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FEDERAL
HOME
LOAN
BANK
Kington, January 1942
CONTENTS
FOR
JANUARY - 1942
ARTICLES
FEDERAL
HOME
Page
FROMDEFENSE
TO V I C T O R Y
102
T o w a r d a full war economy—Digging in: t h e new goal—Adjustment
of operating policies—A realistic a p p r o a c h : t h e solution.
INITIAL STEPS IN R E N T CONTROL
105
T h e prelude t o rent control in W a s h i n g t o n — T h e District of Columbia
Emergency R e n t Act—Adjustment of t h e base rents a n d services—
Opportunities for court review—Rent regulation in t h e over-all PriceControl Bill—Fair R e n t Committees: a stop-gap.
LOAN
PROGRESS IN PENSION PLANS
BANK
DEFENSE
108
Deciding on t h e t y p e of p l a n — T h e cost of an a d e q u a t e retirement prog r a m — T h e question of eligible employees a n d p a s t service—Problem
of s e t t l e m e n t — T h e opinion of m a n a g e m e n t .
BONDS—A GREATER TASK
AHEAD
112
Seven m o n t h s of defense bond sales—Evolution of plans a n d m e t h o d s —
Savings a n d loan participation—Successful sales m e t h o d s .
To
REVIEW
O W N OR R E N T — N E W L I G H T ON AN O L D Q U E S T I O N
116
Basis of t h e s u r v e y — R e n t a l values versus money expenses of home
ownership—Variations in ownership costs—Cost elements in home ownership—Home ownership is no class privilege.
MONTHLY SURVEY
Published Monthly by the
FEDERAL HOME LOAN
BANK BOARD
John H. Fahey, Chairman
T. D. Webb, Vice Chairman
F. W. Catlett
W. H. Husband
F. W. Hancock, Jr.
FEDERAL HOME LOAN
BANK SYSTEM
FEDERAL SAVINGS AND LOAN
ASSOCIATIONS
FEDERAL SAVINGS AND LOAN
INSURANCE CORPORATION
HOME OWNERS' LOAN
CORPORATION
mill!
Vol.8
No. 4
Highlights a n d s u m m a r y
121
General business conditions
Residential construction
122
122
Foreclosures
Building costs
New mortgage-lending activity of savings a n d loan associations
Mortgage recordings
Federal H o m e Loan B a n k System
Insured Savings a n d loan associations
123
123
124
124
125
125
STATISTICAL 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 Bank advances—Government investments in savings a n d loan associations—Private long-term savings
126-134
REPORTS
T h e h o m e front
Directory of member, Federal, a n d insured institutions a d d e d during N o v e m b e r December
F r o m t h e m o n t h ' s news
Election a n d a p p o i n t m e n t of directors a n d designation of chairmen a n d vice
chairmen of t h e Federal H o m e Loan Banks
104
107
Ill
135
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.
FROM DEFENSE TO VICTORY
"I ask that the Congress declare that, since the unprovoked and
dastardly attack by Japan on Sunday, December 7, a state of war
has existed between the United States and the Japanese Empire."
President's Message to Congress, December 8, 19^1
•
The bombs which in the dawn of December 7 fell
on Pearl Harbor have set the whole world on fire.
From the day when Hitler's armies marched into the
plains of Poland—little over two years ago—the
theatre of this war has been extended over everwidening areas. The treacherous attack by Japan
has now brought our own country, and indeed the
whole Western Hemisphere, into the conflict.
This is total war—not only because it is a life-anddeatb struggle between two conflicting ways of living,
and not only because it embraces all the great world
powers, but also because no single group in any nation
can escape its consequences. All private interests
and every line of business from now on will be subordinate to the exigencies of war, much more so than
under the preparatory period of the national defense
program drawn up after the collapse of France.
TOWARD A F U L L W A R ECONOMY
With dramatic rapidity we are proceeding from the
now outmoded defense program to a victory program
which will assure a successful termination of this
world struggle. In this transition the adjustments
forced upon our economic system by the defense
effort of the past year or so will stand us in good
stead now that actual war has come. For in many
respects the war will simply bring an intensification
of our past efforts to make this country the arsenal
and larder of the democracies. What will this mean?
We need a larger Army and a bigger Navy which
will involve withdrawal of much more manpower
from production than we witnessed in the past.
We need more tanks and planes, more guns, more
ships, more ammunition, more of everything that
makes up a modern fighting force. To get these
things produced the civilian consumer will have to
tighten his belt. Already the output of most of
our key industries has been at capacity rates, and
while some new plants may be built and others
expanded to produce additional war material, the
bulk of the new requirements for the implements of
war will have to come from a reduction of civilian
consumption.
102
We shall, therefore, see an even greater dislocation of industry than in the past year, to a point
where perhaps 40 to 50 percent of current production
will be devoted to armaments as against an estimated 15 percent toward the end of 1941. More
defense housing will be needed to take care of civilian
and enlisted personnel of our expanding military
forces and of additional workers drawn into armament centers. If there was any hope for the maintenance of a modicum of nondefense construction,
this hope has now been shattered. The list of
critical materials will probably be extended as time
goes on. The shift from priorities to direct allocation of scarce products and rationing of some consumers' goods, already under way, will be accelerated.
A greater effort must be made to direct the savings
of the people into Treasury coffers to finance the
gigantic expenditure involved in modern warfare.
Coupled with increasing taxes, this will undoubtedly
limit the flow of money into private institutional
savings channels. Price control, in one way or
another, will be strengthened.
DIGGING I N — T H E N E W GOAL
In the face of this sketchy outline of things to
come, adjustment of operating policies, without
hysteria but with firm determination, is the greatest
challenge to the managerial ability of savings and
loan executives. In this total war it would be
hazardous to hope that the experience of 1917-18,
when savings and loan operations were but little
affected by the war, will be repeated. The world
has grown smaller in the intervening years. Today
what happens on a military front thousands of miles
away has a direct bearing on people's actions throughout the country, and business leaders tie in their
own day-to-day decisions with the great political,
military, and economic strategy which determines
the fate of all of us.
At the same time, our whole social and financial
structure is better fortified than 25 years ago to
stand the shock of a war. In the realm of finance,
the Federal Reserve System which was in its infant
Federal Home Loan Bank Review
stage when World War I broke out is now the tested
bulwark of our banking system. The Federal Home
Loan Banks stand ready to strengthen thrift and
home-financing institutions in case of need. Federal
insurance of bank deposits and of investments in
savings and loan associations instills in savers a
feeling of security and safety which is a major factor
on the home front. I n fact, the performance of the
stock exchanges, the firmness of Government bonds,
and the maintenance of normal operations in all types
of financial institutions during the first few weeks of
the war are testimonies not only to the calm spirit
of the mass of the people but to past achievements
which justify this confidence.
ADJUSTMENT OF OPERATING POLICIES
In the past few years, the active institutions in
the savings and loan industry have enjoyed a steady
and rapid growth. Even the year just ended, although overshadowed by the war, was a period of
peak volumes in savings and lending operations as
well as in earnings. Now we face the fact that, along
with other peace-time pursuits, the financing of
homes through the normal processes of private savings must partly yield to the necessities of war.
Instead of operating in an expanding market, farsighted savings and loan executives are now thinking in terms of consolidating, "digging in", and preparing for the aftermath.
Because of this re-orientation, the operating
policies outlined in the Ninth Annual Report of the
Federal Home Loan Bank Board and summarized in
last month's R E V I E W are now all the more timely. In
brief, these suggested policies are directed toward
the strengthening of reserves by realistic adjustments of dividend rates and, if necessary, by reduction of operating expenses; the maintenance of
liquidity positions and of credit lines adequate for
an emergency period; conservative appraisals in the
face of rising building costs; special safeguards in
new lending operations to absorb the extraordinary
risks which may be assumed; and intelligent collection policies, including the possible encouragement of mortgage-loan prepayments by borrowers—
as a hedge against future delinquencies.
In the matter of dividend rates it is interesting to
note that an appreciable number of associations are
in the process of reducing their rates further although
some of them are already at comparatively low
levels. In the present emergency, excessive dividend rates are even less justifiable than under normal
conditions because the foremost job before the
January 1942
management of thrift and home-financing institutions
is to protect these institutions against the exigencies
of the future by a rapid building-up of reserves.
Moreover, the maintenance of the 1941 level of
earnings is in no way assured.
Savings and loan associations will intensify their
participation in the defense savings drive, discussed
elsewhere in this issue. Not only do they have a
vital stake in final victory but they have a direct
interest in the control of inflationary tendencies
which may become more acute as war expenditures
mount at a rapid rate. Furthermore, patriotic
motives as well as business considerations will lead
them to invest larger amounts in Government
securities which offer profitable yet liquid investment
outlets for surplus funds resulting from restricted
lending opportunities.
Other management problems likely to arise relate
to the replacement of employees called into military
service and the training of junior personnel who may
be called upon to assume broader responsibilities.
Associations on the West and East coasts will also
give some consideration to safeguarding their records
against possible destruction from the air.
Although it is to be hoped that damage to real
property from enemy action will never reach disastrous proportions in the continental United States,
mortgage-lending institutions are, of course, vitally
interested in measures to provide adequate compensation for such losses. In contrast to the delays which
marked the passage of the War Damage Act in
England, the Administration has lost no time in
taking the initial step for such protection by establishing the War Insurance Corporation (see page 104).
A REALISTIC APPROACH—THE SOLUTION
Operations under actual war conditions will give
rise to many new and vexing problems. If these
problems are approached realistically and courageously, there is no doubt that savings and loan
associations, backed by the resources of the Federal
Home Loan Bank System and the safeguards of
share insurance for their investors, will meet the
test. The British Building Societies have been able,
under trying conditions of two years of war and
under savage bombing attacks on cities and homes,
to maintain an enviable record of stability in all
phases of their operations. There is no reason, in the
condition of savings and loan associations or in the
shape of foreseeable future developments, why
thrift and home-financing institutions in this country
should not match their performance.
103
/Hi
New Priority Forms
for Defense Housing
Beginning January 1 applications
for priority assistance for privately financed defense housing are to be made
on a new form PD 105 Revised. The
new form requires definite statements
as to the amounts at which properties
will sell or rent. Builders must also
agree to erect signs, legible at a distance
of 100 feet, on which are lettered the
serial number assigned to the project,
and sale and rental prices of the family
units under construction.
The new form calls for certain additional statements, among them a
schedule showing the number of new
houses to be started each month, and
an agreement by the builder to keep
copies of all of his purchase orders to
which he applies the rating issued, and
to make reports as called for.
*
*
*
*
*
Bombing Insurance for A l l
Acting promptly within the first
week of declared war, the Government
established a scheme of war damage
protection to indemnify property
owners for losses resulting from the
hazards of war. To this end, the War
Insurance Corporation was formed on
December 13 and eauipped with a
capital of $100,000,000 supplied by
the Reconstruction Finance Corporation. Originally restricted to the
continental United States, the plan
was later extended to include Alaska,
Hawaii, the Philippine Islands, Puerto
Rico, and the Virgin Islands.
This insurance covers "damage to,
or destruction of, buildings, structures
and personal property." Standard
property insurance does not provide
this coverage. For the time being no
premiums are required of property
owners and no declarations are necessary except in the cases of a loss. Not
covered by this insurance are paper
evidences of wealth such as bills, currency, or securities, and works of art.
Further regulations are expected in
the near future and may possibly be
patterned in some measure after the
War Damage Act in Great Britain
which went into effect on March 26,
104
1941. U n d e r the B r i t i s h system
property owners are required to pay
premiums which are to be augmented
by Government contributions if the
premiums paid are insufficient to meet
the losses.
Assistance for Completion
of Nondefense Housing
A plan to make critical materials
available for completion of privately
financed nondefense housing for which
foundations were in place on October 9
was put into effect on December 23.
Under the plan, A-10 preference ratings are made available for materials
necessary to complete homes and
apartment houses which cannot qualify
for priority assistance under the defense housing plan.
Officials of the Division of Civilian
Supply estimate that approximately
70,000 dwelling units now under construction are in the classification covered by the new plan.
Although application forms differ
from those for defense housing, the
procedures are about the same. Application forms must be filed with the
proper FHA field office.
At the same time priority assistance
has been extended for the completion
of USH A-financed slum-clearance projects which are in the process of construction. Altogether 7,042 low-rent
dwelling units are affected by this
measure.
*
*
*
*
*
San Diego Revises
Its Building Code
Revision of the City Building Code
because of the increasing scarcity of
materials for nondefense purposes has
received its initial tryout in San Diego,
California. Conservation and substitution in both materials and methods, without sacrifice of safety in
construction, is the keynote of the
Emergency Regulations recently issued
in that City.
The Regulations state: " I t will be
the policy of the Building Department
to cooperate to the fullest extent in the
matter of substitute methods and
material. However, it will be required
that all necessary data, computations,
etc., be submitted to demonstrate the
adequacy of the design or method."
The following excerpt from the
technical specifications illustrates definite safeguards that are provided
for the use of substitutes, particularly
for steel. "All reinforcements may be
omitted from walls and foundations of
either unit masonry or concrete provided that walls and foundations of
brick shall consistently be increased
in thickness. . . . Wall and foundations of hollow units, whether of
concrete materials, burned clay, etc.,
shall be consistently increased in thickness and laid up with mortar as
described for bricks with full b e d s . . . . "
At the same time this revised code
avoids the danger of becoming a
strait jacket to the building industry
since it definitely does not rule out the
possible use of such adequate substitutes and methods as may subsequently develop. "Any other approved method of producing structually safe walls of unreinforced
masonry will be given consideration.''
*
*
*
*
*
Stabilized Prices
for Lumber Products
Pending the establishment ofTa
formal ceiling price schedule, Price
Administrator Henderson announced
on November 29 that prices have been
stabilized for doors, door frames, sash,
window frames, and screens made of
Western pine. At the same time a
schedule of maximum prices on Douglas fir doors, representing a reduction of
approximately 15 percent from current
levels, was issued.
This action represents the first
taken by OP A on finished lumber products. The Office previously has placed
ceilings on Douglas fir plywood, Douglas fir lumber, and Southern^pine
lumber.
Progress in
Priority Ratings
Construction of 86,743 housing
units in defense areas has been provided for through the issuance of 5,962
preference rating orders during the 10week period ending December 5.
These units are to be located in 290
cities, towns, and small communities
which have suffered overcrowding
because of the influx of war workers.
Federal Home Loan Bank Review
INITIAL STEPS IN RENT CONTROL
The approval of the District of Columbia Emergency Rent Act early
in December marks the beginning of legislation to regulate and control
residential rents. Provisions of the over-all Price Control Bill now
before Congress, together with the voluntary efforts of local Fair Rent
Committees
in more than 140 communities, presage
increased
restrictions on rental operations in all defense areas.
•
E F F E C T I V E measures for regulating and controlling residential rents throughout the duration of the present emergency are rapidly taking
shape. On January 1, the Nation's first rent-control
law began to operate in the District of Columbia.
The Emergency Price Control Act which has already
been passed by the House of Representatives contains broad provisions for the regulation of rents in
all defense areas. As a result, local Fair Rent
Committees which have thus far been forced to
operate on a purely cooperative basis will soon be
supplemented by statutory authority if the necessary
results cannot be achieved by voluntary agreement.
As the scope of restrictions on the normal operations of the real-estate market becomes more widespread, savings and loan managers and boards of
directors, together with executives of all other mortgage-financing institutions must of necessity chart
the course of their present and future activities in
the light of these current developments. Without
implying approval or disapproval of any specific
measures, the following summarization of rentcontrol legislation presents a descriptive analysis
of the methods which are being used and which are
the direct concern of all institutions and individuals
who must operate under them.
T H E PRELUDE TO R E N T CONTROL I N WASHINGTON
Few areas throughout the country face more
serious housing shortages than does the metropolitan
area of the Nation's Capital. With new Government workers arriving a t the rate of more than 1,000
per week, and with the ratio of vacant units already
at an unprecedented low level, it could no longer
be said that a free market existed. On the demand
side, the situation was one of increasingly steady
pressure for housing accommodations in the face of
an acute shortage. The balancing effect of an additional supply of dwelling units was seriously
hampered by restrictions on new construction caused
by shortages in certain building materials required
January 1942
by the military needs of the Nation, and by the
element of time required to construct additional
dwelling units.
The net result of these conditions was evident in
many ways. Dissatisfaction of present tenants who
were faced with increased rents, without an opportunity for corresponding increases in wages and
salaries which in large part were fixed by law, was
undermining employee morale and lowering living
standards. B u t equally important from the viewpoint of a successful prosecution of the war was the
simple fact that many people actually were refusing
to accept positions in Washington because of its
reputation for high rents and high cost of living.
The story, in large part, is analogous to World
War I, but in that case it was 1919 before any legislative action was taken to provide relief for residents
of the District of Columbia. The history of the Ball
Rent Act and the legal tests of its constitutionality
before the Supreme Court are familiar to students of
housing legislation. On the basis of this experience
and similar legislation in several States during this
period, the Consumer Division of the National Defense Advisory Commission worked out a model bill
to control rents during the present emergency. 1
This suggested draft was used by the Office of Price
Administration, members of Congress, and representative groups of real estate interests in the
District of Columbia in the preparation of the
Bill which was adopted on December 2, 1941.
T H E DISTRICT OF COLUMBIA EMERGENCY R E N T A C T
Under the terms of the Emergency Rent Act, the
maximum rent which a landlord may receive and the
minimum service which he may supply, are the rent
and services received and supplied on January 1,
1941; or in case the property was not rented on that
date, the rent and service last received and supplied
during the previous year if the property was rented
at any time during that period. I n the case of housi "An Appraisal of Rent Control," FEDERAL H O M E LOAN BANK REVIEW
April 1941, p. 214.
105
ing accommodations which for one reason or another
were not rented during the year ending January 1,
1941, including new construction, the maximum rent
and minimum services will be determined by the Administrator on the basis of comparable housing accommodations in the District of Columbia.
The date of January 1, 1941 was chosen as a base
on the theory that rent increases after that date were
largely the result of a rental market which was no
longer free because vacancies had become negligible.
According to the Bureau of Labor Statistics survey
for Washington, most of the rent increases of the
past 2 years have occurred since that base date.
ADJUSTMENT
OF THE B A S E R E N T S AND SERVICES
Although the Act stabilizes rents at the January
1941 level, it also makes provision for administrative
adjustments to reflect increased costs of operation
occurring since this date. Whenever a general increase or decrease in taxes or other maintenance or
operating costs has occurred or is about to occur,
the Administrator is permitted to adjust the rent
ceilings to compensate for these changes.
Initiative for adjustments under the Act does not
rest entirely with the Administrator, however. Individual landlords or tenants are permitted to petition the Administrator for adjustment of the minimum service standard or maximum rent ceiling
applicable in their case. These petitions may be
made "on the ground that such maximum-rent
ceiling is, due to peculiar circumstances affecting
such housing accommodations, substantially higher
or lower than the rent generally prevailing for comparable housing accommodations." If this is found
to be true, the Administrator may adjust the rent
ceilings or the service standards in accordance with
the individual case.
In addition to appeal on the basis mentioned
above, a tenant is also allowed to petition the Administrator to adjust the maximum-rent ceiling on
his accommodations if he believes that the ceiling
permits " a n unduly high rent." In this case the
Administrator may adjust the ceiling so that it will
carry out the purposes of the Act and provide " a
fair and reasonable rent for such housing accommodations.''
This provision presents one of the most complicated administrative problems connected with the
entire Act. As originally introduced by Representative Wright Patman, the standards for determining
an "unduly high r e n t " were based on "the investment value of the property and the value of the
106
services rendered"; but this was subsequentl
amended as outlined in the preceding paragraph
during the legislative action of the House of Representatives and Senate.
As long as a tenant continues to pay the rent to
which the landlord is entitled, an owner cannot
recover possession of the dwelling regardless of the
existence of a lease, except under certain specified conditions: (1) if a tenant is violating an obligation of his contract, other than paying a higher rent,
or is committing a nuisance or using the dwelling for
immoral or illegal purposes; (2) if the landlord wants
the dwelling for his immediate and personal use and
occupancy; (3) if the owner has contracted to sell the
property to a purchaser who intends to occupy the
accommodations for his own immediate and personal
use; or (4) if the landlord desires possession for the
immediate purpose of substantially altering, remodeling, or demolishing the property and replacing it
with new construction.
OPPORTUNITIES FOR COURT R E V I E W
Provision is made for court review by the Municipal Court of the District of Columbia of administrative orders resulting from the petitions of either
landlords or tenants. The decisions of this Court
are in turn subject to the review of higher courts as
provided by law.
Violators of the maximum-rent ceilings or minimum-service standards are liable to civil suit
brought by any tenant affected by such unlawful
action. The tenant may sue to rescind his lease,
or to recover twice the amount of the excess rent
charged or twice the value of the services illegally
withheld, or for $50, whichever is greater in either
case, plus costs, and attorney's fees as determined
by the Court.
In contrast to much of the rent legislation passed
during World War I, the new District Act contains a
definite time limit for its effectiveness. All regulations, orders, and requirements under the Act
terminate on December 31, 1945.
R E N T REGULATION IN THE O V E R - A L L
PRICE-CONTROL
BILL
The Emergency Price Control Act as passed by
the House of Representatives late in November,
which is now under consideration in the Senate,
contains several sections governing the regulation of
rents designed " t o prevent speculative, unwarranted, and abnormal increases in prices and rents."
Federal Home Loan Bank Review
Administration of the Price Control Act under
the House version is vested in a single Administrator
whose acts are subject to the review of a five-man
board. Whenever the Administrator feels it necessary to carry out the purposes of the Act, he is
empowered to make suggestions regarding the stabilization or reduction of rents for defense-area
housing accommodations within defense-rental areas.
If these recommendations have not been carried
out satisfactorily by State or local regulation within
60 days, then the Administrator is authorized to
establish such ceilings as in his judgment will accomplish the necessary results.
The Administrator may also regulate or prohibit
speculative or manipulative practices or renting or
leasing practices (including practices relating to
recovery of the possession) which are likely to result
in price or rent increases. Furthermore, the Patman amendment providing tenants with an opportunity of petitioning because of an " unduly high
rent", discussed under the provisions of the District
of Columbia Kent Control law, is included verbatum
in the over-all price-control bill as passed by the
House of Kepresentatives.
The base date to be used for the determination of
ceilings is somewhat earlier than in the District of
Columbia law. So far as practicable, the Administrator is instructed to give consideration to the
rents prevailing on or about April 1, 1940. As
defined by the Bill, a defense-rental area includes
the District of Columbia and any area designated
by the Administrator as an area where defense
activities have resulted or threaten to result in an
increase in the rents for housing accommodations
inconsistent with the purposes of the Act.
All actions of the Administrator may be appealed
to the Board of Administrative Keview, and the right
of petition to the circuit court of appeals is expressly
provided. Willful violations of the provisions of the
Act may be penalized with a fine, an imprisonment,
or both.
public opinion. With the passage of adequate State
and local regulations or, if this is not forth-coming,
the adoption of an over-all price-control measure by
Congress, these citizens , committees will be backed
by statutory authority to enforce local regulations.
The general plans and policies under which Fair
Rent Committees work are well known to the savings and loan industry, and in some instances associations have contributed their active cooperation
to these projects. The Rent Section of the Office
of Price Administration which has general supervision
over the Committees, urges that their first step include the adoption of a generally accepted Fair Rent
Date for the area concerned and then the initiation
of a program to stabilize rents at that point. The
Committees are instructed to consider as reasons for
legitimate increases only those items involving
significant changes in structure and facilities; rises
in cost of maintenance and services; increases in cost
of fuel and utilities; increases in taxes; and finally,
any extraordinary reasons for which the rent charged
on the ceiling date was unusually low.
Directory of Member, Federal/ and
Insured Institutions
Added during November-December
I. INSTITUTIONS ADMITTED TO MEMBERSHIP IN
THE FEDERAL HOME LOAN BANK SYSTEM BETWEEN NOVEMBER 16 AND DECEMBER 15, 1941
DISTRICT NO. 1
N E W HAMPSHIRE:
Salmon Falls:
Rollinsford Savings Bank.
DISTRICT NO. 2
N E W JERSEY:
Millville:
Millville Savings and Loan Association.
Newark:
Berkeley Savings and Loan Association of Newark, Bergen Street
and Lyons Avenue.
Penn Savings and Loan Association of Newark, 14 Ferry Street.
DISTRICT NO. 3
PENNSYLVANIA:
Harrisburg:
The Harris Building and Loan Association, 205 Pine Street.
DISTRICT NO. 4
VIRGINIA:
F A I R R E N T COMMITTEES—A STOP-GAP
Newport News:
The Mutual Home and Savings Association of Newport News.
D I S T R I C T NO. 5
OHIO:
Many R E V I E W readers are already familiar with
the work which has been done in a host of defense
communities through voluntary Fair Rent Committees. These local groups have followed in the
footsteps of the Rent Readjustment Committees of
World War I, and on the basis of the best of this
previous experience have operated to stabilize rent
levels through moral suasion and the pressure of
January 1942
Columbus:
The Standard Savings and Loan Company, 33 North High Street.
Wapakoneta:
The Home Savings and Loan Association.
DISTRICT NO. 8
IOWA:
Charles City:
Charles City Building and Loan Association, 616 Clark Street.
MISSOURI:
Higginsville:
Higginsville Building and Loan Association.
(Continued on p. 115)
107
PROGRESS IN PENSION PLANS
Reader interest in the articles on retirement and pension plans pub'
lished in 1940 has led to additional research on the use of these programs by the industry as a whole. Although the number of plans in
operation is still small, enthusiasm for the general idea remains high.
Savings and loan associations which have reached the "consideration"
stage should find this material helpful in formulating definite plans
for their own employees.
•
T H E Social Security Act, since its enactment
in 1936, has had the effect of making both employers and employees "pension conscious." Particularly has this been true in the savings and loan
business following the inclusion of its employees
under the provisions of the Act beginning in January
1940.
From the start, however, the Social Security Legislation has made no allowance for the past service of
an employee and its benefits create only a limited
foundation for adequate retirement income—a maximum of $85.00 per month, and only a small percentage
of all participants in the plan will be eligible for
checks of this amount. For example, a 30-year old
married employee on the pay roll of an association
on January 1, 1940 who earned an average monthly
salary of $125 until the time of his retirement at age
65 would be eligible for a benefit check of $55.69.
If he were single or a widower, the monthly check
would only be $37.13.
I t is evident that this reduction in current income
will not permit the typical employee to maintain a
standard of living comparable to t h a t enjoyed while
working. Nevertheless, this initial step in the direction of providing for the future security of personnel
has stimulated the thinking of many business executives with a view toward making up the difference
between the Government plan and that amount
necessary for financial independence.
In a series of two articles published during July
and August 1940, the REVIEW analyzed the retirement plans of five of the pioneer institutions providing such protection for their employees; and in addition described the proposed group plans under
consideration at that time by savings and loan associations and mutual savings banks in the State of
New York. During the past year the number of
savings and loan associations known to be operating
some form of employee pension or retirement program has risen to 14, and several more associations
108
have such plans under observation at the present
time. The group plan offered for members of the
New York State Savings and Loan League, however,
failed to materialize although a similar proposal
has b.een accepted by the mutual savings banks in
the State and is now in effect.
Correspondence received from managing officers
and boards of directors of associations that have
been contemplating the adoption of some form of
^retirement or pension plan for their own employees
has usually requested information on several specific
phases: What type of plan may be used? Approximately how much will it cost to operate? What
employees should be eligible and how can we compensate for past service? For the convenience,
then, of executives who are studying this problem
at the present time, the following sections summarize the answers to these questions as found in
the various association plans already in operation.
DECIDING ON THE T Y P E OF P L A N
Aside from the all-important " y e s " or " n o "
answer to the basic philosophy of providing any form
of retirement or pension income for association personnel, the decision on the type of plan ultimately
adopted is of vital influence on nearly every other
phase of a program of this nature.
Broadly speaking, there are three variations which
may be considered: First, a separate account for
every employee may be set up on the books of the
sponsoring association to which may be credited
both employer and employee contributions together
with regular dividends as they are declared. Second,
an association may undertake to operate a group
retirement fund into which employee and employer
payments will be lumped and out of which the
annuity contracts will be purchased for participating
employees as they retire. The third type of plan
involves the hiring of an insurance company or
Federal Home Loan Bank Review
other outside agency which specializes in the handling
of annuity, retirement, or pension contracts. This
may be carried out either under a blanket arrangement for all employees or on an individualized basis
to fit the particular needs of each member of the
staff.
As might be expected, these methods include
certain advantages and disadvantages. For example, whereas some executives point out the in-
consistency of a thrift institution's going outside
of its own organization for a "savings" job, another
group feels strongly that the use of an outside
agency tends to instill greater confidence on the part
of the employees and a more impartial administration by specialists in annuity work. Again, the
element of impartiality achieved under the third
type of plan also introduces a rigidity which makes
it difficult to take care of exigent circumstances
Summary of retirement and pension plans now being operated by savings and loan associations
Approximate
size
Association
No. of
Plan
emstarted ployees
Participation
Contribution
The Gem City Building and $21,500,000
Loan Association
Dayton, Ohio.
1926
39
Voluntary;
once.
at
Estate account; funds held
in employee's name in
special individual account.
Employee may contribute approximately 5% of
his salary; Association adds a specified percentage
of this amount in relation to service.
Old Colony Co-operative
Bank
Providence, Rhode
Island.
30,700,000
1931
74
Voluntary; effective during 6th month of service.
Annuity contract; operated by life insurance company.
Association contributes approximately one-half
cost; employees contribute in proportion to
their salaries.
Albert Lea Building and
Loan Association
Albert Lea, Minnesota.
2,400,000
1935
4
Compulsory.
Funds held in employee's
name in special individual account.
Employees contribute from $2.50 to $15.00 per
month depending on length of service. Association matches employee contribution.
First Federal Savings and
and Loan Association of
Portland
Portland, Oregon.
3,200,000
1937
13
Voluntary; after 6 mos.
service.
Funds held in employee's
name in special individual account.
Employees contribute 5% of their salaries each
month; when net earnings have been determined,
a bonus amounting to 5% of all salaries is distributed to the individual accounts.
Harvey Federal Savings
and Loan Association
Harvey, Illinois.
3,000,000
1937
17
Voluntary.
Funds held in employee's
name in special individual account.
Employees may contribute up to a maximum of 3%
of their monthly earnings; Association contributions are intended to match those of employees
with allowance for Social Security payment.
Minnesota Federal Savings 23,300,000
and Loan Association
Saint Paul,Minnesota.
1938
79
Compulsory; after 6 mos.
service.
Funds held in employee's
name in special individual account.
Employees may contribute up to 5% of their
monthly salaries and an equal amount will be
contributed by the Association. Payments are
limited to $500 per year for any one participant.
Railroadmen's Federal Savings and Loan Association
of Indianapolis
Indianapolisjndiana.
30,100,000
1938
79
Voluntary.
Group pension fund administered by the Association.
Employees contribute at a fixed rate in proportion
to their salaries; Association contributions are
determined by actuarial requirements.
Capitol Savings and Loan
Company
Lansing, Michigan.
12,800,000
1938
33
Compulsory.
Funds held in employee's
name in special individual account.
Employees contribute 3% of their monthly salaries
and an equal amount is added to the account by
the Association. On salaries of $5,000 and over,
contributions are made on basis of 3% of $5,000.
Peoples Federal Savings and
Loan Association of Peoria
Peoria, Illinois.
9,400,000
1939
23
Compulsory; after 6 mos.
service.
Funds held in employee's
name in special individual account.
Employees may contribute from 2 to 5% of their
monthly salaries; Association contributions are
based on 5% of its profits after dividends, reserves,
and charge-offs have been taken care of.
First Federal Savings and
Loan Association of Detroit
Detroit, Michigan.
11,200,000
1940
16
Compulsory; starting on
January 1 of each year
with at least 3 mos. service by that time.
Funds held in employee's
name in special individual account.
Employees may contribute from 2H to 5% of their
monthly salaries; Association agrees to match
by an equal contribution. Contributions limited
to a maximum of $500 per year for any participant.
First Federal Savings and
Loan Association of San
Diego
San Diego, California.
4,200,000
1940
12
Voluntary; after 1 year.
Employee must then decide within 3 mos. to
participate in the plan.
Funds held in employee's
name in special individual account.
Employees contribute 5%"of their monthly salaries
and the Association adds an equal amount.
First Federal Savings and
Loan Association of New
York
New York, New York.
11,100,000
1941
22
Voluntary; starting on Jan- Annuity contract; operatuary 1, following emed by life insurance company.
ployment.
Employees contribute on the basis of a fixed schedule in proportion to their annual salaries; Association contributes whatever additional amount is
required to provide the monthly retirement
annuity.
Bronx Federal Savings and
Loan Association
New York, New York
2,600,000
1941
4
Voluntary; starting on Jan- Annuity contract; operated by life insurance comuary 1, following empany.
ployment.
Employees contribute on the basis of a fixed schedule in proportion to their annual salaries; Association contributes whatever additional amount is
required to provide the monthly retirement annuity.
Bronxville Federal Savings
and Loan Association
Bronxville, New York.
2,000,000
1941
5
Voluntary; starting on Jan- Annuity contract; operated by life insurance comuary 1, following empany.
ployment.
Employees contribute on the basis of a fixed schedule in proportion to their annual salaries; Association contributes whatever additional amount is
required to provide the monthly retirement
annuity.
January 1942
43383Q
49
effective
Type of plan
109
o
which may arise in the life of any employee and which
may necessitate adjustments which could be made
under a more flexible arrangement where management of the funds remains in the association.
Of the 14 plans under observation, nine employ
various modifications of the first type of individual
accounts, one institution (quite large in size) oper-'
ates its own fund; and the remaining four depend on
insurance companies to handle their plans.
T H E C O S T OF AN ADEQUATE R E T I R E M E N T PROGRAM
The answer to the question of cost will, of course,
inevitably depend on the type of program which is
adopted and the nature and amount of additional
benefits whichit provides for participating employees.
The United States Savings and Loan League Committee on Compensation of Management and Staff,
which has been studying the problem of cost, has
made certain observations which throw light on
this matter. Their findings indicate that the cost
of carrying the Social Security program at the peak
rates now provided in the Act (beginning in 1949)
will vary from 0.5 of 1 percent of gross income for
smaller associations to 0.7 of 1 percent of gross
income for associations having eight or more employees and more than $500,000 in assets.
Assuming that an association contributes to an
employee retirement plan an amount equal to
approximately 4 percent of its annual payroll, the
cost of these payments plus Social Security taxes
would be only about 1 percent of gross income for
the small associations and 1.1 to 1.2 percent of gross
income for the larger institutions.
I t is highly important in setting up any plan that
some method be found to predict accurately the
ultimate cost of the program to an association.
This should prevent a premature abandonment of
the plan by an institution which suddenly discovers
that its maintenance cost is excessively high. If,
for example, the association's contributions are a
fixed percentage of the annual payroll, or if payments
are in accordance with a predetermined contract,
there is no question about this feature; whereas
there may be if an institution undertakes to set up
its own actuarial requirements or to pay out as
needed.
T H E QUESTION OF E L I G I B L E EMPLOYEES AND P A S T
SERVICE
Without exception, the question of which employees are eligible turns upon the length of service
with the organization. Generally an employee must
110
have been working in the association for at least
six months, and more frequently a year is the minimum period required. The plans are usually open
to both male and female employees although the
retirement age for women is ordinarily 60 instead
of 65 as it is for men. Participation is generally on a
compulsory basis; however, some institutions have
found it desirable to make the program voluntary.
The problem of providing for past service of
employees up to the time of inaugurating a plan
such as those discussed here is one of the real difficulties for which a satisfactory solution must be
found. Inasmuch as the Social Security program
of the Federal Government does not make any
allowance for employment prior to the effective
date of the plan, one of the primary aims of individual
programs has been to make up for this deficiency.
In the case of those institutions which have undergone financial reorganization either through merger,
consolidation, purchase of assets, or conversion, the
problem of past service becomes even more complicated. In spite of the fact t h a t allowance for
these back periods involves a higher initial contribution from the association's management, it is
interesting to observe that almost all the plans now
in operation do give credit for prior service.
PROBLEM OF SETTLEMENT
Having agreed upon the type of pension plan to
be used and having determined who is eligible, the
next set of policies to be decided upon is usually
concerned with the settlements made in the case of
employees who have reached retirement age or
whose services are terminated prematurely by
death, voluntary resignation, or management action.
Let us consider first the ordinary case of an employee who stops work upon reaching the retirement
age. If the plan provides for some form of association account, payment is usually made in lump sum
to be used at the discretion of the recipient, or in
some cases the regulations may provide for regular
monthly payments until the fund is exhausted. If
an insurance annuity plan is being used, then a
regular benefit check may be expected each month
as long as the employee lives. Where retirement is
forced at an earlier date because of disability, adjustments are made accordingly and modified payments
are generally available under any type of plan.
In the case of voluntary resignation or dismissal,
nearly every plan provides for a return of all or
almost all of the employee contributions plus accrued
(Continued on p. 119)
Federal Home Loan Bank Review
FROM THE MONTH'S NEWS
HOUSING IS HEALTH: "Housing is
health and temper and a large part of
living. It must be one of a very few
greatest of all questions. Our aim should
be to develop a fine tradition of living in
houses.
Whatever the circumstances
which may enforce economy on a Nation
in the days to come, we may hope for a
continuance of the policy of improving
housing conditions."
Sir Harold Bellman, The
Building Societies' Gazette,
November 1941.
VIEWPOINT: " I doubt any executive
would question the advantages that
would accrue to him and to his organization if he could but withdraw from the
daily scene, and look it over comprehensively from the impersonal point of view
of the customer or of the general public.''
Edmund P . Livingston, The
Month's
Work, November
1941.
DEFENSE HOUSING: "We must recognize that there are conditions under which
private enterprise cannot meet the demand for defense housing and ought not
to be expected to do it. So far as defense
housing, clearly temporary in character, is
concerned, it is the function of Government to furnish it and the Government
should be prepared to take any loss."
Basic guarantees of democracy . . . . .
"For more than one hundred years, savings and loan associations
and other thrift institutions have been turning savings into homes.
Each home has given an American family a 'stake* in its own country
and the broad home ownership which extends throughout this land
today is one of the basic guarantees of its democratic existence.
You have the satisfaction of knowing t h a t your work in past years
has helped to make your country incomparably stronger in the face
of threats from without and subversive movements from within.
Fifth columns simply don't penetrate the ranks of ordinary men and
women who own their own homes. ? '
Franklin D. Roosevelt, President
of the United States, special message to the annual Convention of
the United States Savings and
Loan League, December 1941.
Clearing the books
" T h e corporation strongly urges all insured banks in periods of
generally good business like the present to eliminate non-banking
and substandard assets from their books, either by sale or charge-off.
I t is particularly important t h a t the management of banks with
substantial proportions of such assets take steps to improve their
position at every opportunity."
Leo T. Crowley, Semiannual Report, Federal Deposit Insurance
Corporation.
LUMBER ORDERS AND ESTIMATED PRODUCTION
John H. Fahey, Chairman of
the Federal Home Loan Bank
Board, before New Jersey Association of Eeal Estate
Boards, Dec. 5,1941.
EXCLUDE* SOUTHERN CYPRESS AND NORTHERN HEMLOCK *
M . M . Hurford, President,
Federal Home Loan Bank of
Los Angeles, Beyond the
Figures, October 1941.
January 1942
ORDERSJX /
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ret
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Curt C. Mack, The Mortgage
Banker, Dec. 1,1941.
BASIC: "The desire to build for one's
self, and to defend the right to enjoy the
thing one has builded, is basic in men.
The right so to build, possess, enjoy, and
defend, is Democracy's gift to its citizens. That is why home ownership is
the foundation of our democracy and the
guarantee of its survival."
HAR0WO00S
3
o
CONSTRUCTION COSTS: "Temporary increases in costs cannot be carried over into
valuations which, in conjunction with
other underwriting analyses, are made for
the purpose of determining economic
soundness and of patterning insurable
long-term mortgage loans. Temporarily
increased construction costs reflected in
increased prices paid by the real-estate
market should be recognized as short-term
increases in housing expense."
» » »
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-
*
'.
'
*
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. . •:& - - > .
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Lt>...A..... * A .:.
X.
MAR.
JUM.
ft**:*.)*..*:
SEP
0E&
kL-J. , J k ^ ^>sX.
MAR.
JUN.
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f .A
SEP.
i
01Ed
-
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Source: U.S. Deportment of Commerce
During much of the past two years lumber production has failed to attain the volume of new orders resulting from the defense program, as indicated in this chart. Eecently the mills have striven to increase
their output and during September and October most of the industry was producing in excess of new
orders, reducing the huge unfilled-order files.
Shortage of intercoastal shipping space has restricted the movement of lumber from the West Coast to
East Coast markets and is contributing to the huge demand on the Southern producers.
Domestic Commerce, Nov. 27, 1941
III
DEFENSE BONDS—A GREATER TASK AHEAD
As we enter into a new phase of war financing, a review of achievements
in the first 7 months of the defense savings campaign is appropriate.
A 345-percent increase in defense bond sales by representative savings
and loan associations in the week following the attack on United States
territory indicates a patriotic response which must be transformed into
a sustained effort.
•
T H E defense savings campaign has assumed new
importance since the advent of the " shooting
war." Last December the defense program was
estimated to add up to a total money outlay of
$74,000,000,000, actually spent or authorized. War
operations will multiply the requirements of the
Treasury, and it is imperative that a greater volume
of savings along with more taxes be placed at the
disposal of our country.
The immediate and spontaneous upsurge of defense
bond purchases after the attack on Pearl Harbor
demonstrates that this necessity is generally understood. Paralleling the experience of other agents
for the sale of defense bonds, savings and loan associations throughout the country registered an extraordinary rise in the sales volume of defense savings
bonds, Series E. A spot check made by the Federal
Home Loan Bank Board, including one representative association in each of 120 cities throughout the
United States, disclosed an increase in sales averaging 345 percent for the second week in December
compared with the preceding week, with the
greatest increase in the Los Angeles District. Total
sales of Series E bonds in the United States during
December reached $341,085,000, more than three
times November and the average for the previous
7 months.
SEVEN M O N T H S OF D E F E N S E BOND SALES
Now that a new chapter of war financing begins,
it is perhaps not amiss to review the results of the
defense savings drive before the start of actual
hostilities. During the first 7 months of the campaign the Treasury realized $2,800,611,000 from sales
of special defense bonds. Of this total, $803,575,000
was received from the distribution of Series E, the
security issued primarily to tap the savings of the
average citizen, while Series F sales accounted for
$174,410,000, and Series G, $1,030,625,000. Sales
of Series E bonds during the 7-month period compared with $389,646,000 received by the Treasury in
the same interval of 1940 by the issuance of the socalled baby bonds, and the 106-percent increase in
this operation is perhaps the best yardstick for
measuring the success of the defense savings drive
up to date. On a per capita basis, sales of the E
bond from May through November totaled $6.10
for every man, woman, and child in the United
States, or an average of 87 cents per person per
month.
That much better results must and will be achieved
under actual war conditions is indicated by the
British experience. War bond sales to small savers
in Great Britain over the first 2 years of hostilities
aggregated $4,033,000,000, a total of $86.50 per
person or $3.76 per capita per month. In other
words, the campaign in Britain yielded more than
four times as much as our average over the past 7
months for Series E, on a comparable monthly basis.
EVOLUTION OF PLANS AND M E T H O D S
As in many other respects, these past months have
at least helped to prepare us for the greater tasks
that lie ahead. In the defense savings drive these
months have served to establish a more or less complete set-up for the much needed promotion of war
savings. In addition to the work of the thousands
Federal Home Loan Bank Review
of issuing agents—post offices, banks, savings and
loan associations, and retail stores—and in addition
to the use of general publicity media such as newspapers, radio, and posters, various other methods
have been developed to reach as great a number of
people as possible.
Payroll deduction plans have been instituted to
tap the savings of industrial workers and salaried
personnel. Under this plan, the employee voluntarily authorizes the use of a specific portion of his
periodic earnings for the purchase of defense stamps
and bonds. The method has already been adopted
by 8,000 enterprises employing 12,000,000 workers,
and the Treasury is now working on a vast extension
of this program to include about 60 percent of the
Nation's gainfully employed persons in 16,000 business establishments.
City-wide drives for the sale of defense securities
are being sponsored by local bond committees in the
form of "Victory D a y " programs. The demonstrations usually include parades, luncheon meetings,
addresses, and other community events focusing
attention upon the drive and striving for a 100-percent community participation in the campaign.
A method worthy of note because of the convenience it offers is an automatic draft plan by which a
depositor in a bank or a shareholder in a savings and
loan association authorizes the institution, on a form
specifically designed for the purpose, to purchase
and deliver bonds by charging his account. Commercial banks have also had notable success with
their " B u y a Bond" clubs.
School stamp drives are gaining momentum. The
difficulty in an effective school distribution has been
the absence of any fund with which stamps could be
initially purchased from the post offices. However,
in many localities such funds are now being provided
by banks, savings and loan associations, and other
interested groups.
SAVINGS AND LOAN PARTICIPATION
The phrase " a t your savings and loan association"
is now heard over the air by hundreds of thousands
of people every day when radio announcers enumerate the establishments where defense savings bonds
can be obtained. The efforts of many associations
have been commensurate with the challenge, and
some of these efforts are reflected in the advertisements and window displays reproduced on these pages.
At the end of November, 1,729 savings and loan
associations throughout the country had qualified
January 1942
as issuing agents, and this number has undoubtedly
increased since the collateral requirements devised
at the conception of the campaign were recently
modified. Associations insured by the Federal Savings and Loan Insurance Corporation are no longer
required to tie up their securities if they wish to
qualify as issuing agents. Without hypothecation
an insured association can now obtain a stock of
bonds equal to 50 percent of its "capital and surplus
or guaranty fund or reserve for capital purposes, or
other similar fund or funds, or $50,000, whichever is
the smaller amount," according to the Treasury
instructions. This regulation should permit any
insured institution to acquire a stock sufficient for
its purposes without pledging collateral.
Defense savings bonds will also play a greater
part in the future investment programs of savings
and loan associations. Series F and G bonds, of
which an institution can purchase up to $50,000 in
any one year, have already been acquired by many
associations in substantial amounts. As Government
restrictions on home building are likely to curtail the
volume of new mortgage loans, home-financing institutions will probably be faced with the problem
of seeking other investment outlets and preferably those which can be converted into ready
cash in case of need. These bonds, which are
redeemable after 6 months, possess this desirable
feature of liquidity in addition to being another
tangible means by which savings and loan associations can assist in the victory program.
SUCCESSFUL SALES M E T H O D S
Supplementing their widespread general publicity
for the defense savings program, progressive managers of savings and loan associations have found
some of the more recently developed distribution
methods well adaptable to their use. In several
113
Buy
• FOR DEFENSE *
GUARD
A G A I N S T
LEAN
YEARS
A H E A D -
1
JCefs AH Save Now!
PRIVATE SAVINGS OF TODAY will
Ipp the private purchasing power of tomorrow. Store up purchasing power today for the days ahead in which employment and wages may not be so favorable.
When the defen:
BUY DEFENSE
SAVINGS BONDS
You can enjoy a good standard of living
today and provide financial security for
your family tomorrow by saving today.
Your family and friends will credit you
with being far-sighted if you have
money to tide you ovor a period of
depressed business.
HERE
And, if the transition from defense production to peace time conditions comes
without any shock, you'll have money
to use to travel or to accomplish whatever you wish.
protect yourself and your community
and by preaching saving to your family
and your friends.
H
—Help Your Country
1
—Help Yourself
I
B
X
Save, invest (or detense of your Financial i n d e p e n d e n c e . . . . 57 year:
of
uninterrupted
UNITED STATES
DEFENSE BONDS
*
THESE FEDERALLY INSURED S a v
II
ings and Loan Associations Wei-
ll
with our government in the coun-
H
|
these bonds available to the public.
You c m purchase bonds out-
dividends.
•
Insured Safety
•
H e a d q u a r t e r s fj>r U n i t e d States
•
|
$18.75—or you'can buy'""amps
H
to purchase a bond.
AvsflaHlity.
Defense B o n d s . . and . . Stamps.
Saving money now, and as long as employment conditions are good, is vitally
important It is sto important, in the
judgment of this sav ings,
vie say to you, in all sincerity—
I
FIRST FEDERAL
SAVINGS A N D LOAN ASSOCIATION
^ ^
*v|
Hi
m
>tffl
INSURED SAVINGS & LOAN ASSOCIATIONS J
338 ERIE STREET • TOLEDO
"Save h e r e if yon wish."Save at your favorite bank o r
savings association. Buy your defense bond* and stamps
here if yon wish. Buy them at any post office, bank e r savings
and loan association. You can bay defense savings stamps
at almost all retail stores. But, no matter what may be your
personal choice of savings institution, let's all save now'.**
f
^
|l^pMl
DIXIE
ill" I
DEFENSE SAVINGS
BONDS AND STAMPS
are on sale at our office. You can buy bonds of
Series E (the new Baby Bonds) from $18.75
to $750.00. In ten years, these will have a
maturity value of $25.00 to $1000.00. Defense
Savings Stamps are from 10 cents to $5.00.
JEJII1*
miuu.
WV tOAN ASSOCIATlS?**^
I EUCLID AVENUE
A Friendly
1
U.^S.„^,» J L,..'A,.^ 0 " A "'
Institution
WOMEN'S FEDERAL
United .States
SAVINGS & LOAN ASSOCIATION
Defense Savings
iry • Telephone CHerry 6030
Bonds
Series E
; VOL' <=\VE IS NOT SO IMPORTANT . . . SAVING NOW IS MOST IMPORTANT
ARE Y O U D O I N G YOUR
We Recommend
United States
Detense Savings
Bonds
PART?
been chosen by the Uni ed S
Treasury as a
Defense Bonds W
both you and
gladly and wit
ompensation or profit.
FRIENDLY CITY
Buy
U. S. Defense
Dixie I
©FEDERAL®
Savings and Loan Association
lie MARKET STREET - JOHNSTOWN, PA.
Association
For Defense of Our Country
W e M u s t Have a Two Ocean Navy
Our Armed Forces Must' Be Greatly Increased
A r m y and Navy Needs Must Be Supplied
Billions Must Be Raised By Federal Taxation of Your Income
More billions raised by.borrowing, the Cost Means Deferred Taxation
Millions of New T a x Payers will be brought into the
recently broadened Federal T a x Income Bill now being considered by The Congress.
Some Individuals and families will f i n d their 1941 tox assessment increased two, three or four tiroes.
BUY NOW
When Patriofiam T f R T V O T
and Self-Interest VIM Ml KM • ,
Defense Savings Stamps
F you are uncertain about yourjeconomic
future (most of us are) —
I F you want to plan for the security and independence of those you love —
I F you really want to DO something about it —
THEN the time to stop wondering and worrying is here! The time to resolve your thinking
in a white blaze of definite action, joining
"^wypw»t
strung by doubt and disunity —
I F you see clearly fhat it's high time these
We,Ourselves Have Bought $50,000 G Bonds
The way is clear and simple". Buy United
States Defense Bonds- issued to secure funds
United States pressed on swiftly with steps to
for the protection of all mat we hold dear.
They pay an attractive rate of interest and are
tem of organized society on which is based
direct obligations of the safest and soundest
our entire life —
government in the world.
Old Colony Cooperative Bank is proud to be privileged
to sesve without compensation as an issuing agent for
the new scries E Bonds and io take orders for Series F
and G Bonds. Any ol our representatives — at either
the Main sffleo or branches — wUl be happy to discuss
details-of last securities witb you and to answer any
questions you may have concerning them.
>M&
114
We' ore authorized by the U. S. Treasury to act
as its agent in the sale of the above different classes
ofsecurfties.
is NOW!
protect our rights as Americans and the sys-
i
I ^Sy?' 1 \
U. S. Defense Ponds; Series E, F, G priced at $18.75
to $750.00.
SAVINGS ANDU
high patriotism with intelligent self-interest,
I F you are tired of seeing you* country ham-
U. S. Treasury Tax Notes; Interest Bearing
ill
Start A T ONCE A New Savings Account, or increase
the amount you ore now saving.
These efforts will act as a protection for your Future.
Our Members have never received dividends
on their savings at a rate per annum compounded semi-annually of less than
Invest in your own security, and in liberty's
survival! Invest in Americo, when you buy
United States Pef«n« Bonds, The money
will be used at once to build our defenses:
your money will eqrn approximately 2.97c
o year. We make these bonds availoble
without compensation or profit in co-o
ation with our government.
3%
A l I Accounts Are I nsured Against Loss Up To $5,000.
We Are Members of the Federal Home Loan Bank System
ASSETS September
1,1941
$4,166,000.00
Burlington Federal Savings and Loan Association
186 M a i n Street.
Burlington, Vermont.
SEE YOUR NATIONAL EMBLEM FLUTTERING IN OUR WINDOW
Federal Home Loan Bank Review
cases they assist in the operation of payroll deduction
plans. The institution contacts both employers and
employees; the former agree to collect the installments and to transfer them to the association, which
maintains a separate account for each employee
who has made a pledge under the purchase plan.
The institution then purchases bonds for the employee as the account reaches sufficient size. One
association in New York State is operating a payroll
deduction plan in cooperation with 50 employers and
holds an aggregate of 10,000 such accounts.
Labor leaders state that the difficulty of safekeeping defense bonds after purchase has discouraged
many wage earners from doing their part and suggest the free use of safety deposit boxes for the bonds.
This service, the expense of which is prohibitive to
the average wage earner who only desires to keep a
small number of bonds, entails little cost to the
association and has been offered free of charge by
several financial institutions as their contribution
to the war program.
Apart from the patriotic motive which prompts
many savings and loan associations to assume the
expense involved in such cooperation, managers of
institutions acting as issuing agents continue to
comment upon the "contact" value of the campaign.
One association in the Midwest reports that of
$56,500 worth of bonds and stamps sold during one
month, $22,000 was the result of sales to members of
the institution and $34,500 represented purchases
by nonmembers who were brought into the association by its participation in the defense savings drive.
This is tangible evidence of the importance of this
activity for the establishment of contacts with new
savers and prospective borrowers.
Educating the mass of the people in the habits of
thrift has been one of the principal community functions of savings and loan associations since their
inception. The defense savings campaign, which
will now be intensified and transformed into a war
savings drive, opens up new opportunities for performing this function—opportunities which will be
grasped by aggressive management looking ahead to
the years after the war.
KENTUCKY:
Covington:
South End Building Association, 26 East Twentieth Street (voluntaryliquidation).
MISSOURI:
St. Louis:
Real Estate Building and Loan Association, 311 North Eleventh Street
(liquidation).
N E W JERSEY:
Atlantic City:
Pride of Atlantic Building and Loan Association, 301 Central Building
(voluntary liquidation).
Avalon:
Security Building and Loan Association (voluntary liquidation).
East Orange:
Civic Centre Building and Loan Association, 25 Halsted Street (segregation and sale of assets to the Triumph Savings and Loan Association).
PENNSYLVANIA:
Conshohocken:
Tradesmen's Security Federal Savings and Loan Association, 109 Fayette
Street (merger with Conshohocken Federal Savings and Loan Association) .
Philadelphia:
East Allegheny Avenue Federal Savings and Loan Association, 644 East
Allegheny Avenue (merger with North East Federal Savings and
Loan Association).
West Conshohocken:
Rising Sun Federal Savings and Loan Association, Front and Ford
Streets (merger with Conshohocken Federal Savings and Loan
Association).
II. FEDERAL SAVINGS AND LOAN ASSOCIATIONS
CHARTERED BETWEEN NOVEMBER 16 AND
DECEMBER 15, 1941
DISTRICT NO. 8
MINNESOTA:
Brainerd:
First Federal Savings and Loan Association of Brainerd.
D I S T R I C T NO. 12
CALIFORNIA:
San Luis Obispo:
First Federal Savings and Loan Association of San Luis Obispo (converted from San Luis Building and Loan Association).
CANCELATION OF FEDERAL SAVINGS AND LOAN ASSOCIATION
CHARTERS BETWEEN NOVEMBER 16 AND DECEMBER 15,1941
PENNSYLVANIA:
Conshohocken:
Tradesmen's Security Federal Savings and Loan Association, 109 Fayette
Street (merger with Conshohocken Federal Savings and Loan Association).
Philadelphia:
East Allegheny Avenue Federal Savings and Loan Association, 664 East
Allegheny Avenue (merger with North East Federal Savings and
Loan Association).
West Conshohocken:
Rising Sun Federal Savings and Loan Association, Front and Ford
Streets (merger with Conshohocken Federal Savings and Loan Association).
III. INSTITUTIONS INSURED BY THE FEDERAL
SAVINGS AND LOAN INSURANCE CORPORATION
BETWEEN NOVEMBER 16 AND DECEMBER 15,
1941
D I S T R I C T NO. 2
N E W YORK:
Hamburg:
Hamburgh Savings and Loan Association, 11 Main Street.
D I S T R I C T NO. 3
PENNSYLVANIA:
Conshohocken:
Conshohocken Federal Savings and Loan Association, 119 Fayette
Street.
Corry:
Corry Building and Loan Association, 10 South Center Street.
D I S T R I C T NO. 5
OHIO:
Wapakoneta:
The Home Savings and Loan Association, 112 West Anglaize.
Directory of Member Institutions
(Continued from p. 107)
WITHDRAWALS FROM THE FEDERAL HOME LOAN BANK
SYSTEM BETWEEN NOVEMBER 16 AND DECEMBER 15, 1941
ILLINOIS:
Galesburg:
Provident Savings Association, 232 East Simmons Street (merger with
Mechanics Homestead and Loan Association).
January 1942
DISTRICT NO. 7
ILLINOIS:
Alton:
Home Building and Loan Association of Alton, Broadway and Piasa
Street.
East Alton:
The Citizens Building and Loan Association of East Alton, Illinois.
D I S T R I C T NO. 12
CALIFORNIA:
San Luis Obispo:
First Federal Savings and Loan Association of San Luis Obispo, 1135
Chorro Street.
115
TO OWN OR TO RENT—NEW LIGHT ON AN
OLD QUESTION
Home owners currently pay less than do renters for comparable
accommodations, a survey including 26,000
families in selected
cities reveals. The same study confirms evidence that home ownership is widespread among all classes of the population.
•
T H E old controversy on the costs of home
ownership versus those of renting comparable
living quarters received new light recently when the
Bureau of Labor Statistics completed a survey x
comparing these costs among renters and owners in
the same income groups in selected cities throughout
the United States.
A realistic appraisal of housing costs in terms of
ownership expenses and rentals is beset with many
difficulties. T h e home owner incurs certain current
money expenses—for loan payments, taxes, insurance, and repairs—and it is relatively easy to compare these expenditures with the rent he would
have to pay for equivalent rental accommodations.
However, there are other cost elements which enter
into the comparative statement and which may be
labeled "computed expenses" of home ownership.
Among these elements is the interest on the home
owner's equity and the cost of property depreciation
and obsolescence which can not be accurately ascertained before the home owner disposes of his
house. On the other hand, no statistical comparison
of housing costs can express the intangible values of
home ownership, which cannot be measured in
dollars and cents. And yet, the sense of security,
protection against excessive rent increases, pride in
ownership, and convenience for bringing up a family
are real and substantial benefits afforded by home
ownership.
In spite of these limitations, the survey will be of
value to all those interested in housing and home
ownership because it is the most recent broad comparison of housing costs among owners and renters.
As a basis for the study, data on housing costs were
gathered for the period 1935-1936 from 26,000
families typical of a specific group from the standpoint of income, occupation, family composition,
and home tenure in the cities of Providence, Columbus, Atlanta, Omaha, Denver, and Portland as well
as the metropolises of New York and Chicago and
several groups of small cities throughout the country.
Rental values reported for owned homes represent
an estimate of the amount for which the properties
would rent, in the light of rents paid for similar
accommodations in the same neighborhood. Before
determination of the actual amount, estimates made
by the occupants were carefully checked b y the
investigators with rents of comparable dwellings.
In the computation of ownership costs, three
items were included: mortgage interest, taxes and
insurance, and repairs and replacements. Payments
toward principal reductions of home mortgages were
omitted since they were regarded as decreases in the
mortgagor's capital liability. Among the families
selected for the survey were debt-free home owners
as well as owners of mortgaged properties.
B A S I S OF THE SURVEY
During the year 1935-36, home owners with
incomes between $1,000 and $10,000 expended from
$107 to $800 less than did renters for similar accommodations. On the average this difference ranged
from $150 to $217—a margin of $12.50 to $17 a
month between the rental value of an owner-occupied
home and the out-of-pocket expenses paid by the
owner. This margin—the money one would spend
to rent a structure less the expense he actually incurs
by owning the identical dwelling—tends to become
greater with each rise in income and rental level
but the ratio between this figure and rental value
The survey presented by the Bureau of Labor
Statistics makes it possible to compare the "rental
value" of owner-occupied homes with the "out-ofpocket" expenses of home owners. I n other words,
this study includes the current money outlays of
home owners b u t does not take into account computed expenses such as interest on equity capital
and depreciation.
i Family Expenditures in Selected Cities, 1935-36; Bulletin 648, Volume I,
Housing; Study of Consumer Purchases, U. S. Department of Labor. Data
given in this article refer only to white nonrelief families.
116
RENTAL
VALUES
VERSUS
MONEY
EXPENSES
OF
HOME OWNERSHIP
Federal Home Loan Bank Review
remains near 50 percent quite constantly along the
length of the income scale. In other words, if the
average home owner were to rent a house comparable
to his own, he would pay twice as much for it as he
does at present, in terms of out-of-pocket expenses.
From this, the conclusion may be ventured that
owned quarters are superior to rented dwellings
occupied by families of the same income level since
persons receiving the same income tend to expend
about the same proportion of it for housing. In
order to do so, the renter must find a dwelling which
is available at a cost comparable to the aggregate of
an owner's money expenses.
The accompanying table shows the proportion of
money expense of home owners to rental value in
the various income groups.
homes in large cities ranged from $176 in Omaha to
$459 in New York. I t appears that costs of ownership are not primarily related to city size, notwithstanding the position of New York City as the most
expensive locality in which to own one's home.
There is less correlation between size of city and
ownership costs than between the age of the specific
settlement and the costs of home ownership. In the
New England region, for example, home owners in
the medium-sized cities had relatively higher expenses than did Providence families, while in some
income brackets the ownership costs in small cities
exceeded those in Providence, which typifies large
cities in this region. At the lowest income levels
home owners in the cities surveyed spent as little as
$100 on the average for the current expenses of
ownership.
VARIATIONS IN OWNERSHIP COSTS
COST ELEMENTS IN H O M E OWNERSHIP
Regional differences are, of course, notable in the
costs of both owning and renting. In the Pacific
Northwest housing expenditures generally are lower
than in the other regions covered. Within each
region, housing expenditures of families living in the
middle-sized and small cities tend to be lower than
those of families residing in large cities and
metropolises.
Disregarding differences in the income distribution of home owners, average expenses on owned
By relating the various items in current ownership
expenses to rental values as a common denominator,
the survey makes it possible to gauge their relative
weight in the owner's housing budget.
Compared with rental value, mortgage interest
represents from 25 to 35 percent in New York, between 20 and 30 percent in Chicago, Providence,
Columbus, and Atlanta and from 15 to 20 percent in
the other cities.
Money expense of home ownership as a percentage of total rental value of owned homes,
by income class
Large cities
Metropolises
Income class
New
York
$500-$749
$750-$999
$1,000-$1,249___
$1,250-$1,499___
$1,500-$1,749„__
$1,750-$1,999—
$2,000-$2,249—
$2,250-$2,449___
$2,500~$2,999___
$3,000-$3,499___
$3,50O-$3,999..-_
$4,000-$4,999_ —.
$5,000-$7,499___
$7,500-$9,999___.
$10,000 and over
108. 0
35. 7
73. 6
64. 9
79. 8
76. 1
61. 1
73.5
78.0
81. 8
70. 7
72.9
84. 7
78.0
115. 9
Chicago
Providence
43.0
98.3
66. 6
51. 6
62. 3
64. 5
66.0
63. 7
63. 8
53. 5
58. 2
51. 9
55.0
46. 4
74.9
35. 9
47. 7
53. 6
60. 4
65. 9
67.3
54. 9
51.2
67.0
52. 6
45. 9
52. 1
57. 7
3
Columbus
3
46.
39.
46.
59.
51.
45.
48.
49.
47.
49.
39.
42.
40.
63.
6
3
6
1
2
7
7
2
8
2
7
1
2
5
Atlant
3
58. 5
65.0
56. 5
57. 8
47. 6
52. 1
46. 9
54. 4
44. 3
52. 3
47.9
56. 0
48. 0
44. 2
Omaha—
Council
Bluffs
3
41. 4
49. 8
53. 0
37
53.
39.
43.
39.
45.
40. 7
46. 1
38.4
49. 4
43. 2
E a s t central cities
Denver
Portland
24
47.
36.
36.
49.
51.
47.
46.
47.
48.
54.
43.
47.
41.
43.
54.
46.
57.
56.
51.
55.
51.
46.
54.
61.
57.
57.
46.
3
5
1
4
3
7
5
3
6
5
5
5
5
9
4
9
4
6
9
6
1
2
6
4
8
4
7
8
6
Middlesized J
3
51. 5
41. 1
43. 5
45. 9
42. 7
50.3
49.2
42. 7
45.8
48. 9
45. 6
36. 7
56. 2
Small 2
44. 0
59.3
44. 7
73. 5
56. 3
48. 2
48. 6
50. 8
54. 7
51. 3
1
Springfield, 111., Muncie, Ind., and New Castle, P a .
Beaver Falls, Pa., Connellsville, P a . , Logansport, Ind., M a t t o o n , Ind., and Peru, 111.
There are relatively few families reporting incomes above this figure in the community. For t h a t reason the d a t a have
been included in this bracket and t h e percentage applies both to t h e stipulated and higher income'brackets.
2
3
January 1942
II7
PERCENT OF OWNER-OCCUPIED HOMES IN SELECTED CITIES
BASED ON REPORTS FROM 26,000 WHITE NONRELIEF FAMILIES
l
/ V^F
A^r,
!
'
/
j
^"CHICAGO j~->
/
^ >*ljF\
V.lceX
W^f^
-4 1 ^^L^0^'Xf^
/
( •
V?
V
(
1
\
^N
/'
/
( W
|
V ^
DENVER
\
ommCOUNCIL BLUFFS
j
•
J
I
(3^ A w
V
5
p-pxAu
<* ^V-COL^BOS/...
^ H t aJfK m A
\
T--
^.---''
/I
.-*
ATLANTA
^
-JT
AREA OF CIRCLES IS PROPORTIONAL
TO CITY POPULATION (1930)
BLACK PORTION IS PERCENT OF
FAMILIES OWNING HOMES
W
...-A
Vy
/
j
^ ^
\
\
f
\
(
N-A
n/
\
\
\
)
vy
Source: U. S. Department of Labor
This map shows the extent of home ownership in several cities of the United States in 1935-1936. In general, frequency of ownership is related inversely to city
size and the age of the settlement. As a city grows older and larger, high land values place a limitation on home ownership.
Taxes on homes in New York represent between
23 and 33 percent of the rental values. In Chicago,
Providence, and Denver, they are equivalent to
about 20 percent of the rental value and in Atlanta
and Omaha, to 15-20 percent. Taxes constitute
slightly less than 15 percent of the rental value for
most income levels in Columbus.
Although wide inter-city differences are found in
the ratio of taxes to rental values of owned homes,
within each city studied the percentage is quite uniform throughout most of the income range. There
is little foundation for a conclusion that this ratio
varies with city size generally although New York
is on the top of the list.
Expenditures for insurance comprise from 1 to 4
percent of the rental value of the owned home. As
would be expected, the amount of insurance paid
bears a definite relationship to rental values and
income levels.
Among home owners in the selected cities, the
average expense for repairs and replacements amounted
118
to between $62 and $113, representing roughly onetenth of rental value. As with other expenses of
ownership, the cost of repairs tended to rise with
income level and the proportion of owners at the
$2,000-$2,500 level repairing their homes represented from 36 to 61 percent of the total, while
from 46 to 77 percent reported expenditures of this
kind at the $5,000-$7,500 level.
Included as repairs and replacements were those
expenditures which renovated or replaced worn parts
and which, therefore, maintained rather than added
to the value of the home. Structural additions were
considered as improvements and not classified as
current expenses but as increases in assets. On the
basis of a survey covering such a short period and
especially the particular year 1935-1936, it is difficult to state categorically t h a t ' t h e repairs may be
regarded as normal. I t is probable, according to
the Bureau of Labor Statistics, that major repairs
were more frequent than usual following several
depression years in which upkeep was neglected.
Federal Home Loan Bank Review
H O M E OWNERSHIP IS NO CLASS PRIVILEGE
In addition to its analysis of housing costs, the
study of the Bureau of Labor Statistics demonstrates
the wide extent to which home ownership exists
among all classes of the population. Although ownership generally is more frequent among the families
of high and medium income, even the lower income
groups show a surprisingly large proportion of homeowning families. In the income classes ranging
from $500 to $1,500, for example, home-owning
families represent 24-30 percent of all families in
Columbus, 26-44 percent in Omaha, 27-37 percent
in Denver, and 35-49 percent in Portland, Oregon.
In most of the medium-sized and small cities included
in the study, the proportions are even higher.
As to occupational groups, ownership of the family
home is relatively more prevalent among families of
business and professional persons than among those
of wage earners and clerical persons in the lower
income levels in most cities. But as wage earners
reach the income levels of $1,750 or above, they tend
to own their homes more frequently than do the
other occupational groups.
Among families living in the cities included in this
report, home ownership was most common in Portland, Oregon and least prevalent in New York City.
At the same time, rents and rental values in Portland
were consistently below those of other cities, and New
York maintained a status through all income groups
as the most expensive locality in which to own or
rent a home. The accompanying map shows the
proportion of home-owning families to all nonrelief
families in selected cities, for all income classes.
Pension Plans
(Continued from p. 110)
interest at a specified rate. Some of the associations
even provide a graduated scale for the return of
association contributions on the basis of length of
service. For example, one institution releases 20
percent of its share of the fund if an employee has
been with the organization 5 years; 60 percent, if 10
3^ears; and after 15 years, the entire account is
available to the employee.
It is not uncommon for associations to include a
provision whereby in the case of defalcation or
shortage the employee's share of such a fund can
be used to offset the loss.
In the consideration of something as new as retirement and pension plans for savings and loan assoJanuary 1942
ciations, it is always helpful to have the personal
reactions of other executives who are already carrying out programs of this type successfully in their
own institutions.
T H E OPINION OF MANAGEMENT
The president of an institution which inaugurated
its system of " E s t a t e Accounts" in 1926 reports
that the total amount to the credit of the various
accounts now exceeds $90,000 and that, with a few
minor exceptions, no withdrawals have been made
from the accounts. He emphasizes the fact that
such a program definitely encourages the habit and
benefits of thrift, upon which the entire association's
activities are based.
The executive officer of another association which
has operated its plan for more than 10 years says,
" I n my opinion, the effect of this plan on the employees7 morale is good and tends to stabilize employment. A further advantage is that when employees
reach retirement age many of them have no means of
support, and we would not feel so free to ask them
to give up work if it meant putting them on relief
to do so. With this plan in effect, we do not hesitate
to ask anyone to retire when his years of usefulness
seem to have passed."
To illustrate the practicability of these savings
plans, the president of a third association describes
an experience which his institution had, as follows:
" T h e plan has resulted in accumulation of funds by
all of our employees, some of whom would find it
difficult to make such progress without a plan of this
character. We have tried not to be too 'ironclad'
in the application of our withdrawal regulations, but
rather to consider the purpose for which the money
is used. For instance, our janitor's wife had to have
a serious operation and in that case we permitted
him to take funds which were needed from his
account. Incidentally, here was a case where if the
plan had not been in operation there would have been
no reserve!"
And so it goes through the correspondence of each
of the 14 institutions now sponsoring retirement and
pension programs for their employees. These executives feel that concrete benefits which accrue to
association personnel in the form of a greater feeling
of future security are matched by the benefits for
the association itself in terms of added employee
loyalty, working efficiency, reduced employee turnover, elimination of the burden of aged employees,
and added public prestige and respect in the eyes of
the community.
II9
RESIDENTIAL BUILDING ACTIVITY AND SELECTED INFLUENCING FACTORS
1935-1939= 100
BY YEARS
INDEX
280
BY MONTHS
•
i
'
ADJUSTED
260
1
1
i
i
i
280
•
FOR SEASONAL VARIATION
1 1 1 1 1
RESIDENTIAL CONSTRUCTION-^
240
220
200
A^\
180
RESIDENTIAL
I 60 h
\
S^
^V
CONSTRUCTIONS
(U. S. DEPT OF L A B
OR RECORDS)
1
|
I20h
•• /
I\
JT\jkrSVGS. a LOAN LENDING \ .
lOOh
^X|
\
,
(FFRFRAI
HflMF 1 HAW RANK R O i R n l
\
y
60 [
LENLING
/
••'*
••*••• jf/
i*/0'^K
\
80 [
^ 1
V|,-^T"-f 1
/
l4o[
\
.-...J../"
'
'X....
N ON FARM \
FORECLOSURES-^
/
/ I
y(FEDERAL
40 [
NONrnrxM
runcuLusuncs
—1—h^L-J^ 1
HOME LOAN BANK BOARD)
2o[
1
1
i
i
1
1
1
1
1
1
1
1
i
i
i
i
i
i
i
i
1 1
i
,
i
i
1
BUILDING MATERIAL PRICES-^,
1
......w.....^.....**'
I......JJ/ .l>"r_
i
-REt
-^v
11
_J
, ,
L_
200
_j
i
i
ADJUSTED
i_
i
i
_|
L_
i
i
i
FOR SEASONAL
1 1
1 1
-^ir
i
i
VARIATION
RIAL PRODUCTION*
-INL >USTI
1 ...1./"
t.,•.•••'* ^
,,
r ^ ^
__ -^^ >INCCWE i am ENTS
***» .~£
z~~
6 0 ^
1930
'31
'32
'33
'34
'35
'36
INDEX COST OF STANDARD SIX-ROOM HOUSE
'37
'38
'39 '40
41
-^U
i
i
1 1
1940
WHOLESALE COMMODITY PRICES
1
1 _|
L_
\
i
i
1941
i
, , , !
_|
L_
, |- " V
1942
MANUFACTURING PAYROLLS
135
120
Federal Home Loan Bank Review
« « «
MONTHLY
S U R V E Y
» » »
HIGHLIGHTS
/. The remarkable stability of general business, financial, and economic conditions in the face of open warfare against the Axis nations
highlights all recent developments.
A. Financial markets reflected confidence in the final outcome with only slight changes in stock and bond prices on an increased
volume of transactions.
B. Retail sales, although declining during the week of December 7-13, rose to new high levels for the month as a whole,- industrial
production was spurred to a 7-day week, capacity schedule/ wholesale prices, with the exception of farm products and
foods, showed only fractional increases.
II. Building activity, as measured by the seasonally adjusted index of residential construction in all urban areas, receded to the level of
June 1940 after 5 successive months of decline.
A. The October-to-November drop of 16 percent in the total number of permits issued was considerably in excess of the 11-percent
decline usually experienced.
B. Preliminary estimates for 1941 as a whole, however, indicate a 14-percent gain over the total dwelling units provided in 1940.
III. Mortgage-financing activity during November reflected normal seasonal characteristics.
A. The total dollar volume of nonfarm mortgages of $20,OOO or less recorded during November declined 16 percent from the record
month of October.
B. The 10-month total of new loans made by all savings and loan associations in the past year is almost equal to the aggregate
loans made during the full 12-month period of 1940.
IV. Building costs—as evidenced by the index for the standard 6-room house—registered their smallest gain in recent months.
prices for building materials also showed only fractional gains for November.
Wholesale
V. Following the sporadic rise in the index of foreclosures for October, activity in November followed the usual downward trend, and the
index for that month is the lowest recorded during the past 12 years.
SUMMARY
Problems created by our sudden shift in December
from a defense to a war economy, which are discussed in the lead article of this issue of the R E V I E W ,
will forcefully alter the courses of many thrift and
home-financing indicators which have been followed
from month to month on these pages. Whither the
savings and loan as well as other related industries
will now go, lashed as they are by the dynamic
forces of war, is subject to almost weekly reappraisal.
However, the earlier defense program and its effects
upon many phases of our economy has given us
small-scale prevues of the difficulties and hardships
ahead, which to a great extent will be magnified
rather than changed in their essential natures.
Reviewing developments which have occurred in
rapid succession since the defense program was
launched in late summer and early autumn of 1940,
one finds that in many respects the extraordinary
factors brought into play merely served to supplement and aggravate situations which are normal to a
recovery period such as we were experiencing at that
time. Residential construction activity and the
January 1942
inter-relationship with building costs provide an
excellent example of this phenomenon.
Both construction volume and prices were on the
increase in late 1940 and early 1941 largely as the
result of increased income at consumer levels which
caused a natural demand for newer and better living
accommodations. However, homes were built in
larger quantities and costs rose even more rapidly
because the abnormal demands for housing defense
workers and armed forces were superimposed upon
this upswing of the regular business cycle.
[1935-1939=100]
Type of index
Residential construction l
Foreclosures (nonfarm) i
Rental index (NICB)
B uilding material prices l
Savings and loan lending
Industrial production >
Manufacturing employment l .
Manufacturing pay rolls l
Income payments *
__.
Nov.
1941
Oct.
1941
166.6
31.9
109.7
120.0
P169.0
*167.0
P135.6
»189.0
*>142. 9
I'176.9
34.2
109.3
119.8
'176.5
' 163.0
'133.5
|'182.2
140.7
P e r c e n t ] Nov. Percent
change
1940 change
-5.8
-6.7
+0.4
+0.2
-4.2
+2.5
+1.6
+3.7
+1.6
185.6
44.2
107.2
110.4
153.9
134.0
115.5
133.0
116.6
-10.2
-27.8
+2.3
+8.7
+9.8
+24.6
+17.4
+42.1
+22.6
r
» preliminary.
revised.
Adjusted for normal seasonal variation.
1
I2I
Gradually, as the months of the past year slipped
away, pinches in necessary building materials became evident and the rising trend of construction
activity was checked despite constantly increasing
demands for homes. Costs, however, continued to
increase up to the close of the year. Priority regulations and allocation schedules were adopted to
assure defense housing a first lien on available
materials, and thus shortages of critical materials
must be held responsible in large part for the slowdown of residential construction during the latter
part of 1941.
Construction lending activity of savings and loan
associations tended to follow the fluctuations shown
in building volume throughout the defense emergency period, and can be expected to be further curtailed during the course of the current victory
program. The fact that savings and loan associations have tended to finance purchases of homes in
ever-greater proportions throughout 1941 indicates
that transactions in existing properties are taking
place in increasing volume. A similar program of
increased repairs and alterations in 1942 might well
help to cushion the shock of drastically reduced construction-loan business.
BUSINESS CONDITIONS-Stability in
the face of war
Economic and financial repercussions of the entry
of the United States into war were remarkably
slight. The stock market remained calm although
stock prices moved downward on an increased sales
volume, and no large-scale intervention was necessary. Prices of Government securities declined
slightly. Department store sales dropped sharply
in the week following the outbreak of war. Notably
absent was any hysteria in regard to private savings
or Government monetary policies. The large issue
of Government securities which had been offered
during the week before the attack on Pearl Harbor
was the subject of some temporary speculation as
yields rose slightly in the days immediately following. On December 9 the Treasury intervened and.
was represented as a buyer in the market for two
days.
Industrial activity continued at a sustained volume
in November, a reversal of the decline usually experienced during the month. As a result, the index
of industrial production reached an all-time high
for the third consecutive month. During November
the index stood at 167 (1935-1939 = 100) which is
122
4 points above October and 33 above the corresponding month a year ago.
Wholesale prices fluctuated narrowly throughout
November, rising from 113.8 of their 1935-1939
base at the beginning of the month to 114.6 in the
week ending November 29. I n the second week of
December the wholesale markets experienced a
general price advance of 0.9 percent led by an increase of 2.2 percent in the prices quoted on farm
products.
Governmental authorities revised their program
of civilian production early in December in the light
of new world conditions. Passenger car output
was ordered cut 25 percent from the previous schedule for December and 50 percent for January. This
further curtailment will result in an output of only
102,424 units during January, less than one-quarter
of the production volume in the corresponding
month of 1941. In order to obtain a more efficient
distribution of material supplies, the priorities
system is gradually being replaced by a plan of
allocations as represented by the recent restrictions
upon the distribution of tires in order to conserve
existing supplies.
Income payments to individuals during October
were at an annual rate of $95,000,000,000, the highest on record. For the first ten months of 1941,
payments to individuals were 17 percent in excess
of aggregate payments in the same period of 1940.
Salaries and wages, which have risen 21 percent in
the period, accounted for much of the total increase.
During the week ended December 14 the average
yield on long-term, partially tax-exempt Government bonds increased from 1.87 to 1.98 percent,
reflecting market reaction to our entry into active
combat. The average yield during November had
been 1.85 percent, a new monthly low return on these
securities.
Excess reserves in commercial banks declined
$750,000,000 in the week ended December 20 to
$3,090,000,000—the lowest level since December of
1938.
BUILDING ACTIVITY—Adjusted index
declines for fifth consecutive month
Dropping to the lowest point since June 1940, the
seasonally adjusted index of residential construction
stood in November at 167 percent of the average
month of the 1935-1939 period, or 6 percent below
October 1941. In terms of number of units provided, total residential construction for November
Federal Home Loan Bank Review
was 16 percent under the October total. This is
considerably in excess of the 11-percent decline
usually experienced during November, and accounts
for the drop in the seasonally adjusted index.
Building permits for privately financed construction were issued for 24,424 dwelling units in November as compared wTith nearly 30,000 units in October,
according to data reported by the United States
Department of Labor. The reduction from October
was primarily in the 1- and 2-family category.
Private construction of multifamily units increased
more than 2,108 units.
During the first 11 months of 1941 residential
construction in all urban areas of the United States
totaled nearly 415,000 dwelling units or an increase
of nearly 13 percent over the comparable 1940
period. All types of structures shared in this rise.
Privately financed homes of the 1- and 2-family
type made up more than 72 percent of the total
dwellings built during the year to date. (TABLES
1 and 2.)
NEW RESIDENTIAL CONSTRUCTION IN ALL URBAN AREAS
PERMITS ISSUED FOR PUBLICLY AND PRIVATELY FINANCED DWELLING UNITS
THOUSANDS OF
DWE LUNG U VITS
35
/
30
25
J
r~ 'N
f
A r*" \
I
1
20
15
PRIVA
and 2 F
<z
\
\
^
\
/
sJ
\
/
10
A LL
PUBLIC-,
_ i 3-
5
i
1 °C
EC
/\.JU.\
. 1 i . T i i \^PR'Wf
MAR.
JUN.
1940
SEP
DEC
MULTI-FAMILY
MAR.
JUN.
1941
y
SEP
1 1
DEC
MAR.
JUN.
1942
SEP
D •C
FORECLOSURES-A new low
I n contrast to the somewhat sporadic increase
during October, foreclosure activity in nonfarm areas
of the United States declined in November, thus
continuing the downward trend which has been
evident over a period of nearly 8 years. The index
of foreclosures, which has been adjusted for seasonal
variations, moved to a new low of 31.9—the equivalent of a drop of nearly 70 percent from the average
month of the 1935-39 base period.
In number of cases, foreclosures totaled 4,204
during November, a decline of 204 cases or nearly
5 percent from the previous month. Upward movements were noted in only 4 of the 12 Federal Home
January 1942
Loan Bank Districts: Pittsburgh, Cincinnati, Des
Moines, and Little Kock.
Compared with the corresponding month of 1940,
foreclosure cases were lower in each Bank District,
and only 6 States indicated greater activity during
the month of November than for the same month of
last year.
Foreclosure cases from January through November
were 22 percent below those for the same period of
1940, and totalled 54,044. Over half of these foreclosures took place in communities of 60,000 or more
dwellings. During the 11-month interval this group
of larger counties and cities showed foreclosures at
the rate of 4.8 for each 1,000 existing dwellings; while
the next smaller city groups registered rates of
3.4, 2.0, and on down to 1.5 for communities of
under 5,000 dwellings. [TABLE 10]
B U I L D I N G COSTS—Fractional
in November
increase
Costs involved in the construction of the standard
six-room house rose only fractionally in November.
The increase—0.4 percent—was in fact the smallest
month-to-month change for the past 6 months and
compares with an average advance of 1 percent a
month over the past year.
The index now stands 19 percent above the
average month of 1935-39. Labor costs have
revealed the greater increase and in November were
nearly 24 percent above the average month of the
base period. Dealers' prices for materials were
about 17 percent higher than this average.
Of the 28 cities reporting costs for the past quarter,
27 indicated increases, with 10 registering rises of
from $100 to $250.
Wholesale building material prices as reported by
the U. S. Department of Labor moved upward
fractionally during the month of November, carrying
the composite index (1935-39 = 100) to 120, a gain of
9 percent from November 1940. (TABLES 3, 4, and 5.)
Construction costs for the standard house
[Average month of 1935-1939=100]
Element
of cost
Material
Labor
Total—.
November
1941
October
1941
116.8
123.5
116.0
123.3
+0.7
+ 0.2
104.6
109.8
+ 11.7
+ 12.5
119.0
118.5
+ 0.4
106.4
+ 11.8
Per- Novem- Percent
ber
cent
change
1940
change
MORTGAGE LENDING-Activity shifts
toward home-purchase loans
Contrary to the tendency shown during 1939 and
1940 for home-construction loan business to increase
at a more rapid pace than purchase loans, the reversal
in emphasis which has been in progress since early
1941 reached a point in October where construction
lending dropped nearly 8 percent in volume while
purchase loans moved upward by 3 percent from the
previous month. Normally, reductions are expected from September in each of these series.
Examining the cumulative effect of retrenchments
in construction activity caused by shortages of certain essential building materials, and the consequent
increase in emphasis on more intensive use of existing
properties, we find that during the first 10 months of
1941 construction loans made by savings and loan
associations rose only 12 percent as against a corresponding 35-percent gain in financing the purchase
of existing homes. All other loan categories have
lower 1941 totals than in the preceding year.
Aggregate loans for all purposes totaled some
$1,174,000,000 during the January-October period,
as compared with $1,016,000,000 in the comparable
1940 period. The spread between total lending
activity for the two years was at its maximum in
January when loans amounted to 20 percent more
than in the same month of 1940; subsequent experience had narrowed the cumulative gain to 16 percent
by the end of October.
[TABLES 6 and 7.]
MORTGAGE RECORDINGS—Drop in
volume reflects seasonal trend
After rising to a record peak during October, nonfarm mortgage recordings of $20,000 or less fell off
sharply during November. All types of mortgage
lenders evidenced curtailed activity, with declines
ranging from 13 to 19 percent. A study of recordings
during the past three years reveals a large seasonal
decline in mortgage-financing activity from October
to November, a trend illustrated this year by a 16
percent, or $70,000,000, drop in recordings. At the
same time, however, November recordings were
$50,000,000 above the corresponding volume of 1940.
Although the study of mortgage recordings has
covered, statistically speaking, a relatively short and
particularly active period, it has shown some definite
seasonal tendencies in the activities of some types of
mortgagees. Monthly recordings by each of the
several types of lenders follow generally the same
seasonal trends as residential construction and new
mortgage lending of savings and loan associations—
rising sharply in the early spring and declining in the
late fall, although banks, as well as individuals, displayed some variations from this pattern.
During the January-November period of this year
$4,340,000,000 in nonfarm mortgages within the
$20,000 limitation were recorded throughout the
Mortgage recordings by type of mortgagee
[Amounts are shown in thousands of dollars]
Type of lender
Percent
change
from
Oct.
1941
Savings and loan associations __ __
-18.3
Insurance companies. __ - 1 8 . 5
Banks, trust companies. - 1 3 . 0
Mutual savings banks. _ - 1 3 . 8
-14. 5
Individuals
-15.0
Others
Total. .
. -15.7
PerPercent Cumulative cent
of Nov. recordings totaloi
1941
(11
amount months) recordings
30.0 $1, 377, 145
366, 499
8.6
24.4 1, 065, 580
5.2
199, 241
718, 653
17.0
612, 487
14. 8
31. 7
}8. 4
24.6
4.6
16. 6
14. 1
100.0 $4, 339, 605
100. 0
F-i
Federal Home Loan Bank Review
country, or 17 percent more than during the same
interval of 1940. Among the types of mortgage
lenders, relative gains have ranged from 12 percent
for the miscellaneous group of mortgagees to 29 percent for mutual savings banks. Mutual savings
banks, however, concentrated as they are in the
Boston and New York Federal Home Loan Bank
Districts, accounted for only about 5 percent of all
recordings in the United States as a whole during the
period. Savings and loan associations and banks and
trust companies, leading lenders in the home-financing field, evidenced smaller percentage gains than
did the total for all lenders. [TABLES 8 and 9.]
B A N K SYSTEM—New debentures
strengthen liquidity position
Advances outstanding from the Federal Home
Loan Banks increased more than 1 percent in November to aggregate $187,100,000. This is $2,773,000
greater than the corresponding volume at the end
of October and $1,600,000 larger than the outstanding balance on November 30, 1940.
At the same time, current advances reflected the
trend usually exhibited during the month, declining
$3,200,000 from the volume registered in October.
Total advances made in November approximated
$9,930,000, which is greater than the corresponding
figures in any of the past three years. Repayments
during November were slightly higher than in October and as a result there is a marked contrast in the
balance between new advances and repayments on
outstanding loans. In November, advances exceeded repayments by $2,773,000 while in October
their net excess amounted to more than $6,000,000.
Collateralized advances at the end of November
totaled $130,400,000—70 percent of total advances
outstanding. Long-term advances held at the close
of the month's operations comprised 58 percent of
total outstanding advances, a decline of 13 percent
in this ratio during the past year. The increased
proportion of short-term advances indicates a significant shift in the pattern of member borrowing.
During November there was a net decrease of one
institution in Bank System membership which
totaled 3,826 at the end of the month. Aggregate
assets of members reached $5,405,000,000.
N E W ISSUE OF
FHLB
INSURED A S S O C I A T I O N S - O f f e r a
new element of security under war conditions
At the outbreak of war, insurance of share and
deposit accounts provided by the Federal Savings
and Loan Insurance Corporation and the Federal
Deposit Insurance Corporation added a new element
of stability and security to the savings funds of the
entire Nation. Almost three-fifths of the assets of
all operating savings and loan associations were
insured when hostilities began—in all, 2,339 institutions with assets totaling more than $3,300,000,000.
Private savings invested in these associations
amounted to approximately $2,550,000,000.
At the present time, all insured savings and loan
associations have reserves and undivided profits of
$200,000,000, or 6 percent of their total resources.
Their liquidity position is favorable. Cash and
government obligations now are above the $200,000,000-mark, and real estate holdings have been reduced
to about $100,000,000. [TABLE 12.]
FEDERAL SAVINGS AND LOAN ASSOCIATIONS
At the end of November, 1,461 savings and loan
associations with approximately $2,130,000,000 in
resources were operating under Federal charter—
about two-thirds of the total assets of all insured
associations.
Progress in number and assets of Federals
[Amounts are shown in thousands of dollars]
Number
Class of
association
Nov.
30,
1941
Approximate assets
Oct.
31,
1941
Nov.
30,
1941 »
Oct. 31,
1941
$665, 025
1, 463, 236
$655, 847
1, 449, 697
DEBENTURES
On December 24 the Federal Home Loan Banks
issued a new series of consolidated debentures in the
amount of $15,000,000. The securities, Series H
K-percent debentures, are due Feburary 24, 1942.
January 1942
With funds received from this short-term security
issue, liquid assets of the banks at the end of 1941
consisted of approximately $24,300,000 in cash and
$62,800,000 in Government securities. Short-term
advances and other advanced funds to be received
within a year amounted to $118,500,000.
Debentures have now been issued by the Banks
in the amount of $224,700,000. At present, bonds
outstanding total $90,500,000. [TABLE 13.]
New__
Converted
Total
p preliminary.
640
821
1,461
640
823
1,463 $2, 128, 261 $2, 105, 544
Table 7 . — B U I L D I N G A C T I V I T Y — E s t i m a t e d number and valuation of new family dwelling units
provided in all urban areas of the United States, November 1941
[Source: U. S. Department of Labor]
[Amounts are shown in thousands of dollars]
Permit valuation
Number of family dwelling units
Monthly totals
Type of construction
Nov.
1941
Nov.
1940
Oct.
1941
Monthly totals
Jan.-Nov. totals
1941
1940
Nov.
1941
Oct.
1941
Jan.-Nov. totals
Nov.
1940
1941
1940
24, 424 29, 871 23, 471 348, 873311,515 $89, 091 $113,212 $85, 936 $1, 303, 800$1, 126, 044
Private construction
1-family dwellings
_
17, 941 24, 931 18, 490 277, 454 246, 230 69, 910 99, 650 72, 474 1, 105, 645
5,486 3,616
56, 512
2-family dwellings *_- __ __ 1,445 2,010 1,449 21, 580 18, 747 4, 068
3- and2 more-family dwell141, 643
5,038 2,930 3,532 49, 839 46, 538 15, 113 8,076 9,846
ings
3,506 * 3, 548 7,651 65, 693 56, 747 12, 147 ' 12, 951 23, 422
Public construction_ __
219, 952
944, 642
47, 043
134, 359
174, 242
Total urban construction __ 27, 930 '33,419 31, 122 414, 566 368, 262 101, 238 '126,163 109, 358 1, 523, 752 1, 300, 286
1
2
r
Includes 1- and 2-family dwellings combined with stores.
Includes multifamily dwellings combined with stores.
revised.
Table 2 . — B U I L D I N G A C T I V I T Y — E s t i m a t e d number and valuation of new family units provided
in a l l urban areas, in November 1 9 4 1 , by Federal Home Loan Bank District and by State
[Source: U. S. Department of Labor]
[Amounts are shown in thousands of dollars]
All private 1- and 2-family dwellings
All residential dwellings
Number of family
dwelling units
Federal Home Loan Bank
District and State
Permit valuation
Number of family
dwelling units
Permit valuation
Nov. 1941 Nov. 1940 Nov. 1941 Nov. 1940 Nov. 1941 Nov. 1940 Nov. 1941 Nov. 1940
UNITED STATES...
No. 1—Boston _
__.
__
Connecticut _
Maine
__
Massachusetts
New Hampshire
Rhode Island
__
Vermont._ _ _ _ __ _
No. 2—New York
New Jersey. __
New York ___
_
__
No. 3—Pittsburgh
Delaware
Pennsvlvania_
West Virginia
126
__ __
__
. _ __
27, 930
31, 122
$101, 238
$109, 358
19, 386
19, 939
$73, 978
$76, 090
1,189
2,019
5,079
8,412
1,172
1,274
5,008
5,951
487
79
453
36
118
16
749
36
791
43
383
17
2,140
271
1,980
124
492
72
3,363
121
3,234
147
1,469
78
478
71
453
36
118
16
401
36
659
43
118
17
2, 104
236
1,980
124
492
72
2,153
121
2,927
147
525
78
2,125
5,207
8,852
18, 938
1,590
1,815
6,793
8,064
906
1,219
739
4,468
3,945
4,907
3, 132
15, 806
750
840
722
1,093
3,378
3,415
3,097
4,967
1,372
1,472
5,983
5,997
1,107
881
4,936
4,083
10
1,207
155
6
875
591
48
5,370
565
31
3,848
2,118
10
950
147
6
738
137
48
4,338
550
31
3,469
583
Federal Home Loan Bank Review
Table 2 . - B U I L D I N G
ACTIVITY-Continued
[Amounts are shown in thousands of dollars]
All private 1- and 2-family dwellings
All residential dwellings
Number of family
dwelling units
Federal Home Loan Bank
District and State
Permit valuation
Number of family
dwelling units
Permit valuation
Nov. 1941 Nov. 1940 Nov. 1941 Nov. 1940 Nov. 1941 Nov. 1940 Nov. 1941 Nov. 1940
No. 4—Winston-Salem
Alabama.
District of Columbia
Florida
Georgia
Maryland
North Carolina
South Carolina
Virginia
_
No. 5—Cincinnati
3,793
4,732
$11, 858
$14, 494
2,466
2,917
$8, 320
$9, 581
315
357
930
367
249
355
151
1,069
268
1,143
1,194
341
268
635
281
602
595
1,136
3,134
768
852
918
745
3,710
506
3,666
4,061
743
950
1,682
739
2,147
308
149
541
335
245
341
147
400
268
260
845
333
268
367
157
419
582
731
2,074
742
840
896
744
1,711
506
1,293
3,133
725
950
1,003
387
1,584
1,928
1,566
7,902
6,318
1,643
1,478
6,927
6,055
457
5,109
752
160
1,226
257
195
966
317
399
5, 793
735
449
4,854
752
Kentucky._ __
Ohio
Tennessee
178
1, 479
271
199
1,050
317
445
6,714
743
No. 6—Indianapolis
1,796
2,030
7,456
8,457
1,492
1,722
6,315
7,403
883
913
430
1,600
3,368
4,088
1,653
6,804
583
909
430
1,292
2,241
4,074
1,653
5,750
2,078
1,259
9,838
6,588
1,272
1,249
6,572
6,570
Illinois
Wisconsin
1,693
385
857
402
8,188
1,650
4,924
1,664
901
371
857
392
4,948
1,624
4,924
1,646
No. 8—Des Moines
1,081
1,113
4,390
4,072
1,043
1,018
4,326
3,834
__
275
416
309
30
51
335
375
296
67
40
1,165
1,841
1,124
93
167
1,248
1,505
997
207
115
272
412
281
30
48
335
371
252
20
40
1,153
1,828
1,092
93
160
1,248
1,493
908
70
115
. . . __
2,417
4,064
6,782
11, 135
2,199
1,967
6,237
5,218
155
273
241
118
1,630
167
259
1,134
96
2,408
383
839
631
322
4,607
445
824
2,897
236
6,733
155
273
137
118
1,516
135
259
178
92
1,303
383
839
221
322
4,472
395
824
245
230
3,524
960
825
2,870
2,509
860
797
2,608
2,417
269
181
165
345
277
149
112
287
822
444
559
1,045
799
414
396
900
182
175
165
338
277
142
91
287
585
432
559
1, 032
799
406
312
900
1,598
1,685
5,657
5,273
852
864
3,021
2,862
43
43
183
99
1, 172
58
91
89
200
184
1,081
40
121
138
622
332
4,210
234
247
212
689
536
3,439
150
43
39
157
93
467
53
87
70
175
161
331
40
121
132
566
322
1,661
219
240
182
612
516
1, 162
150
7,593
5,150
24, 571
17, 165
3,690
3,957
12, 915
14, 052
78
7,425
90
58
5,058
34
272
24, 035
264
176
16, 837
152
70
3,555
65
53
3,874
30
256
12, 426
233
163
13, 740
149
Indiana
Michigan
_. _ __
No. 7—Chicago
Iowa
Minnesota
Missouri
North Dakota. „
South Dakota
No. 9—Little Rock
Arkansas
__
Louisiana
Mississippi
New Mexico
Texas
_
_
No. 10—Topeka
__ .
Colorado..
Kansas
Nebraska
Oklahoma
No. 11—Portland
Idaho.
Montana._
_
Oregon.. .
Utah..
Washington.
Wyoming
_ __ __
_.
No. 12—Los Angeles
Arizona
California
Nevada
January 1942
__
127
Table 3 . — B U I L D I N G COSTS—Cost of building the same standard house in representative cities1
NOTE.—These figures are subject to correction
[Source: Federal Home Loan Bank Board]
Cubic foot cost
Federal Home Loan Bank
District and city
No. 1—Boston:
Hartford, Conn
New Haven, Conn_
Portland, Me
Boston, Mass
Manchester, N. H
Providence, R. I
Rutland, Vt
Total cost
1941
1940
Dec.
Dec.
Dec.
Sept.
June
$0. 258
.255
.220
.278
.240
.259
.227
$7, 204
7,171
5,493
7,353
5,969
6,701
6,361
$7, 166
7,131
5,424
7,122
5,884
6,554
6,316
$0. 300
.299
.229
___
.306
.249
.279
.265
1941
No. 4—Winston Salem:
Birmingham, Ala
Washington, D. C
Tampa, Fla
W. 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
.292
.267
.260
.283
.258
.262
.262
.247
.256
.211
.252
.247
.257
.254
.267
.251
.280
.229
.236
.243
.222
.223
. 187
.227
.226
.238
7,011
6,396
6,229
6,781
6, 194
6,280
6,287
5,939
6, 155
5,072
6,052
5,940
6,157
No. 7—Chicago:
Chicago, 111
Peoria, 111
Springfield, 111 __
Milwaukee, Wise
Oshkosh, Wisc__
.328
.321
.328
.276
.273
.288
.298
.309
.245
.242
7,863
7,707
7,881
6,632
6,544
No. 10—Topeka:
Denver, Col. __
Wichita, Kan
Omaha, Neb
.284
.266
.262
.264
.238
.249
6,826
6,376
6,288
1940
1939
1938
1937
Mar.
Dec.
Dec.
Dec.
Dec.
$6, 615
6,650
5,424
6,986
5,882
6, 355
5,917
$6, 424
6, 288
5,369
6,760
5, 801
6,281
5,880
$6, 201
6, 118
5,274
6,667
5,749
6,226
5,443
$5, 903
5,793
5,242
6,428
5,381
6,007
5,272
$5, 877
5,617
5,259
6,384
5,554
5,893
5,472
$6, 076
5,832
5,708
6, 601
5,601
6,000
5, 846
6,927
6,170
6, 186
6, 682
6,138
6,180
6,264
5,779
6,088
5,013
2
5, 890
5,944
6,034
6,494
6,173
6,152
6,373
2
5, 939
6, 157
6,006
5,708
5,502
5, 168
2
5, 734
5,600
5,936
6, 392
6, 236
6, 155
6, 550
2
5, 801
6,088
6,058
5,752
5, 478
4,716
5,540
5, 570
6,021
6,087
6,416
6,027
6,731
2
5, 492
5,659
5,832
5,320
2
5, 360
4,493
5,453
5,420
5,714
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
7,783
7,686
7,838
6,500
6,431
7,371
7,288
7,463
6, 117
6,029
7,093
7,267
7,463
5, 988
5, 975
6,900
7, 158
7,415
5,875
5,814
6,789
6,909
7,073
5,342
5,393
6,838
6,441
6,811
5,071
5,478
7, 226
6,705
6, 754
6, 126
6, 275
6,456
6,058
6,287
6, 500
5,790
6, 148
6,327
5,716
5,968
6,221
5,794
6,079
6,431
5,964
5,717
6,625
2
2
2
2
2
5,294
5,597
5,975
1
The house on which costs are reported is a detached 6-room home of 24,000 cubic feet volume. Living room, dining room, kitchen, and lavatory on first floor; three
bedrooms and bath on second floor. Exterior is wide-board siding with brick and stucco as features of design. Best quality materials and workmanship are used
throughout.
The house is not completed ready for occupancy. It includes all fundamental structural elements, an attached 1-car garage, an unfinished cellar, an unfinished attic,
a fireplace, essential heating, plumbing, and electric wiring equipment, and complete insulation. It does not include wall-paper nor other wall nor ceiling finish on interior
plastered surface, 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 8same reputable contractors and operative builders.
revised.
Table A— B U I L D I N G COSTS—Index of building costs for the standard house
[Average month of 1935-1939=100]
Nov.
1941
Oct.
1941
Sept.
1941
Aug.
1941
July
1941
June
1941
May
1941
Apr.
1941
Mar.
1941
Feb.
1941
Jan.
1941
Dec.
1940
Nov.
1940
116.8
123.5
116.0
123.3
114.4
120.7
112.6
120.0
110.7
119.3
109.2
118.6
108.8
117.0
108.7
116. 1
108.0
115.3
107.8
115.1
106.6
114.5
105.9
112.5
104.6
109.8
Total cost. 119.0
118. 5
116. 5
115. 1
113. 6
112.4
111.6
111.2
110.4
110.2
109.3
108.1
106,4
Element of cost
Material
Labor
128
Federal Home Loan Bank Review
Table 5 . — B U I L D I N G COSTS—Index of wholesale price of building materials in the United States
[1935-1939=100; converted from 1926 base]
[Source: U. S. Department of Labor]
All building m a t e rials
Period
1939: N o v e m b e r .
1940: November
December
_ _
-
1941: J a n u a r y
February
March
April .
May
June
July
August
September
October
N o v e m b e r - _ _ ..
_ __
_ __
Change:
Nov. 1941-Oct. 1941
Nov. 1941-Nov. 1940
Brick a n d
tile
Cement
Lumber
Paint and
paint materials
Plumbing
a n d heating
Structural
steel
Other
103.8
100.8
100.2
111. 5
104.4
104.2
103.5
100. 5
110.4
110.9
99.3
100.3
99.7
99.8
130.8
132.3
105.4
105.0
105.8
105.8
103.5
103.5
101. 9
102. 2
111.2
110. 9
111. 1
111.8
112. 1
112.8
115. 1
117.8
118.8
119.8
120.0
100.5
100.6
100.7
100.9
101. 1
101.8
103.7
104.7
105.3
106.3
106.3
99.7
99.7
99.7
99.9
100.4
100.9
101. 1
101. 1
101.2
101.7
102.2
131.9
130.5
130.0
130.0
130. 1
131. 0
136.2
142.0
143.8
144.2
143.3
106.6
106.5
107.5
109. 1
109.8
111.0
112.6
114.7
116.4
118.0
117. 2
105.8
108.0
108.8
109.0
109.0
109.2
109.3
114.0
114.4
115.3
115.5
103.5
103.5
103.5
103.5
103.5
103.5
103.5
103.5
103.5
103.5
103.5
102. 6
102. 6
103.0
103. 7
104. 1
104. 8
106. 4
108.0
108. 4
109. 8
111. 6
+ 0.2
+ 8.7
0.0
+ 7.0
+ 0.5
+ 2.5
-0.6
+ 9.6
-0.7
+ 11.2
+ 0.2
+ 9.2
0.0
0.0
+ 1.6
+ 9. 5
'
Table 6.—MORTGAGE
LENDING—Estimated volume of new home-mortgage loans by all savings and loan associations, by purpose and class of association
[Thousands of dollars]
Class of association
Purpose of loans
Peripd
1939
Jan.-Nov
November. _
1940
Jan.-Nov
October
November
December
_ _ __
Construc- H o m e p u r - Refinancing
tion
chase
Reconditioning
Loans for
all other
purposes
Total
loans
Federals
State
members
Nonmembers
$301, 039
$339, 629
$182, 025
$59, 463
$104, 227
$986,383
$400,337
$396, 041
$190, 005
274, 116
26, 607
311,850
30, 434
167, 024
15, 445
55, 128
4,720
95, 153
8,870
903,271
86,076
366, 284
34, 785
362, 832
34, 671
174, 155
16, 620
398, 632
426, 151
198, 148
63, 583
113,065
1, 199, 579
509, 713
483, 499
206, 367
368, 600
41,610
32, 584
30, 032
394,
40,
33,
31,
686
771
875
465
183,
16,
14,
14,
573
840
441
575
59, 335
5,756
4,869
4,248
104, 832
9,423
8,798
8,233
1, 111,026
114,400
94,567
88,553
471,
48,
38,
37,
446,
46,
40,
36,
192,
19,
15,
14,
27, 809
30, 283
41, 784
48,311
54, 781
55, 993
55, 682
55, 973
58, 052
59, 874
13,
14,
16,
16,
18,
17,
16,
15,
15,
16,
645
204
903
905
506
891
816
785
871
283
3,784
3,573
4,765
6,368
5,930
5,633
6,022
5,571
5,884
5,361
8,540
7, 787
8,460
10,361
10,761
9,916
9,534
9,411'
9, 345
8,698
"1,277,627
80,440
82,330
105, 162
120,631
130,953
133,640
132,972
129, 727
129, 934
' 127, 938
» 103, 900
998
307
896
715
770
224
143
729
258
869
528
109
1941
Jan .-Nov
January
February
March
April
May
June
July
August
September
October
November
26,
26,
33,
38,
40,
44,
44,
42,
40,
37,
662
483
250
686
975
207
918
987
782
722
p preliminary.
January 1942
p 543, 028
34, 360
35, 645
45, 365
51,371
55, 396
57, 542
56, 564
57, 592
54, 786
'52,507
» 41, 900
p 539, 454 p 195, 145
33, 947
12, 133
35, 301
11,384
43, 947
15, 850
50, 956
18, 304
54, 495
21, 062
54, 857
21,241
55, 676
20, 732
17, 593
54, 542
54, 303
20, 845
r
' 54, 930
20, 501
*> 46, 500 p 15, 500
»revised.
129
Table 7 . — M O R T G A G E LENDING—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
Federal Home Loan Bank
District and class of
association
Percent
change,
September
1941 to
October September October
1941
1941
1941
United States:
Total
$127,
Federal
52,
State member. 54,
Nonmember . _ 20,
Boston:
Total
Federal
State member.
Nonmember „ .
14, 615
4,728
7,284
2,603
15, 019
5,415
7,734
1,870
-2.7
-12.7
-5.8
+ 39.2
New York:
Total
Federal
State member.
Nonmember..
13, 729
3,801
4,648
5,280
14, 288
4,866
4,329
5,093
Pittsburgh:
Total
Federal
State member.
Nonmember. _
11, 285
3,860
3,036
4,389
Winston-Salem: Total
Federal
State member.
Nonmember. „
Cincinnati:
938 $129, 934
54, 786
507
54, 303
930
20, 845
501
New
loans,
October
1940
- 1 . 5 $114, 400
48, 307
-4.2
46, 224
+ 1.2
19, 869
-1.7
Percent
change,
October
1940 to
October
1941
Cumulative new loans
(10 months)
1941
1940
Percent
change
+ 11.8 $1, 173, 727 $1,016,459
+ 8.7
501, 128
433, 102
+ 18.8
406, 627
492, 954
+ 3.2
176, 730
179, 645
+ 15.5
+ 15.7
+ 21.2
+ 1.6
11,513
4,175
5,546
1,792
+ 26. 9
+13. 2
+ 31. 3
+ 45.3
124, 345
42, 922
63, 110
18, 313
95,
32,
46,
15,
+
+
+
+
-3.9
-21.9
+ 7.4
+ 3.7
13, 478
3,381
3,412
6,685
+ 1.9
+ 12.4
+ 36.2
-21.0
115,541
34, 166
35, 905
45, 470
96, 833
28, 212
26, 802
41, 819
+ 19.3
+ 21. 1
+ 34.0
+ 8.7
10, 925
3, 999
2,351
4,575
+ 3.3
-3.5
+ 29. 1
-4. 1
8,484
3,543
2,221
2,720
+ 33.0
+ 8.9
+ 36. 7
+ 61.4
827
908
184
735
78, 905
30,650
20, 021
28, 234
+
+
+
+
17, 247
8,463
7,204
1,580
17, 788
8,525
7,402
1,861
-3.0
-0.7
-2.7
-15.1
15, 574
7,930
6,249
1,395
+ 10.7
+ 6.7
+ 15.3
+13. 3
160, 545
78, 262
68, 035
14, 248
146, 713
71, 920
57, 217
17, 576
+ 9.4
+ 8.8
+ 18.9
-18.9
Total. „
Federal
State member.
Nonmember. .
21, 277
8,045
10, 804
2,428
21, 702
7,996
10, 550
3, 156
-2.0
+ 0.6
+ 2.4
-23. 1
19, 705
7,230
9,553
2,922
+ 8.0
200, 098
+ 11.3
74, 634
+ 13. 1
99, 787
-16.9 •
25,677
170, 369
62, 968
81, 935
25, 466
+ 17.4
+ 18.5
+ 21.8
+ 0.8
Indianapolis:
Total
Federal
State member.
Nonmember. _
6,535
3,111
3,155
269
6,693
3,383
3,041
269
-2.4
-8.0
+ 3.7
0.0
6, 503
3,525
2,675
303
+ 0.5
-11.7
+ 17.9
-11.2
60, 095
30, 394
27, 391
2,310
Chicago:
Total
Federal
State member.
Nonmember. _
12, 555
4,977
6,219
1,359
12, 160
4,720
5,981
1,459
+ 3.2
+ 5.4
+ 4.0
-6.9
11,051
4,374
5,258
1,419
+ 13.6
+ 13.8
+ 18.3
-4.2
117, 140
45, 444
56, 139
15, 557
103, 347
41,015
46, 647
15, 685
+ 13.3
+ 10.8
+ 20.3
-0.8
Des Moines:
Total
Federal
State member.
Nonmember. _
6,558
3, 252
2,229
1,077
7,266
3,459
2,570
1,237
-9.7
-6.0
-13.5
-12.7
6,377
3,041
2,202
1,134
+ 2.8
+ 6.9
+ 1.2
-5.0
64, 285
32, 043
21, 330
10, 912
62, 170
30, 248
19, 126
12, 796
+ 3.4
+ 5.9
+ 11.5
-14.7
Little Rock:
Total
Federal
State member.
Nonmember. _
6,260
2,682
3,471
107
6,329
2,576
3,614
139
-1. 1
+ 4.1
-4.0
-23.0
5,209
2,036
3,056
117
+ 20. 2
+ 31.7
+13. 6
-8.5
57, 508
24, 277
31, 874
1,357
51, 128
20, 372
28, 866
1,890
+ 12.5
+ 19.2
+ 10.4
-28.2
Topeka:
Total
Federal
State member.
Nonmember._
4,822
2,671
1,098
1,053
5,131
2,837
1,351
943
-6.0
-5.9
-18.7
+ 11.7
4,565
2,437
1,149
979
+ 5.6
+ 9.6
-4.4
+ 7.6
46, 990
25, 949
11, 303
9,738
44, 187
23, 184
10, 219
10, 784
+ 6.3
+ 11.9
+ 10.6
-9.7
Portland:
Total
Federal
State member.
Nonmember. _
4,191
2,592
1,315
284
4,021
2,518
1,335
168
+ 4.2
+ 2.9
-1.5
+ 69.0
3,523
2,261
1, 113
149
+19. 0
+ 14.6
+ 18. 1
+ 90.6
42, 130
27, 303
13, 314
1,513
35, 284
21, 947
11, 844
1,493
+ 19.4
+ 24.4
+ 12.4
+ 1.3
Los Angeles:
Total
Federal
State member.
Nonmember. _
8,864
4,325
4,467
72
8,612
4,492
4,045
75
+ 2.9
-3.7
+ 10.4
-4.0
8,418
4,374
3,790
254
+ 5.3
-1. 1
+ 17.9
-71.7
91, 223
49, 826
40, 582
815
79, 022
43, 386
33, 447
2, 189
+ 15.4
+ 14.8
+ 21.3
-62.8
130
93,
35,
24,
33,
147
933
461
753
30.7
30.3
35.8
16.3
18.9
17.2
20.8
19.5
53, 354 . + 1 2 . 6
26, 267 * + 1 5 . 7
+ 13.9
24, 042
-24. 1
3,045
fee/era/ Home Loan Bank Review
Table 8 . — M O R T G A G E RECORDINGS—Summary of estimated nonfarm mortgage recordings,1
$20,000 and under, during November 1941
(Amoun t s
F e d e r a l Home L o a n
Bank
District
and' S t a t e
S a v i n g s & Loan
assoc lations
Number
UNITED STATES
No.
-
New York
No. 4--Winston-Salem—
Virginia
Indiana
North Dakota
No. 9 — L i t t l e Rock
Kansas
Il--Portlaftd
Utah
Wash ington
No.
;
I2—Los Angeles
!
1
ire
in
t h o u s an d s
Amount
Number
Amount
Number
of
Amount Number
Amount
dollars)
Indiv iduals
Ott er
mortg ages
Amount Number
per
capita
To t a l
Amount
Number
Amount
4,769 $19,653 31,504 $64,024 I6,03S $55,810 126,475 $377,683 1
6,5l9i $32,527 27,225 $92,316
$4.09
3,732
12,477
269
1,558
1,033
4,162
2,613
10,117
2,593
6,310
589
2,075
10,829
394
158
2,768
143
182
87
1,584
415
9,132
389
717
240
189
'5
51
3
9
2
1,052
80
345
14
57
10
411
106
398
29
71
18
1,938
312
1,471
101
278
62
563
145
1,443
204
133
125
2369
327
5,605
832
473
511
596
116
1,588
79
165
49
1,415
162
4,002
221
374
136
366
29
128
6
57
3
1,289
83
423
34
225
21
2,519
569
6,376
464
617
284
9,647
1,379
20,978
1,591
2,124
...980_ j
6.35
2,20
5.08
3.95
3.17
3.97
4.96
2.19
36,699 1
2,596
9,593
508
2,939
2,288
9,656
1,463
6,970
3,559
8,987
1,840
7,222
12,254
1,100
1,496
4,117
5,476
273
235
1,515
1,424
1,342
946
5,957
3,699
84
1,379
345
6,625
1,417
2,142
3,737
5,250
1,012
828
3,743
3,479
5,228
7,026
45,367
19,414
25,953 |
3,118
8,021
401
1,850
2,558
8,525
258
963
2,047
4,779
1,150
'4,619
9,532
28,757
21
2,728
369
67
7,240
714
26
264
l_N_
139
1,236
475
54
1,859
645
229
6,751
1,545
16
236
6
67
888
8
59
1,598
390
126
3,791
862
14
1,007
129
37
4,267
315
190
7,692
1,650
24,173
5,671
15,371
1,023
4,718
2,421
7,199
70
268
4,431
8,437
2,029
5,821
15,645
41,814
194
411
598
755
1,426
1,341
226
720
352
2,213
1,858
1,671
3,884
3,157
498
1,738
153
100
324
109
53
146
42
96
642
649
1,407
580
277
581
230
352
231
96
235
649
288
317
204
401
579
661
815
1,480
1,034
1,038
476
1,116
496
385
711
813
462
764
171
629
723
1,163
1,527
1,182
1,238
932
376
1,296
175
150
379
345
172
309
89
410
401
718
1,310
735
587
809
280
981
1,249
1,142
2,247
2,671
2,471
2,877
732
2,256
2,697
5,404
6,917
5,648
7,288
6,517
1,860
5,483
6,833
21,010
658
3,293
3,183
10,448
1,030
5,595
2,549
17,981
480
126
372
160
578
2,053
662|
534
2,053
596
1,359
6,795
2,294
2,786
6,026
740
3,450
3,156
1,996
790
3,967
2,059
297
443
1,225
2,225
1,126
2,030
3,557
10,534
404
2,109
2,712
845
8,055
2,479
296
108
1,632
477
2,886
6,745
569
777
941
1,028
87
53
1,665
2,308
2,444
201
127
3,091
237
759
137
73
1,885
665 1
3.47
2.75
3.06
3,919 1
2.07
11.12
5.82
3.79
5.23
4.15
2.26
3.73
70
268
140
634
2,274
4,298
1,627
5,440
1^715
45,123 1
140
634
232
1,687
355
279
3,394
625
89
745
793
334
2,762
2,344
2,011
10,592
2,112
5,099
33,619
6,405
9,123
10
21
1,312
2,828
1,002
3,732
9,006
25,180
3,342
5,781
10
21
449
863
772
2,056
326
676
932
2,800
4,204
4,802
10,259
14,921
1,769
6,652
8
14
2,058
4,867
1,671
7,212
9,467
31,388
1,068
701
4,418
2,234
8
14
1,175
883
2,923
1,944
1,471
200
6,572
640
6,722
2,745
23,600
7,788
2,842
2,044
5,176
29
79 • 2,252
3,451
1,466
4,494
9,246
22,787 ;
540
467
872
59
106
1,210
1,069
2,639
83
175
385
696
993
73
105
497
2,038
4,513
3.02
1,141
1,554
124
135
220
196
1,037
9
4
597
218
185
25
25
544
998
1,110
77
113
624
3,252
19
2
2,547
4,115
253
293
6,219
10,999
504
552
3.73
4.37
1.78
1.82
7,659
503
2,406
271
175
4,304
914
62
130
68
5
649
4,170
337
606
310
35
2,882
802
150
66
121
114
351
2,507
325
239
287
428
1,228
2,399
239
392
233
95
1,440
4,036
280
690
318
175
2,573
1,665
82
394
81
8
1,100
4,794
167
1,030
180
27
3,390
8,871
770
1,741
640
295
5,425
23,166
1,612
4,971
1,366
840
14,377
2.19
3 91
2.11
3.17
4.14
2,070
4,590
228
1,066
854
2,086
1,505
2,305
822
2,442
5,479 1 12,489
315
536
505
714
804
1,054
1,070
.1,662
30
39
79
80
139
155
392
380
141
365
63
285
345
829
219
693
615
214
214
462
1,083
243
257
722
273
170
109
270
1,474
3,650
291
1,119
1,317
3,628
1,403
2,096
835
2,996
67
105
351
154
737
60
148
258
890
470
1,735
{49
25
17
78
39
129
3
170
142
495
106
420
70
202
300
698
133
631
132
64
25
215
47
457
27
2,609
7,677
514
3,413
5,800
23,154
120
2,462
325
7,280
11
7
505
2
123
14
3,396 5,650
27
31
438
22,618
98
2081
No.
Number
40,423 $113,353
I—Boston
No. 2—New York
Amount
shown
Mut l a l
Bank s a n d
t r u s t c ompanies s a v i n g s banks
Insu ranee
comp a n i e s
27 1
1
94 1
103 |
328
134
445 1
15
39 !
72
241
334
595
36
29
79
-
-
-
-
178
194
275
567
1,083
;
1,342
167
j
'
587
1,374
1,324
970
1,811
3,248
2,784
2,151
4,306
5,498
I4>076
167 1
365
68
361
800
l,39i
124
680
1,756
2,505
81
196
805
1,004
3,315
1,944
6,464
544
877 1
503
213
849
ii
32
167
555
-
-
5,671
11,630
1,339
4,963
15,933
50^837
-
300
5,304
67
616
41
10,877 1,289
9
137 1
129
4,805
29
591
15,210
132
1,522
48,976
339
i
!
3.55
5.97
4.57
1
'
4.23
3.68
3.56
3.78
4.31
2.37
2.72
1
3.14
3.14
3.01
4.54
4.96
5.14
1
3.57
4.52
9.69
4.54
^•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 Title Association.
January 1942
I3I
Table
9—MORTGAGE
R E C O R D I N G S — E s t i m a t e d volume of nonfarm mortgages recorded, by
type of mortgagee
[Amounts are shown in thousands 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
Number:
1940: N o v e m b e r . .
December. _
39, 180 3 3 . 5
37, 984 3 2 . 8
1941: J a n u a r y
34, 459
F e b r u a r y . . . 34, 909
42, 496
March
April
48, 266
May
__
52, 802
June
50, 393
51, 882
July
50, 057
August
49, 262
September..
49, 574
October
N o v e m b e r . _ 40, 423
Amount:
1940: N o v e m b e r . . $102, 267
D e c e m b e r . _ 98, 765
1941: J a n u a r y
February
March
April
May
June
July
August
September _
October
November. _
Table
Percent
89, 996
91, 182
113,574
129, 348
143, 770
139, 647
142, 695
139, 156
135,754
138,670
113,353
31.4
32.6
34.2
34. 6
35. 1
36.0
34.4
34.6
33.7
32.6
32.0
Total
Percent
Percent
Percent
Total
Total
Percent
Total
Percent
5,816
5,736
5.0
4.9
25, 988 2 2 . 3
25, 837 2 2 . 3
4,024
3,847
3.4
3.3
27, 507 2 3 . 6
27, 823 2 4 . 0
14, 239 12.2
14, 680 12.7
5,523
4,753
5,651
6,583
7, 190
7,655
7,602
7, 298
7,433
8,271
6,519
5.0
4.4
4.5
4.7
4.8
5.2
5.0
5.0
5. 1
5.4
5. 1
24, 204
23,711
26, 820
30, 065
32, 148
32,769
32, 343
30, 731
31,001
32, 386
27, 225
22. 1
22. 1
21.6
21. 6
21.4
22. 1
21.4
21.2
21.2
21. 3
21.5
3,392
2,985
3,571
4,512
5,258
5,437
5,469
4,990
5,197
5, 633
4,769
3. 1
2.8
2.9
3.2
3.5
3.7
3.6
3.5
3.6
3.7
3.8 1
28, 494
27, 483
30, 990
33, 794
35, 175
34, 613
35, 634
34, 161
34, 982
37, 167
31, 504
13, 617
13, 303
14, 666
16, 305
17, 769
16, 970
18, 180
17, 510
18, 295
19, 125
16, 035
3 1 . 2 $27, 900
3 0 . 2 28, 666
29.3
30.7
32.6
32.5
33.0
32.4
32.2
32.5
31.9
31.0
30.0
Total
27, 691
23, 716
27, 842
32, 313
35, 635
37, 372
37, 262
35,995
36,250
39,896
32, 527
8 . 5 $82, 971 2 5 . 4 $15, 122
8 . 8 83, 426 2 5 . 5 14, 918
9 . 0 78, 977
8.0 74, 526
8.0 86, 178
8. 1 98, 076
8.2 107, 151
8.7 107, 827
8.4 108,555
8.4 105, 153
8 . 5 100, 712
8.9 106, 109
8.6 92, 316
1
25.7
25. 1
24.7
24. 6
24. 6
25. 1
24.5
24.6
23.7
23.7
24.4
70.-FORECLOSURES—Estimated
12, 931
11, 662
14,016
16, 888
19, 705
20, 503
21, 080
19,213
20, 802
22, 788
19, 653
Table
nonfarm real estate foreclosures, by size of county
26.0
25.7
25.0
24.2
23.4
23.4
23. 6
23.6
23.9
24. 4
24.9
12.4
12.4
11.8
11.7
11.8
11.5
12.0
12. 1
12.5
12.6
12. 7
Combined
total
116, 754 100.0
115, 907 100.0
109, 689
107, 144
124, 194
139, 525
150, 342
147, 837
151, 110
144, 747
146, 170
152, 156
126, 475
Period
Less
than
5,000
4.2
3.9
4.0
4. 2
4.5
4.8
4.8
4.5
4.9
5. 1
5.2
53, 891
52, 442
59, 646
65, 708
69, 836
67, 380
71, 456
69, 002
70, 377
74, 891
64, 024
17.5
17.7
17. 1
16. 5
16.0
15. 6
16. 1
16. 1
16.6
16.7
17.0
44, 154
43, 335
47, 624
55, 972
59, 864
57, 487
61, 991
59, 580
61, 034
65, 636
55, 810
11.—HOLC—Property
14.3
14.6
13. 6
14. 1
13. 7
13.4
14.0
13.9
14.4
14.6
14.8
307, 640
296, 863
348, 880
398, 305
435, 961
430,216
443, 039
428, 099
424, 929
447, 990
377, 683
69, 671 7,050 10, 337 14, 69137, 593
832 1,343 3,054
603
5, 832j
819l 1, 103 3,082
635
5, 639
1941: Jan.-Nov___
January
February
March
April
May
June
July
August
September. _
October
November. _
54, 044! 5,944
607
5, 474
526
4, 950
621
5, 650
587
5, 445
630
5, 375
630
5,047
437
4, 834
399
4? 251
515
4, 374
544
4, 408|
4481
4, 204
,341
800
789
870
853
837
727
741
668|
654
697|
705
11, 633 28, 126
1, 180| 2,887
1,009 2,626
1, 191 2,968
1, 119! 2,886
1,236! 2,672
1, 149 2,541
959 2,697
9481 2,236
975' 2,230
945 2,222
890 2, 161
operations of the
Number
of properties
on h a n d a t
end of
month
Number
of p r o p erties
acquired l
Number
of p r o p erties
sold
1940: November
December
1,728
1,580
3,253
2,706
52, 878
51, 722
1941: J a n u a r y
February
March
. _ ...
April.
May
June
July
August
September..
October
November
__
1,638
1,340
1,327
1,226
1,080
1,270
803
665
681
642
576
2,425
2,223
2,369
2,464
2,458
2,296
1,788
1,793
1,790
1,721
1,446
50, 865
49, 940
48, 856
47, 588
46, 170
44, 922
43, 933
42, 807
41,698
40, 614
39, 743
Period
1
132
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100. 0
Home Owners* Loan Corporation
5,000- 20,000- 60,000
19,999 59,999 and
over
1940: J a n . - N o v . . .
November. .
December. _
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
4 . 6 $51, 504 15.7 $47, 621 14.6 $327, 385 100.0
4 . 6 51, 964 15.9 48, 885 15.0 326, 624 100.0
County size (dwellings)
U.S.
total
Percent
Includes reacquisitions of properties previously sold.
Federal Home Loan Bank Review
Table 7 2 . — I N S U R E D A S S O C I A T I O N S — P r o g r e s s of institutions insured by the Federal Savings
and Loan Insurance Corporation
[Amounts are shown in thousands of dollars]
Operations
NumPeriod and class ber of
associof association
ations
Total
assets
Net first
mortgages
held
Private
repurchasable
capital
Government
investment
Federal
Home
Loan
Bank
advances
Number of
investors
Newprivate
investments
Private
repurchases
New
mortgage
loans
ALL I N S U R E D
2, 170 $ 2 , 3 3 9 , 4 1 1 $1,769, 112 $1, 657, 859 $259, 943 $127, 062
1939: June
December. 2, 195 2, 506, 944 1, 943, 852 ! 1,811,181 ' 250, 725 142, 729
2, 236, 000 $40, 700 $15, 800 $55, 848
2, 386, 000 48, 400 17, 445 49, 516
2, 832, 083
2, 867, 817
2, 931, 781
2, 291, 477
2, 317, 292
2, 342, 804
2, 114,831
2, 143, 360
2, 202, 135
220, 629
220, 689
220, 789
150, 700
154, 802
171, 347
2, 695, 800
2, 706, 300
2, 772, 400
2,282
2,289
2,292
2,297
2,302
2,310
2,313
2,319
2,326
2,330
2,
2,
2,
3,
3,
3,
3,
3,
3,
3,
247
330
565
528
396
251
228
814
299
689
2, 359, 057
2, 384, 160
2, 416, 680
2, 457, 438
2, 501, 582
2, 554, 274
2,595,114
2, 636, 536
2, 672, 985
2, 711, 854
2,
2,
2,
2,
2,
2,
2,
2,
2,
2,
216,
206,
206,
206,
206,
206,
203,
195,
195,
195,
485
015
094
078
304
301
512
572
584
787
141, 450
129, 437
119,461
115, 372
119,242
114,331
142, 870
147, 044
153, 897
159, 298
2, 802, 700 127, 490
2, 869, 500 65, 384
2, 896, 100 64, 633
2, 924, 000 65, 947
2, 943, 300 57, 755
2, 974, 500 61, 448
2, 998, 100 103, 886
3,019,600
62, 374
3, 037, 800 61, 495
3, 065, 800 67, 132
1,383
1,397
1, 441, 058
1, 574, 314
1,135,511
1, 268, 872
990, 248
1, 108, 481
217, 026
208, 777
88, 298
105, 870
1, 299, 100
1, 412, 200
1940: O c t o b e r . . . 1,433
November 1,435
December. 1,438
1, 804, 397
1, 829, 939
1, 872, 691
1, 514, 872
1, 532, 745
1, 545, 838
1, 329, 364
1, 349, 761
1, 387, 839
181, 371
181, 381
181, 431
110, 583
114,070
127, 255
1941:January
February
March
1,
1,
1,
1,
1,
2,
2,
2,
2,
2,
744
266
054
949
162
045
886
184
513
664
1, 563, 038
1, 577, 498
1, 599, 592
1, 627, 545
1, 656, 899
1, 687, 088
1,715,819
1,749,214
1, 774, 371
1, 801, 237
1, 436,
1, 458,
1, 480.
1, 504,
1, 522,
1, 554,
1, 565,
1, 579,
1,595,
1, 616,
177,
168,
168,
169,
169,
169,
166,
159,
159,
159,
265
873
922
047
247
247
464
622
614
775
1940: O c t o b e r . . . 2,264
November. 2,269
December. 2,276
1941: J a n u a r y . .
February..
March
April
May
June
July
August
September.
October. __
929,
959,
991,
034,
079,
158,
154,
185,
222,
261,
262,
296,
323,
354,
379,
433,
449,
465,
486,
518,
692
225
041
239
856
513
807
223
992
006
53, 982
49, 990
65, 586
30, 286
25, 278
22, 865
71, 380
57, 686
56, 363
75,
37,
39,
39,
35,
26,
90,
48,
42,
40,
228
081
605
194
122
779
728
010
800
142
52, 270
53, 765
69, 313
77, 735
82, 443
85,117
84, 994
84, 794
82, 993
80, 676
27, 000
32, 000
8, 100
9,231
39, 094
34, 053
1, 624, 800
1, 627, 600
1, 665, 200
37, 309
34, 092
44, 531
18, 583
14, 867
12, 135
48, 307
38, 896
37, 715
102, 973
92, 558
84, 810
81, 076
83, 674
103, 696
102, 513
106, 624
112,033
116,723
1, 709, 800
1, 736, 900
1, 758, 400
1, 780, 100
1, 792, 700
1, 806, 200
1, 822, 700
1,841,600
1, 856, 400
1, 873, 500
87,
45,
44,
45,
38,
40,
70,
40,
40,
44,
950
587
390
058
423
030
290
730
254
341
49, 852
23, 131
23, 618
23, 376
20, 582
14, 530
61,061
30, 443
26, 765
23, 799
34, 360
35, 645
45, 365
51,371
55, 396
57, 542
56, 564
57, 592
54, 786
52, 507
FEDERAL
1939: June
December.
1,439
1,441
1,442
1,445
1,447
May
1
1,450
June
1,452
July
1 1,454
August
September 1 . 1,456
2
October ___ 1,457
872,
890,
915,
945,
977,
028,
022,
049,
075,
103,
443
840
866
271
675
374
799
671
119
605
STATE
1939: June
December.
787
798
898, 353
932, 630
633, 601
674, 980
667,611
702, 700
42, 917
41, 948
38, 764
36, 859
936, 900
973, 800
13, 700
16, 400
7,700
8,214
16, 754
15,463
1940: October.__
November.
December.
831
834
838
1,027,686 |
1,037,878
1,059,090
776,605
784, 547
796, 966
785, 467
793, 599
814, 296
39, 258
39, 308
39, 358
40, 117 | 1,071,000
40, 732 1 , 0 7 8 , 7 0 0
44, 092 1, 107, 200
16, 673
15, 898
21, 055
11,703
10,411
10, 730
23,073
18,790
18,648
1941: January __
February..
March
April.
May
June
July
August
September.
October
843
848
850
852
855
860
861
865
870
873
1,056,503
1,069,064
1,076,511
1,088,579
1, 102, 234
1,130,206
1, 131, 342
1, 136, 630
1, 146. 786
1, 158, 025
796, 019
806, 662
817, 088
829, 893
844, 683
867,186
879, 295
887, 322
898, 614
910, 617
826,
837,
842,
849,
857,
879,
884,
885,
891,
901,
39,
37,
37,
37,
37,
37,
37,
35,
35,
36,
249
385
175
968
181
139
008
552
873
401
220 i 38,477
142
36, 879
172
34, 651
031
34, 296
057
35, 568
054
40, 635
048
40, 357
950
40, 420
970
41, 864
012
42, 575
1,092,900
1, 132, 600
1,137,700
1, 143, 900
1, 150, 600
1,168,300
1, 175, 400
1, 178, 000
1, 181, 400
1, 192,300
39,
19,
20,
20,
19,
21,
33,
21,
21,
22,
540 25,376
17,910
797 13,950
18, 120
243 ; 15,987 23, 948
889 15,818 26, 364
332 14,540 27, 047
418 12,249 1 27,575
596 29, 667 28, 430
644 17, 567 27, 202
241 16, 035 28, 2 0 7
791 16,343 28, 2 6 0
i In addition, 3 converted Federals with assets of $1,211,000 were not^ nsured as of September 30,1941.
In addition, 6 converted Federals with assets of $1,880,000 were not insured as of October 31,1941.
2
January 1942
I33
Table 7 3 . - B A N K A D V A N C E S - L e n d i n g
operations of the Federal Home Loan banks
Table 7 4 . - G O V E R N M E N T
SHARES
Investments in member associations *
[Thousands of dollars]
November 1941
Federal Home
Loan Bank
Boston
New York
Pittsburgh
Winston-Salem. _
Cincinnati
Indianapolis
Chicago
Des Moines
Little Rock_ —
Topeka
Portland
Los Angeles
Total
[Amounts are shown in thousands of dollars]
Treasury
October 1941
Advances
outstandAd- Repay- Ad- Repaying
Nov.
vances ments vances ments
30, 1941
Owners' Loan
Home Owners
Corporatic
Corporation
Type of operation
Federals 2
$480
1,352
1,081
1,382
1,012
391
1,746
561
229
246
555
895
$277 $3, 072
742 1,812
792
633
1, 124 2,027
340
813
506
74
1,073 1,941
244
711
156
320
130
1, 106
295
559
356 1,193
$517 $12, 708
753 21, 778
610 16, 933
1,391 22, 894
748 14, 843
295 11, 434
1,066 30, 041
163 16, 216
8,852
163
7,366
454
6,621
315
544 17, 398
9,930
7,157 13, 139
7,019 187, 084
Jan.-Nov. 1941 __ 117, 433 131, 841
8,953 4,932
November 1940
Jan.-Nov. 1940-- 110, 779 106, 545
November 1939— 5,827 5,659
Jan.-Nov. 1939-- 76, 057 106, 077
-
185, 547
168, 822
Oct. 1935-Nov. 1941:
Applications:
Number
Amount
__
Investments:
Number
Amount
Repurchases _ _
Net outstanding investments
November 1941:
Applications:
Number
Amount
Investments:
Number
Amount
Repurchases
Federals
State
members
Total
1, 862
4, 689
4,689
991
5,680
$50, 401 $211,098
11,098 $66, 000 $277, 098
4, 229
1, 831
4,229
740
4,969
$49, 300 $177,
77, 318 $45, 756 $223, 074
$28, 016 $38,677
38, 677 $9, 411 $48, 088
$21, 284 $138,
38, 641 $36, 345 $174, 986
o
0
3
$185
3
$150
0
2
$125
5
$310
2
$125
$7
5
$275
$7
i Refers to number of separate investments, not to number of as:
associations in
0
which investments are made.
2 Investments in Federals by the Treasury were
made between
between December
D(
>re made
1933
and November 1935.
Table 75.—SAVINGS—Changes in selected types of private long-term
rm savings
[Amounts are shown in thousands of dollars]
Amounts sold during month
Period
Life insurance *
1941: January
February
March
April „
May
June
July
August
September
October
November
Insured U. S. savings
U.S.
savings
savings2
bonds 4
and loans 3
bonds
$505, 474 $50, 080
596, 534 82, 207
1940: November
December
_
522, 762
537, 557
598, 217
597, 203
604, 162
594, 164
582, 292
581, 171
581, 998
658, 339
581, 692
Amounts outstanding at end of month
189, 276
120, 680
131,961
61, 968
100, 581
102,517
145, 274
117,603
105, 241
122, 884
109, 475
Insured
commercial
banks 7
$3, 123, 036
3, 194, 793
127, 490
65, 384
64, 633
65, 947
57, 755
61,448
103, 886
62, 374
61,495
67, 132
3, 371, 135
3, 480, 040
3, 598, 546
3, 647, 249
3, 758, 822
3, 853, 297
3, 992, 095
4, 102, 528
4, 199, 539
4, 313, 973
4, 416, 244
1, 313, 954
1, 317, 794
1, 319, 959
1, 317, 102
1, 310, 027
1, 304, 041
1, 306, 928
1, 308, 839
1,311,060
1, 317, 293
1, 323, 258
10, 606, 224
13, 107, 022
+ 17.49%
+ 1.01%
-0.11%
+ 0. 34%
i Life Insurance Sales Research Bureau. Face amount of policies sold, excluding group insurance.
2 U. S. Treasury Daily Statement. Cash sales, including unclassified sales.
From May 1941: Defense Savings Bonds, Series E.
3 New private investments; amounts paid in as reported to the FHLBB.
* U. S. Treasury Daily Statement. Current redemption value. From May
1941: Defense Savings Bonds, Series E.
Mutual
savings
banks fl
$49, 990
65, 586
Change: Last 6 months.
134
Postal
savings 5
Insured
savings
a loans 8
and
$1, 298, 429
$2,
$'r 143, 360
1, 304, 382 $10, 617, 759 $13,
&13, 062,
062, 315
315 2,
202, 135
r
2,
262, 692
5 296, 225
2,
7 323, 041
2,
7 354, 239
2,
7 379, 856
2,
S 433, 513
2,
<?449, 807
2,
<?465, 223
2,
? 486, 992
2,
7 518, 006
2,
+ 6.96%
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.
« Month's Work. All deposits.
J FDIC. Time deposits evidenced by savings passbooks.
8 Private repurchasable capital as reported to the FHLBB.
Federal Home Loan Bank Review
Election and Appointment of Directors and Designation of Chairmen and Vice
Chairmen of the Federal Home Loan Banks
•
ANNOUNCEMENT has been made recently by
the Federal Home Loan Bank Board of: (1) the
election of Classes A, B, and C directors and directorsat-large to serve 2-year terms beginning January 1,
1942 unless otherwise noted; (2) the appointment of
public interest directors to serve 4-year terms
beginning January 1, 1942; and (3) the designation of
chairmen and vice chairmen to serve during the
calendar year 1942 or until their successors are
designated and qualified.
DISTRICT NO. 1—FEDERAL HOME LOAN BANK
OF BOSTON
Chairman: Bernard J. Rothwell, Bay State Milling Company,
Boston, Massachusetts (reappointed).
Vice Chairman: Edward H. Weeks, Old Colony Cooperative
Bank, Providence, Rhode Island (reappointed).
Public Interest Director: Bernard J. Rothwell (reappointed).
Class A Director: Edward H. Weeks (reelected).
Class B Director: Reuben A. Cooke, Burlington Federal
Savings and Loan Association, Burlington, Vermont
(reelected).
Class C Director: Sumner W. Johnson, Homestead Loan and
Building Association, Portland, Maine (reelected).
Director-at-Large: Philip A. Damon, The Pittsfield Co-operative Bank, Pittsfield, Massachusetts (reelected).
DISTRICT NO. 2—FEDERAL HOME LOAN BANK
OF NEW YORK
Chairman: George MacDonald, Manufacturers' Trust Company, New York, New York (reappointed).
Vice Chairman: Francis V. D. Lloyd, Park Building and Loan
Association, Ridgefield Park, New Jersey (reappointed).
Public Interest Director: George MacDonald (reappointed).
Class A Director: E. Clinton Wolcott, First Federal Savings
and Loan Association, Rochester, New York.
Class B Director: Francis V. D. Lloyd, Garden State Building and Loan Association, Ridgefield Park, New Jersey
(formerly Class C Director).
Class C Director: Harry J. Stevens, Trustworthy Building and
Loan Association, Newark, New Jersey (formerly Class B
Director).
Director-at-Large: LeGrand W. Pellett, The Building and
Loan Association of Newburgh, Newburgh, New York
(reelected).
DISTRICT NO. 3—FEDERAL HOME LOAN BANK
OF PITTSBURGH
Chairman: Ernest T. Trigg, National Paint, Varnish and
Lacquer Association, Philadelphia, Pennsylvania (reappointed) .
January 1942
Vice Chairman: Charles S. Tippets, The Mercersburg Academy, Mercersburg, Pennsylvania (reappointed).
Public Interest Director: Ernest T. Trigg (reappointed).
Class A Director: Harry R. Smith, Ellwood City Federal
Savings and Loan Association, Ellwood City, Pennsylvania (reelected).
Class B Director: Charles Warner, Brandywine Building and
Loan Association, Wilmington, Delaware (reelected).
Class C Director: Francis E. McGill, Manayunk Savings and
Loan Association, Philadelphia, Pennsylvania.
Director-at-Large: James J. O'Malley, First Federal Savings
and Loan Association of Wllkes-Barre, Wilkes-Barre,
Pennsylvania (reelected).
DISTRICT NO. 4—FEDERAL HOME LOAN BANK OF
WINSTON-SALEM
Chairman: Horace S. Haworth, Roberson, Haworth, and
Reese (law firm), High Point, North Carolina (reappointed) .
Vice Chairman: Edward C. Baltz, Perpetual Building Association, Washington, D. C. (reappointed).
Public Interest Director: W. Waverly Taylor, Waverly Taylor,
Inc., (builders) Washington, D. C. (reappointed).
Class A Director: William H. Walker, First Federal Savings
and Loan Association of Miami, Miami, Florida (reelected).
Class B Director: J. Newton Gordon, The Cooperative Building and Loan Association of Lynchburg, Lynchburg,
Virginia (reelected).
Class C Director: George E. Rutledge, First Federal Savings
and Loan Association of Bessemer, Bessemer, Alabama
(reelected).
Director-at-Large: P. W. Spencer, Mechanics Federal Savings
and Loan Association, Rock Hill, South Carolina (reelected).
DISTRICT NO. 5—FEDERAL HOME LOAN BANK OF
CINCINNATI
Chairman: Richard Dietzman, Attorney, Louisville, Kentucky (reappointed).
Vice Chairman: Wm. Megrue Brock, The Gem City Building
and Loan Association, Dayton, Ohio (reappointed).
Class A Director: James M. McKay, The Home Savings and
Loan Company of Youngstown, Youngstown, Ohio
(reelected).
Class B Director: Fred B. Bassmann, Monmouth Street
Federal Savings and Loan Association of Newport, Newport, Kentucky (reelected).
Class C Directors: Herman F. Cellarius, The San Marco
Building and Loan Association, Cincinnati, Ohio (reelected) .
R. A. Stevens, Dyer County Federal Savings and Loan
Association, Dyersburg, Tennessee—elected to serve for
the unexpired portion of 2-year term ending December
31, 1942 (previously appointed to this position).
Director-at-Large: Wm. Megrue Brock (reelected).
I35
DISTRICT NO. 6—FEDERAL HOME LOAN BANK OF
INDIANAPOLIS
Chairman: Herman B. Wells, Indiana University, Bloomington, Indiana (reappointed).
Vice Chairman: Fermor S. Cannon, Railroadmen's Federal
Savings and Loan Association, Indianapolis, Indiana
(reappointed).
Public Interest Director: Dr. S. Rudolph Light, Physician,
American National Bank Building, Kalamazoo, Michigan
(reappointed).
Class A Director: James H. Jerome, Peoples' Building and
Loan Association, Saginaw, Michigan.
Class B Director: Robert H. Wertenberger, Peoples Savings
and Loan Association of DeKalb County, Auburn,
Indiana (reelected).
Class C Director: Earl C. Bucher, People's Savings and Loan
Association, Huntington, Indiana (reelected).
Director-at-Large: Myron H. Gray, Muncie Federal Savings
and Loan Association, Muncie, Indiana (reelected).
DISTRICT NO. 7—FEDERAL HOME LOAN BANK OF
CHICAGO
Chairman: Charles E. Brought on, The Sheboygan Press,
Sheboygan, Wisconsin (reappointed).
Vice Chairman: Henry G. Zander, Jr., Henry G. Zander and
Company (realtors), Chicago, Illinois (reappointed).
Public Interest Director: Clarence W. Reuling, Massachusetts
Mutual Life Insurance Company, Peoria, Illinois
(reappointed).
Class A Director: Earl S. Straight, North Shore Building and
Loan Association, Shorewood (Milwaukee), Wisconsin.
Class B Director: George Dick, Modern Federal Savings and
Loan Association, Milwaukee, Wisconsin (previously
appointed for unexpired term).
Class C Director: Nic W. Heintskill, Community Building
and Loan Association, Milwaukee, Wisconsin.
Director-at-Large: Arthur G. Erdmann, Bell Savings and
Loan Association, Chicago, Illinois.
DISTRICT NO. 8—FEDERAL HOME LOAN BANK OF
DES MOINES
Chairman: Charles B. Robbins, Cedar Rapids Life Insurance
Company, Cedar Rapids, Iowa (reappointed).
Vice Chairman: E. J. Russell, Mauran, Russell, and Crowell
(architects), St. Louis, Missouri (reappointed).
Public Interest Director: E. J. Russell (reappointed).
Class A Director: John C. Shenk, First Federal Savings and
Loan Association of Davenport, Davenport, Iowa.
Class B Director: Kenneth S. Kerfoot, Ben Franklin Federal
Savings and Loan Association, St. Paul, Minnesota.
Class C Director: W. M. Breau, The State Building Loan and
Savings Association, Des Moines, Iowa.
Director-at-Large: Louis A. Boyles, Yankton Building and
Loan Association, Yankton, South Dakota (reelected).
DISTRICT NO. 9—FEDERAL HOME LOAN BANK OF
LITTLE ROCK
Chairman: Will C. Jones, Jr., Mercantile National Bank at
Dallas, D a l l a s , Texas (reappointed).
136
Vice Chairman: Wilbur P. Gulley, Pulaski Federal Savings
and Loan Association, Little Rock, Arkansas (reappointed) .
Public Interest Director: Will C. Jones, Jr. (reappointed).
Class A Director: O. M. Thompson, Capital Building and
Loan Association, Baton Rouge, Louisiana.
Class B Director: O. W. Boswell, First Federal Savings and
Loan Association of Paris, Paris, Texas (reelected).
Class C Director: Louis D. Ross, St. Tammany Homestead
Association, Covington, Louisiana (reelected).
Director-at-Large: Wilbur P. Gulley (reelected).
DISTRICT NO. 10—FEDERAL HOME LOAN BANK OF
TOPEKA
Chairman: Paul F. Good, Good, Good, and Kirkpatrick
(attorneys), Lincoln, Nebraska (reappointed).
Vice Chairman: Ross E. Thompson, United Federal Savings
and Loan Association, Tulsa, Oklahoma (reappointed).
Class A Director: Arthur R. Brasted, Mid-Kansas Federal
Savings and Loan Association of Wichita, Wichita,
Kansas (reelected).
Class B Director: L. W. Bauerle, Southwest Federal Savings
and Loan Association, Wichita, Kansas (reelected).
Class C Director: C. L. Thomas, First Federal Savings and
Loan Association of Topeka, Topeka, Kansas.
Director-at-Large: George W. Greenwood, The Topeka
Building and Loan Association, Topeka, Kansas.
DISTRICT NO. 11—FEDERAL HOME LOAN BANK
OF PORTLAND
Chairman: Ben A. Perham, Perham Fruit Company, Yakima,
Washington (reappointed).
Vice Chairman: E. E. Cushing, Citizens Federal Savings and
Loan Association of Seattle, Seattle, Washington.
Class A Director: S. G. Dye, Ogden First Federal Savings and
Loan Association, Ogden, Utah.
Class B Director: T. M. Donahoe, Puget Sound Savings and
Loan Association, Seattle, Washington.
Class C Director: I. W. Dinsmore, Rawlins Federal Savings
and Loan Association, Rawlins, Wyoming.
Director-at-large: A. C. Boucher, Great Falls Building and
Loan Association, Great Falls, Montana.
DISTRICT NO. 12—FEDERAL HOME LOAN BANK
OF LOS ANGELES
Chairman: David G. Davis, Raphael Weill and Company,
San Francisco, California (reappointed).
Vice Chairman: Paul Endicott, Home Builders' Loan Association, Pomona, California.
Public Interest Director: David G. Davis (reappointed).
Class A Director: Horace S. Wilson, Southern California
Building and Loan Association, Los Angeles, California
(reelected.)
Class B Director: Roy W. Bagby, Santa Cruz County Building and Loan Association, Santa Cruz, California.
Class C Director: Frank McNamee, Jr., Mutual Building and
Loan Association, Las Vegas, Nevada.
Director-at-large: George B. Campbell, Independent BuildingLoan Association, San Jose, California.
Federal Home Loan Bank Review
U. S. GOVERNMENT PRINTING OFFICE: 1942
FEDERAL HOME LOAN BANK DISTRICTS
\0W
. —
•
BOUNDARIES OF FEDERAL HOME LOAN BANK (DISTRICTS
FEDERAL HOME LOAN BANK CITIES.
OFFICERS OF FEDERAL HOME LOAN BANKS
BOSTON
CHICAGO
B . J. ROTHWELL, Chairman; E . H . W E E K S , Vice Chairman; W . H .
C. E . BROUGHTON, Chairman; H . G. ZANDER, J R . , Vice Chairman; A . R.
N E A V E S , President; H . N . F A U L K N E R , Vice President; L . E . D O N O V A N ,
GARDNER,
Secretary-Treasurer; P . A. HENDRICK, Counsel.
Treasurer; CONSTANCE M . W R I G H T , Secretary; UNGARO & SHERWOOD,
President; J. P . D O M E I E R ,
Vice President; H . C. J O N E S ,
Counsel.
NEW
GEORGE
MACDONALD,
Chairman;
YORK
F.
V.
DES
D.
LLOYD,
MOINES
Chairman;
C. B . R O B B I N S , Chairman; E . J. R U S S E L L , Vice Chairman; R. J. RICHARD-
N U G E N T FALLON, President; R O B E R T G. CLARKSON, Vice President;
SON, President-Secretary; W . H . LOHMAN, Vice President-Treasurer;
J. M. M A R T I N , Assistant Secretary; A. E . MUELLER, Assistant Treasurer;
D E N T O N C . L Y O N , Secretary; H . B . D I F F E N D E R F E R ,
Vice
Treasurer.
E M M E R T , JAMES, N E E D H A M & L I V D G R E N , Counsel.
PITTSBURGH
LITTLE ROCK
E.
T . T R I G G , Chairman; C. S. T I P P E T T S , Vice Chairman; R. H . R I C H ARDS,
President;
G.
R.
PARKER,
Vice
President;
H.
H.
GARBER,
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 .
L A R O Q U E , President-Secretary; G. E . WALSTON, Vice President-Treasurer; J o s .
W.
HOLT,
Assistant
Secretary;
T.
SPRUILL
THORNTON,
Counsel.
CINCINNATI
R.
P.
DIETZMAN,
Chairman; ¥ M . M E G R U E
BROCK,
Vice
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
W E B B , J R . , Secretary; A. L . M A D D O X , Treasurer; T A F T ,
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 , J R . , General Counsel.
B E N A. PERHAM, Chairman; E . E . CUSHING, Vice Chairman; F . H .
STETTINIUS
JOHNSON,
& HOLLISTER, General Counsel.
R U S S E L L P A R K E R , Secretary-Treasurer; HAMMOND, B U S C H M A N N , K R I E G
BOGARDUS,
Vice
PresidentDUSEN-
Los A N G E L E S
II. B . W E L L S , Chairman; F . S. CANNON, Vice Chairman-Vice President;
& D E V A U L T , Counsel.
IRVING
BERY, Counsel.
INDIANAPOLIS
F R E D T . G R E E N E , President; G. E . OHMART, 2nd Vice President; C .
President-Secretary;
Treasurer; Mrs. E . M . J E N N E S S , Assistant Secretary; V E R N E
D.
G. D A V I S , Chairman; P A U L ENDICOTT, Vice Chairman; M . M . H U R -
FORD, President; C. E . B E R R Y , Vice President; F . C . N O O N , SecretaryTreasurer; VIVIAN SIMPSON, Assistant Secretary,
@FedFRASER