The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Vol.6 No. 4 FEDERAL HOME LOAN BANK REVIEW JANUARY 1940 ISSUED BY FEDERAL HOME LOAN BANK BOARD WASHINGTON D . C . CONTENTS FOR JANUARY FEDERAL HOME LOAN BANK REVIEW Published monthly by tht FEDERAL HOME L O A N BANK BOARD John H. Fahey, Chairman T. D. Webb, Vice Chairman F. W. Catlett W. H. Husband F. W. Hancock, Jr. FEDERAL HOME LOAN BANK SYSTEM FEDERAL SAVINGS AND LOAN ASSOCIATIONS FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION HOME OWNERS' LOAN CORPORATION STTRSPRTPTTON PRICE OF REVIEW. 1940 SPECIAL ARTICLES Page Appraisal conferences and techniques "Subject to Federal examination'' State legislation affecting savings and loan associations Mortgage aspects of the housing census 106 110 112 116 (Savings and loan cooperative advertising—Part 2f originally scheduled for this issue, will appear in March.) STATISTICS Residential construction and home-financing activity General business conditions Residential construction Foreclosures Small-house building costs Mortgage recordings New mortgage-lending activity of savings and loan associations Federal Savings and Loan Insurance Corporation Federal Savings and Loan System Federal Home Loan Bank System 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: Lending operations of the Federal Home Loan Banks No. 10: Government investments in shares of savings and loan associations. Nos. 11, 12: Home Owners' Loan Corporation Nos. 13, 14: Mortgage recordings 118 119 120 120 121 121 122 122 123 123 126 128 130 131 132 132 133 133 133 134 REPORTS From the month's news Resolutions of the Board Directory of member, Federal, and insured institutions added during OctoberNovember Announcement of the election of Federal Home Loan Bank directors 115 124 124 125 The FSDBEAL HOME LOAN BANK REVIBW is the Board's medium of communication with member K S T ^ H o m e Loan Bank System and is the only official organ or periodical publication of the Board The REVIEW w £ * T Z t to all member institutions without charge. To others the annual subscription price, which covers the cost of paper and Drintins 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^copie^ ordered from * ^ ^ l ^ > £ ^ ' A P P R O V E D BY T H E BUREAU OF T H E B U D G E T . Government Printing Office, Washington, D. C, 199498—40 1 APPRAISAL CONFERENCES AND TECHNIQUES Several thousand appraisers have participated in setting values on residential properties during six years of Home Owners9 Loan Corporation operations. Improved appraisal practices and procedures have resulted. After intensive study, the findings are being presented in a Nation-wide series of conferences. • ACCURATE appraisals are an essential part of the effective operation of every branch of the home-financing field. No matter whether an institution is operating as a going concern and lending money, or whether it is in the process of liquidation and interested only in effecting an orderly sale of acquired properties, dependence must be placed upon reliable estimates of the value of real property. In an effort to pass their broad experience to all in the real-estate financing field, the officials of the Home Owners' Loan Corporation recently announced a series of technical conferences designed to assist appraisers in estimating the value of real property and in setting forth their findings in an intelligible manner, with clear justification for their conclusions. The meetings are open to all interested in appraisal operations, whether connected with the Home Owners' Loan Corporation or not, for the Appraisal Section of the H. O. L. C. is making these conferences available to the entire fraternity as a public service. They stress the fact that constantly changing conditions in the real estate market in recent years have compelled improvement in appraisal procedures. During this era of change, over 3,000,000 field appraisals were made in connection with the H. O. L. C. lending operations in 1933-1936, and more than 200,000 appraisals of properties in the liquidating program since that time. As a result of this wide experience, basic principles have been evolved in H. O. L. C. appraisal activities which are applicable to all operations in the real estate and mortgage-lending industry. Already groups of from 2*5 to 150 have gathered in 16 cities to discuss the H. O. L. C. methods, and the audiences have been composed of savings and loan officials, real estate brokers, contractors, insurance and mortgage company representatives, and other individuals interested in real estate appraisal, as well as the fee and salaried personnel of H. O. L. C. At these conferences, where lectures alternate with discussion periods, the reception has been so favor106 able t h a t it is now planned to hold at least one 3-day meeting in every State where sufficient interest is shown. Although the success of these meetings may be attributed in part to the keen interest in the general principles which have evolved in the development of H. O. L. C. appraisal technique, of prime importance is the fact that much of the time during the conference is devoted to open discussion of common everyday problems in appraising. The contribution of the conferees in these discussions has made it possible to apply the broad principles developed by the H.O.L.C. to the operations of the savings and loan association, and of the real estate broker or contractor. The local real estate situation is made the center of discussion, as specific cases in the community are cited by participants to illustrate their points. There has been general agreement t h a t the contributions to an understanding of the local situation which arise from this "give-and-take" procedure are most helpful. This permits the H . O. L. C. Appraisal Section representatives to relate general principles to specific problems in the community, and achieves the ultimate objective of the conferences: to help appraisers to solve their own difficulties, but not to attempt to find ready-made solutions. A second factor contributing to the general feeling that these meetings have been uncommonly successful has been the care taken to interpret appraisal terminology. As one man expressed it, "We seemed to get much more from our discussions because we were all thinking in like terms. Through a clear-cut definition of terms at the beginning of the conference, it is possible to follow the discussion with the feeling that we all share a common understanding of the concepts of 'Comparative Survey', 'Summation', 'Capitalization of Gross Income', 'Present Fair Market Value', and other technical phrases." Of major importance to the success of the conferences held thus far has been the emphasis placed on neighborhood standards and their influence upon Federal Home Loan Bank Review appraisals. Discussion of such factors as size of family, income levels, community growth, type of construction, racial groups, vicinity trends, in their relation to the Present Fair Market Value of a property has led to a better understanding of those influences constantly at work in any community which affect the stability of property values. ment of conclusions to managing officials for their use in determining a course of action regarding the property under consideration. The report form, then, should be visual evidence of the analysis which has been made by the appraiser. It should not be a strait] acket designed to restrict the appraiser to a narrow path in his approach to value. The object is to cause him to record in logical sequence the influences which combine to establish his definite conclusion as to the property's Present Fair Market Value. In the words of one man long experienced in the field, "A narrative report would probably be most effective in the majority of instances, but the use of forms such as those of H. O. L. C. assures a client that vital points will be recorded uniformly. I t makes the appraisal report a picture of the parcel seen through the appraiser's eyes, with the influences which contribute to the setting of the Present Fair Market Value clearly and comprehensively expressed.'' Development of the H. O. L. C. reporting form APPROACH TO APPRAISALS Although the conferences are planned to be as broad as possible, the H. O. L. C. Appraisal Section emphasizes practical approaches which are based upon clearer concepts of value. For example, in crystallizing various ideas and procedures into a definite school of thought, the H. O. L. C. has devised a form which assures complete and uniform methods of reporting and recording appraisal information. The particular type of any form used, however, is not as important as the necessity of putting such data in logical sequence for analysis. The purpose of appraising is to present information and a state- HOME OWNERS LOAN CORPORATION PROPERTY APPRAISAL REPORT BORROWER Any Town COUNTY STATE REAL ESTATE ACTIVITY—DEGREE O F T R E N D PRINCIPAL I N D U S T R I A L I N F L U E N C E S BUILDING manufacture of automobiles% tools> Steadily up in $4.000 to $6*000 class Rapidly upward in all residential and associated products. Steady Distribution of raw materials and NEIGHBORHOOD is O F Desirable CHARACTER-THE DEGREE O F TREND IS: 3 / OLD-MOO. \ G E VNEW-OBSO.J GEN. CONDITION I B U I L T U P MAJOR STRUCTURAL TYPE | CONSTRUCTION AGE DISTRICT 1 & 2 FaakRea Brick Ven.B5 yr.Mod Fair-Good! Brick Ven.|25 yr.ModJ Fair-Good! CONVENIENCES RACIAL OCCUPANCY Gradually downward 8 ZONING OWNERS 70 90 .SSL 100 TEhite - mixed 20 Res. B Res, B I F o r e i g n White nationalities QS .CHQOL L blklcHiEF EMPLOYMENT S k i l l e d mechanics and i n d u s t r i a l c l e r i c a l ALLEYS [ Cone. 8 blk TYPICAL FAMILY INCOME $2«700 — from a l l members Brick 1 blk VICINITY RENTAL LEVEL $45 p e r month p e r unit cmjR^glO blkJMAxiMUM VALUATION LEVEL ASptl, (TRANSPORTATION } 1 FACILITIES 1 SUBJECT PROPERTY'S CONFORMITY I TO NEIGHBORHOOD STANDARDS ( _ , _ §5*000 s i n g l e - $ 9 , 0 0 0 double ^ « , Bus, j b l k . - Tramf 2 b l k , - 2 b l v d . 1 and L b l k s S. P. single family, conforms well structurally and architecturally Below standard physically. SUBJECT BUILDINGS DESCRIPTION - TENANTABILITV - -AS-is": January 1940 Minimum r e n t a l only 107 WMKftW METHOD 30 50 FUTURE LIFE " A S - I S " BLDG. FUTURE LIFE ' A S - R E C D " BLDG. J U S T I F Y T H E SELECTION O F T H E C A P I T A L I Z A T I O N RATE 50 Actual transactions in immediate 'I v i c i n i t y e s t a b l i s h a factor of 11% as a ratio of gross income to Present Fair Market Value in similar types of 1-faraily houses. The conversion factor of 13% i s observable in 2-family residences nearby. Net capitalization process i s not applicable in t h i s Subject Property analysis because i t i s not primarily income producing. ^ f VICINITY TRANSACTIONS a COMPARISONS 51] PROPERTY ADDRESS UNITSIROOMsfcONSTRUCTN 123 - 4th S t . CONDITION EST.-P.F.W.V. Br.Ven As.Recond. $5.100 Br.Ven Good 5,000 SUBJECT PROPERTY 145 ~ 4th St. Br.VenJ Fair St.VenJ Fair ?31 - 4th S t . 126 - 4th S t . 10 168 - 4th S t . Br.Ven J RecondJ 10 Sd.Br. Good 67 173 - 5th S t . K't ) 88 18a LV A - 5 t h St. 1 5 Br.VenJ Fair RENTAL I 8.650 4,750 5,250 9,000 4,800 ^ y ACT. SALE PRICE LON * MARKET MAR"* 9-39-10S-15 yr. SA.975 $S,2gO 9t5QO DATE SOLD ft TERMS ^^K' 11 11,120 5401 5,600 9,750 | Vac. 5.100 1.1301 9»200 540 ll-39-33<-10 Jr. 8 - 3 9 - l # - 2 0 yrl [ — - B U I L D I N G S - R E P R O D U C T I O N COST ESTIMATES C U B I C CONTENT E X P L A I N - F U N C T I O N A L ft ECONOMIC DEPRECIATION DEDUCTIONS I N DETAIL. At least $500 of estimated physical depreciation will be recaptured by recommended repairs. Functional deduction made because J"A8-REC"8UMMATION VALUB 4,825 heating equipment and some plumbing need replacement. House will offer much more eye appeal when kitchen and bath have been renovated, and rentals will Increase to neighborhood standard with garage facilities contained in repair schedule. Economic depreciation due to downward trend of district and the lower income group now occupying same. Garage, $275; Physical repairs, $480; Fixture replacements, $320; Interior decorations, $100; Total, $1,175. 108 Federal m Home Loan Bank Review and of the underlying appraisal policy came gradually. In 1933, when the H. 0. L. C. began making appraisals, values had to be set when there was no active market to guide the appraiser. With the termination of lending in 193 6, the maj or need in the liquidation of acquired properties was for appraisers to determine what the H. O. L. C. could realize for them under present conditions with fairness to both buyer and seller. As a result, about two years ago the caption "Present Fair Market Value" was developed to give a definite estimate of what a property should bring under existing conditions. It is the interpretation of this concept of value which has aroused the greatest interest in these technical conferences. Many of the discussion period questions which have been raised indicate the desire of the conferees to obtain a clear-cut definition of the term "value" as it is used in property evaluations. It is evident that certain limitations have been placed upon its application. In the first place, the estimated value must represent a property's present worth, as distinguished from a conjectural opinion of its value at some future date. It must be fair in the sense of being equitable for both buyer and seller. And furthermore, it must recognize the influence of the demand and supply factors in the actual market, that is, the possibilities for making an actual sale of the property being appraised. The ultimate goal is to arrive at a Present Fair Market Value. With a better understanding of the final objective of the appraisal procedure, those present at these meetings were then interested in how they could derive the desired figures. In other words, "What are the different approaches which can be used to obtain the Present Fair Market Value of a property?" The answer to this question can be found by a careful study of the sample report form, portions of which have been illustrated on the opposite page. A glance at this form reveals that there are three methods which can and should be used: (1) capitalization; (2) comparative survey; and (3) summation. If all factors have been computed accurately, there should undoubtedly be a definite correlation between the results. The object is to use all known methods of valuation, and it is unlikely that there are any instances in which less than two of these approaches will be appropriate. The Capitalization Process involves the use of both net and gross income methods. The gross method is illustrated in the section of the report form marked "A" and from this it may be seen that it centers upon the capitalization at a rate "commensurate January 1940 with the risk involved". In the example given, it may be noted that there are two possible gross incomes, one if rented "as is", and the other if rented after reconditioning. The selection of the capitalization rate is all-important. A net capitalization process is used only in the valuation of properties where the earnings are of primary importance. A second approach, the Comparative Survey Method, recognizes the fact that one house in a group of similar houses is logically going to bear a comparable value. Following this approach involves a comparative analysis of sales and listings of those dwellings which are of approximately the same size and age and offer equal accommodations, interior arrangements, and location with proximity to transportation, stores, and schools. (See Section B.) The Summation Value of a property is computed by deducting its physical, functional, and economic depreciation from the present reproduction cost of the dwelling, and then adding the estimated value of the land and its improvements. (Section C of the illustrated form.) This method of computation gives substantial recognition to two types of depreciation which seem to have been minimized in most previous appraisal practices, namely: functional and economic loss of value. Physical depreciation represents loss in value brought about by wear or decay. Functional depreciation is loss sustained through a reduction in the use value of the house, such as outmoded design and poor arrangement. Economic depreciation is the result of lessened desirability because of external changes in the neighborhood or its standards. After a thorough investigation of these three approaches to value, there should be a close correlation between the results if the different factors have all been computed accurately. At this point, all three approaches should sustain the appraiser's final estimate of Present Fair Market Value. The advantages of discussing these appraisal processes and concepts of value, all relating to neighborhood standards, are shown in the growing uniformity of reporting. This is proving beneficial to theH. O. L. C. and to other lending and liquidating institutions. This has led to the decision to schedule similar meetings throughout the country. The H. O. L. C. will be glad to notify prospective participants of the time and location of the nearest conference. Headers may also obtain a copy of the Property Appraisal Report form, together with line-by-line instructions for the computation of the different items. Requests should be addressed to the Editor of the REVIEW. 109 'SUBJECT TO FEDERAL EXAMINATION" An objective approach to the question of examinations which includes a discussion of the history, cost, benefits, and purposes of examinations. • T H E history of Federal examination of savings and loan associations is short—its development has been rapid. Although Federal examination is required only of insured State-chartered and Federal associations, its influence has contributed largely to the growing understanding and greater interest in examinations on the part of the industry as a whole. In comparing the history of jurisdictional audit in other types of financial institutions, one observes that the governmental supervision of commercial banks in the United States developed slowly, and that policies and procedures pursued today are also of comparatively recent origin. The National Bank Act of 1863 authorized the Comptroller of the Currency to examine national banks whenever he considered it necessary, and it was the policy to make an annual examination of each national bank as early as 1872. This policy was not formalized in law, however, until 1913 when semiannual examinations of national banks were required. I t is interesting to note, too, that before 1916 copies of the examination report were not supplied to national banks, although the Comptroller did inform each bank of the examiners' conclusions and recommendations. In 1870, State banks were being examined in six States, and by 1910 regular examinations were the rule in 40 States, being required by law in 36. The original Federal Reserve Act passed in December 1913 provided for semiannual examinations under the direction of the Comptroller of the Currency of State banks which were members of the Federal Reserve System; an amendment in 1917 placed the control of these examinations in the Federal Reserve System. The Board of Governors of the Federal Reserve System has, since the passage of the original act, been empowered to accept examinations made by State authorities and customarily did so until the early 1930's. Today, however, the usual procedure is for the Federal Reserve System to conduct independent or joint examinations of these State member banks. A little more than five years ago, the national examining division for savings and loan associations 110 was created by the Federal Home Loan Bank Board. Considerable progress has been made in these five years, and it is not surprising that the industry has become "examination conscious." Nor is it surprising, as one reflects upon the history of the development of the investigation policies and procedures in other types of financial institutions, t h a t it has been necessary to make changes, and that savings and loan associations are still "problem conscious" enough to make further improvements. T H E COST OF EXAMINATIONS Some sort of examination of savings and loan associations is necessary, if for no other reason than public demand. I t is natural, however, that each institution should desire to keep the cost of these analyses at a minimum. The question of costs has been given a great deal of attention, created tremendous interest, and some real progress has been made in that direction. There is a limit beyond which any additional reductions can be made only at a sacrifice of the high standard of personnel competency, and the quality of the examination work thus far maintained. The cost of these investigations has been reduced. The report form has been simplified; supporting schedules have been shortened; and substantial eliminations have been made in the work of listing loans subject to criticism. A 10-percent reduction in per diem charges went into effect in January of last year. Through experience, the efficiency of examiners has increased. Through increased cooperation, many associations have assisted in reducing examining time. A summarization of comparative figures reveals that there has been about a 15-percent reduction in the average cost per $1,000 of assets during the past year. Generally speaking, three factors determine the cost of an examination: (1) the amount of information to be obtained; (2) the ease and speed with which this information can be secured from the association's records; and (3) the efficiency of the examiner. Federal Home Loan Bank Review The amount of information to be obtained is governed by the report form. The form now being used is one which was developed through the coordinated efforts of the Federal Home Loan Bank Board, the National Association of Building and Loan Supervisors, and the United States Savings and Loan League. The ease and speed with which the information called for in the report can be obtained from the association's records is something which every manager can facilitate. It means dollars and cents to an association if the records are in the proper shape. To this end, there are two important things which can be done: First, keep a record of contractual delinquencies on mortgage loans and land contracts at least from January 1, 1936. Second, keep a systematic, complete, flat file of mortgage loan, land contract, and real estate documents in uniform order, eliminating excess papers, such as expired insurance policies, receipts, and unimportant invoices and correspondence. The full value of a record of contractual arrearages is not always easily seen. If it stopped with its service in connection with an annual examination, its preparation would certainly not be justified. Many institutions, however, make a monthly analysis of the manner in which these payments are being made by borrowers for presentation to their boards of directors. A careful analysis of contractual performance of a good sized institution in the Fifth Bank District, covering the period previous to and during the depression, revealed that a definite downward trend in contractual performance had set in three years previous to interest delinquencies. Interest payments were the next which the borrower began to miss, and taxes appeared third. A record of contractual delinquencies might have been a forewarning of a situation which caught many institutions by surprise a few years back. In addition to these two major factors, there are several other ways in which managers can help to reduce the examination costs of their own institutions. Included among these are: (1) maintaining more complete records on income and expense items with a more uniform distribution; (2) keying all postings to every account (particularly surplus accounts) with explanations and folios; (3) keeping a set of general files where invoices, receipts, correspondence, etc., are available; (4) having mortgage loan and real estate individual accounts reflect complete information necessary for scheduling; (5) assigning one or more employees to work with the January 1940 examiners in obtaining some of the detailed information required. None of these ways in which managers can help reduce examination costs is inconsistent with the accepted practices of any other well-managed business. Yet, when added together, they effect economy in more ways than just the one under discussion. THE BENEFITS OF EXAMINATION Whether the cost of examination is justified is determined in a sense by the benefits which an association derives from them. The value of a review by an outside authority depends largely upon the use which the association makes of it—a case of getting out of it what is put into it. In the first place, the advertising value of being "Subject to Federal Examination" cannot be discounted. It is a confidence builder. It affords customer protection. Furthermore, analysis of this type gives the management a financial picture from an independent point of view—a picture which can be utilized constructively for the betterment of the institution. It gives the management the satisfaction of an external check on the correctness and integrity of an institution's accounts. It develops material for the use of the manager and the board of directors which might not otherwise be developed because of the time element involved in preparation. There are innumerable cases where information disclosed in an examination has saved institutions thousands of dollars. Often a study of management policies has placed supervisory officers in a position to give constructive criticism which resulted in a change in policies, which in turn started an upward trend in a major operation of the association. THE PURPOSE OF EXAMINATIONS Shortly after the Examining Division of the Federal Home Loan Bank Board was created, the decision was made to keep "examination" separate from "supervision." This restricted the scope of these examinations to that of fact-finding—of taking a picture of conditions as they are. Therefore, the purpose of examining an association's records periodically is to furnish the supervisory authorities with facts from which can be determined: first, the soundness of the institution; second, the degree of compliance with legal requirements; and third, the extent to which constructive suggestions should be made regarding practices and policies. (Continued on p. 117) III STATE LEGISLATION AFFECTING SAVINGS AND LOAN ASSOCIATIONS In a number of States, Legislatures in 1939 passed laws designed to afford more complete use of facilities offered by the Federal Home Loan Bank Board and its agencies. • W H E N the Federal Home Loan Bank Act was passed by Congress in July 1932, the laws in effect in most States prevented complete use of the Bank System by those institutions it was designed to benefit. This was quite natural. The responsibility imposed on each State to protect the savings of the public invested within its jurisdiction left it no choice but to define rather specifically and restrict carefully the operations of thrift and home-financing institutions. I t is an axiom that laws do not keep pace with economic changes. The creation of the Bank System and other agencies to aid in home financing took place during an era of rapid economic change. I t could not be expected that the legal restrictions which had been designed to prevent savings and loan associations from unwise investment and borrowing would apply equally well under these new conditions. As the result of a process of natural development, however, State laws have been modified to enable institutions that desire it to cooperate and use the facilities offered by the Federal Home Loan Bank Board and its agencies. Although this development is not yet complete, considerable progress has been made as a result of the fine spirit of cooperation which State Legislatures have displayed in removing these obstacles. The activity of the legislative committees of the national and State savings and loan leagues, and the individual efforts of many supervisory officials and leaders of the savings and loan industry throughout the country, have been directed toward the passage by the State Legislatures of certain enabling acts which would permit a wider use of the facilities of the Bank System by those institutions for which it was created. The Bank System cooperated by making available a draft of illustrative statutes covering the major fields in which there was still room for improvement of existing laws. In response to many requests from those interested in the adoption of modernized statutes, this article summarizes the progress made during 1939 with regard to provisions for member112 ship, reserves, liquidation by the Insurance Corporation, and investments of fiduciary, public, and other funds in obligations of the Banks and the Insurance Corporation, and in insured accounts. M E M B E R S H I P AND P O W E R TO BORROW One of the prime requisites to the success of the Federal Home Loan Bank System and its members is that the institutions which are eligible for membership be permitted to become members and take full advantage of the benefits of membership. In all States, institutions of the savings and loan type may now become members. Some work remains to be done in the case of savings banks and insurance companies. Authority to take full advantage of the benefits of membership is not so widespread. I n a number of States the statutes limit the amount of borrowings by a member from its Federal Home Loan Bank, either directly or by limitations on the amount of Bank stock which a member may own. In other instances the purposes for which an institution may borrow are restricted. Most of these provisions have come down from the days when the only sources of funds were banking institutions whose lending policies were not specifically adapted to the long-term needs of the homemortgage field. Since the Bank System now provides a permanent source of long- and short-term credit, the continued existence of restrictive provisions may act to prevent associations from receiving adequate credit in periods of seasonal or emergency need. To meet emergencies in times of stress, individual institutions may need to borrow a larger percentage of their assets than is now permitted under many State laws. In the interest of the general public, as well as of the institution and its investors, it is important to prevent loss of confidence which might easily spread to other institutions and localities. With these considerations in mind, the Bank System has prepared an illustrative statute which, if adopted, authorizes every eligible instituFederal Home Loan Bank Review tion of the State not only to become a member but also to purchase Bank stock, obtain Bank advances, and pledge collateral as security therefor, "to the extent provided by, and in accordance with the provisions of, the Federal Home Loan Bank Act." Examination of laws passed during 1939 indicates that some statutes have been liberalized along these lines. The ever-present possibility of emergency conditions, however, makes it desirable to remove completely the State-law restrictions on borrowings from the Bank System. In the State of Washington, the new amendments made clear that savings and loan associations may borrow from the Bank System to the full extent permitted by the Federal law and regulations. In a number of other States the power to borrow from the Bank System was broadened, but restrictions on the power were not entirely removed. Colorado, Idaho, Indiana, Michigan, Minnesota, and Wisconsin are among this latter group. LEGALITY OF INVESTMENTS Public funds and those of fiduciaries, charitable institutions, and financial corporations represent a huge reservoir of money which must be invested with utmost safety. Obligations of the Banks and those of the Insurance Corporation, and accounts of institutions having the insurance protection, are attracting an increasing amount of attention as investments for these funds. Accounts in insured savings and loan associations are particularly suitable because the factor of safety is coupled with a rate of return usually greater than that on other investments having equal security. Some State laws set forth with great particularity the types of investment in which these funds may be placed. Other statutes cover the field only partially, and in some States the laws are silent. Where there is no specific legislation, certain types of investments may be made in some jurisdictions which are improper in others. The constitutions of a few States prohibit investments by fiduciaries in private corporations. A restriction of this nature was lifted from the Alabama constitution during the past year. The Bank System's illustrative investment statute covers investments by trustees and other fiduciaries, by charitable and educational institutions, by public officers and public bodies, by financial institutions, including banks, savings banks, and savings and loan associations, and by insurance companies of all types. I t provides that such investments may be made January 1940 without limit in three classes of securities. The first consists of obligations issued under the Federal Home Loan Bank Act, "as now or hereafter amended," including consolidated Federal Home Loan Bank bonds and debentures. The second consists of obligations of the Insurance Corporation issued under Title IV of the National Housing Act, as so amended. The third consists of the accounts of institutions which have the insurance protection provided by Title IV of the National Housing Act, as so amended. In addition, any of these three classes of investments may be used wherever collateral is required by statute as security for the deposit of public or other funds. Approximately half of the jurisdictions of the Bank System enacted favorable legislation on this subject during 1939. In some cases the new legislation covers only a small part of the broad and comprehensive field suggested by the draft, and much remains to be done except where the effect of the 1939 enactments was to round out existing laws which were already substantially complete. In other jurisdictions the past year's enactments cover a very considerable part of the investment field, and in still others, as in Iowa and Utah, objectives are almost completely realized. The large number of revisions which were accomplished is evidence of the interest of all insured institutions and the industry as a whole. LIQUIDATION BY INSURANCE CORPORATION The procedure by which an insured association will be liquidated when it goes into default and the Insurance Corporation must meet its insurance contract is obviously of direct concern not only to all insured associations and their account-holders but also to the Insurance Corporation itself. Insured associations and their account-holders are necessarily interested in the preservation of the soundness of the insurance protection afforded by the Corporation and do not wish to see its reserves dissipated through avoidable shrinkage or excessive costs of liquidation. The Corporation is equally interested in maintaining its strength and continuing to render the service for which it was created. The interests of all will be benefited, therefore, if losses and liquidating fees are kept to a minimum. This can best be done by liquidation through an agency, such as the Insurance Corporation, which has a direct financial stake in the success of the operation. With this thought in mind, it is provided in the illustrative statute that the appropriate State II3 authority shall tender to the Insurance Corporation the appointment as receiver or liquidator where an insured State-chartered association is taken over for liquidation. Another version provides for co-receivership or co-liquidatorship by the Insurance Corporation. This version is less desirable, as it does not achieve the full advantages of reduction of expense, but its choice has been found necessary in some cases. Both forms of the statute contain a provision that the subrogation of the Insurance Corporation when it makes the benefits of insurance available to the holder of an insured account shall not affect any right the account-holder may have in any portion of the account which is uninsured, or any right he may have to participate in the net proceeds remaining from the disposition of the association's assets. Before the 1939 legislative sessions only one State, Louisiana, had a statute requiring the appointment of the Insurance Corporation as liquidator. In Kansas the statute required its appointment as coliquidator with the State building and loan supervisor. Only one other State, South Carolina, had any provision on the point. The law of that State provided only that the Corporation might be tendered the appointment as receiver or liquidator, not that it must be. This type of permissive statute is believed by many to be less desirable than a mandatory provision for co-receivership or co-liquidatorship. During the past year 11 jurisdictions enacted favorable legislation on this matter, bringing the total to 14. In Alabama, Arkansas, New Mexico, and North Dakota there are mandatory provisions requiring that the Insurance Corporation be offered the appointment as sole receiver or sole liquidator. The Wisconsin statute differs somewhat but resembles these. In Hawaii and New Jersey, the statutes are mandatory but provide for co-receivership or co-liquidatorship. Statutes of the permissive type were enacted in four States, the Texas statute merely authorizing the banking commissioner to appoint the general manager of the Insurance Corporation as his agent in the liquidation. STATUTORY R E S E R V E PROVISIONS Of fundamental importance to the soundness of savings and loan associations is an adequate reserve policy. In the event of depression, or when an individual association suffers unexpected losses, the Insurance Corporation protects ^the investor and wards off runs by preserving the public confidence. 114 But even though the Insurance Corporation saves the investors from loss, the association itself, as an institution performing a useful public service, has need of ample reserves as the surest means of preventing impairment and assuring its own preservation as a going concern. As has been pointed out in a recent study, 1 the laws of about three-fourths of the jurisdictions of the Bank System contained mandatory provisions for reserves at the end of 1938. Approximately half of these required that a general reserve for losses be built up to 5 percent of assets, or, in some cases, of capital or loans. However, the study also revealed that in about one-fourth of all the areas having mandatory reserve provisions a requirement of 10 percent or a higher figure, generally based on assets or capital, was established, with 10 percent by far the most popular figure. I t appeared that there had been a definite trend toward the 10-percent figure since 1933. As to the required periodic transfers by which the ultimate reserve is built up, the study showed that a rate of 5 percent of "net earnings" (or "net profits" or "net income") had been adopted to about the same extent as the 5-percent figure for ultimate reserves. In this case, however, there was no tendency toward a requirement higher than 5 percent. The chief movement in recent years has been away from the lower rates, or from no requirement, and toward the 5-percent figure. In preparing the illustrative draft, it was concluded that the statutes requiring an ultimate reserve of 10 percent of capital and periodic transfers of 5 percent of net earnings represented the best current requirements for the general loss reserve. I t provides therefore that before the declaration of dividends for each semiannual period each association shall transfer to a separate reserve account, set up and maintained for the sole purpose of absorbing losses and known as the "general reserve", an amount equal to 5 percent of its net earnings until the general reserve is equal to at least 10 percent of the association's capital. If and whenever this reserve is not equal to at least this amount, the semiannual credits must again be made until it is once more at least equal to the required amount. M a n y leaders consider that these provisions, with others set forth in the illustrative reserve statute, will do much to asi See "Mandatory Loss Reserve Requirements of Savings and Loan Associations Operating under State Laws," FEDERAL HOME LOAN BANK E E V I E W , November 1938, p. 37. (Continued on p. 136) Federal Home Loan Bank Review « « « FROM THE MONTH'S NEWS » SOURCE: "Construction is the source of the Nation's greatest single investment, and it is a powerful force towards raising the Nation's standard of living." Arthur C. Tozzer, The Constructor, October 1939. OPPORTUNITY: "One of the biggest opportunities in the real estate field todayis in modernization and rehabilitation. There are hundreds of properties in every city that could have their faces lifted and be rented or sold at a profit/' Chris R. Jones, California, November 1939. VALUE: "Today the value and marketability of residential real estate are affected not only by such basic factors as planning, soundness of construction, and the neighborhood, but also by the extent and quality of the mechanical equipment.' ' Insured Mortgage Portfolio, Federal Housing Administration, November 1939. LENDING VOLUME: "There have been only eight years in building and loan's history (1923-1930) when the total loan volume was more than $1,000,000,000. Every sign points to the probability of a close approach to $1,000,000,000 in volume for the full 12 months of this year (1939)." American Building Association News, November 1939. UNNECESSARY: "We cannot avoid considerable impact from the shifts in world requirements. However, it is by no means necessary that this result in the distortion of the price pattern and the rise of price levels which occurred in the World War." Foreign resources in the U. S. A The Board of Governors of the Federal Reserve System states that total holdings by foreign nations of the more readily available international resources—gold, dollar balances, and American securities— are "nearly half again as large as the export surplus of the United States during the four years of the World War, which amounted to $11,800,000,000. Approximately half of all foreign holdings of gold and dollar resources at the present time is under the control of the British Empire and France.7' Federal Reserve Bulletin, December 1939. Early war reactions "It is early yet to assess the effect of the war on (English) building societies as a whole. . . . But we are fortunate to be able to cite authoritative statements from a considerable number of the largest societies. . . . In regard to withdrawals it can be said that generally they have exceeded the average, as one would have been justified in expecting from past experience. . . . The position as regards investments generally cannot be said to be unsatisfactory. A certain amount of new money is still being received, though the total amount is likely to be less than was received at this time last year. . . . Similarly, it would be rash to attempt to estimate at this stage the effect of war-time conditions on mortgage repayments. So far, experience has been normal. The remarkably low ratio of default . . . has been maintained in circumstances which might have been expected to produce an unfavorable reaction.'' Building Societies Gazette, October 1939. Our changing population Dr. Willard L. Thorp, before the Temporary National E conomic Committee. Wall Street Journal, Dec. 5,1939. LAWS: "Laws designed to benefit borrowers may in fact be a detriment to home financing if they have the effect of discouraging lenders from making loans in the jurisdiction in which they operate. Of this class are moratorium laws in general, laws limiting the right of the lender to obtain through a receiver or otherwise, possession of mortgaged property and the income therefrom during foreclosure, laws limiting deficiency judgments and laws permitting long redemption periods." Housing Legal Digest, September 1939 supplement. Issued by Central Housing Committee, Sub-committee on Law and Legislation. January 1940 1850 I860 1870 1880 1890 1900 1900 1920 1930 1940 1950 i960 1970 1980 This chart shows the changing composition of the population and indicates the effect of a declining birth rate. The proportion of those under 20 has been dropping steadily. From the point of view of persons available for production, the age composition has been improving, only 45 percent being between 20 and 65 in 1850, and over 58 percent in that age bracket at the present time. The Structure of the American Economy, National Besources Committee. II5 MORTGAGE ASPECTS OF THE HOUSING CENSUS Data on the methods and sources of home financing, as well as information on the physical condition, equipment, and economic characteristics of all dwellings, will be collect" ed this year by the Nation's initial census of housing. • T H E Nation's first census of housing is scheduled to begin in April of this year. Authorized by Congress in the closing days of the last regular session, it is the most important new subject to be covered by the Bureau of the Census during its work for the Sixteenth Decennial Census. The preliminary list of inquiries to be included on the schedule for the housing census is printed on the opposite page and is indicative of the type of information to be secured for each of the estimated 35,000,000 occupied and vacant dwelling units in the United States. The home-financing data collected from all owneroccupied nonf arm homes contacted during the census will represent the most complete summary of this type of information ever obtained in this country. The questions on this part of the housing study are included in the last seven items on the opposite page. They include inquiries as to the value of each property and the amount of outstanding indebtedness on the first and second mortgages. The arrangements for liquidating these mortgages will be studied through queries on the frequency and amount of regular payments and provisions for the reduction of principal and for the accumulation of funds to pay real estate taxes. These facts will measure the prevalence of monthly payment loans, of mortgages requiring prinicpal reduction, and of agreements with financial institutions whereby future taxes are anticipated through regular monthly payments. Tabulations will be made by size of loan, type of mortgage holder, and geographic area. Some light on the relative burden of home ownership will be provided by comparisons of the amount of mortgage payment with the value of the property, with the estimated rental, and with the wage or salary income of the home owner. Answers which are obtained from the question on interest rates will, of course, have to be interpreted in the light of other charges levied against the home owners by the various types of mortgage lenders. Nevertheless, these figures will serve as a partial guide in interpreting existing data on the cost of financing home ownership. 116 The relative importance of the various types of mortgage holders in the home-financing field will be indicated by summaries of the amount of outstanding indebtedness on first mortgages held by each class of mortgagee. This information, together with data on payment plans and interest rates, will provide the basis for a comparison of variations in the lending practices of different mortgagees. An analysis of these data for cities and other local areas should be of assistance to home-financing institutions in evaluating their competitive position in the local mortgage market. In addition to the data relating particularly to home finance, the housing schedule will include an extended list of questions on the characteristics of all residential structures and dwelling units, as well as the conveniences and equipment available in these units. The compilation of these data for the different census subdivisions in each city will help mortgage lenders to determine the mortgage stability in the various sections of the communities which they serve. By correlating data on the age, physical condition, and equipment of dwellings in a community, or in specific neighborhoods, it will be possible to obtain complete information on existing housing conditions. This knowledge will also provide clues to the location of opportunities for lending for reconditioning and modernization. Included in the census will be the first Nation-wide summary of residential vacancies. These vacancy data will be analyzed according to estimated rental value of the dwelling unit and other characteristics. An indication of the influence of price in the demand for housing will be given by summaries which present the characteristics of the unoccupied houses available at various rental levels. Numerous trade associations and research agencies in the real-estate, home-financing, and construction industries, together with the Government agencies interested in housing, have emphasized the value of this type of census and have urged its initiation. Instrumental in drafting the census plans has been a special committee of the Central Housing Committee. Federal Home Loan Bank Review Preliminary List of Inquiries: Census of Housing, 1940 Characteristics of structure in which dwelling unit is located A. Type of structure: 1-family detached, 1-family attached, 2-family side-by-side, other 2-family, 3-or-more family structures and structures with business by number of dwelling units B. Structure originally built as: Residential structure with same number of dwelling units, with different number of dwelling units; nonresidential structure C. Exterior material: Wood, brick, stucco, other D. Is this structure in need of major repairs? Yes or No E. Year structure was originally built F. Located on a farm? Yes or No Characteristics of dwelling unit G. Number of rooms H. Water supply: In dwelling unit—running water, hand pump; within 50 feet of dwelling unit—running water, other I. Toilet facilities: In structure—flush toilet for exclusive use, shared flush toilet, other; outside toilet or privy J. Bathtub or shower with running water in structure: For exclusive use; shared with other households K. Lighting equipment: Electric, gas, kerosene or gasoline, other L. Estimated rental value of owner-occupied or vacant nonfarm dwelling M. Occupancy status of vacant dwelling; for sale or rent—ordinary dwelling, seasonal dwelling; held for absent household—ordinary dwelling, seasonal dwelling Characteristics of occupied dwelling unit N. O. P. Q. R. S. T. U. V. W. X. Y. Z. Home tenure: Owned, rented Color or race of head of household Total number of persons in household Refrigeration equipment: Mechanical, ice, other Is there a radio in this dwelling? Yes or No Heating equipment: Central steam or hot water, piped warm air, pipeless warm air, heating stove Fuel for heating: Gas, coal or coke, wood, fuel oil, kerosene or gasoline, other Fuel for cooking: Electricity, gas, coal or coke, wood, kerosene or gasoline, other Monthly rental of renter-occupied dwelling Rental value without furniture of renter-occupied nonfarm dwelling with use of furniture included in rent Cost of utilities and fuel paid for by nonfarm renter in addition to monthly rental Value of owner-occupied home If owner-occupied nonfarm, is property mortgaged? Yes or No Mortgage characteristics of owner-occupied nonfarm 7- to 4-family Aa. Bb. Cc. Dd. Ee. structure Present amount of outstanding indebtedness on first mortgage or land contract; on junior liens Frequency and amount of regular payments on first mortgage or land contract Do these regular payments include principal reduction? Yes or No. Real estate taxes? Yes or No Interest rate on first mortgage or land contract Type of holder of first mortgage or land contract: Building and loan association, commercial bank, savings bank, life insurance company, mortgage company, H. O. L. C , individual, other Federal Examination (Continued from p. Ill) The soundness of an association involves the consideration of its financial condition with particular emphasis on the adequacy of its reserves, the sufficiency of its earnings, and the trends shown in its most significant accounts. The degree of compliance with legal requirements implies t h a t the examination should reveal any violation of the laws, rules, and regulations, or charter and by-laws of the association, including any lack of integrity in the accounts. In addition, the review should reveal factual information reflecting the policies being practiced by the association, for even those operations which are not in direct violation of legal requirements may be unsound. January 1940 I n spite of the relatively short history of Federal examination of savings and loan associations, it is apparent that real and rapid progress has been made in accomplishing these purposes. This has been possible through the cooperation of the United States Savings and Loan League, the National Association of Building and Loan Supervisors, the Federal Home Loan Bank Board, the Bank presidents, the Examining Division, and the efforts of each individual association. Constructive steps have been taken to improve procedures and to reduce costs, without in any way impairing the purposes and results of the analysis. Continued cooperation of all the elements of the savings and loan industry should bring about even more efficient examinations and further reductions in cost. II7 SUMMARY OF RESIDENTIAL CONSTRUCTION AND HOME-FINANCING ACTIVITY I. Seasonally adjusted index of residential construction advanced 50 percent from October to November. A. Activity of the United States Housing Authority increased from 1,200 units in October to 8,500 in November. B. The decline of 7- and 2-family dwellings approximated the usual October-November pattern, but the total 17 percent more than November 1938. II, volume was The level of wholesale building material prices reached the highest point in two years, and dealers' prices as measured by the stand' ard house index increased approximately 1 percent. A. The cost of labor used in the standard house continued its gradual decline in evidence since March 1939. HI, The total volume of mortgages of $20,000 or less recorded during November dropped 2.4 percent from the previous month's level/ mutual savings banks and miscellaneous lenders were the only mortgagees to show increased activity. A. The savings and loan association total volume was below $100,000,000 for the first time since April. IV. The 8-percent, October-November decline of savings and loan association mortgage lending was favorable during this period. A. November mortgage loan volume was one-third higher than the same 1938 month. in view of previous drops V. The index of foreclosures in metropolitan communities rose 7.5 percent from the new post-depression low set in October. this, the index was almost 17 percent below November 1938. In spite of VI. The trends of the major business indexes continue to reflect improved conditions and it appears likely that 1939 ended with many of the economic units functioning at or near post-depression highs. RESIDENTIAL BUILDING ACTIVITY AND SELECTED INFLUENCING FACTORS 1926-100 600 1929 118 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 Federal Home Loan Bank Review RESIDENTIAL CONSTRUCTION and HOME-FINANCING ACTIVITY • RISING trends in home-building costs, which continued gradually in November, have not as yet had a depressing effect on the volume of new residential construction, although increases in average rentals during the past few months have not kept pace with this acceleration in costs. The residential building index rose 50 percent from October to November due principally to renewed activity on the part of the United States Housing Authority in granting loans and rental subsidies on new structures for the replacement of slum areas. Although construction of privately financed residences declined somewhat from October, this decline was not equal to that usually shown in November. Mortgages recorded by all types of lenders receded slightly in November, due principally to declines in lending operations of savings and loan associations and commercial banks. Mutual savings banks and miscellaneous mortgage lenders, which include mortgage companies, were the only groups to show rises in mortgage recordings from October. ESTIMATED Reduced volume of new lending was felt by savings and loan associations in practically all sections of the country during the month of November. For the country as a whole the decline from October was less than normal, but was distributed through each of the five purpose classifications. Loans for new home construction receded in line with the decrease in home-building activity for the October-to-November period. Foreclosure activity in metropolitan centers, after reaching a new low level in October, increased somewhat in November although still remaining well below any other month since the depression. This October-to-November rise is somewhat greater than that usually experienced. General Business Conditions • INDUSTRIAL activity during November may be characterized as a filling-in process whereby the sharp gains registered during September and NUMBER AND COST OF FAMILY DWELLING UNITS IN ALL CITIES OF 10,000 OR MORE POPULATION PROVIDED (Source: Federal Home Loon Bank Board. Compiled from residenfial building permits reported to U. S. Dept. of Labor) COST OF UNITS NUMBER OF UNITS PROVIDED 30 1 28 24 120 J28 uo 110 100 100 J24 1 " ^ 1936 | -J— 1 -/- T/ 20 H22 j20 18 ]l8 16 JI6 14 o 120 426 26 22 X 80 10 110 I 931-35 8 \ c \ 40 N 30 *•*«. • * 4 *~* --* •»• ^^. ^*«*i **« N 10 Div ision o F Research 8 Stoti; tics Fe deral Y<ome I.ocnB ank Be ord i EEC. JAN. FEB. MAR January 1940 APR. MAY JUN. JUL. AUG. SER OCT. NOV. DEC. w o r 40 30 4 2 2 Z o z A93Z-3 5 AV I 20 x 80 39 1 6 x m*. 50 2 70 y \ AV( 9. 8 ^~*— \-J / 90 1938 70 14 |l2 6 90 60 39 1 12 4 PROVIDED ••30 DEC. JAN. FEB. MAR. APR. MAY i JUN. JUL AUG. SEP. OCT. NOV. 20 10 I 0 DEC. II9 October were consolidated. The production index climbed to a new high for the current recovery period equal to 115 percent of the 1926 level, but the rate of increase was considerably less than the two previous months. Although there are normal seasonal declines in many industries towards the year-end, changes during the early part of December were relatively slight. In spite of the revival of industrial activity to the levels of 1937, and in many instances 1929, there has not been a comparable increase in factory employment. The indexes of factory employment and factory pay rolls were approximately 5 percent lower at the end of November than they were during the first half of 1937. On the other hand, income payments to individuals were almost equal to the 1937 average. This fact, coupled with the knowledge that commodity prices are now lower than two years ago, is evidence of the increased purchasing power of consumers. This has been reflected in improved retail sales which have about equaled the peak months of the 1936-1937 recovery. During November, retail sales advanced faster than the normal seasonal rate and were considerably above the same month of last year. Early reports indicate that the total volume of Christmas business exceeded that of 1938 by approximately 8 percent. [1926=100] T y p e of i n d e x Residential construction * Foreclosures ( m e t r o , cities) R e n t a l i n d e x ( N . I . C . B.) B u i l d i n g m a t e r i a l prices Industrial production l _ Manufacturing employment _ M a n u f a c t u r i n g p a y rolls Average wage per employee 1 Nov. 1939 Oct. 1939 Percent change 53.3 129.0 85.6 93.0 114.9 102.1 97.7 95.7 35.5 120.0 85.5 92.8 112.1 101.9 97.5 95.7 +50.1 +7.5 +0.1 +0.2 +2.5 +0.2 +0.2 0.0 Nov. 1938 35.5 155.0 85.3 89.2 95.4 91.8 81.0 88.2 Percent change +50.1 —16.8 +0.4 +4.3 +20.4 +11.2 +20.6 +8.5 Corrected for normal seasonal variation. There was little of significance in the changes of wholesale commodity prices during the month of November. The index of all commodities declined only three-tenths of 1 percentage point and the index of wholesale building material prices even less than that. The Bureau of Labor Statistics points out in a recent release that "although the trend of commodity prices has been downward since late September, the year's high point, the net decline has been only about 1 percent. From the low point of the year, the week ended August 19, the current index (December 16) shows a gain of 5% percent." Later information on the average wholesale price 120 of building materials reveals the fact that continued advances in paint materials and prepared roofing, reported during the week of December 23, carried this index to the highest point in two years: 93.6 percent of the 1926 average. Residential Construction [Tables 1 and 2] • PRIVATELY financed construction of residential dwellings continued to hold its own during November despite recent increases in building costs. Although such construction declined 7 percent from October, the movement is favorable when compared with the usual 15-percent seasonal recession. November residential construction was 50 percent above that for the corresponding month of 1938, due chiefly to the sharp increase in the volume of apartments, both Government- and private-financed, being built currently. However, 17 percent more homes of the 1- and 2-family types, which consist entirely of privately financed building, were built in November than in the same month of the preceding year. The slum-clearance program has now become one of the major factors in the construction field and its influence is felt in major cities in most sections of the country. In November large projects were started by the United States Housing Authority in Boston and Lowell, Massachusetts; Bridgeport, Connecticut; New York City; Peoria, Illinois; and Los Angeles, causing sharp rises in the areas in which these cities are located (Table 2, page 126). The U. S. Housing Authority placed over 8,500 dwelling units under construction in November in communities of 10,000 population or over, a sharp rise from the 1,200 reported in the preceding month. As all of these units have been classified as being in multifamily structures, they thus account for the greater part of the rise for this group as shown in Table 1, page 126. According to the United States Housing Authority, further acceleration in activity is anticipated in December. Foreclosures • FORECLOSURES on real estate in metropolitan communities rose 8 percent in November to reverse slightly the month-to-month decline which Federal Home Loan Bank Review has persisted since May. This increase, which brought the index from 120 (1926 = 100) for October to 129, was substantially more than the usual seasonal advance for this period, but can be attributed largely to the fact that October was unseasonally low. Only April showed a greater decline in foreclosures than November in relation to the corresponding months of 1938. In September this metropolitan index dropped below the average month of 1927 for the first time since the 1933 peak and has remained there through November. Of the 83 communities reporting for November, 40 showed decreases and 39 increases, while four indicated no change in foreclosure activity from October. Eleven-month totals show 1939 real estate foreclosure activity in these communities to be about 12 percent below the preceding year. Small-House Building Costs [Tables 3 and 6] • WHOLESALE building material costs showed a tendency to level off in the closing weeks of November, but reached a new 2-year high in the week ending December 23, according to the United States Department of Labor. The index for the month of November was fractionally above October, and more than 4 percent higher than November 1938. Increased costs from a year ago were greatest in lumber and paint classifications. Despite current rises in wholesale material prices, the index figure for November stood 4 percent below the peak level of May 1937. Dealers' cost of materials used in constructing the standard 6-room frame house rose nearly 1 percent in November, thus projecting the upward trend started in September. The materials used in this structure cost 4 percent more currently than during the average month of 1936. Labor rates used in compiling the index for the cost of building the standard house continued the fractional month-to-month decrease which has been in evidence since March 1939. However, labor costs are still 11 percent in excess of the 1936 average. A geographic analysis of those communities reporting in December (Table 3, page 128) reveals that during the preceding quarter total home-construction costs rose by at least $100 in 11 of the 29 reporting cities, while only two cities (Oshkosh, Wisconsin and Wichita, Kansas) reported declines of similar magnitude since September. January 1940 Construction costs for the standard house [Average month of 1936=100] Element of cost Nov. 1939 Oct. 1939 Percent change Nov. 1938 MaterialLabor 104 4 110. 8 103.6 111. 1 -fO.8 -0.3 103.2 112. 1 + 1.2 — 1. 2 106.5 106. 1 + 0.4 106. 1 + 0.4 Total.— Percent change Mortgage Recordings [Tables 13 and 14] • DURING November, the total volume of recordings amounted to $325,112,000, a decrease of 2.4 percent from the previous month. The substantial declines evidenced by savings and loan associations and banks and trust companies more than offset the sharp gains shown by mutual savings banks and miscellaneous lenders. After recording more than $100,000,000 of mortgages for six consecutive months, savings and loan associations showed a sharp decrease (6 percent) from the previous month, recording $98,889,000 of mortgages during November. As a result, these institutions suffered a further reduction in their portion of the total mortgage business, their volume decreasing from 32 percent of the October business to 30 percent in November. Although banks and trust companies showed a 5-percent decline from the previous month, their November recordings represented 25 percent of the month's business, leaving their share of the total financing activity Mortgage recordings by type of mortgagee [Amounts are shown in thousands of dollars] Type of lender PerPerCumucent lative cent recordchange of Nofrom vember ings (11 October amount months) Savings and loan associations -6.0 Insurance companies -0.8 Banks and trust companies -5.0 Mutual savings banks— + 12.4 Individuals. -3.2 Others _ __ - 6 . 1 Total -_ _ . -2.4 Percent of total recordings 30.4 $1, 072, 351 302, 524 8.7 31. 1 8.7 24.7 4.5 16. 1 15.6 843, 508 127, 259 598, 675 504, 737 24. 5 3.7 17. 4 14. 6 100.0 3, 449, 054 100. 0 unchanged from October. Miscellaneous lenders, consisting primarily of mortgage brokers and title companies, increased their share of the total business from 14 percent in October to 16 percent this month. Almost 1,250,000 nonfarm mortgages of $20,000 or less, amounting to more than $3,449,000,000, were recorded by all types of mortgagees during the first 11 months of 1939. Savings and loan associations accounted for 34 percent of the number and 31 percent of the dollar amount of these mortgages, while banks and trust companies contributed 21 percent of the number and 24 percent of the dollar amount. Due to the large size average loan recorded by insurance companies, these institutions accounted for 9 percent of the dollar volume but only 5 percent of the number of mortgages recorded. Savings and loan associations recorded the smallest average size mortgage of any type of mortgagee with the exception of individuals. TOTAL LOANS MADE BY ALL SAVINGS AND LOAN ASSOCIATIONS MILLIONS 1 UNITED STATES 1 BY TYPE OF ASSOCIATION ; 1 New Mortgage-Lending Activity of Savings and Loan Associations [Tables 4 and 5] MAR. JUN. SEP OEC. MAR JUN. SEP. DEC. 1936 1937 • THE October-to-November decline of $7,200,000, or 8 percent, in new mortgage-lending activity of savings and loan associations was much less than the usual seasonal drop. Corresponding decreases for this period during the past three years have been in excess of 12 percent. Greatest resistance to the November decline was shown by loans for refinancing and miscellaneous purposes, while reconditioning loans showed the largest percentage decrease. November loan volume ($86,000,000) was more than one-third higher than New mortgage loans distributed by purpose MAR JUN. 1938 SEP. DEC. MAR JUN. 1939 SEP. during the same 1938 month. This improvement over lending activity of a year ago was shared by all loan classes with the exception of reconditioning loans which receded slightly. Loans of nonmember savings and loan institutions dropped less from October than did loans of Federals or State members. Totals for the first 11 months of this year, however, show that Federals have made the greatest improvement (40 percent) in a comparison with the corresponding period of 1938. New mortgage loans of State-chartered members of the Bank System are up 18 percent, while nonmember loans have increased 5 percent. [Amounts are shown in thousands of dollars] Purpose Nov. 1939 Oct. 1939 Percent change Nov. 1938 Percent change Federal Savings and Loan Insurance Corporation [Tables 7 and 8] Construction Home purchase Refinancing Reconditioning Other purposes Total $26, 607 $29, 255 - 9 . 1 $18, 627 30, 434 33, 383 - 8 . 8 21, 205 15, 445 15, 835 - 2 . 5 12, 182 4,720 5,784 - 1 8 . 4 4,821 8,870 9,040 - 1 . 9 7,235 86, 076 93, 297 + 42.8 + 43.5 + 26.8 -2. 1 + 22.6 - 7 . 7 64, 070 + 34.3 • THE average share account of insured Federal savings and loan associations in November amounted to nearly $780, while accounts in Statechartered insured institutions averaged $715 (Tables 7 and 8, page 132). These averages emFederal Home Loan Bank Review phasize the important part played by insured savings and loan associations in providing a safe investment channel for the small saver. Approximately 2,350,000 accounts are insured by the Federal Savings and Loan Insurance Corporation currently, and practically all of these accounts are below $5,000 in amount. Insured associations operating under State charters, numbering 799 in November, had total assets amounting to over $923,000,000. Although the total number of institutions remained unchanged (one large association converting to Federal charter being replaced by a smaller institution which was newly insured), combined assets rose nearly $4,300,000 from October. A comparable group of insured State-chartered associations indicated a continuance of the recent excess of the demand for mortgage money over the supply of repurchasable funds. The net increase in mortgages on the books of these institutions during November amounted to $4,800,000 as compared with a rise of $3,700,000 in private capital. Federal Savings and Loan System [Table 7] • NEW investments by the United States Government in shares of Federal savings and loan associations were small in 1939, and in January and July fairly sizeable amounts of previously invested Treasury and Home Owners' Loan Corporation funds were repurchased by Federals. The net reduction of Government investment in these institutions since the close of 1938 has been $11,000,000. There were no new investments made by the Home Owners' Loan Corporation in shares of Progress in number and assets of Federalfsavings and loan associations Number Type of association Nov. 30, 1939 634 767 New Converted Total.- Oct. 31, 1939 Approximate assets Nov. 30, 1939 Oct. 31, 1939 634 $431, 104, 000 $423,311,000 760 1, 108, 119, 000 1, 090, 447, 000 1,401 1,394 1, 539, 223, 000 1, 513, 758, 000 January 1940 Federal savings and loan associations during October and November, while advances from the various Federal Home Loan Banks have been on the increase. The volume of repurchases of private capital was diminishing in anticipation of semiannual dividends as the fiscal period drew to a close. According to reports received from a comparable group of 1,349 Federals, new investment of capital in November showed a decline of $950,000, or 3 percent, from October as compared to a drop of $3,520,000, or 25 percent, in repurchases during the month. Federal Home Loan Bank System [Table 9] • ADVANCES outstanding of the Federal Home Loan Banks again showed an increase during November, although the increase was considerably less than the two previous months'. New advances made by the Banks during the month totaled $5,827,035, while repayments amounted to $5,659,170. This resulted in an increase of $167,865 over the October 31 balance of advances outstanding and brought the balance at the end of November up to $168,821,915. The volume of advances made by the Banks during November was considerably less than the October volume, although it was slightly greater than the volume made in November 1938. Repayments received during November were slightly greater than the volume received in October and also greater than during November 1938. Advances outstanding at the end of the 11 months of 1939 constituted approximately 89 percent of the average of monthly advances outstanding for the year 1938 ($189,700,000), which is less than one-tenth of 1 percentage point higher than the figure for October. Six of the Federal Home Loan Banks reported advances slightly greater than repayments during November, resulting in increases in their advances outstanding, while the remaining six (the four Eastern Banks and Topeka and Portland) reported reductions in their advances outstanding. The largest monetary and percentage increase occurred in the Los Angeles Bank in the amount of $362,000, or 2.4 percent, while the largest decline was experienced by the Winston-Salem Bank—$455,000, or 2.6 percent. Only four Banks made greater advances during the month than during the preceding month, and five Banks received less repayments. 123 During the month of November there were 11 withdrawals (four of these were mergers), one removal, and three admissions to membership in the Federal Home Loan Bank System, which resulted in bringing the total membership of the Bank System down to 3,929—a net reduction of nine members since October 31. Resolutions of the Board [RESOLUTION CONCERNING ELIGIBILITY EXAMINATIONS IN SUPPORT OF INSURANCE APPLICATIONS On December 8, the Board of Trustees of the Federal Savings and Loan Insurance Corporation adopted the following resolution relating to eligibility examinations: Whereas, at the Presidents' Conference held in April 1939, the recommendation was made that the Board require eligibility examinations in support of all applications for insurance of accounts, and Whereas, after consideration of this question the Review Committee recommends that routine eligibility examinations be required in all cases involving applications for insurance of accounts, and Whereas, the Board of Trustees has reviewed such recommendation, Be it resolved, That the recommendation of the Review Committee is hereby approved, and Be it further resolved, That the resolution adopted by the Board of Trustees on July 19, 1939, is hereby rescinded and revoked. AMENDMENT TO R U L E S AND REGULATIONS FOR FEDERAL SAVINGS AND LOAN SYSTEM, PROVIDING A BASIS FOR COMPUTING T H E AMOUNT O F REPURCHASES W H I C H T H E S E C R E T A R Y O F T H E T R E A S U R Y OR H O M E O W N E R S ' L O A N C O R P O R A T I O N MAY R E Q U E S T : A d o p t e d December 22, 1939; effective December 22, 1939. Section 203.8 of the Rules and Regulations for the Federal Savings and Loan System was amended by the Federal Home Loan Bank Board by the addition of the following new subsections: (e) Retirement of investments upon request by the Secretary of the Treasury or the Home Owners* Loan Corporation. The basis for computing the amount of repurchases which the Secretary of the Treasury or the Home Owners' Loan Corporation may at any time request shall be the original amount of separate investments made five years or more prior to the date of each such request, and the original amount of each such separate investment shall be included in the said basis until such time as the investment would have been fully retired had separate requests been made for the retirement of the investment and had the repurchases been applied accordingly. Repurchases shall be applied toward the retirement of the investment first made by the Secretary of the Treasury or the Home Owners' Loan Corporation and not previously retired. 124 (f) Return of receipt, certificate, or other evidence of investment. The receipt, certificate, or other evidence of investment by the Secretary of the Treasury or the Home Owners' Loan Corporation will be returned upon repurchase of the investment in full; partial repurchases will be evidenced by appropriate endorsement on the receipt, certificate, or other evidence of the investment. AMENDMENT TO RULES AND REGULATIONS FOR I N VESTMENT BY HOME OWNERS' LOAN CORPORATION IN SECURITIES OF SAVINGS AND LOAN ASSOCIATIONS, PROVIDING A BASIS FOR COMPUTING THE AMOUNT OF REPURCHASES WHICH THE HOME OWNERS' LOAN CORPORATION MAY REQUEST: Adopted December 22, 1939; effective December 22, 1939. The Board amended Section 58 of the Rules and Regulations for Investment by Home Owners' Loan Corporation in Securities of Savings and Loan Associations by adding at the end the following new subsections: (c) Retirement of investments upon request by the Home Owners' Loan Corporation. The basis for computing the amount of repurchases which the Home Owners' Loan Corporation may at any time request shall be the original amount of separate investments made five years or more prior to the date of each such request, and the original amount of each such separate investment shall be included in the said basis until such time as the investment would have been fully retired had separate requests been made for the retirement of the investment and had the repurchases been applied accordingly. Repurchases shall be applied toward the retirement of the investment first made by the Home Owners' Loan Corporation and not previously retired. (d) Return of receipt, certificate, or other evidence of investment. The receipt, certificate, or other evidence of investment by the Home Owners' Loan Corporation will be returned upon repurchase of the investment in full; partial repurchases will be evidenced by appropriate endorsement on the receipt, certificate, or other evidence of the investment, provided that a new certificate shall be issued for the unretired portion of each investment which is a creditor obligation. Directory of Member, Federal/ and Insured Institutions I. INSTITUTIONS ADMITTED TO MEMBERSHIP IN THE FEDERAL HOME LOAN BANK SYSTEM BETWEEN NOVEMBER 16 AND DECEMBER 15, 1939 DISTRICT NO. 2 N E W JERSEY: Elizabeth: City Building & Loan Association, 1160 East Jersey Street. D I S T R I C T NO. 3 PENNSYLVANIA: Philadelphia: Influential Building & Loan Association of the City of Philadelphia, 2359 East Susquehanna Avenue. Oxford Building Association, 1523 West Girard Avenue. Willow Grove: Willow Grove Building & Loan Association, 75 North York Road. Federal Home Loan Bank Review DISTRICT NO. 12 DISTRICT NO. 4 VIRGINIA: NEVADA: KENTUCKY: CANCELATIONS OF FEDERAL SAVINGS AND LOAN ASSOCIATION CHARTERS BETWEEN NOVEMBER 16 AND DECEMBER 15, Reno: Union Federal Savings & Loan Association, 150 North Virginia Street (converted from Union Building & Loan Association). Norfolk: Berkley Permanent Building & Loan Association, Incorporated, 231 West Berkley Avenue. D I S T R I C T NO. 5 Hopkinsville: Hopkinsville Building & Loan Association, First City Bank Building. 1939 OHIO: Hamilton: Butler Building & Loan Company, 11 South Front Street. CALIFORNIA: Los Angeles: Investment Federal Savings & Loan Association, 1037 South Broadway , (merger with Los Angeles Federal Savings & Loan Association). WITHDRAWALS FROM THE FEDERAL HOME LOAN BANK SYSTEM BETWEEN NOVEMBER 16 AND DECEMBER 15, 1939 ILLINOIS: Chicago Heights: Trencin Building & Loan Association, 194 East Twenty-fourth Street (voluntary liquidation). KANSAS: Herington: The Savings, Building & Loan Association, 14 East Main Street (voluntary withdrawal). III. INSTITUTIONS INSURED BY THE FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION BETWEEN NOVEMBER 16 AND DECEMBER 15, 1939 DISTRICT NO. 1 CONNECTICUT: Waterbury: Waterbury Building & Loan Association, Inc., 63 North Main Street. N E W JERSEY: Newark: Fulton Building & Loan Association, 11 Clinton Street (merger with, and transfer of Bank stock to, Lackawanna Building & Loan Association, East Orange, New Jersey). DISTRICT NO. 6 INDIANA: Greensburg: First Federal Savings & Loan Association of Greensburg, 212 North Franklin Street. PENNSYLVANIA: Carnegie: Own-A-Hom Building & Loan Association, 309 East Main Street (voluntary withdrawal). Philadelphia: William L. Degn Building & Loan Association, 1301 North Twentyninth Street (merger with Milestown Building & Loan Association, Philadelphia, Pennsylvania). Pittsburgh: Colonial Building & Loan Association of Pittsburgh, Pa., 1804 Carson Street (voluntary withdrawal). Twelfth Ward Premium & Loan Association of Allegheny City, 1808 East Street (voluntary liquidation). VIRGINIA: Blacksburg: Montgomery County Mutual Building & Loan Association, Inc., Farmers & Merchants Bank Building (removal from membership). WISCONSIN: Milwaukee: Advance Savings, Building & Loan Association, 828 North Broadway (voluntary withdrawal). Biltmore Building & Loan Association, 740 North Plankinton Avenue (voluntary withdrawal). II. FEDERAL SAVINGS AND LOAN ASSOCIATIONS CHARTERED BETWEEN NOVEMBER 16 AND DECEMBER 15, 1939 D I S T R I C T NO. 2 N E W JERSEY: Westfield: Westfield Federal Savings & Loan Association, 30 East Broad Street (converted from Westfield-Home Building & Loan Association). DISTRICT NO. 3 PENNSYLVANIA: Philadelphia: Girard Federal Savings & Loan Association, 6740 Sprague Street (converted from Germania Building & Loan Association). Pittsburgh: Eagle Number Two Federal Savings & Loan Association, 4625 Liberty Avenue (converted from Eagle Building & Loan Association Number Two of Pittsburgh). Friendship Federal Savings & Loan Association of Pittsburgh, 4625 Liberty Avenue (converted from Friendship Building & Loan Association). New Century Federal Savings & Loan Association of Pittsburgh, 4625 Liberty Avenue (converted from New Century Building & Loan Association of Pittsburgh). Safe Investment Federal Savings & Loan Association of Pittsburgh, 1312 Beaver Avenue (converted from Safe Investment Building & Loan Association). W E S T VIRGINIA: Beckley: Beckley Federal Savings & Loan Association (new association). DISTRICT NO. 7 ILLINOIS: Aurora: Aurora Building & Loan Association, 34 South River Street. Announcement of the Election of Federal Home Loan Bank Directors • THE Federal Home Loan Bank Board announces the election of the following Directors of the 12 Federal Home Loan Banks. Terms of office for these Directors will be two years, beginning January 1, 1940, unless otherwise noted. (Asterisk (*) denotes reelected Directors.) The designation of Chairmen and Vice Chairmen and the appointment of Public Interest Directors will be announced at a later date. DISTRICT NO. 1: FEDERAL HOME LOAN BANK OF BOSTON Class A Director: Edward H. Weeks, Old Colony Co-operative Bank, Providence, Rhode Island.* Class B Director: Reuben A. Cooke, Burlington Federal Savings and Loan Association, Burlington, Vermont.* Class C Director: Sumner W. Johnson, Homestead Loan and Building Association, Portland, Maine.* Director-at-Large: Philip A. Damon, Pittsfield Co-operative Bank, Pittsfield, Massachusetts.* DISTRICT NO. 2: FEDERAL HOME LOAN BANK OF NEW YORK DISTRICT NO. 4 NORTH CAROLINA: Conover: First Federal Savings & Loan Association of Conover (converted from Peoples Building & Loan Association of Conover). Mount Airy: Workmen's Federal Savings & Loan Association, 111 North Main Street (converted from Workmen's Building & Loan Association of Mount Airy, North Carolina, Inc.). DISTRICT NO. 6 INDIANA: Greensburg: First Federal Savings & Loan Association of Greensburg, 212 North Franklin Street (converted from Workingmen's Building & Loan Association of Greensburgh, Indiana). January 1940 Class A Director: John Eden Farwell, Geneva Federal Savings and Loan Association, Geneva, New York.* Class B Director: Harry J. Stevens, Trustworthy Building and Loan Association, Newark, New Jersey.* Class C Director: Francis V. D. Lloyd, Park Building and Loan Association, Ridgefield Park, New Jersey.* Director-at-Large: LeGrand W. Pellett, The Building and Loan Association of Newburgh, Newburgh, New York.* (Continued on p. 185) I25 Table 1.—Number and estimated cost of new family dwelling units provided in all cities of 10,000 population or over in the United 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] Number of family units provided January-November totals Monthly totals Type of dwelling Nov. 1939 1-family dwellings 2-family dwellings Joint home and business 2 3-and-more family dwellings Oct. 1939 Total cost of units Nov. 1938 1939 1938 January-November totals Monthly totals Nov. 1939 13, 439 15, 478 11,479 150, 706 118, 128$53, 782 10, 600 9,740 2, 980 964 859 85 57 743 53 12, 981 4,905 5,998 102, 508 70, 415 40, Nov. 1938 Oct. 1939 1939 1938 519. 7 $61, 450. 1 $46, 017. 7 $592, 115. 1 $464, 904. 1 326. 6 2, 573. 4 1, 948. 3 26, 933. 3 25, 100. 0 3, 022. 1 189.2 385.7 3, 308. 5 230.8 898. 9 16, 033. 2 19, 088. 3 335, 559. 4 228, 410. 9 27, 441 21, 448 18, 312 264, 557 199, 142 96, 976. 0 80, 442. 4 67, 243. 5 957, 916. 3 721, 437. 1 \ 1 Estimate is based on reports from communities having approximately 95 percent of the population of all cities with population of 10,000 or over. 2 Includes 1- and 2-family dwellings with business property attached. Total residential Table 2.—Number and estimated cost of new family dwelling units provided in all cities of 10,000 population or over, in November 1939, by Federal Home Loan Bank District and by State [Source: Federal Home Loan Bank Board. Compiled from residential building permits reported to U. S. Department of Labor] [Amounts are shown in thousands of dollars] All residential dwellings Number of family dwelling units Federal Home Loan Bank District and State Nov. 1939 27, 441 UNITED STATES__ Nov. 1938 All 1- and 2-family dwellings Estimated cost Nov. 1939 Nov. 1938 Number of family dwelling units Nov. 1939 18, 312 $96, 976. 0 $67, 243. 2 14, 460 Nov. 1938 Estimated cost Nov. 1939 Nov. 1938 12, 314 $56, 077. 1 $48, 155. 2 3,795 618 13, 735. 9 2, 782. 0 845 541 3, 954. 7 2, 482. 8 1,391 36 2,187 41 135 5 152 42 317 27 74 6 4, 583. 4 119.8 8, 291. 9 151.9 550.2 38.7 694.7 151.5 1, 534. 8 76.9 299.4 24. 7 194 36 440 35 135 5 152 35 247 27 74 6 967.5 119.8 2, 136. 6 141.9 550.2 38.7 694.7 135. 1 1, 252. 0 76.9 299.4 24.7 6,347 5,625 22, 515. 1 20, 682. 8 1,315 1,618 5, 909. 7 6, 962. 9 776 5,571 319 5,306 3, 398. 1 19, 117. 0 1, 375. 8 19, 307. 0 350 965 245 1,373 1, 718. 1 4, 191. 6 1, 142. 6 5, 820. 3 No. 3—Pittsburgh 1,350 731 5, 620. 5 3, 333. 4 760 660 3, 645. 1 3, 052. 8 Delaware Pennsylvania. West Virginia 6 1,250 94 4 640 87 29.8 5, 237. 9 352.8 16.0 3, 029. 9 287.5 6 668 86 4 569 87 29.8 3, 282. 5 332.8 16. 0 2, 749. 3 287. 5 No. 1—Boston Connecticut Maine_ _ Massachusetts. New Hampshire Rhode Island Vermont- _ No. 2—New York New Jersey New York 126 _ __ Federal Home Loan Bank Review Table 2.—Number and estimated cost of new family dwellins units provided in all cities of 10,000 population or over, in November 1939, by Federal Home Loan Bank District and by State—Contd. [Amounts are shown in thousands of dollars] All 1- and 2-family dwellings All residential dwellings N u m b e r of family dwelling units Federal H o m e Loan B a n k District and S t a t e No, 4—Winston-Salem Alabama _ District of Columbia Florida Georgia. _ Maryland.N o r t h Carolina South Carolina Virginia __ __ _ _ N o . 5—Cincinnati Kentucky Ohio Tennessee __ ___ N o . 6—Indianapolis __ E s t i m a t e d cost N u m b e r of family dwelling units E s t i m a t e d cost Nov. 1939 Nov. 1938 Nov. 1939 Nov. 1938 $6, 284. 0 2,005 1,525 $6, 519. 2 $5, 023. 8 223. 1 1, 937. 4 1, 396. 6 376.0 697.7 512.9 479.5 660.8 143 214 614 227 266 278 117 146 113 154 393 162 198 229 107 169 261.5 1, 263. 7 2, 107. 8 372.4 898.6 776.6 261.3 577.3 223. 1 916.9 1, 396. 9 368.5 687.7 500. 1 272. 0 658. 6 5, 119. 4 3, 429. 1 864 593 3, 851. 5 2, 741. 3 298.6 4, 487. 9 332.9 228.3 2, 457. 6 743.2 99 626 139 73 416 104 295. 1 3, 223. 5 332. 9 228.3 2, 177. 2 335. 8 6, 828. 1 6, 260. 1 1,459 1,304 6, 623. 6 1 6, 177. 1 294 1,165 232 1,072 1, 145. 1 5, 478. 5 874. 7 5, 302. 4 Nov. 1939 Nov. 1938 3,536 2 , 0 7 0 $10, 757. 1 152 300 802 585 266 774 365 292 113 602 393 166 202 245 176 173 315.0 1, 438. 2 2, 559. 9 1, 446. 7 898. 6 2, 082. 0 995.8 1, 020. 9 1,276 790 103 1,034 139 73 504 213 1,503 1,321 N o v . 1939 N o v . 1938 236 1,085 1, 349. 6 5, 478. 5 1,902 661 7, 886. 4 3, 462. 6 787 642 4, 143. 8 3, 391. 7 1,605 297 454 207 6, 627. 0 1, 259. 4 2, 599. 2 863.4 499 288 448 194 2, 901. 9 1, 241. 9 2, 545. 2 846. 5 850 933 3, 318. 0 3, 452. 6 826 609 3, 241. 6 2, 473. 7 233 350 205 23 39 151 521 220 14 27 844.7 1, 585. 0 710.7 82.6 95.0 602. 1 1, 958. 2 780.0 43.5 68.8 233 342 189 23 39 151 229 188 14 27 844.7 1, 562. 6 656.7 82.6 95.0 602. 1 1, 052. 3 707.0 43. 5 68.8 _ 1,916 1,679 5, 124. 8 4, 583. 8 1,698 1,512 4, 493. 0 4, 198. 4 Arkansas _ Louisiana Mississippi. _ _ _ N e w Mexico. _ _ _ _ Texas _ _ 66 206 320 28 1,296 58 184 156 40 1,241 236.0 517.7 812.6 87.3 3, 471. 2 146. 1 510.8 278.6 132.5 3, 515. 8 58 202 170 28 1, 240 50 180 137 40 1,105 211. 0 508.7 345.7 87.3 1 3, 340. 3 138. 498. 261. 132. 3, 167. __ ___ 571 456 1, 859. 4 1, 377. 5 561 428 1, 835. 4 164 103 96 198 94 93 43 198 567.8 267.4 383.4 616.8 Indiana Michigan 338 1,165 N o . 7—Chicago. Illinois Wisconsin _ N o . 8—Des Moines _ Iowa Minnesota Missouri North Dakota South D a k o t a __ _ _ __ _ N o . 9—Little Rock _ N o . 10—Topeka Colorado. _ Kansas Nebraska Oklahoma. ._ __ ___ No. 11—Portland.. _ Idaho _ _ Montana.. Oregon Utah Washington Wyoming _ ___ ___ _ _ _ __ __ _ N o . 12—Los Angeles Arizona California. Nevada. January 1940 _ _ __ . _ 885.7 5, 374. 4 ! 5 8 1 5 5 1, 354. 1 171 103 99 198 111 96 47 202 583.8 267.4 391.4 616. 8 334.2 268.2 153. 1 622. 0 782 357 2, 630. 7 1, 273. 1 696 338 2, 464. 7 1, 229. 1 47 54 204 130 335 12 12 21 83 76 153 12 178.6 142. 1 699.4 409.8 1, 150. 0 50.8 48. 1 49. 5 322.5 272.2 525.5 55.3 47 54 151 119 313 12 12 21 77 71 145 12 178.6 142. 1 582.5 399.8 1,110.9 50. 8 48. 49. 311. 255. 509. 55. 3,613 3,071 11, 580. 6 10, 322. 2 2,644 2,544 9, 394. 8 9, 067. 5 62 3,527 24 66 2,983 22 197.6 11,279.5 103.5 232. 5 997.5 92.2 58 2,562 24 45 2,477 22 194. 1 9, 097. 2 103.5 174. 0 8, 801. 3 92. 2 323. 264. 151. 614. 7 8 1 5 1 5 5 2 5 3 127 Table 3.—Cost of building the same standard house in representative cities in specific months1 NOTE.—These figures are subject to correction [Source: Federal Home Loan Bank Board] Total cost Cubic-foot cost Federal Home Loan Bank District and city- No. 1—Boston: Hartford, Conn New Haven, Conn_ Portland, Me Bostoa, Mass__ ._ Manchester, N. H_ Providence, R. I Rutland, Vt 1939 1939 Dec. 1938 Dec. Dec. Sept. June Mar. 1938 Dec. 1937 Dec. $6. 076 5; 832 5,708 6,601 5,601 6,000 5,846 $0. 246 . 241 .218 .268 .224 .250 .220 $0. 245 .234 .219 .266 .231 .246 .228 $5, 903 5,793 5,242 6,428 5,381 6,007 5,272 $5, 836 5,673 5,254 6,336 5,332 5,949 5,354 $5, 842 5, 597 5, 294 6,286 5,427 5,996 5,427 $5, 865 5,629 5,264 6, 377 5,507 5,938 5,472 $5, 877 5,617 5,259 6,384 5,554 5,893 5,472 No. 4—Winston-Salem: Birmingham, Ala Washington, D . C __ Tampa, Fla West Palm Beach, Fla Atlanta, Ga_ Baltimore, Md Cumberland, Md__ Asheville, N. C Raleigh, N. C _ _ _~ Salisbury, N. C Columbia, S. C_ _ Richmond, Va___ __ Roanoke, Va_ .216 . 239 .238 .239 .205 .211 .228 .213 .216 .203 . 195 .206 .225 .236 . 244 .230 . 243 .209 .205 . 227 .211 .220 . 198 .204 .212 . 221 5, 190 5,738 5,709 5,740 4,926 5,074 5,477 5,115 5,176 4,881 4,673 4, 953 5,404 5, 150 5,737 5,579 5,703 4,792 4,970 5,477 4,855 4,853 4,645 4,721 4,982 5,367 5,310 5,655 5,576 5,795 4,822 5,009 5,539 4,872 4,952 4,670 4,783 4,936 5,363 5,663 5,813 5,535 5,788 4,876 4,916 5,529 5,085 5,251 4, 719 4,838 5,080 5,355 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 6,068 6,019 5,578 6,393 5,267 5,171 5, 643 . 5,410 5,515 4,714 4,860 5, 370 5,198 No. 7—Chicago: Chicago, 111 Peoria, 111 Springfield, 111 Milwaukee, Wis-_ Oshkosh, Wis .283 .288 .295 .252 .240 .285 .268 .284 .240 .246 6,789 6,909 7,073 6,040 5,770 6,768 6,639 6,778 5,943 5,905 6,846 6,556 6,789 5,990 5,921 6,829 6,441 6,812 5,974 5,874 6,838 6,441 6,811 5,752 5,898 7,226 6,705 . 259 . 246 .253 .250 .268 .249 .238 .245 6,221 5,909 6,079 6,000 6,276 6, 066 5,942 5,893 6,376 6,021 5,778 5,860 6,353 6,087 5,787 5,883 6,431 5,964 5,717 5,875 6,625 _ _.. _ _ __ _ __ _ __ No. 10—Topeka: Denver, Colo Wichita, Kans Omaha, Nebr__ _ Oklahoma City, Okla __ 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; three bedrooms and bath on second floor. Exterior is wide-board siding with brick and stucco as features of design. Best quality materials arid 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 three months from the same dealers, and current wage rates are obtained from the same reputable contractors and operative builders. 128 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 Bonk Board. Compiled from Building Permits reported to US. Deportment of Labor. FEDERAL HOME LOAN BANK 1 DISTRICT I BOSTON DISTRICTS DISTRICT 4 WINSTON SALEMl DISTRICT 3 PITTSBURGH DISTRICT 2 NEW YORK 1939-^ r 1 1 IB (938 *-l939 rrfijHIn^ i J; s : a ~tP rn - 1931-35 AVG.-3 s-1931-35 AVG. ~iC tJ 1. APR. MAY J I M JUL. AUG. SEP. OCT * AUG. SEP OCT. JAN. FEB. MAR. APR. MAY JUN. NOV. DEC. JUL. AUG. SEP. OCT. NOV. OEC. 1 DISTRICT 5 CINCINNATI DISTRICT 8 DES MOINES r^i jTrtn=] /938-> f 1931 -35 AVG. r ] i «.__1 1 JAN. , ? OCT NOV. DEC. FEB. MAR. APR. MAY JUN. J DISTRICT 9 LITTLE ROCK K m ^ ~ / 9 3 / - 3 5 AVG. -A J93/-35 AVG. JUN. JUL. AUG. SEP AUG. SEP OCT. NOV. DEC. L F t a MAR. APR k OCT. NOV. DEC. .. AUG. SEA OCT. NOV. DEC. UNITE[ > STATES AVERAGE 1930-1939 40 60 30 20 50 10 Cft V-^lr.m 7 r ^ ° z 1930 F^ |r 1931 1932 1933 1934 3 r _ Jr ^ 0 r ^~ J ~~ January 1940 J T—J ~^; 1935 1936 1937 -j—yuLr (938 1939 s ^ 1 A^. r EXCLUDING NEW YORK C I T Y - J * | _ r| u~HL Jn_n_ ,-1—1 p r " 1 Lr ^ " •—• •—» 1 - 1 DIVISION Of RESEARCH AND STATISTICS FEDERAL NOME LOAN BANK BOARD 1 1 1 1 1 L_J I SEP 1 i ' OEC. —1—1—1 I 1 1 1 1 1 t 1 1 1 1 1 1 1 L 1,...,!._..!,..!,. 129 Table 4.—Estimated volume of new lending activity of savings and loan associations, classified by District and type of association [Amounts are shown in thousands of dollars] Federal Home Loan Bank District and type of association New loans November 1939 October 1939 Percent Percent change, New loans, change, October November November 1939 to 1938 to 1938 November November 1939 1939 1939 1938 Cumulative new loans (11 months) Percent change United States: Total Federal State member.. Nonmember $86, 076 34, 785 34, 671 16, 620 $93, 297 37, 854 37, 847 17, 596 -7.7 -8. 1 -8.4 -5.5 $64, 070 24, 220 26, 115 13, 735 + 34.3 +43. 6 + 32.8 + 21.0 $903, 271 366, 284 362, 832 174, 155 $734, 062 261, 880 306, 966 165, 216 + 23. 1 + 39.9 + 18.2 + 5.4 District No. 1: Total _ Federal State member. _ Nonmember 8,858 2,785 4,633 1,440 9,496 2, 882 4,911 1,703 -6.7 -3.4 -5.7 -15.4 6,243 1,772 2,799 1,672 + 41.9 + 57.2 + 65.5 -13.9 82, 722 25, 719 39, 950 17, 053 69, 133 19, 164 33, 209 16, 760 + 19.7 + 34.2 + 20.3 + 1.7 District No. 2: Total. Federal State member. _ Nonmember 8,538 3,028 2,128 3,382 9, 400 3,628 2,225 3,547 -9.2 -16.5 -4.4 -4.7 6,351 2,417 1,609 2,325 + 34.4 + 25.3 + 32.3 +45.5 88, 517 34, 314 20, 768 33, 435 71, 20, 18, 32, + 24.0 + 65.9 + 13.5 +3.1 District No. 3: Total Federal State member. _ Nonmember 6,406 2,164 1,506 2,736 7,551 2,599 2,119 2,833 -15.2 -18.9 -28.9 -3.4 5,117 1,090 1,348 2,679 + 25.2 + 98.5 + 11.7 + 2.1 73, 209 20, 586 19, 058 33, 565 57, 518 11, 652 16, 450 29, 416 District No. 4: Total Federal State member. _ Nonmember 12, 459 5,133 5,212 2,114 14, 766 6,159 6,376 2,231 -15.6 -16.7 -18.3 -5.2 8,980 3,213 4,546 1,221 + + + + 38.7 59.8 14.7 73. 1 125, 746 51, 896 53, 874 19, 976 102, 35, 48, 18, 142 623 233 286 + 23. 1 +45.7 + 11.7 +9.2 District No. 5: Total. _ Federal State member.. Nonmember 14, 686 5,425 6,912 2,349 14, 980 5,835 7,044 2,101 -2.0 -7.0 -1.9 + 11.8 9,335 3,674 4,350 1,311 + + + + 57.3 47. 7£ 58. 9"* 79. 2* 143, 843 57, 400 68, 673 17, 770 112,404 43, 514 50, 997 17, 893 + 28. 0 + 31.9 +34.7 -0.7 District No. 6: Total . _ Federal State member. _ Nonmember 4,407 2,176 1,967 264 4,663 2,165 2,170 328 3,060 1,634 1,168 258 + 44.0 + 33.2 + 68.4 + 2.3 44, 118 20, 611 20,406 3, 101 32, 422 15, 131 14, 591 2,700 + + + + 36. 1 36.2 39.9 14.9 District No. 7: Total Federal State member.. Nonmember 8,426 3,057 4,066 1,303 8,886 3,132 4,225 1,529 -5.5 + 0.5 -9.4 -19.5 -5.2 -2.4 -3.8 -14.8 6,597 2,056 2,564 1,977 + 27.7 + 48.7 + 58.6 -34.1 90, 474 31, 215 40, 237 19, 022 72, 24, 31, 17, 690 249 289 152 + + + + 24. 5 28.7 28.6 10.9 District No. 8: Total Federal. State member.. Nonmember 5, 173 2,487 1,585 1,101 5,601 2; 676 i;526 1,399 -7.6 -7. 1 + 3.9 -21.3 3,849 1,665 1,394 790 + + + + 34.4 49.4 13.7 39.4 55, 914 26, 475 16, 786 12, 653 44, 513 18, 391 14, 904 11,218 + + + + 25. 6 44.0 12.6 12.8 District No. 9: Total Federal State member. _ Nonmember 4,215 1, 815 2, 286 114 4,745 1,798 2,758 189 -11.2 + 0.9 -17.1 -39.7 3,958 1,626 2,109 223 + 6.5 + 11.6 + 8.4 -48.9 52, 657 21, 365 29, 365 1,927 44, 568 17, 223 25, 230 2, 115 + 18. 1 + 24.0 + 16.4 -8.9 District No. 10: Total i Federal State member. 1 Nonmember. . 3, 733 1,843 843 1, 047 4,116 1,960 1,080 1,076 -9.3 -6.0 -21.9 -2.7 3,276 1,465 949 862 + 13.9 + 25.8 -11.2 + 21.5 43, 379 21, 339 11, 200 10, 840 37, 389 16, 323 11, 274 9,792 + 16.0 + 30.7 -0.7 + 10.7 District No. 11: Total 1 Federal State member, Nonmember. . 3, 089 1,666 1, 103 320 ! 3,286 1,908 1,115 263 -6.0 -12.7 -1. 1 + 21.7 2,024 1,067 733 224 + + + + 52.6 56. 1 50.5 42.9 32, 166 19, 019 11, 242 1,905 25, 816 14, 222 8,878 2,716 + 24.6 + 33.7 + 26. 6 -29. 9 District No. 12: Total Federal State member. Nonmember. _ 6, 086 3, 206 2, 430 450 5,807 3,112 2,298 397 + 4.8 + 3.0 + 5.7 + 13.4 5,280 2,541 2, 546 193 + 15.3 + 26.2 -4.6 + 133.2 70, 526 36, 345 31, 273 2,908 64, 069 25, 709 33, 611 4,749 + 10. 1 + 41.4 -7.0 -38.8 130 398 679 300 419 + + + + 27. 3 76.7 15.9 14. 1 Federal Home Loan Bank Review Table 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] Purpose of loans Type of association Mortgage loans on homes Period Construc- Home pur- Refinanction ing chase Reconditioning Total loans Loans for all other purposes State members Nonmembers $379, 286 $210, 015 287, 240 20, 829 354, 764 27, 113 194, 479 16, 561 Federals $234,102 $326, 629 $180, 804 $62, 143 218, 821 17, 447 306, 462 22, 697 168, 127 12, 671 57, 968 4,796 836, 483 85, 105 6, 892 | 1 64,503 220, 458 265, 485 160, 167 58, 623 93,263 797,996 1 286,899 333, 470 177, 627 201, 306 18, 627 19, 152 244, 659 21, 205 20, 826 147, 362 12, 182 12, 805 54, 598 4,821 4,025 86,137 7,235 7, 126 734,062 64,070 63,934 261, 880 24, 220 25, 019 306, 966 26, 115 26, 504 165, 216 13, 735 12, 411 Jan.—No v 274, 116 311, 850 167, 024 55, 128 95, 153 903,271 366, 284 362, 832 174, 155 January February March April May June Julv August September October November 16, 099 16, 027 21, 254 23, 727 26, 646 29, 919 26, 865 29, 863 27, 854 29, 255 26, 607 17, 503 19, 118 24, 705 29, 903 31, 289 32, 228 29, 638 32, 282 31, 367 33, 383 30, 434 11, 749 12, 551 14, 871 15, 384 15, 687 17, 123 15, 353 17, 005 16, 021 15, 835 15, 445 3, 389 3,593 4,211 4,974 6,069 5,802 5,133 5,909 5,544 5,784 4,720 6, 827 7, 020 8, 337 9,437 9,432 9,082 8, 183 9,979 8, 946 9, 040 8, 870 20, 894 22, 298 29, 811 33, 400 36, 358 39, 094 34, 055 40, 645 37, 090 37, 854 34, 785 23, 071 24, 191 30, 124 32, 562 35, 426 36, 465 34, 146 37, 340 36, 989 37, 847 34, 671 11, 602 11, 820 13, 443 17, 463 17, 339 18, 595 16, 971 17, 053 15, 653 17, 596 16, 620 1937 Jan.—No v November 1938 - Jan .—Nov November December $92,901 1 $896, 579 1 $307,278 1939 55, 567 58,309 73,378 83,425 89, 123 i 94, 154 1 85, 172 95,038 ! 89,732 i 93, 297 86, 076 Table 6.—Index of wholesale price of building materials in the United States [1926=100] [Source: U. S. Department of Labor] Period All build- Brick and ing matile terials Cement l Lumber Paint and Plumbing Structural paint ma- and heatsteel ing terials Other 1937: November 93.7 92.9 88.8 94 8 81.5 79.6 114.9 98.7 1938: November December 89.2 89.4 91.5 91.5 90. 6 90.6 90.2 90.9 80.9 81.0 78.7 78.7 107.3 107.3 89.7 89.7 1939: January February March April May June July August September October November 89.5 89.6 89.8 89.6 89.5 89.5 89.7 89.6 90.9 92.8 93.0 92.4 92. 4 92.5 93.0 91.7 91. 1 90.6 90.5 91.0 91.5 91.6 90.6 91.2 91.5 91.5 91.5 91.5 91.5 91.3 91.3 91.3 91.3 91.7 92.6 92. 1 91.5 91.2 90.7 91.8 91.8 93.7 98.0 98.3 81.0 80.5 81.5 81.3 81.6 82.4 82.2 82. 1 84.7 85.7 84 9 78.7 79.2 79.3 79.3 79.3 79.3 79.3 79.3 79.3 79.3 79.3 107.3 107.3 107.3 107.3 107.3 107.3 107.3 107.3 107.3 107.3 107.3 89.6 89.3 89.8 89.7 89.6 89.5 89.6 89.5 90.3 91.9 92.9 + 0. 2 % + 4 3% +0. 1%, + 0. 1% 0. 0% +0. 8% + 0. 3 % + 9. 0% -0. 9% + 4. 9% 0.0% Change: Nov. 1939-Oct. 1939. Nov. 1939-Nov. 1938 o. o%, + 1. 1% + 3. 6% +o.8%; 0. 0% Based on delivered prices at 48 cities and introduced into the calculation of the Bureau's general indexes of wholesale prices beginning with March 1939. 1 January 1940 131 Table 7.—Monthly operations of 1/349 identical Federal and 717 identical insured State-chartered savings and loan associations reporting during October and November 1939 [Amounts are shown in thousands of dollars] 1,349 Federals Type of operation 1 2 Change October to November October Change October to November November October 1, 347, 161 $1, 041, 746. 6 Percent 4-0.7 + 1.5 918, 445 $656, 869. 6 917, 194 $653, 129. 8 Percent +0.1 + 0.6 202, 597. 0 1, 244, 343. 6 27, 690. 1 14, 264. 6 0.0 + 1.3 -3. 4 -24.7 i 39, 683. 2 696, 552. 8 12, 058. 1 8, 143. 6 i 39, 688. 2 692, 818. 0 12, 493. 7 11, 669. 0 +0.5 -3.5 — 30. 2 13, 882. 9 12, 042. 3 6, 514. 9 1, 844. 7 2, 543. 9 36, 828. 7 -4.6 -14. 2 -6.2 -2.8 -1.8 -7.7 4, 602. 2 4, 795. 7 2, 476. 7 715.0 1, 596. 0 14, 185. 6 5, 240. 2 5, 225. 6 2, 674. 4 894. 1 1, 590. 1 15, 624. 4 -12. 2 -8. 2 -7.4 -20.0 + 0.4 -9.2 1, 205, 951. 9 + 1.4 634, 908. 1 630, 142. 8 + 0. 8 90, 477. 4 3, 822. 0 94, 299. 4 1, 483, 814. 3 + + + + 33, 703. 1 3, 283. 8 36, 986. 9 872, 427. 0 33, 862. 4 3, 156. 8 37, 019. 2 866, 845. 7 -0.5 + 4.0 -0. 1 + 0.6 November Share liability at end of month: 1, 356, 713 Private share accounts (number) Paid on private subscriptions $1, 057, 493. 0 Treasury and H. 0 . L. C. subscrip202, 597. 0 tions _ Total 1, 260, 090. 0 26, 739. 0 Private share investments during month-_ Repurchases during month 10, 740. 7 Mortgage loans made during month: 13, 238. 4 a. New construction b. Purchase of homes 10, 332. 6 c. Refinancing 6, 112. 8 d. Reconditioning __ 1, 793. 6 2, 497. 1 e. Other purposes Total __. ._ 33, 974. 5 Mortgage loans outstanding end of month _ 1, 223, 297. 9 Borrowed money as of end of month: 91, 363. 2 From Federal Home Loan Banks 3, 897. 8 From other sources Total 95, 261. 0 Total assets, end of month 1, 503, 609. 8 717 insured State members 1.0 2.0 1.0 1.3 Includes only H. O. L. C. subscriptions. Less than 0.1 percent. Table 8.—Institutions insured by the Federal Savings and Loan Insurance Corporation1 [Amounts are shown in thousands of dollars] Cumulative number at specified dates Type of association Number of private investors in repurchasable shares 2 Dec. 31, Dec. 31, Dec. 31, Dec. 31, Oct. 31, Nov. 30, Nov. 30, 1936 1937 1939 1939 1935 1938 1939 State-chartered associations Converted F. S. and L. A New F. S. and L. A Total __. 136 406 572 382 560 634 566 672 641 1,114 1, 576 1, 879 3 737 723 637 2,097 Assets Private repurchasable capital Nov. 30, 1939 Nov. 30, 1939 799 755 634 799 966, 500 $923, 143 5 756 1, 011, 200 1, 104, 791 634 431, 104 373, 600 $691, 115 813, 182 264, 736 2,188 2,189 2, 351, 300 2, 459, 038 1, 769, 033 4 1 Beginning Dec. 31, 1936, figures on number of associations insured include only those associations which have remitted premiums. Earlier figures include all associations approved by the Board for insurance. 2 This series revised to agree with schedules submitted each month by insured institutions. Private investors in repurchasable 3shares in insured State-chartered members numbered 931,600 in June 1939; no other association type revised. In addition, 6 Federals with assets of $1,505,000 had been approved for conversion but had not been insured as of Dec. 31. 4 In addition, 5 Federals with assets of $834,000 had been approved for conversion but had not been insured as of Oct. 31. 5 In addition, 11 Federals with assets of $3,328,000 had been approved for conversion but had not been insured as of Nov. 30. 132 Federal Home Loan Bank Review Table 9.—Lending operations of^the Federal Home Loan Banks [Amounts are shown in thousands of dollars] [Thousands of dollars] November 1939 Federal Home Loan Bank 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. Table 10.—Government investments in savings and loan associations 1 Advances outstanding at the Ad- Repay- Ad- Repay- end of vances ments vances ments the month $394 738 596 872 687 188 664 391 338 48 120 791 $541 1,015 701 1,327 465 138 339 72 306 165 161 429 $558 2,377 938 1,873 407 753 584 655 298 227 259 676 5,827 5,659 9,605 1939 _. 76, 057 106, 077 1938— 5,247 4,779 1938. _. 66, 963 77, 370 1937___ 7,001 3,707 1937.-_ 105, 660 63, 726 $77 770 568 674 400 120 808 190 177 183 208 463 $6, 617 18, 886 16, 283 16, 800 17, 760 10, 047 25, 450 16, 813 8,966 10, 368 5,350 15, 482 4,638 168, 822 Type of operation Federals 2 Oct. 1935-Nov. 1939: Applications: Number Amount Investments: Number Amount Repurchases Net outstanding investments Table 11.—Reconditioning Division—Summary of all reconditioning operations of H . O . L. C. through Nov. 30, 1939 x Type of operation June 1, 1934 through Oct. 31, 1939 Cumulative through Nov. 30, 1939 Cases received 2 1, 113, 219 1, 105, 518 7,701 Contracts awarded: 712, 478 Number 5, 773| 718, 251 $143, 027, 148 $1, 433, 235 $144, 460, 383 Amount Contracts completed: 712, 619 705, 918 6,701 Number $139, 959, 539 $1, 803, 8481$141, 763, 387 Amount 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 1940 Total 736 4, 166 4,902 1, 831 $49, 300 $174, 733 $45, 143 $219, 876 $9, 621 $5, 815 $2, 658 $8,473 $39, 679 |$168, 918 $42, 485 $211,403 November 1939: Applications: Number Amount Investments: Number Amount Repurchases 0 1 $100 5 $876 6 $976 0 0 0 $31 0 0 $31 o o 0 1 Refers to number of separate investments, not to number of 2associations in which investments are made. Investments in Federals by the Treasury were made between December 1933 and November 1935. Table 12.—Properties acquired by H . O . L. through foreclosure and voluntary deed 1 Period Nov. 1, 1939 through Nov. 30, 1939 State members Federals 1, 862 4, 575 971 5,546 $50, 401 $199, 425 $63, 085 $262, 510 189, 687 187, 336 Home Owners' Loan Corporation Treassury October 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: Jan. 1 through July 1 through 1939: Jan. 1 through July August September October November June Dec. June Dec. June Dec. June Dec. June Number 30 31 30 31 30 31 30 31 30 ___. Grand total to Nov. 30, 1939 9 114 983 4,449 15, 875 23, 225 26, 981 28, 386 22, 533 19, 509 2,773 2,857 2,590 2,445 2,356 155, 085 1 Does not include 9,960 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 155,085 completed cases, 862 properties were sold at foreclosure sale to parties other than the H. O. L. C. and 21,516 cases have been withdrawn due to payment of delinquencies by borrowers after foreclosure proceedings were authorized. I33 Table 13.—Summary of estimated nonfarm mortgage recordings/ $20,000 and under, during November 1939 F e d e r a l Home Loan Bank D i s t r i c t and S t a t e Savings & loan associations Insurance companies Number Amount Numbe r UNITED STATES— 38,671 $98,889 No. 1—Boston No. 2--New York 10,805 308 277 432 2,338 183 261 53 924 943 7,326 582 898 132 73 35 167 13 10 7 . . . 3,098 10,110 2,669 7,441 New Jersey New York 949 2,149 No. 3—Pittsburgh No «. 2,027 307 175 326 47 104 103 1,610 585 3,227 334 407 146 479 327 873 95 138 115 6,715 514 6,201 2,084 195 192 1,112 1,245 1,012 1,072 4,157 \D9 4,072 1,461 4,198 1,118 3,253 10,012 3,440 1,018 2,422 247 1,116 133 416 559 1,976 57 213 97 258 j 25 219 8,532 1,893 647 3,304 5,228 1,246 894 1,824 1,426 317 5J87 1,503 493 172 730 300 67j 352 7,442 12,472 2,061 3,930 5,381 8,542 6,358 2,860 16,128 1,579 2,328 890 43,385 13,817 29,568 1,408 2,046 7,105 182 655 1,653 3,542 993 3,704 7,604 22,695 189 1,032 187 62 1,527 457 295 5,820 990 29 151 2 106 548 1 115 1,243 295 219 2,962 361 24 817 152 127 3,300 277 329 5,711 1,564 1,106 18,211 3,378'| 5,899 13,265 829 3,622 2,117 5,591 27 120 4,173 6,788 2,414 6,486 15,459 186 492 653 768 899 1,656 359 886 276 2,371 1,940 1,464 2,081 2,619 621 1,893 53 83 262 178 25 95 27 105 192 540 1,045 761 160 408 102 414 212 95 304 440 236 201 161 468 338 587 892 1,041 782 364 321 1,266 363 223 979 500 406 642 421 639 435 594 1,959 670 934 532 402 1,262 257 315 528 201 174 441 148 350 620 1,354 1,539 354 456 811 423 929 _ ! 1,071 1,208 2,726 2,087! i,768 3,035 1,116 2,448 $3.52 30,143 1 35 196 40 4.18 4.57 3.91 3.92 3.47 3.61 3.53 2.49 5.76 2.08 2.64 35,872 1,861 5,446 7,375 4,290 4,533 4,734 1,869 5,764 27 120 65 246 1,954 3,071 1,568 4,562 12,747 266 2,253 552 87 857 624 274 3,051 1.237 1,639 8,811 2,297 3,939 27,490 4,188 : 1 42 11.20 6.20 2.88 3 25 3 01 2.27 3.92 5,641 15,395 621 3,587 2,898 8,756 Kentucky Ohio Tennessee 842 4,331 468 1,797 12,743 855 128 390 103 661 2,473 453 373 1,885 640 941 6,724 1,091 65 246 209 1,283 462 6~lndianapol is 2,920 5,907 735 3,612 2,874 8,218 23 45 1.264 2,388 902 3,435 8,719 23,605 Indi ana Michigan.. i,940 980 3,447 2,460 285 450 1,323 2,289 1,001 1,873 2,602 5,616 23 45 438 826 725 1,663 306 596 829 2,606 3,994 4,725 8,971 14,634 1 3,128 9,005 436 2,432 1,561 5,819 16 27 1,771 4,124 1,436 6,708 8,348 28,115 2,282 846 6,949 2,058 338 98 1,956 475 1,015 546 4,165 1,654 16 27 840 931 2,311 1,813 1,218 218 6,018 690 5,693 2,655 21,399 6,716 2,737 5,928 454 2,039 1,561 3,324 53 122 2,199 3,439 967 2,512 7,951 17,364 729 967 841 117 83 1,448 2,240 1,811 267 162 89 224 107 18 (S 381 957 594 60 37 510 475 416 82 78 1,214 1,066 825 113 106 390 688 936 87 98 564 1,209 1,419 125 122 214 152 558 30 13 469 456 1,496 63 28 1,932 2,536 2,861 334 288 4,076 6,036 6,169 628 455 2 73 3.62 2.45 2.21 1.50 3,060 361 932 203 66 1,498 7,509 708 2,406 427 143 3,825 651 31 59 25 3 533 3,619 121 250 107 4 3,137 936 109 127 2,965 178 472 320 191 1,804 2, 174 204 341 236 141 1,252 3,804 204 703 412 210 2,275 1,415 103 231 92 21 968 4,158 195 538 259 75 3,091 8,236 808 1,690 666 286 4,786 22,055 1,406 4,369 1,525 623 14,132 1.91 3.44 2.36 2.35 4.07 2,200 4,466 173 887 668 1,595 1,382 1,846 895 2,328 5,318 11,122 313 576 578 733 750 969 1,175 1,572 14 37 65 57 64 113 364 346 144 222 61 241 430 450 176 539 560 256 193 373 922 258 284 382 262 134 83 416 824 337 225 942 1,293 1,225 980 1,820 2,990 2,127 2,224 3,781 1,634 3,522 193 697 1,256 3,252 1,203 1,711 813 12,009 195 546 756 371 1,432 221 20 35 53 17 63 2 66 139 211 52 221 8 135 150 156 223 538 54 485 488 403 619 1,116 141 154 147 373 107 347 75 181 341 435 114 509 131 119 21 169 68 387 49 2,495 341 44 478 121 1,344 167 5,227 98 205 360 162 735 74 2,351 6,696 381 2,348 5,531 21,730 4,715 8,740 922 3,616 13,900 64 2,284 3 176 6,516 4 3 373 10 2,338 189 5,304 38 607 20,967 156 33 886 3 62 3,552 2 595 1,388 13,211 41,438 94 L 304 Illinois Wisconsin 8 ~ D e s Moines Iowa Minnesota Missouri North Dakota South Dakota No 6,309 271 No, 7—Chicago No 3,900 1,953 38 P 2,357 Amount $14,571 27,955 $52,183 15,335 $50,699 115,993 $325,112 1 1,062 44 i 1,309 324 427 924 1,280 190 95 404 120 290 49 8,229 1,570 505 172 816 8861 36 Number Amount | Number Amount per capita | (nonfarm) 170 4,549 1,562 D i s t r i c t of Columbia Florida Gedrgi a Maryl and North Carolina South Carolina Virginia No Number Amount Number Amount $80,484 3,994 Total 6,281 if—Winston-Sal em No. 5—Cincinnati 1,678 Amount 1 64 1,777 •__ 618 2,459^ Del aware . Pennsylvania West Virginia Amount Number 5,443 $28,286 24,594 3,544 Connecticut Maine Massachusetts New Hampshire Rhode Island Vermont ( A m o u n t s shown are i n t h o u s a n d s o f d o l l a r s ) Banks and Mut i a l Other Individuals t r u s t companies saving 3 banks mortgagees 9 — L i t t l e Rock " Arkansas. Loui si an a Mississippi New Mexico Texas No. 10—Topeka Colorado. __ Kansas Nebraska Oklahoma No. 11—Portl and Idaho Montana Utah Washington Wyoming No. Ari zona California Nevada . ... .... no 55 535 30 3 125 98 24 332 II 21 114 311 306 533 | 1 4,359 I 8,065 ! 142 50 526 559 1,127 1 577 2,184 1 254 35,&I7 2.74 4.88 2.99 3.70 3.60 3.23 3.26 3.97 1.81 2.81 2.76 1,269 1 1,558 2,304 1,277 4,933 668 1 4.94 4.68 3.16 3.26 3.92 4.38 43,130 4.12 8.19 1 4.07 ^ a s e d upon county reports submitted through t i e cooperation of savings and loan associations, the U. S. Savings and Loan League, the Mortgage Bankers Association, and the Ameri can T i t l e Association, 134 Federal Home Loan Bank Review Table 14.—Estimated volume of nonfarm mortgages recorded, by type of mortgagee [Amounts are shown in thousands of dollars] Savings and loan associations Mutual savings banks Banks and trust companies Insurance companies Individuals Other mortgagees All mortgagees Period Total Percent Total Number: 27, 283 30. 1 4,866 1939: January February - - 27, 666 32.5 3,688 36, 008 32.8 5,547 March 38, 167 34.5 5,240 April 43, 648 34.8 6,009 May 43, 655 34.1 6,335 June 41, 048 34.6 5, 946 July 44, 224 35.3 6, 014 August September- 41, 946 35.6 | 5,352 October 42, 091 34.6 ! 5,636 November- 38, 671 33.3 5, 443 Amount: 66, 114 27. 1 22, 704 1939: January 68,840 30.3 19,278 February 1 92, 337 29.5 28,316 March ! 94, 857 31.2 1 26,839 April 109, 652 31.4 29,922 May 113, 479 31.5 30,017 June 105, 890 32. 1 29, 777 July 112, 516 32.6 30, 796 August September- 104, 548 33.0 28, 086 105, 229 31.6 28, 503 October November- 98, 889 30.4 28, 286 Total Percent 20, 003 19,138 23, 764 22, 768 25, 658 26, 779 22, 860 24, 750 23, 627 25, 589 24,594 22. 1 22.5 21.6 20.6 20.4 20.9 19.3 19.7 20.0 21.0 21.2 2,143 2,059 2,895 2,978 3,825 3,524 3,909 3,908 3,924 3,718 3,994 9.3 , 62, 697 8.5 57, 843 9. 1 79,920 8.8 73,320 8.6 85,417 8.3 89, 563 9.0 74, 960 8.9 80, 049 8.9 74, 577 8.6 84, 678 8.7 80, 484 25.7 25.5 25.6 24. 1 24.4 24.8 22.7 23.2 23.5 25.4 24.7 7,525 7,031 9,822 10, 108 12, 195 12, 048 13, 679 13, 844 13, 470 12, 966 14, 571 Percent 5.4 4.3 5. 1 4.7 4.8 4.9 5.0 4.8 4.5 4.6 4.7 Total Total Percent Total Percent Combined total Percent 2.4 2.4 2.6 2.7 3.0 2.8 3.3 3. 1 3.3 3.0 3.5 24, 974 22, 903 28, 729 28, 441 30, 904 30, 710 30, 209 31, 174 29, 055 29, 577 27, 955 27.6 26.9 26. 1 25.7 24.6 24.0 25.4 24.9 24.7 24.3 24. 1 11, 286 9,706 12, 930 12, 976 15, 560 17, 002 14, 693 15, 339 14, 009 15, 195 15, 336 12.4 11.4 11.8 11.8 12.4 13.3 12.4 12.2 11.9 12.5 13.2 90, 555 85, 160 109, 873 110, 570 125, 604 128, 005 118, 665 125, 409 117,913 121, 806 115, 993 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 3. 1 3.1 3.1 3.3 3.5 3.3 4.2 4.0 4.2 3.9 4.5 49, 032 42, 528 57, 036 55, 667 59, 453 58, 967 58, 056 58, 826 53, 018 53, 909 52, 183 20. 1 18.7 18.3 18.3 17.0 16.4 17.6 17.0 16.7 16.2 16. 1 35, 943 14.7 31, 471 ! 13.9 45, 034 14.4 43, 560 14.3 52, 815 15. 1 56, 794 15.7 47, 621 14.4 49, 549 14.3 43, 457 13.7 47, 794 14.3 50, 699 15.6 244, 015 226, 991 312, 465 304, 351 349, 454 360, 868 329, 983 345, 580 317, 156 333, 079 325, 112 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Percent Election of F. H. L. B. Directors (Continued from p. 125) DISTRICT NO. 3: FEDERAL HOME LOAN BANK OF PITTSBURGH DISTRICT NO. 5: FEDERAL HOME LOAN BANK OF CINCINNATI Class A Director: Harry R. Smith, Ellwood City Federal Savings and Loan Association, Ellwood City, Pennsylvania.* Class B Director: Charles Warner, Brandywine Building and Loan Association, Wilmington, Delaware.* Class C Director: William A. Wood, Equitable Building and Loan Association, Washington, Pennsylvania.* Director-at-Large: James J. O'Malley, First Federal Savings and Loan Association of Wilkes-Barre, Wilkes-Barre, Pennsylvania.* Class A Director: James M. McKay, The Home Savings and Loan Company, Youngstown, Ohio.* Class B Director: Fred B. Bassmann, Monmouth Street Federal Savings and Loan Association, Newport, Kentucky.* Class C Director: Herman F. Cellarius, The San Marco Building and Loan Association, Cincinnati, Ohio.* Director-at-Large: W. Megrue Brock, The Gem City Building and Loan Association, Dayton, Ohio.* DISTRICT NO. 4: FEDERAL HOME LOAN BANK OF WINSTON-SALEM Class A Director: William H. Walker, First Federal Savings and Loan Association of Miami, Miami, Florida.* Class B Director: J. Newton Gordon, The Cooperative Building and Loan Association, Lynchburg, Virginia.* Class C Director: George E. Rutledge, First Federal Savings and Loan Association of Bessemer, Bessemer, Alabama. Director-at-Large: P. W. Spencer, Mechanics Federal Savings and Loan Association, Rock Hill, South Carolina.* January 1940 DISTRICT NO. 6: FEDERAL HOME LOAN BANK OF INDIANAPOLIS Class A Director: William C. Walz, Ann Arbor Federal Savings and Loan Association, Ann Arbor, Michigan.* Class B Director: Robert H. Wertenberger, Peoples Savings and Loan Association of DeKalb County, Auburn, Indiana. Class C Director: Earl C. Bucher, People's Savings and Loan Association, Huntington, Indiana.* Director-at-Large: Myron H. Gray, Muncie Federal Savings and Loan Association, Muncie, Indiana.* I35 DISTRICT NO. 7: FEDERAL HOME LOAN BANK OF CHICAGO DISTRICT NO. 12: FEDERAL HOME LOAN BANK OF LOS ANGELES Class A Director: B. F. Kuehlhorn, Northern Building and Loan Association, Milwaukee, Wisconsin.* Class B Director: Allen R. Calhoun, Standard Savings and Loan Association, Milwaukee, Wisconsin.* Class C Director: Robert L. Hirschinger, Baraboo Federal Savings and Loan Association, Baraboo, Wisconsin. Direclor-at-Large: Arthur G. Erdmann, Bell Savings, Building and Loan Association of Illinois, Chicago, Illinois.* Class A Director: Horace S. Wilson, Southern California Building and Loan Association, Los Angeles, California. * Class B Director: George W. Pardy, La JoUa Federal Savings and Loan Association, La Jolla, California.* Class C Direcior: William E. Bouton, Golden Gate Federal Savings and Loan Association, San Francisco, California. * Director-at-Large: Edwin M. Einstein, Fresno Guarantee Building-Loan Association, Fresno, California.* DISTRICT NO. 8: FEDERAL HOME LOAN BANK OF DES MOINES Class A Director: Burch N. Bell, Twin City Federal Savings and Loan Association, Minneapolis, Minnesota. Class B Director: J. W. Irons, Mutual Federal Savings and Loan Association of Mason City, Mason City, Iowa. Class C Director: John R. Loomis, Red Oak Building and Savings Association, Red Oak, Iowa. Direclor-at-Large: Louis A. Boyles, Yankton Building and Loan Association, Yankton, South Dakota.* DISTRICT NO. 9: FEDERAL HOME LOAN BANK OF LITTLE ROCK Class A Director: Herman C. Steger, First Homestead and Savings Association, New Orleans, Louisiana. Class B Director: O. W. Boswell, First Federal Savings and Loan Association of Paris, Paris, Texas.* Class C Director: Louis D. Ross, St. Tammany Homestead Association, Covington, Louisiana.* Director-at-Large: Wilbur P. Gulley, Pulaski Federal Savings and Loan Association, Little Rock, Arkansas.* DISTRICT NO. 10: FEDERAL HOME LOAN BANK OF TOPEKA Class A Director: Arthur R. Brasted, Mid Kansas Federal Savings and Loan Association, Wichita, Kansas. Class B Director: L. W. Bauerle, Southwest Federal Savings and Loan Association, Wichita, Kansas. Class C Director: Frank S. Powell, Argentine Building and Loan Association, Kansas City, Kansas.* Director-at-Large: Charles F. Quaintance, Colorado Federal Savings and Loan Association, Denver, Colorado.* DISTRICT NO. 11: FEDERAL HOME LOAN BANK OF PORTLAND Class A Director: M. L. Dye, First Federal Savings and Loan Association of Salt Lake City, Salt Lake City, Utah. Class B Directors: C. N. Bloomfield, Cheyenne Federal Savings and Loan Association, Cheyenne, Wyoming.* Sam Dehnert, First Federal Savings and Loan Association of Coeur d'Alene, Coeur d'Alene, Idaho—elected to serve for the unexpired portion of 2-year term ending December 31, 1940.* Class C Director: Joseph E. Swindlehurst, Empire Building and Loan Association, Livingston, Montana.* Director-at-Large: Ben H. Hazen, Benj. Franklin Federal Savings and Loan Association, Portland, Oregon. * 136 State Legislation Affecting Savings and Loans (Continued from p. 114) sure a sound condition of the institution at all times. It is encouraging to note that during 1939 seven jurisdictions substantially strengthened or first enacted ultimate reserve requirements. Five of these adopted the figure of 10 percent of capital. Six of these seven jurisdictions also materially strengthened their requirements for transfers to reserves, or for the first time imposed such requirements. Five of the six set the required amount or required minimum amount at 5 percent of net earnings, the amount suggested by the illustrative draft. The statutes in Hawaii, as amended, provide specifically that insured associations shall meet the requirement of the Insurance Corporation in lieu of that fixed by local law, both with respect to the ultimate reserves and to transfers to reserves. STATE LEADERSHIP Substantial progress was made during 1939 in the enactment of State legislation designed to permit greater usefulness and community service on the part of thrift and home-financing institutions. The modernization of existing State statutes is the result of constant efforts by the individuals and organizations within each State, and the cooperation of the State legislators who have been responsible for the actual enactment. As the savings and loan industry enters upon a new year, there is ample reason to believe that this progressive trend will be continued; that additional States will enact constructive legislation; and that through the liberalized provisions, the Federal Home Loan Bank System will be able to function more effectively and with greater benefits for its members and the industry as a whole. Federal Home Loan Bank Review U. S. GOVERNMENT PRINTING OFFICE: 1940 I (^^T^--^ HOME L OAK BANK D!ST R1CTS FEDERAL i i I N DAK. ^ \i i /*******. 1 ,OA "o J j fU^^vSj 8 S. DAK. S* I-- - NEBR. ) *L \ 12 1 C0L0 I - j10 j TOPEKA® % KANS. 1 ) A < »* 1 M0 N.MEX ff® 0*""^% ^ AVAT f / ^ c 4 # S w I ^8 1 . / ^ VA. ^ mjSTON S A L E ^ j,—^— f 1 OKLA. ,LL X / ^ 1 1 I! l MICH Y - , V 7—1 WA v B|—L [ / MOINESy «L ADES ® XCHICAG i C wiSC ARK. £.„„„•„ © f a [LITTLE,ROCK 1 1Uss. mwmtm^-r \ ALA. ^ \ ep 9 TEXAS ] n I • • BOUNDARIES © OF FEDERAL HOME LOAN BANK FEDERAL HOME LOAN BANK lf L A \ DISTRICTS. CITIES. jl 7-I-S5 OFFICERS OF FEDERAL HOME LOAN BANKS BOSTON CHICAGO B. J. ROTHWELL, Chairman; E . H . W E E K S , Vice Chairman; W . H . NEAVES, President; H. N. FAULKNER, Vice President; C. E . BROUGHTON, Chairman; H . G. ZANDER, J R . , Vice Chairman; A. R. FREDERICK G A R D N E R , President; J. P . D O M E I E R , Vice President-Treasurer; W I N A N T , J R . , Treasurer; L. E . D O N O V A N , Secretary; P . A . H E N D R I C K , CON- STANCE M . W R I G H T , Secretary; U N G A R O & SHERWOOD, Counsel. Counsel. NEW GEORGE MACDONALD, 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 . MUELLER, Assistant Treasurer; E . S. TESDELL, Counsel. ROBERT G. CLARKSON, V. D. LLOYD, Vice MOINES C. B . B O B B I N S , Chairman; E . J. R U S S E L L , Vice Chairman; R. J. R I C H A R D - Counsel; F. DES Chairman; C. Chairman; YORK Vice President-Secretary; DENTON L Y O N , Treasurer. PITTSBURGH E. T . T R I G G , Chairman; C . S. T I P P E T T S , Vice Chairman; R. H . ARDS, President; G. R. PARKER, Vice President; H. H. LITTLE ROCK RICH- GARBEH, W. C. JONES, J R . , Chairman; W, P . GULLEY, Vice Chairman; B . H , Secretary-Treasurer; R. A. CUNNINGHAM, Counsel. W O O T E N , President; H . D . W A L L A C E , Vice President; W . F . TARVIN Treasurer; J. C. CONWAY, Secretary; W . H . CLARK, J R . , Counsel. WINSTON-SALEM TOPEKA E . C. BALTZ, Vice Chairman; O. K. L A R O Q U E , President-Secretary; G. E . WALSTON, Vice President-Treasurer; J o s . W. HOLT, Assistan J Secretary; P. RATCLIFFE, H U D S O N & F E R R E L L , C o u n s e l ] F. GOOD, BURTON, Chairman; Vice C. A. STERLING, President-Treasurer; JOHN President-Secretary; R. S. DEAN, JR., H. General Counsel. CINCINNATI W M . M E G R U E B R O C K , Vice Chairman; W A L T E R D . W. E . JULIUS, PORTLAND SHULTZ, President; Vice President; D W I G H T W E B B , J R . , Secretary; A. L. M A D D O X , Treasurer; T A F T , STETTINIUS & HOLLISTER, General Counsel; R. B . JACOBT, Assigned Attorney. F. S. MCWILI.IAM3, Vice Chairman; F . H . JOHNSON, President-Secretary; IRVING B O G A R D U S , Vice President-Treasurer; Mrs. E . M . SOOYSMITH, Assistant Secretary; M. M . MATTHIESSEN, General Counsel. INDIANAPOLIS F. S. CANNON, Chairman-Vice President; S. R. LIGHT, Vice Chairman; F R E D T . G R E E N E , President; G. E . OHMART, 2d Vice President; J. G. Los President; C. E . BERRY, Vice President; F. C. N O O N , Secretary-Treas- M O R D E N , Secretary-Treasurer; J O N E S , H A M M O N D , B U S C H M A N N & G A R D - urer; NER, Counsel. General Counsel. ANGELES D . G . D A V I S , Chairman; A. J. E V E R S , Vice Chairman; M . M . H U R F O R D , V I V I A N S I M P S O N , Assistant Secretary; RICHARD FITZ-PATRICK,
@FedFRASER