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Vol. 5
* ^ 4 >
FEDERAL
HOME LOAN BANK
REVIEW
JANUARY
1939
ISSUED BY
FEDERAL HOME LOAN BANK BOARD
WASHINGTON D . C .
CONTENTS FOR JANUARY
FEDERAL
HOME
SPECIAL
1939
ARTICLES
Page
The new examination form
98
Research on building materials and structures
101
Moving days as a factor in the seasonal fluctuations of residential construction . . 103
Foreclosures in nonfarm communities decrease
104
Traditional building methods and lower cost small houses
108
LOAN
STATISTICS
BANK
REVIEW
Published monthly by tha
FEDERAL HOME L O A N
BANK BOARD
John H. Fahey, Chairman
T. D. Webb Vice Chairman
F. W. Catlett
W. H. Husband
F. W. Hancock, Jr.
FEDERAL HOME LOAN
BANK SYSTEM
Residential construction and home-financing activity
Residential construction
Foreclosures
Small-house building costs
Mortgage-lending activity of savings and loan associations
Federal Home Loan Bank System
Federal Savings and Loan System
Federal Savings and Loan Insurance Corporation
Statistical tables
Nos. 1, 2: Number and estimated cost of new family dwelling units . . . .
No. 3: Indexes of small-house building costs
Nos. 4, 5: Estimated lending activity of all savings and loan associations . .
No. 6: Index of wholesale price of building materials
No. 7: Monthly operations of Federal and State-chartered insured associations
No. 8: Institutions insured by the Federal Savings and Loan Insurance Corporation
No. 9: Federal Home Loan Bank System
Nos. 10, 11, 12: Home Owners' Loan Corporation
110
112
112
113
113
114
115
115
116
116
118
120
121
122
122
123
123
FEDERAL SAVINGS AND LOAN
ASSOCIATIONS
FEDERAL SAVINGS AND LOAN
INSURANCE CORPORATION
HOME OWNERS' LOAN
CORPORATION
REPORTS
From the month's news
107
Announcement: F. H. L. B. directors and chairmen
124
Directory of member, Federal, and insured institutions added during NovemberDecember
126
Resolution of the Board
127
SUBSCRIPTION P R I C E OF REVIEW. The FEDERAL HOME LOAN BANK REVTEW is the Board's medium of communication with member institutions of the
Federal Home Loan Bank System and is the only official organ or periodical publication of the Board. The REVIEW will be sent to all member institutions without
charge. To others the annual subscription price, which covers the cost of paper and printing, is $1 Single copies will be sold at 10 cents. Outside of the United States,
Canada, Mexico, and the insular possessions, subscription price 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 B U D G E T .
116853—3
THE NEW EXAMINATION FORM
Adoption of a simplified report reduces
the work involved in an examination
and cuts its cost to the association.
•
T H E adoption by the Federal Home Loan Bank
Board of a new report of examination is creating
widespread interest among savings and loan associations and supervisory authorities throughout the
country. This new report, based upon the experience of two years of supervision and analysis of savings and loan associations, simplifies and reduces the
detailed contents of the earlier examination form.
Directly affected by the adoption of the new form,
which has only recently been placed in use by the
Board, are all Federal and insured State-chartered
savings and loan associations. Under the rules and
regulations, an examination is required at least annually of all Federal associations and of those Statechartered associations in which the accounts of members have been insured by the Federal Savings and
Loan Insurance Corporation. These examinations
are made by one Examining Division, which serves
the Federal Home Loan Bank Board and the Insurance Corporation. This eliminates duplication of
work and permits the preparation of a single report
for the Board and its various agencies.
For the past two years the Examining Division of
the Board has been using an examination form
drawn up jointly by representatives of the Accounting Division of the United States Building and Loan
League, the National Association of Building and
Loan Supervisors, and the Federal Home Loan Bank
Board. With few exceptions, this form has proved
quite satisfactory. I t was designed to embody the
best practices developed by examiners and supervisors during many years of experience and was immediately recognized as an important contribution to
supervision. A recent survey of State authorities
charged with the supervision of savings and loan
associations showed that six States and Hawaii are
now using the uniform report for the examination of
the institutions under their jurisdiction. Nine other
States either use the uniform report in part or have
designed forms very similar to it for their own use.
Use of the examination form during the 2-year
period showed, however, that there was some duplication of work on subsequent examinations and that
certain detailed information was not required. Sug98
gestions were made by the United States Building
and Loan League, by State building and loan supervisors, and others to simplify the form and to condense the contents. After the various interested
groups had considered these recommendations, a revised report form was prepared. The new form was
adopted by the Federal Home Loan Bank Board and
has been approved by the United States Building
and Loan League and by the Association of State
Supervisors.
This new report of examination is a simplification
of the original form uniformly recommended by
these agencies, and it is anticipated that its use will
result in savings in examination costs paid by the
associations examined by the Board. Comparison
of the old and new forms substantiates this conclusion, although the extent to which use of the new
form will reduce examining costs cannot yet be accurately determined. I n an individual case, savings
in examination costs will depend on the accounting
system and records maintained, on the degree of compliance with uniform standard practice, and also
upon the change in the condition of the association.
NEW EXAMINATION FORM
REAL ESTATE OWNED
No.
Balance last examination
Book Value
AA
Acquired since last examination
69
Sold since last examination
Balance
=
Gross Income
9.1*55.30
10.650*00
S 229,100.00
10
27,971.10« 155.329.1*9
t
8 218,1^0.00
8 183,300.90
JL
«
31,500.00
« 197,600.00
11,856.1^5
Less Expense
6.75k.22
Net Income or Loss
t
Total Taxes Due & Unpaid on R.E.O.
• Sale Price 8
Appraised Value
8 173^^-^n
3_
Total
Schedule No. 3.
% 102.23
S
1,365.1*2
30.850.00
Fee/era/ Home Loan Bank Review
income and expense and the resulting net income or
loss for all real estate as reflected on the general
books of the association. The amount of taxes due
and unpaid on real estate and the sale price of those
properties disposed of since the last examination are
the only other items required.
A second major change simplifies the analysis
of the contractually delinquent mortgage loans.
Formerly, those loans subject to comment or criticism were classified into seven groups requiring as
many schedules. If a particular loan fell into more
than one group, it was relisted in the corresponding
schedule. A final schedule was then prepared summarizing all loans subject to comment or criticism
and eliminating the various duplications. Only
three schedules are provided in the new form and
no loan will be listed more than once regardless of
the number of classifications into which it may fall.
This new procedure reduces the time necessary to
list such loans, since the duplication which existed in
the old form is eliminated, and the summary schedule is no longer required.
An additional time-saver is the fact that no loan
is to be listed in the new form as "subject to comment or criticism" because of contractual arrearages where the total debt is less than 50 percent of
the original amount of the loan, provided interest,
taxes and insurance are current. This will undoubtedly eliminate in some examination reports loans
which formerly appeared in these schedules.
COMPARISON OF THE N E W AND OLD FORMS
The analysis of the "Keal Estate Owned" account
introduces what is probably the most significant
change in the entire report of examination. The old
form provided for the listing of each individual
parcel of real estate owned by the association. Thirteen columns were used to present the required information, including among others the property identification, the cost at acquisition, the net income for
the fiscal period, and the last appraisal on each
property, as shown in the accompanying illustration.
On subsequent examinations it was still required to
list each parcel, even though most of these had
already been listed in the previous examination report. This procedure, which required considerable
time and involved much duplication of work, was
probably the major objection to the old examination
form.
A summary schedule, as illustrated, now replaces
this detailed listing, showing the number of parcels, book value and appraised value at the date of
last examination, the acquisitions or capitalizations
since last examination, the sales or charge-offs since
last examination, and finally the current status of
this account. The treatment of the account in this
manner saves much of the time formerly required
by the examiner to secure the necessary information
for the analysis of each individual parcel. The summary schedule also includes a report of the gross
OLD EXAMINATION FORM
REAL ESTATE OWNED
IDENTIFICATION
TYPE
OATE
ACQUIRED
ORIGINAL
AMOUNT
OF LOAN
8-13-30
1-16-31
1*-18-31
8-5-33
2-10-32;
i*-l6-3i*
3,000. 1
3,500.
5,500.
2,500.
1*,000.
1*,500.
2,832.15
3,103.20
l*,8l*l.35
2,1*15.25
3,782.56
4,119.35
56. 71*5 Fifth S t . 1
57. 132 Maple St, 1
58. 902 Main S t . 1
59. 205 F i r s t Ave.l
6-11-37
8-6-37
9-10-37
10-5-37
2,600.
3,600.
2*,000._
3,1*00.
2,322.22
3,518.25
3,316.1*2
2,995.15
Total (59 parcels)
January
1939
*171*.500. $157,638.21*
OFFS
pf
E
L"
BOOKr
TAMXTD .':?:r.
BRANCES
VALUE
ASSESSMENTS
$ -0$ 132.15 $ 2700.00 $
200.00
-03303.20
1*600.00
21*1.35
-021+15.25
-03500.00
282.56
100.00
1*219.35
-0-0.150.00
-0-
-0118.25
-0-0-
2322.22
31*00.00
-31*66.1*2
^2995.15
(IF
-0-
1*2.50
86.00
-036.15
-0-
21.00
-030.00
-0-
$21*25.50 $Z*73iu25 $155329.1*9 $1365.1*2
ANY)
NET INCOME
ESTIMATED
LAST
MONTHLY
12-MONTH
FISCAL
PERIOD
RENTAL
BASE
81*.75
91.50
1*7.65
120.00
150.00
135.00
18.50
20.00
1*5.00
21.00
23.50
26.00
ill
305 Main S t . 1
913 Euclid Av.l
26 Ash S t .
2
287 Brown St. 1
856 High S t . 1
102 Sixth St. 1
1.
2.
3.
1*.
5.
6.
«"•«-
COST AT
ACQUISITION
Schedule No. 3
15.00
20.00
26.50
22.00
A P P R A I
2,850. Appraisal
1*,000. Comnittee
A
2*,600.
L
3,000.
L
3,500.
1*»500.
5-15-37
5-15-37
10-l*-37
10-l*-37
104+-37
10-l*-37
$i*.9i*2.15 $ 1.11*6.50
S A L
10-1L-37
10-1L-37
lo-lt-37
10-1L-37
3,000.
3,1*00.
1*,500.
3,500.
j
* 1?7,600.
99
The former report also required the examiner to
obtain the date and amount of the last appraisal on
properties securing those loans subject to criticism.
I n some cases such appraisals were not only too old
to be of any great value but were not readily available to the examiner. Much time was consumed in
locating and recording them. This requirement has
now been eliminated, and it is only in those few cases
where the total debt exceeds the original amount
of the loan that the examiner will request such
information.
I n one important respect no change is made from
the old form: contractual arrearages are still used as
a basis for determining whether a mortgage loan
should be classified as "subject to criticism". The
amount of time required to make the computation
in the course of an examination is considerable and
managers have found that the maintenance of accurate records showing the contractual delinquency
for each loan account has resulted in a substantial
saving of examination costs to their associations.
The last major change in the new examination
form affects the "Real Estate Sold on Contract" account. Formerly all real estate sold on contract
was listed. I n the new form real estate contracts
are listed only when contractually in arrears. As
in the case of mortgage loans, the examiner is no
longer required to secure and record the date and
amount of the last appraisal on these properties.
Here also, the association may save much of the examiner's time by maintaining an accurate record of
the contractual arrearages on all real estate contracts.
Although these three major revisions in the examination report represent the most important
changes, a number of minor adjustments have also
been made. Certain confidential information is requested of the examiner in his report of each association. This material has been substantially reduced
in the new form, only nine items remaining of the
original fourteen. The schedule of Officers, Directors, Attorneys, and Employees has been simplified.
Certain information has been required in the past
in connection with bylaws, charter, accounting system, office quarters, fees and other charges, withdrawals and maturities, mortgage plan and similar
items covering the operation of the association. This
material has been greatly condensed and many items
completely eliminated in the revised form.
The remaining exhibits and schedules of the report form show no major revisions. Exhibits showing Statements of Condition, Operations, Undivided
100
Profits, and Reserves have not been changed, ' ; ng
based on the approved uniform statements and system of accounts. The schedules of Real Estate in
Judgment and Subject to Redemption, Investments,
and Office Building have not been revised, having
proved quite satisfactory in the old form.
EFFECT OF THE N E W EXAMINATION FORM
The judgment of competent observers is that the
new form of report will thoroughly reflect the financial condition and character of the institutions examined and that its simplification in most cases will
reduce the work involved in an examination and will
cut examining costs. Efforts are being made by the
Federal Home Loan Bank Board as well as by the
United States Building and Loan League to encourage the use of this uniform examination report
by all regulatory agencies in the country, as they
believe it to be the best form yet devised which
meets with the approval of the various interested
groups and one which can be used uniformly for
both Federal and State supervision.
Added impetus has been given to the reduction of
examination costs by the Federal Home Loan Bank
Board, lowering per diem costs by 10 percent. A
summary of its resolution appears on page 127.
Officials of the Examining Division of the Board
agree, on the basis of their experience with the old
examination form, that examination costs in most
instances will be reduced. They make it clear, however, that the extent of this reduction will depend
upon the cooperation of the institutions in setting
up and maintaining the standard accounting system
and records. Particular stress is laid upon the necessity of maintaining an adequate and accurate schedule of contractual arrearages on mortgage loans and
real estate contracts, as well as keeping all records
of the association current.
To Officers of Member Institutions
The Department of Public Relations,
Federal
Home Loan Bank Board, would like to receive
copies of a few of the advertisements which
managers feel have proved directly productive
of new business for their institutions, together
with comments on the results obtained.
Advertisements for investments or loans in newspapers,
direct-mail pieces, radio scripts, and other media
are requested.
Federal Home Loan Bank Review
RESEARCH ON BUILDING MATERIALS AND
STRUCTURES
•
T E C H N I C A L research in the building field has
long been one of the functions of the National
Bureau of Standards. I t has carried on a program
of developing adequate methods for testing, of making actual tests, and of initiating research in such
building materials as cement, lime, brick, tile, and
steel. Results of these studies have been published
and made available to the public through the Bureau's Journal of Research or through building trade
journals. Many of the results have been made a
part of the specifications of the Federal Government
and of cooperating technical societies and industries.
Home-financing institutions have realized for
many years their inability to obtain adequate information to keep abreast of the constant changes in
the building industry. As the various housing
agencies of the Government were created, they too
became aware of the fact that there was no centralized organization which was devoted to the accumulation of facts about building technique: that is, a
study of construction methods which combine various building materials into the structural elements
of a house, rather than consideration of these materials as isolated units. To satisfy this need, Congress, in providing for the appropriation of the
Bureau of Standards during the fiscal year beginning July 1, 1937, designated a sum of $198,000 to be
used for a 2-year research program with special
reference to those materials and methods suitable
for use in low-cost housing.
While the actual conduct of the experiments has
been left to a committee of Bureau division chiefs,
the project has been planned with the advice of representatives from the housing agencies of the Government, including the Federal Home Loan Bank
Board. Laboratory methods and test procedures
have been developed which will speed up the slow
process of actual service or use. Heretofore, the
only reliable criterion for evaluating a specific
method of construction was to build an actual dwelling, and then sit back and await Nature's own test:
time. The Bureau of Standards has now developed
"weather accelerators" which concentrate the effects
of many years of winter blizzards and summer thunJanuary 1939
derstorms within the space of a few days or a few
weeks. I n this way research is controlled, and results are more readily available.
To date, the Department of Commerce, through
its Bureau of Standards, has published eight reports
of its scientific activity. The first of these, issued
in June 1938, entitled "Kesearch on Building Materials and Structures for Use in Low-Cost Housing"
(Eeport BMS 1), serves as an introduction to this
new series of publications. I n it are stated the objectives of the study, the procedure to be followed, its
scope, and finally the intention of the committee to
seek a solution by encouraging the cooperation of
various groups within the building industry.
Keport BMS 2 deals with "Methods of Determining the Structural Properties of Low-Cost House
Constructions" and describes the methods used for
measuring the strength, stiffness, and resistance to
abuse of constructions intended for walls, partitions,
floors, and roofs of low-cost houses and apartment
buildings. These tests are part of an attempt to
develop a standard procedure for evaluating the
structural properties of house construction. The
Bureau believes that "ultimately such performance
tests may find their way into building codes to
replace present requirements, which specify details
of sizes of members for use in conventional types
of construction".
The "Suitability of Fiber Insulating L a t h as a
Plaster Base" was the subject of the third report
(BMS 3) which also investigated the properties of
wall and plaster boards. The recommendations
made included the use of a quick-setting, strong
plaster not less than one-half inch thick for plastering over fiber insulating lath. This was followed
by a progress report of the study based upon "Accelerated Aging of Fiber Building Boards" (BMS
4). Vegetable fiber boards are relatively inexpensive in comparison to other building materials used
for the same purposes, but the advisability of substituting them in low-cost housing construction is
dependent upon their ability to retain original properties of durability while in constant use. Results
thus far are incomplete, but it is expected that this
I0I
work will finally result in performance data for the
selection of the most satisfactory material.
The story of a 3,500 mile auto tour is the text of
Eeport BMS 6, most recent of the Bureau's publications. The "Survey of Roofing Materials in the
Southeastern States", completed with the cooperation of field representatives of the H . O. L. C. Reconditioning Section, includes detailed studies of
roofing materials on new and old constructions in
representative cities, as well as a tabulation, by
States, of the kinds of roofing materials used on
more than 10,000 rural and small-town dwellings.
The report stresses the fact that the observations
made apply only to the States of Virginia, West
Virginia, North and South Carolina, Georgia,
Florida, Alabama, and Tennessee. Later trips are
scheduled for surveys in other sections of the country
to supplement the work in this area.
When the wall of a house exposed to wind-driven
rains allows dampness to penetrate to the interior,
damage to the interior finish may be sufficient to require its replacement, a matter of considerable
expense. "Accordingly," states the seventh report,
"there is great interest on the part of builder and
owner (Editor's note—and mortgage-lending institution) in methods of constructing walls which will
be resistant to the penetration of rain and in methods
of 'waterproofing' existing walls." The most important factor in the "Water Permeability of
Masonry Walls" (BMS 7) is the quality of workmanship, although attention to the details of surface
finish, wall thickness, and kind of brick used contribute to the results obtained.
Reports 8 and 9 are devoted to the use of steel in
the structural elements of the house. "Methc
of
Investigation of Surface Treatment for Corrosion
Protection of Steel" (BMS 8) does not attempt to
draw definite conclusions, because the program which
includes various types of tests has not been completed. Report BMS 9 has been devoted to inquiries into the "Structural Properties of the Insulated Steel Construction Company's 'FramelessSteel' Constructions for Walls, Partitions, Floors,
and Roofs". Technical facts from this and other reports will provide basic data from which architects
and engineers can determine whether construction
methods meet desired performance requirements.
The importance of research of the nature included
in these reports cannot be overestimated from the
standpoint of the home-mortgage lending institution.
Opportunities to broaden the volume of low-cost
housing construction may be found when adequate
information is available for substituting satisfactory
though less expensive materials and technique. A
definite knowledge of sound building methods is a
source of protection not only to the prospective
owner, but also to the organization making the loan
for construction purposes.
Savings and loan associations, their technical advisers, and others interested in this program may
request the Superintendent of Documents, Government Printing Office, Washington, D. C , to place
their names on a special mailing list to receive
notices of new papers in this series as soon as they
are issued. There is no charge for receiving such
notices. The eight reports already issued may be
obtained from the Superintendent of Documents at
the price of 10 cents each.
Appointment of Federal Home Loan Bank Board Member
F r a n k W. Hancock, Jr., of Oxford, North Carolina, appointed by the President to succeed
Judge William F . Stevenson of Cheraw, South Carolina, as a member of the Federal Home Loan
Bank Board, assumed his duties on J a n u a r y 5.
Mr. Hancock was a member of the House of Eepresentatives from North Carolina from 1931
to 1939. As a member of the Banking and Currency Committee of the House, he took an active
part in the drafting and passage of the Federal Home Loan Bank Act and the Home Owners'
Loan Act. H e has taken an active interest in the building and loan and housing fields in his
State for many years.
102
Federal Home Loan Bank Review
N*OVING DAYS AS A FACTOR IN THE SEASONAL
FLUCTUATIONS OF RESIDENTIAL CONSTRUCTION
•
I N most of the larger metropolitan areas, custom has established two annual moving days—
May 1 and October 1. Many believe that this practice has been a contributing factor in the sharp seasonal fluctuations in residential building 1 evidenced
by the extreme peaks of activity during the spring
and fall months for the construction industry, particularly within the sphere of the large urban community. A recent study published in Dun's Review 2 lends support to this contention by emphasizing the influence of these highly concentrated moving
periods upon all phases of the real estate field.
There is a very logical and fundamental economic
reason for the adoption of October 1 as a standard
moving day because until recent years building activity was carried on only in warm weather. Buildings which were begun in the spring were planned
to be ready for occupancy by early fall. Thus apartments were available by early October, and with subsequent lease expirations occurring in the same
month, it became customary in many localities to
establish October 1 as moving day. There is not so
apparent a basis for the earlier moving date although
many attribute it to a natural urge which arises
from the atmosphere of spring. Population shifts
at this season have been laid to a wanderlust which
affects many people at this time of the year.
Architects and contractors are well aware that this
seasonal production schedule is no longer necessary
from the standpoint of construction technique.
Progress in building methods and in the development of building materials has greatly minimized
the consideration of weather as a factor in determining when the erection of homes and apartments shall
begin. However, although a builder is able to carry
on a year-round construction program, he finds that
the general acceptance of a standard moving date
makes it difficult for him to rent his dwellings at any
other time of the year. Consequently, after the
standard lease date very little building is done during the winter months, contributing to the basic
*See October 1938 FEDERAL HOME LOAN BANK REVIEW.
2
See Dun's Review for October 1938, article entitled "Moving Day
Again—But Nothing Is Done About It."
January 1939
national pattern of eight months of building, four
months of slack times.
Any pattern of business activity which displays
such irregularities must be inherently accompanied
by great economic waste. Any business man who
discovers that his merchandising or production is
affected intermittently by periods of excessive activity followed by periods of decadent demand
knows how expensive idle plants and equipment can
be. The article in Durfs Review emphasizes the importance of this economic waste brought about by
the highly seasonal concentration of building activity and of standard moving dates. I t points out
that there are few industries which have seasonal
peaks comparable to those experienced by the real
estate people, moving and storage firms, painters,
decorators, building contractors, utility companies,
and milk companies caused by this period of concentrated activity.
The ultimate effect of these intensified moving
periods is to increase the cost of these changes to
everyone involved. F o r the tenant changing his
place of residence, it means that he must pay more
for the transportation of his goods. I n New York
City the hourly rate for a van is increased over 70
percent during this period of the year. I n addition
to this, the length of time required for the job is
often increased because of the inability to obtain
freight elevators. Unskilled help is often called in
to supplement experienced but overtaxed personnel.
This often results in a high rate of damage to furniture en route.
Storage and moving companies must keep large
quantities of equipment to meet the demands of these
moving dates. Consequently, the vans are idle the
greater part of the year and the expense of maintaining them must be realized during this brief span
of activity. Firms whose concern it is to recondition apartments for a new renter are faced with exactly the same problems. All work is done under
pressure. Incompetent employees must be hired in
order that the work will be finished according to
schedule. Other organizations not immediately con(Continued on p. 127)
103
FORECLOSURES
IN NONFARM
COMMUNITIES
DECREASE
•
W I T H 38 States and the District of Columbia
reporting a lower rate of foreclosures upon nonfarm homes during the 12-month period ended October 31,1938, than for the 12 months ended October
31,1937, foreclosure activity in nonfarm communities
will be approximately 22 percent lower in 1938 than
in 1937, according to estimates of the Division of
Research and Statistics of the Federal Home Loan
Bank Board.
The accompanying bar chart reveals that for the
country as a whole, there were 6.5 foreclosures for
every 1,000 nonfarm dwellings during the year
ended October 31, 1938. The longer bars show that
the concentration of foreclosures during this year
has been greatest in the Northeast, particularly in
the States of Connecticut, Massachusetts, New Jersey, and New York. Nebraska was the only other
State with a rate of foreclosure high enough to
group it with these four Northeastern States.
Western States made a very favorable showing.
Only; four States west of the Mississippi had foreclosure rates in excess of the national average
(Missouri, Nebraska, Oklahoma, and South Dakota),
and 12 out of these 22 Western States recorded less
than half the national average foreclosure rate.
Four Federal Home Loan Banks could emphasize the record in their Districts: not one State in
the Chicago, Little Rock, Portland, and Los Angeles Bank Districts had a foreclosure rate as high
as the national average.
The Southeastern States also showed a low rate
of foreclosure activity. All States in the WinstonSalem Bank District were well below the national
average, except Maryland and North Carolina
which were slightly above.
COMPARISON OF 1938 W I T H
1937
There were 8.5 foreclosures per 1,000 nonfarm
dwellings during the year ending October 31, 1937;
104
RATE OF NON-FARM REAL ESTATE FORECLOSUF"\
(REPRESENTS THE NUMBER OF FORECLOSURES PER 1,000 HOWS)
12 MONTH PERIOD
12 MONTH PERIOD
ENDING OCT 3IJ937
ENDING OCT. 31,1938
5
IP
15
15
\0_ ' 5
i
i J
i —
UNITED-STATES
DISTRICT NO. I
—CONNECTICUT—
MAINE
.MASSACHUSETT!
NEW HAMPSHIRE
-RHODE ISLAND.VERMONT--DISTRICT NO. 2
—NEW JERSEY—
— N E W YORK—.
DISTRICT NO. 3
DELAWARE—
.PENNSYLVANIA—|
..WEST VIRGINIADISTRICT NO. 4
ALABAMA
DIST OF COLUMBIA
FLORIDA
.GEORGIA
....MARYLAND—
I.N0RTH CAROLINA.
SOUTH CAROLINA.
VIRGINIA
DISTRICT NO. 5
KENTUCKY....
OHIO
...TENNESSEE....
DISTRICT NO. 6
INDIANA
..-MICHIGAN — .
DISTRICT NO. 7
ILLINOIS
|—WISCONSIN—
DISTRICT NO. 6 j
IOWA
.—MINNESOTA.-.
MISSOURI
..NORTH DAKOTA..
..SOUTH DAKOTA..
DISTRICT NO. 9
..-ARKANSAS-...
—..LOUISIANA—
—MISSISSIPPI—
. - N E W MEXICO-. — .TEXAS
DISTRICT NO. 10
—COLORADO—
KANSAS
.--NEBRASKA--.
.--OKLAHOMA—|
DISTRICT NO. II
.-—IDAHO—
...MONTANA
OREGON
--UTAH
|—WASHINGTON-..
.-..WYOMING
DISTRICT NO. 12
ARIZONA
—CALIFORNIA—|
NEVADA--
Federal Home Loan Bank Review
ic the 12-month period ending October 31, 1938,
there were only 6.5 foreclosures. Contributing to
this marked reduction in the national average was
the fact that only eight States registered an increasing foreclosure rate in 1938. The bar chart
brings out clearly the distribution of reductions in
foreclosure activity and permits comparison between the 1938 and the 1937 foreclosure rates in
each State.
I t will be seen that during the 12 months ending
October 31, 1938, out of the 22 States located west
of the Mississippi River, only Missouri, Nebraska,
North Dakota, Oklahoma, and South Dakota reported five or more foreclosures per 1,000 nonfarm
homes. During this period, the States of Arkansas, California, Kansas, Minnesota, and Utah were
added to the Western group which registered a foreclosure rate of less than 5.0.
On October 31, 1937, only three States east of the
Mississippi showed less than 5.0 foreclosures for
1,000 nonfarm homes (Georgia, New Hampshire,
and South Carolina). During the following 12
months, lowered foreclosure activity in Delaware,
Illinois, Kentucky, Michigan, Mississippi, Virginia,
and West Virginia enabled these States to join them.
FORECLOSURES IN METROPOLITAN AREAS
Studies by the Division of Research and Statistics also show that the more highly urbanized the^
county, the higher the rate of foreclosures is likely
to be. Although the annual foreclosure rate was
lower in each of the four county size groups during
1938, the greatest decreases occurred in counties
having from 20,000 to 59,999 nonfarm dwellings.
The following table shows the comparative fore-
RATE OF NON-FARM REAL ESTATE FORECLOSURES, NOVEMBER 1938
(PROJECTED ON AN ANNUAL BASIS)
REPRESENTS
THE NUMBER OF FORECLOSURES PER 1,000 HOMES
U.S. AVERAGE
5.9
January 1939
116853—39
105
closure rates in different size counties in 1937 and
1938:
Size of county
Under 5,000 dwellings
5,000-19,999
20,000-59,999
60,000 and over
Total
Annual rate of
foreclosures
per 1,000 dwellings,
year ending Oct. 81,
1937
1938
4.2
3.0
5. 9
4. 7
9. 7
6.9
12.6
9.9
8.5
6. 5
FORECLOSURE ACTIVITY DURING NOVEMBER
I n spite of the fact that the rate of nonfarm foreclosures increased 7.3 percent over an exceptionally
low October, November was the third lowest month
of the year. Foreclosure activity stood nearly 15
percent below the same month of 1937 and remained
below the rate for the average month of 1928. The
October-November rise was counter to the 2.7-percent average decrease between these months over
the last four years but may be attributed to the increased activity in the larger communities. The
rise was reflected in six of the Federal Home Loan
Bank Districts (Boston, New York, Pittsburgh,
Chicago, Portland, and Little Rock) as 24 States
indicated increases.
Comparing the foreclosure activity in November
1938 with that of November 1937, 35 States reported
declines ranging from 82 percent to 5 percent, and
all of the Bank Districts except New York also
showed a fewer number of foreclosures in 1938 than
in 1937.
The November foreclosure rate for the United
States, if projected on an annual basis, was 5.9
cases for each 1,000 nonf arm dwellings. This compares favorably with an average rate of 6.5 for the
12-month period ending October 31, 1938. The geographic density of the projected annual rate of the
nonf arm real estate foreclosures based on November
1938 is shown on the map on the preceding page.
This shaded map emphasizes the more intensive
foreclosure activity of the East. Only three of the
22 States west of the Mississippi have a projected
rate greater than five foreclosures per 1,000 homes
and there are only seven with more than four cases
for each 1,000 dwellings.
All States which have a foreclosure rate above 7.5
are located east of the Alleghenies, and New York,
Connecticut, and Massachusetts have the highest
annual rates in the country.
106
F. H. L B. B. Sixth Annual Repo
•
AN encouraging outlook in the field of residential construction, long a dark cloud across the
economic sky, is the theme of the Sixth Annual
Report of the Federal Home Loan Bank Board
which made its appearance in new and more attractive form during January. This report, covering the operations of the Federal Home Loan Banks,
the Federal Savings and Loan Associations, the
Federal Savings and Loan Insurance Corporation,
and the Home Owners' Loan Corporation for fiscal
period ending June 30, 1938, emphasizes the relative stability exhibited by financial institutions in
general, savings and loan associations in particular,
during a year marked by substantial declines in
other forms of economic activity.
Outstanding among the innovations of this year's
report is an extensive survey of conditions in the
housing and mortgage-financing fields and the factors which have an influential effect upon them.
According to the report, "The 'building boom' which
many analysts have seen looming on the horizon
has not materialized up to the present time; and
yet a substantial recovery of residential construction is an important, if not essential, element in
any decisive up-turn of the business cycle."
I n spite of a potential demand for 1.5 to 3 million
dwelling units (the result of several years of building activity below normal requirements for population increases, and for average annual replacement of losses due to fire, demolition, and obsolescence), there are several obstacles in the path of
an extensive recovery. Among the deterrent factors are the spread between rentals and building
costs, the "overhang" of properties repossessed by
financial institutions, and the pronounced lack of
uniformity of real estate laws. To these may be
added the relatively high cost of building, and the
excessive burden and unequal distribution of taxes
upon real estate. Also inter-related is the problem of raising the family income level of the masses,
and of establishing a reasonable degree of certainty
regarding the stability of their future incomes.
Considerable improvement in the first two of these
obstacles, the closing of the gap between rents and
building costs, and a reduction in the "overhang",
contribute largely to the improved outlook for the
entire industry.
Copies of this report may be secured from the
Superintendent of Documents, Government Printing Office, Washington, D. C , for 30 cents each.
Federal Home Loan Bank Review
« « « FROM THE MONTH'S NEWS » » »
Canada Revises Housing Laws . . . . .
The Canadian Government has enacted new legislation to encourage the construction of low-cost
houses for persons of small incomes. I n addition to
providing for Government assistance in loans to
families with low incomes, this law authorizes aid to
persons in small or remote communities; allows
mortgage assistance not to exceed 90 percent of the
lending value of owner-occupied houses of which the
lending value is not in excess of $2,500; and makes
the Government responsible for certain mortgage
losses incurred by lending institutions.
The Government is also authorized, through the
making of loans, to participate in the housing activity of limited-dividend corporations and local housing authorities. This may be done to the extent of
80 percent of the construction costs of houses built
by limited-dividend groups, and up to 90 percent of
those erected by local housing authorities.
Furthermore, the Canadian Government in some
cases is permitted to pay a share of the municipalproperty taxes levied against detached single-family
houses, the construction of which is begun between
June 1, 1938 and December 31, 1940.
Monthly Labor Review, U. 8. Department of Labor, October 1938.
In Seattle—It's Cheaper to Own!
Seattle provides the latest rebuttal to Stuart Chase's
article, "The Case Against Home Ownership." From
data secured by a W. P . A. land use survey of all
home sales and dwellings offered for rent since January 1, 1938, Roy B. Misener, King County assessor,
has prepared a report to prove that so far as Seattle
is concerned it is cheaper to own than to rent.
A house renting for $35 a month could be purchased at a monthly cost of $28—a net saving of $7
to the owner. I n estimating the monthly expense to
be charged against the owner, the following factors
were considered: interest at a rate of 6 percent; an
assessment for real estate taxes and insurance; a liberal amount for maintenance; and an allowance for
depreciation and obsolescence depending upon the
type of construction. Low real estate taxes are an
important factor in these figures as a recent survey
of the National Association of Real Estate Boards
shows that the tax bills of the typical Seattle home
are $83 per year, while the national average is $177.
Freehold {official publication, National
Real Estate Boards), Oct. 15, 1938.
January 1939
Association
of
Post-War Family Expenditures
Wage-earners and low-salaried clerical workers
with annual incomes from $1,200 to $1,500 spent
more for housing facilities during the years 19341936 than they did during a similar period from
1917-1919 according to statistics released recently
by the Bureau of Labor Statistics. A study has been
made of the money disbursements for families at this
income level and reveals the changes in spending habits which have occurred in each of 35 identical cities.
The purchasing power of the worker's dollar was
on the average slightly higher in 1934-1936 than
in the earlier survey. Expenditures for housing (including fuel, light, and refrigeration) and for miscellaneous items were uniformly higher, except for
housng expenditures in Grand Rapids. The average
amounts spent for clothing were lower in each city
in 1934-1936. This was also true for the food
expenditures in 24 out of the 35 cities.
A warning signal is indicated by the fact that in
almost half of the cities for which figures are
available from 1934-1936, the family balance sheet
showed a net deficit, and an improvement in consumption cannot be generally maintained unless
higher incomes can be earned to pay for it.
Monthly Labor Review, U. 8. Department of Labor, November 1938.
* * *
"The housing needs of the country are not confined
to our large cities although the conditions in metropolitan areas are usually the center of attention.
Most of our urban homes have to be supplied in the
cities of medium size and in the smaller communities.
From year to year 75 percent and more of the building of 1- and 2-family houses is in communities of
100,000 population and less, and about 65 percent of
this volume in towns of 25,000 and less. There is a
very great home shortage in these centers and home
building in these areas, inconspicuous as it may be in
individual communities, represents the largest part
of urban housing construction.
"There is no good reason why families with annual
incomes of $1,200 to $1,400 and even less than $1,000
in the smaller cities and towns cannot be taken care
of amply by private enterprise if it will set itself
to the task. I t is being done already in many sections and is becoming general."
Chairman John H. Fahey, Federal Home Loan Bank
Board, before V. S. Building and Loan League Convention,
Nov. 18, 1938.
107
TRADITIONAL BUILDING METHODS AND
LOWER COST SMALL HOUSES
•
A G K E A T deal of thought and effort has been
expended in the last few years to produce better
small houses for less money through the use of various new materials and methods of prefabrication.
The opinion is frequently expressed that the chief
problem facing the producers of prefabricated
houses is that of reducing the cost of production.
There are a number of factors involved which make
this difficult. One of the most important is that the
individual prefabricated structural units must, in
general, be more rigid and more accurately finished
than is required for satisfactory small-house construction, in order to facilitate handling and because
of the necessity for close fitting of sections. As a
result, prefabricated structural units are frequently
built of materials that, although excellent for the
purpose, are more expensive than ordinary materials. Consequently, even with the savings in labor
attained by factory prefabrication, it is difficult to
reduce the total cost to that of prevailing construction.
Many new materials have been developed that
definitely contribute to improved construction.
However, their use should be subject to the judgment of the trained technician, as information concerning them, when used in combination under varying conditions, humidity and temperature, is as yet
inadequate and frequently inaccurate. 1
A t present the adoption of new materials for
small-house construction depends very largely upon
the cooperation of local builders and material dealers. Established practices of builders, mechanics,
and the restrictions of local building codes often
place strong barriers in the path of the general use
of new materials. Many of these difficulties are
deeply rooted in the basic composition of the construction industry and are perpetuated by city and
State building ordinances with which the industry
must comply. I t seems likely that the complexity of
these difficulties will prohibit their removal or solution in the near future.
1
Rapid strides in experimentation with building materials for
use in low-cost houses are being made by the National Bureau of
Standards. The results, to date, of their efforts are available to all
who are interested (see page 101).
108
Until prefabrication methods have been established and new materials which will substantially
reduce the cost of the small house come into general
use, the best opportunities for the construction industry to build lower cost houses can be found in
more efficient use of conventional building materials
and methods. Again it is a problem requiring the
services of an experienced technician. However, in
view of the extensive study and small remuneration
involved in small-house planning, it is impossible
for the architect to participate in the small-house
field without departing from customary architectural practice. Such a readjustment demands not
only a revision of technical methods, but also a fundamental change in concept which will permit closer
cooperation with the other elements of the building
industry.
The Federal Home Building Service P l a n has
been established in recognition of the need for technical services in the small-house field. Operating
on a broad scale as a mechanism of cooperative effort, this program permits the trained expert to
render his much needed service at a fee commensurate with the economic limitations of low-cost construction and also establishes a strong bond of mutual interest between all factions of the construction industry. An example of what may be accomplished through more efficient use of traditional
building materials and methods is found in the design offered by the Federal Home Building Service
Plan on the opposite page.
DESCRIPTION OF HOUSE
The New England "Salt Box" house dates back
to the 17th century, and yet as an architectural form
lends itself very admirably to the economical and
modern manner of life. Waste space in this dwelling has been reduced to a minimum and it has been
designed to conform material requirements to standard stock sizes, thus effecting considerable savings
in material and labor on doors, window frames, and
structural members. The location of bedroom No.
1 on the stair landing level permits the provision
{Continued on p. 128)
Federal Home Loan Bank Review
TWK
?o*TtoM
KITCHEN
|8-6"«IM-i-
CONSTRUCTION....
W O O D FRAME
EXTERIOR FINISH
WIDE SIDING
CEILING HEIGHTS: 1st FL 8'; 2nd FL 7'-6"
• * POACH
dAAAOC.
1
UPPEfc PART OP
bCD
ROOM NO. J
£*-€=-
A NEW ENGLAND "SALT BOX"
.Approved for Use Under the Federal Home Building Service Plan
January 1939
Designed by John M. Billings—Architect—Washington, D. C.
109
SUMMARY OF RESIDENTIAL CONSTRUCTION
AND HOME-FINANCING ACTIVITY
/. Seasonally adjusted residential construction index resumes upward trend in November.
A. Decline of 3 percent in new units is favorable
considering usual seasonal recession of 15 percent.
B. November construction almost 85 percent greater than November of last year,
C. Construction for 11 months approximates a 50,000
II. Building costs maintain a gradual downward
A.
unit increase over the corresponding period in
1937.
trend.
The wholesale price index of building materials is now 89 percent of 1926 level—8 percent below the May 1937
peak.
B. Labor costs record slight declines during October and November, contrary to the 3-year trend of rising costs.
C. Cincinnati is the only Bank District to reflect significantly
III.
Foreclosures register greater-than-seasonal
IV.
Mortgage'lending
higher material
costs this fall.
increase, but are 60 percent below the depression high levels,
activity of savings and loan associations follows seasonal decline from October to
November.
A. Construction and reconditioning loans in November exceed those of a year ago, but total loans are 1 percent less.
B. Eleven-month volume is 12 percent behind the same period last year.
V. Manufacturing
employment and pay rolls continue to expand as a result of improvement in general business conditions.
RESIDENTIAL BUILDING ACTIVITY
AND SELECTED INFLUENCING FACTORS
1926*100
600
1929
110
1930
1931
1932
1933
1934
600
1935
1936
1937
1938
1939
Federal Home Loan Bank Review
ESIDENTIAL CONSTRUCTION and HOME-FINANCING ACTIVITY
•
N E W housing activity, as indicated by the
seasonally corrected building index, rose in November after a sharp decline in the preceding month.
Although the total number of units represented by
residential building permits issued in communities
of over 10,000 population declined somewhat from
October, this was a relatively favorable showing for
that time of year when a much greater drop is normally expected.
The rising trend in housing activity, which has
now continued over a year's time, has been reflected
during recent months in the volume of home construction loans made by savings and loan associations. During every month since July of 1938,
more mortgages have been written by this type of
institution for the financing of home building than
in the corresponding months of the preceding year;
up to that time, 1938 lending activity for the construction of new homes had been below the same
period of 1937.
Foreclosures have continued a distinct though
broken trend toward more normal levels during the
past three and one-half years, and now stand about
60 percent below the extremely high activity of the
depression years.
I n studying the causes for improved real estate
conditions it is noted that construction costs have
been receding to lower levels ever since the summer
of 1937, while the average rental income has approached a parity with such costs—according to the
1926 levels of these two series (see chart on opposite
page). I n recent years there has also been an increase in the marriage rate. New families, in seeking living quarters, have been restricted by the housing shortage accumulated during the depression, and
have thus been encouraged to build.
Although industrial activity in the first half of
December was at a higher average rate than in November on the basis of seasonally corrected weekly
data, the normal December slackening in industrial
operations has prevented a continuance of the sharp
expansion recorded in November.
ESTIMATED NUMBER AND COST OF FAMILY DWELLING UNITS PROVIDED
IN ALL CITIES OF 10,000 OR MORE POPULATION
(Source: Federal Home Loan Bank Board. Compiled from residential building permits reported to U. S. Dept. of Labor)
NUMBER OF UNITS PROVIDED
30
30
28
28
26
26
2 4]
22
24
I
1938
22
1-^-
~T~
20|
COST OF UNITS PROVIDED
18
20
18
1937
16
16
14
14
12
1
10
1931-3 5 AVG.
8
8
6
6
4<
^
**
20
IX
N
4
2
2
Oi
0
January 1939
30
10
0
III
Some favorable business factors at present: aggregate production in the durable-goods industries
has doubled since the second quarter of this year,
though it remains one-fifth below the best levels
in 1937; the United States Department of Labor reported a continued rise in factory employment and
pay rolls during November, contrary to the usual
seasonal trend; the Survey of Current Business estimates that when monthly income payments are adjusted for price changes, real income for the final
quarter of 1938 will at least equal the total for the
concluding quarter of 1937. (This estimate is based
upon a study of monthly income payments, "the
most inclusive single indicator of current economic
change." Monthly income payments have increased
steadily since the low point in May 1938, and total
income paid to individuals will probably approximate at least $64,000,000,000 this year as compared
with $69,000,000,000 in 1937.)
[1926=100]
Residential construction i
Foreclosures (metro, cities)
Rental index (N. I. C. B.)
Building material prices
Manufacturing employment
Manufacturing pay rolls
Average wage per employee
...
Nov.
1938
Oct.
1938
Percent
change
Nov.
1937
35.5
155.0
85.3
89.2
89.1
80.7
90.6
31.3
142.0
85.5
89.8
88.0
80.5
91.5
+13.4
+9.2
-0.2
-0.7
+1.3
+0.2
-1.0
19.4
177.0
87.9
93.7
99.5
89.1
89.5
Percent
change
+83.0
—12.4
-3.0
—4.8
-10.5
-9.4
+1.2
i Corrected for normal seasonal variations.
of units provided, whereas in the corresponding " %7
period only 27 percent of all units were of tms
type.
November residential construction activity, in
terms of family dwelling units, increased nearly 85
percent over the same month in 1937. This improvement was general throughout the country, with 42
States and the District of Columbia sharing in the
rise (see Table 2, page 116). Each of the 12 Federal Home Loan Bank Districts participated in the
increased activity with the New York, Indianapolis,
and Des Moines regions more than doubling the
November 1937 building activity; the Boston District (New England) was the only area that did
not register a substantial gain in residential construction volume.
The chart on page 119 indicates the rate of residential building in all cities of 10,000 or more population, expressed in terms of the estimated number
of family dwelling units provided per 100,000 population, in order that activity among the various Districts may be readily studied on a comparable basis.
In 1938 as in previous years the Los Angeles Federal Home Loan Bank District has been almost consistently higher than any other area in the rate of
construction, while the other two southern Districts
(Little Rock and Winston-Salem) report rates generally higher than in any of the remaining nine
Districts; the Chicago District has usually recorded
the lowest rate of any of the Districts.
Residential Construction
CONSTRUCTION of 1- and 2-f amily houses in
November suffered a decrease of 1,470 family
units from the preceding month in cities of 10,000
population and over; however, stimulated building
activity of multifamily structures brought about a
rise of nearly 850 units in this type of structure.
The net decline of 626 units or 3 percent in residential construction from October compares favorably
with the usual seasonal recession of 15 percent.
During the first 11 months of 1938, nearly 200,000
units were provided in communities with 10,000 or
more population; this represents a rise of nearly
one-third from the same period of the previous
year when somewhat over 150,000 units were provided according to building permits issued in these
same communities. In the January-November
period of 1938, structures containing three or more
families constituted 35 percent of the total number
Foreclosures
•
112
•
FORECLOSURE activity in metropolitan communities was 9.2 percent higher in November
than in October, bringing the metropolitan index
(1926=100) from 142 in October to 155. This sharp
increase compares unfavorably with the usual 1.3
percent seasonal advance for this period.
The November index number stood 12.4 percent
below that for November of 1937 and 63.0 percent
below November of 1932. Foreclosure cases during
the first 11 months of 1938 were down 20.9 percent
from the same period of the preceding year.
Of the 82 reporting communities, 42 showed decreases, while 39 reported increases, and one indicated no change in foreclosure activity from October
to November. (A more detailed analysis of foreclosures in 1938 will be found on page 104).
Federal Home Loan Bank Review
Small House Building Costs
Increasing the Building Cost Index
Coverage
[Table 3]
•
P R I C E S of construction materials declined
fractionally in November from October, thus
continuing the downward trend started in the summer of 1937. The wholesale index of the United
States Department of Labor, which is designed to
reflect the price of all building materials including
brick, cement, and structural steel, had dropped to 89
percent of the 1926 level by November 1938—8 percent below the May 1937 peak month.
Dealers' prices for materials used in constructing
a standard 6-room frame house, although steadying
somewhat in the past few months, had fallen 7 percent between the post-depression high level established in August 1937, and November 1938. Of the
12 Federal Home Loan Bank Districts, Cincinnati
was the only one to record material costs last fall
significantly higher than in the spring of 1938. Although the net increase in that District amounted to
less than 1 percent in six months, most of the cities
canvassed in Kentucky, Ohio, and Tennessee, shared
in the rise.
Building cost index data are now received from
approximately 80 cities. A number of requests
to expand this list have been received, and
offers to cooperate in extending this service
have been made by agencies not under the
direction of the Federal Home Loan Bank Board.
The cooperation of such correspondents qualified
to compile the reports will be accepted. For
further information write the Editor of the
REVIEW.
Mortgage-Lending Activity of Savings
and Loan Associations
[Tables 4 and &]
•
Construction costs for the standard
house
[1936=100]
Material cost
Labor cost
Total cost
Nov.
1938
103. 2
112.1
Oct. Percent
1938 change
103.3 —0.1
112.1 —0.0
Nov. Percent
1931 change
109. 2 —5. 5
111. 2
+0.8
106.1
106.2
109. 9
—0.1
—3.5
Labor costs involved in constructing the standard
house have declined slightly during the October and
November months according to the composite United
States index. This tendency toward a check in the
3-year rise in labor rates will bear watching in the
current year for, according to quotations received
from reporting cities, the average hourly wage had
increased 14 percent from the opening months of
1936 through late 1938, while material prices showed
a net increment of only 4 percent in this same
period.
Table 3 on page 118 presents trends in the total
cost of the standard house for those communities reporting for December. Data for this group of cities
supplement material for the two remaining cycles
presented in the November and December 1938 R E VIEWS.
January 1939
N E W mortgage loans amounting to $64,100,000
were made by savings and loan institutions during November, a seasonal decrease of 12 percent
from the preceding month. October-to-November
declines during 1936 and 1937 amounted to 17 percent and 15 percent, respectively. I n June of 1938,
lending activity stood 21 percent below the same
month of the preceding year, but in the following
five months this margin had been narrowed until in
November total loans made were only 1 percent below those made in November 1937.
Each type of association shared in the Octoberto-November drop in lending activity. Federal savings and loan associations receded 9 percent, while
State-chartered members of the Federal Home Loan
Bank System and nonmember institutions each registered decreases of over 13 percent. Of the $64,100,000 loans made in November, Federals accounted
for $24,200,000, while State members loaned $26,100,000, and nonmembers, $13,700,000.
All classifications of loans by purpose showed declines from October to November with construction
and reconditioning loans experiencing the greatest
percentage decreases. Loans for the purchase of
homes, and commitments for the refinancing of
home loans previously held by other mortgagees
were lower than in November of 1937. Lending
II3
TOTAL LOANS MADE BY ALL SAVINGS AND LOAN ASSOCIATIONS
UNITED STATES -
Federal Home Loan Bank System
BY TYPE OF ASSOCIATION
[Table 9]
•
I II I I I NP
lllllll
I l i l I i l
JUN.
1939
activity in each of the three remaining loan classes
showed greater volume in November 1938 than in
the corresponding month of 1937.
During the January-November period, total loans
of all savings and loan institutions amounted to
$734,100,000, a decline of 12 percent from the $836,500,000 loaned in the same period of 1937. Federal
associations in the first 11 months declined 9 percent from the corresponding period of the previous
year, while State members decreased 13 percent, and
nonmembers, 15 percent. Lending volume in each
of the Federal Home Loan Bank Districts with the
exception of Little Eock (District No. 9 ) , showed
declines from the first 11 months of 1937; the greatest drop (28 percent) being registered by the Cincinnati District (No. 5).
Total lending activity of all associations declined
in each of the 12 Federal Home Loan Bank Districts from October to November. Nonmember institutions showed increased activity in November in
five of the Districts, while lending volume of Federals rose in three Districts from the preceding
month. State members of the Bank System reported
October-to-November decreases in all Districts.
114
T H E balance of advances outstanding by the 12
Federal Home Loan Banks increased by $468,000 during the month of November, bringing the
cumulative total to $189,688,000, which is considerably higher than the November 1936 figure and
slightly higher than the November 1937 figure. A t
the end of November, seven Bank Districts showed a
net gain over October in the balance of advances
outstanding, ranging from 0.2 percent in the Cincinnati and Chicago Banks to 4.2 percent in Boston.
November advances to member institutions
amounted to $5,247,000—a slight decrease not only
from the previous month but also from the figures
for the same month in 1936 and 1937. On the other
hand, repayments for November amounted to $4,779,000, a decrease from October but exceeding the volume of repayments for both November 1936 and 1937.
Four Banks—Boston, New York, Cincinnati, and
Little Eock—reported a greater lending volume in
November than October, while increases in repayments occurred in five Districts—Boston, New York,
Pittsburgh, Little Kock, and Portland.
Membership in the Federal Home Loan Bank
System stood at 3,952 at the end of November. During the month, 3 new members were added and 13
withdrawn. However, 11 of these withdrawals were
due to mergers or consolidations and 2 to voluntary
liquidation.
INTEREST RATES
The Federal Home Loan Bank of Des Moines has
announced the following changes in interest rates on
advances to member institutions, effective J a n u a r y
1, 1939, and until further action of the Board. On
all outstanding advances written at an annual interest rate of 3 % percent or more, interest accruing
on and after that date will be computed and collected quarter-annually at the rate of 3 per centum
per annum. All long-term advances made on and
after January 1, 1939, will be written at a 3^-percent annual rate but interest will be computed and
collected quarter-annually at the rate of 3 per
centum per annum. Short-term notes made on and
after January 1, 1939, will be written and interest
collected at the rate of 3 per centum per annum.
The effective annual interest rate on advances to
members of the Federal Home Loan Bank of PittsFederal Home Loan Bank Review
b $h will be fixed at 3*4 percent, as of January lf
1939 and until otherwise ordered by the Board; but
short-term advances will be written at Z1/^ percent
and long-term advances will continue to be written
at the rate of 4 percent. However, also effective
January 1, 1939 and until further action of the
Board, on all loans outstanding on that date and on
all loans written subsequent to that date at the rate
of 4 percent, the Bank will refund to member borrowers a sum equal to the difference between interest
at the rate of 4 or 3 % percent as written or altered
and interest at the rate of 3 % per centum per annum.
A group of 1,304 identical Federal associations of
both types reporting in both October and November
indicated a rise of $11,700,000 in private repurchasable capital, and $11,300,000 in mortgage loans outstanding during the latter month—each of these
representing a 1.2-percent increase from October.
Table 7 on page 122 gives more complete detail for
these comparable associations.
Federal Savings and Loan Insurance
Corporation
[Tables 7 and 5]
Federal Savings and Loan System
[Table 7]
•
S E V E N newly converted Federal associations
were approved by the Board in November, while
three associations of the type withdrew during that
month; there was no change in the number of associations formed by the subscription of new shareholders in November.
The 639 "new" Federal associations held, on November 30, assets of nearly $336,000,000. This represents a growth during the first 11 months of 1938
of over $90,000,000 in total assets of "new" associations, although there was actually a shrinkage in
the number of such institutions operating in the
United States during the January-November
period.
As of the end of November there were 733 converted Federals with assets amounting to $962,000,000 in the System. Total assets of all Federals
had grown $130,000,000 during the 11 months ending November 30; this growth included newly! acquired assets of over 50 institutions converting to
Federal charter during this period.
Progress in number and assets of Federal savings
and loan associations
Number
Nov.
30,
1938
New
Converted
639
733
Approximate assets
Oct.
31, Nov. 30, 1938 Oct. 31, 1938
1938
639 $335, 827, 000 $328, 716, 000
729 961, 695, 000 950, 578, 000
Total-_- 1,372 1,368 1, 297, 522, 000 1, 279, 294, 000
January 1939
•
A S of November 30, 1938, the 2,085 insured institutions had total assets of $2,105,000,000.
There were 2,070,000 investors in these associations
holding more than $1,414,000,000 in private investments. A t the end of November, the total potential
liability of the Insurance Corporation wast
$1,472,000,000.
Applications for insurance were received during
November from 20 savings and loan associations
having assets of $28,700,000. Seventeen of these
applications were from State-chartered associations.
Eeports for both October and November were received from 1,943 insured associations. These assovate capital during November, with each Federal
ciations reported an increase of $14,000,000 in priHome Loan Bank District participating in the gain.
November mortgage loans ($33,380,000) declined
more than $4,000,000 from the volume of lending
activity in the previous month. Sizeable decreasesin loans for construction and home purchase were
largely responsible for this recession.
A t the end of November, assets of the Insurance
Corporation totaled $116,400,000, a n increase of
more than $470,000 over October. Income from insurance premiums and admission fees in November
($189,000) was $31,000 greater than in November
1937, and income from investments and miscellaneous sources ($280,000) was $9,000 greater than
in the corresponding month of 1937. Expenses, including other deductions, were $6,000 greater this
month than a year ago. During the first five months
of the present fiscal year, net income ($2,200,000)
exceeded by $223,000 net income in the corresponding period of 1937.
Total investments of the Insurance Corporation
had a market value at the end of November of $121,500,000, an excess of $6,640,000 over book value.
115
Table 7.—Number and estimated cost of new family dwelling units provided in all cities of 1 0 /
*)
population or over, in the United States1
[ Source: Federal Home Loan Bank Board.
Compiled from residential building permits reported to U. S. Department of Labor]
[Amounts are shown in thousands of dollars]
Number of family units provided
January-November totals
Monthly totals
Oct.
1938
Nov.
1938
Total cost of units
Nov.
1937
1938
1937
January-November
totals
Monthly totals
Nov.
1938
Oct.
1938
Nov.
1937
1938
11,479 12, 731 6,593 118, 128 102, 157$46, 017. 7 $49, 897. 4 $27, 108. 9 $464,
1-family dwellings590 9,740 8,740 1, 948. 3 2, 299. 9 1, 632. 8 25,
984
782
2-family dwellings
997
69
859
72
261.2
189. 2
53
3,
170.4
Joint home and business 2
3- and more-family dwellings— 5,998 5, 151 2,709 70,415 40, 772 19, 088. 3 16, 236. 2 10, 829. 4 228,
Total residential
1937
904. 1 $440, 970. 9
100. 0 23, 650. 2
022. 1
3, 571. 8
410. 9 140, 577. 1
18, 312 18, 938 9,961 199, 142 152, 666 67, 243. 5 68, 694. 7 39, 741. 5 721, 437. 1 608, 770. 0
1
Estimate is based on reports from communities having approximately 95 percent of the population of all cities with population2 of 10,000 or over.
Includes 1- and 2-family dwellings with business property attached.
Table 2.—Number
and estimated cost of new family dwelling units provided in all cities of 10,000
population or over, in November 1 9 3 8 , by Federal Home Loan Bank Districts and by States
[Source: Federal Home Loan Bank Board.
Compiled from residential building permits reported to U. S. Department of Labor
[Amounts are shown in thousands of dollars]
All residential dwellings
of family
Federal Home Loan Bank Districts and Number
dwelling units
States
Novem- November 1938 ber 1937
18,312
UNITED STATES
All 1- and 2-family dwellings
Estimated cost
November 1938
Number of family
dwelling units
Novem- Novem- November 1937 ber 1938 ber 1937
9,961 $67, 243. 5 $39, 741. 5
12, 314
Estimated cost
November 1938
7,252 $48, 155. 2
November 1937
$28, 912. 1
618
605
2, 782. 0
2, 940. 9
541
~ 584
2, 482. 8
2, 881. 4
152
42
317
27
74
6
143
27
330
20
78
7
694.7
151.5
1, 534. 8
76.9
299.4
24.7
707.0
123.6
1, 660. 2
69.9
352.9
27.3
152
35
247
27
74
6
143
27
309
20
78
7
694.7
135. 1
1, 252. 0
76.9
299.4
24.7
707.0
123. 6
1, 600. 7
69. 9
352. 9
27.3
5,625
2,810
20, 682. 8
12, 804. 4
1,618
726
6, 962. 9
3, 547. 2
319
5,306
174
2,636
1, 375. 8
19, 307. 0
948.7
11,855.7
245
1,373
174
552
1, 142. 6
5, 820. 3
948. 7
2, 598. 5
No. 3—Pittsburgh
731
381
3, 333. 4
1, 866. 8
660
361
3, 052. 8
1, 808. 4
Delaware
Pennsy 1 vania
West Virginia
4
640
87
2
320
59
16.0
3, 029. 9
287.5
17.0
1, 657. 8
192.0
4
569
87
2
304
55
16.0
2, 749. 3
287.5
17. 0
1, 615. 4
176. 0
No. 1—Boston
Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont
-
No. 2—New York
New Jersey
New York
116
-
Federal Home Loan Bank Review
7 /e 2.—Number and estimated cost of new family dwelling units provided in all cities of 10,000
population or over, in November 1938, by Federal Home Loan Bank Districts and by States—Contd.
[Amounts are shown in thousands of dollars]
All 1- and 2-family dwellings
All residential dwellings
Number of family
dwelling units
Federal Home Loan Bank Districts and
States
Novem- November 1938 ber 1937
Estimated cost
November 1938
November 1937
Number of family
dwelling units
Novem- November 1938 ber 1937
Estimated cost
November 1938
November 1937
2,070
113
602
393
166
202
245
176
173
1,071
97
190
306
129
62
166
59
62
$6, 284. 3
223. 1
1, 937. 4
1, 396. 9
376.0
697.7
512.9
479.5
660.8
$3, 866. 2
158.9
1, 329. 9
986. 1
249.4
245.4
462.5
154.2
279.8
1,525
113
154
393
162
198
229
107
169
883
92
86
271
121
62
138
51
62
$5, 023. 8
223. 1
916.9
1, 396. 9
368.5
687.7
500. 1
272.0
658.6
$3, 451. 5
148. 9
1, 088. 4
906. 8
238.3
245. 4
407. 0
136.9
279.8
790
73
504
213
535
89
373
73
3, 429. 1
228.3
2, 457. 6
743.2
2, 256. 0
263. 1
1, 838. 6
154.3
593
73
416
104
444
81
290
73
2, 741. 3
228.3
2, 177. 2
335.8
2, 003. 1
248. 1
1, 600. 7
154.3
1,321
236
1,085
575
147
428
6, 260. 1
885.7
5, 374. 4
2, 494. 4
484.3
2, 010. 1
1,304
232
1,072
571
143
428
6, 177. 1
874.7
5, 302. 4
2, 488. 4
478. 3
2, 010. 1
No. 7—Chicago
Illinois
Wisconsin
661
454
207
459
243
216
3, 462. 6
2, 599. 2
863.4
2, 449. 1
1, 464. 3
984.8
642
448
194
426
228
198
3, 391. 7
2, 545. 2
846.5
2, 339. 6
1, 396. 9
942. 7
No. 8—Des Moines
Iowa
Minnesota
Missouri
North Dakota
South Dakota
933
151
521
220
14
27
393
101
162
108
6
16
3, 452. 6
602. 1
1, 958. 2
780.0
43.5
68.8
1, 424. 5
370.6
624. 1
389.6
10. 1
30. 1
609
151
229
188
14
27
356
101
133
100
6
16
2, 473. 7
602. 1
1, 052. 3
707.0
43.5
68.8
1, 326.
370.
549.
366.
10.
30.
No. 9—Little Rock
Arkansas
Louisiana
Mississippi
N e w Mexico
Texas
1,679
58
184
156
40
1,241
886
30
99
48
24
685
4, 583. 8
146. 1
510. 8
278.6
132. 5
3, 515. 8
2, 115. 1
61.5
241.0
94. 5
65.7
1, 652. 4
1,512
50
180
137
40
1,105
848
23
90
48
24
663
4, 198. 4
138.5
498.8
261. 1
132.5
3, 167. 5
2, 023. 3
44.6
224. 4
94. 5
65. 7
1, 594. 1
456
111
96
47
202
304
61
71
33
139
1, 377. 5
334.2
268.2
153. 1
622.0
982. 2
231. 1
181.7
118. 4
451.0
428
94
93
43
198
294
61
64
33
136
1, 354. 1
323.7
264.8
151. 1
614.5
968.
231.
171.
118.
447.
357
12
21
83
76
153
12
274
10
43
58
40
117
6
1, 273. 1
48. 1
49.5
322.5
272.2
525.5
55.3
820.9
33.2
110.2
186.4
133.6
333.0
24. 5
338
12
21
77
71
145
12
258
10
40
45
40
117
6
1, 229. 1
48. 1
49.5
311.5
255.2
509.5
55.3
793. 5
33.2
105. 2
164. 0
133. 6
333. 0
24. 5
3,071
66
2, 983
22
1,668
27
1,634
7
10, 322. 2
232. 5
9, 997. 5
92.2
5, 721. 0
83.4
5, 622. 6
15.0
2,544
45
2,477
22
1,501
23
1,471
7
9, 067. 5
174.0
8, 801. 3
92.2
5, 280. 2
73. 4
5, 191. 8
15.0
N o . 4—Winston-Salem
Alabama
District of Columbia
Florida
Georgia
Maryland
North Carolina
South Carolina
Virginia
No. 5—Cincinnati
Kentucky
Ohio
Tennessee
—
No. 6—Indianapolis..Indiana
Michigan
No. 10—Topeka
Colorado
Kansas
Nebraska
Oklahoma
__
_
N o . 11—Portland
Idaho
Montana
Oregon
Utah
Washington
Wyoming
No. 12—Los Angeles
Arizona
California
Nevada
January 1939
!
8
6
4
6
1
1
7
1
7
4
5
117
Table 3.—Cost of building the same standard house in representative cities in specific months
NOTE.—These figures are subject to correction
[Source: Federal Home Loan Bank Board]
T o t a l cost
Cubic-foot cost
1938
1938
Dec.
N o . 1—Boston:
Hartford, Conn
N e w H a v e n , Conn
Portland, Maine
Boston, Mass
Manchester, N . H
Providence, R. I
R u t l a n d , Vt
$0. 245
.234
.219
.266
_ _ _
.231
.246
_
.228
_ _ _ ...
__
_
1937
Dec.
$0. 253
.243
.238
.275
.233
.250
.244
No. 4—Winston-Salem:
Birmingham, Ala
_
Washington, D . C__ _
T a m p a , Fla_
__
_
West P a l m Beach, Fla__
_
Atlanta, Ga
__ __
Baltimore, M d
Cumberland, Md_
Asheville, N . C
Raleigh, N . C_ __ _ _
_ __ __
Salisbury, N . C
Columbia, S. C
_
__ _
Richmond, Va __
_
Roanoke, Va_ __
_ __
__ _
.236
.244
.230
.243
.209
.205
.227
.211
.220
. 198
.204
.212
.221
.253
. 251
.232
.266
.219
. 215
.235
.225
.230
2
. 196
.203
.224
.217
No. 7—Chicago:
Chicago, 111
Peoria, I1L _ _ _ _ _ _
Springfield, 111
Milwaukee, Wis
Oshkosh, Wis
__
.285
.268
.284
.240
.246
.301
.279
.268
.249
.238
.245
.276
No. 10—Topeka:
Denver, Colo
_
Wichita, K a n s
Omaha, N e b r
Oklahoma City, Okla
_ _ _
. 251
.251
.249
.244
1937
Dec.
1936
Dec.
Dec.
Sept.
June
March
$5, 877
5,617
5,259
6,384
5,554
5,893
5,472
$5, 807
5,620
5,307
6,299
5,431
5,910
5,547
$5, 659
5,616
5,526
6,079
5,392
5,933
5,676
$5, 823
5,771
5,543
6, 191
5,440
5,991
5,739
$6, 076
5,832
5,708
6,601
5,601
6,000
5,846
5,857
5,833
5,545
5,806
5,063
4, 955
5,511
5,090
5,298
4,744
4,868
5,057
5,299
6,068
5,989
5,608
6, 166
5,207
4,983
5, 535
5, 194
5,430
.200
.208
.200
5,668
5,854
5,513
5,834
5,006
4,922
5,443
5,074
5,273
4, 741
4,888
5,081
5,306
4,776
5,249
5,268
6,068
5,988
5,666
6,260
5, 190
5, 105
5,603
5,408
5,444
2
4, 703
4,755
5,337
5,269
6,068
6,019
5,578
6,393
5,267
5, 171
5,643
5,410
5,515
M , 714
4,860
5,370
5, 198
.285
.263
.278
.231
.241
6,838
6,441
6,811
5,752
5,898
6, 904
6,695
6,965
5, 754
6,040
7,021
6,700
6,961
5,800
6,040
7,226
6,705
.255
.220
.237
.229
6,431
5,964
5,717
5,875
6, 464
5, 866
5,814
5, 840
6,562
5,677
5,841
5,850
6,625
$0. 241
.234
.219
.247
.232
.235
.223
.226
.227
.252
. 214
.221
.229
.206
.218
2
6, 805
6,469
6,812
5,752
5,907
6,569
5,808
5,827
2
6,023
6,027
5,975
5,850
1936
Dec.
$5, 781
5,620
5,252
5,927
5,556
5,633
5,359
5,431
5,439
6,055
5, 127
5,314
5,491
4,940
5,244
4,803
4,982
4,806
6,839
6, 306
6,668
5, 537
5, 782
6, 114
5,291
5,694
5,486
1
The house on which costs are reported is a detached 6-room home of 24,000 cubic feet volume. Living room, dining
room, kitchen, and lavatory on first floor; 3 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, an allowance for contractor's
overhead and transportation of materials, plus 10 percent for builder's profit.
Reported costs do not include the cost of land nor of surveying the land, the cost of planting the lot, nor of providing walks
and driveways; they do not include architect's fee, cost of building permit, financing charges, nor sales costs.
In figuring costs, current prices on the same building materials list are obtained every 3 months from the same dealers,
and 2current wage rates are obtained from the same reputable contractors and operative builders.
Revised.
NOTE FOR CHART ON FACING PAGE:
A new building code in New York City, effective January 1938, caused an unusual spurt of applications for permits which
threw the United States total out of balance. The dotted line shows that total excluding New York City for December 1937
and January and February 1938.
118
Federal Home Loan Bank Review
RATE OF RESIDENTIAL BUILDING IN ALL CITIES OF 10,000 OR MORE POPULATION
REPRESENTS THE ESTIMATED NUMBER OF PRIVATELY FINANCED FAMILY DWELLING UNITS PROVIDED PER 100,000 POPULATION
Source: Federal Home Loan Bank Board. Compiled from Buildmg Permits reported to US Department of Labor.
FEDERAL
HOME LOAN BANK
DISTRICTS
«u
DISTRICT 2
NEW YORK
DISTRICT I
BOSTON
DISTRICT 3
PITTSBURGH
DISTRICT 4
WINSTON SALEM
70
60
LT
L-/450
h
50
f-"
40
u
30
20
fl937
^ ^
1
1
|J"~
LJ
y
-~/93/-39AV&
i
10
—f—l^/sh-
3
1931-35 AVG.-^ 1 1
"1 ,
=r^
L FE& MAR APR MAY JUN. JUL. AUG. SER OCT. NOV. DEC.
DISTRICT 5.
CINCINNATI
i
FEB. MAR APR. MAY
i. SEP. OCT NOV. DEC,
JUN. JUL. AUG SEP. C
*. FEE MAR APR MAY JUN. JUL. AUG. SEP OCT. NOV. DEC
DISTRICT 7
CHICAGO
DISTRICT 6
INDIANAPOLIS
DISTRICT 8
DES MOINES
fl93?
l93h35_AVG.-y '
l
APR MAY JUN. JUL. AUG. SEP. OCT. NOV. DEC.
DISTRICT 9
LITTLE ROCK
S. SEP OCT. NOV. DEC.
MAY
'
JUN. JUL. AUG. SEP
1
i ]
I. FEB. MAR APR MAY JUN. JUL. AUG SEP OCT. NOV. DEC
OCT. NOV. DEC.
DISTRICT 10
TOPEKA
l=r
DISTRICT 12
LOS ANGELES
rzu
I JUL AUG SER
OCT. NOV
DEC
L JUL AUG. SEP OCT. NOV. DEC.
,&JL-..
t FEE MAR APR MAY JUN. JUL. AUG. SEP. OCT. NOV DEC.
UNITED STATES AVERAGE
1930-1938
Pi
1n 1
JWJr L.
nr^
^vJ
,f^
T
r
U
I
EXCLUDING MEW rORK CITY-^
see note on facing page
J
DIVISION OF RESEARCH AND STATISTICS
FEDERAL HOME LOAN BANK BOARD
i I l [ I I I I I I l
SER
January 1939
DEC
MAR
JUN.
SER
DEC
l I I l I l I i I i i
SER
DEC
11111111111
MAR
JUN.
SER
III
11 1 1 1 1 1 1 1
DEC
II9
Table 4.—Estimated volume of new lending activity of savings and loan associations, classifies
District and type of association
>y
[Amounts are shown in thousands of dollars]
New loans
Federal Home Loan Bank District and type
of association
Nov.
1938
Oct.
1938
$64, 070 $72,931
_ 24, 220 26, 534
26, 115 30, 546
13, 735 15,851
United States: Total
Federal
State member
Nonmember
Percent
Percent
increase,
increase, New
Nov.
Nov.
loans,
1938
1938
Nov.
over
over
1937
|
Nov.
Oct. j
1937
1938
- 1 2 $64, 503
20, 829
-9
- 1 5 27, 113 j
- 1 3 16, 561
•
Cumulative new loans (11
monchs)
1938
1937
Percent
increase
- 1 $734, 062 $836, 483
+ 16 261, 880 287, 240
306, 966 354, 764
- 4
- 1 7 165, 216 194, 479
-12
—9
— 13
— 15
6, 243
1, 772
2, 799
1, 672
6, 610
1, 875
3, 237 !
1, 498
-6
-5
-14
+ 12
7, 279
1, 549
3, 922
1, 808
-14
+ 14
-29
-8
6,351 1
2, 417
1,609
2,325
8, 090
2, 314
1, 776
4,000
-21
+4
-9
-42
6, 113
1,666
1,518
2,929
+4
71, 398
+ 45 1 20, 679
18, 300
+6
32, 419
-21
5, 117
1,090
1,348
2,679
5,642
1,073
1,425
3,144
-9
+2
-5
-15
6, 176
964
1,292
3,920
-17
+ 13
+4
-32
57, 518
11, 652
16, 450
29, 416
62, 099
11,401
17, 666
33, 032
8,980
3,213
4,546
1,221
9,938
3,730
4,816
1,392
-10
-14
-6
-12
8,722
2,740
4,425
1,557
+ 3
+ 17
+3
-22
102, 142
35, 623
48, 233
18, 286
104, 275
37, 496
48,911
17, 868
—2
—5
—1
+2
9,335
3,674
4,350
1,311
11,449
4,493
5,336
1,620
-18
-18
-18
-19
10, 563
3,405
5,230
1,928
-12
+8
-17
-32
112,404
43, 514
50, 997
17, 893
156, 692
53, 903
75,991
26, 798
— 28
— 19
-33
— 33
3,060
1,634
1, 168
258
-12
+4
-26
-25
-3
-8
-22
+ 50
3, 115
1,423
1,358
334
6,288
2, 188
2,627
1,473
-2
+ 15
-14
-23
+5
-6
-2
+ 34
32, 422
15, 131
14, 591
2, 700
72, 690
24, 249
31, 289
17, 152 1
38, 371
17, 598
16, 895
3,878
87, 080
26, 613
42, 676
17, 791
— 16
— 14
— 14
— 30
6,597
2,056
2,564
1,977
3,488
1,566
1,579
343
6,835
2,232
3,283
1,320
3,849
1,665
1,394
790
4,440
1,844
1,549
1,047
-13
-10
-10
-25
3, 174
1,401
998
775
+ 21
+ 19
+ 40
+2
44, 513
18, 391
14, 904
11,218
45, 236
19, 779
14, 501
10, 956
-2
-7
+ 3
+2
3, 958
1,626
2, 109
223
4,242
1,701
2,403
138
-7
-4
-12
+ 62
3, 168
1,070
2,034
64
+ 25
+ 52
+4
+ 248
44, 568
17, 223
25, 230
2, 115
41, 630
15, 010
23, 928
2,692
+7
+ 15
+ 5
-21
3,276
1,465
949
862
3,633
1,712
953
968
-10
-14
0
-11
3,398
1,321
879
1, 198
37, 389
16, 323
11, 274
9,792
42,
17,
11,
13,
973
669
502
802
-13
-8
-2
-29
District 11: Total
Federal
State member
Nonmember
2, 024
1, 067
i
733
__
224
2,426
1,433
785
208
-17
-26
-7
+8
1,807
1,043
638
126
-4
+ 11
+8
-28
+ 12
+2
+ 15
+ 78
25, 816
14, 222
8,878
2,716
31, 967
18, 716
11, 641
1,610
-19
-24
-24
+ 69
District 12: Total
Federal
State member
Nonmember
5, 280
2, 541
2, 546
193
6, 138
2, 561
3, 404
173
-14
4, 700 I
2, 059
2, 192
449
64, 069
68, 628
+12
30, 120
+ 23 1 25,709
33,611 1 34,466
+ 16
4, 042
4, 749
-57
-7
-15
-2
+ 17
District
1: Total
Federal
State member
Nonmember
_
District 2: Total
Federal
State member
Nonmember
_ ___
District 3: Total
Federal
State member
Nonmember
District 4: Total
Federal
State member
Nonmember
___
District 5: Total
Federal
State member
Nonmember
__
District 6: Total
Federal
State member
Nonmember
___
District 7: Total
Federal
State member
Nonmember
_ __
District 8: Total
Federal
State member
Nonmember
District 9: Total
Federal
State member
Nonmember
District 10: Total.
Federal
State member
Nonmember
120
__
_
_ _
_
-25
+ 12
69, 133
19, 164
33, 209
16, 760 |
79,
19,
36,
23,
964
579
465
920
— 14
—2
—9
— 30
77,
19,
20,
38,
568
356
122
090
—8
+7
—9
— 15
-7
+2
-7
-11
— 17
—9
-27
—4
Federal Home Loan Bank Review
e 5.—Estimated volume of new loans by all savings and loan associations, classified according to
purpose and type of association
[Amounts are shown in thousands of dollars]
Type of association
Purpose of loans
Mortgage loans on homes
Period
Construction
Home
purchase
Refinancing
$234, 102 $326, 629 $180, 804
1937
January-November] 218, 821 306, 462
168, 127
November
12, 671
22, 697
17, 447
1938
January-November] 201, 306 244, 659
147, 362
12, 572
January
11,334
14, 896
11, 669
11, 293
16, 117
February
21,
056
14, 391
16, 648
March
25,
494
15, 772
17, 710
April
15, 281
24, 123
19, 400
May
13, 885
25, 636
19, 892
June
13, 194
21, 924
19, 096
July
14, 701
23, 833
August
22, 575
12, 416
25, 698
September
21,018
12, 913
October
24, 677
22, 099
12, 182
21, 205
November
18, 627
Reconditioning
Loans for
all other
purposes
Total
loans
Federals
57, 968
4,796
$896, 579
836, 483
85, 105
6,892
64, 503
54, 598
86, 137
3,409
3,662
4,953
5,683
5,416
5,211
5,397
5,528
4,791
5,727
4,821
6,891
7,352
8, 170
8,648
8,059
8,443
8,028
8,072
7,724
7,515
7,235
$62, 143
$92, 901
734, 062
49,
50,
65,
73,
72,
102
093
218
307
279
73, 067
67, 639
74, 709
71, 647
72, 931
64, 070
State
members
Nonmembers
$307, 278 $379, 286 $210,015
194, 479
354, 764
287, 240
16, 561
27, 113
20, 829
261, 880
16,
17,
23,
26,
24,
26,
23,
26,
25,
26,
24,
781
520
356
107
721
310
823
858
650
534
220
306, 966
20,
22,
27,
30,
31,
30,
28,
29,
29,
30,
26,
879
073
835
238
196
350
973
506
255
546
115
165, 216
11,442
10, 500
14, 027
16, 962
16, 362
16, 407
14, 843
18, 345
16, 742
15, 851
13, 735
Table 6.—Index of wholesale price of building materials in the United States
[1926=100]
[Source: U. S. Department of Labor]
All build- Brick and
ing matile
terials
January
February
March
April
May
June
July
August
September
October
November
December
January
February
March
April
May
June
July
August
September
October
November
1937
1938
Change:
Nov. 1938-Oct. 1938.
Nov. 1938-Nov. 1937.
January 1939
Cement
Lumber
Paint and
paint materials
Plumbing Structural
and
steel
heating
Other
91.3
93.3
95.9
96.7
97.2
96. 9
96.7
96.3
96.2
95.4
93.7
92.5
89.7
91.0
91.8
94.9
95.0
95.0
95.4
95.5
95.0
93.4
92.9
92.0
95.5
95.5
95.5
95.5
95.5
95.5
95.5
95.5
95.5
95.5
95.5
95.5
93.0
99.0
102. 1
103.0
103.0
102. 2
101.3
99.5
99.0
97.3
94.8
93.8
83.7
83.4
83.9
83.9
83.7
83.6
83.9
84. 1
84.6
84.2
81.5
80.2
77. 1
77.4
77.6
78.7
78.7
78.7
78.7
78.8
80.6
80.6
79.6
79.6
104.7
104.7
112.9
114.9
114.9
114. 9
114.9
114.9
114. 9
114.9
114.9
114.9
92.9
95.0
98.9
99.9
101.3
101. 1
101.0
101.0
100.8
100.2
98.7
96.9
91.8
91. 1
91.5
91.2
90.4
89.7
89.2
89.4
89.5
89.8
89.2
91.8
91.5
91. 1
90.4
90.5
90.6
90.7
90.6
90.9
91. 1
91.5
95.5
95.5
95.5
95.5
95.5
95.5
95.5
95.5
95.5
95.5
95.5
92.6
91.0
91.3
91. 1
89.3
88.7
88.8
90.2
90.4
90.3
90.2
80. 1
79.2
82. 2
81.4
80.9
80. 1
80.5
80.5
80.4
81.1
80.9
79.6
79.6
78.9
77.2
77.2
77.2
79.5
79.2
78.5
78.5
78.7
114. 9
114.9
114.9
114.9
114.9
113.0
107.3
107.3
107.3
107.3
107.3
95.8
95.3
94.8
94.8
94. 1
93.3
91.2
91.3
91.3
91.7
89.7
-0. 7 %
-4. 8 %
+ 0. 4 %
-1.5%
0.0%
0.0%
-0.1%
-4. 9%
-0. 2 %
-0. 7 %
+ 0.3%
-1.1%
0.0%
-6.6%
-2. 2 %
-9.1%
I2I
Table 7.—Monthly operations of 1,304 Federal savings and loan associations and 639 ider
al
insured State-chartered savings and loan associations reporting during October and November 1938
[Amounts are shown in thousands of dollars]
1,304 Federal
November
Share liability at end of month:
Private share accounts (number)
October
Change
October
to November
November
Change
October
to November
October
__
1, 107, 303
1, 090, 896
Percent
+ 1.5
778, 461
774, 838
Percent
+0.5
Paid on private subscriptions
Treasury and H. 0 . L. C. subscriptions__
$815, 463. 7
213, 907. 8
$803, 730. 8
213, 781. 1
+ 1.5
+0.1
$532,
428. 3
1
38, 762. 6
$530,
326. 8
1
38, 635. 1
+ 0. 4
+ 0.3
1, 029, 371. 5
1,017,511.9
+ 1.2
571, 190. 9
568, 961. 9
+ 0.4
19, 300. 3
7, 808. 0
21, 406. 6
9, 674. 6
-9.8
-19.3
8, 716. 1
6, 398. 9
9, 687. 1
8, 289. 2
-10.0
— 22. 8
8, 587. 7
6, 453. 3
4, 773. 2
1, 472. 7
2, 331. 4
9, 525. 6
7, 578. 6
4, 940. 7
1, 670. 6
2, 067. 5
-9.8
-14.8
-3.4
-11.8
+ 12.8
3, 151. 0
3, 141. 1
1, 801. 0
572.5
1, 096. 1
4, 204. 9
3, 653. 3
1, 887. 2
682.7
1, 225. 4
— 25. 1
— 14.0
—4. 6
— 16. 1
— 10. 6
23, 618. 3
995, 861. 1
25, 783. 0
984, 520. 2
-8.4
+ 1.2
9, 761. 7
520, 756. 6 |
11, 653. 5
518, 119. 2
— 16. 2
+ 0.5
96, 164. 6
3, 240. 6
96, 106. 2
3, 027. 9
+ 0. 1
+ 7.0
37, 110. 5
3, 347. 7
39, 964. 5
3, 515. 1
+ 0.4
—4. 8
99, 405. 2
99, 134. 1
+ 0.3
40, 458. 2
40, 479. 6
— 0. 1
1, 265, 731. 7
1, 249, 280. 0
+ 1.3 I 742, 029. 2
736, 601. 2
+0. 7
Total
_-__
Private share investments during month
Repurchases during month
Mortgage loans made during month:
a. New construction
b. Purchase of homes
c. Refinancing
d. Reconditioning __
e. Other purposes
Total
Mortgage loans outstanding end of month
Borrowed money as of end of month:
From Federal Home Loan Banks. __
From other sources
__
Total ._
Total assets, end of month
1
639 insured State members
Includes only H. O. L. C. subscriptions.
Table 8.—Institutions insured by the Federal Savings and Loan Insurance Corporation
l
[Amounts are shown in thousands of dollars]
Number
of investors
Cumulative number at specified dates
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Oct. 31, Nov. 30, Nov. 30,
1934
1935
1936
1937
1938
1938
1938
State-chartered associations
Converted F. S. and L. A__ ___
New F. S. and L. A
Total
_
4
108
339
136
406
572
382
560
634
566
672
641
451
1,114
1,576
1,879
718
2 717
639
2,074
937, 800
845, 200
287, 100
Private
repurchasable
capital
Nov. 30,
1938
Nov. 30,
1938
$809, 696
959, 212
335, 827
$580, 778
660, 637
173, 032
2,085 2, 070, 100 2, 104, 735
1, 414, 447
3
725
721
639
Assets
1
Beginning Dec. 31, 1936, figures on number of associations insured include only those associations which have remitted
premiums.
Earlier figures include all associations approved by the Board for insurance.
2
In addition, 12 Federals with assets of $2,510,000 had been approved for conversion but had not been insured as of October
31. 3
In addition, 12 Federals with assets of $2,483,000 had been approved for conversion but had not been insured as of November 30.
122
Federal Home Loan Bank Review
7(
e 9.—Lending operations of the Federal
Home Loan Banks
Table 70.—Properties acquired by H . O - L. C
through foreclosure and voluntary deed l
[Thousands of dollars]
Number
Period
November
1938
Federal Home
Loan Banks
Boston
New York
Pittsburgh
Winston-Salem
Cincinnati
Indianapolis
Chicago
Des Moines
Little Rock
Topeka
Portland
Los Angeles
Total
Jan.-Nov.
November
Jan.-Nov.
November
Jan.-Nov.
1938
1937
1937
19361936
October
1938
Advances
outstanding at
ReRe- end
of
AdAd- paypayvances ments vances ments November
$586
888
324
675
524
372
328
499
328
125
48
550
$236 $262 $193 $8, 656
421
367 17, 373
726
503
543 17, 134
684
707
766 18, 240
747
457 1, 162 25, 534
462
32 1,261
416 12, 793
257
376 1,058 31, 761
140 1,096
320 16, 337
831
412 9, 738
318
237
432 11, 326
296
340
250 5, 967
297
510 14, 829
87
567
5,247 4,779 6,561 6,429 189, 688
66, 963 77, 370
7,001 3,706
105, 660 63, 725
6,414 4,094
79, 784 45, 318
187, 336
137, 261
Table 11.—Reconditioning
Division—Summary
of all reconditioning operations of H . O . L. C
through Nov. 30, 1938 *
June 1, 1934
through
Oct. 31,
1938
Nov. 1,
1938
through
Nov. 30,
1938
Cases received 2
11,452
992, 748
Contracts awarded:
Number
621, 398
10, 833
Amount.
$120,649,966 $2,371,233
Jobs completed:
Number.
610, 863
11,419
Amount._ _. _ $116,335,573 $2,570,552
622, 282
$118,906,125
9
114
983
4,449
15, 875
23, 225
26, 981
4,807
4,339
4,961
4,851
4,695
4,733
4,056
3,886
3,856
3,616
3,534
30..^
31
30
31
30
31
118, 970
1
Does not include 11,824 properties bought in by H. O.
L. C. at foreclosure sale but awaiting expiration of the redemption period before title in absolute fee can be obtained.
In addition to the 118,970 completed cases, 648 properties
were sold at foreclosure sale to parties other than the H. O.
L. C. and 15,850 cases have been withdrawn due to payment
of delinquencies by borrowers after foreclosure proceedings
were authorized.
Table 12.—H. O . L. C. subscriptions to shares
of savings and loan associations x
[Amounts are shown in thousands of dollars]
State-chartered
Federal
savings
Unin- I
loan
sured Insured and
F. EL associa- associations
L. B.
tions
members
1, 004, 200
632, 231
$123,021,199
June
Dec.
June
Dec.
June
Dec.
Grand total to Nov. 30, 1938
Cumulative
through
Nov. 30,
1938
1
All figures are subject to adjustment. Figures do not
include 52,269 reconditioning jobs, amounting to approximately $6,800,000, completed by the Corporation prior to
the organization of the Reconditioning Division on June 1,
1934.
2
Includes all property management, advance, insurance,
and loan cases referred to the Reconditioning Division which
were not withdrawn prior to preliminary inspection or cost
estimate prior to Apr. 15, 1937.
January 1939
Prior to 1935
1935: Jan. 1 through
July 1 through
1936: Jan. 1 through
July 1 through
1937: Jan. 1 through
July 1 through
1938: January
February
March
April
May
June
July
August
September
October
November
Requests:
Oct. 1935-Nov.
1938:
Number
Amount
November 1938:
Number
Amount
Subscriptions:
Oct. 1935-Nov.
1938:
Number
Amount
November 1938:
Number
Amount
Total
5,395
83
829
4,483
$4, 621 $52, 453 $194, 777 $251, 851
3
$250
6
$285
15
$1, 206
24
$1, 741
23
4,791
671
4,097
$1, 001 $41, 131 $172, 386 $214, 518
0
0
1
$25
7
$140
8
$165
1
Refers to number of separate investments, not to number
of associations in which investments are made.
123
Desisnation of Chairmen and Vice Chairmen, Appointments of Public Interest
Directors, and Election of Directors, of the Federal
Home Loan Banks
•
ANNOUNCEMENT of the designation of directors as chairmen and vice chairmen of 11 of
the 12 Federal Home Loan Banks was made recently
by the Federal Home Loan Bank Board. The terms
of office will be one year, beginning January 1, 1939,
or until a successor is designated and qualified.
Appointments of Public Interest Directors to hold
office for 4-year terms ending December 31, 1942,
have been made by the Board in nine Federal Home
Loan Bank Districts. [Reappointments were made
in all cases except two—one, a new appointment,
and the other to fill a vacancy under an unexpired
term.
The Federal Home Loan Bank Board also announced the election of the following Class A, B,
and C directors and Directors-at-Large, to serve 2year terms, beginning January 1, 1939, unless otherwise noted. This year, for the first time, the Portland Bank elected its own directors; heretofore, they
were appointed by the Federal Home Loan Bank
Board, in accordance with the provisions of subsection (h) of Section 7 of the Federal Home Loan
Bank Act.
DISTRICT NO. 1: FEDERAL HOME LOAN BANK OF
BOSTON
Chairman: Bernard J. Rothwell, Bay State Milling Company, Boston, Massachusetts.
Vice Chairman: Edward H. Weeks, Old Colony Cooperative
Bank, Providence, Rhode Island.
PuUic Interest Director: Eaton D. Sargent—Vice President,
Johnson-Parker Company; Treasurer and General Manager, White Mountain Freezer Company; Director,
Second National Bank. Nashua, New Hampshire.
Class A Director: Raymond P. Harold, Worcester Co-operative Federal Savings and Loan Association, Worcester,
Massachusetts.
Class B Director: George B. Lord, Portsmouth Savings Bank,
Portsmouth, New Hampshire.
Class C Director: Walter P. Schwabe, Thompsonville Building and Loan Association, Thompsonville, Connecticut.
Director-at-Large: Milton A. Barrett, Fidelity Cooperative
Bank, Fitchburg, Massachusetts.
124
DISTRICT NO. 2 : FEDERAL HOME LOAN BANK OF
NEW YORK
Chairman: George MacDonald, Consolidated Oil Corporation, New York, New York.
Vice Chairman: Francis V. D. Lloyd, Peoples Mutual Building and Loan Association, Ridgefield Park, New Jersey.
PuUic Interest Director: James Bruce—Vice President, National Dairy Products Company; Director: Commercial
Credit Company, Maryland Casualty Company, Republic
Steel Company, The American Airlines, Inc. New York,
New York.
Class A Director: C. Harry Minners, Bankers Federal Savings and Loan Association, New York, New York.
Class B Director: Roy H. Bassett, Canton Savings and Loan
Association, Canton, New York.
Class C Director: Louis J. Cohen, Mohawk Building and
Loan Association, Newark, New Jersey.
Director-at-Large: Robert H. Gulliver, United Building and
Loan Association, Trenton, New Jersey.
DISTRICT NO 3 : FEDERAL HOME LOAN BANK OF
PITTSBURGH
Chairman: Ernest T. Trigg, National Paint, Varnish and
Lacquer Association, Philadelphia, Pennsylvania.
Vice Chairman: Charles S. Tippetts, University of Pittsburgh, Pittsburgh, Pennsylvania.
Public Interest Director: Charles S. Tippetts—Dean, School
of Business Administration, University of Pittsburgh.
Pittsburgh, Pennsylvania.
Class A Director: William E. Best, Beltzhoover Building
and Loan Association, Pittsburgh, Pennsylvania.
Class B Director: William Reinhardt, Art-Workers' Building and Loan Association, Philadelphia, Pennsylvania.
Class C Director: A. E. Sheller, Franklin Loan and Building Association, Altoona, Pennsylvania.
Director-at-Large: K. S. Coleman, First Federal Savings
and Loan Association of Parkersburg, Parkersburg,
West Virginia.
DISTRICT NO. 4: FEDERAL HOME LOAN BANK OF
WINSTON-SALEM
Class A Director: E. C. Baltz, Perpetual Building Association, Washington, D. C.
Class B Director: J. F. Stevens, Gate City Building and
Loan Association, Greensboro, North Carolina.
Federal Home Loan Bank Review
01
C Director: O. W. Kincaid, Moultrie Federal Savings
and Loan Association, Moultrie, Georgia.
Director-at-Large: George W. Bahlke, Progress Federal Savings and Loan Association, Baltimore, Maryland.
Class C Director: Joseph J. Janda, Slovan Building and
Loan Association, Chicago, Illinois.
Director-at-Large: William E. Hodnett, Lincoln Savings and
Loan Association, Lincoln, Illinois.
DISTRICT NO. 5: FEDERAL HOME LOAN BANK OF
CINCINNATI
DISTRICT NO. 8: FEDERAL HOME LOAN BANK OF
DES MOINES
Chairman: Theo. H. Tangeman, Columbus Mutual Life Insurance Company, Columbus, Ohio.
Vice Chairman: W. Megrue Brock, Gem City Building and
Loan Association, Dayton, Ohio.
Class A Director: W. B. Furgerson, Portland Federal Savings and Loan Association, Louisville, Kentucky.
Class B Director: William A. McMillen, Cuyahoga Savings
and Loan Company, Cleveland, Ohio.
Class C Director: Charles J. Haase, Home Federal Savings
and Loan Association, Memphis, Tennessee.
Director-at-Large: Nat T. Winston, Home Federal Savings
and Loan Association, Johnson City, Tennessee.
DISTRICT NO. 6: FEDERAL HOME LOAN BANK OF
INDIANAPOLIS
Chairman: F. S. Cannon, Railroadmen's Federal Savings and
Loan Association of Indianapolis, Indianapolis, Indiana.
Vice Chairman: S. Rudolph Light, Director, American National Bank, Kalamazoo, Michigan.
'Public Interest Director: Herman B. Wells—President, Indiana University; Secretary, State of Indiana Commission for Financial Institutions; Member, Indiana
State Advisory Committee of the National Youth Administration. Bloomington, Indiana.
Class A Director: Robert C. Dexter, First Federal Savings
and Loan Association of Kalamazoo, Kalamazoo, Michigan.
Class B Director: Walter H. Dreier, Union Federal Savings
and Loan Association, Evansville, Indiana.
Class C Director: Grant H. Longenecker, Peoples Savings
Association of Benton Harbor, Lansing, Michigan.
Director-at-Large: F. S. Cannon, Railroadmen's Federal
Savings and Loan Association of Indianapolis, Indianapolis, Indiana.
DISTRICT NO. 7: FEDERAL HOME LOAN BANK OF
CHICAGO
Chairman: Charles E. Broughton, The Sheboygan Press, Sheboygan, Wisconsin.
Vice Chairman: Henry G. Zander, Jr., Henry G. Zander and
Company, Realtors, Chicago, Illinois.
Public Interest Director: Henry G. Zander, Jr.—Partner,
Henry G. Zander & Company, Realtors; Director:
National Association of Real Estate Boards, Illinois
Association of Real Estate Boards. Chicago Illinois.
(Appointed to serve for the unexpired portion of 4-year
term ending December 31, 1940.)
Class A Director: Lawrence D. Johnson, Fidelity Federal
Savings and Loan Asociation, Galesburg, Illinois.
Class B Director: Guy A. Wood, King City Federal Savings
and Loan Association, Mount Vernon, Illinois.
January 1939
Chairman: Charles B. Bobbins, Cedar Rapids Life Insurance Company, Cedar Rapids, Iowa.
Vice Chairman: E. J. Russell, Mauran, Russell, and Crowell,
Architects, St. Louis, Missouri.
Public Inerest Director: E. A. Purdy—Vice President, WellsDickey Company; Director, Regional Agricultural Credit
Corporation; Executive Committee member, Minneapolis
Taxpayers' Association. Minneapolis, Minnesota.
Class A Director: H. H. Bennett, Perpetual Savings and
Loan Association, Cedar Rapids, Iowa.
Class B Director: John O. Newberry, Home Building and
Loan Association, Jefferson City, Missouri.
Class C Director: John D. Gray, Fidelity Building and Loan
Association, Valley City, North Dakota.
Director-at-Large: Adolph F. Leonhardt, Economy Federal
Savings and Loan Association of St. Louis, St. Louis,
Missouri.
DISTRICT NO. 9: FEDERAL HOME LOAN BANK OF
LITTLE ROCK
Chairman: J. Gilbert Leigh, Commonwealth Federal Savings
and Loan Association, Little Rock, Arkansas.
Vice Chairman: Will C. Jones, Jr., The Murray Company,
Dallas, Texas.
Public Interest Director: O. C. Hathaway—Manager, The
Pardee Company. Shreveport, Louisiana.
Class A Director: William E. Wood, Union Homestead Association, New Orleans, Louisiana.
Class B Director: R. H. McCune, Roswell Building and Loan
Association, Roswell, New Mexico.
Class C Director: H. T. Leonard, Kosciusko Building and
Loan Association, Kosciusko, Mississippi.
Director-at-Large: Grover J. Casselberry, First Federal Savings and Loan Association of El Paso, El Paso, Texas.
DISTRICT NO. 10: FEDERAL HOME LOAN BANK OF
TOPEKA
Chairman: George E. McKinnis, First Federal Savings and
Loan Association of Shawnee, Shawnee, Oklahoma.
Vice Chairman: Paul F. Good, Good, Good, and Kirkpatrick,
Attorneys, Lincoln, Nebraska.
Public Interest Director: H. S. Sands—President, State
Board Engineer Examiners of Colorado; Member, Rocky
Mountain Economic Council. Denver, Colorado.
Class A Director: W. R. McWilliams, Oklahoma City Federal Savings and Loan Association, Oklahoma City,
Oklahoma.
Class B Director: L. F. Reed, Eureka Building and Loan
Association, Eureka, Kansas.
Class C Director: Doris E. Soden, Goodland Building and
Loan Association, Goodland, Kansas.
Director-at-Large: William H. Pitzer, Nebraska City Federal
Savings and Loan Association, Nebraska City, Nebraska.
I25
DISTRICT NO. 11: FEDERAL HOME LOAN BANK OF
PORTLAND
Chairman: Frank S. McWilliams, Fidelity Savings and
Loan Association, Spokane, Washington.
Vice Chairman: Ben Hamlin Hazen, Benj. Franklin Federal
Savings and Loan Association, Portland, Oregon.
Class A Director: J. T. S. Lyle, Pacific First Federal Savings
and Loan Association of Tacoma, Tacoma, Washington.
Joseph E. Kjar, Deseret Federal Savings and Loan
Association, Salt Lake City, Utah. 1
Class B Director: George A. Mortimer, Boise Federal Savings and Loan Association, Boise, Idaho.
C. N. Bloomfield, Cheyenne Federal Savings and Loan
Association, Cheyenne, Wyoming.1
Class C Director: J. M. Person, Tualatin Valley Federal Savings and Loan Association, Hillsboro, Oregon.
Joseph E. Swindlehurst, Empire Building and Loan
Association, Livingston, Montana.1
Director-at-Large: F. S. McWilliams, Fidelity Savings and
Loan Association, Spokane, Washington.
Ben Hamlin Hazen, Benj. Franklin Federal Savings
and Loan Association, Portland, Oregon.1
DISTRICT NO. 12: FEDERAL HOME LOAN BANK OF
LOS ANGELES
Chairman: C. H. Wade, State Mutual Building and Loan
Association, Los Angeles, California.
Vice Chairman: David G. Davis, Raphael Weill and Company, San Francisco, California.
'Public Interest Director: James F. Twohy—Regional Manager, Sixth Region, Home Owners' Loan Corporation.
San Francisco, California.
Class A Director: Paul Endicott, Home-Builders' Loan Association, Pomona, California.
Class B Director: George M. Eason, Standard Federal Savings and Loan Association, Los Angeles, California.
Class C Director: J. D. Cameron, Union Building and Loan
Association, Reno, Nevada.
Director-at-Large: J. G. Rice, First Federal Savings and
Loan Association of Phoenix, Phoenix, Arizona.
DISTRICT NO. 2
N E W JEESBY :
Atlantic H i g h l a n d s :
Marine View Building & Loan Association, 33 F i r s t Avenue.
Hackensack:
Citizens' Building & Loan Association of Hackensack, New
Jersey, 15 Main Street.
Plainfield :
Representative Building & Loan Association, 127 W a t c h u n g
Avenue.
Vineland :
L a n d i s Building & Loan Association, 12 North Sixth Street.
DISTRICT NO. 3
PENNSYLVANIA :
Huntingdon:
Huntingdon Savings & Loan Association, Insurance Building.
DISTRICT NO. 5
OHIO:
DeGraff:
People's Building & Loan Company.
D I S T R I C T NO. 6
MICHIGAN :
Detroit:
Federal Life & Casualty Company, 3980 West Grand Boulevard.
DISTRICT NO. 8
IOWA:
F o r t Dodge:
Home Building
South.
& Loan
Association,
928 F i r s t
Avenue
DISTRICT NO. 10
OKLAHOMA :
Duncan:
Duncan Building & Loan Association, 906 Main Street.
WITHDRAWALS F E O M T H E FEDERAL H O M E LOAN B A N K SYSTEM
B E T W E E N N O V E M B E B 16, 1 9 3 8 , A N D D E C E M B E R 1 5 ,
1938
LOUISIANA :
New O r l e a n s :
Suburban Building & Loan Association, 1012 Maison
Blanche Building (merger w i t h Union
Homestead Association, New Orleans, Louisiana). 2
N E W JERSEY :
Atlantic Highlands :
Atlantic Highlands Building & Loan Association (voluntary
withdrawal).
Montclair:
Hillside Building & Loan Association, 420 Bloomfield Avenue (voluntary w i t h d r a w a l ) .
PENNSYLVANIA :
Charleroi:
Charleroi Slavonic Building & Loan Association, Fifth
Street (voluntary w i t h d r a w a l ) .
Pittsburgh:
Steuben Building & Loan Association of Pittsburgh, 1349
Fifth Avenue (voluntary w i t h d r a w a l ) .
II. F E D E R A L
SAVINGS AND LOAN
ASSOCIATIONS
C H A R T E R E D B E T W E E N N O V E M B E R 16, 1938, A N D
D E C E M B E R 15, 1938
DISTRICT NO. 3
PENNSYLVANIA :
1
One-year t e r m beginning J a n . 1, 1939.
Directory of Member, Federal,
and Insured Institutions
Added during November-December
I. INSTITUTIONS ADMITTED TO MEMBERSHIP IN
THE FEDERAL HOME LOAN BANK SYSTEM BETWEEN NOVEMBER 16, 1938 AND DECEMBER 15,
1938 *
[Listed by Federal Home Loan Bank Districts, States, and cities]
DISTRICT NO. 1
MASSACHUSETTS :
Cambridge:
North Cambridge Co-operative Bank, 2360
Avenue.
Massachusetts
1
During this period 1 Federal savings and loan association was
admitted to membership in t h e System.
126
Cynwyd:
Bala-Cynwyd Federal Savings & Loan Association, 149
Montgomery Avenue (converted from Bala-Cynwyd Building Association).
Mt. L e b a n o n :
Mt. Lebanon Federal Savings & Loan Association, 701
Washington Street (converted from Mt. Lebanon Building & Loan Association).
Philadelphia:
Anchor Federal Savings & Loan Association, 606 Bailey
Building (converted from Anchor Building & Loan Association).
City of Penn Federal Savings & Loan Association, 608
Bailey Building (converted from City of Penn Saving
F u n d and Loan Association of Philadelphia).
Householders' Federal Savings a n d Loan Association, 606
Bailey Building (converted from Householders* Building
& Loan Association).
DISTRICT NO. 12
CALIFORNIA :
Inglewood:
People's Federal Savings & L o a n Association, 161 N o r t h
LaBrea Street.
Oceanside:
Ocean side Federal Savings & Loan Association (converted
from Oceanside Building & Loan Association).
8
The name of t h e Union Homestead Association has been changed
to "Union Savings & Loan Association."
Federal Home Loan Bank Review
CA
LATTONS O F F E D E R A L S A V I N G S A N D L O A N A S S O C I A T I O N
OixARiEEs B E T W E E N N O V E M B E R 1 6 , 1 9 3 8 , A N D D E C E M B E R 1 5 ,
1938
DISTRICT NO. 8
MISSOURI :
St. L o u i s :
Midwest Savings & Loan Association of St. Louis, Missouri,
108 N o r t h Seventh Street.
MARYLAND :
Baltimore:
S t a n d a r d Federal Savings & Loan Association (merger w i t h
Sun Federal Savings & Loan Association, Baltimore,
Maryland).
OHIO:
Cleveland:
Forest City Federal Savings & Loan Association of Cleveland, 1217 Schofield Building (voluntary dissolution).
DISTRICT NO. 10
KANSAS:
Chanute:
Chanute Building & Loan Association, 1 West Main Street.
Winfleld:
Walnut Valley Building & Loan Association, 318 E a s t
Ninth Street.
PENNSYLVANIA :
Pittsburgh :
Security Ten Cent Federal Savings & Loan Association
(merger with West End Federal Savings & Loan Association, Pittsburgh, P e n n s y l v a n i a ) .
Wayne:
Radnor Federal Savings & Loan Association (merger with
First Wayne Federal Savings & Loan Association, Wayne,
Pennsylvania).
III. INSTITUTIONS INSURED BY THE FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION BETWEEN NOVEMBER 16, 1938, AND DECEMBER 15,
1938
DISTRICT NO. 1
DISTRICT NO. 12
CALIFORNIA :
Oceanside:
Oceanside Federal Savings & Loan Association, 508 Second
Street.
Resolution of the Board
AMENDMENT TO BOARD RESOLUTION RELATING TO BASIS
OF CHARGES FOR EXAMINATIONS: Adopted December
22, 1938; effective January 2, 1939.
CONNECTICUT :
Hartford:
Hartford Home Building & Loan Association, Incorporated,
119 Ann Street.
Willimantic:
Willimantic Building & Loan Association, J o r d a n Building,
666 Main Street.
DISTRICT NO. 2
NEW
JERSEY :
Atlantic H i g h l a n d s :
Marine View Building & Loan Association, 33 F i r s t Avenue.
Bnglewood:
Englewood M u t u a l Loan & Building Association, 33 P a r k
Place.
English town :
Englishtown Building & Loan Association, Corner Main &
W a t e r Streets.
Montclair:
Nishuane Building & Loan Association, 319 Orange Road.
Plainfield:
Queen City & Home Building & Loan Association, 107 P a r k
Avenue.
DISTRICT NO. 3
DELAWARE :
Wilmington:
F i r s t Federal Savings & Loan Association of New Castle
County, 311 Industrial T r u s t Building.
PENNSYLVANIA :
New B r i g h t o n :
Beaver County Building & Loan Association, 823 Third
Avenue.
Pottsville:
Greater Pottsville Federal Savings & Loan Association, 115
Mahatonga Street.
Wayne:
F i r s t Wayne Federal Savings & Loan Association, 114
Audubon Avenue.
DISTRICT NO. 4
VIRGINIA :
Petersburg:
Petersburg Mutual Building & Loan Association,
porated, 114 North Sycamore Street.
Incor-
DISTRICT NO. 5
OHIO:
Gnadenhutten:
I n d i a n Village Federal Savings & Loan Association, Main
& Walnut Streets.
DISTRICT NO. 7
ILLINOIS :
Calumet City :
Calumet City Building & Loan Association, Calumet City
Bank Building.
Chicago:
New City Building & Loan Association, 1942 West Fortyseventh Street.
Avondale Building & Loan Association, 3003 North Central
P a r k Avenue.
Cicero :
Cicero Home Savings & Loan Association, 5026 West
Thirty-first Place.
January 1939
The Examining Division has been directed to
charge institutions examined after January 2, 1939,
$22.50 a day for Senior Examiners and $18.00 a day
for Junior Examiners, for time employed in examination of such institutions.
Moving Days
{Continued
from p. 108)
nected with this reconditioning process must also
adapt their routines to this irregular pattern. Gas,
electric, and telephone companies are harassed with
innumerable requests for the disconnection and then
re-establishment of utility services. Merchants dependent upon mail orders must make extensive
revisions of their mailing lists. Milk companies
must make certain that those moving are up-to-date
with payments and the newcomers must be solicited
as possible customers. The telephone company faces
the problem of new numbers and of the issuance of
revised directories. Even the corner grocer must
employ collecting agents to track down elusive customers with unpaid accounts.
Property owners face both increased expenditures
and decreasing revenues. Vacated properties must
often be renovated at a time when the costs of improving and redecorating the apartments are much
higher for reasons already stated. If these vacancies are not rented by the deadline, it is very likely
that they will remain unoccupied until the next
"moving day".
{Continued on next
page)
127
According to the article, it is not possible to state
accurately how many people move at one time because there are not adequate up-to-date figures available. A committee of real estate men investigated
New York City conditions in 1936 and reported that
500,000 tenants had moved during 24 hours on October 1 of that year, and yet, "it was considered a
quiet moving day".
Frequent attempts have been made by various real
estate associations to find some solution to the problem. I n Chicago, the "Chicago Homes Economic
Council" was created under the sponsorship of the
Keal Estate Board. This was a well-organized community effort and an extensive 5-year plan was
evolved to meet the situation. This was successful
for a short time but its results have since been nullified. I t was effective to the extent that at one time,
however, moving on May 1 and October 1 had been
reduced as much as 75 percent. New York City has
had much the same experience. Many committees
have been appointed and have often reported back
with suggestions for alleviating conditions, yet today
substantially the same problem exists.
Essential to the reducing of these peak loads of
moving dates is the adoption by owners, agents, and
other interested parties of a balanced leasing program. I n New York several owners of extensive
apartment house properties have successfully inaugurated a leasing policy which will stagger the
expiration dates of rental contracts. The extensive
adoption of such a program will materially assist
mortgage-lending institutions, which, as sourc
of
credit for building, seek to encourage winter construction and to lengthen the present 8-month building period to a well-balanced, year-round construction schedule.
Traditional Building Methods
{Continued frpm p. 108)
of a basement immediately beneath this room with
a floor level one-half flight below t h a t of the first
floor. The basement, requiring only a 3-foot excavation, contains the heating and laundry equipment
and has the advantage of better lighting and ventilation than is possible with a full basement.
The living room and dining room space is shown
as a single room of unusual dimensions—13'4" by
28'6", although it might easily be partitioned
into separate rooms. The kitchen is readily accessible from the rear entry hall and stairs, and meals
may be served conveniently on the side porch, if
desired. The house is equipped with large closets,
and ample provisions for storage. Every room has
cross-ventilation. There are 13,700 cubic feet in the
dimensions including the porches and basement, but
not the garage. Cost, excluding garage, ranges
from $3,550 to $5,000, depending upon the locality
and interior finishes.
"Savings and Loan Principles" Published
•
A new book dealing with the historical development of savings and loan associations up to the present
time, and designed to serve as a textbook for the American Savings and Loan Institute, as well as to
help in creating a new public understanding of the problems and opportunities of the business, has just
been published. The authors are Morton Bodfish, Executive Vice President of the United States Building and Loan League, and A. D. Theobald, Director of Education and Research of the American Savings and Loan Institute. This is the first time since the publication of "Elements of the Modern Building
and Loan Associations" by Clark and Chase in 1925, that a comprehensive presentation of the business
has been made. The book has a dual objective: "to provide a text for the educational program within
the business as well as for general use, and to make available a book with the broader purpose of meeting
the requirements of business executives in the thrift and home-financing field and of the general public
who have an interest in these institutions". The text describes and interprets the functioning of associations as corporations, and analyzes the practices, policies, and principles which dominate the business. I t
also covers the day-to-day responsibilities of the association executive. The book may be ordered through
the American Savings and Loan Institute, 333 North Michigan Avenue, Chicago, Illinois. ("Savings and
Loan Principles", by Morton Bodfish and A. D. Theobald, Prentice-Hall, Inc., New York City, 1938,
pp. 715, $4.00.)
128
Federal Home Loan Bank Review
U. S. GOVERNMENT PRINTING OFFICE: 1939
FEDERAL HOME LOAN BANK DISTRICTS
. BOUNDARIES OF FEDERAL HOME LOAN BANK DISTRICTS
FEOERAL HOME LOAN BANK CITIES.
OFFICERS OF FEDERAL HOME LOAN BANKS
BOSTON
CHICAGO
B . J . R O T H W E L L , Chairman; E . H . W E E K S , Vice Chairman; W . H .
NEAVES,
President;
H.
N.
FAULKNER,
FREDERICK
G A R D N E R , P r e s i d e n t ; J O H N B A R D W I C K , J R . , Vice P r e s i d e n t - T r e a s u r e r ;
W I N A N T , J R . , T r e a s u r e r ; L . E . D O N O V A N , S e c r e t a r y ; P . A. H E N D R I C K ,
C O N S T A N C E M . W R I G H T , S e c r e t a r y ; L A U R E T T A Q U A M , Assistant T r e a s -
Counsel.
u r e r ; U N G A R O & S H E R W O O D , Counsel.
NEW
GEORGE
MACDONALD,
President;
YORK
F.
G. L . B L I S S , President; F . G. STICKEL, J R . , Vice President-General
SON, President-Secretary; W . H . LOHMAN, Vice President-Treasurer;
J. M . M A R T I N , Assistant Secretary; A. E . M U E L L E R , Assistant
Treasurer; E . S. T E S D E L L , Counsel.
Vice
D.
LLOYD,
Vice
MOINES
C . B . R O B B I N S , C h a i r m a n ; E . J. R U S S E L L , Vice C h a i r m a n ; R . J . R I C H A R D -
R O B E R T G. C L A R K S O N ,
V.
DES
Chairman;
Counsel;
Chairman;
Vice
C. E . BROUGHTON, Chairman; H . G . ZANDER, J R . , Vice Chairman; A. R .
President-Secretary;
DENTON
C. LYON, Treasurer.
PITTSBURGH
LITTLE ROCK
E . T . T R I G G , C h a i r m a n ; C. S. T I P P E T T S , Vice C h a i r m a n ; R . H .
ARDS,
President;
G.
R.
PARKER,
Vice
President;
H.
H.
RICH-
GARBER,
J . G I L B E R T L E I G H , C h a i r m a n ; W . C. J O N E S , J R . , Vice C h a i r m a n ; B . H .
W O O T E N , P r e s i d e n t ; H . D . W A L L A C E , Vice P r e s i d e n t ; W . F . T A R V I N ,
Secretary-Treasurer; R . A. CUNNINGHAM, Counsel.
Treasurer; J . C. CONWAY, Secretary; W . H . CLARK, J R . , Counsel.
WINSTON-SALEM
TOPEKA
G. W. W E S T , C h a i r m a n ; E . C . B A L T Z , Vice C h a i r m a n ; O. K . L A R O Q U E ,
President-Secretary; G. E . WALSTON, Vice President-Treasurer; J o s . W .
H O L T , Assistant S e c r e t a r y ; R A T C L I F F E , H U D S O N & F E R R E L L , Counsel.
G . F . M C K I N N I S , C h a i r m a n ; P . F . G O O D , Vice C h a i r m a n ; C . A. S T E R L I N G ,
President-Secretary; R . H . B U R T O N , Vice President-Treasurer; J O H N
S. D E A N , J R . , General Counsel.
CINCINNATI
PORTLAND
T H E O . H . T A N G E M A N , C h a i r m a n ; W M . M E G R U E B R O C K , Vice C h a i r m a n ;
F . S. M C W I L L I A M S , Chairman; B . H . H A Z E N , Vice Chairman; F . H .
W A L T E R D . S H U L T Z , P r e s i d e n t ; W . E . J U L I U S , Vice P r e s i d e n t ;
DWIGHT
W E B B , J R . , S e c r e t a r y ; A. L . M A D D O X , T r e a s u r e r ; T A F T , S T E T T I N I U S &
JOHNSON,
President-Secretary;
IRVING
BOGARDUS,
Vice
President-
Treasurer; M r s . E . M . SOOYSMITH, Assistant Secretary.
HOLLISTER, General Counsel; R . B . JACOBY, Assigned Attorney.
Los
INDIANAPOLIS
F . S. C A N N O N , Chairman-Vice President; S. R . L I G H T , Vice Chairman;
FRED T.
G R E E N E , President;
B. F. BURTLESS,
JONES, HAMMOND, BUSCHMANN & GARDNER,
Secretary-Treasurer;
Counsel.
ANGELES
C. I I . W A D E , Chairman; D . G. D A V I S , Vice Chairman; M . M . H U R FORD, President; C. E . B E R R Y , Vice President; F . C. N O O N , SecretaryTreasurer;
VIVIAN
SIMPSON,
PATRICK, General Counsel.
Assistant
Secretary;
RICHARD
FITZ-
@FedFRASER