 406

6,024

Pittsburgh

Winston-Salem

Total

3,115
2,909

.__

N e w Jersey .
N e w Y o r k . _.

Delaware
Pennsylvania
W e s t Virginia

Other
mortgagees

_ ___.

42

426

I6I

Tabic 9 . — M O R T G A G E RECORDINGS—Estimated volume of nonfarm mortgages recorded
[ A m o u n t s are s h o w n in t h o u s a n d s of dollars]
I Savings a n d loan !
I associations
j

Insurance
companies

M u t u a l savings b a n k s

| Banks and trust
!
companies

Individuals

I

All
mortgagees

Other
mortgagees

Period
Percent

Total

; Per| cent

Total

!

1941: J a n . - D e c ^ . .
December..

$1,489,909
112, 764

1942: J a n . - D e c _ January
February...
March
April
May
June
July
August
September,
October
November..
December..

1,170, 546
29.7
90, 572
28.2
86, 752
29.3
100, 296
29.9
108, 582
30.2
107,937
30.8
105, 278
30.8
104, 712
29.6
102,628 1 30.5
104,155 | 30.1
103,170
28.9
80,970
29.1
i
75,494
28.4

j
!
j
j
i
j
!
!
I
j
!
j
I

Percent

Total

Percent

Total

8.5 $1,165,435
9.5
99,855

24.6 !$218,494
25.5 | 19,253

4.6
4.9

9.2
9.7
9.7
9.7
9.6
9.1
8.7
9.0
8.4
9.1
9.1
9.3
8.8

22.4 165,674
24.1 13, 523
23.7 10,405
23.3 12,162
22.8 15, 310
22.2 15, 904
21.8 16,043
22.8 15,669
21.5 14,793
22.4 14,812
22.2 14,817
21.0 11, 596
21.5 10.640

4.2 732, 697
4.2 59, 033
3.5 53,383
3.6 60, 322
4.2 62, 707
4.5 63, 807
4.7 62, 730
4.4 64,808
4.4 62, 824
4.3 65,423
4.2 67, 623
4.2 55, 830
4.0 54,207

31.5 1 $403,684 j
28.7
37,185 j
361,743
31,062
28,546
32,650
34,466
31,780
29,764
31,898
28,299
31,448
32.577
25,950
23.303

Percent

Total

885,710 :
77,631 i
70,221 j
78,086 !
82,082 '
77,563 i
74,588 j
80,736 !
72,480 i
77,530 i
79,224 i
58,519 !
57,050

16.6
16.4

;783,177
64, 524

18.6 626,243 !
18.4 49,575 i
18.0 46,734 I!
18.0 52,120 :
17.4 56,821
18.2 53,196
18.3 53, 847
18.4 55, 688
18.6 55, 826
18.9 52, 596
18.9 59, 672
20.1 45, 456
20.4 44, 712

1942: J a n . - D e c . P
January
February
March
April
May
June
July
August.._ . . _
September
October...
November
December P

-

-

-

100.0
100.0

15.9 3,942,613
321, 396
15.4
296,041
15.8
335, 636
15.5
359,968
15.8
350,187
15.2
342, 250
15.7
353, 511
15.8
336,850
16.6
345.964
15.2
357,083
16.7
278, 321
16.3
265, 406
16.9

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0

Period

total

Less
than
5,000

58, 381
4,337

6,468
524

42, 284
4,000
3, 630
3,935
3,856
3,813
3,850
3,558
3,072
3,360
3,151
3,112
2,957

4,676
439
370
669
461
333
367
333
401
303
470
364
386

5,00019,999

60,000
and
over

20,00059,999

9,000
659
6,821
635
592
• 678
561
623
637
565
499
527
524
486
503

12, 661
1,028
9,402
814
808
863
867
968
835
727
707
818
683
718
599

Percent

14.2 i $4,731,960
15.0 I 392,355

Monthly volume

U.S.

._ .

Combined
total

[ P r e m i u m - p a y i n g ; t h o u s a n d s of dollars]

C o u n t y size (dwellings)

1941: J a n . - D e c
December

671,261
58, 774

Percent

Table 1 1 . — F H A — H o m e mortgages insured *

Table 1 0 — FORECLOSURES—Estimated nonfarm real-estate foreclosures, by size of county

Period

Total

Title I
Class 3

Title I I

Title VI

Total
insured
at end of
period

30, 252
2,126

1941: J a n . - D e c . _
December-

$20, 632
1,850

176, 707
87, 516

$13. 431
5,294

$3, 680,630

21, 385
2,112
1, 860
1,944
1,967
1,889
2,011
1,933
1,465
1,717
1,474
1, 544
1,469

1942: J a n . - D e c . .
January.. .
February..
March
April
May
June
July
August
September.
October. _
November.
December

14,810
1.885
i,455
1,502
1,967
1,867
1,781
919
1,246
104
802
726
"57

691,445
87,167
70, 799
67, 780
55,448
60,177
65,810
62. 728
51, 813
47,573
44,470
38,964
38, 716

267,015
6, 556
8, 483
12, 273
11,424
13, 554
15, 876
20, 621
25,030
31,524
38, 265
40,195
43, 214

3, 776, 238
3, 856,975
3,938, 530
4,007, 369
4,082,967
4,166,434
4, 250. 702
4,328, 791
4,407,992
4,491,529
4,581,414
4, 663, 901

p Preliminary.
T h i s series is"in t h e process of revision on t h e basis of the 1940 C e n s u s a n d will
be presented in[the M a r c h R E V I E W .

i Figures represent gross insurance w r i t t e n d u r i n g t h e period a n d do not t a k e
account of principal r e p a y m e n t s on p r e v i o u s l y insured loans.

Table 1 2 . — F H L B A N K S — L e n d i n g operations and principal assets and liabilities
[ T h o u s a n d s of dollars]
L e n d i n g operations
D e c e m b e r 1942

C a p i t a l a n d principal liabilities
D e c e m b e r 31, 1942

Principal assets
D e c e m b e r 31, 1942

Federal H o m e L o a n B a n k
Advances

Boston
...
New York
___
.
Pittsburgh..
__ . .
Winston-Salem.
.
. . . .
Cincinnati
_
. .
Indianapolis
Chicago. _
Des Moines _ _ . .
_.._._._
_.
L i t t l e R o c k . _. .
. _
Topeka_. . . .
Portland
. .
. . . .
Los Angeles

.

. _
.
.

. _.
_ .
. ..

Repayments

$1,932
3,410
1,311
2,130
374
1,459
2,526
1,389
243
285
145
3,005

$1, 650
1,462
1,057
1,635
765
342
2,091
574
302
199
151
655

Advances
outstanding

ru oa ob hn

$10,463
23, 761
11, 795
12, 363
9,363
10, 201
19,975
8,487
3,614
4,843
1,390
12, 958

$3,739
1,410
3,269
4,762
2,958
2,127
6.450
3,665
1.751
1,840
1,320
2,213

!

- Government
I securities
i
!
1
|
1
!
!
i
I
1

Capital

l

Debentures

M«x*er

T o t a l assets
December
1942

$10,795
11.599
8,461
11,950
18,075
10, 766
10,742
8,016
8,300
5,920
8,899
8,621

$18,805
26,417
15, 890
17, 095
23,245
11,851
21,564
11, 236
12,147
10,114
8,137
14, 754

$4,000
8, 500
7, .000
11,000
2,500
7,000
10, 000
7,000
1,500
2,000
3,000
6,000

$2,137
1,916
472
917
4,575
4,168
5,427
1,878
1
516
453
2,976

$25,050
36,881
23, 590
29,146
30,472
23,134
37, 205
20, 217
13, 712
12,641
11,636
23,826

18,209 j

10,883

129, 213

35,504

122,144

191, 255

69, 500

25, 436

287, 510

N o v e m b e r 1942

4,011

13,503

121, 886

73,478 j

107,734

191, 856

87, 500

24,427

304, 228

D e c e m b e r 1941

40,167

7.805

219, 446

35,336 i

63,751

186, 532

90,500

29,826

319. 300

All B a n k s ( D e c e m b e r 19*2)

1

.......

C a p i t a l stock, s u r p l u s , a n d u n d i v i d e d profits.

162




Federal Home Loan Bank Review

Table 1 3 — S A V I N G S — S a l e s of war bonds 1

Table 1 4 . — S A V I N G S — H e l d by institutions

[Thousands of dollars]

[Thousands of dollars]

Period

Series E

$1, 622, 496
341, 085
5, 988, 849
667,411
397,989
337, 599
.. _
326, 660
421,831
433, 223
508,118
474, 206
566, 609
587, 854
541, 573
725, 777
_

1941
December
1942January
February
March
April
May
June
July
Augustr ...
September r
October r
November r..
December

2

___

__

...

Series F

Series G

$207, 681
33, 272
652, 044

$1,184,868
154, 242
2, 516, 065

77, 559
51, 820
41,070
40,003
42,465
41,041
73, 691
55, 586
66, 728
51, 321
44, 766
65,994

315, 576
253, 391
179, 223
163,839
170,060
159,681
319,053
204, 548
204,907
175,178
148,211
222, 398

Total
$3, 015, 045
528,599
9,156, 958
1,060, 546
703, 200
557,892
530,502
634,357
633,945
900,861
734,340
838, 244
814,353
734, 549
1, 014,168

1

U. S. Treasury War Savings Staff, Actual deposits made to the credit of
the2 II. S. Treasury.
Prior to May 1941: "Baby bonds."
• Revised on basis of wire reports.

Insured
savings and
loans l

E n d of period
1940: June
_.____.-._
December
1941: June
....
December......
1942: J a n u a r y . . . .
February
March
April
May
_
June
July
August
September
October..
November
December.

_.__..
__..
._
...
_

_

$2,020,123
2, 202,556
2,433, 513
2, 597, 525
2, 589,466
2, 600,172
2, 612,736
2, 633,014
2, 660,098
2, 736, 258
2, 757, 929
2,798,621
2,834,079
2, 873.822
2,912, 717
2,983,310

Mutual
savings
banks 3

Insured
commercial
banks•

$10, 589,838
10, 617, 759
10, 606.224
10,489, 679

$12, 754, 750
13,062,315
13,107,022
13,261,402

10, 354, 533

13,030, 610

10,620, 957

1

Private repurchasable capital as reported to the FHLB Administration.
2 Month's Work. All deposits.
3 F D I C . Time deposits evidenced by savings passbooks.

Table 1 5 . — I N S U R E D A S S O C I A T I O N S — P r o g r e s s of institutions insured by the FSLIC
[Amounts are shown in thousands of dollars]
Operations
Federal
Home
N e w priLoan Bank
Private
N e w mort- v a t e investadvances
repurgage loans
ments
chases

Total
assets

N e t first
mortgages
held

Private
repurchasable
capital

2,237
2,277

$2,709,184
2,932,305

$2,130,124
2,343,047

$2,020,123
2,202, 556

$236,913
220, 789

$124,133
171,347

$67, 751
56,363

$43,626
65,586

$20,418
22,865

46.8
34.9

2,313
2,343

3,159, 763
3,362,942

2, 555,393
2,751,938

2, 433,905
2,597,525

206, 301
196,240

144,331
193,275

85,117
63,506

61,448
74,801

26, 779
35,728

43.6
47.8

2,349
2,353
2,358
2,363
2,363
2,374
2,380
2,380
2,386
2,390
2,396
2,398

3,313,418
3,323,180
3,335,101
3,356,213
3,384,344
3,461,228
3,439,097
3,482,056
3,513,096
3,548, 692
3, 588, 995
3, 651, 598

2, 754,777
2, 763,579
2, 774,108
2,790,135
2,800,673
2,827,956
2,837,925
2,856,588
2, 866,497
2,871,968
2, 875,165
2, 871, 641

2,589,466
2,600,172
2,612,736
2,633,014
2,660,098
2, 736,258
2,757,929
2,798,621
2,834,079
2,873,822
2, 912, 717
2, 983, 310

191, 769
186,254
185,664
185,651
185, 710
185,783
176,995
169,493
169,202
169,162
169, 257
169,167

180,360
172,260
167,535
161,571
157,870
170,068
152,302
139,670
125,308
113,856
103, 329
113,977

49,549
49,387
56,934
62,015
59,006
58,642
61,062
58,785
61,508
59,021
48,017
46, 705

105,792
53,449
56,701
58,193
53,808
72,788
103,821
70,262
68,082
73,124
64,697
91, 029

118,666
47,229
47,086
40,443
31,503
26,152
87,059
41, 534
40,114
37,720
30, 738
30, 219

112.2
88.4
83.0
69.5
58.5
35.9
83.9
59.1
58.9
51.6
47.5
33.2

1,421
1,437

1,725,817
1,871,379

1,403,289
1,544,494

1,266,041
1, 386,823

197,268
181,431

90,489
127,255

47,435
37, 715

29,404
44, 531

11,022
12,135

37.5
27.3

.

1,452
1,460

2,028,138
2,173,326

1, 687,087
1,824,646

1, 553, 712
1,668,415

169, 247
160,060

103, 696
144,049

57, 542
41,182

40,030
48,872

14, 530
20,400

36.3
41.7

_

1,461
1,461
1,461
1,464
1,464
1,464
1,465
1.464
1,466
1,466
1,468
1,467

2,131, 212
2,133,251
2,137,579
2,151,862
2,170,868
2,205,921
2,182,337
2,198, 357
2, 214,101
2,235,726
2, 259, 670
2, 299, 895'

1,824,376
1,829,218
1,832,341
1,842,422
1,846,790
1,849,400
1,852,972
1,856,269
1,861,062
1,862, 593
1,862, 796
1, 853, 868

1,658,444
1,662,269
1,667,983
1,683,232
1, 701,065
1,735,932
1,748, 584
1,767, 665
1, 788,000
1,814,156
1,839,506
1, 882, 051

156,079
151,295
150, 776
150,776
150,776
150, 776
143,324
136,779
136,518
137,108
137, 208
137, 208

132,843
127,235
123,748
118,639
116,327
127, 623
113, 347
103,180
92, 943
83,095
75,865
84,135

31,142
31,919
36,325
38,484
36,966
35,279
37,007
36, 620
37, 987
35,555
28,163
27, 381

70,962
35,670
37,377
38, 301
35,759
47,495
69,919
45, 724
44,589
47,222
42,076
58, 937

81,663
30,714
30,000
24,088
18,515
14, 794
58.508
26,707
24, 745
22,019
18,174
16, 530

115.1
86.1
80.3
62.9
51.8
31.1
83.7
58.4
55.5
46.6
43.2
28.0

816
840

983,367
1,060,926

726,835
798,553

754,082
815,733

39,645
39,358

33,644
44,092

20,316
18,648

14, 222
21,055

9,396
10, 730

66.1
51.0

1941: J u n e
December.

861
883

1,131, 625
1,189,616

868,307
927,292

800,193
929,110

37,054
36,180

40,635
49,226

27, 575
22,324

21,418
25,929

12. 249
15,328

57.2
59.1

1942: January
February
March
April
May..
JuneJuly
August.
Septembjer
October
November
December

888
892
897
899
899
910
915
916
920
924
928
931 1

1,182,206
1,189,929
1,197,522
1,204,351
1,213,476
1,255,307
1,256,760
1,283,699
1,298, 995
1,312,966
1, 329, 325
1.351,703 1

930,401
934,361
941, 767
947,713
953,883
978,556
984,953
1,000, 319
1,005, 435
1,009, 375
1,012, 369
1, 017, 773

931,022
937,903
944,753
949,782
959,033
1,000,326
1,009,345
1,030,956
1,046.079
1,059,666
1,073,211
1.101,259

35,690
34,959
34,888
34,875
34,934
35,007
33,671
32,714
32,684
32, 054
32,049
31,959

47, 517
45,025
43,787
42,932
41,543
42,443
38,955
36,490
32,365
30,761
27,464
29, 842

18,407
17,468
20,609
23,531
22,040
23,363
24,005
22,165
23,521
23,466
19,854
19,324

34,830
17,779
19,324
19,892
18,049
25,293
33,902
24, 538
23,493
25,902
22,621
32,092

37,003
16, 515
17,086
16,355
12,988
11,358
28,551
14,827
15,369
15,701
12, 564
13,689

106.2
92.9
88.4
82.2
72.0
44.9
84.2
60.4
65.4
60.6
55.5
42.7

N u m b e r of
associations

Period and class of association

Government investment

Repurchase ratio

ALL INSURED

1940: June
December

_

1941: June
. _ . . _ _ .
December
1942: January
February
March
April
May
June
July
August
September.
October
November
December. _

_____
_

_.

_._

_
_
_
...
.
_

_

._

__

...

FEDERAL

1940: June
December..
1941: J u n e
December
1942: January
February
March
April
May
June
July
August
September
October
November
December

_
_

_
..

STATE

1940: J u n e . .
December. _

_

...

.

_

February 1943




'

163

Amendment to Rules and Regulations
FHLBA
Bulletin No. 14
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 F O R T H E
F E D E R A L S A V I N G S AND L O A N SYSTEM R E L A T I N G TO T H E
A P P O I N T M E N T O F A C O N S E R V A T O R OR R E C E I V E R F O R
A F E D E R A L S A V I N G S AND LOAN ASSOCIATION AND T H E

POWERS AND DUTIES OF A CONSERVATOR.

(Adopted

and effective January 25, 1943.)
An amendment of major character to the Rules
and Regulations for the Federal Savings and Loan
System, adopted by the Federal Home Loan Bank Administration on January 25, 1943, provides that:
The F H L B Administration may appoint the Federal Savings and Loan Insurance Corporation as
receiver for a Federal association when such appointment is for the purpose of liquidation, and the Administration may appoint an individual as conservator
for a Federal association pending further disposition
of the case. After appointment, the Insurance Corporation, as receiver, would be subject to the provisions of Section 204.6, et seq., of the regulations
enacted in August 1941, and the conservator would
be subject to the provisions of the regulations for the
powers and duties of a conservator as outlined in
the new amendment.
This amendment conforms, with only minor
changes, to one proposed on January 19, 1942. The
changes contained in the new amendment have been
effected as follows:
(1) by repealing sections 204.3, 204.4 and 204.5 thereof
(2) by changing the number of section 204.17 to section 204.3
(3) (a) by adding anew "Part 208. Powers of Receiver and Conduct of Receiverships" to said Rules and Regulations
(b) by placing the following sections thereunder with their numbers changed as
indicated:
Section 204.6, which is hereby renumbered section 208.1
Section 204.7, which is hereby renumbered section 208.2
Section 204.8, which is hereby renumbered section 208.3
Section 204.9, which is hereby renumbered section 208.4
Section 204.10, which is hereby renumbered section 208.5
Section 204.11, which is hereby renumbered section 208.6
Section 204.12, which is hereby renumbered section 208.7
Section 204.13, which is hereby renumbered section 208.8
Section 204.34, which is hereby renumbered section 208.9
Section 204.15, which is hereby renumbered section 208.10
and (c) by changing to section 208.1 the references in that section formerly numbered section 204.7, now renumbered section 208.2, which references are to that
section formerly numbered section 204.6, now renumbered section 208.1; by
changing to paragraph (a) of section 208.2 the references in those sections formerly
numbered section 204.8, now renumbered section 208.3, and section 204.10, now
renumbered section 208.5, which references are to paragraph (a) of that section
formerly numbered section 204.7, now renumbered section 208.2; and by changing
to section 208.4 the references in those sections formerly numbered section 204.11,
now renumbered section 208.6, and section 204.12, now renumbered section 208.7,
which references are to that section formerly numbered section 204.9, now renumbered section 208.4
(4) by adding to said Rules and Regulations the following new parts anil sections
thereunder:
Part 205. APPOINTMENT OF CONSERVATOR OR RECEIVER FOLLOWING REQUEST

205.1 Request for appointment of conservator or receiver. The board of directors of

164




any Federal association may request the Federal Home Loan Bank Administration to appoint a conservator or receiver, whichever the Federal Home Loan
Bank Administration shall determine.
205.2 Possession by examiner. Pending action on such request, the board of
directors may, by resolution, with the consent of the Governor of the Federal
Home Loan Bank System or any Deputy or Assistant Governor, turn the association over to a Federal Home Loan Bank Administration examiner, who shall
furnish bond in form and amount and with surety acceptable to said Governor,
Deputy or Assistant Governor. If the association is turned over to an examiner,
he shall forthwith post a notice in substantially the following form on the door
of the home office of the association:
By request of the board of directors of this Association, the undersigned is
temporarily in charge of
Federal Savings and Loan Association
,
,
,

Date

Examiner, Federal Home Loan Bank
Administration
No business shall be transacted by the association when in possession of an examiner, except that the examiner may take such action in his name or in the
name of the association as, in his judgment, is necessary to protect the interests
of the association or those of its creditors or members, and, for the period of his
possession, all rights, powers and privileges of its officers and directors shall be
suspended, except the right to address petitions to the Federal Home Loan Bank
Administration. The expenses incurred by the examiner during such period,
including the cost of his bond and the charges for his services as determined by
the Governor, Deputy or Assistant Governor, shall be paid out of the assets of
the association.
205.3 Appointment by Federal Home Loan Bank Administration. The Federal
Home Loan Bank Administration, upon receipt of request by the board of
directors of an association, as provided in Section 205.1 hereof, may, if it shall
find cause for such appointment as stated in Section 206.1 hereof, appoint a
conservator or receiver, in its discretion, for such association. If an examiner
shall be in possession of the association, the Federal Home Loan Bank Administration may order the examiner to turn the association over to the conservator
or receiver, or, if the Federal Home Loan Bank Administration shall not appoint
a conservator or receiver, may order the examiner to turn the association back
to the board of directors.
Part 206. APPOINTMENT OF CONSERVATOR OR RECEIVER.

206.1 Receiver or conservator, appointment. Whenever, in the opinion of the
Federal Home Loan Bank Administration, any Federal savings and loan
association:
(1) is conducting its business in an unlawful, unauthorized, or unsafe manner;
(2) is in an unsound or unsafe condition, or has a management which is unsafe
or unfit, or has a person or persons in a position or situation of dominance or
control, or exercising dominance or control, who is or are an unsafe or improper
person or persons to be in such position or situation or to exercise such dominance or control;
(3) cannot with safety continue in business;
(4) is impaired in that its assets do not have an aggregate value (in the judgment of the Federal Home Loan Bank Administration) at least equal to the
aggregate amount of its liabilities to its creditors, members, and all other
persons;
(5) is in imminent danger of becoming impaired;
(6) is pursuing a course that is jeopardizing or injurious to the interests of its
members, creditors, or the public;
(7) has suspended payment of its obligations;
(8) has refused to submit its books, papers, records, or affairs for inspection to
any examiner or lawful agent appointed by the Federal Home Loan Bank
Administration;
(9) has refused by the refusal of any of its officers, directors, or employees to
be examined upon oath by the Federal Home Loan Bank Administration or
its representative concerning its affairs; or
(10) has failed or refused to observe a lawful order of the Federal Home Loan
Bank Administration,
the Federal Home Loan Bank Administration may appoint the Federal Savings
and Loan Insurance Corporation receiver for such Federal association, which
appointment shall be for the purpose of liquidation, or the Federal Home Loan
Bank Administration may appoint a conservator for such Federal association
to conserve the assets of the association pending further disposition of its affairs.
The appointment shall be by order, which order shall state on which of the above
causes the appointment is based. Any conservator so appointed shall furnish
bond for himself and his employees, in form and amount and with surety accept-

Federal Home Loan Bank Review

abietothe Governor of the Federal Home Loan Bank System, or any Deputy
or Assistant Governor, but no bond shall be required of the Federal Savings and
Loan Insurance Corporation as receiver. The conservator or receiver shall
forthwith upon appointment take possession of the association and, at the time
such conservator or receiver shall demand possession, such conservator or receiver
shall notify the officer or employee of the association, if any, who shall be in the
home office of the association and appear to be in charge of such office, of the action
of the Federal Home Loan Bank Administration. The Secretary of the Federal
Home Loan Bank Administration shall, forthwith upon adoption thereof, mail
a certified copy of the order of appointment to the address of the association as it
shall appear on the records of the Federal Home Loan Bank Administration and
to each director of the association, known by the Secretary to be such, at the
last address of each as the same shall appear on the records of the Federal Home
Loan Bank Administration. If such certified copy of the order appointing the
conservator or receiver is received at the offices of the association after the taking
of possession by the conservator or receiver, such conservator or receiver shall
hand the same to any officer or director of the association who may make demand
therefor.
206.2 Hearing on appointment. Within fourteen days (Sundays and holidays
included) after the appointment of a conservator or receiver for a Federal association not at the time of such appointment in the hands of a conservator, such
Federal association, which has not, by its board of directors, consented to or
requested the appointment of a conservator or receiver, may file an answer and
serve a written demand for a hearing, authorized by its board of directors, -which
demand shall state the address to wrhich notice of hearing shall be sent. Upon
receipt of such answer and written demand for a hearing the Federal Home
Loan Bank Administration shall issue and serve a notice of hearing upon the
institution by mailing a copy of the order of hearing to the address stated in
the demand therefor and shall conduct a hearing, at which time and place the
Federal association may appear and show cause wdiy the conservator or receiver
should not have been appointed and why an order should be entered by the
Federal Home Loan Bank Administration discharging the conservator or receiver. Such hearing shall be held either in the district of the Federal Home
Loan Bank of which such Federal association is a member or in Washington,
D. C , as the Federal Home Loan Bank Administration shall determine, unless
the association otherwise consents in waiting. Such hearing may be held before
the Federal Home Loan Bank Commissioner or before a trial examiner or hearing officer, as the Federal Home Loan Bank Administration shall determine.
Such Federal association, which has not, by its board of directors, consented to
or requested the appointment of a conservator or receiver, may, within seven
days (Sundays and holidays included) of such appointment, serve a written or
telegraphic demand, authorized by its board of directors, upon the Federal
Home Loan Bank Administration for a more definite statement of the cause or
causes for the action. The time of service upon the Federal Home Loan Bank
Administration for the purposes of this Section shall be the time of receipt by
the Secretary of the Federal Home Loan Bank Administration.
206.3 Costs of hearings. Costs, as determined by the Federal Home Loan Bank
Administration, of hearings held pursuant to section 206.2 may be assessed against
the association demanding the same upon the order of the Federal Home Loan
Bank Administration unless the Federal Home Loan Bank Administration finds
upon such hearing that there is no cause for the appointment of a conservator or
receiver.
206.4 Discharge of conservator or receiver. An order of the Federal Home Loan
Bank Administration discharging a conservator and returning the association to
its management shall restore to such Federal association all its rights, powers and
privileges and shall restore the rights, powers and privileges of its officers and
directors, all as of the time specified in such order, except as such order may otherwise provide. An order of the Federal Home Loan Bank Administration discharging a receiver and returning the association to its management shall by
operation of law and without any conveyance or other instrument, act or deed,
restore to such Federal association all its rights, powers and privileges, revest in
such Federal association the title to all its property, and restore the rights, powers
and privileges of its officers and directors, alias of the time specified in such order,
except as such order may otherwise provide.
Part 207.

POWERS OF CONSERVATOR AND CONDUCT OF CONSERVATORSHIPS.

207.1 Take possession, when. Upon appointment, the conservator for a Federal
association shall forthwith take possession of the books, records and assets of every
description of such association. *
207.2 Procedure upon taking possession. Upon taking possession, pursuant to
section 207.1 of these rules and regulations, of such Federal association, the conservator shall forthwith:
(a) post a notice in substantially the following form on the door of the home
office of such association:
Federal Savings
and Loan Association
._.__.,
is in the possession and charge of the undersigned as Conservator under

February 1943




appointment by tlie Federal Home Loan Bank Administration.
Date
Conservator
(b) notify, by written notice served personally or by registered mail or telegraph, all banks, trust companies and all other individuals, partnerships, corporations, and associations known to such conservator to be holding or in
possession of any assets of such association, and
(c) file with the Secretary of the Federal Home Loan Bank Administration a
statement (1) that he has taken possession, pursuant to section 207.1 of these
rules and regulations, of such Federal association and (2) of the posting and
time of posting of the notice pursuant to the provisions of paragraph (a) of this
section, together with a copy of such notice; and such statement shall be conclusive evidence of the posting and time of posting of such notice.
207.3 Succession. Immediately upon the posting of the notice on the door of
such Federal association as provided in paragraph (a) of section 207.2 of these
rules and regulations, the conservator shall succeed to all the rights, powers and
privileges of the Federal association, its officers and directors, or any of them.
Such officers and directors, or any of them, shall not thereafter have, exercise, or
act in connection with, any such rights, powers or privileges, or any asset or property of any nature of the association; provided, however, that nothing herein
shall deny to such officers and directors the right from time to time to address such
petitions, authorized by the board of directors, as they may have to the Federal
Home Loan Bank Administration or its representatives designated to receive
such petitions concerning such association, or to represent the association at
hearings provided for in these rules and regulations.
207.4 Disposition. Unless the Federal Home Loan Bank Administration shall
otherwise order, the Governor of the Federal Home Loan Bank System shall
within twenty days of the appointment of the conservator recommend to the
Federal Home Loan Bank Administration a plan for the reorganization, consolidation, merger, liquidation or other disposition of the association. If such
plan shall provide for the ultimate restoration of the association to normal operations without an involuntary wTrite-down in the association's share capital, the
Federal Home Loan Bank Administration may order the conservator to carry
such plan into effect. The Federal Home Loan Bank Administration may, at
any time, order the association returned to its management and may, before
returning the association to its management regardless of whether such association is subsequently returned to its management, order a meeting of the shareholders for any purpose, including, without any limitation on the generality of
the foregoing, election of new" directors, or of the board of directors for any purpose, including, without any limitation on the generality of the foregoing, the
filling of vacancies on the board of directors or the election of new officers, or may
order meetings of both members and directors. Each such election shall be
supervised by a representative of the Federal Home Loan Bank Administration.
The Federal Home Loan Bank Administration may at any time, without
further hearing as provided in section 206.2 of these rules and regulations, replace
the conservator by appointing the Federal Savings and Loan Insurance Corporation as receiver for the purpose of liquidation.
207.5 Powers and duties of conservator. The conservator, subject to the direction
and supervision of the Governor of the Federal Home Loan Bank System, shall,
after posting notice pursuant to paragraph (a) of section 207.2 of these rules and
regulations, take such action as may be necessary to conserve the assets of the
association pending further disposition of its affairs. The conservator shall
forthwith in his name, in the name of the association, in the name of both, or
otherwise, collect all obligations and money due the association, and in his
name, in the name of the association, in the name of both, or otherwise
(a) may do all things desirable or expedient in his discretion to carry on the
business of the association to an extent consistent with his appointment and to
preserve and conserve the assets and property of every nature of such association;
(b) may exercise all the rights and powers of such association, including, without any limitation on the generality of the foregoing, any rights and powers
under any mortgage, deed of trust, chose in action, opnon, collateral note,
contract, judgment or decree, share or certificate of share of stock, or instrument
of any nature;
(c) may, with the approval of the Federal Home Loan Bank Administration
or of said Governor, pay off and discharge any taxes, assessments, liens, claims,
or charges of any nature against the association or the conservator or any asset
or property of any nature of such association;
(d) may pay out and expend such sums as he shall deem necessary or advisable
(1) for or in connection with the preservation, maintenance, conservation or
protection, or
(2) with the approval of the Federal Home Loan Bank Administration or of
said Governor for or in connection with the remodeling, repair, rehabilitation
or improvement not necessary for such preservation, maintenance, conservation or protection
of any asset or property of such association;
(e) may, with the approval of the Federal Home Loan Bank Administration
or of said Governor,

165

U) pay out and expend such sums as he shall deem necessary or advisable
for or in connection with the preservation, maintenance, conservation or
protection of, or
(2) pay off and discharge any taxes, assessments, liens, claims or charges of
any nature against,
any asset or property of any nature on which the association or conservator has
a lien by way of mortgage, deed of trust, pledge or otherwise, or in which the
association or conservator has an interest of value of any nature;
(f) may, under the direction and supervision of the General Counsel of the
Federal Home Loan Bank Administration, institute, prosecute, maintain,
defend, intervene, and otherwise participate in any and all actions, suits, or
other legal proceedings by and against the conservator or association or in which
the conservator, the association, or its creditors or members, or any of them,
shall have an interest, and in every way to represent such association, its
members and creditors;
(g) (1) may, with the approval of said Governor, employ such assistants and
employees as he may deem necessary for the proper administration of the conservatorship, and shall by bond coverall such assistants and employees in form
satisfactory to such conservator and to the said Governor, the cost of the same
and the cost of the conservator's bond to be paid out of the assets of the association in the possession of the conservator; and (2) shall employ any attorney
or attorneys designated by the General Counsel of the Federal Home Loan
Bank Administration, in connection with litigation or otherwise to give legal
advice and assistance, for the conservatorship generally or in particular instances, and pay retainers and compensation of such attorney or attorneys,
together with all expenses, including, but not limited to, the costs and expenses
of any litigation, as approved by said General Counsel, out of the assets of the
association;
(h) may execute, acknowledge, and deliver any and all deeds, contracts,
leases, assignments, bills of sale, releases, extensions, satisfactions, and other
instruments necessary or proper for any purposes, including, without any
limitation on the generality of the foregoing, the effectuation or termination of
any sale, lease or transfer of real, personal or mixed property. Any deed or
other instrument executed pursuant to the authority hereby given shall be as
valid and effectual for all purposes as if the same had been executed, as the
act and deed of the association or otherwise, by the officers of such association
by authority of its board of directors;
(i) shall immediately transfer the depository bank balances of the association
to Account " R " hereinafter provided for, or to the account with the Federal
Home Loan Bank, of which the association is a member, hereinafter provided
for, and, unless otherwise directed by the Federal Home Loan Bank Administration or said Governor, shall open two accounts in banks insured by the
Federal Deposit Insurance Corporation, as follows:
(1) One of these accounts shall be known as Account " R " and the other
shall be known as Account " D " .
(2) All funds of the association coming into the possession of the conservator
shall be forthwith deposited in Account " R " .
(3) Disbursements shall be made from Account " R " only by transfer to an
account with the Federal Home Loan Bank of which the association is a
member, which transfer may be made by the conservator.
(4) Deposits shall be made in Account " D " only by order of or with the
approval of the Federal Home Loan Bank Administration or the Governor.
(5) The conservator may make disbursements in connection with his duties
as conservator from Account " D " .
(6) All depository bank accounts of the conservator shall be carried as follows:
, Conservator
(Name of Conservator)
for
(Name of Association)
(j) (1) may, with the approval of the Federal Home Loan Bank Administration or said Governor, sell for cash any mortgage, deed of trust, chose in action,
bond, note, contract, judgment or decree, or share or certificate of share of
stock or debt, owing to such association, at not less than the actual amount
owing the association thereon or the face or par value thereof, and
(2) may, with the approval of the Federal Home Loan Bank Administration,
or on terms and conditions approved by the Federal Home Loan Bank
Administration, sell for cash or on terms, or exchange or otherwise dispose
of, at less than the amount owing the association thereon or the face or par
value thereof, in whole or in part, any mortgage, deed of trust, chose in
action, bond, note, contract, judgment or decree, share or certificate of share
of stock or debt, owing to such association;
(k) (1) may lease on a month to month basis, or for a term of not to exceed one
year, and
(2) may, with the approval of the Federal Home Loan Bank Administration, or on terms and conditions approved by the Federal Home Loan Bank
Administration, sell for cash or on terms, lease for a period of more than one
year, exchange or otherwise dispose of, in whole or in part,

166




any or all of the assets and property of the association, real, personal, and mixed,
tangible and intangible, of any nature;
(l) may, with the approval of the Federal Home Loan Bank Administration
or of said Governor, or on terms and conditions approved by the Federal
Home Loan Bank Administration or said Governor, surrender, abandon,
and release any choses in action, or other assets or property of any nature,
whether the subject of pending litigation or not, and reject or repudiate
any lease or contract which he considers burdensome;
(m) may, with the approval of the Federal Home Loan Bank Administration,
or on terms and conditions approved by the Federal Home Loan Bank Administration, settle, compromise, or obtain the release of, for cash or other considerations, claims and demands against such association or the conservator;
(n) may, with the approval of the Federal Home Loan Bank Administration,
or on terms and conditions approved by the Federal Home Loan Bank Administration, settle, compromise, or release, for cash or other considerations, claims
and demands in favor of the association or the conservator;
(o) may, with the approval of the Federal Home Loan Bank Administration,
and on terms and conditions approved by the Federal Home Loan Bank
Administration, borrow money in any amount and from any source and in
any manner, and execute, acknowledge and deliver notes, certificates, and
other evidence of indebtedness therefor and secure the repayment thereof by
the mortgage, pledge, assignment in trust or hypothecation of any or all of
the property, whether real, personal, or mixed, of such association, and such
borrowing may be for any purpose, including, without any limitation on the
generality of the foregoing, protecting or preserving the assets in his possession,
declaring and paying dividends to members and creditors, providing for the
expense of administration, or aiding in the reopening or reorganization of such
association;
(p) may pay out of the assets of the conservatorship all costs and expenses of
the conservatorship and all costs of carrying out or exercising his rights, powers,
privileges and duties as conservator, all as determined by him, except as otherwise provided herein; and
(q) may do such things, and have such rights, powers, privileges, immunities,
and duties, whether or not otherwise granted in these rules and regulations, as
shall be authorized, directed, conferred, or imposed from time to time in specific
cases by order of the Federal Home Loan Bank Administration, or by amendment of these rules and regulations.
For the purposes of this section, (1) asset and property including any mortgage,
deed of trust, chose in action, bond, note, contract, judgment or decree, share
or certificate of share of stock, or debt of the association, and right and power
of the association, shall include any such asset or property, right or power of the
conservator, and (2), the terms "Governor of the Federal Home Loan Bank
System" and "said Governor" shall include any Deputy or Assistant Governor
of the Federal Home Loan Bank System.
207.6 Creditors. The conservator may, after certification by the conservator to
the Federal Home Loan Bank Administration that the assets of the association
will be sufficient to meet all creditor obligations and that the condition of the
association justifies, out of the assets in his possession,
(a) with the approval of the Governor of the Federal Home Loan Bank System,
or any Deputy or Assistant Governor, make disbursements which the association was obligated to make on loan commitments and other valid contracts,
(b) with the approval of said Governor, pay salaries due officers or employees
of the association, permit the payment of outstanding checks given in connection with valid creditor obligations, and pay valid creditor obligations,
or, in the absence of such certification or approval, may, out of the assets of the
association in his possession, pay creditor obligations and make disbursements
which the association was obligated to make on loan commitments, to the extent
determined by said Governor to be compatible with the condition of the association and the proper conduct of its affairs.
207.7 Share interests. The conservator shall not accept any payments on or purchases, or make any repurchases, of share accounts, unless the Federal Home
Loan Bank Administration shall otherwise direct by order, which order, or
orders, shall be posted in a conspicuous place in the principal office of the conservator for conducting the affairs of the association, and such payments or purchases shall be accepted, or such repurchases made, only to the extent and in the
manner, and with segregation to the extent, that the same, if any, may be directed
in such order or orders.
207.8 Examinations, inventories, reports, costs and expenses.
(a) Inventory. As soon as practicable after taking possession, the conservator
shall make an inventory of the assets of such association as of the date of such
taking possession, showing the value as carried on the books of the association,
and the security therefor, if any, in whatever form the same shall exist, with a
brief description of each such asset and such security. Such assets may be
listed in such groups or classes as shall, to the satisfaction of the Governor of
the Federal Home Loan Bank System, or any Deputy or Assistant Governor,
afford full information as to their character and book value, and the conservator shall include a record of the creditor and share liabilities of the associa-

Federal Home Loan Bank Review

Hon. One copy of such inventory shall promptly be filed with the Secretary
to the Federal Home Loan Bank Administration, one copy with the Office of
the Governor of the Federal Home Loan Bank System, and one copy shall be
retained in the principal office of the association, so long as such office is maintained by the conservator.
(b) Examinations and audits. Each Federal association for which a conservator
has been appointed may be examined and/or audited (with appraisals when
deemed advisable by the Federal Home Loan Bank Administration) by the
Examining Division of the Federal Home Loan Bank Administration as
directed by the Federal Home Loan Bank Administration. The cost, as
determined by the Federal Home Loan Bank Administration, of examinations
including office analysis thereof, audits, and any appraisals made in connection
therewith, shall be paid from the assets of the association unless otherwise
ordered by the Federal Home Loan Bank Administration.
(c) Forms and reports. The conservator shall follow such accounting practices
as may, from time to time, be prescribed by the Governor. The conservator
shall make such reports as may be required by the Federal Home Loan Bank
Administration or the Governor.

The City of Homes Building and Loan Association of Philadelphia, 207
South Ninth Street (liquidation).
Locomotive Engineers Federal Savings and Loan Association, 532 Real
Estate Trust Building (merger with North Philadelphia Federal
Savings and Loan Association, Philadelphia).
*
Oakdale Building and Loan Association, 2515 Germantown Avenue
(merger with The Home Building and Loan Association, Philadelphia).
Old York Road Federal Savings and Loa i Association, 3713 Germantown
Avenue (merger with North East Federal Savings and Loan Association, Philadelphia).
S. A. V. E. Federal Savings and Loan Association, 3218 North Front
Street (merger with North East Federal Savings and Loan Association,
Philadelphia).
South Star Federal Savings and Loan Association, 1530 Chestnut Street
(merger with Cheltenham Federal Savings and Loan Association,
Cheltenham).
The Trust Federal Savings and Loan Association, 1936 East Cumberland
Street (merger with North East Federal Savings and Loan Association,
Philadelphia).

II. FEDERAL SAVINGS AND LOAN ASSOCIATION
CHARTERED BETWEEN DECEMBER 16, 1942
AND JANUARY 15, 1943

207.9 Final discharge and release of conservator.

(a) Final report. At such time as the conservator be relieved of his duties, the
conservator shall file with the Federal Home Loan Bank Administration a
detailed report in form satisfactory to the Federal Home Loan Bank
Administration.
(b) Final discharge. Unless otherwise directed by the Federal Home Loan
Bank Administration, upon the completion of the duties of the conservator or
at such time as the conservator shall be otherwise relieved of his duties, an examination and audit may be directed by the Federal Home Loan Bank Administration in connection with the leport of the conservator hereinbefore required. The accounts of the conservator shall be approved or disapproved,
and, if approved, the conservator shall thereupon be given a complete and final
discharge and release.
207.10 Inspection of reports. All inventories, statements and reports of the conservator shall be in at least four copies unless otherwise directed by the Federal
Home Loan Bank Administration or the Governor. One copy shall be filed with
the Federal Home Loan Bank Administration, the other copies with the Office of
the Governor of the Federal Home Loan Bank System, and each of the inventories, statements, and reports shall constitute permanent records of each conservatorship open for inspection at such times and on such conditions as may be from
time to time directed by the Federal Home Loan Bank Administration or, in the
absence of such directions, whenever the office of the Secretary of the Federal
Home Loan Bank Administration shall be open for business.
and (5) by changing the number of section 204.16 to be section 206.5

Directory of Member Institutions
Added during December 1942-January 1943
I. INSTITUTIONS ADMITTED TO MEMBERSHIP
IN THE FEDERAL HOME LOAN BANK SYSTEM
BETWEEN DECEMBER 16, 1942 AND JANUARY
15, 1943
DISTRICT NO. 2

N E W JERSEY:

Orange:
The Orange Building and Loan Association, 235 Main Street.

DISTRICT NO. 3
Pennsylvania:
Philadelphia:
The Capital Building and Loan Association, 3114 North Front Street
TERMINATIONS
LOAN BANK

OF MEMBERSHIPS IN THE FEDERAL
HOME
SYSTEM
BETWEEN
D E C E M B E R 16, 1942 A N D

JANUARY 15, 1943
MISSOURI:

Kansas City:
Central Federal Savings and Loan Association of Kansas City, 115 East
Ninth Street (merger with Safety Federal Savings and Loan Association of Kansas City).
N E W JERSEY:

Pompton Plains:
Pompton Plains Federal Savings and Loan Association, Newark-Pompton Turnpike (merger with Pompton Federal Savings and Loan Association, Pompton Lakes).

DISTRICT NO. 5
OHIO:

Massillon:
Peoples Federal Savings and Loan Association of Massillon, 58 Lincoln
Way.

CANCELLATIONS OF FEDERAL SAVINGS AND LOAN ASSOCIATION
CHARTERS B E T W E E N DECEMBER 16, 1942 AND JANUARY 15,

1943
MISSOURI:

Kansas City:
Central Federal Savings and Loan Association of Kansas City, 115 East
Ninth Street (merger with Safety Federal Savings and Loan Association of Kansas City).

N E W JERSEY:

Pompton Plains:
Pompton Plains Federal Savings and Loan Association, Newark-Pompton Turnpike (merger with Pompton Federal Savings and Loan
Association, Pompton Lakes).

PENNSYLVANIA:

Johnstown:
First Federal Savings and Loan Association of Johnstown, 116 Market
Street (merger with Friendly City Federal Savings and Loan Association, Johnstown).
Philadelphia:
Old York Road Federal Savings and Loan Association, 3713 Germantown Avenue (merger with North East Federal Savings and Loan
Association, Philadelphia).
S. A. V. E. Federal Savings and Loan Association, 3218 North Front
Street (merger with North East Federal Savings and Loan Association, Philadelphia).
South Star Federal Savings and Loan Association, 1530 Chestnut Street
(merger with Cheltenham Federal Savings and Loan Association,
Cheltenham).
The Trust Federal Savings and Loan Association, 1936 East Cumberland Street (merger with North East Federal Savings and Loan
Association, Philadelphia).

III. INSTITUTIONS INSURED BY THE FEDERAL
SAVINGS AND LOAN INSURANCE CORPORATION
BETWEEN DECEMBER 16, 1942 AND JANUARY
15, 1943
DISTRICT NO. 4
NORTH CAROLINA:

Durham:
• Security Building and Loan Association, 214 West Main Street.
DISTRICT NO. 5

OHIO:

Massillon:
Peoples Federal Savings and Loan Association of Massillon, 58 Lincoln
Way.
DISTRICT NO. 7
ILLINOIS:

Peoria:
Commercial Travelers Loan and Homestead Association, 614 Main
Street,
Taylors ville:
United Savings Association, 110 North Main.

INSURANCE

PENNSYLVANIA:

Johnstown:
First Federal Savings and Loan Association of Johnstown, 116 Market
Street (merger with Friendly City Federal Savings and Loan Association, Johnstown).
Philadelphia:
The Art-Workers Building and Loan Association, 2128 South Norwood
Street (merger with The Provident Building and Loan Association of
Philadelphia).

February 1943




CERTIFICATES CANCELLED B E T W E E N
16, 1 9 4 2 AND JANUARY 15, 1943

DECEMBER

MISSOURI:

Kansas City:
Central Federal Savings and Loan Association of Kansas City, 115 East
Ninth Street.

PENNSYLVANIA:

Johnstown:
First Federal Savings and Loan Association of Johnstown, 116 Market
Street.

167

Honor Roll
(Continued

from p. 149)

NO. 7—LITTLE ROCK (Continued)
***First Federal Savings and Loan Association, Beaumont, Tex,
************* F^t F e d e r a i Savings and Loan Association, Belzoni, Miss.
**First Federal Savings and Loan Association, Big Spring, Tex.
*****First Federal Savings and Loan Association, Corinth, Miss.
*****First Federal Savings and Loan Association, Corpus Cbristi, Tex.
**First Federal Savings and Loan Association, Dallas, Tex.
* First Federal Savings and Loan Association, El Paso, Tex.
* First Federal Savings and Loan Association, Helena, Ark.
First Federal Savings and Loan Association, Las Vegas, N. Mex.
First Federal Savings and Loan Association, Little Rock, Ark.
***First Federal Savings and Loan Association, Lubbock, Tex.
* First Federal Savings and Loan Association, McComb, Miss.
First Federal Savings and Loan Association, Monroe, La.
First Federal Savings and Loan Association, Starkville, Miss.
•First Federal Savings and Loan Association, Waco, Tex.
****Gladewater Federal Savings and Loan Association, Gladewater, Tex.
****Greater New Orleans Homestead Association, New Orleans, La.
Guaranty Savings and Homestead Association, New Orleans, La.
•Hammond Building and Loan Association, Hammond, La.
**Home Building and Loan Association, Plainview, Tex.
Lufkin Federal Savings and Loan Association, Lufkin, Tex.
*****Mariarma Federal Savings and Loan Association, Marianna, Ark.
Mineral Wells Building and Loan Association, Mineral Wells, Tex.
****Morrilton Federal Savings and Loan Association, Morrilton, Ark.
•Mutual Deposit and Loan Company, Austin, Tex.
***Mutual Building and Loan Association, Las Cruces, N. Mex.
******Nasnville Federal Savings and Loan Association, Nashville, Ark.
Natchez Building and Loan Association, Natchez, Miss.
•Navasota Federal Savings and Loan Association, Navasota, Tex.
Newport Federal Savings and Loan Association, Newport, Ark.
Oak Homestead Association, New Orleans, La.
Orange Federal Savings and Loan Association, Orange, Tex.
Panola County Federal Savings and Loan Association, Batesville, Miss.
***Piggctt Federal Savings and Loan Association, Piggott, Ark.
•Pioneer Building and Loan Association, Waco, Tex.
•••Pocahontas Federal Savings and Loan Association, Pocahontas, Ark.
••••••Ponchatoula Homestead Association, Ponchatoula, La.
••••••••Quanah Federal Savings and Loan Association, Quanah, Tex.
•••••••Riceland Federal Savings and Loan Association, Stuttgart, Ark.
•**Roswell Building and Loan Association, Roswell, N. Mex.
Ruston Building and Loan Association, Ruston, La.
••San Angelo Federal Savings and Loan Association, San Angelo, Tex.
San Antonio Building and Loan Association, San Antonio, Tex.
•••Slidell Savings and Homestead Association, Slidell, La.
St. Tammany Homestead Association, Covington, La.
Travis Building and Loan Association, San Antonio, Tex.
•Tucumcari Federal Savings and Loan Association, Tucumcari, N. Mex.

Pioneer Savings and Loan Association, McPherson, Kans.
•Routt County Federal Savings and Loan Association, Oak Creek, Colo.
***********gcnUy-jer Federal Savings and Loan Association, Schuyler, Nebr.
Security Building and Loan Association, Iola, Kans.
NO. 11—PORTLAND
••••Auburn Federal Savings and Loan Association, Auburn, Wash.
•Cheyenne Federal Savings and Loan Association, Cheyenne, Wyo.
Commercial Savings and Loan Association, Kelso, Wash.
Deer Lodge Federal Savings and Loan Association, Deer Lodge, Mont.
Ellensburg Federal Savings and Loan Association, Ellensburg, Wash.
•First Federal Savings and Loan Association, Chehalis, Wash.
First Federal Savings and Loan Association, Everett, Wash.
First Federal Savings and Loan Association, Idaho Falls, Idaho.
••First Federal Savings and Loan Association, Klamath Falls, Oreg.
•First Federal Savings and Loan Association, Lewiston, Idaho.
•First Federal Savings and Loan Association, McMinnville, Oreg.
••••First Federal Savings and Loan Association, Mount Vernon, Wash.
•First Federal Savings and Loan Association, Pendleton, Oreg.
•First Federal Savings and Loan Association, Port Angeles, Wash.
••First Federal Savings and Loan Association, Sheridan, Wyo.
First Federal Savings and Loan Association, Spokane, Wash.
*********First Federal Savings and Loan Association, The Dalles, Oreg.
•Lakeview Federal Savings and Loan Association, Lakeview, Oreg.
Lewis County Savings and Loan Association, Chehalis, Wash.
••Liberty Savings and Loan Association, Yakima, Wash.
••Mason County Savings and Loan Association, Shelton, Wash.
Mutual Federal Savings and Loan Association, Salem, Oreg.
••Polk County Federal Savings and Loan Association, Dallas, Oreg.
Port Angeles Savings and Loan Association, Port Angeles, Wash.
•Prudential Savings and Loan Association, Seattle, Wash.
Rawlins Federal Savings and Loan Association, Rawlins, Wyo.
Thurston County Federal Savings and Loan Association, Olympia, Wash.
•••••TJmpqua Savings and Loan Association, Roseburg, Oreg.
Washington Federal Savings and Loan Association, Bothell, Wash.
•Walla Walla Federal Savings and Loan Association, Walla Walla, Wash.
Wenatchee Federal Savings and Loan Association, Wenatchee, Wash.
"•West Side Federal Savings and Loan Association, Seattle, Wash.
Yakima Federal Savings and Loan Association, Yakima, Wash.
NO. 12—LOS ANGELES
•Central Federal Savings and Loan Association, San Diego, Calif.
••Century Federal Savings and Loan Association, Santa Monica, Calif.
Citrus Belt Building and Loan Association, Riverside, Calif.
First Federal Savings and Loan Association of Hawaii, Honolulu, T. H.
•••••First Federal Savings and Loan Association, Huntington Park, Calif.
First Federal Savings and Loan Association, Santa Barbara, Calif.
First Federal Savings and Loan Association, Santa Monica, Calif.
Hollywood Building and Loan Association, Hollywood, Calif.
••Home Federal Savings and Loan Association, San Diego, Calif.
•Liberty Building-Loan Association, Los Angeles, Calif.
Los Angeles American Building and Loan Association, Los Angeles, Calif.
Santa Maria Guarantee Building and Loan Association, Santa Maria, Calif.

No. 10—TOPEKA
•American Building and Loan Association, Oklahoma City, Okla.
•Citizens Federal Savings and Loan Association, Wichita, Kans.
••Erie Building and Loan Association, Erie, Kans.
First Federal Savings and Loan Association, Beloit, Kans.
First Federal Savings and Loan Association, Englewood, Colo.
First Federal Savings and Loan Association, Ijamar, Colo.
•First Federal Savings and Loan Association, Liberal, Kans.
•First Federal Savings and Loan Association, Shawnee, Okla.
•••First Federal Savings and Loan Association, WaKeeney, Kans.
********* First Federal Savings and Loan Association of Sumner County, Wellington, Kans.
Garnett Savings and Loan Association, Garnett, Kans.
Hays Building and Loan Association, Hays, Kans.
•Home Federal Savings and Loan Association, Ada, Okla.
••Home Federal Savings and Loan Association, Grand Island, Nebr.
•Home Federal Savings and Loan Association, Tulsa, Okla.
••••••••••Horton Building Loan and Savings Association, Horton, Kans.
Lyons Building and Loan Association, Lyons, Kans.
Monte Vista Building Association, Monte Vista, Colo.
Osage Federal Savings and Loan Association, Pawhuska, Okla.
Peoples Federal Savings and Loan Association, Ardmore, Okla.
••Peoples Federal Savings and Loan Association, Tulsa, Okla.

Higher Priorities for Home Building
I

TO facilitate the delivery of materials for the
construction of publicly and privately financed
housing, the War Production Board, on January 11,
assigned blanket preference ratings of AA-3 to most
war-housing construction programmed by the National Housing Agency. The new rating applies
to all newly scheduled war housing, to most units
now under construction, and to conversion projects.
Only construction previously carrying ratings of
AA-4 is affected by the change. The new AA-3
ratings should speed the signing of contracts for
many new projects, and more rapid delivery of
materials should hasten the completion of many units.
Federal Home Loan Bank Review

168




U

S . GOVERNMENT PRINTING O F F I C E : 1 9 4 3

OFFICERS OF FEDERAL HOME LOAN BANKS
BOSTON
B.

CHICAGO

J. ROTHWELL, Chairman; E . H . W E E K S , Vice Chairman; W . H .

C. E . BROUGHTON, Chairman; H . G. ZANDER, Jr., Vice Chairman; A. R.

N E A V E S , President; H . N . F A U L K N E R , Vice President; L. E . D O N O V A N ,

G A R D N E R , President; J. P . D O M E I E R , Vice President; H . C. J O N E S ,

Secretary-Treasurer; P . A. H E N D R I C K , Counsel; BEATRICE E . HOLLAND,

Treasurer; CONSTANCE M . W R I G H T , Secretary; UNGARO & SHERWOOD,

Assistant Secretary.

Counsel.
DES

N E W YORK

MOINES

Chairman;

C. B . B O B B I N S , Chairman; E . J. R U S S E L L , Vice Chairman; R. J. RICHARD-

N U G E N T F A L L O N , President; R O B E R T G. CLARKSON, Vice President;

SON, President-Secretary; W . H . LOHMAN, Vice President-Treasurer;
J. M . M A R T I N , Assistant Secretary; A. E . MUELLER, Assistant Treas-

GEORGE

MACDONALD,

Chairman; F .

V.

D.

LLOYD, Vice

D E N T O N C. L Y O N , Secretary; H . B . D I F F E N D E R F E R , Treasurer.

urer; EMMERT, JAMES, N E E D H A M & L I N D G R E N , Counsel.

PITTSBURGH
LITTLE ROCK
E . T . T R I G G , 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,

W.

Secretary-Treasurer.

C. JONES, J R . , Chairman; W . P . GULLEY, Vice Chairman; B . H .
WOOTEN, President; H . D . WALLACE, Vice President-Secretary; J. C.
C O N W A Y , Vice President; W . F . T A R V I N , Treasurer; W. H . CLARK, J R . ,

WINSTON-SALEM

Counsel.
TOPEKA

H . S. HAWORTH, Chairman; E . C. BALTZ, Vice Chairman; O. K . L A R O Q U E ,

President-Secretary;

Jos. W.

HOLT,

Vice

President-Treasurer;

P . F . GOOD, Chairman; L. W. B A U E R L E , Vice Chairman; C. A. STERLING,

President-Secretary; R . H . BURTON, Vice President-Treasurer; JOHN
S. D E A N , J R . , General Counsel.

T . S P R U I L L THORNTON, Counsel.

CINCINNATI

PORTLAND
R.

P.

DIETZMAN,

Chairman; V M . M E G R U E

BROCK, Vice

W A L T E R D . SHULTZ, President; W . E . J U L I U S , Vice
t a r y ; A. L .

MADDOX,

Treasurer;

TAFT,

Chairman;

President-Secre-

STETTINIUS &

B E N A. PERHAM, Chairman; A. C . BOUCHER, Vice Chairman; F. H .

HOLLISTER,

JOHNSON,

General Counsel.

President-Secretary;

IRVING

BOGARDUS,

Vice

President-

Treasurer; Mrs. E . M . J E N N E S S , Assistant Secretary; V E R N E D U S E N BERY, Counsel.

INDIANAPOLIS

Los

H. B . W E L L S , Chairman; F . S. CANNON, Vice Chairman-Vice President;

D.

F R E D T . G R E E N E , President; G. E . OHMART, Vice President; C. R U S S E L L

HURFORD,

PARKER,

Secretary-Treasurer; V I V I A N

Secretary-Treasurer;

D E V A U L T , Counsel.




HAMMOND,

BUSCHMANN,

KRIEG

&

ANGELES

G. D A V I S , Chairman; H O R A C E S. W I L S O N , Vice Chairman; M . M .
President;

C. E .

F R E D E R I C K S , Attorney.

BERRY,
SIMPSON,

Vice

President;

Assistant

F . C.

Secretary;

NOON,
HELEN