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Vol. 7
SmJmk
No. 4
Wmp^
FEDERAL
HOME LOAN BANK
REVIEW
JANUARY
1941
ISSUED BY
FEDERAL HOME LOAN BANK BOARD
WASHINGTON D.C.
CONTENTS
FOR
JANUARY
1941
ARTICLES
FEDERAL
HOME
LOAN
BANK
New frontiers of t h e savings a n d loan business—The need for
localized research—Basic research p r o g r a m for savings a n d loan
m a n a g e m e n t — D a y t o n associations set an example.
T H E FORECLOSURE
CYCLE—WHERE
Published Monthly by the
John H. Fahey, Chairman
T. D. Webb, Vice Chairman
F. W. Catlett
W. H. Husband
F, W. Hancock, Jr.
D O W E STAND?
T R E N D S I N T H E SAVINGS AND L O A N I N D U S T R Y
FEDERAL SAVINGS AND LOAN
ASSOCIATIONS
LAND
CONTRACTS
IN A R E A L ESTATE
SALES PROGRAM
112
Volume of real estate sold on c o n t r a c t — A d v a n t a g e s of t h e land
contract—Geographic concentration—Experience of the H O L C —
Comparison with ordinary mortgage foreclosure.
MONTHLY
SURVEY
Highlights a n d s u m m a r y
116
General business conditions
Residential construction
118
118
Foreclosures
119
Building costs
New mortgage-lending activity of savings a n d loan associations
119
119
Mortgage recordings
Federal Savings a n d Loan System
Federal Savings a n d Loan Insurance Corporation
Federal H o m e Loan B a n k System
120
120
121
121
TABLES
New family dwelling units—Building costs—Savings a n d loan lending—Mortgage
recordings—Total nonfarm foreclosures—HOLC properties—Insured savings
a n d loan associations—Federal H o m e Loan B a n k a d v a n c e s — G o v e r n m e n t investments in savings and loan associations—Private long-term savings . . 122-130
FEDERAL SAVINGS AND LOAN
INSURANCE CORPORATION
HOME OWNERS' LOAN
CORPORATION
107
T h e process of consolidation—Changes during 1939—The rise of
membership assets—Distribution of assets by Federal H o m e Loan
B a n k Districts—Trends during 1940.
STATISTICAL
FEDERAL HOME LOAN
BANK SYSTEM
103
Seven years of decline—Comparison of 1940 with 1939—Geographical variations—Urbanization as a factor in foreclosure risk.
REVIEW
FEDERAL HOME L O A N
BANK BOARD
Page
98
P R A C T I C A L SAVINGS AND L O A N R E S E A R C H
REPORTS
Directory of member, Federal, and insured institutions added during N o v e m b e r December
106
F r o m t h e m o n t h ' s news
Ill
Election and a p p o i n t m e n t of directors and designation of chairmen a n d vice
chairmen of t h e Federal H o m e Loan B a n k s
131
SUBSCRIPTION PRICE OF REVIEW. The FEDERAL HOME LOAN BANK REVIEW is the Board's medium of communication with member
institutions of the Federal Home Loan Bank System and is the only official organ or periodical publication of the Board. The REVIEW
will be sent to all member institutions without charge. To others the annual subscription price, which covers the cost of paper and
printing, is $1. Single copies will be sold at 10 cents. Outside of the United States, Canada, Mexico, and the insular possessions, subscription price is $1.60 ; single copies, 15 cents. Subscriptions should be sent to and copies ordered from Superintendent of Documents,
Government Printing Office, Washington, D. C.
APPROVED BY THE BUREAU OF THE BUDGET.
281460—41
1
PRACTICAL SAVINGS AND LOAN RESEARCH
Practical research is becoming an increasingly important tool
in the operation of savings and loan associations. The following outline of a local research program will be helpful to
executives in instituting or perfecting projects of their own.
The example of a midwestern group of savings and loan associations which recently embarked upon a cooperative research
program demonstrates that "it can be done."
•
"TODAY'S frontiers are in the laboratories and
machine shops of industry/' said one of the foremost American technologists sometime ago. "Here
is where the new jobs, new industries, new goods,
and new services of tomorrow must be created.
Although many companies have done a research job
of which America can be proud, research is still one
of the least developed resources of the Nation."
Paraphrasing these remarks, it may be said without exaggeration that research largely will shape the
future of the savings and loan industry. The
frontiers of the industry are far from being closed.
They are being extended by the progressive associations in which modern scientific methods of management are being applied, where savings and lending
policies are being accurately tested against results,
and where the urge is keenly felt for improved services to investors and borrowers, as the soundest basis
for successful operation of a thrift and home-financing institution. They are open to those managements
whose operating policies are guided by facts, not by
random guesses or by antiquated rules-of-thumb.
NEW
FRONTIERS
The practical application of research is one of the
most encouraging aspects of the great transformation of the savings and loan industry during the
past few years. However, paraphrasing again the
above comments on industrial research, any informed
observer of the savings and loan scene will admit
that research is one of the least developed resources
of the industry. This is not surprising. Technological research has been applied for many decades
and enjoys the advantages of a fairly old tradition.
Likewise, economic research for marketing purposes
has long been used by manufacturing and distributing
businesses. In contrast, the foundation for practical
research by thrift and home-financing institutions
has been woefully weak until recent years.
98
I t is only in the past decade that national and
regional data indispensable to the systematic observation of real estate conditions have become available. For example, foreclosure statistics have been
developed, the coverage of construction figures has
been broadened, more adequate cost indexes for
home construction have been built up. We have
learned to know what savings and loan associations
are doing from month to month, and mortgage recording statistics for all types of lenders have been
initiated. There are still many things which we do
not know, but what we have is sufficient to permit
us to embark upon the second, equally important
phase of savings and loan research, the phase in
which savings and loan associations concentrate on
obtaining complete information for their own community and on the practical application of this
knowledge to their day-to-day operations.
T H E N E E D FOR LOCALIZED RESEARCH
To make research applicable and useful to current
operations, national, regional and local data are all
indispensable. Community information supplies the
facts of immediate importance to local thrift and
home-financing institutions. National and regional
data furnish the background material against which
local operations can be intelligently measured and
interpreted.
The next few years will witness an increasing emphasis on this second phase of savings and loan
research. These will be years of rapid and profound
changes in economic conditions requiring quick
adaptations of daily operations, and more than ever
before will it be necessary for management to be
guided by readily available facts, just as a captain
needs a pilot to guide him through troubled waters.
In the following paragraphs, an attempt is made
to outline a practical community research program
for savings and loan executives. This outline may
Federal Home Loan Bank Review
be varied so as to tune in with local conditions, and
it may need adaptation to the size and number of
associations operating in the community. I t is
suggested as a stimulus to further thought rather
than as a definite framework. No matter how
small the community or association, there is ample
opportunity for constructive research everywhere.
In some cases, individual associations may embark
upon their own projects. In others, groups of
associations may join in cooperative research to
produce more comprehensive results by sharing the
cost. The method of organization is really subordinate to the realization of the need for local savings
and loan research and to the outline of a systematic
program.
A
Suggested Program
1. General business conditions
The time has passed when savings and loan operations could be regarded solely as a local isolated
problem. Today they are interwoven with the
working of our entire economy and with the welfare
of each community. Therefore, a clear picture of
where the national economy and the local economy
are heading is necessary for the intelligent management of a progressive savings and loan institution.
A general gauge of national economic trends is
afforded by the seasonally adjusted monthly index
of income payments (U. S. Department of Commerce). 1 This indicator of business conditions is
preferable in some respects to the seasonally adjusted
index of industrial production because it reflects the
activity of agriculture and of distributing and service
businesses as well as that of manufacturing industries.
With respect to local conditions, many chambers
of commerce, universities, newspapers, and other organizations, release current information on business
activity. For example, the Bureau of Business Research of Louisiana State University releases a
monthly summary of business conditions for the
State as a whole and for 15 communities, including
items such as employment placements and applications, manufacturing sales, electric power consumption, motor vehicle registrations, freight shipments,
department store sales, and bank debits.
Whether indexes of car sales, of employment, manufacturing pay rolls, or other business data are used,
they te]l essentially the same story. There may be
differences in amplitude of fluctuations, or a lag in
i Beginning with this issue, the summary table in the "Monthly Survey" of
the REVIEW includes the U. S. index of income payments (page 118 of this issue.)
January 1941
turning points, but it is more important for savings
and loan executives to choose two or three sets of
data which permit easy comparison of local conditions with national and State-wide trends than to
assemble a large volume of information which cannot
easily be related in this manner.
2. Long-term savings
Savings and loan associations are in the business
of obtaining long-term savings for share investments
and of lending these funds on mortgages. They m u s t
know most of all their competition for savings and
for loans. Every association should compare itsrecord of private capital with that of other savings
and loan associations in the community, in the State,
in the Federal Home Loan Bank District, and with
the performance of comparable associations throughout the Nation. For Federal and State-chartered
insured institutions, national figures are published
monthly in the R E V I E W (Table 12, page 129), and
regional figures are released periodically by most of
the 12 Federal Home Loan Banks.
In addition, the trend of other types of long-term
savings in the community deserves close observation.
Included in this category are savings deposits i n
commercial banks and mutual savings banks, and
baby bond sales and postal savings. National information on these items is published currently (seeTable 15, page 130).
Finally, some associations have found it useful to
keep a special record of their own share investments,
separated by new accounts, additional investmentsin old accounts, and dividends credited; and to
analyze currently repurchases on the basis of withdrawals in toto and in part.
3. Mortgage lending
In regard to the lending business, statistics om
mortgage recordings furnish the vital comparison
with the activity of savings and loan associations as.
a group and with the activity of other mortgage
lenders in a given area. The mortgage-recording
reports of the Division of Research and Statistics
supply detailed information on savings and loan
associations, mutual savings banks, commercial
banks and trust companies, insurance companies,
individuals, and other mortgagees. Many associations maintain current records of such data for their
own county and the counties in their lending area,
and compare trends in their territory with those in
their State, Bank District, and in the United States
as a whole. (Bank District and State figures are
9?
currently reported in Table 8 of the
FEDERAL H O M E
LOAN B A N K R E V I E W . )
If an association is falling behind, or if the local
savings and loan industry as a whole is lagging, there
are definite reasons which a comprehensive study
of the competitive situation, interest rates charged
by other lenders, loan terms, and FHA insurance
activity may bring to light.
Jf. Home construction
Obviously, mortgage lenders are vitally interested
in new home construction, not only because a certain
portion of their loans is on new houses, but also
because the building of additional dwellings has a
definite bearing on the real estate market and the
security behind the loans which they have already
made. A record of new home construction and a
knowledge of those sections where building is active
may be obtained from regularly released construction
data such as building permits. This information,
however, usually covers only the area within city
boundaries, which does not necessarily conform with
an association's lending territory. In many instances, the bulk of new home building occurs in
suburbs outside the corporate city limits. To correct
this deficiency, it is necessary to ferret out the facts
on all new construction, by types of dwellings, which
is taking place within the normal lending area of an
association. This should be supplemented with an
analysis of the various price ranges in which new
homes are offered.
A large part of local home construction is of the socalled "speculative" type undertaken by operative
builders for sale. Close observation of the sales
success of this type of building provides a usually
reliable yardstick of the demand for homes in the
different price classes. The time that elaspses
between the completion and the sale of such homes,
and the volume of new homes remaining unsold at the
end of the building season are of significant interest
to home-financing institutions.
A tabulation of the source of construction lending
business—individual owners, speculative builders,
contractors, architects, and others—has been the
means of developing specific programs to increase
association contacts with the more productive of
these groups.
5. Real estate market
Analysis of new building activity naturally leads
to the all-important study of housing supply versus
housingdemand.
Is the volume of new dwellings
100
which are being added to the present supply keeping
pace with the demand, falling behind, or exceedingit? Are too many dwellings of one type and price
being built and not enough of another? These
questions are of more than academic interest to
mortgage lenders as their combined actions may
make or break an overbuilt situation. Again, a
current housing market analysis should apply to the
actual lending area of the association rather than to
the city limits.
Changes in rents and vacancies are probably the
most important indicators of trends in housing demand and supply, and yet adequate information on
these factors is sorely lacking. National data mean
comparatively little to local operators because of the
large variations from community to community in
the trends of rents and vacancies. Government statistics for individual localities are meager and not
sufficiently current. Here is a field where cooperation of savings and loan associations with other mortgage lenders, real estate boards, property managers,
and utility companies would yield results equally
important to all these groups. Surveys on a quarterly basis should be maintained in each community; preferably, they will separate 1-, 2-family, and
multifamily structures and classify them by price
groups, because fluctuations in rents and vacancies
may show considerable differences for each type of
dwelling and each price bracket. A breakdown by
wards or other sections will be advisable to show
trends in the various neighborhoods.
Foreclosures and real estate sales are other significant indices to watch. Foreclosure data are available
from county recorders, sheriffs, newspapers, etc., and
will be most useful if tabulated monthly, broken down
by areas and types of properties, and spotted on a
map. National figures for comparative purposes are
currently reported in the R E V I E W (Table 10; see also
the article on page 103). Sales activity may be
measured by recordings of voluntary property transfers. Increases or declines in the number of institutionally owned properties also throw light on real
estate conditions.
One of the most important factors affecting the
demand for homes and the general real estate market
is the number of marriages. Monthly data on marriages may be obtained from the county officials
responsible for the issuance of marriage licenses.
Statistics on gas and light meters in use reflect
changes in the number of households, including such
fluctuations as occur through the migration of families to and from the area.
Federal Home Loan Bank Review
obsolescence, and change of style; they are characterized by infiltration of a lower-grade population,
lack of reasonable homogeneity, and the early
A modern community is in reality composed of
stages of blight. The fourth-grade areas represent
many different units of varying character, and overthose neighborhoods in which the things which are
all city data are therefore inadequate for the purnow taking place in the third-grade areas have
poses of a modern mortgage-lending institution.
already happened and where blight has taken its toll.
Neighborhood analyses by blocks or at least by
The Housing Census of 1940 provides an unusual
sections are a guide to lending policies, which no
opportunity for starting neighborhood analyses as
personal knowledge of the community and no hasty
the Bureau of the Census is planning within the
survey of a specific city area can replace.
next year to release block-by-block data of the most
In the past few years, the Home Owners' Loan
important findings of the housing census for cities
Corporation and the Federal Housing Administration
of 50,000 p o p u l a t i o n or
have developed a scientific
more.
When the groundtechnique for neighborhood
work has been laid, howanalyses, using "security
A BASIC RESEARCH PROGRAM
ever, there remains the task
area maps" as a tool for
FOR SAVINGS AND LOAN
of keeping the material upeasy graphical presentation
MANAGEMENT
to-date in order to make it
of the factors determining
useful for current opera1 . Study local business conditions and compare them
the desirability of a certain
with national and regional trends.
tions.
territory, and of the lending
2. Keep a monthly record of private share investments
risks involved in that terriin the savings and loan associations of your comtory. In these maps, urban
7. Market survey
munity and of other long-term savings.
neighborhoods are rated in
3. Follow the trend of mortgage recordings for all
accordance with their decounties in your lending territory; know your comThe logical supplement to
petition for loans.
sirability from a residential
a community analysis is a
4. Maintain current statistics on home construction
viewpoint, and in the rating
survey of the association's
in your lending area.
of an area, factors such as
own
market.
Where are
5. Observe real estate conditions as reflected in rents,
these are considered: apassociation borrowers and
vacancies, foreclosures and property transfers, and
peal, layout and topogobtain data on marriages.
investors located? 1
What
6.
A
n
a
l
y
z
e
the
various
neighborhoods
in
your
town
raphy; public approval as
is the present radius of its
and prepare a block-by-block map showing pertiindicated by intensity of
business? Who are its innent real estate information.
the sales and rental devestors and borrowers?
7. M a k e a survey of your association's market which
mand; pride of home ownWhat are their occupations
is a selected group within your community rather
ership; age, type, and conthan the community at large.
and what are their approxi8. Compare your operating ratios with those of similar
dition of dwellings; soundmate income ranges? What
associations.
ness of construction; ecoare their predominant age
nomic stability (mortgage
groups? Are they married,
indebtedness, foreclosures,
s i n g l e , m a l e or f e m a l e ?
institutional overhang); homogeneity of the populaBased on such a study, association management can
tion; sufficiency of public utilities, accessibility of
go a step further and analyze the logical prospects for
schools, nearness to churches and shopping centers;
either share investments or mortgage loans. Where
adequacy of transportation; and the restrictions set
are these prospects located? In which income and
up to protect the neighborhoods.
occupational groups are they? Does the advertising
program reach them fully and most effectively? The
Security area maps prepared by the HOLC show
answer to this question is all important to the
four principal classes of neighborhoods. The firstdevelopment of new business as the clientele of
grade areas generally are relatively new, well-planned
savings and loan associations necessarily is a selective
sections, not yet fully developed, homogeneous,
one: people who can afford to save, and people who
and clearly on the up-grade. The second-grade
can afford to buy homes. And yet, a good deal of
areas are, as a rule, completely developed,
business
promotion of savings and loan associations
still good neighborhoods, but stable rather than
improving. The third-grade areas are definitely
J See "Customer Analysis as a Guide in Advertising," FEDERAL HOME LOAN
declining or restricted as to desirability by age,
BANK REVIEW, November 1939, p . 46.
6. Neighborhood analysis
January 1941
I0I
is directed towards the community at large instead of
being concentrated on the most logical prospects.
For an analysis of the savings and loan market in
a number of communities, the local " Studies of
Consumer Purchases/' undertaken by Government
agencies in 51 cities of varying size in all sections of
the country, will be a useful guide. They include
d a t a on the distribution of families by income,
occupation, and race, and on home ownership and
savings in the different income groups.
8. Operating ratios
Operating ratios are one of the yardsticks by
which all forms of business measure the efficiency of
management. I n the past few years, the savings
and loan industry has begun to learn the fundamental
facts about operating ratios. Consolidated statements of operation for Federal savings and loan
associations, classified by size of institution, have
laid the groundwork for useful analysis. How much
of the gross income does it cost to do business, compared with the average cost ratio of associations in
the same size group all over the country and in the
Federal Home Loan Bank District; how much for
compensation; advertising; rent, light, heat, etc.?
W h a t proportion of the gross income was transferred
to reserves and undivided profits and what proportion was paid out in dividends?
Operating ratios do not give all the answers to
operating problems. Size and type of the community
and local conditions may well explain some of the
differences which exist. In many cases, the question
is not whether certain ratios are too high or too low
b u t whether, for example, a higher proportionate
cost of maintaining an expensive office results in
larger business volume and greater customer satisfaction; or whether a proportionately larger expenditure for business promotion assures a corresponding
increase in business. Studies of this type are useful
not only as a check but will stimulate the thought
about vital problems existing in every association.
DAYTON ASSOCIATIONS SET AN EXAMPLE
The above outline is not the brainchild of a " research specialist" in Washington. All over the country, savings and loan associations are engaged in one
or the other type of research work mentioned, and
executives have entered enthusiastically into various
extension school activities centering around the
practical application of research. What is required
at present is the establishment of a coordinated and
102
well-rounded program of local research which will
tie in with these activities and will provide a factual
basis for decisions on operating policies.
From this point of view, the experience of a group
of eight insured associations in Dayton, Ohio, deserves the attention of savings and loan leaders. This
group recently organized a cooperative research
bureau under the direction of an experienced analyst.
Each of these associations receives weekly, monthly,
and quarterly reports on the development of their
own business compared with that of the others, based
on data supplied by them. In addition, these associations obtain information on the savings and lending volume in other institutions and on general economic trends in the community. The factual material is being discussed twice a month between the
head of the research bureau and the executive officers
of each of the associations, and weekly meetings with
the advertising committee and with a loan officers
committee further serve to assure the practical application of the data collected.
*
*
*
The
FEDERAL
HOME
LOAN
BANK
REVIEW
is
vitally interested in the scope and type of local
research carried out by savings and loan associations,
and the editorial staff with the cooperation of the
Division of Research and Statistics will be glad to
assist in the development of programs for specific
communities. The R E V I E W is also interested in
reports on research activities now executed by member institutions. By assembling and disseminating
information on this type of activity the R E V I E W
hopes to be of greater service to its readers.
New Set-up For Defense Housing
•
AS this issue was going to press, announcement
was made of an Executive Order by the President creating a Division of Defense Housing Coordination with broad powers to assure adequate and
speedy building in connection with the defense program. Heretofore, the Defense Housing Coordinator was attached to the National Defense Commission.
The new Division will function under the direction
of the President, and its authority in defense housing
will extend over "all executive departments and
independent agencies (engaged in housing activities)
including corporations in which the United States
owns all or a majority of the stock, either directly
or indirectly." Charles F . Palmer, Defense Housing
Coordinator, will head the new Division.
Federal Home Loan Bank Review
THE FORECLOSURE CYCLE-WHERE DO WE
STAND?
Foreclosure activity,
as one of the most
important
indicators of real estate conditions, requires constant
observation
by savings and loan executives.
be most useful, however,
regional
ticle,
trends, summarized
should be supplemented
I
UPS and downs in the volume of foreclosures are
commonly regarded as among the most significant symptoms of conditions in the real estate market. Foreclosures are an over-all measure of the
performance of mortgage borrowers and indicate the
extent to which financial institutions are forced to
add to this least desired account, "real estate
owned/' They have an important bearing on the
degree to which private money is willing to invest
in the financing of new building and in mortgage
loans in general. A high or rising level of foreclosures
is a danger signal, particularly if confirmed by other
symptoms of a weakening real estate market such as
increasing vacancies and falling rents. In contrast,
a low or declining level of foreclosures, together with
other indices of favorable real estate conditions,
stimulates the confidence of mortgage lenders.
To
studies of national
and
in the following
by local
ar-
research.
A warning might be injected against drawing farflung conclusions from the chart as to the future
course of foreclosures. The fact that seven years of
increasing foreclosures were followed by seven years
of decline does not necessarily mean that the cycle
has been completed and that a larger foreclosure
volume must be anticipated in the near future.
Although we know from past experience that residential building and other real estate activity appear
to move in "long cycles," the length and amplitude of
each cycle are determined by many individual
factors which preclude any mechanical application of
INDEXES OF NONFARM FORECLOSURES AND NONFARM
RESIDENTIAL CONSTRUCTION, 1926-1940
SEVEN YEARS OF D E C L I N E
FOt1ECLCSURE
The continued decline of foreclosures over the
past seven years points to the gradual recovery of the
real estate market after the severest depression in
American history. As will be seen from the accompanying chart illustrating the cycle of the past
14 years, foreclosure activity toward the end of 1940
had receded almost to the 1926 level. Within this
span of 14 years, we have witnessed seven years of
steeply rising foreclosures from 1926 to 1933 and
seven years of steady decline from the 1933 peak.
The interrelationship of foreclosures and residential construction is indicated by the second curve on
the chart which runs a course almost exactly contrary to the foreclosure curve. The year 1926
marked the peak of residential building activity and
opened the period of an unprecedented slump in
construction, but with declining foreclosures since
1933, new residential building began to recover
although its volume has not as yet approached the
level of 1926.
January 1941
^^•^^
V
V
\
hes.
\
'l^Rl ZSIDE NTIAl . CO*ISTRU CTION
1 y
>
\
/
1
1
i
\
\
i
\
\
\\
<.
\
\
1926
'27
'28
'29
'30
/
,
/ * ^\
'31
*32
1
mmmmd
*33
/
r/
'34
'35
'36
*37
'38
'39
'40
This chart illustrates the relationship between the volume of residential construction and the volume of nonfarm real estate foreclosures. Both the index
of construction and the index of foreclosures are presented on a logarithmic scale
which measures the rate of change rather than the actual amount of change.
103
PERCENT CHANGE IN
NONFARM REAL ESTATE FORECLOSURES
// MONTH PERIOD ENDING NOVEMBER 30,1940 COMPARED WITH
II MONTH PERIOD ENDING NOVEMBER 30, 1939
FHLB
cTATP
% DECREASE
% INCREASE
bTAIt
DIST.
50
40
30
20
10
0
10
20
hard and fast rules. Without attempting to forecast
the trend of foreclosures, it is safe to state that all
present indications point to a relative stability if not
to a continued recession of foreclosure activity.
|
U.S. AVERAGE
l<
!
COMPARISON OF 1940
fNEW JERSEY
YORK
^.NEW
r
4-
"••
ALABAMA
DIST. OF COL.
FLORIDA
GEORGIA
MARYLAND
NO. CAROLINA
SO. CAROLINA
•
•
.VIRGINIA
'KENTUCKY
^mmmm
•••••
5lTENNESSEE
1939
Comparison of the first 11 months of 1940 with
the same period of 1939 reveals a 26-percent reduction of foreclosure cases in the United States. However, this reduction was largely influenced by the
drop in the number of foreclosures brought by the
HOLC and reflects only in part an improvement of
real estate market conditions. Upon the authority
of an amendment to the Home Owners' Loan Act,
dated August 11, 1939, the HOLC embarked upon
a program of loan extensions to provide further
relief to its home-owner borrowers. The bulk of
these extensions was consummated in the first six
months of 1940 and resulted in a reduction of HOLC
foreclosure activity at least for the period in which
the program was initiated. The influence of HOLC
foreclosures on the total volume of foreclosures is
confirmed by the following figures:
MAINE
MASSACHUSETTS
NEW HAMPSHIRE
RHODE ISLAND
tVERMONT
'DELAWARE
3^ PENNSYLVANIA
.WEST VIRGINIA
WITH
Number
/INDIANA
\MICHIGAN
of nonfarm
real
estate foreclosures,
January throiigh November
f ILLINOIS
L WISCONSIN
Year
MINNESOTA
8" MISSOURI
NO DAKOTA
.SO DAKOTA
1939
1940
_
Percent change
z=
'ARKANSAS
LOUISIANA
MISSISSIPPI
NEW MEXICO
.TEXAS
^ ^ =
•••
r
COLORADO
1 NEBRASKA
IOKLAHOMA
MONTANA
OREGON
H<
UTAH
WASHINGTON
L WYOMING
|
I •Eoal
^
^
^ ^ M
•153!
1
Of the 48 States and the District of Columbia, all but two showed a decrease
in foreclosures in the current year compared with 1939. The rate of decline ranged
from 3.6 percent in Maryland to 62.5 percent in Utah. Montana and Nevada
indicated increases.
104
93, 793
69, 671
32, 121
11, 232
_ _ -25.
7% - 6 5 .
All o t h e r s
0%
61, 672
58, 439
— 5. 2 %
GEOGRAPHICAL VARIATIONS
MmZ.UINM
I2*S CALIFORNIA
lNEVADA
HOLC
The reduction of "all other" nonfarm foreclosures, after elimination of HOLC, was only 5.2
percent—a tapering off in the rate of decline which
is to be expected now that private foreclosures have
receded to a more normal level.
•••^^^^^
1
1
Total
Viewing the geographical distribution of foreclosures, every State in the Union joined in the downward movement from 1939 to 1940 with the exceptions of Montana and Nevada. Generally, however, the Western States showed a more favorable
trend than those in the East. Of the 22 States west
of the Mississippi 14 reported larger than average
reductions, whereas of the 27 States (including the
District of Columbia) to the east, only 10 recorded
declines exceeding the U. S. average. T h e chart on
Federal
Home
Loan
Bank
Review
RATE
OF NON-FARM REAL ESTATE FORECLOSURES JANUARY
(PROJECTED ON AN ANNUAL BASIS)
REPRESENTS
THE
NUMBER
OF
FORECLOSURES
PER
1,000
TO NOVEMBER
1940
HOMES
AVERAGE
4.0
The above map shows graphically the intensity of foreclosure activity in the 48 States and the District of Columbia. By expressing the number of nonfarm real
estate foreclosures as a percent of every 1,000 nonfarm homes existing in the various political subdivisions, the foreclosure rate is found as a common denominator, enabling
State-by-State comparisons of real estate foreclosure activity in nonfarm areas.
page 104 shows the wide range in changes of foreclosure activity from 1939 to 1940 for the 48 States
and the District of Columbia.
Marked geographical differences in the intensity of
foreclosure operations are also indicated in the
accompanying map showing for each State the
number of foreclosures per 1,000 homes, or, in brief,
the foreclosure rate, in the first 11 months of 1940.
The map illustrates clearly that almost all the States
with highest foreclosure rates are located on the
Atlantic Coast, with Massachusetts, New York,
Maine, Pennsylvania, Maryland, and New Jersey
showing rates far above the United States average.
There are heavily concentrated urban areas in most
of these States, and foreclosure studies by county
size groups have demonstrated that the foreclosure
rate is higher as the county becomes more highly
urbanized.
URBANIZATION AS A FACTOR IN FORECLOSURE R I S K
The effect of the degree of urbanization on the
volume of foreclosures has been confirmed each year
since foreclosure studies were first undertaken by
the Division of Research and Statistics. For the
first 11 months of 1940 and 1939 the comparative
foreclosure rates in the different county size groups
were as follows:
105
January 1941
281460—41
Another explanation lies in regional differences of
real estate conditions. As indicated by the experience of private mortgage lenders as well as of the
HOLC, the recovery of the real estate market in
many of the Eastern States has been lagging behind
the recovery in other sections of the country; the
shock of the depression in these States has not as
yet been fully absorbed.
2
Foreclosure rates by size of counties, first 11
months of 1940 compared with 1939,
projected on annual basis
Foreclosures
per 1,000
dwellings
C o u n t y size group
I. INSTITUTIONS ADMITTED TO MEMBERSHIP
IN THE FEDERAL HOME LOAN BANK SYSTEM
BETWEEN NOVEMBER 16 AND DECEMBER 15,
1940
1939
U. S. nonfarm a v e r a g e 1
4.0
5.4
-25. 9
Under 5,000 dwellings
5,000-19,999 dwellings _
20,000-59,999 dwellings
60,000 a n d over _ _
1.8
2.5
4.3
6.4
2. 6
3.4
5. 6
8. 6
— 30. 8
-26. 5
-23. 2
-25. 6
__
_ _
_ _
-
Directory of Member Institutions
Percent
change
1940
_
The study of real estate foreclosures is one of the
many fields in which local research by one association
or by a cooperative group of associations can be
useful for day-to-day lending operations.
DISTRICT NO. 4
MARYLAND:
Baltimore:
Sycamore Permanent Building & Savings Sbciety No. 1 of Baltimore
City, 1706 East Pratt Street.
D I S T R I C T NO. 7
ILLINOIS:
1
It is estimated that about 15 percent of nonfarm foreclosures are on commercial properties.
While the degree of improvement in foreclosure
activity from 1939 to 1940 was about the same in
each county size group, the rate of foreclosures
showed a constant relationship to the county size,
with the larger counties reporting progressively
higher foreclosure rates. Although this would indicate greater foreclosure risks in the more heavily
urbanized areas, it would be rash to conclude that
mortgage loans in urban districts are more hazardous
in the final analysis. The foreclosure risk may be
compensated by other elements such as easier saleability of foreclosed properties in urban areas where
generally the market for real estate is so much larger
and the turnover so much quicker than in smaller
communities.
LOCAL STUDIES N E E D E D
No over-all statistics can relieve the mortgagelending institution from a close scrutiny of all the
risks, personal and property, that make up the
rating of an individual mortgage loan, but the
lender will be greatly aided in his decision by having,
among other things, exact current information on
foreclosure activity in his locality and its various
subdivisions. This, in combination with other real
estate data broken down by urban districts or blocks,
will furnish him with an understanding of his own
local situation which no information of national or
regional scope can provide. On the other hand, the
knowledge of national and State trends will supply
the savings and loan excutive with the needed background for interpreting conditions within his own
community.
106
Beardstown:
The Beardstown Building & Loan Association.
WISCONSIN:
Milwaukee:
Homestead Savings & Loan Association, 308 West North Avenue.
DISTRICT NO. 8
MISSOURI:
Farmington:
The Farmington Home Building & Loan Association.
DISTRICT NO. 12
CALIFORNIA:
Fullerton:
First Federal Savings & Loan Association of Fullerton, 126 West Wilshire Avenue.
WITHDRAWALS FROM THE FEDERAL HOME LOAN BANK SYSTEM BETWEEN NOVEMBER 16 AND DECEMBER 15, 1940
ILLINOIS:
Chicago:
Building & Loan Association " R i p " , 2606 South Homan Avenue (voluntary liquidation).
KANSAS:
Kansas City:
The Citizens Savings & Loan Association, 819 North Seventh Street (voluntary liquidation).
N E W JERSEY:
Jersey City:
The Security Building & Loan Association of Jersey City, 2976 Boulevard (voluntary liquidation).
OHIO:
Cincinnati:
The Congress Building Association Company of Cincinnati, Ohio (sale
of assets to Garden Deposit & Loan Company, Cincinnati, Ohio).
PENNSYLVANIA:
Altoona:
Altoona Building & Loan Association, 1114 Fifteenth Street (sale of
assets and transfer of 50 shares of Bank stock to Eureka Building &
Loan Association of Altoona, Pennsylvania).
Citizens' Loan & Building Association of Altoona, Pa., 1218 Eleventh
Avenue (sale of assets and transfer of 23 shares of Bank stock to Columbia Building & Loan Association of Altoona, Pennsylvania).
Commonwealth Building & Loan Association of Altoona, Pa., 1321 Eleventh Avenue (sale of assets and transfer of 16 shares erf Bank stock to
Reliance Building & Loan Association of Altoona, Pennsylvania).
Enterprise Loan & Building Association No. 2, Central Trust Building
(sale of assets and transfer of 33 shares of Bank stock to Kittanning
Building & Loan Association of Altoona, Pennsylvania).
Franklin Loan & Building Association, 1108 Twelfth Street (sale of
assets and transfer of 15 shares of Bank stock to Eureka Building &
Loan Association of Altoona, Pennsylvania).
The Industrial Building & Loan Association of Altoona, Pa., Penn Central Building (sale of assets and transfer of 18 shares of Bank stock to
Columbia Building & Loan Association of Altoona, Pennsylvania).
Keystone Building & Loan Association, Central Trust Building (sale of
assets and transfer of 30 shares of Bank stock to Kittanning Building &
Loan Association of Altoona, Pennsylvania).
The Liberty Building & Loan Association of Altoona, Pa., 1114 Fifteenth
Street (sale of assets and transfer of 15 shares of Bank stock to Eureka
Building & Loan Association of Altoona, Pennsylvania).
Logan Loan & Building Association, 1108 Twelfth Street (sale of assets
and transfer of 15 shares of Bank stock to Eureka Building & Loan
Association of Altoona, Pennsylvania).
The Mutual Building & Loan Association, Commerce Building (sale of
assets and transfer of 16 shares of Bank stock to Reliance Building &
Loan Association of Altoona, Pennsylvania).
(Continued on p. 110)
Federal Home Loan Bank Review
TRENDS IN THE SAVINGS AND LOAN INDUSTRY
Further consolidation in the number of associations, together with
an increase in the ratio of Federal Home Loan Bank member assets
to total association resources, featured the changes in the savings
and loan industry during 1939. Indications of 1940 trends point
to the first rise in the assets of all operating associations since 1930.
•
SAVINGS and loan operations during the
Thirties were characterized by a continuous
process of consolidation which, although reducing
the number of active associations, has exerted a
wholesome effect on the thrift and home-financing
industry as a whole. This trend toward consolidation is still in progress and figures recently released
by the Division of Research and Statistics indicate
that during 1939 almost 600 associations either went
into liquidation or combined their resources with
those of other institutions through mergers.
I t is estimated that at the end of 1939 there were
7,719 operating associations with assets approximating $5,524,000,000. This may be contrasted
with the picture at the close of the previous year
when there were 8,289 operating institutions with
assets aggregating $5,543,000,000. The decrease of
almost $19,000,000 in total assets is explained by the
fact that the assets of associations going into liquidation during this period are estimated at almost
$200,000,000. Allowing for this change in status, it
is evident that the growth of those institutions
remaining in business was in excess of $180,000,000.
T H E PROCESS OF CONSOLIDATION
The Eighth Annual Report of the Federal Home
Loan Bank Board which has been issued this month
points out that essentially the present trend toward
larger and stronger home-financing institutions,
within the bounds of local conditions, parallels
developments in other sectors of our national
economy, particularly in the banking field. However, the consolidation in banking, extending practically over the last two decades, preceded the comparable process in the savings and loan industry.
In the banking field, failures, liquidations, and
mergers led to a reduction in the number of active
banks throughout the Twenties, despite the general
business expansion in that period. Difficulties of
the early Thirties accentuated the trend toward
January 1941
contraction. As a result, the number of active
banks in 1939 was only half that in 1921—15,035 as
against 30,560.
In contrast, the number of savings and loan associations increased during most of the Twenties,
reaching a peak in 1927, and decreasing slowly in
subsequent years. Only recently has their number
been reduced in substantial measure as a belated
consequence of the depression. The slow effect of
NUMBER OF BANKS AND SAVINGS AND LOAN
ASSOCIATIONS IN THE UNITED STATES
(OPERATING INSTITUTIONS)
BANKS^
;
••••«•••• *•••••••,
L ..«^
1
p- ^
""••••••••••••••••.,
'
HIVU
I
LI/HIV
)AviNL 7&
ASSOUIA I IONS
^•u
C
•«
••••«..
i
1
1 i
11
1921
1
1
'23
iI
1
'25
i
I
I
'27
I
1
I
'29
I
1
I
'31
I
1
I
'33
1
I
I
'35
iI
1
'37
,
J
The above chart illustrates, on a logarithmic scale, the changes in the number
of operating banks and operating savings and loan associations from 1921 to 1939.
In the banking field there was an almost continuous contraction throughout that
period. In contrast, the number of operating savings and loan associations
increased until 1927 and declined slightly thereafter; only since 1935 has the
consolidation process become more pronounced.
107
Table 7.—Comparative statement of condition for all operating savings and loan associations in the
United States, 1939 and 1938
[Source: Annual reports of S t a t e savings a n d loan supervisors for 1939—Summary of m e m b e r s ' a n n u a l reports as consolidated
b y Federal H o m e Loan B a n k presidents]
[Amounts are in t h o u s a n d s of dollars]
All operating associations
1
Increase or decrease
1938 to 1939
Ratio to t o t a l
assets
Item
1938
(8,289)
1939
(7,719)
1939
1938
Amount
Percent
change
ASSETS
Mortgage loans 2
Other loans
Real estate sold on contract
Real estate owned
Investments
Cash
Office building
F u r n i t u r e a n d fixtures
Other assets
T o t a l assets
$4 077, 161
61, 664
192,419
680, 857
151, 008
267, 021
55, 425
5, 312
33, 470
3, 907, 581
67, 698
185,223
890, 094
171, 201
2.14, 641
57, 939
5,089
43, 633
73.80
1. 12
3.48
12.33
2.73
4.83
1.00
0. 10
0. 61
70. 49
1.22
3.34
16.06
3.09
3.87
1.05
0.09
0. 79
+ $169,580
-6,034
+ 7, 196
- 2 0 9 , 237
- 2 0 , 193
+ 52,380
- 2 , 514
+ 223
- 1 0 , 163
+ 4.34
-8.91
+ 3. 89
-23.51
-11.79
+ 24. 40
-4.34
+ 4.38
- 2 3 . 29
5, 524, 337
5, 543, 099
100. 00
100. 00
-18,762
-0.34
$4, 266, 187
363, 809
225, 494
49, 195
117,732
32, 112
469, 808
$4,215,629
401, 423
243, 095
32, 825
131, 226
33, 057
485, 844
77.23
6.59
4.08
0.89
2. 13
0. 58
8.50
76.05
7.24
4.39
0.59
2.37
0. 60
8.76
+ $50, 558
- 3 7 , 614
-17,601
+ 16,370
-13,494
-945
-16,036
+ 1.20
-9.37
-7.24
+ 49. 87
- 1 0 . 28
- 2 . 86
- 3 . 30
5, 524, 337
5, 543, 099
100. 00
100. 00
- 1 8 , 762
-0. 34
LIABILITIES AND CAPITAL
Shares
Deposits a n d investment certificates
Borrowed money
Incomplete loans
Other liabilities 3
P e r m a n e n t reserve, a n d g u a r a n t y stock
General reserves, undivided profits a n d surplus
T o t a l liabilities
1
Excludes State-chartered associations in liquidation (both v o l u n t a r y a n d involuntary) when s t a t u s is so r e p o r t e d in t h e
S t a t e supervisors' reports or by other reliable sources.
2
Includes advances a n d accrued receivables, t h e l a t t e r principally interest due on mortgages.
3
Includes deferred credits a n d specific reserves.
unfavorable economic conditions on urban mortgage
loans and real estate, the long-term character of
investments in savings and loan associations, and
the possibility of restricting repurchases operated to
delay the consolidation in the savings and loan
field and to carry it over to a period of general business recovery.
That the process is not yet completed is evidenced
by the fact that several hundred associations listed
as operating at the close of last year, although not
being formally dissolved, are, in effect, in a state of
gradual liquidation. They make no new loans, receive no new share investments, and restrict their
operations to the collection of interest and principal
on mortgage loans and to the disposition of real
estate owned. Eventually these savings and loan
associations either will cease to operate or will be
merged with more active institutions in their communities.
108
CHANGES D U R I N G
1939
Table 1, which appears above, presents a consolidated statement of condition for all operating savings
and loan associations in the United States at the end
of 1938 and 1939. From this it is evident that the
principal factor in the reduction of assets during this
period was the decline in "real estate owned" of
more than $200,000,000 or nearly one-fourth of the
holdings at the beginning of the year. I t must be
pointed out, however, that this does not imply a corresponding lowering of the total "overhang' 7 of all
savings and loan associations for a considerable portion of the real estate owned was held by institutions
shifting during the year from the operating to the
liquidating classification. The $170,000,000 rise in
outstanding mortgage loans and the $52,000,000 increase in the cash item account for the other major
asset* fluctuations.
Fee/era/ Home Loan Bank Review
On the liability side of the balance sheet, changes
in the individual items were less sharp. Share account investments and loans-in-process were somewhat higher at the end of 1939 but there were declines in all other capital and liability accounts.
A percentage distribution of the asset and liability accounts at the two year-ends indicates a higher
proportion of mortgage loans (70 percent in 1938; 74
percent in 1939), and a drop in the ratio of real estate
owned from 16 percent in 1938 to 12 percent a year
later. Holdings of cash and share investment accounts each showed gains of approximately one percentage point, but all other changes were fractional.
T H E R I S E OF M E M B E R S H I P ASSETS
At the end of 1939, savings and loan members of
the Federal Home Loan Bank System accounted
for the largest proportion of total savings and loan
assets since the organization of this reserve credit
system in 1932. They represented almost exactly
half of the total number of operating associations
and 73 percent of the dollar volume of assets. This
marks continued improvement over the corresponding ratios—47 and 68 percent, respectively—at the
close of the previous year.
Institutions insured by the Federal Savings and
Loan Insurance Corporation represent 28 percent
of the total number of operating associations and
45 percent of their assets as compared with 25 and
38 percent at the end of 1938. With the progress
of the insurance program during 1940, these ratios
are undoubtedly higher at the present time. The
chart on the next page shows the gradual rise of
savings and loan membership assets during the last
eight years compared with the trend of all association
resources.
Again drawing a parallel comparison in the field
of commercial banking, we find that member banks
of the Federal Reserve System accounted for 44
percent of the total number of banks and 84 percent
of commercial banking deposits at the end of 1939.
Banks insured by the Federal Deposit Insurance
Corporation, however, account for 93 percent of
the number and 97 percent of the aggregate deposits
of these financial institutions.
DISTRIBUTION OF ASSETS BY FEDERAL H O M E LOAN
B A N K DISTRICTS
To complete the description of the status of the
savings and loan industry at the close of 1939, Table
2 presents a breakdown of the number and assets
January 1941
of all savings and loan associations by Federal Home
Loan Bank Districts. In addition, the number and
assets of all liquidating associations have been estimated from the best available information included
in State Supervisors' Reports and other sources.
From this analysis, it is evident that the Cincinnati
and New York Bank Districts accounted for 35 percent of the assets of all operating associations.
The Pittsburgh region had the largest number of
institutions, however. There are significant differences in the average size of liquidating and operating
associations which give further indications of the
contrast between these two distinct groups in the
savings and loan industry: the active and the
liquidating institutions. The average size of operating associations was $716,000 while for liquidating
institutions the average was only $157,000.
TRENDS DURING
1940
Because of an inevitable time lag of from three to
10 months beyond the end of the calendar year
before the reports from State authorities governing
nonmember associations are available, it will be impossible to present complete information for 1940
Table 2.—Estimated number and amount of assets
held by operating and liquidating savings
and loan associations during 1939
[Amounts are shown in thousands of dollars]
Operating associations
Liquidating
associations 1
Federal H o m e Loan
Bank District
Number
UNITED STATES. _
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
1—Boston _
2—New Y o r k .
3—Pittsburgh
4—Winston-Salem__
5—Cincinnati
6-—Indianapolis
7—Chicago _
8—-Des Moines
9—Little Rock
10—Topeka
11—Portland
12—Los Angeles
Assets
Number
Assets
7,719 $5, 524, 337 2 , 5 7 8 $404, 814
357
1,494
1,693
705
915
326
835
404
317
316
166
191
625,
966,
519,
497,
967,
276,
518,
261,
218,
235,
152,
286,
246
4
1
048
285 115,329
2
2
592 1 , 281 90, 582
317
451 21, 912
249
63 41, 543
2
239
90 2 29, 395
652
250 27, 724
245
3 31 3 1 2 , 854
039
12, 127
57
144
2,712
43
585
632
8
981
18 50, 000
1
Approximated from best available information included
in 2State supervisors' reports and other reliable sources.
Includes 17 Pennsylvania associations and 4 Indiana
associations
operating under restrictions.
3
Includes for Missouri, in addition to assets of liquidating
associations, the liquidating portion of the assets of 10
operating associations.
109
trends until late in the current year. Estimates of
the progress of member associations, however, which
are available on a monthly basis indicate that many
of the movements prevalent during 1939 were carried
further during the year just closed.
Mortgage-lending volume was a t a new post-depression high level. Institutional holdings of real
estate were further reduced. There were substantial
new investments made in share capital. I n addition,
changes in the membership of the Federal Home
Loan Bank System during the past year indicate
t h a t the process of consolidation is still in progress.
The decline in total savings and loan assets has
become smaller each year. I n 1937, assets were
reduced b y almost $87,000,000. I n 1938, the drop
amounted to $45,000,000, b u t from 1938 to 1939
there was a decrease of only $19,000,000. If this
trend continued during 1940, and information now
available indicates that it did, there is a strong
likelihood that assets of operating associations increased last year for the first time since 1930.
Directory of Member Institutions
{Continued from p. 106)
PENNSYLVANIA (Continued):
Altoona (Continued):
National Loan & Building Association of Altoona, Pa., 1014 Twelfth
Street (sale of assets and transfer of 15 shares of Bank stock to Kittanmng Building & Loan Association of Altoona, Pennsylvania).
The Peoples Building & Loan Association of Altoona, Pa., Penn Central
Building (sale of assets and transfer of 36 shares of Bank stock to Columbia Building & Loan Association of Altoona, Pennsylvania).
Provident Building & Loan Association of Altoona, Pa. (sale of assets
and transfer of 20 shares of Bank stock to Columbia Building & Loan
Association of Altoona, Pennsylvania).
Security Building & Loan Association, Central Trust Building (sale of
assets and transfer of 40 shares of Bank stock to Kittanning Building
& Loan Association of Altoona, Pennsylvania).
Standard Building & Loan Association, 1316 Eleventh Avenue (sale of
assets and transfer of 40 shares of Bank stock to Reliance Building &
Loan Association of Altoona, Pennsylvania).
The Union Building & Loan Association of Altoona, Pa., Penn Central
Building (sale of assets and transfer of 34 shares of Bank stock to Columbia Building & Loan Association of Altoona, Pennsylvania).
Philadelphia:
Preston Building & Loan Association, 1736 West Columbia Avenue
(voluntary liquidation).
Prudential Building & Loan Association of Philadelphia, 10 South
Eighteenth Street (merger with and transfer of 6 shares of Bank
stock to James W. Baird Building Association, Philadelphia, Pennsylvania) .
WISCONSIN:
Milwaukee:
Second Bohemian Loan & Building Association of Milwaukee, Wisconsin, 1414 West Fond du Lac Avenue (liquidation).
II. FEDERAL SAVINGS AND LOAN ASSOCIATIONS
CHARTERED BETWEEN NOVEMBER 16 AND
DECEMBER 15, 1940
D I S T R I C T NO. 2
N E W JERSEY:
ASSET TRENDS OF ALL OPERATING SAVINGS a LOAN
ASSOCIATIONS AND SAVINGS a LOAN MEMBERS OF
THE F. H.L.B. SYSTEM
BILLIONS OF
DOLLARS
8
Summit:
Summit Federal Savings & Loan Association, 24 Beechwood Road
(converted from Summit-Overlook Building & Loan Association of
Summit, N . J . ) .
D I S T R I C T NO. 3
PENNSYLVANIA:
\93Z-\940
Reading:
Reading Federal Savings & Loan Association, 612 Washington Street
(converted from Reading Savings & Loan Association).
CANCELATION OF FEDERAL SAVINGS AND LOAN ASSOCIATION CHARTER BETWEEN NOVEMBER 16 AND DECEMBER
15, 1940
MARYLAND:
ASSETS OF ALL
OPERATING ASSOCIATIO NS
Baltimore:
Lafayette Federal Savings & Loan Association of Baltimore City, 1651
West North Avenue (merger with Occident Federal Savings & Loan
Association of Baltimore City).
f
+ * \
m^+.~~*
0+**'
Y
—"v
MEh4BER S>w a LO AN
ASSOCI ATIONS
III. INSTITUTIONS INSURED BY T H E FEDERAL
SAVINGS AND LOAN INSURANCE CORPORATION
BETWEEN NOVEMBER 16 AND DECEMBER 15,
1940
PENNSYLVANIA:
DISTRICT NO. 3
Altoona:
Columbia Building & Loan Association of Altoona, Pa., 1413 Twelfth
Avenue.
Eureka Building & Loan Association of Altoona, Pa., 1114 Fifteenth
Street.
Investment Building & Loan Association of Altoona, Pa., 805 Twelfth
Street.
Kittanning Building & Loan Association of Altoona, Pa., Twelfth Avenue, between Eleventh and Twelfth Streets.
Reliance Building & Loan Association of Altoona, Pa., 1313 Twelfth
Avenue.
Philadelphia:
Olney Building & Loan Association, 5519 North Fifth Street.
ALABAMA:
DISTRICT NO. 4
Decatur:
First Federal Savings & Loan Association of Decatur, 524 Bank Street.
NORTH CAROLINA:
Belmont:
Belmont Building & Loan Association, Bank of Belmont Building, Main
Street.
While total assets of all operating savings and loan associations have been
declining as the result of economic conditions, aggregate assets of member associations of the Federal Home Loan Bank System have been on the increase.
For one reason, a growing proportion of the total industry has come to be represented in the Bank membership. In addition, many savings and loan members
of the Bank System have made considerable progress in the past few years.
no
ILLINOIS:
DISTRICT NO. 7
Chicago:
Investors Savings & Loan Association, 4200 Lawrence Avenue.
D I S T R I C T N O . 12
CALIFORNIA:
San Francisco:
California Savings & Loan Company, 620 Market Street.
Federal Home Loan Bank Review
«
«
«
FROM THE MONTH'S NEWS
VITAL QUESTIONS: " F o u r
questions
t h a t seem to be uppermost in t h e minds of
our officers a n d directors t o d a y are t h e
following: (1) W h a t should be t h e policy
concerning a cash position? (2) W h a t is
t h e probable t r e n d in interest r a t e on
mortgages? (3) W h a t is our responsibility in National Defense Housing?
(4) W h a t will be t h e effect of t h e war on
savings a n d l o a n ? "
Unburdening the borrower
" I n my own view, interest rates have always been high. Why
should we place unnecessary burdens on the borrower when he is the
man who supports us all? He enables banks to pay dividends to
their stockholders. He provides employment. He is the optimist
among us. If he wasn't, he wouldn't borrow at the lenders' terms,
hoping that he could beat them. He wouldn't undertake the things
that built our country. He would want you to move over and give
him room alongside of you so that he could ride easy too."
Savings and Loan News, November 1940.
BUILDING IN BRITAIN: " T h e Governm e n t announced during t h e m o n t h its
decision t o control civil building, a n d t o
p u t into effect a licensing system as from
7th October next . . . .
Under t h e new
control, licences will not be required for
operations paid for in whole or in p a r t
by t h e Government, for operations costing less t h a n £500, or for works of m a i n tenance, running repairs or decoration."
The Building Societies' Gazette,
October 1940.
FACTS: "However difficult generalization
a b o u t the 'home building i n d u s t r y ' m a y
be, three facts w a r r a n t close scrutiny:
(1) more people are buying ready-built
houses t h a n houses built to order; (2)
more a n d more houses are being built in
groups; and (3) most houses built for sale
or rent are being built in groups. These
three statistics merely serve t o d o c u m e n t j
t h e i m p o r t a n t fact t h a t economies in- j
herent in rationalized production are as
a t t r a c t i v e in t h e residential field as in a n y
other. . . ."
Architectural Record, November 1940.
RATE STRUCTURE: " M a n y regard
the
present r a t e structure as artificial, and it
is, when measured by t h e s t a n d a r d s of a
free market. Call it 'artificial,' 'unn a t u r a l , ' 'prescribed' if you will, b u t , a t
t h e same time, be careful not to misjudge
its persistence or its possible perpetuity.
D o not forget t h a t t h e Federal L a n d
Banks, which were set up in 1916, completely revamped t h e financial p a t t e r n for
agricultural loans a n d gave rise t o a
m a r k e d lowering of t h e level of interest
rates charged. Few would deny t h e
permanence of this change."
Dr. Wm. H. Husband, member of the Federal Home Loan
Bank Board, before the Allegheny County League of
Building and Loan Associations, Pittsburgh, Pa., Nov. 8,
1940.
January 1941
Jesse H. Jones, at the annual convention of Association of Life Insurance Presidents, New York
City, Dec. 5, 1940.
Supervisory activities . . . . .
" T h e limits to the results which can be expected from the supervisory activities of the Board should be noted. Supervisory standards, no matter how well drawn, cannot insure permanent successful
operation of individual institutions. Such standards cannot, for
example, remove home-financing institutions from the effect of real
estate and economic trends. I n the last analysis, the success or
failure of supervision must be measured in terms of the degree of
competence with which the savings and loan industry meets the
thrift and home-financing needs of the country."
Eightn Annual Report of the Federal Home Loan Bank Board, 1940.
POPULATION INCREASES, BY DECADES
^^^^•••••iliBillllilliilB
HI
IHI
i;35ii
IM
IM
mm
179GH800J
1800-1810
leio-isaoi
1820 -1830*
I830-I84O'
1840-1350
1850-1860
1860-1870:
i87Q~l$80i
I88O-109OJ
1890-1900^
1900^1910]
19J0-19B0
1920*-1930;
1930-1940
$wr&> Bureau of fhe Census
The above chart illustrates the slowing down of population growth in the United States during the
past few decades. The percentage increase from 1930 to 1940 was only 7 percent, the smallest gain in the
history of the country and less than half as much as in each of the preceding decades. Statisticians
predict that the rate of population growth will continue to decline with an increasing proportion of aged
people and a decreasing proportion of children in the total population.
Basic data from the Bureau of
the Census.
III
LAND CONTRACTS IN A REAL ESTATE SALES
PROGRAM
In those States where foreclosure procedures are cumbersome and expensive, the land or sales contract offers great advantages because
of the comparatively simple methods by which it can be terminated
in case of default.
These advantages are demonstrated by the experience of the HOLC which has made a comparative study of the
costs and procedures involved in mortgage foreclosures and in the
repossession of property sold on contract.
VOLUME OF R E A L E S T A T E SOLD ON CONTRACT
•
I N the real estate sales programs developed by
sayings and loan associations in the past few
years, property sales " o n contract" have had an
important place. I n the combined balance sheet of
savings and loan members of the Federal Home
Loan Bank System, the item "real estate sold on
contract" represented $155,000,000 at the end of
1939 compared with little over $90,000,000 at the
close of 1936, and the ratio of this item to total assets
increased from 2.97 percent to 3.84 percent during
that 3-year period. As real estate owned in the
same period declined by about $120,000,000, it is a
fair conclusion that a large portion of aggregate
property sales has been by means of land contracts.
This experience of savings and loan associations
is corroborated by the record of the Home Owners'
Loan Corporation, which in recent years has been
the largest single seller of 1- to 4-family dwellings in
the real estate market. Of the 122,823 properties
sold by the HOLC through November, 47,788,
or 38.9 percent of the total, was disposed of through
the medium of contract sales.
upon payment of a fixed price in periodical installments. The vendor retains the legal title, but the
purchaser has possession of the property while payments are being made. I n many cases, the contract
permits the vendee after payment of a more or less
substantial portion of the principal indebtedness to
obtain a deed and to secure the balance by a mortgage
security instrument.
The great advantage of the land contract over the
mortgage is that the former anticipates a peaceful
and voluntary relinquishment of the purchaser's
rights in the property upon default and notice by the
vendor of the termination of the contract. Experience of financial institutions supports the conclusion
that in very few, probably not 10 percent, of the
defaulted cases, is it necessary for the vendor to
REAL ESTATE SOLD ON CONTRACT AS A PERCENT OF
TOTAL ASSETS OF MEMBER SAVINGS AND LOAN ASSOCIATIONS
!
O
2
4
112
16
18
20
NEVADA
WYOMING
^
™^^
^ ^ ^ ™
INDIANA
^^^^Z
^•^•1
COLORADO
The extent to which this medium is being used
varies from State to State. Land contracts are most
frequent in those States where foreclosure costs are
heavy, where the time required to complete foreclosure is excessive, and where redemption periods
are long. I n such States, the instrument of contract
sale enables associations to avoid both the excessive
delays and costs involved in ordinary foreclosure
proceedings should it be necessary to reacquire the
property.
In contrast to the outright sale of real estate
against a purchase money mortgage, the land contract provides for the conveyance of the property
14
MICHIGAN
KANSAS
ADVANTAGES OF THE LAND CONTRACT
IN SELECTED STATES
PERCENT
6
8
10
12
UTAH
^^
WASHINGTON
ILLINOIS
IOWA
MONTANA
OREGON
MINNESOTA
WISCONSIN
U.S. AVERAGE
W///
/s///\
In the 14 States shown in the above chart, the ratio of "real estate sold on
contract" to total assets of member savings and loan associations exceeded 5
percent. Almost all of these States are in the Middle West, West, and Southwest.
In the remaining States, real estate sold on contract represented from 0.04 percent
to 4.97 percent of aggregate assets.
Federal Home Loan Bank Review
institute legal proceedings, except in some States
where the land contract is recorded and where it is
necessary to clear the record. On the other hand,
the mortgage loan contract by its very form anticipates a non-voluntary liquidation—a court foreclosure or at least a foreclosure by power of sale.
As a result, the voluntary liquidation of a mortgage
loan is uncommon, occurring in less than one-fifth of
the cases.
The advantage of the land contract to the purchaser lies in the better terms which the seller is able
to offer because of the elimination of the hazards
involved in long redemption periods and high foreclosure costs. This expresses itself especially in
lower down payments than would otherwise be
possible. In States where foreclosure proceedings
are cumbersome and expensive and where periods of
redemption extend over 12 or 24 months, property
sellers necessarily require a larger margin of safety
than elsewhere, if they retain a mortgage. The land
contract permits them to adjust sales conditions
more nearly to the liberal terms common in presentday real estate transactions, and enables families of
small resources to work toward the goal of home
ownership.
GEOGRAPHIC CONCENTRATION
Generally, the States having long redemption
periods, complicated foreclosure proceedings, and
high foreclosure costs are concentrated in the
Middle West, West, and Southwest. I t is in these
regions that savings and loan associations hold a
comparatively large proportion of their total assets
in real estate sold on contract (see the chart on page
112). By and large, the HOLC likewise restricts
its contract sales to these areas and to the State of
New York where foreclosure costs are extremely
high although the time to accomplish foreclosure is
about normal and no redemption provision exists.
In spite of this concentration, land contracts are
not unusual in other States. Generally, financial
institutions prefer contract sales to outright sales
in cases where the purchaser's financial resources
permit only such small down payments that immediate transfer of title would be hazardous.
E X P E R I E N C E OF THE
HOLC
The table on page 114 shows the procedure and
costs involved in the liquidation of land or sales
contracts in the 20 States in which the HOLC has
used this instrument extensively in the disposition
January 1941
281460—41
3
MORTGAGE FORECLOSURE COSTS COMPARED WITH THE
COSTS OF TERMINATING LAND CONTRACTS
FORECLOSURE COST
40
COS"1" 0 F TERMINATING
LAND CONTRACTS
W/;;JJ/A
V//////A
D O L L A R S
60
80
100
This chart illustrates the considerable differences in foreclosure costs on a
mortgage contract and on a land contract in 11 States for which over-all comparisons are possible. Cost figures are based on HOLC experience and represent
the combined court and average attorney costs.
of its real estate owned. For purposes of comparison, the table also presents data on ordinary foreclosure proceedings including costs, 1 time to complete
foreclosure action, and redemption periods for the
same States. All these data are based on the extensive experience that the HOLC has accumulated
over a number of years.
To illustrate the large difference in foreclosure costs
on a regular mortgage contract and on a land or
sales contract, the chart above presents average
cost figures for a few States in which over-all comparisons are possible. The bars in the chart represent the combined court and attorney costs. While
court costs are the same for all parties, the attorney
costs paid by the HOLC may not in all instances be
equal to the corresponding costs to other mortgage
lenders but the comparison of aggregate costs indicates at least the order of magnitude and will be
helpful to savings and loan executives when they
explore the possibilities of a more extensive use of
land contracts in their real estate sales programs.
COMPARISON W I T H MORTGAGE
FORECLOSURE
A study of the table reveals that in all States
listed, the time to reacquire property sold on contract
1
Total costs of ordinary mortgage foreclosure, as presented in the table, include
court costs and attorneys' fees. The latter are averages; in some States the fees
vary in accordance with the amount of the mortgage to be foreclosed.
113
Cost and procedure in the foreclosure of land contracts, based on H O L C experience
Costs, time to acquire, and redemption periods compared with o r d i n a l mortgage foreclosure
L a n d or sales contracts
Mortgage instruments
State
T y p e of i n s t r u ment
M e t h o d o£r©acquisition
T i m e to a c q u i r e
C o u r t costs
A t t o r n e y ' s fees
Redemption
Arizona
Installment
tract.
con-
Forfeiture
ceedings.
pro-
See r e m a r k s
$7.50.
$75 u n c o n t e s t e d ;
$100 c o n t e s t e d .
Colorado
Installment
tract.
con-
Forfeiture
ceedings.
pro-
30 days
$10
Salaried personnel- N o n e
L a n d contract
Forfeiture
ceedings.
pro-
See r e m a r k s . - - . . . See r e m a r k s
Installment
tract.
con-
Forfeiture
ceedings.
pro-
00 days
Lease w i t h o p t i o n
to p u r c h a s e .
Eviction
ceedings.
pro-
Iowa.,
Installment
tract.
con-
Forfeiture
ceedings.
pro-
Kansas
Installment
tract.
con-
Idaho
__
Illinois
Indiana
Michigan
.
__
. _
Remarks
T i m e to foreclose d e p e n d s on
a m o u n t p a i d b y v e n d e e scaled
from 30 d a y s for less t h a n 20 perc e n t to 9 m o n t h s for 50 p e r c e n t or
more.
None
7
months,
10 d a y s .
6 months.
15 m o n t h s ,
6 days.
12 m o n t h s .
$2.50
$35
None
T h e C o r p o r a t i o n used salaried personnel. If a t t o r n e y s were used,
$35 w o u l d b e t h e fee as p e r a p p r o v e d schedule.
349.59
19 m o n t h s ,
12 d a y s .
15 m o n t h s .
30 days
$7.50 J. P . C t .
$12.50 Cir. a n d
Sup. Ct.
$15,* $20,** $25.*** N o n e
See r e m a r k s .
**In M a r i o n L a k e , Allen, S t . Joseph, V a n d e r b u r g h , a n d Vigo
C o u n t i e s . *A11 other c o u n t i e s .
***Change of v e n u e .
186.19
14 m o n t h s ,
1 day.
32 days
$2.45
$10
None.
123.08
15 m o n t h s ,
24 d a y s .
12 m o n t h s .
Strict foreclosure. 2 m o n t h s , 22 d a y s . . $11.25
$60
See r e m a r k s
Period of r e d e m p t i o n fixed b y i
court m a y or m a y n o t coincide
w i t h s t a t u t o r y period of r e d e m p tion.
92. 95
13 m o n t h s ,
24 d a y s .
6
Forfeiture
ceedings.
pro=
4 m o n t h s , 15 d a y s . . $11.50
$25
90 days*
*This period is t h e t i m e l i m i t e d to
p a y a m o u n t in arrears a n d reinstate contract.
86.46
14 m o n t h s ,
2S d a y s .
12 m o n t h s .
pro-
36 days . . .
$4.89.
$25
30 a n d 90 d a y s * . *30 d a y s allowed if p e r s o n a l l y
served; 90 d a y s allowed if notice
to q u i t is served b y p u b l i c a t i o n . |
96.79
13 m o n t h s ,
20 d a y s .
12 m o n t h s .
$34.25
$50
See r e m a r k s
W h e n trial is held a n d decree entered, j o u r n a l e n t r y is m a d e , sett i n g t i m e to redeem or be forever
barred.
107.90
12 months,
22 d a y s .
None.
*In o u t l y i n g counties, w h e n a m o u n t
of business w a r r a n t s , j u d g e from
a n o t h e r c o u n t y in s a m e district
holds court.
209.79
15 m o n t h s ,
2 days.
12 m o n t h s .
*In o u t l y i n g counties, w h e r e t e r m s
of court are infrequent, length of
t i m e w o u l d be s o m e w h a t increased.
191.85
14 m o n t h s ,
27 d a y s .
9 months.
Installment
tract.
con-
Strict foreclosure- 3 m o n t h s , 18 d a y s .
Installment
tract.
con-
Forfeiture
ceedings.
Installment
tract.
con-
Ejectment
-.
-
o
3
pro-
40 days in W a s h o e
County.*
$30
6 months*
$25
.
.
. . . $75 u n c o n t e s t e d ;
$100 contested.
None.
. _ $25 u n c o n t e s t e d ;
$50 c o n t e s t e d .
N o n e . _.
Q
103.36
152.63
Nebraska
TO
months,
3 days.
So far t h e C o r p o r a t i o n h a s r e a c q u i r e d no properties on V e n d e e
A c c o u n t s in I d a h o .
Forfeiture
ceedings.
<
9
None
C o n t r a c t for deed-
00
Q
$197.81
Redemption
periods
See r e m a r k s . . ._
Minnesota
o
Average A v e r a g e t i m e
total
to complete
costs
foreclosure
.
__-
a n d 18
months.
is considerably shorter than the time to complete
ordinary mortgage foreclosure proceedings. In New
York, for example, the difference is between 20 days
and almost four months; in the State of Washington,
between 30 days and more than 16 months; and in
the State of Wisconsin, between less than six months
and almost 17 months. As to costs, the savings in
the termination of land contracts compared with
mortgage foreclosures range from almost $20 in
Oregon to $312 in Illinois; in the latter State the
foreclosure of a land contract cost the HOLC little
more than 10 percent of the outlays for the foreclosure of a mortgage.
In regard to redemption periods, 13 of the 20
States included in the table provide for no redemption in the termination of a land contract, and those
in which redemption is stipulated by law or by court
usually have redemption periods not exceeding 90
days. In contrast, all of the 20 States with the
exceptions of Indiana, Nebraska, and New York,
provide for long redemption periods ranging from
six to 18 months in the case of regular mortgage
foreclosures.
What the Housing Census Reveals . . .
•
T H E Bureau of the Census continues to release
final vacancy figures as of April 1, 1940, for
States, counties, and towns (see December issue,
page 76). Generally, urban places show considerably lower vacancies than rural areas, and the reports
thus far released indicate that small vacancy ratios
prevailed in urban places last April. Scattered
WPA surveys undertaken since then reveal a further
reduction of vacancies attributable in part to the
economic effects of the defense program.
Vacancy data released by the Census Bureau
include the number of unoccupied dwelling units
held for sale or rent. Summaries are given below
for seven States:
Arizona: Vacancy ratio in all urban places, 6.3 percent; in
Phoenix, 6.0 percent; and in Tucson, 5.5 percent.
Idaho: Vacancy ratio in all urban places, 3.6 percent; and
in Boise City, 4.3 percent.
Montana: Vacancy ratio in all urban places, 4.0 percent;
in Butte, 3.4 percent; a n d in Great Falls, 2.2 percent.
North Dakota: Vacancy ratio in all u r b a n places, 2.6 percent; in Fargo, 2.7 percent; and in Bismarck, 4.4 percent.
South Dakota: Vacancy ratio in all urban places, 3.4 percent; in Sioux Falls, 2.4 percent; and in Aberdeen, 2.9 percent.
Utah: Vacancy ratio in all urban places, 3.6 percent; in
Salt Lake City, 3.8 percent; and in Ogden, 3.5 percent.
Wyoming: Vacancy ratio in all urban places, 5.4 percent;
a n d in Cheyenne, 5.1 percent.
115
«
«
<c
MONTHLY
SURVEY
»
»
Highlights
I. Residential construction which had been expanding rapidly since midyear received a setback in November.
A. Less than 24,000 dwelling units were placed under construction in cities of 10,000
in November 1939.
or more population, compared with
B. The reduction in building volume—greater than normally expected for this season—was due to declining private
well as to a let-up in defense and USHA housing.
27,500
activity as
II. Building costs continued to move upward.
A.
The index of wholesale building material prices approached the 1926
level.
B. Combined material and labor cost for the construction of the standard house rose more than 4 percent from July to November
and stood 10.6 percent above the average of 1936.
HI. Mortgage-financing
activity
was sharply reduced, with a pronounced drop in construction loans accompanying the slump in residential
building.
A. The aggregate volume of recordings for nonfarm mortgages under $20,000
was 16 percent below
B. Loans made by all savings and loan associations in November dropped below the $100,000,000
the level of the same month in 1939.
October.
mark but were still above
IV. General business conditions showed further improvements on a broad front, with sharp increases in November and December retail sales*
RESIDENTIAL
BUILDING ACTIVITY AND SELECTED INFLUENCING FACTORS
I926 = 100
600
1932
116
1933
1934
1935
1936
1937
Federal
1938
Home
1939
1940
Loan Bank Review
ESTIMATED NUMBER AND COST OF FAMILY DWELLING UNITS PROVIDED IN ALL CITIES OF 10,000 OR MORE POPULATION
Source: Federal Home Loan Bank Board. Compiled from residential
OF UNITS
NUMBER
building permits reported to U.S.Dept. of Labor
OF DOLLARS
COST
45
40
120
35
100
30
1940-
/
/ \\
25
L
s
20
w^\
15
\\
80
•*""""*
s
/\
\
J T ^
/ 1 ""
^N/939
^\
40
s
1940 ~2^
i
\y
60
"~"""~f"*
->^-•\S^I938
i
10
^
.-.---*
t
1939
*
. ' V S > 1938
*\,
*•*
.-"" »--"""
\/
20
5
JAN.
FEB.
MAR. APR.
MAY
JUN.
SEP.
JUL.
OCT.
NOV.
DEC.
0
FEB.
MILLIONS
OF DCLLARS
45
/9
200
1939
30
JUL.
AUG.
SEP.
OCT.
V''' "*"•**—.
^N
^
•sv-
1938*
20
/
%
^*-
10
^-^
/
jr!939^
160
)-+*-—
J
NOV.
ADVANCES OUTSTANDING AT END OF MONTH
180
25
\
15
JUN.
220
»o^
35
i
APR. MAY
FEDERAL HOME LOAN BANKS
CONSTRUCTION LOANS MADE BY ALL SAVINGS a LOAN ASSOCIATIONS
MILLIONS
DLLARS
OF UX
40
MAR.
S*I940
140
/
120
5
%IC.
100
JAN.
FEB.
MAR.
APR.
MAY
JUN.
JUL.
AUG
SEP
OCT
NOV.
DE:c
DEC. " JAN.
FEB.
MAR
APR. ~ MAY
~JUN.
JUL. ~AUG.
SEP
OCT.
NOV. ~ DEC.
nummary
•
W H I L E general business activity continued to
improve, November indices for home construction and financing pointed downward rather than
upward, even if the normal seasonal decline is
taken into account.
Residential building activity was drastically reduced in November—the first month since midyear
in which fewer dwelling units were placed under
construction than in the corresponding month of
1939. Privately financed construction dropped more
than is usual for November, and this decline was
aggravated by an unexpected let-up in defense
housing and USHA activity. As a result, the seasonally adjusted index for total residential construction was 23 percent below October 1940 and 14
percent under November 1939.
Building costs continued to rise. The wholesale
building material price index of the U. S. Department
of Labor was higher in November than in any single
month since 1926. Dealers' prices for materials used
in the construction of the standard house again
January 1941
moved upward by more than 1 percent, while labor
costs increased more than 2}{ percent over October.
Relative stability of rentals, in the face of increased
building costs during the past four months, may have
acted as a negative factor in the residential construction field. Although spotty rent increases are reported in various defense areas, the U. S. rental
index of the National Industrial Conference Board
for November stood less than 1 percent above July,
whereas combined material and labor costs for home
construction rose in excess of 4 percent during this
period.
As evidenced by mortgage recordings, homefinancing operations were reduced more than normally expected in November. The drop in the volume of mortgages recorded was 16 percent from the
previous month. All classes of lenders shared in this
decline, but savings and loan associations suffered a
greater reduction in lending activity than any other
group; so far this year, however, they have financed
22 percent more loans than in the corresponding
II7
[1926 = 100]
Type of index
Residential construction !
Foreclosures (metro, cities).__
Rental index (NICB)
Building material prices
Total income payments 2
Industrial production i
Manufacturing employment..
Manufacturing pay rolls
Average wage per employee..
1
2
Nov.
1940
46.0
94.0
86.4
98.9
93.4
137.5
108.9
110.0
101.0
Oct.
1940
Percent
change
Nov.
1939
59.5
106.0
86.3
97.8
92.5
134.4
108.2
109.9
101.6
-22.7
-11.3
+0.1
+1.1
+1.0
+2.3
+0.6
+0.1
-0.6
53.3
129.0
85.6
93.0
88.5
129.2
102.1
97.7
95.7
Percent
change
-13.7
-27.1
+0.9
+6.3
+5.5
+6.4
+6.7
+12.6
+5.5
Adjusted for normal seasonal variation.
1929=100. Adjusted for normal seasonal variation.
period of last year—a much greater increase than was
shown by any other class of mortgage lenders.
Each class of new loans made by savings and loan
associations was reduced in volume during November,
with declines ranging from 22 percent for construction loans to 7 percent for the miscellaneous loan
classification. The unusually heavy drop in construction loans was in line with reduced home-building
volume.
General Business Conditions
•
AS T H E year 1940 drew to a close, business
activity continued to advance in all sectors of
our economy. Most of the important industries
showed a strong resistance to the usual seasonal
downturn, and the November index of industrial production, after adjustment for seasonal variation, rose
to 138 (average 1926 = 100) compared with 134 for
October.
Total income payments, as reported by the U. S.
Department of Commerce, were up 5.5 percent compared with November 1939 and at a level exceeding
even the previous post-depression peak of June 1936
when the soldiers' bonus payments were made.
(This important index of general business is included
for the first time in the table at the top of this
column and will be presented each month.)
Effects of defense orders were most marked in the
durable goods industries where output in many lines
reached capacity limits. However, other industries
likewise registered sharp gains; in cotton textile mills
activity approached new high levels and in woolen
mills production was close to the previous peak
reached early in 1937. The automobile industry experienced the best November in its history, with output approximating 500,000 units, and there was little
indication of the usual let-up in December.
Gains in employment and family incomes were
reflected in sharp increases of retail sales. The Fed118
eral Reserve Board's seasonally adjusted index of
department store sales advanced 7 points from October to November and reached the highest level since
1930; preliminary December reports showed record
volumes in holiday buying.
A basically favorable business situation was indicated in the latest Industry Survey of the U. S. Department of Commerce for October. In that month,
the index of new orders advanced 10 points, the index
of shipments, 3 points, and the index of inventories,
2.2 points. This was the largest increase in manufacturers' inventories since the current industrial expansion begun in May.
Wholesale commodity prices, which by the end of
November had advanced about 3 percent since
August, showed comparatively little change in the
four weeks from November 15 to December 15.
However, a steady increase of sensitive commodity
prices indicated that some general upward movement is in progress.
In the money market, Federal Reserve member
banks reported further expansion of loans to business, bringing the gain since August 21 close to
$500,000,000. Interest yields continued downward
with the average yield on Treasury bonds due in
12 years or more reaching a new low of 1.87 percent
for the week ending December 14. This compares
with 2.37 percent for the corresponding week in
1939.
Residential Construction
[Tables 1 and 2]
•
D U R I N G the month of November both privately financed and publicly financed residential construction showed a drastic decline. In cities
of 10,000 population and over, building permits
were issued for less than 24,000 dwelling units—a
drop of nearly 4,000 units from the corresponding
month of 1939 and of about 12,000 units from
October 1940. Each type of dwelling shared in the
November decline.
For the 11-month period of 1940 more than
290,000 dwelling units were provided in cities of
10,000 population and over, which represents a gain
of 12 percent over the same period of last year. The
increase in private building was relatively larger
than in public construction.
During the month, approximately 4,800 units
with a valuation of $13,900,000 were built under the
sponsorship of Government agencies in cities with
10,000 or more population:
Federal Home Loan Bank Review
Government agency
Number
of units
provided
U. S. Housing Authority. _
Defense housing, Navy Department. _ _
_ __ __ __
TotaL
_ _ ._
Permit valuation
2, 665
$8, 400, 400
2, 100
5, 495, 000
4,765
13, 895, 400
Foreclosures
[Table 10]
•
I N keeping with the general downward trend of
the past several years, nonfarm real estate foreclosure cases during November were estimated at
5,832, the least for any month thus far since the inception of foreclosure statistics, with the exception
of the short month of February 1940 which was lower
b y only 14 cases.
Foreclosure activity was 24 percent below that
for November 1939. Each of the county size groups,
each Federal Home Loan Bank District, and all but
nine scattered States reported fewer foreclosures this
November than for the same month last year.
Foreclosure cases for the first 11 months of this
year were 26 percent below those for the same period
of 1939. Only two States (Montana and Nevada)
showed increases, and both have foreclosure rates
below the national average.
For metropolitan communities, the foreclosure index dropped six points below its base (average month
of 1926) showing the smallest monthly number in
over 12 years. This performance compared most
favorably with the customary seasonal increase of
1.3 percent. Of the 85 communities reporting for
both October and November, 55 showed decreases
and 25 increases, while five reported no change in
foreclosure activity from the preceding month.
Building Costs
[Tables 3, 4, and 5]
•
WHOLESALE building material prices continued
to rise and the composite index of the U. S. Department of Labor (1926 = 100) reached 98.9 at the end
of November—a gain of 6.3 percent over last year.
Lumber showed the greatest increase of any individual item.
Dealers 7 costs of materials used in constructing the
standard 6-room frame house rose 1 percent, thus
projecting the upward trend started in July. The
January 1941
materials used in this structure currently cost 8 percent more than during the average month of 1936.
Labor costs for the standard house likewise continued
to increase. The November index showed a gain of
2.6 percent over October and was 16 percent in
excess of the 1936 average.
An analysis of those communities reporting in
December reveals that during the preceding quarter,
total home construction costs rose by at least $100
in 19 of the 29 reporting cities, while only 2 cities
(Portland, Maine, and Salisbury, North Carolina)
reported declines, each of which amounted to less
than $50.
Construction costs for the standard house
[Average month of 1936 = 100]
Element of cost
Material.
Labor
__
Total
Nov.
1940
Oct.
1940
Percent
change
107.8
116. 3
106.5
113. 3
+ 1.2
+ 2.6
104.4
110.8
+ 3. 3
+ 5. 0
110.6
108. 7
+ 1.7
106.5
+ 3.8
Nov. Percent
1939 change
New Mortgage-Lending Activity of
Savings and Loan Associations
[Tables 6 and 7]
•
T H E rising trend in the monthly volume of new
mortgage loans made by all savings and loan
associations, which was evident during the first 10
months of this year, received a setback in November.
The drop from the previous month was $20,000,000
or 17 percent—more than the normal seasonal
decline.
New loans for the construction of homes and for
the purchase of existing dwellings, which have
New mortgage loans distributed by purpose
[Amounts are shown in thousands of dollars]
Purpose
Construction _
Home purchase
Refinancing
Reconditioning
Other purposes
Total
Nov.
1940
Oct.
1940
$32, 584 $41, 610
33, 875 40, 771
14, 441 16, 840
4,869 5, 756
8,798 9,423
Percent
change
Nov. Percent
1939 change
- 2 1 . 7 $26, 607 + 22.5
- 1 6 . 9 30, 434 + 11.3
- 1 4 . 2 15, 445 - 6 . 5
- 1 5 . 4 4,720 + 3.2
- 6 . 6 8,870 - 0 . 8
94, 567 114, 400 - 1 7 . 3 86, 076
+ 9.9
II9
Mortgage Recordings
[Tables 8 and 9]
•
ALTHOUGH a seasonal let-up in the volume
of mortgage recordings is usually to be expected
towards the close of the year, the drop of 16 percent
that occurred in November appears to have been
greater than normal. Savings and loan associations,
which have continued as leaders in the financing of
nonfarm mortgages of $20,000 and less, suffered a
reduction of 18 percent from October, or more than
was shown by any other class of lender. Each class
of lender, however, registered an October-to-November decline in excess of 10 percent.
Each of the 12 Federal Home Loan Bank'Districts
and practically every State in the Union reported
curtailed recording activity in November, although
in most areas activity was still well above the same
month of 1939.
During the January-November period of this year,
$3,700,000,000 in mortgages was recorded throughout
the country, within the $20,000 limitation; or 16
percent more than in the same interval of 1939.
Savings and loan associations, which accounted for
30 percent of all recordings last year, increased their
proportion of the total to 32 percent for 1940 to date.
throughout the year contributed a more than proportional share of the generally increasing volume,
reversed somewhat during November. In dropping
22 and 17 percent, respectively, from October, these
two loan classifications were responsible for $16,000,000, or four-fifths of the reduction in total loans.
Loans in the " other purpose" classification declined
7 percent, thus showing the greatest resistance to the
current slow-down in home-financing activity.
With minor exceptions, each type of savings and
loan association in each of the Federal Home Loan
Bank Districts showed a smaller volume of new
home-financing than in October, indicating the broad
geographical nature of the drop. For the United
States as a whole, nonmembers, Federals, and Statechartered member institutions showed declines from
the previous month of 22, 19, and 13 percent,
respectively.
Despite the recent reduction in lending activity,
the 11-month comparison of 1940 with 1939 remains
favorable. The $1,111,000,000 in new home-mortgage credit extended by all savings and loan associations during the first 11 months of this year
represents an increase of $208,000,000, or 23 percent,
over the corresponding 1939 period.
120
Mortgage recordings by type of mortgagee
[Amounts are shown in thousands of dollars]
Type of lender
PerPerPercent cent
cent
of
of
Cumulative
change Nov.
total
recordings
from
1940 (11 months) recordOct. amount
ings
1940
Savings and loan asso-18.2
ciations
Insurance companies— - 1 7 . 5
Banks, trust companies. - 1 5 . 7
Mutual savings banks. _ - 1 0 . 1
-12. 9
Individuals _
Others _ _
_ _ _ -14. 6
Total
-15.8
31. 2 $1, 184, 863
305, 058
8. 5
922, 415
25.4
155, 041
4. 6
588, 386
15. 7
548, 981
14. 6
32. 0
8.2
24. 9
4. 2
15.9
14. 8
3, 704, 744
100.0
100.0
Federal Savings and Loan System
[Table 12]
•
AT the close of November 1,438 savings and
loan associations with assets of $1,830,000,000
were operating under Federal charter. This represents a net growth of 37 associations and $291,000,000
Federal Home Loan Bank Review
in assets since November 1939. Practically all
associations which have been admitted to the Federal
system during the 12-month period have been converted from State charters. Mergers and consolidations among existing Federal associations have
strengthened their financial structures, although
slowing down the growth in the number of these
institutions.
Federal savings and loan associations, which so
far this year have loaned more money for home
mortgages than either State-chartered members or
nonmember associations, experienced an unusually
heavy decline in lending activity during November.
Total new loans made during that month amounted
to only $38,900,000 as compared with $48,307,000
in October, but they exceeded by more than $4,000,000
the lending volume registered for November 1939.
Progress in number and assets of Federals
[Amounts are shown in thousands of dollars]
Number
Class of association
Nov.
30,
1940
Oct.
31,
1940
633
805
Total. __ 1,438
New_ _
Converted
Approximate assets
Nov. 30,
1940
Oct. 31,
1940
633
802
$550, 166
1, 280, 164
$540, 777
1, 263, 819
1,435
1, 830, 330
1, 804, 596
Federal Savings and Loan Insurance
Corporation
[Table 12]
•
P R I V A T E repurchasable capital on the books
of insured savings and loan associations increased
by $28,500,000 in November to $2,143,000,000 at
the end of the month. Share repurchases accounted
for 51 cents for every dollar of new investments
received during the month, as compared with an
average of 56 cents shown for October—a further
improvement over conditions in mid-summer when
the ratio of repurchases to new investments was
unusually high.
November lending activity of insured savings and
loan associations declined much more than seasonally;
this was responsible for a slowing down in the growth
of their combined mortgage loan portfolio, which
increased by only $25,800,000 over October.
January 1941
281460-41
Despite the net gain in new capital, which exceeded
the amount necessary to meet loan requirements,
insured savings and loan associations increased their
total borrowings from the Federal Home Loan Banks
by $4,100,000 during November. Since the previous
low point of $102,000,000 of F H L B advances at the
end of April, outstanding advances to insured savings
and loan associations rose to a total of nearly
$155,000,000 at the close of November.
There were 2,269 associations insured by the Federal Savings and Loan Insurance Corporation on
November 30.
Fed eral Home Loan Bank System
[Table 13]
•
T H E balance of advances outstanding of the
Federal Home Loan Banks reflected an increase
for the seventh consecutive month during November, and reached a total of $185,500,000 at the end
of the month. This was $4,000,000 greater than
the total at the end of the preceding month and
$17,000,000 greater than the balance on the same
date last year. Advances made during the month
amounted to $8,900,000, a 25-percent reduction in
the volume of lending operations as compared to
October, but greater than the volume of advances
made during either November 1939 or 1938. liepayments during the month amounted to $4,900,000.
Ten of the Federal Home Loan Banks reported
increases in advances outstanding during November. The largest monetary increase was reflected
in the Chicago Bank ($1,061,000), while the largest
percentage increase was found in the Indianapolis
Bank (4.5 percent). The Little Rock and Portland
Banks reported decreases of small amounts. Four
Banks—Cincinnati, Little Rock, Topeka, and Los
Angeles—registered lower balances of advances outstanding on November 30, 1940, than on November
30,1939. Only four of the Banks reported advances
greater this month than last and nine of the Banks
received a smaller volume of repayments.
The membership of the Federal Home Loan Bank
System at the end of November was 3,860—a decrease of 25 members during the month, resulting
exclusively from withdrawals as no new memberships were recorded. The primary reason for this
decrease was the consummation of a rehabilitation
program in Altoona, Pennsylvania, involving the
withdrawal of 16 members. However, aggregate
member assets increased $27,500,000 during the
month and reached $4,988,492,000.
121
4
Table 7.—Number and estimated cost of new family dwelling units provided in all cities of 10,000
population or over, in the United States 1
[Source: Federal Home Loan Bank Board.
Compiled from residential building permits reported to U. S. Department of Labor];
[Amounts are shown in thousands of dollars]
N u m b e r of family units provided
Jan.-Nov.
totals
M o n t h l y totals
T y p e of dwelling
Oct.
1940
Nov.
1940
T o t a l cost of units
Nov.
1939
1940
M o n t h l y totals
Nov.
1940
1939
Oct.
1940
1-family dwellings
13, 465 19, 121 13, 439 180, 400 150, 706 $53, 962. 9 $75,
964 15, 038 10, 600 3, 362. 1 5,
1,296 2 , 0 2 8
2-family dwellings
2
743
91
J o i n t home a n d business _ _ _
276. 6
737
57
58
8,879 14, 719 12, 981 93, 889 96, 806 2 6 , 5 1 1 . 5 47,
3-and-more family dwellings
Jan.-Nov. totals
Nov.
1939
158. 9 $53,
152. 6 2,
366. 0
025. 4 40,
1940
519. 7 $704,
326. 6 37,
230.8
3,
898. 9 286,
036.
236.
297.
100.
1939
1 $592,
3 26,
3
3,
9 316,
115. 1
933. 3
308. 5
831. 3
23, 698 35, 959 27, 441 290, 064 258, 855 84, 113. 1 127, 702. 9 96, 976. 0 1,030,670.6 939, 188. 2
T o t a l residential
1
Estimate is based on reports from communities having approximately 95 percent of the population of all cities with population 2of 10,000 or over.
Includes 1- and 2-family dwellings with business property attached.
Table 2.—Number and estimated cost of new family dwellins units provided in all cities of 10,000
population or over, in November 1940, by Federal Home Loan Bank District and by State
[Source: Federal Home Loan Bank Board.
Compiled from residential building permits reported to U. S. Department of Labor]
[Amounts are shown in thousands of dollars]
All 1- a n d 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 State
Nov.
1940
U N I T E D STATES
N o . 1—Boston
.
_
Connecticut.. _
Maine. _
_.
Massachusetts
New H a m p s h i r e
Rhode Island
Vermont
.
... .
.
. .. .
_
. -
N o . 2—New York
New Jersey
New York__
_
___ . . . . . .. . . _ -
N o . 3—Pittsburgh
Delaware __
Pennsylvania
West Virginia. _
122
.
23, 698
Nov.
1939
E s t i m a t e d cost
Nov. 1940 Nov. 1939
27, 441 $84, 113. 1 $96, 976. 0
N u m b e r of family
dwelling units
Nov.
1940
14, 819
Nov.
1939
E s t i m a t e d cost
Nov. 1940 Nov. 1939
14, 460 $57, 601. 6
$56, 077. 1
13, 735. 9
929
845
4, 279. 1
3, 954. 7
4
5
2
3
8
7
4, 583. 4
119. 8
8, 291. 9
151. 9
550. 2
38. 7
247
42
468
38
130
4
194
36
440
35
135
5
1, 271. 1
138. 5
2, 115. 7
125. 3
608. 8
19. 7
967.5
119.8
2, 136. 6
141. 9
550. 2
38.7
6, 347
15, 954. 0
22, 515. 1
1,376
1, 315
5, 879. 4
5, 909. 7
361
4, 144
776
5,571
1, 536. 0
14, 418. 0
3, 398. 1
19, 117. 0
353
1,023
350
965
1, 518. 5
4, 360. 9
1,718. 1
4, 191. 6
796
1,350
3, 654. 9
5, 620. 5
710
760
3, 439. 0
3, 645. 1
3
705
88
6
1,250
94
18. 5
3, 261. 0
375. 4
29.8
5, 237. 9
352. 8
3
623
84
6
668
86
18. 5
3, 053. 1
367.4
29.8
3, 282. 5
332. 8
2, 268
3, 795
8, 378. 9
595
42
597
38
992
4
1, 391
36
2, 187
41
135
5
2, 480.
138.
2, 415.
125.
3, 199.
19.
4, 505
Federal Home Loan Bank Review
Table 2.—Number and estimated cost of new family dwelling units provided in all cities of 10,000
population or over, in November 1940, by Federal Home Loan Bank District and by State—Con.
[Amounts are shown in thousands of dollars]
All 1- a n d 2-family dwellings
All residential dwellings
N u m b er of family
dwellin g units
Federal H o m e Loan Bank District
a n d State
N u m b e r of family
dwelling units
E s t i m a t e d cost
Nov.
1940
Nov.
1939
N o . 4—Winston-Salem
_ .
Alabama
District of Columbia
__.. _.
Florida _ _ „
Georgia
Maryland _
.
_ ...
N o r t h Carolina
. .
South Carolina.- ..
Virginia .... .
3,349
163
1, 143
799
177
151
267
225
424
3,536 $10, 202. 8 $10, 757. 1
152
287. 7
315. 0
300
3, 666. 3
1, 438. 2
802
2, 663. 7
2, 559. 9
372. 2
1, 446. 7
585
898. 6
546. 7
266
2. 082. 0
730. 1
774
995. 8
365
598. 9
1, 020. 9
292
1, 337. 2
N o . 5—Cincinnati
Kentucky
Ohio
1,068
103
767
198
1,276
103
1, 034
139
4, 531.
262.
3, 754.
514.
7
8
8
1
1,757
359
1,398
1,503
338
1, 165
936
650
286
E s t i m a t e d cost
Nov.
1940
Nov.
1939
Nov. 1940 Nov. 1939
1, 917
163
260
564
177
151
252
101
249
2, 005
143
214
614
227
266
278
117
146
$6, 270. 6
287. 7
1, 292. 8
2, 008. 8
372.2
546. 7
715.3
247. 9
799. 2
$6, 519. 2
261. 5
1, 263. 7
2, 107. 8
372. 4
898. 6
776. 6
261.3
577.3
5, 119. 4
298. 6
4, 487. 9
332.9
990
99
693
198
864
99
626
139
4, 304.
254.
3, 535.
514.
3, 851.
295.
3, 223.
332.
7, 403. 7
1, 409. 5
5, 994. 2
6, 828. 1
1, 349. 6
5, 478. 5
1,453
359
1,094
1,459
294
1, 165
6, 359. 1
1, 409. 5
4, 949. 6
6, 623. 6
1, 145. 1
5, 478. 5
1,902
1,605
297
4, 979. 4
3, 837. 3
1, 142. 1
7, 886. 4
6, 627. 0
1, 259. 4
925
650
275
787
499
288
4, 959. 7
3, 837. 3
1, 122. 4
4, 143. 8
2, 901. 9
1, 241. 9
740
245
206
214
45
30
850
233
350
205
23
39
2, 749. 6
925.0
900.9
714.6
125. 1
84.0
3, 318.
844.
1, 585.
710.
82.
95.
0
7
0
7
6
0
656
245
202
170
9
30
826
233
342
189
23
39
2, 548. 1
925. 0
888.4
625. 6
25. 1
84. 0
3, 241.
844.
1, 562.
656.
82.
95.
6
7
6
7
6
0
N o . 9—Little Rock .
Arkansas _
Louisiana
Mississippi.
N e w Mexico
Texas _
1,880
89
204
267
43
1,277
1,916
66
206
320
28
1,296
9
5
2
5
7
0
' 5, 124. 8
236. 0
517.7
812. 6
87. 3
3, 471. 2
1,445
77
204
131
39
994
1,698
58
202
170
28
1,240
4, 122. 5
268. 2
726.2
190. 9
128. 7
2, 808. 5
4, 493.
211.
508.
345.
87.
3, 340.
0
0
7
7
3
3
N o . 10—Topeka _ _
Colorado
Kansas
Nebraska
Oklahoma
655
242
125
85
203
571
171
103
99
198
2, 072. 9
707.7
360. 6
307.8
696.8
1, 859. 4
583.8
267.4
391.4
616.8
626
242
117
64
203
561
164
103
96
198
1, 979. 3
707.7
351.0
223.8
696.8
1, 835. 4
567. 8
267.4
383.4
616.8
1,403
19
49
150
122
1,045
18
782
47
54
204
130
335
12
4, 542. 4
73.8
132.2
581.5
360. 7
3, 331. 4
62.8
2, 630. 7
178. 6
142. 1
699.4
409.8
1, 150. 0
50.8
609
19
45
125
107
295
18
696
47
54
151
119
313
12
2, 161. 6
73.8
120.2
504. 5
345. 7
1, 054. 6
62.8
2, 464.
178.
142.
582.
399.
1, 110.
50.
7
6
1
5
8
9
8
4,341
41
4,282
18
3,613
62
3, 527
24
14, 346. 9
133.3
14, 104. 1
109. 5
11, 580. 6
197. 6
11, 279. 5
103.5
3, 183
36
3, 129
18
2,644
58
2,562
24
11,299.0
120.3
11,069.2
109. 5
9, 394.
194,
9, 097.
103.
8
1
2
5
_ ..
. ..
N o . 6—Indianapolis . _ _ _
Indiana.
M i c h i g a n . __
N o . 7—Chicago
Illinois
Wisconsin.
N o . 8—Des M o i n e s .
Iowa
_
Minnesota
Missouri _
North Dakota. _
South D a k o t a
N o . 11—Portland
I d a h o __
Montana._
Oregon
Utah
Washington
Wyoming.
_
__-
N o . 12—Los Angeles
Arizona
California. . . _ .
N e v a d a _ _ _ ._
January 1941
_
_ __
_
_
Nov. 1940 Nov. 1939
5, 295.
279.
726.
538.
134.
3, 617.
2
8
3
1
5
1
5
9
123
Table 3.—Cost of building the same standard house in representative cities in specific months
NOTE.—These figures are subject to correction
[Source: Federal Home Loan Bank Board]
Cubic-foot cost
Total cost
Federal Home Loan Bank
District and city
1940
1940
Dec.
1939
Dec.
1939
Dec.
Dec.
No. 1—Boston:
Hartford, Conn
New Haven, Conn
Portland, Me
Boston, Mass
Manchester, N. H
Providence, R. I
Rutland, Vt
$0. 261
.257
.220
.278
.240
.259
.227
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
$0. 246 $6, 262
6, 177
. 241
5,274
.218
6,667
.268
5,749
. 224
6,226
.250
5,443
. 220
.254
.267
.253
.280
.231
.236
.243
.222
.219
. 187
.227
.226
.238
No. 7—Chicago:
Chicago, 111
Peoria, 111
Springfield, 111
Milwaukee, Wis
Oshkosh, Wis
No. 10—Topeka:
Denver, Colo
Wichita, Kans
Omaha, Nebr
Oklahoma City, Okla_
Sept.
June
$5, 881
5,869
5,277
6,489
5, 421
6, 122
5,428
$6, 019
5,868
5,256
6,484
5,390
6,066
5,327
.216
.239
.238
.239
.205
.200
.228
.213
.216
.203
. 195
.206
.216
6,087
6,416
6,073
6,731
5,537
5,659
5,832
5,320
5,246
4,493
5,453
5,420
5,714
5,332
5,894
5,717
6, 156
4,882
4,914
5,071
5,735
5,673
6,050
4,873
4,750
4,941
5,197
4,536
4,679
4,949
288
298
309
278
261
283
,288
295
252
,242
6, 900
7,158
7,415
6,678
6,272
,264
238
,249
,266
,259
,241
253
250
6,327
5,716
5,968
6,388
1938
Dec.
1937
Dec.
Mar.
$5, 937 $5, 903 $5, 877
5, 850
5,793
5,617
5,242
5, 256
5,259
6,428
6, 490
6,384
5,381
5, 390
5,554
6, 007
6, 035
5,893
5,272
5, 321
5,472
$6, 076
5,832
5,708
6,601
5,601
6,000
5,846
4,979
5,010
4,872
4,660
4,819
5,205
5,
5,
5,
5,
4,
4,
5,
4,
5,
4,
4,
4,
5,
200
741
736
824
921
750
631
998
009
863
730
848
199
5, 190
5,738
5,709
5,740
4,926
4,810
5,477
5, 115
5,176
4,881
4,673
4,953
5, 191
5,668
5,854
5,513
5,834
5,006
4,676
5,443
5,074
5,273
4,741
4,888
5,081
5,094
6,068
6,019
5,578
6,393
5,267
4,919
5,643
5,410
5,515
4,714
4,860
5,370
5, 103
6,841
7, 110
7,168
6,263
5,845
6,773
7,082
7, 145
6,073
5,829
6,
7,
7,
6,
5,
787
024
068
063
904
6,789
6,909
7,073
6,040
5,804
6,838
6,441
6,811
5,752
5,898
7,226
6,705
6, 131
6,092
5,838
6, 132
6, 117
6, 222
5, 760
6, 156
6, 051
6,221
5,794
6,079
6, 000
6,431
5,964
5,717
5,875
6,625
5,914
6,097
1936
Dec.
6,023
6,027
5,975
5,850
$5, 781
5,620
5,252
5,927
5,556
5,633
5,359
5,431
5,439
6,055
5, 127
5,055
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
i The house on which costs are reported is a detached 6-room home of 24,000 cubic feet volume. Living room, dining room, kitchen, and lavatory on first floor; three
bedrooms and bath on second floor. Exterior is wide-board siding with brick and stucco as features of design. Best quality materials and workmanship are used
throughout.
The house is not completed ready for occupancy. It includes all fundamental structural elements, an attached 1-car garage, an unfinished cellar, an unfinished attic,
a fireplace, essential heating, plumbing, and electric wiring equipment, and complete insulation. It does not include wall-paper nor other wall nor ceiling finish on interior
plastered surface, lighting fixtures, refrigerators, water heaters, ranges, screens, weather stripping, nor window shades.
Reported costs include, in addition to material and labor costs, compensation insurance, and allowance for contractor's overhead and transportation of materials,
plus 10 percent for builder's profit.
Reported costs do not include the cost of land nor of surveying the land, the cost of planting the lot, nor of providing walks and driveways; they do not include
architect's fee, cost of building permit, financing charges, nor sales costs.
In figuring costs, current prices on the same building materials list are obtained every three months from the same dealers, and current wage rates are obtained from
the same reputable contractors and operative builders.
Table 4.—Index of building costs for the standard house
[Average month of 1936 = 100]
Element of cost
Material
Labor
Total cost
124
Nov.
1940
Oct.
1940
Sept.
1940
Aug.
1940
July
1940
June
1940
May
1940
April
1940
Mar.
1940
Feb.
1940
Jan.
1940
Dec.
1939
Nov.
1939
107.8
116.3
106.5
113.3
105.0
111.0
104. 4
109. 7
104.3
109.5
104.4
109.7
104.4
109.9
104.3
110. 0
104.5
110.3
104.5
110. 3
104. 4
110.2
104. 5
110. 6
104.4
110. 8
110.6
108. 7
107. 0
106. 2
106.0
106.2
106.2
106. 2
106.4
106. 5
106.4
106. 6
106. 5
Federal Home Loan Bank Review
Table 5.—Index of wholesale price of building materials in the United States
[1926=100]
[Source: U. S. D e p a r t m e n t of Labor]
Plumbing
a n d heating
Structural
steel
80.9
78.7
107.3
89.7
100. 1
99. 5
84. 9
85. 5
79.3
79.3
107. 3
107.3
92.9
92.7
98. 7
97. 7
97.4
96. 7
96.0
94. 8
94.8
98. 4
107. 1
114. 4
117.5
87.2
86.8
87. 2
86.7
86.0
85.2
84.6
84.2
84. 1
84. 8
85.7
79.3
79. 1
81.0
80. 9
80.6
80.5
80.5
80.5
80. 5
80.5
80.5
107. 3
107. 3
107.3
107. 3
107.3
107.3
107. 3
107.3
107.3
107.3
107.3
93.2
92.9
92.7
92. 3
92. 2
93.0
93.6
93.4
93.5
93.8
94.2
+ 0.1%
+ 2.7%
- 0 . 5% + 17.4%
+ 1.1%
+ 0. 9 %
0.0%
-1.5%
0.0%
0.0%
+ 0.4%
+ 1.4%
All building m a t e rials
Brick a n d
tile
1938: November
89.2
91.5
90.6
89.8
1939: November
December
93.0
93.0
91. 6
91. 6
91.3
91.3
1940: J a n u a r y
February
March
April
May
June
July
August
September
October
November
93.4
93.2
93.3
92.5
92.5
92.4
92.5
93.3
95.6
97.8
98.9
91. 6
91.2
90.4
90.2
90.2
90.2
90. 1
90. 1
90.2
90.2
90. 2
91.4
91.4
91.2
90.3
90.5
90.6
90. 6
90.6
90.6
90. 7
90.8
+ 1.1%
+ 6. 3 %
0.0%
-1.5%
Period
2
2
2
Change:
Nov. 1940-Oct. 1940__
Nov. 1940-Nov. 1939__
Cement
:
Lumber
2
Paint and
paint materials
Other
1
Based on delivered prices a t 48 cities a n d introduced into the calculation of t h e Bureau's general indexes of wholesale
prices beginning with M a r c h 1939.
2
Revised.
Table 6.—Estimated volume of new home-mortgage loans by all savings and loan associations, by
purpose and class of association 1
[Thousands of dollars]
Class of association
Purpose of loans
Period
Construction
1938
Jan.—Nov
November. _
1939
Jan.-Nov
November _ _
December _
1940
Jan.—Nov. -_
January
_. _
February _ _
March__
April
__
May
June _ _
J u l y __
AugustSeptember _
October
November
!
_
H o m e pur- Refinancing
chase
Reconditioning
Loans for
all other
purposes
Total
loans
Federals
State
members
Nonmembers
$220, 458
$265, 485
$160, 167
$58, 623
$93, 263
$797,996
$286, 899
$333, 470
$177, 627
201, 306
18, 627
244, 659
21, 205
147, 362
12, 182
54, 598
4,821
86, 137
7,235
734, 062
64, 070
261, 880
24, 220
306, 966
26, 115
165, 216
13, 735
301, 039
339, 629
182, 025
59, 463
104, 227
986, 383
400, 337
396, 041
190, 005
274, 116
26, 607
26, 923
311,850
30, 434
27, 779
167, 024
15, 445
15, 001
55, 128
4,720
4,335
95, 153
8,870
9,074
903, 271 1
86, 076
83, 112
366,284
34, 785
34, 053
362, 832
34, 671
33, 209
174, 155
16, 620
15, 850
368, 600
19, 488
20, 152
26,711
33, 764
36, 956
35, 523
39, 907
42, 488
39, 417
41, 610
32, 584
394, 686
22, 039
25, 389
32, 168
37, 821
42, 049
38, 402
40, 658
. 40,567
40, 947
40, 771
33, 875
183,
13,
14,
16,
20,
18,
17,
17,
17,
15,
16,
14,
59, 335
3,455
3,437
4,657
6,097
6,896
5,691
6, 115
6, 079
6,283
5,756
4,869
104, 832
7, 963
7,954
10,063
9,460
10, 607
10,221
9,972
10,726
9,645
9,423
8,798
471,
28,
29,
38,
46,
49,
47,
48,
50,
46,
48,
38,
446,
25,
28,
36,
43,
45,
42,
45,
46,
45,
46,
40,
192,
13,
12,
15,
18,
19,
17,
20,
20,
19,
19,
15,
573
999
590
769
859
034
147
649
762
483
840
441
1, 111,026
66,944
71,522
90,368
108,001
114, 542
106,984
114,301
117, 622
111,775
114,400
94,567
998
008
786
241
577
287
435
676
305
480
307
896
770
737
941
484
015
803
214
414
807
988
224
143
258
199
795
643
409
452
335
211
510
307
869
528
Revised figures for 1936, 1937, a n d for t h e first 10 m o n t h s of 1938 appear on p . 93 of t h e December 1938 issue.
January 1941
I25
Table 7.—Estimated volume of new home-mortgage loans by all savings and loan associations, by
Federal Home Loan Bank District and class of association
[Amounts are shown in thousands of dollars]
New loans
F e d e r a l H o m e Loan B a n k District
a n d class of association
U n i t e d States: T o t a l
Federal
State m e m b e r
Nonmember-_
November 1940
October
1940
$94, 567
38,896
40, 143
15,528
$114,400
48, 307
46, 224
19,869
Percent
Percent
change,
change,
New
October
loans,
November
1940 to
Novem1939 to
N o v e m b e r ber 1939 N o v e m b e r
1940
1940
C u m u l a t i v e new loans (11
months)
1940
1939
$903,271
366, 284
362,832
174, 155
- 1 7 . 3 $86,076
-19.5
34,785
-13.2
34,671
- 2 1 . 8 16,620
+ 9.9
+ 11. 8
+ 15.8
-6.6
$1, 111,026
471,998
446, 770
192,258
Percent
change
+
+
+
+
23. 0
28.9
23. 1
10.4
District No.
1: T o t a l
Federal-_
State m e m b e r
Nonmember
10,457
3, 352
5,372
1, 733
11,513
4, 175
5,546
1, 792
-9.2
-19. 7
-3. 1
-3.3
8,858
2, 785
4,633
1, 440
+ 18. 1
+ 20. 4
+ 16.0
+20. 3
105,604
36,285
51,833
17,486
82,
25,
39,
17,
722
719
950
053
+ 27. 7
+ 41. 1
+ 29.7
+ 2.5
District No.
2: T o t a l - _
Federal _ _
State m e m b e r
Nonmember
10, 150
2,796
3, 297
4, 057
13,478
3,381
3,412
6,685
-24. 7
-17.3
-3.4 1
-39.3
8, 538
3,028
2, 128
3,382
+ 18.9
-7.7
+ 54. 9
+ 20. 0
106,983
31, 008
30,099
45,876
88, 517
34,314
20, 768
33,435
+ 20.9
-9. 6
+ 44.9
+ 37.2
District No.
3: T o t a l
Federal _
State m e m b e r
Nonmember
7,017
2,875
1,782
2, 360
8, 484
3, 543
2,221
2, 720
-17.3
-18. 9
-19.8
-13. 2
6,406
2, 164
1, 506
2, 736
+ 9.5
+ 32. 9
+ 18.3
-13. 7
85,922
33, 525
21,803
30, 594
73, 209
20,586
19, 058
33, 565
+ 17. 4
+ 62. 9
+ 14. 4
-8.9
District No.
4: Total
Federal-_
State m e m b e r
Nonmember
14, 414
6, 816
6, 323
1,275
15, 574
7, 930
6, 249
1,395
-7.4
-14.0
+ 1.2
-8.6
12,459
5, 133
5,212
2, 114
+ 15. 7
+ 32.8
+ 21. 3
-39. 7
161, 127
78, 736
63, 540
18,851
125,
51,
53,
19,
746
896
874
976
+ 28. 1
+ 51. 7
+ 17.9
-5.6
District No.
5: T o t a l
Federal-_ _
State m e m b e r
Nonmember
15, 378
5,438
7,843
2,097
19, 705
7,230
9,553
2, 922
-22.0
-24. 8
-17.9
-28.2
14,686
5,425
6, 912
2, 349
+ 4.7
+ 0.2
+ 13.5
-10. 7
185, 747
68,406 I
89, 778
27,563
143,
57,
68,
17,
843
400
673
770
+
+
+
+
District N o .
6: T o t a l . ,
Federal- _
State m e m b e r
Nonmember
4,861
2,672
1,969
220
6,503
3,525
2,675
303
-25. 2
-24.2
-26. 4
-27.4
4, 407
2, 176
1, 967
264
+ 10. 3
+ 22. 8
+ 0. 1
-16. 7
58, 215
28, 939
26,011
3,265
44,
20,
20,
3,
118
611
406
101
+ 32.0
+ 40. 4
+ 27.5
+ 5.3
112, 896
44, 342
51,367
17, 187
_
__
29. 1
19. 2
30.7
55. 1
90, 474
31,215
40, 237
19, 022 |
+ 24. 8
+ 42. 1
+ 27. 7
-9.6
55,
26,
16,
12,
+ 20. 1
+ 24.2
+ 22.3
+ 8. 5
District N o .
7: T o t a l
Federal _
State m e m b e r . __
Nonmember
9, 549
3,327
4,720
1,502
11, 051
4,374
5,258
1,419
-13. 6
-23. 9
-10.2
+ 5. 8
8, 426
3,057
4,066
1,303
+ 13. 3
+ 8.8
+ 16. 1
+ 15.3
District No.
8: T o t a l
FederalState member
Nonmember
4,974
2, 636
1,401
937
6,377
3,041
2,202
1, 134
-22. 0
-13.3
-36. 4
-17.4
5, 173
2, 487
1,585
1, 101
-3.
+ 6.
-11.
-14.
District N o .
9: T o t a l
Federal.
State m e m b e r
Nonmember
4, 101
1,647
2,405
49
5,209
2,036
3,056
117
-21. 3
-19. 1
-21.3
-58. 1
4,215
1,815
2,286
114
-2.7
-9.3
+ 5.2
-57.0
55, 229
22, 019
31,271
1,939
52, 657
21, 365
29, 365
1,927
_
3,481
1, 752
948
781
4, 565
2,437
1, 149
979
-23. 7
-28. 1
-17.5
-20. 2
3,733
1,843
843
1,047
-6. 8
-4. 9
+ 12. 5
-25.4
47,
24,
11,
11,
668
936
167
565
43, 379
21,339
11,200
10, 840
+ 9. 9
+ 16.9
-0.3
+ 6. 7
District N o . 1 1 : T o t a l
Federal _
S t a t e m e m b e r __
Nonmember
3,212
1, 869
1, 074
269
3,523
2,261
1, 113
149
-8.
-17.
-3.
+ 80.
3,089
1,666
1, 103
320
+ 4. 0
+ 12.2
-2. 6
-15.9
38,
23,
12,
1,
496
816
918
762
32, 166
19, 019
11,242
1, 905
+ 19.7
+ 25. 2
+14. 9
-7.5
District N o . 12: T o t a l . _
_ _
Federal-State member
Nonmember. _
6, 973
3, 716
3, 009
248
8,418
4,374
3,790
254
- 1 7 . 2 ! 6,086
-15.0
3, 206
2, 430
-20.6
-2.4
450
+ 14.6
+ 15.9
+ 23. 8
-44.9
85,
47,
36,
2,
995 1
102
456
437
70,526
36, 345
31, 273
2, 908
+ 21.9
+ 29. 6
+ 16.6
-16.2
D i s t r i c t N o . 10: T o t a l
Federal _
State member
Nonmember
126
__
8
3
5
5
8
0
6
9
67,
32,
20,
13,
144
884
527
733
914
475
786
653
+
+
+
+
4.
3.
6.
0.
9
1
5
6
Federal Home Loan Bank Review
Table 8.—Summary of estimated nonfarm mortgage recordings, * $20,000 and under, during
November 1940
(Amou n t s s h o # n
F e d e r a l Home Loan Bank
District
and
Saving' & loan
a s s o c j at i o n s
State
Number Amount
3S,180 $102,267
UNITED STATES
Number
a re
in
thousands
of
d o l l a r s)
Mutual
Bank s and
Indivi duals
t r u s t c ompanies s a v i n g s banks
Number Amount Number Amount Number Amoun t
I n s u ranee
companies
Amount
5,816 $27,90C 25,988 $82,971 1,021
Other
mo r t agees
Number
Am o u n t
per
capita
Total
Amount
Number
(non farm)
Amount
$15,122 27,507 $5I,5C1 11,239 $17,621 1 16,751 $327,385
$3.55
3,728
11,885
168
828
999
3,558 2,256
7,670 2,313
5,363
620
2,203
10, 1 J L 31,507 1
363
219
2,6S8
170
171
101
1,369
512
8,813
360
610
221
108
8
38
522
36
191
11
73
315
132
335
65
82
10
1,125
162
268
232
1,287 1,187
178
168
307
88
103
109
153
1,811
317
166
1,222 1,302
81
55S
106
268
311
51
1,111
601
3,193
123
221
75
268
58
219
8
62
5
1,087
111
733
22
207
13
1,859
996
5,779
505
526
3C9
2.626
8.189
388
2, ISC
2,197
8,897 1,301
5,867
3,0C9
7,102
•1,657
6,719
11,181
891
1,635
3,238
5,251
232
156
1,1 S7
993
1,326
871
5,530
52
3,367 1,252
322 1,173
5,515 1,836
2,801
1,298
699
958
2,519
1,200
1,173
6,708
15,610 1
1
23,651
1.00
1.99
No. 3—Pittsburgh
Del aware
Pennsylvania
West Vi rgin i a
2.653
33
2,216
371
6.788
121
5,921
713
320
15
22S
76
1.192
95
1,015
352
2.333
55
1,691
587
7.188
259
5,623
! ,606
159
13
135
II
501 1,889
76
28
167 1,169
6
311
1.011
169
3,110
132
936
20
823
93
3.110
57
3,176
207
8,290
212
6,593
1,185
23.750
729
19,675
3,316
3.80
2.21
2.61
Ho. 1—Winston-Salem
6,111
16,082
910
1,157
2,912
7,191
37
117 1,181
7,716
2,163
6,601
17,277
12,191
306
2,830
2,012
1,376
2,653
3,162
911
2,529
99
III
291
IC5
51
115
38
130
371
663
1,207
515
253
117
113
588
315
132
356
179
322
371
301
600
771
775
861
995
1,081
737
163
I.8C2
127
331
702
581
187
716
508
696
162
968
1,651
926
1,068
779
618
1,213
232
286
116
390
179
335
291
331
6 59
1,277
1,216
917
187
901
377
731
1,322
1,121
2,369
2,105
2,171
3,300
1,533
2,753
2,569
6,513
6,983
1,729
5,692
6,299
2,513
6,896
5,970
16,779
716
3,18C
2,890
9,181
1,020
1,713
207
2,61S
13,585
515
US
375
192
582
2,111
781
118
2,C89
383
1,06 1
6,819
1,271
3,019
6,151
758
3,616
3,218
2,081
938
3,631
2,520
320
138
1,170
2,116
1,216
1,972
No. I —Boston
Connecticut
Maine
Massachusetts
New Hampsh i r e
Rhode I si and
Vermont
_
__
_ _
_
_ __
__
_
Mo. 2—Mew York
New Jersey
New York
__
Alabama
D i s t r i c t of Columbia
F l o r i da
Georgi a
Maryl and
North Carolina
South Carolina
Virginia
219
56 1
601
817
1,095
1,730
392
9S3
No. 5—Cincinnati
Kentucky
Ohio
Tennessee
_ _
_
__
No. 6—Indianapoli s
Indiana
Michigan
7,358 1
2,030
18,112
1,232
1,689
756 1
39,291
!
117
100
125
1,798
3,133
1,382
1,C72
12,856
37,073
100
125
181
1,308
306
250
2,116
137
91
662
629
269
2,271
1,532
1,862
9,277
1,717
1,811
27,690
1,572
8,962
16
31
1,168
2,391
916
3,582
9,125
21,719
3,367
5,595
16
31
111
721
755
1,636
271
675
817
2,715
1,378
1,717
10,107
11,612
8
11
1,513
3,119
1,077
1,133
7,972
21,931
8
11
721
822
1,781
1,638
856
211
3,716
717
5,231
2,711
17,335
7,596 1
29
101
29
101
2,091
135
8 51
888
11
69
3,056
698
960
1,215
51
8S
1,392
118
206
989
12
7
3,971
107
56 5
2,880
82
37
8,832
1,891
2,111
3,882
263
285
20,815
1,118
5,629
10,012
183
575 |
2.76
3.37
3.99
1.70
1.90
1,36 5
125
353
113
20
751
1,116
281
S5C
298
59
2,818
6,931
700
1,578
611
298
3,717
18,292
l,1S8
1,509
1,290
597
10,398
2.01
3.55
1.99
2.26
2.99
3,391
9,551
310
1,561
1,610
5,950
2,128
966
6,916
2,635
230
no
1,081
18C
886
621
3,838
2,112
No. 8—Des Moines
Iowa
Minnesota
Missouri
North Dakota
South Dakota
2,516
616
810
971
76
10
5,572
1,267
1,899
2,183
181
12
550
91
212
175
21
18
2,196
315
932
991
72
156
2,221
571
500
955
77
121
5,618
1,399
1,169
2,713
91
211
2,273
166
701
122
91
1.193
5,523
363
2,117
212
202
2.599
652
11
115
15
3
115
2,931
Arkansas
Loui si ana
Mississippi
New Mexico
Texas
199
535
181
13
2,006
752
137
61
153
62
339
2,091
361
215
359
119
1.010
1,892
228
318
2G8
122
986
3,295
291
652
210
171
1,935
No, ID—Topeka
2,016
1,173
2G5
901
719
1,789
1,326
1,910
806
2,502
5,132
261
579
520
683
610
1,012
1,017
1,171
22
51
68
61
89
227
327
258
137
251
93
268
357
532
297
613
516
231
'182
397
998
286
216
111
199
173
107
327
906
115
270
910
1,138
1,288
970
1,736
11,285
2,980 1
2,502
2,127
3,666 1
1,117
3,215
277
l,C07
1,158
2,811
1,570
729
2,329
1,855
11,395
90
120
305
198
670
61
168
387
678
556
1,267
159
12
18
85
26
126
22
75
361
83
163
121
60
136
261
527
50
391
182
306
767
1,119
116
111
99
157
M0
271
18
200
191
568
167
380
61
121
23
160
50
361
II
352
33
573
157
1,180
31
191
320
1,16 5
615
2,061
173
3,037
76
2,911
17
8,056
502
1,916
116
1,801
26
18,988
101
18,191
1,835
222
1,561
18
8,508
158
7,951
101
3,313
10
3,261
9
11,186
12,100
10
190
2
3,235
37
3,190
866
195
7,818
13
152
13,631
100
1,132
10,717
251
__
No. 9 ~ L i t t l e Rock
Colorado
Kansas
Nebraska
Oklahoma
No.
ll~Portland
Idaho
Montana
Oregon
Utah
Wash ington
Wyoming
Wo. 12—Los Angeles
Ari zona
Cali f o r n i a
Nevada
__ _
a
1.97
13.39
5.87
3.17
1.08
1.01
3.06
1.69
37
111inoi s
toi sconsin
No. 7—Chicago
1.81
3.21
1.17
3.06
2.52
3.06
SO
115
360
12
11
103
319
1,129 '
28
832
6
1,136
871
2,530
1,730
1,728 1 1
100
3.35
1.92
3.26
1.17
3.60
2.61
3.69
3.97
2.13
2.68
2.67
1.13
2.62
3.17
1.11
3.76
2.62
3.36
8.05
3.36
1
Based upon county reports submitted through the cooperation of savings and loan associations, the U. S. Savings and Loan League, the Mortgage
Bankers Association, and the American T i t l e Association.
January 1941
I27
Table 9.—Estimated volume of nonfarm mortgages recorded, by type of mortgagee
[Amounts are shown in t h o u s a n d s of dollars]
Savings a n d
loan associations
Insurance
companies
Banks a n d
trust
companies
Mutual
savings
banks
Individuals
Other
mortgagees
All
mortgagees
Period
Total
Percent
Number:
1939: N o v e m b e r 1 .
December. _
1940: J a n u a r y
February. _
March.__ _
April _ _
May
June
July... _
August
September.
October
November..
36, 831
38, 018
30, 005
31,015
38, 734
44, 188
49, 166
45, 564
46, 667
46, 706
45, 595
48, 145
39, 180
33. 1
33.6
31.3
32.8
34.7
35.4
36.3
36.0
35.3
34.7
35.5
34. 8
33. 5
Amount:
1939: N o v e m b e r 1
December. _
1940: J a n u a r y
February. _
March
April
May
June..
July
August
September.
October
November _
$92, 431
95J724
74,711
76, 944
96, 244
110, 787
123, 485
116,595
118,914
121, 979
117, 928
125, 009
102, 267
30. 0
30.2
28.4
30. 1
32.0
32. 5
33. 1
32.8
32.4
32.4
33.0
32. 2
31. 2
Total
Percent
5, 164
5,694
4,392
4,240
4,631
5,484
5,887
5,922
6,228
6,525
6,091
6,977
5,816
$26,
28,
2.1,
21,
23,
27,
29,
28,
30,
31,
29,
33,
27,
571
990
989
350
084
091
075
909
602
839
401
818
900
4. 6
5.0
4.6
4.5
4.2
4. 4
4.3
4.7
4.7
4.8
4.7
5.0
5.0
Total
Percent
24, 695
24, 433
21,061
20, 110
24, 288
26,711
28, 495
26, 986
28,511
29, 137
27, 924
31, 202
25, 988
22.2
21. 6
22.0
21.2
21.7
21.4
21.0
21.3
21.6
21.6
21. 7
22.5
22. 3
3,500
3,692
2,675
2,548
2,823
3,465
4, 111
4,237
4,328
4,298
4,257
4,548
4,024
26.0
25.6
25.3
24.3
25.2
24.3
24. 5
24. 6
25.3
24. 9
24.9
25.3
25.4
$12, 478
13, 550
10, 520
9,485
10, 543
13, 122
15, 394
16, 493
16, 067
15, 903
15, 566
16, 826
15, 122
8. 6 $80,
9 . 2 80,
8 . 4 66,
8 . 4 62,
7 . 7 75,
8 . 0 82,
7 . 8 91,
8. 1 87,
8 . 3 92,
8 . 4 93,
8.2 89,
8 . 7 98,
8. 5 82,
020
971
342
065
650
569
164
552
658
931
051
462
971
Total
Percent
Combined
total
Total
Percent
Total
Percent
26,
27,
24,
24,
27,
29,
30,
27,
29,
30,
28,
30,
27,
222
034
884
193
658
532
704
896
689
858
164
635
507
23. 6
23.9
25.9
25.6
24.7
23.7
22. 7
22.0
22.4
22. 9
21. 9
22. 1
23. 6
14,
14,
12,
12,
13,
15,
17,
16,
16,
17,
16,
16,
14,
853
370
844
548
655
341
219
126
837
178
391
975
239
13.4
12. 7
13.4
13.2
12.2
12. 3
12. 7
12.7
12. 7
12. 8
12. 8
12. 3
12.2
4 . 0 S48,
4 . 3 49,
4 . 0 48,
3 . 7 45,
3 . 5 51,
3 . 9 56,
4. 1 58,
4 . 7 52,
4 . 4 55,
4. 2 56,
4 . 4 52,
4 . 3 59,
4. 6 51,
228
677
026
333
596
561
372
973
191
770
936
124
504
15.7
15.7
IB. 3
17.7
17.2
16.6
15.7
14.9
15.0
15. 1
14. 8
15.2
15.7
$48,
47,
41,
40,
43,
50,
54,
52,
53,
56,
52,
55,
47,
391
629
095
451
303
203
981
941
622
394
636
734
621
1 5 . 7 $308,
1 5 . 0 316,
1 5 . 6 262,
15. 8 255,
1 4 . 4 300,
1 4 . 7 340,
14. 8 372,
1 4 . 9 355,
14. 6 367,
1 5 . 0 376,
14. 7 357,
1 4 . 3 388,
14. 6 327,
3. 1
3.2
2.8
2.7
2.5
2.8
3.0
3.3
3.3
3.2
3.4
3.3
3.4
111,265
113,241
95, 861
94, 654
111, 789
124, 721
135, 582
126, 731
132, 260
134, 702
128, 422
138, 482
116, 754
119
541
683
628
420
333
471
463
054
816
518
973
385
Percent
100. 0
100. 0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100. 0
100. 0
100.0
100. 0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100. 0
100.0
100.0
100. 0
Revised.
Table 10.—Estimated nonfarm real estate foreclosures, by size of county
Table
11.—Property operations of the H ome
Owners1 Loan Corporation
C o u n t y size (dwellings)
Period
1939:
1940:
1
U. S.
total
Less
than
5,000
5,000- 20,000- 60,000
and
19,999 59,999
Jan.-Nov__
November l
December. _
93, 793 9,832 14, 156 19, 190!50, 615
777
998! 1,836 4,072
7, 683
933 1, 5891 3,842
804
7, 168
Jan.-Nov__
January
F e b r u a r y ___
March
April
May
June
July
August
SeptemberOctober 1 __.
November..
69, 671 7, 050 10, 337
9661
708
6,483
860|
633
5, 8181
608
941
6, 379
658
9481
6, 404
7, 138 712 1, 088
6, 597 709! 1, 043
909
6, 293 667
835
6, 128 595
539 1, 018
6,294
618
6,305
897
603
5,832
832
Revised.
128
14, 69137, 593
1, 307 3,502
1, 212 3, 113
^ 395 3,435
313 3,485
539 3, 799
301 3, 544
269 3,448
338| 3,360
355 3,382
319 3,471
1,343 3,054
Period
1939: November-__
December.
1940: J a n u a r y
February
M a r c h ..
April.
May
J u n e _ ..
July
August
September _ _
October .
November
1
._
Number
of p r o p erties
acquired x
Number
of p r o p erties
sold
Number
of p r o p erties
on h a n d a t
end of
month
2,404
1,840
4,408
3,857
79, 240
77, 229
1,619
1,344
1,697
1, 388
1,531
1, 611
1,694
1,758
1,701
1,719
1,728
3,046
2,994
3,980
4,654
4,720
4, 801
3,355
3,691
3,619
3,886
3,253
75,
74,
71,
68,
65,
62,
60,
58,
56,
54,
52,
796
113
821
535
326
127
470
524
598
433
878
Includes reacquistions of properties previously sold.
Federal Home Loan Bank Review
Table 12.—Progress of institutions insured by the Federal Savings and Loan Insurance Corporation
[Amounts are shown in thousands of dollars]
Period a n d class
of association
Number of
associations
Total
assets
N e t first
mortgages
held
Private
repurchasable
capital
Government
investment
Federal
Home
Loan
Bank
advances
Operations
N u m b e r of
investors
New
private
investments
Private
repurchases
New
mortgage
loans
ALL INSURED
1938: J u n e
December
2,015 $1, 978, 476 $1, 472, 896 $1, 315, 936 $258, 403 $143, 004
1, 452, 692 260, 904 149, 977
2, 128, 706 1,605,511
2,097
1, 832, 800 $27, 300 $13, 000 $38, 350
2, 035, 700 35, 900 13, 700 36, 763
2, 170
1939: J u n e
November 2, 189
December 2, 195
2,339,411
2, 459, 038
2, 506, 944
1, 769, 112
1, 921, 717
1, 943, 852
1, 657, 859
1, 769, 033
1, 811, 181
260, 451
250, 675
250, 725
127, 062
129, 289
142, 729
2, 236, 000
2, 351, 300
2, 386, 000
1940: J a n u a r y . _
February.
#
March
April _ _
May
June
July
August
September
October. _
November
2,205
2,211
2,216
2,225
2,231
2,235
2, 237
2, 248
2,259
2,264
2,269
2,
2,
2,
2,
2,
2,
2,
2,
2,
2,
2,
765
417
885
190
685
529
259
287
391
083
817
1, 959, 678
1, 980, 887
2,011,281
2, 050, 052
2, 089, 761
2, 129, 687
2, 167, 366
2, 208, 016
2, 250, 905
2, 291, 477
2, 317, 292
1,
1,
1,
1,
1,
2,
2,
2,
2,
2,
2,
238,
236,
236,
236,
236,
236,
220,
220,
220,
220,
220,
496
854
714
508
553
913
893
081
569
629
689
121, 271
111,277
104, 993
101, 569
104, 546
124, 133
129, 909
136, 244
144, 997
150, 700
154, 802
2,
2,
2,
2,
2,
2,
2,
2,
2,
2,
2,
1938: J u n e
December.
1,336
1,360
1, 208, 357
1,311,080
938, 455
1, 028, 891
760, 953
857, 737
218, 567
219, 673
101,318
106, 411
1, 027, 100
1, 162, 700
18, 100
23, 800
6,200
6,700
26, 310
25, 019
1939: J u n e
November
December
1,383
1,390
1,397
1, 441, 058
1, 535, 895
1, 574, 314
1, 135, 511
1, 249, 900
1, 268, 872
990, 248
1, 077, 918
1, 108, 481
217, 026
208, 597
208, 777
88, 298
93, 654
105, 870
1, 299, 100
1, 384, 800
1, 412, 200
27, 000
27, 300
32, 000
8, 100
10, 970
9,231
39, 094
34, 785
34, 053
1940: J a n u a r y . _
February.
March
April
May
June
July__--_
August
September
October1..
November 2
1,400
1,403
1,408
1,411
1,415
1,421
1,422
1,427
1,430
1,433
1,435
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
197,
196,
196,
196,
196,
197,
181,
181,
181,
181,
181,
751
701
619
813
933
268
724
256
261
371
381
87, 592
79, 391
74, 495
71, 577
74, 428
90, 489
95, 175
99, 985
106, 674
110,583
114,070
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
700
100
000
500
000
900
000
100
400
800
600
71, 367
36, 951
35, 500
39, 329
31,915
29, 404
60, 489
34, 871
31, 184
37, 309
34, 092
37, 689
15, 942
16, 200
16, 679
16, 124
11,022
49, 244
22, 643
19, 414
18, 583
14, 867
28,
29,
38,
46,
49,
47,
48,
50,
46,
48,
38,
513,
543,
576,
615,
653,
708,
706,
742,
789,
832,
867,
868,
901,
928,
958,
981,
019,
039,
059,
085,
114,
143,
736
162
835
417
445
809
739
097
410
831
360
461,
504,
528,
546,
560,
591,
610,
634,
664,
695,
706,
40, 700
40, 000
48, 400
000 102, 571
000 55, 332
200 51, 377
800 55, 809
900 46, 655
600 43, 626
200 86, 496
300 51, 025
200 46, 203
800 53, 982
300 49, 990
15, 800
19, 537
17, 445
55, 848
49, 809
49, 516
57,
28,
27,
28,
27,
20,
73,
36,
30,
30,
25,
40,
43,
56,
68,
70,
67,
70,
72,
68,
71,
57,
096
042
195
123
150
418
111
060
928
286
278
342
950
270
034
990
751
943
214
665
380
686
FEDERAL
574,
597,
623,
655,
685,
727,
724,
750,
775,
804,
829,
268
550
767
179
324
337
821
870
555
397
939
279,
296,
317,
346,
375,
403,
430,
461,
487,
514,
532,
803
198
641
608
683
933
982
440
489
872
745
149,
175,
197,
222,
239,
267,
282,
297,
309,
329,
349,
410
480
882
025
973
156
590
572
421
364
761
462,
496,
515,
529,
538,
560,
574,
591,
602,
624,
627,
008
786
241
577
287
435
676
305
480
307
896
STATE
1938: June___ _
December
679
737
770, 119
817, 626
534, 441
576, 620
554, 983
594, 955
39, 836
41, 231
41, 686
43, 566
805, 700
873, 000
9,200
12, 100
6,800
7,000
12, 040
11, 744
1939: J u n e __ _
November
December
787
799
798
898, 353
923, 143
932, 630
633, 601
671,817
674, 980
667, 611
691, 115
702, 700
43, 425
42, 078
41, 948
38, 764
35, 635
36, 859
936, 900
966, 500
973, 800
13, 700
12, 700
16, 400
7, 700
8, 567
8,214
16, 754
15, 024
15, 463
1940: J a n u a r y __
February.
March
April _ _
May.
June.
J u l y . ___
August
September
October. _
November
805
808
808
814
816
814
815
821
829
831
834
679,
684,
693,
703,
714,
725,
736,
746,
763,
776,
784,
719,
725,
730,
736,
741,
752,
757,
761,
775,
785,
793,
40,
40,
40,
39,
39,
39,
39,
38,
39,
39,
39,
33,
31,
30,
29,
30,
33,
34,
36,
38,
40,
40,
998,
007,
013,
017,
022,
030,
036,
043,
061,
071,
078,
31,
18,
15,
16,
14,
14,
26,
16,
15,
16,
15,
939,
945,
953,
960,
968,
981,
981,
991,
1, 013,
1, 027,
1, 037,
497
867
118
011
361
192
438
417
836
686
878
875
689
640
444
078
754
384
576
416
605
547
326
682
953
392
472
653
149
525
989
467
599
745
153
095
695
620
645
169
825
308
258
308
679
886
498
992
118
644
734
259
323
117
732
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
300
900
200
300
900
700
200
200
800
000
700
204
381
877
480
740
222
007
154
019
673
898
19, 407
12, 100
10, 995
11,444
11,026
9, 396
23, 867
13, 417
11, 514
11, 703
10,411
12,
14,
18,
21,
21,
20,
22,
21,
22,
23,
18,
334
164
029
457
703
316
267
909
185
073
790
1
In addition, 4 Federals with assets of $781,000 had been approved for conversion but had not been insured as of Oct. 31. However, included among the above
1,433 associations, are 1 Federal with assets of $566,000 which had been insured but not approved for membership as of Oct. 31, and 1 Federal with assets of $16,000
whose
insurance certificate was outstanding but whose membership had been canceled.
2
In addition, 5 Federals with assets of $990,000 had been approved for conversion but had not been insured as of Nov. 30. However, included in the 1,435 Federals
are 1 Federal with assets of $583,000 which had been insured but had not been approved for membership as of Nov. 30, and 1 Federal with assets of $16,000 whose insurance certificate was outstanding but whose membership had been canceled.
January 1941
129
Table 13.—Lending operations of the Federal
Home Loan Banks
Table
[Thousands of dollars]
N o v e m b e r 1940
Federal H o m e
Loan B a n k
Advances
Boston
New York
Pittsburgh
Winston-Salem _ _
Cincinnati
Indianapolis
Chicago _ _
Des Moines
Little Rock _
Topeka
Portland _
Los Angeles
$513
1,281
677
1,513
839
639
1,610
631
145
152
388
565
Total
8,953
Jan.-Nov.
November
Jan.-Nov.
November
Jan.-Nov.
[Amounts are shown in thousands of dollars]
Advances
outstanding,
R e p a y - Nov. 30,
ments
1940
Treasury
October 1940
R e p a y - Adm e n t s vances
$436 $1, 274
731
1, 138
575
1, 192
781 2 , 0 8 8
517
739
184
629
549
1,593
166
1,081
157
441
88
303
525
469
223
1, 120
4,932
14—G overnment investments in savings
and loan associations 1
12, 067
1940 . 110,779 106, 545
1939__
5,659
5,827
1939_. 76, 057 106, 077
1938
5,247 4,779
1938 . 66, 963 77, 370
$176
925
1, 093
561
686
188
1, 151
251
433
354
311
459
$9 570
20, 760
16, 887
26, 827
17, 377
10, 499
28,511
18, 060
6,736
9, 381
6,013
14, 926
6,588 185, 547
168, 822
189, 687
H o m e Owners' Loan
Corporation
T y p e of operation
Federals 2
Oct. 1935-Nov. 1940:
Applications:
Number.
Amount
Investments:
Number
Amount
Repurchases
N e t o u t s t a n d i n g investments _
Federals
State
members
Total
1,862
4, 643
970
5, 613
$50, 401 $203, 451 $64, 220 $267, 671
4, 213
1,831
726
4, 939
$49, 300 $176, 415 $45, 131 $221, 546
$22, 552 $21,782 $5, 600 $27, 382
$26, 748 $154, 633 $39, 531 $194, 164
N o v e m b e r 1940:
Applications:
Number.
Amount
__ .
Investments:
Number
Amount
Repurchases
0
2
$525
1
$50
3
$575
0
0
0
2
$10
0
1
$50
0
3
$60
0
1
Refers to number of separate investments, not to number
of associations in which investments are made.
2
Investments in Federals by the Treasury were made
between December 1933 and November 1935.
Table 15, -Changes in selected types of private long-term savings
[Amounts are shown in thousands of dollars]
A m o u n t s o u t s t a n d i n g a t end of m o n t h
A m o u n t s sold during m o n t h
Period
Life insurance 1
1939* November
December1940 * J a n u a r y
February
March
April
May
June
July
August
September
October
November
U. S.
savings
bonds 2
$537, 951 $56, 313
567, 212 76, 024
517, 622
506, 212
567, 872
574, 453
571, 625
533, 086
566, 061
528, 330
503, 427
573, 504
505, 474
273, 044
144, 665
105, 992
121, 504
64, 267
49, 600
72, 997
53, 359
47, 122
52, 221
50, 080
Insured
U. S. savings
savings
bonds 4
and loans 3
$40, 000
48,400
$2, 140, 379
2, 208, 881
102, 571
55, 332
51, 377
55, 809
46, 655
43, 626
86, 496
51, 025
46, 203
53, 982
49, 990
2,473, 115
2, 610, 148
2, 706, 582
2, 817, 950
2, 868, 936
2, 904, 699
2, 965, 940
3, 008, 137
3, 043, 626
3, 084, 021
3, 123, 036
C h a n g e : L a s t 6 mos
1
Life Insurance Sales Research Bureau. Face amount of policies sold, excluding group insurance.
2
U. S. Treasury Daily Statement. Cash sales, including unclassified sales.
3 New private investments; amounts paid-in as reported to the F H L B B .
* U. S. Treasury Daily Statement. Current redemption value.
130
+ 8. 8 6 %
Postal
savings 5
Mutual
savings
banks 6
Insured
commercial
banks 7
Insured
savings
a n d loans 8
$1, 274, 432
$1, 769, 033
1, 278, 685 $10, 480, 684 $12, 623, 325 1, 811, 181
1, 289, 617
1, 297, 324
1, 301, 304
1, 302!, 552
1, 298, 508
1, 293, 293
1, 296^ 722
1, 297i, 476
1, 295, 432
1, 295!, 860
1, 298 ? 412
-0. 01%
10, 589, 838
12, 754, 750
1, 868, 736
1, 901, 162
1, 928, 835
1, 958, 417
1, 981, 445
2, 019, 809
2, 039, 739
2, 059, 097
2, 085, 410
2, 114,831
2, 143, 360
+ 1.04%
+ 1.05%
+ 8. 1 7 %
5
U. S. Post Office Department. Outstanding principal, represented by certificates of deposit, excluding accrued interest, outstanding savings stamps, and
unclaimed deposits. Figures for the last two months are preliminary.
e Month's Work. All deposits.
78 F D I C . Time deposits evidenced by savings passbooks.
Private repurchasable capital as reported to the F H L B B .
Fee/era/ Home Loan Bank Review
Election and Appointment of Directors and Designation of Oia irmen and V i c e
Chairmen of the Federal Home Loan Banks
•
A N N O U N C E M E N T has been made recently by
the Federal Home Loan Bank Board of: (1) the
election of Classes A, B, and C directors and directors-at-large to serve 2-year terms beginning January
1, 1941 unless otherwise noted; (2) the appointment
of public interest directors to serve 4-year terms beginning January 1, 1941; and (3) the designation of
chairmen and vice chairmen to serve during the
calendar year 1941 or until their successors are
designated and qualified.
D I S T R I C T NO. 1—FEDERAL H O M E LOAN B A N K OF
BOSTON
Chairman: Bernard J. R o t h well, Bay S t a t e Milling Company,
Boston, Massachusetts (reappointed).
Vice Chairman: E d w a r d H . Weeks, Old Colony Cooperative
Bank, Providence, R h o d e Island (reappointed).
Public Interest Director: Joseph H . Soliday, Franklin Savings
Bank, Boston, Massachusetts (renamed).
Class A Director: R a y m o n d P . Harold, Worcester Cooperative Federal Savings a n d Loan Association, Worcester, Massachusetts (reelected).
Class B Director: George B. Lord, P o r t s m o u t h Savings Bank,
P o r t s m o u t h , New H a m p s h i r e (reelected).
Class C Director: Walter P . Schwabe, Thompsonville Savings
a n d H o m e Loan Association, Thompsonville, Connectic u t (reelected).
Director-at-Large:
Milton A. Barrett, Fidelity Co-operative
Bank, Fitchburg, Massachusetts (reelected).
D I S T R I C T NO. 2 — F E D E R A L H O M E LOAN B A N K OF
NEW YORK
Chairman: George MacDonald, Manufacturers' T r u s t Company, New York, New York (reappointed).
Vice Chairman: Francis V. D . Lloyd, P a r k Building and
Loan Association, Rid^efield Park, N e w Jersey (reappointed).
Public Interest Director: Eustace Seligman, Sullivan a n d
Cromwell (law firm), New York, New York (renamed).
Class A Director: C. H a r r y Minners, B a n k e r s ' Federal Savings a n d Loan Association, N e w York, N e w York (reelected) .
Class B Director: Roy H . Bassett, C a n t o n Savings a n d Loan
Association, Canton, New York (reelected).
Class C Director: Louis J. Cohen, Essential Savings a n d Loan
Association, Verona, New Jersey (reelected).
Director-at-Large:
J. Alston Adams, Westfield Federal Savings
a n d L o a n Association, Westfield, New Jersey.
D I S T R I C T NO. 3—FEDERAL H O M E LOAN BANK OF
PITTSBURGH
Chairman: E r n e s t T. Trigg, National Paint, Varnish a n d
Lacquer Association, Philadelphia, Pennsylvania (reappointed) .
Vice Chairman: Charles S. T i p p e t t s , University of P i t t s b u r g h ,
P i t t s b u r g h , Pennsylvania (reappointed).
January 1941
Class A Director: Fred C. Klussmann, Revenue Building a n d
Loan Association, P i t t s b u r g h
(Millvale Borough),
Pennsylvania.
Class B Director: William R e i n h a r d t , T h e Art-Workers'
Building a n d Loan Association, Philadelphia, Pennsylvania (reelected).
Class C Director: A. E . Sheller, First Federal Savings a n d
Loan Association of Altoona, Altoona, Pennsylvania
(reelected).
Director-at-Large: J a m e s R. Flynn, Union Federal Savings
a n d Loan Association, Wheeling, West Virginia.
D I S T R I C T NO. 4 — F E D E R A L H O M E LOAN BANK OF
WINSTON-SALEM
Chairman: Horace S. H a w o r t h , Roberson, H a w o r t h , a n d
Reese (law firm), High Point, N o r t h Carolina.
Vice Chairman: E d w a r d C. Baltz, P e r p e t u a l Building Association, Washington, D . C. (reappointed).
Class A Director: E d w a r d C. Baltz, P e r p e t u a l Building Association, Washington, D . C. (reelected).
Class B Director: J. F . Stevens, Gate City Building a n d Loan
Association, Greensboro, N o r t h Carolina (reelected).
Class C Director: George W. Bahlke, Progress Federal Savings
a n d Loan Association, Baltimore, M a r y l a n d (formerly
director-at-large).
Director-at-Large: George W. West, First Federal Savings
a n d Loan Association of Atlanta, Atlanta, Georgia
(formerly public interest director).
D I S T R I C T NO. 5—FEDERAL H O M E LOAN BANK OF
CINCINNATI
Chairman: Richard P . Dietzman, Attorney, Louisville,
Kentucky.
Vice Chairman: W m . Megrue Brock, T h e Gem City Building
a n d Loan Association, D a y t o n , Ohio (reappointed).
Public Interest
Director: Charles M. Preston, H a m i l t o n
National Bank. Knoxville, Tennessee (renamed).
Class A Director: William A. McMillen, T h e Cuyahoga
Savings a n d Loan C o m p a n y , Cleveland, Ohio.
Class B Director: Charles J. Haase, H o m e Federal Savings
a n d Loan Association, Memphis, Tennessee (formerly
Class C director).
Class C Director: (To be appointed by the Federal H o m e
Loan B a n k Board for t h e year 1941, since there was no
eligible candidate for this class up for election).
Director-at-Large: W. B . Furgerson, P o r t l a n d Federal Savings
a n d Loan Association, Louisville, K e n t u c k y (formerly
Class A director).
D I S T R I C T NO. 6 — F E D E R A L H O M E LOAN BANK OF
INDIANAPOLIS
Chairman: H e r m a n B. Wells, I n d i a n a University, Bloomington, I n d i a n a (reappointed).
Vice Chairman: F e r m o r S. Cannon, Railroadmen's Federal
Savings a n d Loan Association, Indianapolis, I n d i a n a
(reappointed).
I3I
Public Interest Director: Dr. Caiieton B. McCulloch, T h e
State Life Insurance C o m p a n y , Indianapolis, I n d i a n a
(renamed).
Class A Director: Walter J. L. R a y , S t a n d a r d Savings a n d
Loan Association, Detroit, Michigan.
Class B Director: W a l t e r H . Dreier, Union Federal Savings
a n d Loan Association, Evansville, I n d i a n a (reelected).
Class C Director: G r a n t H . Longenecker, Peoples Savings
Association, B e n t o n H a r b o r , Michigan (reelected).
Director-at-Large:
F e r m o r S. Cannon, Railroadmen's Federal
Savings a n d Loan Association, Indianapolis, I n d i a n a
(reelected).
D I S T R I C T NO. 7 — F E D E R A L H O M E LOAN BANK OF
CHICAGO
Chairman: Charles E . Broughton, T h e Sheboygan Press,
Sheboygan, Wisconsin (reappointed).
Vice Chairman: H e n r y G. Zander, Jr., H e n r y G. Zander a n d
C o m p a n y (realtors), Chicago, Illinois (reappointed).
Public Interest Director: H e n r y G. Zander, Jr., H e n r y G.
Zander a n d C o m p a n y (realtors), Chicago, Illinois (renamed) .
Class A Director: Lawrence D . Johnson, Fidelity Federal
Savings a n d Loan Association, Galesburg, Illinois (reelected) .
Class B Director: Guy A. Wood, King City Federal Savings
a n d Loan Association, M t . Vernon, Illinois (reelected).
Class C Director: E d w a r d J. Czekala, N a t i o n a l Savings a n d
Loan Association, Chicago, Illinois.
Director-at-Large:
William E . H o d n e t t , Lincoln Savings a n d
Loan Association, Lincoln, Illinois (reelected).
D I S T R I C T NO. 8 — F E D E R A L H O M E LOAN BANK OF
DES MOINES
Chairman: Charles B . Robbins, Cedar R a p i d s Life Insurance
C o m p a n y , C e a a r R a p i d s , Iowa (reappointed).
Vice Chairman: E. J. Russell, M a u r a n , Russell, and Crowell
(architects), St. Louis, Missouri (reappointed).
Public Interest Director: Charles B . Robbins, Cedar Rapids
Life Insurance C o m p a n y , Cedar Rapids, Iowa (renamed).
Class A Director: Adolph F . Leonhardt, E c o n o m y Federal
Savings a n d L o a n Association, St. Louis, Missouri
(formerly director-at-large).
Class B Director: C. R. Mitchell, Jackson C o u n t y Savings
a n d Loan Association, K a n s a s City, Missouri.
Class C Director: E . C. Lundquist, Willmar Federal Savings
a n d Loan Association, Willmar, Minnesota.
Director-at-Large: H . H . Wooledge, N o r t h w e s t e r n M u t u a l
Savings a n d Loan Association, Fargo, N o r t h D a k o t a .
D I S T R I C T NO. 9 — F E D E R A L H O M E LOAN BANK OF
LITTLE ROCK
Chairman: Will C. Jones, Jr., T h e M u r r a y C o m p a n y , Dallas,
Texas (reappointed).
Vice Chairman: Wilbur P . Gulley, Pulaski Federal Savings
a n d Loan Association, Little Rock, Arkansas (reappointed) .
Public Interest Director: Gordon H. Campbell, Campbell,
Mallory, a n d T h r o g m o r t o n (law firm), Little Rock,
Arkansas (renamed).
Class A Director: J. J. Miranne, Security Building a n d Loan
Association, N e w Orleans, Louisiana.
132
Class B Director: R. H . McCune, Roswell Building a n d Loan
Association, Roswell, New Mexico (reelected).
Class C Director: H . T. Leonard, Kosciusko Building a n d
Loan Association, Kosciusko, Mississippi (reelected).
Director-at-Large:
Grover J. Casselberry, First Federal Savings a n d L o a n Association of E l Paso, E l Paso, Texas
(reelected).
DISTRICT
NO. 1 0 — F E D E R A L H O M E
OF T O P E K A
LOAN
BANK
Chairman: P a u l F . Good, Good, Good, a n d K i r k p a t r i c k
(attorneys), Lincoln, N e b r a s k a (reappointed).
Vice Chairman: Ross E . T h o m p s o n , United F e d e r a l Savings
a n d Loan Association., Tulsa, Oklahoma.
Class A Director: Ross E. Thompson, United Federal Savings
a n d Loan Association, Tulsa, Oklahoma.
Class B Director: Sanford Cheves, First Federal Savings a n d
Loan Association of Colorado Springs, Colorado Springs,
Colorado.
Class C Director: Doris E. Soden, T h e Goodland Building a n d
Loan Association, Goodland, K a n s a s (reelected).
Directors-at-Large:
E v a l d M. F o r s y t h , First Federal Savings
a n d Loan Association of Lincoln, Nebraska.
E. F . Swan, E m p i r e Savings, Building a n d Loan
Association, Denver, Colorado, was elected a directorat-large to fill t h e unexpired portion of t h e 2-year t e r m
ending December 3 1 , 1941.
DISTRICT
NO. 11—FEDERAL H O M E
OF PORTLAND
LOAN
BANK
Chairman: Ben A. P e r h a m , P e r h a m F r u i t C o m p a n y , Y a k i m a ,
Washington.
Vice Chairman: Ben H . Hazen, Benjamin F r a n k l i n Federal
Savings a n d Loan Association, P o r t l a n d , Oregon.
Class A Director: E. E. Cushing, Citizens Federal Savings and
Loan Association, Seattle, Washington.
Class B Director: R o y N . Gilbert, H o m e Federal Savings and
Loan Association, N a m p a , I d a h o .
Class C Director: J. M. Person, Washington Federal Savings
a n d Loan Association, Hillsboro, Oregon (reelected).
Director-at-Large:
A r t h u r S. Cory, Lewis C o u n t y Savings and
Loan Association, Chehalis, Washington.
DISTRICT
NO. 1 2 — F E D E R A L H O M E
O F LOS A N G E L E S
LOAN
BANK
Chairman: D a v i d G. Davis, R a p h a e l Weill a n d C o m p a n y ,
San Francisco, California (reappointed).
Vice Chairman: Albert J. Evers, Housing A u t h o r i t y of the
City a n d C o u n t y of San Francisco, San Francisco,
California (reappointed).
Class A Director: P a u l E n d i c o t t , Home-Builders' Loan Association, Pomona, California (reelected).
Class B Director: Harold A. Noble, San J o a q u i n Building and
Loan Association, Stockton, California.
Class C Director: I. F . Noxon, C e n t u r y Federal Savings and
Loan Association, S a n t a Monica, California.
Director-at-Large: Joseph G. Rice, F i r s t Federal Savings a n d
Loan Association of Phoenix, Phoenix, Arizona, (reelected).
Federal Home Loan Bank Review
U.
S.
GOVERNMENT
PRINTING
OFFICE:
1941
FEDERAL HOME LOAN BANK DISTRICTS
-{(04
mmmmm BOUNDARIES
9
FEDERAL
OF FEDERAL
HOME
HOME LOAN BANK
LOAN
BANK
DISTRICTS
CITIES
OFFICERS OF FEDERAL HOME LOAN BANKS
BOSTON
B.
CHICAGO
J. ROTHWELL, Chairman; E . H . W E E K S , Vice Chairman; W . H .
NEAVES,
President;
H.
N.
FAULKNER,
WINANT,
Treasurer;
L.
E.
DONOVAN,
Vice
President;
Secretary;
P.
A.
FREDERICK
G A R D N E R , President; J. P . D O M E I E R ,
HENDRICK,
Treasurer; CONSTANCE M . W R I G H T , Secretary; UNGARO & SHERWOOD,
Counsel.
Vice President; H . C .
JONES,
Counsel.
NEW
GEORGE
C. E . BROUGHTON, Chairman; H. G. ZANDER, JR., Vice Chairman; A. R.
V.
D.
LLOYD,
Vice
Chairman;
C. B . R 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 -
ROBERT
G.
CLARKSON,
Vice
President-
Secretary; D E N T O N C. L Y O N , Treasurer; F . G. STICKEL, J R . , General
SON, President-Secretary; W . H . LOHMAN, Vice President-Treasurer;
J. M. MARTIN, Assistant Secretary; A. E . MUELLER, Assistant Treasurer;
Counsel.
EMMERT, JAMES, N E E D H A M & L I N D G R E N , Counsel.
L.
BLISS,
Chairman;
D E S MOINES
F.
G.
MACDONALD,
YORK
President;
PITTSBURGH
E.
T . T R I G G , Chairman; C. S. T I P P E T T S , Vice Chairman;
ARDS,
President;
G.
R.
PARKER,
Vice
President;
H.
R. H .
H.
LITTLE ROCK
RICH-
GARBER,
Secretary-Treasurer; R. A. CUNNINGHAM, Counsel.
W. C. JONES, J R . , Chairman; W . P . GULLEY, Vice Chairman; B . H .
WOOTEN, President; H . D . WALLACE, Vice President-Secretary; J. C .
C O N W A Y , Vice President; W . F . T A R V I N , Treasurer; W . H . CLARK, J R . ,
Counsel.
WINSTON-SALEM
H. S. HAWORTH, Chairman; E . C. BALTZ, Vice Chairman; O. K.
LAROQUE, President-Secretary; G. E . W ALSTON, Vice President-Treasurer; Jos. W. HOLT, Assistant Secretary; T . SPRUILL THORNTON, Counsel.
TOPEKA
P. F . GOOD, Chairman; R o s s THOMPSON, Vice Chairman; C. A. STERLING,
President-Secretary; R. H . BURTON, Vice President-Treasurer; JOHN
S. D E A N , JR., General Counsel.
CINCINNATI
R.
P.
DIETZMAN,
Chairman;
¥ M . MEGRUE
BROCK,
Vice
WEBB,
J R . , Secretary; A. L.
MADDOX,
Treasurer; T A F T ,
PORTLAND
Chairman;
W A L T E R D . SHULTZ, President; W . E . J U L I U S , Vice President; D W I G H T
STETTINIUS
& HOLLISTER, General Counsel.
B E N A . PERHAM, Chairman; B E N H . HAZEN, Vice Chairman; F . H .
JOHNSON,
President-Secretary;
IRVING
BOGARDUS,
Vice
President-
Treasurer; Mrs. E . M . J E N N E S S , Assistant Secretary; V E R N E
DUSEN-
BERY, Counsel.
INDIANAPOLIS
H. B . WELLS, Chairman; F. S. CANNON, Vice Chairman-Vice President;
F R E D T . G R E E N E , President; G. E . OHMART, 2nd Vice President; J.
C
M O R D E N , Secretary-Treasurer; J O N E S , HAMMOND, BUSCHMANN & G A R D -
NER, Counsel.
Los
ANGELES
D . G. D A V I S , Chairman; A. J. EVERS, Vice Chairman; M . M . H U R FORD, President; C. E . BERRY, Vice President; F . C. N O O N , SecretaryTreasurer; VIVIAN SIMPSON, Assistant Secretary.
@FedFRASER