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FEDERAL
HOME
LOAN
BANK
1943
/*•,%. ,^
CONTENTS
FEDERAL
FOR
JANUARY
• 1943
ARTICLES
Page
REFINANCING H O L C LOANS—A STATEMENT OF THE PROBLEM
By John H. Fahey, Federal H o m e Loan Bank Commissioner.
HOME
BOND B U Y I N G — A N E W INVESTMENT OUTLET
101
Legal limitations—Types of securities available—Open m a r k e t issues—
Savings b o n d s — T a p issues—Policy considerations.
M O N T H L Y R E P O R T S FOR ASSOCIATION D I R E C T O R S
LOAN
105
Balance sheet analysis—The story of monthly operations—Comparisons
with industry averages—Special analyses—Format i m p o r t a n t — O t h e r
sources of background material.
W A R AND B R I T I S H B U I L D I N G S O C I E T I E S
107
Assets relatively stable—New investments and greater liquidity—Lower
earnings and dividend rates.
BANK
PORTFOLIO
ANALYSIS—A TYPICAL
EXAMPLE
109
Age of borrower—Employment of borrower—Location of property—
Analysis by loan amount—Loan-to-value ratios—Some comments.
REVIEW
NATIONAL HOUSING
AGENCY
John B. Blandford, Jr., Administrator
FEDERAL HOME LOAN
BANK ADMINISTRATION
MONTHLY
SURVEY
Highlights and summary
General business conditions
Residential construction
Building costs
N e w mortgage-lending activity of savings and loan associations
Mortgage recordings
Foreclosures
Federal Home Loan Bank System
Insured savings and loan associations
117
118
118
118
119
119
120
120
120
John H. Fahey, Commissioner
STATISTICAL TABLES
FEDERAL HOME LOAN
BANK SYSTEM
FEDERAL SAVINGS AND LOAN
ASSOCIATIONS
FEDERAL SAVINGS AND LOAN
INSURANCE CORPORATION
HOME OWNERS' LOAN
CORPORATION
UNITED STATES HOUSING
CORPORATION
Vol.9
No. 4
New family dwelling units—Building costs—Savings and loan lending—Mortgage
recordings—Total nonfarm foreclosures—FHA activity—Federal Home Loan
Banks—Sales of U. S. war-savings bonds—Savings in selected financial institutions—Insured savings and loan associations
122-127
REPORTS
Home front
From the m o n t h ' s news
Election of directors and designation of chairmen and vice chairmen of t h e
Federal H o m e Loan Banks
Honor roll of war-bond sales
Directory of member, Federal, and insured institutions added during N o v e m b e r December
A m e n d m e n t to Rules and Regulations
100
104
112
113
121
128
SUBSCRIPTION P R I C E OF REVIEW. The REVIEW is the Federal Home Loan Bank Administration's medium of communication with member institutions
of the Federal Home Loan Bank System and is the only official organ or periodical publication of the Administration. The REVIEW will be sent to all member institutions without charge. To others the annual subscription price, which covers the cost of paper and printing, is $1. Single copies will be sold at 10 cents. Outside
of the United States, Canada, Mexico, and the insular possessions, subscription price is $1.60; single copies, 15 cents. Subscriptions should be sent to and copies ordered
from Superintendent of Documents, Government Printing Office, Washington, D. C.
APPROVED BY T H E BUREAU OF T H E BUDGET
503086—43
1
REFINANCING HOLC LOANS—A STATEMENT OF
THE PROBLEM
The current movement by private mortgage lenders to secure prime
HOLC loan accounts, if continued, will have a serious effect on the
ultimate loss incurred by the Government in the largest salvaging
process ever undertaken in the field of home ownership. The following
statement summarizes the situation.
By J O H N H. FAHEY
Federal Home Loan Bank Commissioner
•
I N many respects, operations of the Home
Owners' Loan Corporation during the past year
have been marked by the most encouraging progress
since it was created to cope with the mortgage crisis
of 1933.
Increased employment and higher wages have resulted in a record-breaking rise in the number of
home owners whose loan payments to the Corporation are being met on schedule, a sharp drop in foreclosures, and a significant upward trend of principal
payments by HOLC borrowers in excess of their
contract obligations.
The improved condition of the Corporation's loans,
however, is now stimulating a development which,
if continued, will seriously aggravate the final loss
of the HOLC and increase the Government debt.
This is the loss of loans which now represent practically no risk, the income from which is necessary to
offset the losses incurred on those loans which were
beyond rehabilitation and to meet the expense of
servicing borrowers still in difficulty.
I t was perhaps inevitable that some mortgagelending institutions, with the number of new mortgages reduced by war-time restrictions, should regard
the HOLC portfolio as an important source of
profitable loans and undertake to secure the Corporation's best assets. For this reason, I feel it necessary
to discuss frankly the possible consequences of such
activity upon the final outcome of the Government's
emergency program to protect the Nation's home
owners, liquefy the frozen mortgage assets of the
country's financial institutions, and stop the mortgage panic of 1932-1933.
MORTGAGE ACCOUNTS N o w
IN GOOD CONDITION
Taking advantage of their increased incomes to
reduce the mortgages on their homes, HOLC borrowers paid back $40,000,000 more than was regu98
larly due on principal during 1942. Unquestionably,
many of them were influenced by the President's appeal to support the Government's anti-inflation program in this manner. The number of borrowers
making such advance payments every month is
now over 100,000, an increase of 10,000 in recent
months, while over 575,000 HOLC borrowers are
meeting their monthly mortgage payments on regular
schedule. In addition, borrowers during 1942 also
paid off in full, out of their own savings, mortgages
amounting to approximately $30,000,000. This is,
of course, a very healthy development. I t is a very
different matter, however, when an HOLC borrower
is prevailed upon merely to transfer and continue his
loan somewhere else, often for a larger amount and
at a higher interest rate.
The favorable developments of the past two years
in the operations of the HOLC indicate that, if
normal liquidation continues, the final loss of the
Corporation in taking over more than a million defaulted home loans, amounting to three billion dollars, will be far less than was expected when the
Corporation was established in the Spring of 1933.
I t was then estimated that the Government's final
loss would run from half a billion to a billion dollars.
I t was maintained, however, that such losses would
be justified because of the necessity of saving the
mortgage situation.
GOOD LOANS O F F S E T THE LOSSES
Despite the assumption that the Government
must sustain substantial losses in taking over mortgages which on the average were nearly two years in
default on principal and interest and almost three
years on taxes, Congress naturally expected t h a t
every effort would be made to hold losses to a minimum. At the same time, it was believed—and has
since been demonstrated—that the vast majority of
borrowers would become current as economic conditions improved and that the interest income from
Federal Home Loan Bank Review
good loans would be used to offset a major portion of
the losses incurred through foreclosure and sale.
Obviously, any development depriving the HOLC of
this revenue must cause concern.
From time to time in recent years, private institutions have taken over HOLC loans which had been
paid down to the point where they represented little,
if any, risk. The loss of interest income to the Corporation on these refinanced loans (as compared with
the interest income if the loans had continued to pay
on the regular basis until maturity) represents a
total of approximately $39,000,000.
In the past few months, the activity of private
lenders in seeking to transfer the best HOLC loans
to their own portfolios has more than doubled. The
loss of interest on loans taken during 1942 alone, as
against what the Corporation would receive if the
borrowers had continued to pay on their regular
schedules until the debt was discharged, amounts to
over nine million dollars. In several sections of the
country, lists of borrowers have been secured and
campaigns have been started to induce home owners,
who regularly make their payments on time, to
transfer their loans to private holders. The activity
is confined to a limited number of institutions out of
the thousands of banks, savings and loan associations, mutual savings banks, and other mortgagelending institutions, and it is obvious that those who
are engaged in this effort do not realize the extent of
the loss it necessarily imposes on the Home Owners'
Loan Corporation and, in turn, on the Government.
The HOLC has, until now, been able to meet all
its expenses and a major portion of its capital losses
from its regular income and has not been obliged to
ask the Treasury for assistance. Its estimated budget of ten million dollars for the next year represents
a reduction of twenty-five million dollars from the
peak. The number of employees will drop to 3,832,
compared with approximately 21,000 at the height
of operations. If its good loans are steadily drained
away, however, no possible economies in operation
can prevent greatly increased losses to the Government.
TRANSFERS AT THE E X P E N S E OF BORROWERS
In numerous cases, the taking over of these loans
by private lending institutions is increasing the mortgage indebtedness of the borrowers at a time when
it should be cut down. When a home owner, whose
property was saved from foreclosure by the HOLC,
has gradually reduced his debt to the point where
he is no longer in danger, it is neither in his interest
January 1943
nor in the public interest to encourage him to increase his indebtedness. It is surprising to find that
in some instances the loans of HOLC borrowers
are refinanced not only for more than they now owe
but for longer periods of repayment. Both developments conflict with the Government's anti-inflationary program of reducing consumer obligations
and shortening credit periods. More than that, in
many cases borrowers are paying substantially
higher rates of interest on their increased mortgages
than the 4% percent they were paying the HOLC.
MANY
PHASES TO THE PROBLEM OF LIQUIDATION
The problem of accelerating the liquidation of the
HOLC is complicated and, after all, is a matter for
Congress to consider and dispose of. The sale or
refinancing of the HOLC's best loans, without consideration for the contingencies involved, offers no
solution. The supposition of those who advocate
such a plan is that the Government would be saved
money. The fact is that the loss of income-producing assets, leaving the Corporation with its distressed loans, will mean that the Government and
the general public eventually must bear the costs of
liquidation without the offsetting revenues which
now are available.
I t should be realized that HOLC aided a large
number of financial institutions in a period of extreme
distress by taking over mortgages they were unable
or unwilling to carry. It disbursed $932,000,000 to
banks and trust companies, $767,900,000 to savings
and loan associations, $192,000,000 to finance and
mortgage-companies, and $164,600,000 to insurance
companies. Its responsibility under the law was to
save homes and, avoiding foreclosures as far as
possible, to turn poor loans into sound assets on a
self-liquidating basis. Thanks to improved economic conditions and the good faith of borrowers,
most encouraging progress has been made on this
program. However, a continuation of the present
drive, pressed by some who apparently do not understand what is involved, will undermine the financial
balance upon which all HOLC operations have been
based.
The financial institutions which were the beneficiaries of such extraordinary help from their Government in 1933, 1934, and 1935, and which are now
engaged in many kinds of constructive war service,
may, I think, well consider if it is not their responsibility to refrain from encouraging HOLC borrowers
to transfer and refinance their loans.
99
IP
MT
M
h
1J/
Victory Fund far
exceeds goal set
H e a v y over-subscription of the
Treasury's Victory F u n d during December m a y postpone until April t h e
second phase of the drive.
Nearly
$13,000,000,000, or over
$3,900,000,000 above t h e q u o t a set, was subscribed during t h e m o n t h .
The Victory F u n d represents t h e
largest financing operation in t h e
history of t h e world. T h e full magnitude of t h e drive is best illustrated
by a comparison with t h e largest loan
previously floated—the $6,964,000,000
F o u r t h Liberty Loan subscribed in 3
weeks in 1918.
Of t h e total borrowed by the Treasury, $5,072,000,000 was loaned by
banks and $7,834,000,000 came from
non-banking sources. Purchases of
Series E
war-savings bonds
by
individuals a m o u n t e d to $726,000,000,
an all-time record for such sales in a
month.
ft ft ft ft ft
Rent control extended
to new areas
Taking t h e first step in bringing
rent control into effect for Defense
R e n t a l Areas designated in t h e blanket
order of October 5, O P A has issued
regulations for t h e Hastings, Nebraska,
rental area. On December 10, rents
were set back to the levels prevailing
on March 1, 1942.
An O P A order of December 30,
extended rent control t o certain counties in Oregon, Texas,
Virginia,
Washington, a n d Wisconsin. Effective
J a n u a r y 1, t h e order set r e n t s back to
the level of M a r c h 1, 1942.
All areas in continental United
States m a y become subject to rent
control a t any time OPA regulations
are issued for t h e area.
ft
ft
Plywood sales are
strictly controlled
To allow distribution y a r d s a n d retailers to replenish their stocks, future
sales, shipments, or deliveries of soft
plywood will be prohibited except on
orders rated A A - 5 or higher. T h e
order does not apply to producers of
100
War insurance for
money and securities
/T\
plywood but does include warehouses,
wholesale, or retail establishments
controlled by producers.
The AA-5 rating now applicable to
plywood orders will confine use of t h e
material to essential military and
civilian needs.
ft ft ft ft ft
Landlords charged with
rent-control violations
Charges of criminally violating rent
regulations have been filed against
landlords in approximately 20 widely
separated cities. OPA officials indicate t h a t this m a y be the first step in a
far-reaching drive for rent enforcement.
Charges include failure to register
properties, filing of false registration
statements, improper eviction of tenants, discontinuance of essential services, and the charging of rents higher
t h a n those permitted by t h e law.
Areas in which landlords are under
indictment include Cleveland, Chicago, Detroit, Kansas City, Wichita,
Milwaukee, Newark, a n d Mobile.
War insurance against direct losses
of money a n d securities held in safedeposit boxes, vaults, a n d safes m a y
be obtained through agents of t h e
W a r Damage Corporation.
Money
a n d securities in transit in armored
cars also m a y be protected under plans
which became effective December 2 1 .
Four classes of coverage are provided
for losses of money a n d a similar n u m ber for securities. Premiums range
from 250 t o $1.50 per $1,000 for d a m age of money a n d from 7}£fi t o 450 per
$1,000 for securities.
For losses of money, m a x i m u m limits
of coverage range up to $750,000 for
each of t h e premises covered a n d u p
t o $2,000,000 for a single policy.
Losses of securities are covered u p t o
$5,000,000 for a single premises a n d
u p to $10,000,000 for each policy.
T h e new insurance supplements t h e
general war damage protection which
is being handled t h r o u g h local fire
insurance agents.- A group of 85
casualty and surety companies h a v e
been designated as fiduciary agents b y
t h e War D a m a g e Corporation. Applications m a y be submitted t o local
agents of these companies or t o local
insurance brokers.
A JOINT DECLARATION OF POLICY
Increasing shortages of critical materials have m a d e it imperative t h a t t h e
National Housing Agency and t h e W a r Production Board clarify certain
policies and formalize certain procedures for the planning, programming, and
construction of war housing. T h e following digest highlights t h e salient
points of the s t a t e m e n t issued on December 15, 1942.
1. N H A will determine w h a t portion of war housing shall be p e r m a n e n t
or t e m p o r a r y a n d the n u m b e r of units t o be publicly and privately financed.
A considerable portion of all new construction will be t e m p o r a r y units.
2. War housing will be scheduled by t h e N H A after allocations of materials
have been made by t h e W P B .
3. All projects m u s t conform to War Housing Construction S t a n d a r d s .
a. Only materials allocated b y t h e W P B m a y be used in war-housing
construction. Materials t a k e n from stock, secured without
priority assistance, or acquired b y loan or gift m a y not be used.
b. Particular emphasis will be placed on t h e standardization of t h e size
of units a n d of utility and equipment instalations, to achieve
m a x i m u m savings of critical materials.
4. N H A will inspect projects, reporting violations to W P B Avhich will
enforce compliance.
5. Occupancy of housing projects is limited to war-industry workers.
a. Accessability of projects to plants employing workers will be a prime
consideration of future housing.
b. For privately financed housing, u n i t s m u s t be rented for at least 4
months, after which t h e y m a y be sold to t h e war worker occupying
t h e unit.
Federal Home Loan Bank Review
BOND BUYING—A NEW INVESTMENT OUTLET
The purchase of Government securities by savings and loan associations presents a new set of management problems. Determining the
kind and amount to buy requires careful analysis and study based on
individual circumstances, but a few general observations are applicable.
•
SAVINGS and loan holdings of U. S. Government securities have increased at an extraordinary rate during the past year, as evidenced by the
portfolio of insured associations which more than
tripled in this period. And as long as the flow of
new private share capital into these institutions
continues at its present rate, and their normal
outlets for mortgage loans are restricted, bond
portfolios will account for an increasing proportion
of association assets.
Managing an investment account of this type is
a new experience for most association executives and
requires first of all a clear-cut definition of the objectives which an institution is seeking to achieve. In
its barest essentials, the purchase of Government
bonds by savings and loan associations represents
a convenient, safe, and patriotic solution to the
problem of putting excess cash funds to work providing at least a minimum return and a maximum
degree of liquidity.
For some institutions, the building of a bond portfolio is probably only a temporary expedient until a
more normal volume of loans may be made. Others
may regard these moves as initial steps in placing
a greater proportion of their working funds in semiliquid outlets. For all, however, there will arise
the question of how much they can invest, and how
much they should invest in Government securities;
and which types of U. S. issues are most suitable
investments for the funds of savings and loan associations. Answers to these questions will be dictated by (1) legal limitations; and (2) management
policies.
LEGAL LIMITATIONS
Federally chartered associations may invest without limit in obligations of, or obligations guaranteed
as to principal and interest by, the United States,
but a recent survey by the legal staff of the FHLBA
revealed considerable variation in the laws under
which State-chartered institutions operate. Based
on a compilation of statutes dated December 1, 1942,
there w^ere only eight State statutes which did not
contain any provision for the investment by State
January 1943
associations in Government obligations. It is possible that even institutions in these States may, by
virtue of rules and regulations of the State supervisory agency or legal interpretation of their charters,
have the power to purchase securities of this type.
Seventeen of the statutes place no limitations upon
the amount, and seventeen provide that only funds
in excess of the demands of members can be used for
this purpose. (See table on page 102).
Eleven States place specific limitations on the
proportion of an association's assets which may be
invested in Government obligations, ranging from
10 to 25 percent of total resources. Virginia establishes the maximum at four times the aggregate of
reserves and undivided-profits accounts.
T Y P E S OF SECURITIES AVAILABLE
A wide variety of Treasury bills, notes, certificates,
and bonds are available from which savings and loan
associations may choose the issue or issues most
suited to their individual needs. In general, these
may be divided into three classifications: (1) open
market issues; (2) U. S. savings bonds; and (3) " t a p "
bonds and Treasury tax savings notes.
Open Market Issues
Open market issues offer a wide range of maturities
and yields varying from a few days to 30 years and
from small fractions of 1 percent to approximately
2% percent. These issues are traded on the open
market and are, therefore, easily convertible into
cash. They consist of:
1. Treasury bills.—These are short-term obligations with maturities generally up to 91 days. The
average yield on bills obtained on tender is about
% percent wdiile the current-market yield is slightly
less. They are the equivalent of cash since they
will be purchased at the option of the holder by
any Federal Reserve Bank on a discount basis at
the rate of % percent per annum.
2. Certificates of indebtedness.—These certificates
are issued from time to time in limited amounts at
par on a public subscription basis. Their maturities
101
are somewhat longer than the Treasury bills, but
they always mature within 1 year. Being readily
marketable, they are in the nature of a cash asset
and recent issues have yielded up to a maximum of
% percent per annum when bought on subscription.
3. Treasury notes.—Also offered on a subscription
basis, the maturities of these obligations are from 1
to 5 years. They carry varying coupon rates,
usually with a maximum of 1}{ percent, but are likely
to yield slightly less if bought in the open market.
Chart of statutory provisions affecting the power
of
State-chartered
savings a n d
loan
associations to invest in U n i t e d States
Government obligations
4. Treasury bonds.—These are still longer term
securities, with the maturities of the various issues
varying from 5 to as much as 30 years. The longestterm bonds now outstanding carry coupons of 2}i
percent but are quoted at a small premium to yield
the investor slightly under that figure if bought on
the open market. Included in the large-scale December financing operations was a 5%-year issue
which yielded 1% percent per annum for this period.
With the exception of commercial banks, subscribers to recent issues have been allotted their full
subscriptions. This is in contrast to the earlier procedure, when all subscribers were treated equally
and were allotted on a percentage basis which sometimes ranged as low as 10 percent.
[Based on compilation of statutes dated December I, 1942]
Savings Bonds
LimitaNo limi- tions
as
tations to when
upon
funds
amount may be
invested invested
in Gov- in Government ernment
obligaobligations
tions
State
Alabama
Arizona _
Arkansas ..
California
Colorado
Investment in
No
Govern- power
ment
to invest
obliga- in Govtions
ernment
limited obligations
as to
amount
X
X
X
X
X
X
X
X
X
X
X
X
X
i
Illinois
Indiana
Iowa
Kansas
X
X
X
X
X
\
X
X
X
X
X
X
X
Louisiana
Maine
Maryland
Massachusetts
Michigan._
X
X
X
X
X
X
x
X
X
X
North Carolina . _j
North Dakota
i
Ohio
!
Oklahoma
Oregon . „
J
Pennsylvania
i
Rhode Island
!
South Carolina, .
South Dakota. ___
Tennessee
X
X
X
X
X
X
X
Nevada
!
New Hampshire,New Jersey
New Mexico
New York
102
X
X
Minnesota
Mississippi
Missouri
Montana
Nebraska
West Virginia
Wisconsin.
Wyoming
Power
does extend to
obligations
guaranteed by
U. S.
x
X
Connecticut
Delaware
Florida
Georgia
Idaho
Utah
Vermont
Virginia .
Washington
Power
does not
extend to
obligations
guaranteed by
U.S.
1
X
X
X
x
X
i1
X
X
x
X
X
X
x
x
X
X
X
X
X
X
X
X
X
X
x
X
X
X
X
X
X
x
X
X
x
X
!
X
X
;
!
X
X
x
x
1
X
X
1
.
Series F and Series G savings bonds, which were
classified as war-savings bonds prior to December 1,
offer a different type of investment outlet for savings
and loan associations. They are dated as of the first
day of the month in which payment is made and
mature 12 years from the date of issue. Both
issues yield approximately 2% percent if held to
maturity.
There is one important difference between these
two kinds of savings bonds: Series F are appreciation bonds which are bought at a discount. The
interest is not disbursed but accumulates during
the life of the bond, and is reflected in the increased
maturity value. Series G, on the other hand, is an
income bond, the owner of which receives a check
from the Treasury twice a year at the rate of 2%
percent per annum.
After a period of 6 months, either series may be
redeemed upon 1 month's notice, but the yield is
increased in proportion to the length of time that the
bonds are held. For example, at the end of 4 years
the redemption value of a $1,000 Series G bond is
$947, and the investment yield for this period is
only about 1.2 percent. If surplus funds are invested
in Series G in the expectation that the yield will
amount to 2l/2 percent, and due to some emergency
the bonds are redeemed in the earlier years, not only
will the return be less than anticipated, but reserves
must be drawn upon to meet the lower redemption
value.
Tap Issues
X
X
In offering " t a p " issues it is the practice of the
Treasury to hold the subscription books open for a
period of time during which allotments are made for
Federal Home Loan Bank Review
SERIES "G" SAVINGS BONDS
DOLLARS
REDEMPTION
VALUE AND NET INTEREST YIELD OF $ 1 , 0 0 0 BONDS
990
4.5
]
]
i
980
4.0
^-REDEMPTION VALUE
^
(LEFT HAND SCALE)
970
\
960
3.5
1
i'\i
9 50
;
1
|
i
I
|
!
940
2.0
9 30
j
920
...••••* ^
NET INTEREST RATE _j
RIGHT HAND SCALE)
1.5
....-•[""""
1.0
.5
910
/\ ##
900
3 1/
>•
1
'.
2
!
3
i
4
5
6
Y E A R S
7
8
9
10
11
12
o
DIVISION OF OPERATING STATISTICS
FEDERAL HOME LOAN BANK ADMINISTRATION
The above chart shows the redemption value of Series " G " savings bonds
when they are not held to maturity. The dotted line at the bottom indicates
the net interest yield based on the period of time the bond is held. A bond
purchased for $1,000 and kept for only 4 years would have a redemption value of
$947'and wrould yield a net return of 1.2 percent for that period.
the full amount of the subscriptions. The period
in which books are kept open has varied from a few
days to several weeks.
"Victory 2K's"—Treasury bond of 1963-1968—
which played an important part in the victory-fund
drive during December, are an excellent example of
tap bonds. They are designed specifically for the
investment of long-term money such as that accumulated by life insurance companies, trusts, and
similar funds of a rather permanent character.
These bonds are generally long-term issues with maturities approximating 25 years, with a yield of 2%.
percent. They are traded in the open market b u t
may not be purchased by commercial banks for a
period of approximately 10 years from the date of
issue.
Treasury tax-savings notes are another form of tap
issue with a considerably shorter maturity. They
are adaptable for two purposes, (1) for tax reserves
and (2) for the temporary or short-term investment
of cash balances which are idle. These notes are
dated the first day of the month in which purchased
and mature in 3 years. They yield an average rate
of about 1.07 percent if held until maturity, with a
somewhat smaller yield if redeemed for cash or used
for tax purposes at an earlier date.
POLICY CONSIDERATIONS
The increasingly liquid position of many savings
and loan associations must inevitably be reflected in
the earning capacity of these institutions. Many
January 1943
managers and boards of directors will be faced with
a choice of reducing dividend rates and/or refusing
additional amounts of new private share capital.
The imminence of this decision will vary greatly for
individual institutions.
Management policy in
deciding between long- and short-term securities as
investment outlets for excess cash funds will play an
important role. For some institutions there will
develop a "break-even" point beyond which the
continued investment in relatively low-yield securities
will necessitate downward dividend adjustments if
reserve and undivided-profits positions are to be
maintained.
Financing the tremendous expenditures involved
in total war makes it imperative that all surplus
money of individuals and business enterprise be
placed at the disposal of the Treasury. From the
point of view of raising the cash required to meet
these obligations, it makes little difference which of
the various issues are chosen for investment purposes. Savings and loan associations, therefore, can
carry out their role in the financing program with
maximum service to their country and themselves,
first, by analyzing the character and permanency
of their excess funds, and second, by choosing whichever of the securities are best adapted to their own
needs.
Record Orders Deplete Lumber Stocks
•
T H E production of lumber fell approximately
6 billion board feet short of 1942 requirements,
according to estimates by the U. S. Department of
Commerce based on preliminary 9-month data.
The usual seasonal reduction in demand cannot be
anticipated this year, and while the third-quarter
production was the highest quarterly volume of the
year it was still 6 percent less than new orders and
4 percent below the comparable period last year.
Problems of labor, log supplies, and equipment
preclude meeting production requirements.
Imports and withdrawals from available stocks
were expected to increase the total lumber supplied
during 1942 to 37.7 billion feet, This was still 300
million feet short of the record demand.
Action by the Government to balance lumber
shipments with requirements has been instituted
through controlled use of lumber, stabilization of
employment in the industry, and priority assistance
for operating equipment and maintenance.
103
«
«
«
FROM THE MONTH'S NEWS
NEW FRONTIERS: " N o t only has the
war loaded t h e business machine to capacity, b u t it has opened new frontiers for
t h e future. I t is clear t h a t making the
world a b e t t e r place for living is all the
frontier t h a t could be asked. Making it
safe for democratic living is the first job;
t h e n comes t h e t a s k of m a k i n g tangible
the benefits of t h e democratic way of life."
Emerson Goble, Architectural
Record, November 1942.
PRODUCTION FOR PEACE: " W e need
to rebuild America—urban redevelopm e n t projects, rural rehabilitation, lowcost housing, express highways, terminal
facilities, electrification, flood control, reforestation . . . We h a v e seen how it is
possible to mobilize t h e productive capacities of t h e country for war. We can
also mobilize t h e m for peace."
Alvin H. Hansen, After the
War—Full Employment, National Resources Planning
Board.
NEW PROSPECTS: "Since t h e curtailment
of recreational expenditures, automobile
sales, a n d similar luxury commodities,
savings will be deflected m u c h more into
war bonds, land a n d homes. For the
first time in years, most people are seeing
their homes as havens r a t h e r t h a n terminals for domestic traffic."
Percy Wilson, National Real
Estate Journal,
November
1942.
FUTURE CREDIT: " P r i v a t e debt wilf be
in a very healthy s t a t e a t t h e end of the
war, institutional funds will be plentiful,
a n d t h u s credit will be a m p l y available
for a n y needed volume of residential
construction; war savings in t h e hands
of individuals can be converted into
housing investments."
»
»
»
Looking ahead
"If the architects, the manufacturers of construction materials, and
the professional builders apply the lessons they are learning now, I
look forward to a resurgence of the instinct of home ownership,
which will lead us into a large and sustained era of building. Savings
and loan associations—and similar institutions—will be depended on
for creative leadership in building a new and a better roof over
America
"Fortunately for civilization, not all of the processes of war represent waste. . . . A by-product as we rally our material and human
forces together is the development of mutual cooperative effort.
Private industry and government and community interests are
working together on a common job."
John B. Blandford, Jr., American Savings and Loan
News, December, 1942.
Post-war planning
" Post-war demands to put men and materials to work rebuilding
our cities must not find us seeking postponement because we are not
ready. To prepare for that day, state laws defining city powers need
to be rewritten; out-of-date and even vicious municipal buildingcodes repealed or modified; and the construction industry and
building labor unions must clear off the barnacles and get ready to
do a real job."
Chester C. Davis, Real Estate Record and Builders
Guide, Nov. 28, 1942.
RENTS
FOR WAGE EARNERS FN 3 4 LARGE CITIES
SEPTEMBER *939 « IOO
Thomas S. Holden, Savings
Bank Journal, October 1942.
WAR S A V I N G : " W e m u s t save not
merely for saving's sake; we m u s t save,
above all, so t h a t we cannot spend. By
abstaining from spending, we free labor
a n d material for t h e purpose which has
prior claim over all o t h e r s . "
David W. Smith, Chairman,
British Building Societies Association, Building Societies
Year Book, 1942.
DEPRECIATION: " T h e mortgage o A h e
future should provide b e t t e r for maintenance of t h e home. . . . Provisions in
the covenant should enable t h e owner to
borrow for repairs w i t h o u t a new
mortgage.
Arthur G. Erdmann, Insured
Mortgage Portfolio, Fourth
Quarter. 1942.
104
The effect of rent control regulations upon rentals in 34 large cities throughout the country is graphically
illustrated by the chart above. Contributing largely to the downward trend are rentals in four citiesMobile and Birmingham, Alabama; Seattle, Washington; and Norfolk, Virginia—for which rent indexes
dropped from 9 to 15 points within 5 months of the effective date of rent control. It will be noted that
while rentals for the 25 cities have boen set back to just below the level prevailing at the time of our entry
into the War, the index still is well above that prevailing in September 1939.
Office of Price Administration.
Federal Home Loan Bank Review
MONTHLY REPORTS FOR ASSOCIATION
DIRECTORS
Maximum use of the varied business backgrounds of directors can only
be made if they are given adequate information about important developments in association operations, A survey of FHLBA supervisory
files has yielded practical suggestions for analysis and presentation.
•
TO make the contribution of the directors of an
association most effective, it is imperative that
they have complete information about all phases of
its operations. Only in this way can the varied
backgrounds of these business, professional, and
civic leaders be used to best advantage in forming the
policies necessary to meet operating problems. It is,
of course, a responsibility of the board of directors
to see that it has adequate material with which to
analyze the association's present position and to study
trends. On the other hand, many managing officers—
aware of the importance of having a well-informed
directorate—are taking the initiative in improving
the reports for their monthly board meetings.
Supervisory files of the Federal Home Loan Bank
Administration contain a number of sample reports
used by member associations, and this article highlights the outstanding features of several of these
summaries.
BALANCE-SHEET ANALYSIS
Although there is wide variation in the type of
statistical information compiled by each institution,
the basic data in every report studied includes a
comprehensive analysis of balance-sheet trends.
Condensed statements of condition for the latest
available date, for the previous month, and for the
corresponding point in the preceding year are
indispensible for this purpose.
Percentage summaries similar to those included
in examination reports provide a convenient means
of measuring the changes in balance-sheet accounts
from one period to the next. They demonstrate, for
example, whether a dollar increase in the reserve
position of an institution does result in a relative
strengthening of the reserve ratio, or whether reserve
accumulations have failed to keep pace with the
gains shown in total assets.
In some cases, where special problems are present
it may be advisable to include a detailed breakdown
for certain asset and liability items. A complete
January 1943
503086—43-
summary of the real-estate-owned account, for
example, would provide valuable additional data for
directors of institutions in which this is still an
important factor.
T H E STORY OF MONTHLY OPERATIONS
Basic in the presentation of this story, of course,
is a statement of operations during the month, and a
cumulative report of operations since the last complete accounting period. This phase of the monthly
report to directors itemizes the gross operating income received, takes into consideration the operating
expenses incurred, and arrives ultimately at the net
income for the period.
The monthly statement of operations constitutes
the "acid test" for the soundness of budgets prepared
in advance. Some of the reports studied present
the actual expenditures and budget estimates in two
parallel columns and in this manner all variations
from expected revenues and expenses are immediately evident. Comparisons such as this make it
possible to bring operations into line or to adjust
budget allocations to make the most efficient use of
all available funds.
The inherent value of this information lies in its
relation to dividend and reserve policies. By estimating the required reserve allocations and the
potential dividend requirements, directors are able
at a glance to follow these trends throughout the
period. From this they can determine whether net
income is sufficient to cover the dividends contemplated and at the same time set aside more than
just the minimum legal reserves.
OPERATING STATISTICS
Next in importance is the report of the day-to-day
operations during the month—the number and
amount of new mortgage loans made, the acquisition
or sale of real estate by the association, the investment and repurchase of private share capital, the
securing or repayment of borrowed money, the purI05
-2
chase of Government bonds and other significant
transactions.
In summarizing mortgage-loan operations for the
month, these transactions may be conveniently
broken down into an analysis of the new loans made,
delinquencies, and loans paid-in-full. As in the case
of all statistics of this type, it is helpful to have a
comparison with the activity of the preceding month
and in the same month of the previous year. Loans
closed can be tabulated by the purpose for which
the advances were made. One institution suggests
analyzing mortgages which are delinquent in taxes
as well as those which are behind in loan payments.
Analysis of the loans paid-in-full in the light of all
information available to the management will give
additional clues to the number of mortgages lost
through refinancing by other institutions.
Statistics on savings accounts may be somewhat
simplified, but are nonetheless equally important.
A schedule showing the status of share accounts at
the beginning of the period, the volume of new
investments and repurchases, and the balance at the
end of the month are basic. From this it is possible
to figure the repurchase ratio and estimate cash
needs for the coming period. A similar schedule
showing the number of new accounts opened, of old
accounts closed, and the number on the books at
the end of the period is easily obtainable.
COMPARISON W I T H INDUSTRY AVERAGES
Thus far, the reports discussed have dealt solely
with the operations of an individual institution, but
directors logically want also to know how their
organization compares with the record of similar
institutions in their own industry and of others with
which they compete in their local mortgage and
savings market.
An over-all comparison with the asset trends and
operating statistics of all member savings and loan
associations may be made at least once a year
through the use of the consolidated statements published in the E E V I E W . Several of the Federal Home
Loan Banks publish comprehensive information on
association operations broken down by size of institution.
Through this means, it is possible to measure the
efficiency of the operations of an individual association, for example, by comparing its ratio of operating expenses to gross operating income with that for
a comparable group of institutions. Growth of the
individual balance-sheet accounts can be measured
in the same manner.
106
Data on operations—loans made, capital trends,
and the like—are usually available from several
sources. The regular tables in the R E V I E W provide
the national, regional, and in some cases, State information on such subjects as mortgage loans and
mortgage recordings.
The Federal Home Loan Banks, State savings and
loan leagues, and several county and city groups also
provide localized information about current operations which may be useful in preparing reports for
directors.
The important thing, however, is not solely to
find out whether a particular institution is operating
behind, ahead of, or just equal to the pace set by other
associations, but rather to be able to evaluate the
operations of that institution and to highlight any
unfavorable trends which may be developing.
SPECIAL ANALYSES
Nearly all of the reports described to this point
have been roughly comparable in the scope of their
information. But in the matter of special studies,
the business acumen of the managing officer is
demonstrated to its best advantage.
The article in this issue analyzing the mortgageloan portfolio of an individual institution (see page
109) is an example of the special studies which can
be made and used by boards of directors and managing officers in formulating operating policies. Private-share-capital accounts might be subjected to
similar scrutiny in digging out the most important
sources of new funds, in framing advertising policies,
and in anticipating the relative stability of present
investments. Once completed, for example, a geographical analysis of loans and investments would
be a relatively simple project to keep up to date.
Now that the new business of many institutions is
at low ebb, it is logical that such studies can be made
with a minimum of effort for use in post-war planning
and a resumption of active lending at the end of the
emergency.
FORMAT IMPORTANT
No small amount of the success of the reports
which were the basis for this article was derived from
the attractive and convenient form in which they
were assembled. One institution has a loose-leaf
flexible leather binder for each director and all
schedules for the current accounting period are
assembled in this folder with data for the most
recent month on top. The book is indexed for the
(Continued on p. 108)
Federal Home Loan Bank Review
WAR AND BRITISH BUILDING SOCIETIES
Trends noted 2 and 3 years ago in balance sheets of British Building
Societies now are manifesting themselves as current problems for
American associations. This article, therefore, brings up to date
previous material published by the REVIEW on the experience of
England's home-mortgage-lending industry.
•
W H I L E the condition of British Building
Societies at the end of 1941 was less favorable,
in several respects, than at the close of 1940, an
analysis of the consolidated annual report of the
institutions, published in the Building Societies Year
Book jov 1942, shows that they have been able to
adapt themselves to wartime conditions with remarkable success. The second full year of the War
seems merely to have emphasized the basic strength
of home-financing institutions even under the most
adverse conditions.
ASSETS RELATIVELY STABLE
The consolidated statement confirms the trends
outlined in an earlier issue of the REVTEW 1 on the
basis of individual reports from a number of representative societies. Total assets of the 947 institutions still were only about 3 percent below the alltime high level of $3,092,624,000 reached at the close
of 1939, and are greater than at the end of the last
full year of peacetime operation. In 1941 the
decrease in assets amounted to only 0.9 percent as
against a drop of 2.2 percent recorded in 1940.
The number of share and deposit accounts again
declined only slightly, so that institutions still
retain approximately 95 percent of their pre-war
depositors and shareholders. Liabilities to these
two groups have shown a remarkably small decrease.
Shareholder liabilities were at a high of $2,238,904,000 at the end of 1939, and during the 2 succeeding
years decreased 1.2 and 0.6 percent, respectively.
The 1941 total of $2,194,000,000 is only slightly
below the comparable figure for 1938.
As might have been expected, liabilities to depositors dropped more rapidly than shareholder commitments.
The 1941 decline of 2.4 percent was,
however, far less than the 6.4-percent decline
experienced in 1940.
War conditions do not seem to have stopped new
investments in shares. New share subscriptions and
» See "British Building Societies Carry On," FHLB REVIEW, April 1942,
p. 220.
January 1943
deposits have declined, but the 1941 figure of nearly
$181,000,000 was about 46 percent of the 1939 total
received from these sources. In view of the percentage of British income now being syphoned off in
taxes and war-bond purchases, it is interesting that
private investments in home-financing institutions
have held up so well.
The continued influx of new money has raised an
investment problem for building societies. Advances
on mortgages last year were only about one-tenth of
the 1939 figure, and that year was by no means a peak
season in building society lending activity. Evensuch mortgages as were made in 1941 were largely
revisions of existing contracts, either to permit the
repair of damaged property or to extend more favorable terms to certain individuals.
N E W INVESTMENTS AND GREATER LIQUIDITY
To compensate for the elimination of home mortgages as an investment outlet has been a major
MORTGAGE LENDING ACTIVITY OF
BRITISH BUILDING SOCIETIES
MILLIONS
OF DOLLARS
1931-1941
600
• 111
.Tiftr
•-1111111
1
\
\
\
-1
\
\
1931
1932
1933
1934
1935
1936
1937
1938
1939
1940
1941
Note: Conversion rote $4 to / /
New mortgage loans made by British Building Societies during the year ending
December 31, 1941, were 93 percent below the record home-mortgage-lending
peak of $561,240,000 reached in the year 1936. The 1941 total is below that of even
the worst depression years of the twenties. Only in 1913 was a smaller volume
of loans registered. Figures for the War years, 1914-1918, are not available.
107
Trends in selected items from the balance
sheets and operatir^ statements of
British Building Societies
[Amounts shown in thousands of dollars ']
Percent
change
Item
1941
1940
1939
19401941
Share s u b s c r i p t i o n s a n d d e p o s i t s . $180.953
39,801
A d v a n c e s on mortgages
13, 795
M a n a g e m e n t expense . .
19391940
$412, 867 - 2 7 . 0
378,194 - 5 3 . 1
15, 938 + 0 . 9
-39.8
-77.6
-14.2
2, 996, 478 3, 024, 970 3, 092, 624 - 0 . 9
2, 575. 670 2,711,132 2, 822,397 - 5 , 0
T o t a l m o r t g a g e assets
312,988
216,975
Total investments
193, 423 + 4 4 . 3
2,194, 904 2, 208,905 2, 236, 483 - 0 . 6
Liabilities to shareholders
555, 301
-2.4
Liabilities to depositors
569, 019
607,849
B a l a n c e of profits a n d reserves - - 193, 928
182, 218
175, 553 + 0 . 9
-2.2
-3.9
+ 12.2
— 1.2
-6.4
-1-0.8
1
$248, 564
84,870
13, 676
Conversion figured on the basis of $4.00 to £ 1 .
problem of British institutions. The new emphasis
on such types of investments as war bonds and deposits in the Post Office Savings Bank is reflected in
the 44.3-percent increase in investments other than
mortgages from 1940 to 1941. This figure had shown
a rise of almost 13 percent during the previous year.
"Other assets" (including cash) increased some 11.3
percent during the year to more than $100,000,000, a
figure which reflects substantial gains in the liquidity
position of these institutions.
LOWER EARNINGS AND DIVIDEND R A T E S
Liquidity has been gained at the price of lower
earnings, and dividend payments have been reduced
almost universally to a tax-free rate of 2% percent,
with 2 percent a general rate for deposits.
Lower rates are a result not only of the lesser
return from new investments and of concessions
made to many borrowers on interest payments, but
also of a slight increase in management costs. In
contrast to 1940 when management costs of the
various institutions were reduced 14 percent, costs
during 1941 showed an increase of nearly 1 percent
for all institutions. Costs still are well below the
1939 figure, but it is evident that economies are
insufficient to offset the reduction of gross income.
Monthly Reports
(Continued from p. 106)
Board's meeting agenda, schedules, budget material,
statistics, charts, and miscellaneous. The addition
of simple charts included in the directors' report
shows graphically the significant trends in progress
108
within that association. Drawn with pen and ink,
it is an easy matter to keep these charts up to date
for each meeting of the Board.
Another association mantains manila folders for
each director, and sufficient copies of material to be
discussed are obtained to provide each individual
with complete information. These folders are
usually distributed a day or two in advance of the
Board meeting so that each director may have an
opportunity to familiarize himself with the new data.
OTHER SOURCES OF BACKGROUND MATERIAL
The comprehensive monthly reports which have
been discussed herein are only one indication of the
increasing effort on the part of managing officers to
provide adequate information for their directors.
Many institutions have subscribed for personal copies
of the R E V I E W and other important published material to be sent to the members of their Board.
Attendance of directors at trade organization meetings has been encouraged, and special programs have
been arranged for their interest. The responsibilities of an association director are manifold and the
contribution of these men to the successful operation
of an institution can be, and usually is, of major
importance. The executive officer who is backed by
the considered opinions of an informed directorate
has a distinct advantage in coping with the complexities of present-day operations.
New W a r Housing Manual Is Issued
•
"WAR Housing Manual" a new compilation of
information issued by the Housing Branch of the
Construction Bureau of the W F B , is available for
free distribution at all field offices of WPB and F H A
and at many financial institutions .
Specifically designed for the use of persons or
agencies sponsoring, financing, a instructing, or furnishing materials for housing projects, the manual
contains information of both a technical and general
nature.
A new^ "Housing Critical List," which establishes
maximum materials allowances for war-housing construction; an amended "Housing Utility Allowances"
list; and a digest of procedures and requirements
covering the filing and processing of applications are
among material included. Information as to priorities assistance needed for certain types of projects
also is given.
Federal Home Loan Bank Review
PORTFOLIO ANALYSIS—A TYPICAL EXAMPLE
Study of mortgage
portfolios
tions with a valuable
as a guide for future activity.
completed
Waterbury,
by the
can provide
savings and lean
test of the soundness of past operations
The survey of mortgage loans
First Federal
Connecticut,
Savings
is an interesting
and
Lean
example
associaas well
recently
Association
of
of
constructive
self-analysis.
•
OPERATIONS of savings and loan associations
will be subject to many changes during the War.
Fewer loan outlets; changing earning patterns due
to mortgage prepayments and new types of investments; mortgage moratoria for borrowers in the
armed forces—these are a few of the factors with
which lenders must deal.
The extent to which these elements will affect a
given institution is dependent, to a major degree, on
the condition of its primary earning asset—home
mortgages. Detailed analysis of the loan portfolio
can provide management with information of immediate value in planning to meet war conditions, as
well as with the basis for a continuing " inventory"
of mortgage holdings.
It was with these and other considerations in mind
that the First Federal Savings and Loan Association
of Waterbury, Connecticut, recently undertook an
analysis of its mortgage loans. While many of the
methods employed can suitably be adopted by other
institutions, the study probably should be considered
as suggestive of a general thesis rather than as an
outline for procedure. Two factors have dictated
the use of a relatively simple method of approach—
(1) the " y o u t h " of the portfolio and (2) the general
similarity of the term of the loans.
The Waterbury association was organized in 1935,
but lending operations did not gather any considerable momentum until the beginning of 1938. About
63 percent of the 875 loans included in the analysis
were 2 years old or less on December 31, 1941—
the cut-off date—and more than 40 percent were
made during the year 1941.
bracket 20-39. This highlights the potential effects
of the draft on the association and suggests that the
institution must keep itself posted on matters relating to soldiers' and sailors' moratoria provisions.
It is interesting that up to the end of 1942 only
four requests had been received by the institution for
adjustments in the amortization schedules of borrowers called into the armed services. The married
status of most mortgagors taken in conjunction with
the fact that many are employed in vital war industries, should minimize the impact of the draft upon
the mortgage accounts of the Waterbury association.
Of course, such a breakdown is of great value in
normal operating practice. If the age distribution
of existing borrowers is known, it is possible to reach
AGE OF BORROWERS
PERCENTAGE DISTRIBUTION
1935 TO 1941
_ Total
60 and ove- - * 2 %
Borrowers
100 %
3 0 - 3 9 yrs.
^ 40.0%, S
A G E OF BORROWER
Every association is vitally concerned with the
effect of the draft upon its borrowers. One of the
most interesting tables prepared indicates the percentage of borrowers falling in various age groups.
As the accompanying chart shows, almost 55 percent
of the borrowers of the institution fall in the age
January 1943
DIVISION OF OPERATING STATISTICS
FEDERAL HOME LOAN BANK ADMINISTRATION
As the chart above demonstrates, more than half of the borrowers of the First
Federal Savings and Loan Association of Waterbury, Connecticut, fall in the
draft-age group. No information is available on the age of nearly 10 percent of al I
borrowers, but it may be supposed that the distribution into age groups "would
parallel that of the remaining groups of borrowers.
109
more valid conclusions as to the advisability of accepting future loan applications from older borrowers.
It is also possible to develop general standards for
relating loan maturity to the age of the borrower
and to determine the extent to which borrowers
should be required to protect the institution by
taking out life insurance.
vided by the 1940 Census of Housing. For many
cities it will be possible to make a comparison between the property valuations, loan-value ratios,
interest rates, etc., prevailing within certain areas, as
reported by the Census, and loans made by the
institution in these areas.
EMPLOYMENT OF BORROWER
The most comprehensive analysis of loans undertaken was based on a table in which all loans were
grouped by the year made, and by the balance of the
loan outstanding on the cut-off date. The pie
charts on this page compare the breakdown of loans
from 1935 through 1940 with 1941 lending data.
While 1935-1940 loans are grouped by balance outstanding on the cut-off date, 1941 loans are classified
according to the original loan amount. Under
ordinary circumstances it would not be advisable
to compare two groups of loans classified on a different basis. Because of the youth of the W T aterbury
portfolio (63 percent of the loans were made either
during 1940 or 1941) and because of the long amortization period of most loans, few of the loans had
been paid down enough to affect their classification
in the chart.
It will be seen that, of the 1935 to 1940 loans
outstanding at the end of 1941, some 69 percent
represented loan balances between $2,000 and $3,999,
with loans of between $2,000 and $2,999 accounting
for 38 percent of this entire total. During 1941,
however, only 17 percent of loans fell in the $2,000
to $2,999 classification. The heaviest group—65
percent— fell in the $3,000 to $4,999 bracket.
The fact that the average loan made in 1941 was
substantially larger than the average for the previous
Another table of both immediate and long-range
interest is that dealing with the employment of borrowers. Many industrial communities are, or have
been, largely one-industry or one-company cities.
It was decided by the Waterbury institution that
it would be well to discover whether or not the fortunes of the association were closely identified with
the operations of any one industry or company.
The survey showed that the association's borrowers
were well distributed throughout the industrial and
business structure of the community. For example,
the largest single group of borrowers—395 in number—were working in local companies where less
than 7 other borrowers of the institution were employed. In addition, 99 borrowers were selfemployed.
There were 8 companies for which less than 25
borrowers are listed. In three instances, companies
employed more than 50 borrowers and the largest
grouping of mortgagors in a single company was 99
borrowers. While it is not possible, for obvious
reasons, to identify individual companies in which
borrowers were employed, it was found that a considerable number of mortgagors were employed in
industries essential to the war effort.
ANALYSIS BY LOAN AMOUNT
LOCATION OF PROPERTY
PERCENTAGE DISTRIBUTION OF LOANS BY AMOUNTS
Loans also were classified by the location of the
property in order to determine whether or not the
property risks being assumed by the institution were
warranted by the trend of real-estate conditions in
the area. For this classification, loans were grouped
first as to whether they were within or outside the
city of Waterbury. Some 549 loans were found to
involve properties within the city limits. These
were, in turn, broken down by areas and it is intended within the next few years to carry the study
to its logical conclusion—a breakdown by streets and
blocks.
In order to benefit fully from such a study, it is
suggested that institutions relate their findings to
some such basic inventory of property as that pro-
no
ALL LOANS-1935 TO 1940
LOAN BALANCE DECEMBER 31, 1941
NEW LOANS MADE IN 1941
|
ORIGINAL LOAN AMOUNT
DIVISION OF OPERATING STATISTICS
FEDERAL HOME LOAN BANK ADMINISTRATION
The shift in the size of mortgage loans made by the First Federal Savings and
Loan Association of Waterbury, Connecticut, is demonstrated by the above
chart. The fact that all loans made up to the end of 1940 are classified by loanbalance outstanding and 1941 loans are grouped on the basis of the original loan
amount may have affected the classification to some extent.
Federal Home Loan Bank Review
5 years has led the management to analyze the
possible causes for the increase. Consideration was
given to several factors such as higher construction
costs, the type of property being financed, rising
property valuations, and the liberality of loan terms.
Loans made during 1942 were likewise studied in
the light of this information. With such a background the institution is now better able to check
any tendency to "ease u p " on valuations and loan
amounts which operations in a competitive market
might possibly bring about.
Summary of loans from 1935 through 1940
[As of December 3 1 , 1941]
Loan balance
Under 1000
1000-1999
2000-2999
3000-3999
4000-4999
5000-5999_
6000 & over
N u m b e r of
loans
Percent of Percent of
loan
original
balance to
loan to
appraisal
appraisal
20
66
194
157
42
18
10
57.
63.
68.
72.
72.
70.
72.
0
0
8
2
4
2
8
17.5
40. 0
57. 8
64. 3
65. 7
60. 2
65. 6
LOAN-TO-VALUE RATIOS
The study of loan-to-value ratios also revealed
a number of interesting facts. It was found, for
example, that 1941 lending had varied from previous
experience not only in the larger size of the average
loan, but in a tendency toward higher loan-to-value
ratios for mortgages in the $4,000 to $4,999 and
the $5,000 to $5,999 brackets. For 1941, the
average loan-to-value ratio for these groups of loans
was 75 percent. In the previous 6 years the ratio
of the loan to the property value for these same loan
classifications had averaged 72 and 70 percent,
respectively.
There was apparent, also, a tendency toward
lower loan-to-value ratios for successively smaller
loan amounts, a trend which had been less pronounced
in previous years. For example, the average loan-tovalue ratio of 1941 loans in the less-than-$1000
group was only 28 percent while in the preceding
years this ratio had averaged just under 60 percent.
For the next larger amount group—$1,000 to
$1,999—the 1941 lending ratio was 40 percent while
the average for the 6 prior years was 63 percent.
This wide divergence between current and past
experience, for smaller loans, may be due to a number
of factors. A breakdown of loans by the purpose
for which they were made might explain at least a
part of the difference. And the basis for the classification of loans (see comments above) would tend
to influence the picture of 1935-1940 lending. Since
relatively few loans fall in these groups, the average
loan-to-value ratio is affected to a greater degree
by variations in the ratios of individual loans.
AMORTIZATION R E D U C E S R I S K S
The comparison between the loan-to-value ratio
of original loans and that represented by loan balances outstanding on December 31, 1941, also was
January 1943
informative. As the accompanying table demonstrates, the risk of the institution in carrying its
mortgage loans has been reduced substantially by
amortization, even over the short life of the majority
of these loans.
The effects of amortization have been most pronounced in the case of the three classes of loans of
less than $3,000. At the time the study was made,
the average loan-to-value ratio of loans with an outstanding balance of $1,000 or less was 17 percent,
having declined from 57 percent. The average ratio
of loans of between $1,000 and $2,000 had dropped
from 63 percent to 40 percent. Even among the
larger loans, loan-to-value ratios had declined substantially—from 70 percent to just over 60 percent
in one instance.
SOME COMMENTS
It has been suggested above that some of the
methods employed in the Waterbury study might be
varied or expanded by institutions in line with their
individual needs. In selecting a basis for classifying
loans, institutions may decide to group loans by the
original amount advanced as well as by the loan
balance outstanding on the cut-off date.
The use of the outstanding balance has the advantage of giving an accurate picture of the association's
holdings on the cut-off date, and of providing a basis
for estimating earnings more accurately. The classification based upon original loan amount has two
definite, advantages. First, where loans are grouped
on the basis of the amount advanced initially, it is
possible to use the study more effectively in comparing past lending experience with current loan trends.
Second, the institution would find year-to-year use for
such a breakdown, since current loan figures could be
incorporated into the summary table and an up-todate review of the lending history of the institution
could thus be maintained.
Election of Directors and Designation
of Chairmen and Vice Chairmen of
the Federal Home Loan Banks
•
A N N O U N C E M E N T has been made recently by
the Federal Home Loan Bank Administration of
the election of Classes A, B, and C directors and
directors-at-large to serve 2-year terms beginning
January 1, 1943; and the designation of chairmen
and vice chairmen to serve during the calendar year
1943 or until their successors are designated and
qualified. Appointment of 10 public interest
directors wrs announced in the December REVIEW.
D I S T R I C T NO. 1 — F E D E R A L H O M E LOAN B A N K O F
BOSTON
Chairman: Bernard J. Rothwell, Bay State Milling Company,
Boston, Massachusetts (reappointed).
Vice Chairman: E d w a r d H. Weeks, Old Colony Co-Operative
Bank, Providence, R h o d e Island (reappointed).
Class A Director: R a y m o n d P . Harold, Worcester Coo p e r a t i v e Federal Savings a n d Loan Association, Worcester, Massachusetts (reelected).
Class B Director: George B. Lord, P o r t s m o u t h Savings Bank,
P o r t s m o u t h , New H a m p s h i r e (reelected).
Class C Director: Walter P. Sclrwabe, Enfield Federal Savings
a n d Loan Association, Thompson ville, Connecticut
(reelected).
Director-at-Large:
Milton A. Barrett, Fidelity Co-operative
Bank, Fitchburg, Massachusetts (reelected).
D I S T R I C T NO. 2 — F E D E R A L H O M E LOAN B A N K O F
NEW YORK
Chairman: George M a c D o n a l d , Manufacturers' T r u s t Comp a n y , New York, New York (reappointed).
Vice Chairman: Francis V. D . Lloyd, Central Bergen Savings and Loan Association, Ridgefield Park, New Jersey
(reappointed).
Class A Director: H e r m a n L. Reis, West Side Federal Savings
a n d Loan Association, New York, New York.
Class B Director: Roy H. Bassett, C a n t o n Savings a n d Loan
Association, Canton, New York (reelected).
Class C Director: Joseph A. O'Brien, Fidelity M u t u a l Savings
a n d Loan Association, Camden, New Jersey.
Director-at-Large: J. Alston Adams, Westfield Federal Savings
a n d Loan Association, Westfield, New Jersey (reelected).
D I S T R I C T NO. 3 — F E D E R A L H O M E LOAN BANK OF
PITTSBURGH
Chairman: E r n e s t T. Trigg, National Paint, Varnish and
Lacquer Association, Philadelphia, Pennsylvania (reappointed).
Vice Chairman: Charles S. Tippetts, T h e Mercersburg
Academy, Mercersburg, Pennsylvania (reappointed).
Class A Director: Fred C. Klussmann, Revenue Building and
Loan Association, P i t t s b u r g h (Millvale Borough), Pennsylvania (reelected).
112
Class B Director: William Reinhardt, T h e Provident Building
and Loan Association, Philadelphia, Pennsylvania (reelected) .
Class C Director: J a m e s W. Turtle, Stephen Girard Savings,
Loan and Building Association, Philadelphia, Pennsylvania.
Director-at-Large: C. E. Brown, First Federal Savings a n d
Loan Association; Moundsville, West Virginia.
D I S T R I C T NO. 4 — F E D E R A L H O M E LOAN BANK OF
WINSTON-SALEM
Chairman: Horace S. H a w o r t h , Roberson, H a w o r t h , a n d
Reese (law firm), High Point, N o r t h Carolina (reappointed) .
Vice Chairman: E d w a r d C. Baltz, Perpetual Building Association, Washington, D. C. (reappointed).
Class A Director: E d w a r d C. Baltz (reelected).
Class B Director: J. F. Stevens, G a t e City Building and Loan
Association, Greensboro, N o r t h Carolina (reelected).
Class C Director: W. Brown Howell, First Federal Savings
and Loan Association, P a n a m a City, Florida.
Director-at-Large: F r a n k Muller, Jr., Liberty Federal Savings
and Loan Association, Baltimore, Maryland.
D I S T R I C T NO. 5 — F E D E R A L H O M E L O A N B A N K O F
CINCINNATI
Chairman: Richard Priest Dietzman, a t t o r n e y , Louisville,
K e n t u c k y (reappointed).
Vice Chairman: W. Megrue Brock, T h e Gem City Building
and Loan Association, D a y t o n , Ohio (reappointed).
Class A Director: William A. McMillen, T h e Cuyahoga
Savings and Loan Company, Cleveland, Ohio (reelected).
Class B Director: Charles J. Haase, H o m e Federal Savings
a n d Loan Association, Memphis, Tennessee (reelected).
Class C Director: R. A. Stevens, D y e r C o u n t y Federal Savings
a n d Loan Association, Dyersburg, Tennessee (reelected).
Director-at-Large: W. B. Furgerson, P o r t l a n d Federal Savings
a n d Loan Association, Louisville, K e n t u c k y (reelected).
D I S T R I C T NO. 6 — F E D E R A L H O M E LOAN B A N K O F
INDIANAPOLIS
Chairman: H e r m a n B. Wells, I n d i a n a University, Bloomington, Indiana (reappointed).
Vice Chairman: Fermor S. Cannon, Railroadmen's Federal
Savings and Loan Association, Indianapolis, I n d i a n a
(reappointed).
Class A Director: Walter Gehrke, First Federal Savings a n d
Loan Association, Detroit, Michigan.
Class B Director: Walter H. Dreier, Union Federal Savings
a n d Loan Association, Evansville, I n d i a n a (reelected).
Class C Director: G r a n t H . Longenecker, Peoples Savings
Association, Benton Harbor, Michigan (reelected).
Director-at-Large: Fermor S. Cannon (reelected).
D I S T R I C T NO. 7 — F E D E R A L H O M E L O A N B A N K O F
CHICAGO
Chairman: Charles E. Broughton, T h e Sheboygan
Sheboygan, Wisconsin (reappointed).
(Continued on p. 128)
Press,
Federal Home Loan Bank Review
HONOR ROLL OF WAR BOND SALES
The Honor Roll is shorter this
month now that it is based on warbond sales equal to at least 15 percent
of the assets of associations listed.
However, whereas last month 261 institutions (those
marked by one or more asterisks) attained that goal,
November sales brought 335 institutions to the 15percent minimum.
"Tops in Volume" now shows cumulative sales of
at least a million dollars for everyone, with seven institutions as against two last month in the twomillion-dollar class. Number 4 place is occupied
this time by a newcomer to the box, the Bloomfield
Savings Institution of Bloomfield, New Jersey, which
is one of three savings-bank members on this list.
Top honors for monthly sales volume again go to
the First Federal Savings and Loan Association of
Chicago. On the basis of the first million-dollar
war-bond month for any institution of its kind, this
association went into first place; 2 months ago it was
sixteenth on the list. The Citizens Federal Savings
and Loan Association of Dayton, Ohio, was only
slightly behind this pace, however, reporting sales
of over $900,000 during November.
The Acme Savings and Loan Association of Milwaukee, after a month's absence from "Tops in
Volume," came back with the outstanding record of
one month's sales almost equal to the entire assets
of the association.
Another change in designations is necessary, both
because of the new minimum standard and because
two associations report cumulative sales of more than
double their total assets. One asterisk now denotes
sales of 20 to 25 percent of assets, with an additional
star for each 5 percent over that amount. Italics
indicate sales equal to 100 percent of association
assets, capital letters signify 200-percent sales, with
one asterisk for each additional 5 percent in both of
these categories.
NO. 1-BOSTON
Branford Federal Savings and Loan Association, Branford, Conn.
Bristol Federal Savings and Loan Association, Bristol, Conn.
•Telephone Workers Building and Loan Association, Providence, R. I.
***Windsor Federal Savings and Loan Association, Windsor, Vt.
NO. 2 - N E W YORK
****Amsterdam Federal Savings and Loan Association, Amsterdam, N. Y.
Black Rock-Riverside Savings and Loan Association, Buffalo, N. Y.
**Broad Avenue Building and Loan Association, Palisades Park, N. J.
Bronx Federal Savings and Loan Association, Bronx, N. Y.
Caldwell Building and Loan Association, Caldwell, N. J.
January 1943
*****Center Savings and Loan Association, Clifton, N. J.
Central Savings and Loan Association, Albany, N. Y.
City Savings and Loan Association, Elizabeth, N. J.
Cranford Savings and Loan Association, Cranford, N. J.
***Economia Savings and Loan Association, Trenton, N. J.
First Federal Savings and Loan Association, New York, N. Y.
First Federal Savings and Loan Association, Rochester, N. Y.
Genesee County Savings and Loan Association, Batavia, N. Y.
Jackson Heights Savings and Loan Association, Jackson Heights, N / Y .
**Long Beach Federal Savings and Loan Association, Long Beach, N. Y.
Maywood Savings and Loan Association, Maywood, N. J.
New Brighton Savings and Loan Association, St. George, N. Y.
*North Belleville Savings and Loan Association, Belleville, N. J.
North Jersey Savings and Loan Association, Passaic, N. J.
North Park Savings and Loan Association, Elizabeth, N. J.
*****Owego Federal Savings and Loan Association, Owego, N. Y.
Schuyler Building and Loan Association, Kearny, N. J.
******Shepherd Savings and Loan Association, East Orange, N. J.
Summit Federal Savings and Loan Association, Summit, N. J.
*Totowa Savings and Loan Association, Paterson, N. J.
Union City Savings and Loan Association, Union City, N. J.
United Savings and Loan Association, Paterson, N. J.
Volunteer Building and Loan Association, Little Ferry, N. J.
NO. 3—PITTSBURGH
Alvin Progressive Federal Savings and Loan Association, Philadelphia, Pa.
Brentwood Federal Savings and Loan Association, Pittsburgh, Pa.
Colonial Federal Savings and Loan Association, Philadelphia, Pa.
**EIIwood City Federal Savings and Loan Association, Ellwood City, Pa.
First Federal Savings and Loan Association of Bucks County, Bristol, Pa.
*First Federal Savings and Loan Association, Homestead, Pa.
First Federal Savings and Loan Association, Logan, W. Va.
*First Federal Savings and Loan Association, Wilkes-Barre, Pa.
***First Federal Savings and Loan Association, Wilmerding, Pa.
*Franklin Federal Savings and Loan Association, Pittsburgh, Pa.
Grand Union Federal Savings and Loan Association, Philadelphia, Pa.
Lansdowne Federal Savings and Loan Association, Lansdowne, Pa.
***Mid-City Federal Savings and Loan Association, Philadelphia, Pa.
*Mutual Building and Loan Association, Erie, Pa.
North Philadelphia Federal Savings and Loan Association, Philadelphia, Pa.
******United Federal Savings and Loan Association, Morgantown, W. Va.
No. 4—WINSTON-SALEM
Atlantic Federal Savings and Loan Association, Baltimore, Md.
***Bohemian American Building Association, Baltimore. Md.
**Bohemian Building Loan and Savings Association "Slavie", Baltimore, Md.
Carrollton Federal Savings and Loan Association, Carrollton, Ga.
*First Federal Savings and Loan Association, Andalusia, Ala.
**First Federal Savings and Loan Association, Bessemer, Ala.
First Federal Savings and Loan Association, Columbus, Ga.
*******First Federal Savings and Loan Association, Cordele, Ga.
*First Federal Savings and Loan Association, Darlington, S. C
* First Federal Savings and Loan Association, Decatur, Ala.
*First Federal Savings and Loan Association, Eustis, Fla.
First Federal Savings and Loan Association, Forest City, N. C
First Federal Savings and Loan Association, Gastonia, N. C
First Federal Savings and Loan Association, Griffin, Ga.
First Federal Savings and Loan Association, Huntsville, Ala.
**First Federal Savings and Loan Association, Montgomery, Ala.
*+***First Federal Savings and Loan Association, Phenix City, Ala.
First Federal Savings and Loan Association, Sumter, S. C.
**********First Federal Savings and Loan Association, Winder, Ga.
* Fitzgerald Federal Savings and Loan Association, Fitzgerald, Ga.
***Fort Hill Federal Savings and Loan Association, Clemson, S. C.
Home Building and Loan Association, Dunn, N. C
*************jj ome Building a n ( j Loan Association, Easley, S. C.
Lake Worth Federal Savings and Loan Association, Lake Worth, Fla.
*Lithuanian Federal Savings and Loan Association, Baltimore, Md.
Meriwether Federal Savings and Loan Association, Manchester, Ga.
***Moultrie Federal Savings and Loan Association, Moultrie, Ga.
II3
* Peoples Mutual Building and Loan Association, Mt. Gilead, N. C*.
Raleigh Building and Loan Association, Raleigh, N. C.
•**Southern Pines Building and Loan Association, Southern Pines, N. C
•••••Tifton Federal Savings and Loan Association, Tifton, Ga,
No.
-CINCINNATI
Anderson Ferry Building and Loan Company, Cincinnati, Ohio
""Bedford Savings and Loan Company, Bedford, Ohio
Chagrin Falls Savings and Loan Company, Chagrin Falls, Ohio
•Citizens Federal Savings and Loan Association, Dayton, Ohio
East Cleveland Savings and Loan Company, East Cleveland, Ohio
* ••First Federal Savings and Loan Association, Bucyrus, Ohio
First Federal Savings and Loan Association, Covington, Ky.
First Federal Savings and Loan Association, Dickson, Tenn.
First Federal Savings and Loan Association, Galion, Ohio
-••First Federal Savings and Loan Association, Greeneville, Tenn.
**First Federal Savings and Loan Association, Hopkinsville, Ky.
•••First Federal Savings and Loan Association, Lorain, Ohio
* First Federal Savings and Loan Association, Van Wert, Ohio
First Federal Savings and Loan Association, Warren, Ohio
Glandorf German Building and Loan Company, Glandorf, Ohio
Great Northern Building and Loan Company, Barberton, Ohio
Hancock Savings and Loan Company, Findlay, Ohio
••Hickman Federal Savings and Loan Association, Hickman, Ky.
Hicksville Building, Loan and Savings Company, Hicksville, Ohio
Home Federal Savings and Loan Association, Knoxville, Tenn.
Hopkinsville Federal Savings and Loan Association, Hopkinsville, Ky.
Lincoln Heights Savings and Loan Company, Cleveland, Ohio
Logan Federal Savings and Loan Association, Logan, Ohio
McArthur Savings and Loan Company, McArthur, Ohio
Murfreesboro Federal Savings and Loan Association, Murfreesboro, Tenn.
North Hill Savings and Loan Company, Akron, Ohio
•Ohio Savings and Loan Association, Fostoria, Ohio
Orleans Federal Savings and Loan Association, Cleveland, Ohio
•Peoples Federal Savings and Loan Association, Leetonia, Ohio
•Progress Savings and Loan Company, Cleveland, Ohio
•Suburban Federal Savings and Loan Association, Covington, Ky.
****Tatra Savings and Loan Company, Cleveland, Ohio
Third Federal Savings and Loan Association, Cleveland, Ohio
•Ukrainian Savings Company, Cleveland, Ohio
Van Wert Federal Savings and Loan Association, Van Wert, Ohio
•Versailles Building and Loan Company, Versailles, Ohio
:
*** Warsaw Savings and Loan Association, Cleveland, Ohio
West Jefferson Building and Loan Company, West Jefferson, Ohio
NO. 6.—INDIANAPOLIS
:
**Bedford Federal Savings and Loan Association, Bedtord, Ind.
Citizens Federal Savings and Loan Association, Port Huron, Mich.
******Detroit Federal Savings and Loan Association, Detroit, Mich.
East Chicago Federal Savings and Loan Association, East Chicago, Ind.
Fayette Federal Savings and Loan Association, Connersville, Ind.
First Federal Savings and Loan Association, Indianapolis, Ind.
First Federal Savings and Loan Association, Kokomo, Ind.
•First Federal Savings and Loan Association, Washington, Ind.
•••Griffith Federal Savings and Loan Association, Griffith, Ind.
Homestead Loan and Building Association, Albion, Mich.
Industrial Savings and Loan Association of Indiana Harbor, East Chicago, Ind.
""••Liberty Savings and Loan Association, Whiting, Ind.
Loogootee Federal Savings and Loan Association, Loogootee, Ind.
•••Marshall County Building and Loan Association, Plymouth, Ind.
Monon Building, Loan and Savings Association, Monon, Ind,
Muskegon Federal Savings and Loan Association, Muskegon, Mich.
Niles Federal Savings and Loan Association, Niles, Mich.
•Peoples Federal Savings and Loan Association, East Chicago, Ind.
•Peoples Federal Savings and Loan Association, Monroe, Mich.
Peoples Savings and Loan Association, Huntington, Ind.
•Port Huron Loan and Building Association, Port Huron, Mich.
•••••Sobieski Federal Savings and Loan Association, South Bend, Ind.
•Twelve Points Savings and Loan Association, Terre Haute, Ind.
:
*Wayne County Federal Savings and Loan Association, Detroit, Mich.
NO. 7— CHICAGO
*****ACME S A VINOS AND LOAN ASSOCIATION, MILWAUKEE, W I S .
Amery Federal Savings and Loan Association, Amery, Wis.
Austin Federal Savings and Loan Association, Chicago, 111.
•Avondale Building and Loan Association, Chicago, 111.
114
***"=**City Savings and Loan Association, Chicago, 111.
Clyde Savings and Loan Association, Cicero, 111.
Concord Savings and Loan Association, Chicago, 111.
Continental Savings and Loan Association, Chicago, 111.
•••Cook County Federal Savings and Loan Association, Chicago, 111.
••••••Copernicus Building and Loan Association, Chicago, 111.
•••Cragin Savings and Loan Association, Chicago, 111.
*Cudahy Savings and Loan Association, Cudahy, Wis.
DuQuoin Home Loan Association, DuQuoin, 111.
* Fairfield Savings and Loan Association, Chicago, 111.
******First Calumet City Savings and Loan Association, Calumet City, 111.
•First Federal Savings and Loan Association, Chicago, 111.
•First Federal Savings and Loan Association, Des Plaines, 111.
**First Federal Savings and Loan Association, Moline, 111.
First Federal Savings and Loan Association, Shelbyville, 111.
First Savings and Loan Association of Hegewisch, Chicago, 111.
*Flora Mutual Building, Loan and Homestead Association, Flora, 111.
Gage Park Savings and Loan Association, Chicago, 111.
GEORGE WASHINGTON SAVINGS AND LOAN ASSOCIATION, CHICAGO, I I I .
•Grand Crossing Savings and Building Loan Association, Chicago, 111.
•Guaranty Savings and Loan Association, Chicago, 111.
Guaranty Savings and Loan Association, Milwaukee, Wis.
••••••••••••Haller Savings and Loan Association, Chicago, 111.
••••••••Harvey Federal Savings and Loan Association, Harvey, 111.
•Hemlock Savings and Loan Association, Chicago, 111.
•••••••••••Homewood Building and Loan Association, Homewood, 111.
••••••Investors Savings and Loan Association, Chicago, 111.
••Jackson County Federal Savings and Loan Association, Black River Falls, Wis.
Joliet Federal Savings and Loan Association, Joliet, 111.
Tops in volume
The 25 member institutions which have reported the largest cumulative sales
of war-savings bonds and stamps through November 30
1. First Federal Savings and Loan Association, Chicago, 111. $2, 679,908
2. Citizens Federal Savings and Loan Association, Dayton,
Ohio
2,432,857
3. Old Colony Cooperative Bank, Providence, R. I
2,291,348
4. Bloomfield Savings Institution, Bloomfield, N. J
2,281,778
5. First Federal Savings and Loan Association, New York,
N. Y
2, 261, 378,
6. Edison Savings and Loan Association, New York, N. Y_ _ 2,187,400
7. First Federal Savings and Loan Association, Rochester,
N. Y
2, 039, 700
8. Trenton Savings Fund Society, Trenton, N. J
1,939,499
9. Harvey Federal Savings and Loan Association, Harvey,
111
1,697,641
10. Minnesota Federal Savings and Loan Association, St.
Paul, Minn
'
1, 680, 482
11. Home Federal Savings and Loan Association, Tulsa,
Okla_
1, 670,132
12. Worcester Co-Operative Federal Savings and Loan Association, Worcester, Mass
1, 650, 635
13. Pacific First Federal Savings and Loan Association,
Tacoma, Wash
1, 532, 635
14. Colonial Federal Savings and Loan Association, Philadelphia, Pa
1, 530, 686
15. Railroad Federal Savings and Loan Association, New
York, N. Y
1,511,513
16. Acme Savings and Loan Association, Milwaukee, Wis.. 1,483,289
17. Fourth Federal Savings and Loan Association, New York,
N. Y
1,408,770
r
18. Railroadmen's Federal Savings and Loan Association,
Indianapolis, Ind
1, 378, 915
19. Talman Federal Savings and Loan Association, Chicago,
111
1,326,762
20. Perpetual Building Association, Washington, D. C
1,276,550
21. Gem City Building and Loan Association, Dayton, Ohio_ 1, 237, 550
22. First Federal Savings and Loan Association, Miami, Fla. _ 1,182, 537
23. Dime Savings Institution, Newark, N. J
1,116,255
24. First Federal Savings and Loan Association, Youngstown,
Ohio
1,064,843
25. Home Savings and Loan Company, Youngstown, Ohio... 1,035,661
Federal Home Loan Bank Review
***Jugoslav Savings and Loan Association, Chicago, 111.
Lawn Manor Building and Loan Association, Chicago, 111.
*Lawn Savings and Loan Association, Chicago, 111.
**********Lawndale Savings and Loan Association, Chicago, 111,
Liberty Savings and Loan Association, Chicago, 111.
***Libertyville Federal Savings and Loan Association, Libertyville, 111.
*Lombard Building and Loan Association of Du Page County, Lombard, III.
^Merchants and Mechanics Building and Loan Association, Springfield, 111.
*Midwest Savings and Loan Association, Chicago, 111.
***Naperville Building and Loan Association, Naperville, 111.
Naprstek Savings and Loan Association, Chicago, 111.
Narodni Savings and Loan Association, Chicago, 111.
National Savings and Loan Association, Milwaukee, Wis.
*New City Savings and Loan Association, Chicago, 111.
*New London Savings and Loan Association, New London, Wis.
**North Side Federal Savings and Loan Association, Chicago, 111.
North Shore Building and Loan Association, North Chicago, 111.
^Northwestern Savings and Loan Association, Chicago, 111.
Ogden Federal Savings and Loan Association, Berwyn, 111.
Peerless Federal Savings and Loan Association, Chicago, 111.
* Prairie State Savings and Loan Association, Chicago, 111.
Prospect Federal Savings and Loan Association, Chicago, 111.
:
***Pulaski Savings and Loan Association, Chicago, 111.
Republic Savings and Loan Association, Chicago, 111.
******Richland Center Federal Savings and Loan Association, Richland Center,
Wis.
Ripon Federal Savings and Loan Association, Ripon, Wis.
Security Federal Savings and Loan Association, Chicago, 111.
***Springfield Building and Loan Association, Springfield, 111.
*****St. Anthony Savings and Loan Association, Cicero, 111.
****Sturgeon Bay Building and Loan Association, Sturgeon Bay, Wis.
Union Federal Savings and Loan Association, Kewanee, 111.
**Universal Savings and Loan Association, Chicago, 111.
**Cptown Federal Savings and Loan Association, Chicago, 111.
**Yalentine Federal Savings and Loan Association, Cicero, 111.
•****\Vest Highland Savings and Loan Association, Chicago, 111.
•***West Pullman Savings and Loan Association, Chicago, 111.
NO. 8—DES MOINES
^Burlington Federal Savings and Loan Association, Burlington, Iowa
First Federal Savings and Loan Association, Fargo, N. Dak.
*****First Federal Savings and Loan Association, Jamestown, N, Dak.
First Federal Savings and Loan Association, Rock Rapids, Iowa
* First Federal Savings and Loan Association, Sioux City, Iowa
Home Building and Loan Association, Marion, Iowa
* Independence Savings and Loan Association, Independence, Mo.
insurance Plan Savings and Loan Association, Mount Pleasant, Iowa
Lake City Federal Savings and Loan Association, Lake City, Minn.
**Owatonna Federal Savings and Loan Association, Owatonna, Minn.
**Perry Federal Savings and Loan Association, Perry, Iowa
Provident Building and Loan Association, St. Joseph, Mo.
Sentinel Federal Savings and Loan Association, Kansas City, Mo.
NO. 9—LITTLE ROCK
*Amory Federal Savings and Loan Association, Amory, Miss.
*Argenta Building and Loan Association, North Little Rock, Ark.
****Atlanta Federal Savings and Loan Association, Atlanta, Tex.
****Batesville Federal Savings and Loan Association, Batesville, Ark.
Bell County Federal Savings and Loan Association, Belton, Tex.
*****Clay County Federal Savings and Loan Association, West Point, Miss.
* Colorado Federal Savings and Loan Association, Colorado, Tex.
Conroe Federal Savings and Loan Association, Conroe, Tex.
* Delta Federal Savings and Loan Association, Greenville, Miss.
*****Deming Federal Savings and Loan Association, Deming, N. Mex.
***********Electra Federal Savings and Loan Association, Electra, Tex.
**E1 Paso Federal Savings and Loan Association, El Paso, Tex.
*********First Federal Savings and Loan Association, Belzoni, Miss.
* First Federal Savings and Loan Association, Big Spring, Tex.
****First Federal Savings and Loan Association, Corinth, Miss.
****First Federal Savings and Loan Association, Corpus Christi, Tex.
* First Federal Savings and Loan Association, Dallas, Tex.
First Federal Savings and Loan Association, El Paso, Tex.
* First Federal Savings and Loan Association, Helena, Ark.
First Federal Savings and Loan Association, Las Vegas, N. Mex.
***First Federal Savings and Loan Association, Lubbock, Tex,
* First Federal Savings and Loan Association, McComb, Miss.
First Federal Savings and Loan Association, Monroe, La.
January 1943
First Federal Savings and Loan Association, Starkville, Miss.
*First Federal Savings and Loan Association, Waco, Tex.
***Gladewater Federal Savings and Loan Association, Gladewater, Tex.
***Greater New Orleans Homestead Association, New Orleans, La.
Hammond Building and Loan Association, Hammond, La.
*Home Building and Loan Association, Plain view, Tex.
Lufkin Federal Savings and Loan Association, Lufkin, Tex.
****Marianna Federal Savings and Loan Association, Marianna, Ark.
Mineral Wells Building and Loan Association, Mineral Wells, Tex.
****Morrilton Federal Savings and Loan Association, Morrilton, Ark.
**Mutual Building and Loan Association, Las Cruces, N. Mex.
*Mutual Deposit and Loan Company, Austin, Tex.
*****Nashville Federal Savings and Loan Association, Nashville, Ark.
Navasota Federal Savings and Loan Association, Navasota, Tex.
Oak Homestead Association, New Orleans, La.
Orange Federal Savings and Loan Association, Orange, Tex.
Panola County Federal Savings and Loan Association, Batesville, Miss.
Piggott Federal Savings and Loan Association, Piggott, Ark.
Pioneer Building and Loan Association, Waco, Tex.
**Pocahontas Federal Savings and Loan Association, Pocahontas, Ark.
*****Ponchatoula Homestead Association, Ponchatoula, La.
********Quanah Federal Savings and Loan Association, Quanah, Tex.
***Riceland Federal Savings and Loan Association, Stuttgart, Ark.
Roswell Building and Loan Association, Roswell, N. Mex.
Ruston Building and Loan Association, Ruston, La.
San Angelo Federal Savings and Loan Association, San Angelo, Tex.
San Antonio Building and Loan Association, San Antonio, Tex.
**Slidell Savings and Homestead Association, Slidell, La,
St, Tammany Homestead Association, Covington, La.
Tucumcari Federal Savings and Loan Associations, Tucumcari, N. Mex.
NO. 10—TOPEKA
American Building and Loan Association, Oklahoma City, Okla.
Citizens Federal Savings and Loan Association, Wichita, Kans.
*Erie Building and Loan Association, Erie, Kans.
First Federal Savings and Loan Association, Beloit, Kans.
First Federal Savings and Loan Association, Englewood, Colo.
**************-pjrsj- p e c i e r a ] Savings and Loan Association, Lamar, Colo.
*First Federal Savings and Loan Association, Liberal, Kans.
* First Federal Savings and Loan Association, Shawnee, Okla.
*********First Federal Savings and Loan Association of Sumner County, Welling
ton, Kans.
**First Federal Savings and Loan Association, Wakeeney, Kans.
Hays Building and Loan Association, Hays, Kans.
Home Federal Savings and Loan Association, Ada, Okla.
**Home Federal Savings and Loan Association, Grand Island, Nebr.
*Home Federal Savings and Loan Association, Tulsa, Okla.
********Horton Building, Loan and Savings Association, Horton, Kans.
Monte Vista Building Association, Monte Vista, Colo.
****************Qsage Federal Savings and Loan Association, Pawhuska, Okla.
* Peoples Federal Savings and Loan Association, Tulsa, Okla,
*Routt County Federal Savings and Loan Association, Oak Creek, Colo.
**********gcnUy]er p e ( j e r a ] Savings and Loan Association, Schuyler, Nehr.
NO. 11—PORTLAND
*** Auburn Federal Savings and Loan Association, Auburn, Wash.
* Cheyenne Federal Savings and Loan Association, Cheyenne, Wyo.
Commercial Savings and Loan Association, Kelso, Wash.
Deer Lodge Federal Savings and Loan Association, Deer Lodge, Mont.
Ellensburg Federal Savings and Loan Association, Ellensburg, Wash.
* First Federal Savings and Loan Association, Chehalis, Wash.
First Federal Savings and Loan Association, Everett, Wash.
First Federal Savings and Loan Association, Idaho Falls, Idaho
* First Federal Savings and Loan Association, Klamath Falls, Oreg,
* First Federal Savings and Loan Association, Lewiston, Idaho
First Federal Savings and Loan Association, McMinnville, Oreg.
****First Federal Savings and Loan Association, Mt. Vernon, Wash.
* First Federal Savings and Loan Association, Pendleton, Oreg.
First Federal Savings and Loan Association, Port Angeles, Wash.
* First Federal Savings and Loan Association, Sheridan, Wyo.
******** First Federal Savings and Loan Association, The Dalles, Oreg.
Liberty Savings and Loan Association, Yakima, Wash.
**Mason County Savings and Loan Association, Shelton. Wash.
Mutual Federal Savings and Loan Association, Salem, Oreg.
**Polk County Federal Savings and Loan Association, Dallas, Oreg.
(Continued
on p. 121)
II5
RESIDENTIAL BUILDING ACTIVITY AND SELECTED INFLUENCING FACTORS
1935-/939= ZOO
3Y YEARS
BY MONTHS
INDEX
280
!
260'
i
240'
1
A
A
«
160
140
AV-
PRIVATE CONSTRUCTION
1 a 2 FAMILY DWELLING UNITS
\
^
(U. S. DEPT OF LABOR
~X
RECORDS)
V[,.J.---;
.••
\f/^£L?•
A/
\
J.
-PRIVATE CONSTRUCTION^.
1 a 2 FAMILY DWELLING UNITS
180
1 ' 1
I . I
220
200
i
a LOAN LENDING
<9ruo.
X*
!
A
—\
\JT\^rSVGS.
^ C
V (FFHFRAI
a LOAN LENDING
80
V
HOMP 1 HAW BANK ADMIN 1
V\]
•••.
*
120
100
280
ADJUSTED FOR SEASONAL VARIATION
T«
#.t£^
LVv
\ \
NONE ARM \
FORECLOSURES-** ^
*'' f\
/
I
60
f
40
(FEDERAL HOME LOAN BANK ADMIN.)
—1—P^U-L^ i
• ^
^—
Is-
20
0
140
i
1
i
1 I
i
\
1
,,!,,!.,
1
1
1
1
i
1
i
i
i
1
1
i - T'—
BUILDING MATERIAL PRICES^.
120
1
BUILDING MATERIAL PRICES
|(U S. DEPARTMENT OF LABOR)
100
. . 1. ,
-Z7T-
rrc/v/o-'
80
(NATIONAL INDUSTR.AL CONFERENCE BOARD)
_J
L_
-\^
i
^is
,
, ,
2001
i
1
i
i
i
|
1
|
.
i
,
, ,
1
i
i
|
1 1
i
,
ADJUSTED FOR SEASONAL VARIATION
180
1....«.'
-1NL )USTIRIAL PRODUCTION*
160
120
*•••.
r^—
Ml-
140
^
-^
u
|
'^
INCC>ME °AYM
/
ZNTS
IM***~"
100
80
60
1930
31
'32
'33
'34
'35
'36
"37
.NDEXCOST OF STANDARD SIX-ROOM HOUSE
.NDEX
135
160,
1935-1939 = 100
'38
'39
*40 '41
-^V
1 1
WHOLESALE COMMODITY PRICES
1935-1939 = 100
i
,
. |
i
i
i
1940
i
_!__!_ , ,
i
i
11
_^J
1942
$240
•K
s
}
fi~
f~L&Z
xs i
94
N
JAN FEB MAR. APR. MAY
i
ML
.LO
. NS F K L B . ADVANCES OUTSTANDING
1942,
116
i
1941
^1940
JUN. JUL. AUG. SEP OCT NOV. DEC.
Federal Home Loan Bank Review
« «
« M O N T H L Y
S U R V E Y
»
» »
HIGHLIGHTS
/. Seasonal influences, construction decreases, and OPA regulations affecting the sale ot tenant-occupied properties combined to bring
about a significant reduction in the volume of home-financing activity during November.
A Mortgage recordings of $20,000
or less declined 22 percent to $278,000,000.
This is the lowest level of recording activity
since February 1940.
All types of mortgagees showed smaller volumes during the month.
B. Mortgage-lending activity of all savings and loan associations was 19 percent less than in October.
Loans for the purchase of
existing homes were 22 percent less than during the preceding monthly period—their first major decline of the year.
II. Total residential-construction activity in all urban areas reached a new low point in its current decline, with only 13,601 permits issued
during November.
Permits for publicly financed dwelling units were 37 percent less than in October; privately financed 1- and 2family-home permits dropped 21 percent.
III.
The curve of building costs, as measured by the standard-house index turned downward for the first time in more than 2 years.
Material
charges declined while labor costs remained unchanged. The Department of Labor index of wholesale building-material prices also
dropped fractionally during November.
IV. During October, private share capital for the first time exceeded total mortgage holdings of all insured savings and loan associations.
The November gain in private investments in insured associations widened this spread between repurchasable share capital and
mortgage holdings to more than
$37,000,000.
A. The combined mortgage balance of insured institutions increased by only $123,000,000
during the first 11 months of 1942.
This is less than one-third of the net growth during the corresponding period of 1941.
B. Only the addition of mortgage portfolios of newly insured associations prevented an actual decline in the total mot fgage holdings
of all insured associations from October to November.
SUMMARY
Barometers for measuring the pressure of the allout war economy upon the home-financing field again
registered reductions during November, after a
period of relative calm. Declines in home construction and lending activity were of such proportions
that they appeared to be the forerunners of a new
phase in the housing picture.
As early as the Summer of 1941, a pinch was felt
in the amount of certain materials available for
building homes. This scarcity, and the resulting
priority-allocation measures taken by the Government, caused the private home-construction curve
on the opposite page to tilt sharply downward
through November of that year. After a brief respite last Winter, while existing inventories were
being consumed, the building-materials supply situation became increasingly acute so that the W P B
issued its first "Stop Construction'' order which prohibited all nonessential building activity.
Results of this order were evident in the second
down-sweep of the construction curve in the Spring
of 1942. Then after 5 quiet months, the second
WPB order was issued. This October order, as well
as OPA restrictions on sales of tenant-occupied
homes, contributed to 2 successive monthly declines
in new mortgage-lending activity of savings and loan
January 1943
associations. Since all classes of lenders participated
in the greater-than-normal reduction in mortgagerecording volume noted in November, it appeared
that these factors were exerting a depressing effect
throughout the home-financing field and that further
contractions might be expected.
The low level of lending reported during the Summer and Autumn of 1942 has caused the mortgage
portfolios of savings and loan associations to remain
fairly static. Principal repayments, stimulated by
higher incomes, have now reached the point of actually offsetting new loan business. In the case of insured savings and loan associations, for which comprehensive information is available, private share
[1935-1939 = 100]
T y p e oi index
H o m e c o n s t r u c t i o n (private)
Foreclosures (nonfarm) J
R e n t a l index ( N I C B )
B u i l d i n g m a t e r i a l prices
Savings a n d loan l e n d i n g i . . .
Industrial production *
Manufacturing employment
M a n u f a c t u r i n g p a y rolls i . . .
Income p a y m e n t s 1
p Preliminary.
Adjusted for n o r m a l seasonal ^
Nov.
1942
Oct.
1942
Percent
change
Nov.
1941
64.8
23.6
111.3
122.9
120.4
P 191.0
P 156. 7
P 309. 4
P 186.0
68.6
'24.4
111.3
123.3
r
126. 5
f 189. 0
152.7
285.4
• 180. 5
-5.5
-3.3
0.0
-0.3
-4.8
+ 1.1
+2.6
+8.4
+3.0
163.2
31.9
109.7
120. 0
170.4
166.0
135.8
188.7
146.3
Percent
change
-60. 3
-26. 0
+1.5
+2.4
+29.3
+15.1
+15.4
+64.0
+27.1
" Revised.
1
II7
capital is continuing to be received in large volume.
With normal investment outlets restricted, these
associations have purchased substantial quantities
of Government bonds. Additional funds have been
used to repay F H L B advances in record volume and
to continue the repurchase of Government share investments, while the amount of cash held by the
associations has become still greater.
BUSINESS CONDITIONS—Employment
and income reach record levels
Income payments continued their upward movement to new record levels, aggregating nearly
$10,280,000,000 in October. This was the second
successive month in which income payments exceeded the ten-billion-dollar mark. As a result,
the seasonally adjusted index of the Department
of Commerce rose from 172.8 in September to
175.5 in October (1935-1939-100). For the first
10 months of the year income payments to individuals amounted to just over $90,800,000,000 as
against $74,622,000,000 for the same period of 1941.
The number of employees in non-agricultural
establishments reached a total of 38,555,000 in the
September 15-October 15 period, the highest figure
recorded by the Department of Labor. Employment during the October reporting period was
approximately 2,500,000 greater than during October 1941.
Maintenance of November industrial production
at levels almost equivalent to October brought a
rise in the seasonally adjusted production index of
the Federal Reserve Board from 189 to 191 percent
of the 1935 to 1939 average. The output of durable
goods—munitions and industrial equipment for new
plants—was largely responsible for this contraseasonal increase in production. Nondurable manufactures declined seasonally.
Reaching the highest level in 16 years, the Bureau
of Labor Statistics' index of nearly 900 wholesale
prices rose fractionally to 100.5 on December 12.
The index of farm products which has shown a
steady increase in recent months was 21 percent
higher in the middle of December than on the
corresponding date of 1941. The index for all
commodities other than foods and farm products
increased only 2.6 percent from the middle of
December 1941 to the same period in 1942.
On November 17, the index for retail food costs
had risen to a point 40 percent above the level prevailing at the outbreak of the War in Europe and
was higher than at any time since January 1930.
118
War expenditures of the Federal Government in
November totaled $6,112,000,000, or almost 7 percent higher than in October. During the first 11
months of the year, expenditures of the Government for war purposes were almost four times those
for the same period of last year.
BUILDING ACTIVITY—Private
construction activity hits new low
Seasonal contractions were noted during November
for all types of residential construction. Units
provided through new Government housing projects,
which increased sharply in the previous month, were
37 percent fewer in November than in October. The
21-percent decline in the volume of privately
financed 1- and 2-family houses compared unfavorably with the 16-percent reduction usually noted
during November; and the seasonally adjusted index
dropped 6 percent to 64.8 (average month 19351939-100).
During the first year of the War, with the limitations on the use of vital materials and labor, total
residential construction declined approximately 40
percent. Government housing projects in urban
areas during the January-November period of this
year provided 68,000 dwelling units—more than
during the 11 months preceding our entry into the
War. ^Residential construction financed by private
funds, on the other hand, provided 182,000 units,
48 percent less than in the corresponding period in
1941.
[TABLES 1 and
2.]
B U I L D I N G COSTS—First declines
noted in more than 2 years
The cost of building a standard 6-room frame
house dropped fractionally during the month of
November. While this is the first decline noted
Federal Home Loan Bank Review
since the Summer of 1940, a leveling off has been in
evidence since March 1942. Dealers' prices for
materials were responsible for the decline in total
costs, while labor costs revealed no change during
the month.
The total cost index now stands 24 percent above
the average month of 1935-1939. Labor costs are
30 percent above the average month of the base
period and dealers' prices for materials are nearly
22 percent higher.
An analysis of individual cities reveals that during
the period from September to December, costs involved in the construction of the standard house
were generally unchanged. Of the 26 cities reporting costs for the past quarter, 14 reported no change,
7 registered declines, and 5 indicated increases.
Wholesale building-material prices as reported by
the U. S. Department of Labor also moved downward fractionally during the month of November,
carrying the composite index (1935-1939 = 100) to
123, a decline of 0.3 percent from October. [TABLES
3, 4, and 5.1
Construction costs for the standard house
[Average month of 1935-1939=100]
Element of
cost
NovemOctoPercent Novem- Percent
ber 1942 ber 1942 change ber 1941 change
Material
Labor _
Total
121. 5
130. 2
121. 6
130. 2
-0. 1
0.0
116. 9
123. 9
+ 3. 9
+ 5. 1
124. 4
124. 5
-0. 1
119. 2
+ 4. 4
MORTGAGE LENDING—Home
purchase loans show significant drop
New mortgage-lending activity of savings and
loan associations in November was 19 percent less
than dnring the previous month, a decline greater
than the seasonal 15-percent drop usually noted in
the month. As a result, the seasonally adjusted
index of mortgage lending dropped 5 percent and
now stands at 120 percent of the 1935-1939 level.
Loans for the purchase of existing homes, which
had been maintained during previous months of
1942 at levels approximating those for 1941, shared
in the October-to-November curtailment. These
loans, amounting to approximately $44,000,000,
were 10 percent below the total for the previous year
and about 22 percent less than during October.
Loans for the construction of new houses continued
their decline. The volume for November was less
January 1943
N e w mortgage loans distributed b y purpose
[Amount s are shown in thousands of dollars ]
Purpose
Construction
H o m e purchaseRefinancing
Reconditioning _
Other purposes _
Total
r
! Nov. j Oct,
| 1942 j iQ42r
Percent
change
Nov.
1941
$9, 275 $10, 572
43, 984 56, 528
12, 472 14, 694
3,498
3,007
5, 241 6,380
- 1 2 . 3 $30, 103
- 2 2 . 2 48, 816
- 1 5 . 1 13, 340
-14. 0
4,267
-17.9
8, 223
73, 979 91, 672
-19.3
Percent
change
104, 749
-69.
-9.
-6.
-29.
-36.
2
9
5
5
3
-29. 4
Revised.
than $10,000,000. This is the lowest monthly total
for loans of this class since February 1936. [TABLES
6 and 7.]
MORTGAGE RECORDINGS-November
volume down sharply
After sustaining relatively small declines during
the first 10 months of this year despite drastic curtailments in privately financed home construction,
mortgage-financing activity fell off sharply during
November to the lowest level since the short month
of February 1940. In addition to seasonal influences
and lowered home-construction activity, still another
factor should be considered in analyzing the OctoberNovember decline: This was the first full month in
which OP A regulations for the sale of tenant-occupied
properties were in effect.
November recordings of nonfarm mortgages of
$20,000 or less amounted to approximately $278,000,000—a drop of $79,000,000, or 22 percent, from
the previous month and $99,000,000, or 26 percent,
from November 1941. This sharp curtailment in
mortgage financing was general throughout the counM o r t g a g e recordings b y t y p e of mortgagee
[Amounts are shown in thousands of dollars]
T y p e of lender
PerPerPercent
change cent of Cumulative cent of
recordings
total
Nov.
from
1942 (11 months) recordOct,
ings
1942 a m o u n t
Savings and loan associ-21. 5
ations
-20.3
Banks, t r u s t companies__ - 2 6 . 1
M u t u a l savings banks___ - 2 1 . 7
Individuals
-17.4
-23. 8
Total
-22. 1
29. 1 $1, 095, 052
338, 440
9.3
828, 660
21. 0
155, 034
4.2
678, 490
20. 1
581, 531
16. 3
100.0
29.
9.
22.
4.
18.
15.
8
2
5
2
5
8
3, 677, 207 100.0
II9
try. October-November declines by Federal Home
Loan Bank Districts ranged from 17 to 32 percent,
with greatest decreases shown in the Little Rock and
Portland Districts. Among the several classes of
mortgagees, declines ranged from 17 percent for individuals to 26 percent for banks and trust companies.
[TABLES 8 and 9.]
FORECLOSURES—November shows
decline from revised October figures
Reductions in the number of nonfarm real-estate
foreclosures continued through November. The
total of 3,112 cases estimated for that month represents a decrease of 1 percent from the previous month
(on a revised basis)—a favorable movement when
compared with the customary October-to-November
increase of 2 percent. As a result, the seasonally
adjusted foreclosure index declined 3 percent and
now stands at another new low of 23.6 (average
month of 1935-1939 = 100).
November foreclosures were down 26 percent from
the same month of 1941. Each Federal Home Loan
Bank District and all but seven States shared in this
improvement. In the first 11 months of the past
year 39,327 nonfarm. real-estate foreclosure actions
were recorded—27 percent below the same period in
the previous year. [TABLE 10.]
BANK SYSTEM—Further
reduction in Bank advances
The rate of decline in the balance of advances outstanding was somewhat slower in November, but the
balance had dropped to $121,886,000—the lowest
figure since June 1936 and $65,000,000 below the
corresponding month in 1941. During November
the decrease amounted to approximately $9,500,000
compared with a drop of $13,375,000 during the
month of October.
Advances made ($4,011,000) reflected the usual
November downward trend, decreasing $1,679,000
from the previous month. This was the lowest total
of monthly advances since February 1941. Only the
Pittsburgh and Chicago Banks made greater advances
in November than in October. Two Bank Districts—Little Rock .and Portland—reported no new
advances made during November. This is the first
time since M a y 1934, and only the second month
since operations began, that any Bank has failed to
make some monthly advances.
Total repayments received by all of the 12 Federal
Home Loan Banks were $5,500,000 below October
120
receipts but were almost twice as high as those of
November 1941, The Cincinnati and Des Moines
Banks reported greater repayments in November
than during the preceding month. All Bank Districts showed an excess of current repayments over
advances.
Despite the general decrease in lending activity,
however, total assets of all 12 Banks were higher on
November 30, 1942 than at the end of October of this
year or November 1941.
At the end of November 1942 there were 3,802
member institutions in the Bank System with assets
of $5,710,902,000.
[TABLE 12.]
INSURED ASSOCIATIONS-Repayments
almost balance new loans
The restricted lending operations of savings and
loan associations in the past year have resulted in a
gradual slackening in the rate of growth of the
mortgage portfolios of all insured institutions. By
November, repayments were slightly larger than
new mortgage lending. Only the addition of the
loan portfolios of new institutions prevented an
actual decline in the total mortgage holdings of all
insured associations.
During the first 11 months of 1942 only $123,000,000, or less than one-third of the $395,000,000 net
growth during the corresponding period of 1941, was
added to the combined mortgage balance of insured
associations. November operations brought the total
of mortgages outstanding to $2,875,000,000.
Private repurchasable capital invested in insured
savings and loan associations increased $39,000,000 during the month, the largest monthly gain of the year.
Total share capital of all insured associations
amounted to $2,913,000,000 at the end of the period.
During the year 1942, there was a consistent
tendency for share investments of individuals in insured associations to increase more rapidly than new
mortgage loans made by the institutions. In October the total private share capital exceeded the balance of mortgage-loans outstanding for the first
time. November activity, with its new high level of
investments and lower volume of new lending,
widened this spread between investments and mortgage holdings to nearly $38,000,000.
FEDERAL SAVINGS AND LOAN ASSOCIATIONS
Assets of the 1,468 associations operating under
Federal charters on November 30, 1942, stood at
nearly $2,260,000,000 after expanding $24,000,000
during the month. As in the case of State-chartered
Federal Home Loan Bank Review
Progress in number and assets of Federals.
[Amounts are shown in thousands of dollars]
Approximate assets
Number
Class of
association
New
Converted
.
Nov. 30,
1942
Nov. 30, Oct, 3 1 ,
1942
1942
__
Total
Oct. 3 1 ,
1942
642
826
642
824
$717, 502
1, 542, 168
$709, 685
1, 526, 041
1,468
1,466
2, 259, 670
2, 235, 726
N E W JERSEY—Continued.
Newark:
North Newark Building and Loan Association of Newark, New Jersey.
46 West Market Street (sale of assets to Plymouth Savings and Loan
Association, Newark).
Superb Building and Loan Association, 60 Branford Street (liquidation).
WISCONSIN:
Beloit:
Beloit Savings Bank, Box 512.
II. F E D E R A L S A V I N G S A N D L O A N A S S O C I A T I O N
C H A R T E R E D B E T W E E N N O V E M B E R 16 A N D
D E C E M B E R 15, 1942
DISTRICT NO. 2
insured institutions, the continued growth in resources is attributable to increases in private capital
rather than mortgages held. As was pointed out in
the December R E V I E W , insured associations are investing a large share of surplus funds in U. S. Government obligations, and Federal associations areparticipating actively in this war financing.
[TABLE 15.]
N E W YORK:
Buffalo:
Schiller Park Federal Savings and Loan Association of Buffalo, 2133
Genesee Street.
CANCELLATION OF F E D E R A L SAVINGS AND L O A N ASSOCIATION
C H A R T E R B E T W E E N N O V E M B E R 16 AND D E C E M B E R 15,.
1942
PENNSYLVANIA:
Philadelphia:
Locomotive Engineers Federal Savings and Loan Association, 532 Real
Estate Trust Building (merger with North Philadelphia Federal
Savings and Loan Association, Philadelphia).
III. I N S T I T U T I O N S I N S U R E D BY T H E F E D E R A L
SAVINGS A N D LOAN I N S U R A N C E C O R P O R A T I O N
B E T W E E N N O V E M B E R 16 A N D D E C E M B E R 15,
1942
DISTRICT NO. 2
N E W JERSEY:
Directory of Member, Federal, and
Insured Institutions
Added during N o v e m b e r - D e c e m b e r
Kearny:
Monarch Savings and Loan Association, 255 Kearny Avenue.
DISTRICT NO. 4
NORTH CAROLINA:
Durham:
Home Building and Loan Association, 108 North Corcoran Street.
Security Building and Loan Association, 214 West Main Street.
SOUTH CAROLINA:
I. I N S T I T U T I O N S A D M I T T E D T O M E M B E R S H I P I N
THE
F E D E R A L H O M E LOAN B A N K S Y S T E M
B E T W E E N N O V E M B E R 16 A N D D E C E M B E R 15,
1942
DISTRICT NO. 1
VERMONT:
Randolph:
Randolph Co-Operative Savings and Loan Association, Main Street.
DISTRICT NO. 2
Greenwood:
Greenwood Building and Loan Association, 110 West Court Street.
DISTRICT NO. 12
CALIFORNIA:
Anaheim:
The Savings, Loan and Building Association of Anaheim, 211 East
Center Street.
Oakland:
Golden West Building and Loan Company, 1632 Franklin Street.
Santa Barbara:
Santa Barbara Mutual Building and Loan Association, 1035 State Street.
N E W JERSEY:
Bloomfield:
The Bloomfield Savings Institution, 11 Broad Street.
N E W YORK:
Buffalo:
Schiller Park Savings and Loan Association, 2133 Genesee Street.
Honor Roll of W a r Bond Sales
DISTRICT NO. 7
ILLINOIS:
Geneva:
Geneva Building and Loan Association, 12 South Third Street.
T E R M I N A T I O N S OF M E M B E R S H I P I N T H E F E D E R A L
HOME
LOAN B A N K SYSTEM B E T W E E N N O V E M B E R 16 AND D E CEMBER 15, 1942
CALIFORNIA:
San Francisco:
Provident Mutual Loan Association, 160 Sutter Street between Kearny
and Montgomery Streets (liquidation).
KENTUCKY:
Bellevue: (Newport)
The Union Building Association, 217 Fairfield Avenue (liquidation).
Newport:
Newport Building and Loan Association #1, Tenth and Anna Streets
(liquidation).
The Progressive Loan and Building Association, Tenth and Monmouth
Streets (liquidation).
NEVADA:
Las Vegas:
Mutual Building and Loan Association of Las Vegas, 115 South Second
Street (liquidation).
N E W JERSEY:
Harrison:
Consolidated Building and Loan Association of the Town of Harrison,
New Jersey, 313 Harrison Avenue (segregation and consolidation with
Monarch Savings and Loan Association, Kearny).
January 1943
(Continued from p. 115)
Port Angeles Savings and Loan Association, Port Angeles, Wash.
*Prudential Savings and Loan Association, Seattle, Wash.
Rawlins Federal Savings and Loan Association, Rawlins, Wyo.
Thurston County Federal Savings and Loan Association, Olympia, Wash.
*****Umpqua Savings and Loan Association, Roseburg, Oreg.
Walla Walla Federal Savings and Loan Association, Walla Walla, Wash.
Washington Federal Savings and Loan Association, Bothell, Wash.
Wenatchee Federal Savings and Loan Association, Wenatchee, Wash.
**West Side Federal Savings and Loan Association, Seattle, Wash.
Yakima Federal Savings and Loan Association, Yakima, Wash.
NO. 12— LOS ANGELES
Central Federal Savings and Loan Association, San Diego, Calif.
**Century Federal Savings and Loan Association, Santa Monica, Calif.
****First Federal Savings and Loan Association, Huntington Park, Calif.
First Federal Savings and Loan Association, Santa Monica, Calif.
Hollywood Building and Loan Association, Hollywood, Calif.
*Home Federal Savings and Loan Association, San Diego, Calif.
Liberty Building-Loan Association, Los Angeles, Calif.
Santa Maria Guarantee Building-Loan Association, Santa Maria, Calif.
I2I
Table 1 . — B U I L D I N G A C T I V I T Y — E s t i m a t e d number and valuation of new family dwelling units
provided in all urban areas in November 1942, by Federal Home Loan Bank District and by State
[Source: U. S. Department of Labor]
[Amounts are shown in thousands of dollars]
All residential dwellings
N u m b e r of family
dwelling u n i t s
F e d e r a l H o m e L o a n B a n k District a n d State
U N I T E D STATES._
___
__
_._
_
Connecticut
Maine.
Massachusetts
_._
_
Rhode Island
V e r m o n t _ ._
__ _
_
.
. ... . . .
.
-
.
.
_.__.....
_ _
.
__ _ __
$99, 587
7,621 j
19,208 [
$25,868 1
3,969
4, 900
393
1,124
1,528
_ J
434
607
131
1,694
1,786
466
11
12
1,972
184
1,997
178
466
103
234
27
123
4
5
450
53
460
44
112
22
1,460
...
... _ _
_.
N o . 5—Cincinnati. __
._
„
225 1
2,926 !
461 !
2,094 !
13 1
I
!
!
i
1
312 |
149
542
300
247
364
178
378 |
2,672
8,198
2558
586
731
2,045
637
846
931
796
1,626
212
531
434
501
13
718 1
1,742
6, 796
7, 204
1,506
1,438
6,188
6,062
852
890
1, 567
5,229
3,224
* 3,980
311
1,195
552
886
959
5,229
2,097
3,965
... .. _
786
2, 076
2,886
9,686
528
1,274
2,028
6,431
_.
626
160
1,689
387
2,299
587
8, 018
1,668
368
160
897
377
1,441
587
4, 779
1,652
242
1,001
620
3,999
149
944
447
3,893
60
34
94
192
110
249
9
269
385
233
18
39
192
110
129
69
1.141
1.703
963
55
137
60
34
46
54
276
385
280
18
42
16
1, 121
1,703
884
55
130
1,193
2,543
2,833
6, 689
933
2,383
2,013
6,162
.
. .
.
80
248
47
9
809
192
307
301
110
1,633
207
792
22
14
1,798
446
877
693
306 i
4,367
80
100
47
9
697
192
307
186
110
1,588
207
342
22
14
1,428
446
877
271
306
4,262
...
191
_ . ...
_
_
. _. . . .
.
...
. . .
Colorado
_
_ _ _ _ _ _
Kansas
_
. .
. _ _
Nebraska
__ _
. . .
_
_ .
O k l a h o m a __ __ .
...
122
!
|
!
1,070
2,470
671
1,195
...
_
.
. .
1
.
... .
.
!
.
. _ _
. . . .
1
.
. . . . . .
. .
. . ...
_ ... _
979 |
431
2,880
187
875
423
2,614
29
51
277
173
143
386
10
84
124
213
841
424
488
1,127 |
25
51
106
190
167
143
375
10
76
124
213
605
412
488
1,109
306
1,620
1, 033
5,671
302
874
1,020
3,034
48
42
155
105
476
48
2
184
284
550
134
140
534
356
1,667
203
978 i
3,603
3,147
12, 595
1
65
2,871
275
1
2, 871
275
239
12,130
226
5
.... . .
. ...
106
512
96
157
48
46
181 j
111 I
1,181 I
53
1
2
197 1
284 1
550 1
j
134
146
591
366
4,216
218
_.
1, 885
7, 721
5,879 !
24,768
.
33
1, 769
83
73
7. 561
87
70
5, 534
275
256
24, 254
258
..
.
882
137
6
93
172
146
162
12
240
1,866
_
.
968
598
1,136
3,075
647
858
954
798
3,624
332
5,586
647
N o . 10—Topeka
Arizona...
California
Nevada
11, 690
255 1
48
4,140
546
6, 565
.
N o . 12—Los A n g e l e s . .
7,926
319
357
919
324
251
378
182
1, 047
1,973
25 j
7
2,218
12
_
Montana
_ _
Oregon
Utah
Washington
__
3,777
156 1
4,734
134
1,194
238 '
_ ...
N o . 1 1 — P o r t l a n d . . _ ._
476
10
1,998
4
516
11
'
..
3.030
25 j
10
899
384
6,471
655
. .
Arkansas. _
Louisiana
Mississippi
N e w Mexico
T e x a s . _.
710 I
10
1,065
3,071
3,814
7
2,301 1
12
N o . 8—Des Moines
. ..
486
48
5,172
572
1,016 1
156
1,437
252
_
___ .
5,792
6,885
1,151 i
4 S
548 j
11
_ __ .
N o . 9—Little Rock
3,055
10
1,156
168
2,167 1
2,237
.
Iowa
__
Minnesota
Missouri
_
North Dakota
South Dakota
1.334
684
908 j
1,566
..
..
720
1,592
531
_
. . .
380
280
11 i
12
1,937
149
1,997
178
465
103
7,510
_ _
._
660
3,581
5,217
4,829
2, 320
•__ __ _ .
N o . 7—Chicago . . . _
8,798
1,850 |
2,996 !
$72, 002
1,845
_
Indiana
Michigan
4,846
952 1
107
446
N o v . 1941
563
_ . ...
N o . 6—Indianapolis. _ __
5j
824
1,265
!
45 !
460
44
112
22 I
4
2,089
137
400
97
1,172
158
912
12
320
.. .
.
....
.
441 1
608 j
852
3,208
_ .
Alabama
._ __ . . . _ . .
D i s t r i c t of C o l u m b i a _ _ _ _ _ _
...
Florida..
Georgia... . . . . . .
Maryland
__ ....
.
... ...
North Carolina. _
... _
.
S o u t h Carolina
_ ._. . . . . .. . . .
Virginia
. . .
__
Illinois
Wisconsin
$42,594
1,141
__ _
_
N o v . 1942
27, 868
..
N o . 4—Winston-Salem
N o v . 1941
1,181
_._
Delaware
_ .
Pennsylvania
W e s t V i r g i n i a . __
N o v . 1942
Permit valuation
13,601
. . . . . .
N e w J e r s e y __ .. _ __ ._ _ _ . _ . .
N e w York _ _ _ _ _ _
.
N o v . 1942 j N o v . 1941
j
j
._ _
_ _ _ _ - . . _ . !
N o . 2—New Y o r k
Kentucky,
Ohio
Tennessee
N o v . 1941
....
_
_ _ _. _.
No. 3—Pittsburgh
__
N u m b e r of family
dwelling u n i t s
P e r m i t v aluation
N o v . 1942
_.
N o . 1—Boston
All p r i v a t e 1- a n d 2-family dwellings
5
I
2
47
96
157
1
894
83
Federal Home Loan Bank Review
Table 2 . — B U I L D I N G A C T I V I T Y — E s t i m a t e d number and valuation of new family dwelling units
provided in all urban areas of the United States
[Source: l \ S. Department of Labor]
[Amounts are shown in thousands of dcllarsl
•
N u m b e r of family dwelling u n i t s
M o n t h l y totals
T y p e of construction
P r i v a t e construction _ _ _ _ _ _ _
Oct. 1942
N o v . 1941
9,046
11,181
6,745
876
1,425
8, 527
1,133
1, 521
__ __
P u b l i c construction-
___
_ __
_ ___
Total urban construction.
M o n t h l y totals
J a n . - N o v . totals
N o v . 1942
1-family dwellings _ _ _ _.
___ _ _
2-family dwellings *
3-and more-family dwellings 2
P e r m i t valuation
J a n . - N o v . totals
N o v . 1942
Oct. 1942
N o v . 1941
352, 367
$29,124
$36, 224
$87, 369
$595, 593
$1, 317, 948
280, 510
21, 583
50.274
23, 543
2,325
3,256
28,958
3,367
3,899
68, 541
3,461
15, 367
458, 665
41, 886
95, 042
1,119,303
55, 884
142, 761
1942
1941
24, 337
181, 875
17, 910
1, 298
5,129
132, 771
15, 055
34, 049
1942
1941
4,555
7,271
3,531
68, 345
67, 877
13, 470
26, 401
12, 218
227, 851
229,170
13,601
18, 452
27, 868
250. 220
420. 244
42, 594
62, 625
99, 587
823,444
1, 547,118
1
Includes 1- and 2-family dwellings combined with stores.
• Includes multi-family dwellings combined with stores.
Table 3 . — B U I L D I N G COSTS—Index of building costs for the standard house in representative
cities in specific months i
[Average month of 1935-1939 = 100]
NOTE:—These figures are subject to correction
1942
1941
1940
1939
1938
1937
1936
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
F e d e r a l H o m e L o a n B a n k D i s t r i c t ' a n d city
Dec.
N o . 1—Boston:
Hartford, Conn_
-__-____-______.__ _ _ __
New Haven, Conn _
_
P o r t l a n d , Me_ __
__.
Boston, Mass_ _ ___ __ _ _ _ _ _ _ _ __ _.
M a n c h e s t e r , N . H__
_ . _ _ __ _______
Providence, R . I _
___
Rutland, Vt
N o . 4—Winston-Salem:
B i r m i n g h a m , Ala
_
W a s h i n g t o n , D . C___ __
. _ ____
Tampa, Fla.
___..
_
______
Atlanta, Ga
_ _ _ _ _ _ _ _ _ _ __. .__ __
Baltimore, Md___
Cumberland, M d
Asheville, N . C
Raleigh, N . C
.
C o l u m b i a , S. C
R i c h m o n d , Va
R o a n o k e , Va__
N o . 7—Chicago:
Chicago, 111.
Peoria, 111 _ _ _
Springfield, I1L _
Milwaukee, Wis
Oshkosh, W i s
_
_. _ _ _ _
_ _
N o . 10—Topeka:
D e n v e r , Colo______
__ . . .
W i c h i t a , Kans_ _
__
O m a h a , Neb_
O k l a h o m a C i t y , Okla _. _
_
_.
_
_
Sept.
June
Mar.
12'J. 9
131.1
103.6
120.1
109.2
118.9
124.4
129.9
131.1
103.6
120.1
109.2
118.9
124.4
130.0
130.9
103.2
123.0
108.9
120.1
121.7
128.3
129.0
103.1
120.2
' 108. 9
118.3
120.2
123.4
127.0
103.3
118.0
108.6
116.2
115.8
106.3
108.4
99.2
107.0
104.6
108.0
99.1
101.1
102.6
98.6
103.1
97.9
104.2
96.0
100.7
99.5
98.9
102.4
101.1
102.2
99.6
104.1
103.3
107.4
105.9
101.9
104.0
106.5
99.1
99.5
98.8
95.1
101.1
97.7
97.6
127.7
125.9
122.7
131.9
122.1
119.7
125.3
132.1
118.6
125.2
128.7
125.9
119.4
122.5
132.6
122.1
120.1
125.5
132.2
118.6
125.0
128.7
125.9
114.0
122.3
131.9
120.5
120.1
125.3
132.2
119.5
130.4
128.7
121. 6
113.8
122.7
130.6
114.1
118.8
125.3
131.9
117.9
128.1
127. 9
116.4
112.8
122.6
130.1
114.2
118.8
118.0
128.3
118.0
125.1
109.5
116.7
109.2
108.7
117.2
105.9
106.4
102.8
114.7
107.6
116.1
93.4
104.4
103.4
97.5
99.6
99.5
102.3
99.3
98.3
98.4
105.5
102.0
106.5
99.9
99.1
96.9'
98.9
101.5
101.1
102.8
100.9
103.5
109.2
109.5
101.0
104.3
101.9
102.5
108.2
105. 8
102.3
106.7
103.7
98.8
98.5
101. 5
104.7
99.8
98.8
100.6
101.1
98.9
97.7
118.2
119. 7
134. 2
146.2
133.6
118.2
119.8
134.2
145.2
133.6
116.7
119.8
135.5
139.8
125.2
116.7
119.8
135.5
139.8
125.1
115.6
119.4
136.5
133.9
122.2
101.4
110.9
128.4
118.6
108.6
99.8
107.1
122.5
107.9
100.7
100.5
99.8
118.0
102.4
102.3
106.2
103.9
106.9
104.5
100. 5
97.7
115.5
98.7
100.3
111.5
122.2
122.4
178.7
111.8
117.8
121.1
178.7
110.5
117.1
112.1
174.9
110.1
116.2
111.0
169.3
108.5
114.3
109.1
169.3
100.6
102.5
103.6
139.2
98.9
103.9
105.5
130.7
102.2
106.9
99.2
128.0
105.3
101.8
103.7
127.4
97.2
94.9
98.8
119.5
i The house on which costs are reported is a detached 6-room home of 24,000 cubic volume. Living room, dining room, kitchen, and lavatory on first floor; three
bedrooms and bath on second floor. Exterior is wide-board siding with brick and stucco as features of design. Best quality materials and workmanship are used
throughout.
The house is not completed ready for occupancy. It includes all fundamental structural elements, an attached 1-car garage, an unfinished cellar, an unfinished
attic, a fireplace, essential heating, plumbing, and electric wiring equipment, and complete insulation. It does not include wall-paper nor other wall nor ceiling finish
on interior plastered surface, lighting fixtures, refrigerators, water heaters, ranges, screens, weather stripping, nor window shades.
Reported costs include, in addition to material and labor costs, compensation insurance, and allowance for contractor's overhead and transportation of materials
plus 10 percent for builder's profit.
Reported costs do not include the cost of land nor of surveying the land, the cost of planting the lot, nor of providing walks and driveways; they do not include
architect's fee, cost of building permit, financing charges, nor sales costs.
In figuring costs, current prices on the same building materials list are obtained every three months from the same dealers, and current wage rates are obtained from
the same reputable contractors and operative builders.
January 1943
I23
Table 4 . — B U I L D I N G COSTS—Index of building costs for the standard house
[Average m o n t h of 1935-1939=100]
N o v . 1942 Oct. 1942 Sept. 1942 A u g . 1942 J u l y 1942 J u n e 1942 M a y 1942 Apr. 1942 M a r . 1942 F e b . 1942 J a n . 1942 D e c . 1941 N o v . 1941
E l e m e n t of cost
Material
Labor
„
T o t a l cost
_,
121.5
130.2
121.6
130.2
121.5
130.2
121.2
129.4
121.2
128.5
121.3
127.8
121.0
126.4
120.5
125.9
120.0
126.0
119.3
125.0
118.6
124.5
117.7
124.2
116.9
123.9
-
124.4
124.5
124.4
124.0 1
123.7
123.5
122.8
122.3
122.0
121.2
120.6
119.9
119.2
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
materials
Period
Brick and
tile
Lumber
Cement
Paint and
paint materials
Plumbing
and heating
Structural
steel
Other
110.4
99.3
99.7
130.8
105.4
105.8
103.5
101.9
1941: N o v e m b e r
December
120.0
120.4
106.3
106.4
102.2
102.5
143.3
144.1
117.2
118.6
115.5
117.1
103.5
103.5
111 6
110.8
1942: J a n u a r y .
February
March
April...
May
June.
July...
August
September.
October
November
122. 0
122.9
123.4
123.1
122.9
122.9
123.2
123.2
123.3
123.3
122.9
106.6
106.8
106.9
107.9
107.9
108.0
107.9
108.6
108.6
108.6
108.5
102.5
102.5
102.7
103.3
103.4
103.4
103.4
103.4
103.4
103.4
103.4
146.5
147.8
148.2
146.8
146.4
146.7
148.0
148. I
148.3
148.4
148.2
121.8
122.8
123.9
123.7
123.7
123.3
123.8
123.1
123.4
124.2
123.8
123.0
128.6
129.0
129.4
129.4
129.4
123.6
123.6
123.6
123.6
122.4
103.5
103.5
103.5
103.5
103.5
103.5
103.5
103.5
103.5
103.5
103.5
111 5
111.9
112.3
112.3
112.3
112 3
112.3
112.3
112.3
111.7
111.3
1940 N o v e m b e r
..
_
Percent change:
N o v . 1942-Oct. 1942
N o v . 1942-Nov. 1941
.
-0.3
-0. 1
0.0
-0.1
-0.3
-1.0
0.0
-0.4
+2.4
+2.1
+1.2
+3.4
+5.6
+6.0
0.0
—0 3
Table 6 . — M O R T G A G E LENDING—Estimated volume of new home-mortgage loans by
savings and loan associations, by purpose and class of association
all
[Thousands of dollars]
P u r p o s e of loans
Class of association
Period
1940
January-November
N ov e m b e r
1941
January-November
November
December.
1942
January-November
January
. .
February
March
April
May
June
July
September..
October r
November
r
.
_
_
_
. . . .
. . .
Total
loans
Construction
Home purchase
Refinancing
Reconditioning
L o a n s for
all o t h e r
purposes
$398,632
$426,151
$198,148
$63,583
$113,065
$1,199,579
$509,713
$483,499
$206,367
368, 600
32, 584
394, 686
33, 875
183, 573
14, 441
59, 335
4,869
104,832
8,798
1,111,026
94, 567
471,998
38,896
446, 770
40,143
192, 258
15, 528
Federals
State
members
Nonmembers
437,065
580, 503
190, 573
61,328
109, 215
1, 378,684
584, 220
583,804
210,660
406, 775
30,103
30, 290
537, 358
48,816
43,145
176,149
13,340
14,424
57,158
4,267
4,170
101,036
8,223
8,179
1, 278,476
104,749
100,208
543,-038
41,910
41,182
539,844
46,890
43,960
195, 594
15,949
15,066
181,966
22,791
20,799
21,775
20,488
17,610
15,930
17, 709
12, 568
12,449
10,572
9,275
532, 292
34,127
33, 769
40,930
52,196
53,095
52,112
52,190
55, 301
58,060
56, 528
43,984
153,048
12,854
12,325
13,225
14,508
13,607
15,184
16,097
14,019
14, 063
14, 694
12, 472
39, 496
3,190
3,138
3,547
4,083
3,866
3,566
3,671
4,126
3,804
3,498
3,007
73,071
6, 571
6,725
7,890
7,772
6,831
7,303
6,130
6,549
5,679
6,380
5, 241
979,873
79, 533
76,756
87,367
99,047
95,009
94,095
95,797
92, 563
94,055
91,672
73, 979
385, 447
31,142
31,919
36,325
38,484
36,966
35,279
37,007
36,620
37,987
35, 555
28.163
443,329
35,312
33,939
38,030
43,937
43,005
44, 265
43,665
41,549
42,249
41, 937
35, 441
151,097
13,079
10,898
13,012
16,626
15,038
14, 551
15,125
14,394
13,819
14,180
10, 375
Revised.
124
Federal Home Loan Bank Review
Table 7.—LENDING—Estimated volume of
new loans by savings and loan associations
Table 8.—RECORDINGS—Estimated nonfarm
mortgage recordings, $20,000 and under
[Amounts are shown in thousands of dollars]
November, 1942
[Thousands of dollars]
C u m u l a t i v e n e w loans
(11 m o n t h s )
N e w loans
Federal Home Loan
Bank District and
class of association
November
1942
October r
1942
November
1941
1942
1941
Savings Insurand
ance
loan
comassocipanies
ations
Federal H o m e
Loan Bank District a n d S t a t e
Percent
change
$73, 979 $91, 672 $104, 749 $979, 873 $1,278,476
United States
35, 555
41, 937
14,180
41,910
46, 890
15, 949
385, 447
443, 329
151, 097
543, 038
539, 844
195, 594
-29.0
-17.9
-22.7
6,959
9,348
11,951
97,121
136, 296
-28.7
1,933
3,962
1,064
2,823
4,827
1,698
3,419
6,619
1,913
29, 291
52, 329
15, 501
46, 341
69, 729
20, 226
-36.8
-25.0
-23.4
28,163
Federal
S t a t e m e m b e r . . . . . . 35, 441
10, 375
Nonmember
Boston
F e d e r a l . _. .
State m e m b e r
Nonmember
N e w York
.
.
^
Federal
State member
Nonmember._.
Pittsburgh
Federal __
. . .
State m e m b e r . . . . .
Nonmember..
Winston-Salem
Federal
State member
Nonmember..
Cincinnati
Federal
State member
Nonmember
Indianapolis
Federal _
State member
Nonmember
Chicago
Federal
State member
Nonmember..
Federal . .
State member
Nonmember...
...
Little R o c k . . .
Federal
. .
State member
Nonmember
Topeka .
Federal.._
State m e m b e r
Nonmember
Portland
Federal
State m e m b e r
Nonmember
Los Angeles
Federal
State member
Nonmember
.
7,905
8,909
11, 562
99, 519
127,103
-21.7
1,974
3,728
2,203
2, 271
3,922
2,716
3,534
3, 775
4,253
23, 735
38, 307
37, 477
37, 700
39, 680
49, 723
-37.0
-3.5
-24.6
7,414
8,980
9,075
90, 350
102, 902
-12.2
2,546
2,278
2,590
3,146
2,498
3,336
3,278
2,641
3,156
33,167
26, 894
30, 289
39,186
26, 825
36, 891
-15.4
+0. 3
-17-9
9,437
10, 913
15, 511
130, 767
176, 056
-25.7
3,674
4,664
1,099
4,438
5,120
1,355
7,276
6,880
1,355
55, 569
60, 716
14,482
85, 538
74, 915
15, 603
-35. 0
-19.0
-7.2
14, 006
17, 719
18, 076
181, 435
218,174
-16.8
4,625
7,824
1,557
"6,114
9,421
2,184
6,514
9,724
1,838
66, 760
95, 661
19, 014
81,148
109, 511
27, 515
-17.7
-12.6
-30.9
3,710
5,251
5,210
53,110
65, 305
-18.7
1,938
1, 563
209
2,678
2,337
236
2,483
2,419
308
26, 651
23, 723
2,736
32, 877
29, 810
2,618
-18.9
-20.4
+4.5
6,719
8,641
9,306
94, 915
126, 446
-24.9
2,610
3,510
599
3,274
4,285
1,082
3,440
4, 593
1,273
34, 661
46, 345
13, 909
48, 884
60, 732
16, 830
-29.1
-23. 7
-17.4
3,109
4,538
5,359
47, 586
69, 644
-31.7
1,634
1,090
385
2,188
1,738
612
2,705
1,827
827
22, 521
17, 588
7,477
34, 748
23,157
11,739
-35.2
-24.0
-36.3
3,130
3,880
4,909
45, 414
62, 417
-27.2
1,078
2,007
45
1,508
2,312
60
2,075
2,776
58
17, 046
27, 530
838
26, 352
34, 650
1,415
-35.3
-20.5
-40.8
2,968
3,603
3,558
41, 292
50, 548
-18.3
1,666
921
381
2,022
1,024
'557
1,889
1,017
652
22, 770
11,913
6,609
27, 838
12, 320
10, 390
-18.2
-3.3
-36.4
2,302
3,054
3,338
30, 651
45, 468
-32.6
1,511
613
178
1,954
816
284
2,042
1,047
249
19, 283
9,298
2,070
29, 345
14, 361
1,762
-34.3
-35.3
+17.5
6,320
6,836
6,894
67, 713
98,117
-31.0
2,974
3,281
65
3,139
3,637
60
3,255
3,572
67
33, 993
33, 025
695
53, 081
44,154
882
-36.0
-25.2
-21.2
Total
$80,970 $25, 950 $58, 519 $11, 596 $55,830 $45, 456 $278, 321
U N I T E D STATES
-23.4
Banks
M u t u a l IndiOther
and
trust savings v i d u a l s mortbanks
gagees
companies
Boston
8,349
843
2,197
5,963
4,833
1,988
24,173
997
534
5,961
468
77
265
727
255
780
1,457
472
3,275
1,266
358
2,622
1,092
55
650
6,007
1,751
13, 553
198
547
112
10
19
4
101
277
57
273
332
154
162
333
92
10
177
4
754
1,685
423
6,624
1,140
6,092
477
663
3, 344
2, 748
3,821
413
3,408
8,580
3,283
5,297
5,593
3,246
3,378
2,980
2,613
31,850
13, 743
18,107
6,326
193
5,361
772
2,769
5,675
249
4,270
1,156
685
4,041
4,109
23, 605
79
595
11
211
3,280
550
50
3,895
164
1,420
19,136
3,049
Winston-Salem
Alabama
District of Columbia
Florida
Georgia
Maryland
North Carolina
South Carolina. .
Virginia
10,107
4,269
6,355
965
4,649
357
3,711
377
110
307
426
29, 201
2,432
1,811
405
1,072
3,421
665
404
636
289
270
327
800
554
830
1,192
818
917
723
407
548
1,266
4,299
2,735
3,874
6,557
1,263
222
227
520
427
2, 659
362
1,466
230
1,466
272
884
359
754
261
591
1,484
5,161
Cincinnati
Kentucky
Ohio
Tennessee
16, 504
1,882
14, 099
523
3,997
351
3,079
567
8,128
534
3,636
4,119
768
6,985
375
534
207
3,129
300
118
2,688
1,313
36,918
3,326
30, 514
3,078
4,366
2,840
1,526
3,072
6,919
2,736
4,183
38
38
2,077
791
1,286
4,367
1,124
3, 243
20, 839
939
2,133
7,455
5,785
1,670
1,586
1,200
386
4,849
3,285
1,564
4,727
1,152
1,686
1,697
158
34
1,972
3,347
806
616
1,786
59
80
4,622
2,573
207
453
101
10
1,802
999
Connecticut . . .
Maine
Massachusetts
New
Hampshire
Rhode Island..
Vermont
N e w York
N e w Jersey
New York
Pittsburgh
Delaware
Pennsylvania. .
W e s t Virginia. _
Indianapolis
Indiana
Michigan
.
Chicago
Illinois
Wisconsin
Des Moines
Iowa
Minnesota
,
Missouri
North Dakota .
South D a k o t a . .
Little Rock
Arkansas
Louisiana
Mississippi
N e w M e x i c o . _.
Texas
. .
'
28T
1,373
212
82
2,672
638
1,735
396
171
902
820
79
10
3,850
6,893
6,239
654
24,643
2,177
1,673
65
3,243
2,572
15, 926
448
1,073
1,595
43
84
259
220
2,074
15
4
2,836
4,562
7,972
354
202
3,483
163
552
405
177
2,186
2,495
116
93
177
54
559
257
400
201
13
1,624
14,172
1, 026
2,871
1,096
336
8,843
1,731
191
724
247
569
2,176
1,069
362
234
511
2,290
562
735
132
861
10,806
2,416
2,916
1,625
3,849
1,528
157
190
617
115
371
78
2,566
9,715
61
48
665
60
1,713
19
380
435
2,433
1,098
5,206
163
12,028
512
11, 306
210
3,815
36,473
845
35, 282
346
3,767
556
957
706
1,548
842
Portland
Idaho
Montana
Oregon.
Utah
Washington
Wyoming
2,585
685
12
42
276
90
265
1,981
46
62
231
510
1,108
24
2,202
12,890
131
12, 705
54
Los Angeles
Arizona
California
Nevada
104
93
622
323
1,401
42
_.
..
5,538
172
5,296
70
13
2,184
5
8,468
12, 371
10
Topeka
Colorado
Kansas
Nebraska
O k l a h o m a . _. .
38
138
306
360
110
65
370
22
348
17
3,791
7
18,686
5,957
' Revised.
January 1943
I25
Table 9 . — M O R T G A G E RECORDINGS—Estimated volume of nonfarm mortsages recorded
[Amounts are shown in thousands of dollars]
Savings and loan
associations
Insurance
companies
Banks and trust
companies
Mutual savings banks
Individuals
Other
mortgagees
All
mortgagees
Period
Total
Percent
Total
Percent
Total
1941: November.
December.
$113,353
112,764
30.0
28.7
$32, 527
37,185
9.5
$92,316
99,855
1942: J a n u a r y . . .
February..
March
April.
May
June..
July.
August
September
October...
November.
90, 572
86, 752
100, 296
108, 582
107,937
105, 278
104, 712
102, 628
104,155
103,170
80, 970
28.2
29.3
29.9
30.2
30.8
30.8
29.6
30.5
30.1
28.9
29.1
31,062
28,546
32, 650
34,466
31, 780
29, 764
31,898
28, 299
31,448
32,577
25, 950
9.7
9.7
9.7
9.6
9.1
8.7
9.0
8.4
9.1
9.1
9.3
77, 631
70, 221
78,086
82,082
77, 563
74, 588
80, 736
72, 480
77, 530
79, 224
58,519
Percent
Percent
Total
24.4 $19, 653
25.5 19, 253
5.2 $64,024
4.9 64,524
13, 523
10,405
12,162
15, 310
15, 904
16,043
15, 669
14,793
14,812
14,817
11, 596
24.1
23.7
23.3
22.8
22.2
21.8
22.8
21.5
22.4
22.2
21.0
Percent
Total
4.2
3.5
3.6
4.2
4.5
4.7
4.4
4.4
4.3
4.2
4.2
59, 033
53, 383
60, 322
62, 707
63.807
62, 730
64.808
62, 824
65,423
67, 623
55, 830
1941: J a n . - N o v .
November.
December
January
February
March
April
May
June..
July
August
September
October
November
r
.
17.0 $55, 810
16.4 58, 774
14.8
15.0
$377, 683
392, 355
100.0
100.0
18.4
18.0
18.0
17.4
18.2
18.3
18.4
18.6
18.9
18.9
20.1
15.4
15.8
15.5
15.8
15.2
15.7
15.8
16.6
15.2
16.7
16.3
321,396
296,041
335, 636
359, 968
350,187
342, 250
353,511
336,850
345.964
357,083
278, 321
100.0
100.0
100.0
100.0
100.0
100. 0
100.0
100.0
100.0
100.0
100.0
49, 575
46, 734
52,120
56,821
53,196
53,847
55, 688
55, 826
52,596
59, 672
45, 456
Combined Pertotal
cent
[Premium-paying; thousands of dollars]
C o u n t y size (dwellings)
Period
Percent
Table 1 1 . — F H A — H o m e mortgages insured 1
Table 1 0 — F O R E C L O S U R E S — E s t i m a t e d nonfarm real-estate foreclosures, by size of county
U . S.
total
Total
M o n t h l y volume
Period
Less
than
5,000
5,00019,999
60,000
and
over
20,00059,999
54,044
4.204
4,337
5,944
448
524
8,341
705
659
11,633
890
1,028
28.126
2,161
2,126
39, 327
4,000
3,630
3,935
3,856
3,813
3,850
3,558
3,072
3,360
r
3,151
3,112
4,280
439
370
669
461
333
367
333
401
303
'470
364
6,318
635
592
678
561
623
637
565
499
527
524
486
8,803
814
808
863
867
968
835
727
707
818
683
718
19.916
2,112
1, 860
1,944
1,967
1,889
2,011
1,933
1, 465
1,717
r
1,474
1.544
Revised.
1941; N o v e m b e r
December
...
1942: J a n u a r y
February
March
April
May
June
July
August
September
October
November
Total
insured
a t e n d of
period
Title I
Class 3
Title I I
Title V I
$1,361
1,850
$76, 920
87, 516
$3, 578
5,294
$3,585,970
3, 680, 630
1.885
1,455
1,502
1,967
1,867
1,781
919
1,246
104
802
726
87,167
70, 799
67, 780
55,448
60,177
65,810
62, 728
51,813
47,573
44, 470
48, 964
6, 556
8,483
12, 273
11,424
13, 554
15,876
20, 621
25,030
31,524
38, 265
40,195
3, 776, 238
3,856,975
3, 938, 530
4,007, 369
4,082,967
4,166, 434
4, 250, 702
4,328, 791
4,407,992
4,491,529
4, 581,414
_
i Figures represent gross insurance written during the period and do not take
account of principal repayments on previously insured loans.
Table 1 2 . — F H L B A N K S — L e n d i n g operations and principal assets and liabilities
[Thousands of dollars]
L e n d i n g operations
N o v e m b e r 1942
P r i n c i p a l assets N o v e m b e r 30, 1942
C a p i t a l a n d principal liabilities
N o v e m b e r 30, 1942
Federal H o m e L o a n B a n k
Advances
Repayments
Advances
outstanding
725
$829
1.460
868
2,639
803
464
1,841
1,214
774
432
450
1,729
$10,181
21,813
11,541
11,868
9,753
9,084
19, 541
7,671
3,674
4,757
1,395
10,608
All B a n k s ( N o v e m b e r 1942).
4,011
13, 503
October 1942 .
5,690
19,065
N o v e m b e r 1941
9,930
7,157
Boston
.
New York
Pittsburgh._
Winston-Salem _ .
C i n c i n n a t i - __
Indianapolis
Chicago
.- . .
Des Moines
Little Rock
Topeka
_
Los A n g e l e s . . __
1
__
..
.
.
.
_ _
_ __ .
-_
_
_ -_
______
.. _ . .
._ . . . __ ....
._ . . .
_
. _ : _ - ._
.
_. _
$500
754
517
9
50
138
989
198
131
Cash
Government
securities
Capitall
$4,424
4,892
5,875
16,582
3,173
5,245
13,426
6,363
2,649
2,439
2,349
6,061
$10,296
10,101
8,163
5,874
17, 576
10,575
10, 392
7,017
7,300
5,920
7,899
6,621
$18,823
26,429
16,010
17,149
23,356
11, 886
21,647
11,280
12,188
10,143
8,164
14, 781
121,886
73, 478
107, 734
131,377
64, 528
106, 278
187,084
41,422
62,004
Debentures
Member
deposits
T otaassets
November
1942
$4,000
8,500
9,000
16, 500
2,500
9,000
16,000
8,500
1,500
2,000
3,000
7,000
$2,182
1,954
582
682
4,781
4,082
5,742
1,299
1
1,027
520
1,575
191,856
87, 500
24, 427
304, 228
191,377
87,500
23, 719
303,070
186, 622
75,500
25, 217
291,690
$25,017
36,924
25,674
34,407
30,660
25,013
43,471
21,118
13,693
13,176
11,692
23,383
Capital stock, surplus, and undivided profits.
126
Federal Home Loan Bank Review
Table 1 3 — S A V I N G S — S a l e s of war bonds 1
Table 1 4 . — S A V I N G S — H e l d by institutions
[Thousands of dollars]
[Thousands of dollars]
Series E 2
Period
1941
November
December..
-
Series F
Series G
$1,622,496
109,475
341,085
$207,681
18,977
33,272
$1,184,868
105,035
154, 242
$3,015,045
233,487
528, 599
667,411
397, 989
337,599
326,660
421,831
433,223
508,118
453,967
509,855
587, 900
541, 573
77, 559
51,820
41,070
40,003
42,465
41,041
73, 691
52,268
60,803
51, 321
44, 766
315,577
253,391
179,223
163,839
170,060
159,681
319,053
191,020
184,026
175,178
148,211
1,060, 547
703, 200
557,892
530, 502
634,357
633,945
900,862
697,255
754,684
814, 353
734,550
1942: J a n u a r y , . . .
February
March
April
Mav
June
July
August
September
October . _ _
November
1 U. S. Treasury War Savings Staff, Actual deposits made to the credit of
the U. S. Treasury.
2 Prior to May 1941: "Baby bonds."
Insured
savings a n d
loansi
E n d of period
Total
1940: J u n e
December
1941: J u n e
November
December.
1942: J a n u a r y
February
March
A p r i l . _.
May...
June
_
July
August
_.
September.......
October
_.
.
_.
$2,020,123
2, 202, 556
2,433, 513
2,552,037
2, 597, 525
2, 589,466
2, 600,172
2, 612,736
2, 633,014
2, 660,098
2, 736, 258
2,757,929
2,798,621
2,834, 079
2, 873.822
2, 912, 717
Mutual
savings
banks 2
$10, 589,838
10,617,759
Insured
commercial
banks»
10, 606, 224
$12,754, 750
13,062, 315
13,107,022
10,489, 679
13, 261,402
16, 354, 533
13,030, 610
1
Private repurchasable capital as reported to the FHLB Administration.
2 Month's Work. All deposits.
3 FDIC. Time deposits evidenced by savings passbooks.
Table 1 5 . — I N S U R E D A S S O C I A T I O N S — P r o s r e s s of institutions insured by the FSLIC
[Amounts are shown in thousands of dollars]
Operations
Federal
Home
L o a n B a n k N e w m o r t - N e w priPrivate
advances
v a t e investrepurgage loans
ments
chases
Total
assets
N e t first
mortgages
held
Private
repurchasable
capital
2,237
2,277
$2,709,184
2,932,305
$2,130,124
2,343,047
$2,020,123
2,202,556
$236,913
220,789
$124,133
171,347
$67,751
56,363
$43,626
65,586
$20,418
22,865
46.8
34 9
2,313
2,343
2,343
3,159, 763
3,303,286
3,362,942
2, 555, 393
2,738,311
2,751,938
2,433, 905
2,552,037
2,597,525
206,301
196,059
196,240
144,331
161,199
193,275
85,117
65,241
63, 506
61,448
60,818
74,801
26, 779
33,263
35,728
43 6
54.7
47.8
2,349
2,353
2,358
2,363
2,363
2,374
2,380
2,380
2,386
2,390
2,396
3,313,418
3,323,180
3,335,101
3,356,213
3,384,344
3,461,228
3,439,097
3,482,056
3,513,096
3,548, 692
3, 588, 995
2, 754,777
2, 763,579
2, 774,108
2,790,135
2,800,673
2,827,956
2, 837,925
2, 856,588
2,866,497
2,871,968
2, 875,165
2,589,466
2,600,172
2,612,736
2,633,014
2,660,098
2,736,258
2, 757,929
2, 798,621
2,834,079
2, 873,822
2, 912, 717
191,769
186,254
185,664
185,651
185,710
185,783
176,995
169,493
169,202
169,162
169, 257
180,360
172,260
167,535
161,571
157,870
170,066
152,302
139,670
125,308
113,856
103, 329
49,549
49,387
56,934
62,015
59,006
58,642
61,062
58,785
61,508
r 59,021
48, 017
105,792
53,449
56,701
58,193
53,808
72,788
103,821
70,262
68,082
73,124
64,697
118,666
47,229
47,086
40,443
31,503
26,152
87,059
41,534
40,114
37,720
30, 738
112.2
88.4
83 0
69.5
58.5
35 9
83.9
59.1
58 9
51 6
47 5
-
1,421
1,437
1, 725,817
1,871,379
1,403,289
1,544,494
1,266,041
1,386,823
197,268
181,431
90,489
127,255
47,435
37, 715
29,404
44,531
11,022
12,135
37 5
27 3
....
1,452
1,462
1,460
2,028,138
2,127, 561
2,173,326
1, 687,087
1,815,666
1,824,646
1, 553, 712
1,637,238
1,668,415
169, 247
159,925
160,060
103, 696
117,666
144,049
57, 542
41,910
41,182
40, 030
39,212
48,872
14, 530
18,984
20,400
36 3
48 4
41 7
1,461
1,461
1,461
1,464
1,464
1,464
1,465
1,464
1,466
1,466
1,468
2,131,212
2,133, 251
2,137,579
2,151,862
2,170,868
2,205,921
2,182,337
2,198,357
2, 214,101
2,235,726
2, 259, 670
1,824,376
1, 829,218
1,832,341
1,842,422
1,846,790
1,849,400
1,852,972
1,856,269
1, 861,062
1, 862, 593
1, 862, 796
1,658,444
1,662,269
1,667,983
1,683,232
1, 701,065
1,735,932
1,748,584
1,767,665
1,788,000
1,814,156
1,839,506
156,079
151,295
150, 776
150,776
150,776
150, 776
143,324
136,779
136,518
137,108
137, 208
132,843
127,235
123,748
118,639
116,327
127,623
113,347
103,180
92,943
83, 095
75, 865
31,142
31,919
36,325
38,484
36,966
35,279
37,007
36, 620
37, 987
»35,555
28,163
70,962
35,670
37,377
38,301
35,759
47,495
69,919
45, 724
44,589
47,222
42,076
81,663
30,714
30,000
24,088
18, 515
14,794
58.508
26,707
24,745
22,0] 9
18,174
816
840
983,367
1,060,926
726,835
798,553
754,082
815, 733
39, 645
39,358
33,644
44,092
20,316
18,648
14,222
21,055
9,396
10,730
66 1
51 0
861
881
883
1,131,625
1,175, 735
1,189,616
868, 307
922,645
927,292
800,193
914,799
929,110
37,054
36,134
36,180
40, 635
43,533
49,226
27, 575
23,331
22,324
21,418
21,606
25,929
12, 249
14,279
15,328
57 2
66 1
59 1
888
892
897
899
899
910
915
916
920
924
928
1,182,206
1,189,929
1,197,522
1,204,351
1,213,476
1,255,307
1,256,760
1,283,699
1,298, 995
1,312,966
1, 329, 325
930,401
934,361
941, 767
947,713
953,883
978,556
984,953
1,000,319
1,005,435
1,009,375
1,012, 369
931,022
937,903
944,753
949,782
959,033
1,000,326
1,009,345
1,030,956
1,046,079
1,059,666
1,073,211
35,690
34,959
34,888
34,875
34,934
35,007
33,671
32,714
32, 684
32,054
32,049
47,517
45,025
43,787
42,932
41, 543
42,443
38,955
36,490
32,365
30,761
27, 464 1
18,407
17,468
20,609
23,531
22,040
23,363
24,005
22,165
23,521
23,466
19,854
34,830
17,779
19,324
19,892
18,049
25,203
33,902
24,538
23,493
25,902
22,621
37,003
16, 515
17,086
16,355
12,988
11,358
28,551
14,827
15,369
15,701
12, 564 1
N u m b e r of
associations
Period a n d class of association
Governm e n t investment
Repur»
chase ratio
ALL INSURED
1940: J u n e . .
December
1941: J u n e __ .
November
December
._
_. ._
1942: J a n u a r y . _
February
March
April
May
June
July
August
September
October
November...
_
_
. _ .
FEDERAL
1940: J u n e . December
1941: J u n e _. . . .
November
December
_
1942: J a n u a r y
February
March
April
May
June
July
August
September
_
November...
115
86
80
62
51
31
83
58
65
46
43
1
1
3
9
8
1
7
4
6
6
2
STATE
1940: J u n e . .
December
1941: J u n e
November
December
1942: J a n u a r y
.
February
March
April
May
June
July
August...
September...
..
October
.....
November
.
^ ...
_
-.
____..
106.2
92 9
88.4
82 2
72.0
44.9
84 2
60 4
65.4
60.6
55.5
* Revised.
January 1943
127
Federal Home Loan Bank Officers
(Continued
from p. 112)
D I S T R I C T NO. 7—CHICAGO—Continued
Vice Chairman: H e n r y G. Zander, Jr., H e n r y G. Zander and
C o m p a n y (realtors), Chicago, Illinois (reappointed).
Class A Director: Ben F . Bohac, T a l m a n Federal Savings and
Loan Association, Chicago, Illinois.
Class B Director: Rilen McConachie, First Federal Savings
a n d Loan Association, Sparta, Illinois.
Class C Director: E d w a r d J. Czekala, National Savings a n d
Loan Association, Chicago, Illinois (reelected).
Director-at-Large:
William E. H o d n e t t , Lincoln Savings a n d
Loan Association, Lincoln, Illinois (reelected).
DISTRICT
NO. 1 1 — F E D E R A L H O M E L O A N B A N K
OF P O R T L A N D
Chairman: Ben A. P e r h a m , P e r h a m F r u i t Company, Yakima,
Washington (reappointed).
Vice Chairman: A. C. Boucher, Great Falls Building and
Loan Association, Great Falls, M o n t a n a .
Class A Director: R a y R. Glenn, Yakima Federal Savings
a n d Loan Association, Yakima, Washington.
Class B Director: Keith Powell, Salem Federal Savings a n d
Loan Association, Salem, Oregon.
Class C Director: C. O. Dierdorff, First Federal Savings and
Loan Association, E v e r e t t , Washington.
Director-at-Large: H . R. Grant, First Federal Savings and
Loan Association, Twin Falls, I d a h o .
DISTRICT
D I S T R I C T N O . 8 — F E D E R A L H O M E LOAN B A N K O F
DES MOINES
Chairman: Charles B. Robbins, Cedar Rapids Life Insurance
C o m p a n y , Cedar Rapids, Iowa (reappointed).
Vice Chairman: E. J. Russell, M a u r a n , Russell, a n d Crowell
(architects), St. Louis, Missouri (reappointed).
Class A Director: E. Paul Smith, St. Louis Federal Savings
a n d Loan Association, St. Louis, Missouri.
Class B Director: William F . St. Clair, Boone National Savings a n d Loan Association, Columbia, Missouri.
Class C Director: Walter H . Brown, Joplin Federal Savings
a n d Loan Association, Joplin, Missouri.
Director-at-Large:
H. A. Thompson, Gate City Building a n d
Loan Association, Fargo, N o r t h D a k o t a .
D I S T R I C T N O . 9 — F E D E R A L H O M E LOAN B A N K OF
LITTLE ROCK
Chairman:
Will C. Jones, Jr., Mercantile National Bank a t
Dallas, Dallas, Texas (reappointed).
Vice Chairman:
Wilbur P . Gulley, Pulaski Federal Savings
a n d Loan Association, Little Rock, Arkansas (reappointed).
Class A Director: J. J. Miranne, Security Building and Loan
Association, N e w Orleans, Louisiana (reelected).
Class B Director: R. H . McCune, Roswell Building and Loan
Association, Roswell, N e w Mexico (reelected).
Class C Director: H . T. Leonard, Kosciusko Building a n d
Loan Association, Kosciusko, Mississippi (reelected).
Director-at-Large:
Grover J. Casselberry, First Federal Savings a n d Loan Association, El Paso, Texas (reelected).
DISTRICT
NO. 10—FEDERAL H O M E
OF T O P E K A
LOAN
BANK
Chairman: Paul F . Good, Good and Simons (attorneys),
Lincoln, N e b r a s k a (reappointed).
Vice Chairman: L. W. Bauerle, Southwest Federal Savings
and Loan Association, Wichita, Kansas.
Class A Director: J. E. Barry, Jr., Oklahoma City Federal
Savings a n d Loan Association, Oklahoma City, Oklahoma.
Class B Director: Malcolm E. Collier, First Federal Savings
a n d Loan Association, Denver, Colorado.
Class C Director: A. G. Hartronft, Lyons Building and Loan
Association, Lyons, Kansas.
Director-at-Large:
E v a l d M. Forsyth, First Federal Savings
and Loan Association, Lincoln, N e b r a s k a (reelected).
128
NO. 12—FEDERAL H O M E LOAN BANK
O F LOS A N G E L E S
Chairman: David G. Davis, Raphael Weill a n d C o m p a n y ,
San Francisco, California (reappointed).
Vice Chairman: Horace S. Wilson, Southern California
Building and Loan Association, Los Angeles, California.
Class A Director: J. Arthur Younger, Citizens Federal Savings
and Loan Association, San Francisco, California.
Class B Director: C. A. Carden, Quaker City Federal Savings
and Loan Association, Whittier, California.
Class C Director: J. B. Kid well, E u r e k a Federal Savings a n d
Loan Association, San Francisco, California.
Director-at-Large: Douglas H . Driggs, Western Savings a n d
Loan Association, Phoenix, Arizona.
Amendment to Rules and Regulations
FHLBA
Bulletin No. 13
AMENDMENT TO THE RULES AND REGULATIONS FOR
THE FEDERAL SAVINGS AND LOAN SYSTEM RELATING
TO THE OWNERSHIP OF SHARE ACCOUNTS ACCEPTABLE
AS SECURITY FOR LOANS MADE BY FEDERAL ASSOCIA-
TIONS (Adopted December 16, 1942; effective December 17, 1942).
The authority of Federal savings and loan associations to make loans upon the security of their share
accounts has been broadened by a recent amendment
to Section 203 of the Rules and Regulations for the
Federal Savings and Loan System.
Subsection 20, now in effect, was proposed on
October 19, 1942 and printed in the November
REVIEW.
The text of the new amendment reads:
"203.20 Other loans and investments.
A Federal association having a C h a r t e r K j n a y invest its funds in loans t o
its members on t h e security of share accounts of t h e association owned by a m e m b e r other t h a n t h e borrower.
T o secure such loans t h e association shall obtain a lien
upon, or a pledge of, t h e share account. N o such loan
shall exceed 90 percent of t h e repurchase value of t h e
share account securing such loan. No such loan shall
be m a d e when t h e association has applications for repurchase which have been on file more t h a n 30 d a y s a n d
not reached for p a y m e n t . "
Federal Home Loan Bank Review
U. S . GOVERNMENT PRINTING O F F I C E : 1 9 4 3
FEDERAL HOME LOAN BANK DISTRICTS
M M
•
tOUNDARIEt Of FEDERAL HOME LOAN SANK OltTRICTS.
FEiERAt 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, Jr., Vice Chairman; A. R.
N E A V E S , President; H . N . F A U L K N E R , Vice President; L. E . D O N O V A N ,
G A R D N E R , President; J. P . D O M E I E R , Vice President; H . C. JONES,
Secretary-Treasurer; P . A. H E N D R I C K , Counsel; BEATRICE E . HOLLAND,
Treasurer; CONSTANCE M . W R I G H T , Secretary; UNGARO & SHERWOOD,
Assistant Secretary.
Counsel.
NEW
DES
YORK
MOINES
Chairman;
C. B . B O B B I N S , Chairman; E . J. R U S S E L L , Vice-Chairman; R. J. RICHARD-
N U G E N T 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 Treas-
GEORGE
MACDONALD,
Chairman; F .
V. D .
LLOYD,
Vice
D E N T O N C. L Y O N , Secretary; H. B . D I F F E N D E R F E R , Treasurer.
urer; EMMERT, JAMES, N E E D H A M & LINDGREN, Counsel.
PITTSBURGH
LITTLE ROCK
E . T . TRIGG, 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,
Secre tary -Treasurer.
W. C. JONES, J R . , Chairman; W . P . GULLEY, Vice Chairman; B . H .
WOOTEN, President; H . D . WALLACE, Vice President-Secretary; J. C.
CONWAY, Vice President; W. F . T A R V I N , Treasurer; W . H . CLARK, J R . ,
WINSTON-SALEM
Counsel.
TOPEKA
H . S. H A WORTH, Chairman; E . C. BALTZ, Vice Chairman; O. K. L A R O Q U E ,
President-Secretary;
J o s . W.
HOLT,
Vice
President-Treasurer;
P . F . GOOD, Chairman; L. W. B A U E R L E , Vice Chairman; C. A. STERLING,
President-Secretary; R . H . BURTON, Vice President-Treasurer; JOHN
S. D E A N , JR., General Counsel.
T . SPRUILL THORNTON, Counsel.
CINCINNATI
R.
P.
DIETZMAN,
Chairman; V M . M E G R U E
BROCK,
W A L T E R D . SHULTZ, President; W . E . J U L I U S , Vice
tary; A.
L.
MADDOX,
Treasurer;
TAFT,
Vice
STETTINIUS &
PORTLAND
Chairman;
President-Secre-
B E N A. PERHAM, Chairman; A. C. BOUCHER, Vice Chairman; F . H .
HOLLISTER,
JOHNSON,
General Counsel.
President-Secretary;
IRVING
BOGARDUS,
Vice
President-
Treasurer; Mrs. E . M . J E N N E S S , Assistant Secretary; V E R N E D U S E N BERY, Counsel.
INDIANAPOLIS
Los ANGELES
H . B . WELLS, Chairman; F . S. CANNON, Vice Chairman-Vice President;
D.
G. D A V I S , Chairman; H O R A C E S. W I L S O N , Vice Chairman; M . M .
F R E D T . G R E E N E , President; G. E . OHMART, Vice President; C. R U S S E L L
HURFORD,
PARKER,
Secretary-Treasurer; V I V I A N
Secretary-Treasurer;
D E V A U L T , Counsel.
HAMMOND,
BUSCHMANN,
KRIEG
&
President;
FREDERICKS, Attorney.
C. E .
BERRY,
SIMPSON,
Vice President;
Assistant
F . C.
Secretary;
NOON,
HELEN
@FedFRASER