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ik
FEDERAL
HOME
LOAN
BANK
ington, January 1944
FEDERAL N 0 M « , feOAH SANK ADMINISTRATION
• * *
WORTH REPEATING
DEFICIENCY PERCENTAGES:
"Despite the fact that Americans own
28,000,000 passenger cars, 20% of the
families in America do not have automobiles—one out of every five families.
"There are 13,500,000 telephones,
but 6 1 % of our families are without
them.
"There are 15,000,000 mechanical
home refrigerators, but 57% of our
families do not have one.
"Sixty percent of all our families do
not have central heating plants, no
matter that 14,500,000 homes are so
equipped.
"Nineteen million homes have private baths, but 45% of all American
families are not so provided.
"As cheap as radios are, 17% of our
families are without them, though
there are 29,000,000 radio-equipped
houses.
"Rural electrification and home improvement programs have gone a long
way toward bringing electricity to a
larger number of people, but 24% of
our families are still without electric
lights.
"Add up all these things to be done.
Put all the 56,000,000 available
workers in a job. Give them fair pay
for their services. We will be on our
way toward reducing these deficiency
percentages."
Thomas C. Bousball, before
Virginia Bankers Association,
December 1943.
FORESIGHT: ". . . The picture of
an area crowded with cheap factoryproduced homes a few years after
erection is not a pleasant one to contemplate. Apart from decrepitude,
there will probably be added the fault
that someone has pointed out as characteristic of too many modern materials: 'they will not grow old gracefully.'
"This pessimistic view of the possible
unpleasant effects of widespread use
of prefabricated or other factory-built
houses will not and should not be a
deterrent to their development. We
must assume that many of the mass
production structures will be sightly
and substantial. As for the others, we
cannot take them for granted. Their
adoption after the war may be quite
rapid, as many sizable firms, with capital to spend for promotion and large
plant facility which will be released
from war production, are making their
plans to go into this field. With foresight we may prevent their being
another evil visited upon cities. . . ."
Albert Charles Schweizer,
The American City, December 1943.
THE POST-WAR HOUSING CHALLENGE: " . . . The broad national
outlines of the need for housing have
been pretty well established. We
know we have the resources of manpower and materials. But we do not
have today specific community housing
goals. Lacking them, we cannot know
whether we have all the tools we need
to tackle the job. We must identify
and analyze specific problems, specific
needs, and specific opportunities so
that we can develop specific concrete
programs and solutions. The responsibility for this job of fact-finding,
analysis, and making plans cuts across
the whole housing field. It is shared
by builders and contractors, labor,
lending institutions, real estate boards,
local housing authorities, citizen organizations, and local governments.
Without these steps, we will, I am
afraid, find that blind faith in an
automatic upsurge of good housing
will prove a poor substitute for realistic preparations to overcome the
many very real obstacles and problems
that lie in the path of a successful
peacetime housing effort. . ."
John B. Blandford, Jr.,
before Citizens' Housing
Council of New York and
the National Association of
Housing Officials.
TRENDS: " . . . When the war is over,
there will be some trends which will accelerate municipal destruction. Persons with large investments in our cities
ought to understand what those
trends are, and ought to understand
what will further or stop them. This
does not mean that all of these trends
ought to be or can be stopped. . . .
We ought to know, however, what we
are doing when we encourage residential building at the outskirts, or commercial building where it does not
properly belong. If we know what
we're doing, we shouldn't complain at
the inevitable results."
American Society of Planning Officials News Letter,
December 1943
* * *
POST-WAR BOOKSHELF
Although inclusion of title does not
necessarily mean recommendation by the
Review, the following recent publications
will be of interest.
POST-WAR BIBLIOGRAPHY:
An
index of "some of the more important
material concerned with post-war
matters," prepared by the Library,
Division of Operating Statistics, Federal Home Loan Bank Administration,
Washington 25, D, C. Subjects include urban redevelopment and local
planning, houses, construction and
financing, and economic problems. A
limited number of mimeographed
copies are available to thrift and
home-financing institutions on request.
PUBLIC POLICY ON CONSTRUCTION: By Eric A. Johnston. Available from the Chamber of Commerce
of the United States, Washington 25,
D. C.
ESTIMATES OF FUTURE POPULATION
OF THE
UNITED
STATES, 1940-2000: Available at
35ff from the Superintendent of Documents, Government Printing Office,
Washington 25, D. C.
BUILDING CODES—AN ESSENTIAL TOOL IN URBAN DEVELOPMENT: Available from the Chamber of Commerce of the United
States, Washington 25, D. C.
RESIDENCE
DESIGN
FOR
SAFETY: By Grace Morin. New
Pencil Points. October 1943. $1.00
a single copy. Reinhold Publishing
Corporation, East Stroudsburg, Pa.
YOUR BUSINESS AFTER
THE
WAR: Available from the Research
Institute of America, Inc., 292 Madison Avenue, New York, N. Y.
THE ECONOMIC ALMANAC FOR
1943-44: 512 pp. Available at $5.00
from the National Industrial Conference Board, New York 17, N. Y.
SURVEY
OF HOME OWNERS'
DESIRES AS EXPRESSED
BY
READERS OF SMALL
HOMES
GUIDE: 40 pp. Available at $5.00
from National Homebuilders Bureau,
Inc., 2129 S Street NW., Washington
8, D. C , or 572 Madison Avenue, New
York 17, N. Y.
FEDERAL
JANUARY - 1944
HOME
Page
LOAN
How
C A N LOCAL I N S T I T U T I O N S H E L P TO STEM T H E T I D E OF
OVER-LENDING?
:
SAVINGS AND L O A N S F O L L O W U R B A N T R E N D
D I V I D E N D AND I N T E R E S T R A T E STRUCTURE OF M E M B E R A S S O C I A T I O N S .
91
96
99
BANK
*
*
*
REVIEW
NATIONAL HOUSING
AGENCY
John B. Blandford, Jr., Administrator
Home Front
Directory Changes of Member, Federal, and Insured Institutions
"Crack T r o o p s " of F o u r t h War Loan
Election and Appointment of Directors a n d Designation of C h a i r m e n
and Vice Chairmen of t h e Federal H o m e Loan Banks
Monthly Survey
90
95
101
104
107
FEDERAL HOME LOAN
BANK ADMINISTRATION
John H. Fahey. Commissioner
•
•
•
FEDERAL HOME LOAN
BANK SYSTEM
TABLES:
FEDERAL SAYINGS AND LOAN
ASSOCIATIONS
FEDERAL SAVINGS AND LOAN
INSURANCE CORPORATION
HOME OWNERS' LOAN
CORPORATION
UNITED STATES HOUSING
CORPORATION
Vol. 10
New family-dwelling units
Building costs
Savings and loan lending
Mortgage recordings
T o t a l nonfarm foreclosures
F H A activity
Federal H o m e Loan Banks
Sales of U. S. war savings bonds
Savings in selected financial institutions
Insured savings a n d loan associations
.
111-112
112-113
113-114
114-115
115
H5
115
116
116
116
No. 4
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 2o? D. C.
APPROVED BY T H E BUREAU OF T H E B U D G E T
01
u
h
ivjijL
Savings and loans in
Albert Lea
I n t h e making of t h e famous postwar community survey a t Albert Lea,
Minnesota, which has become t h e
accepted model for post-war planning
b y smaller communities, a m e m b e r of
t h e Federal H o m e Loan B a n k System
played a worthy p a r t .
As t h e first step toward becoming a
"post-war planning guinea-pig," t h e
t o w n ' s Chamber of Commerce (of
which t h e president h a p p e n s t o be a
director of t h e Albert Lea Building
a n d Loan Association) set u p t h e
Albert Lea-Freeborn C o u n t y PostWar Planning Committee, a continuing body. There were subcommittees
on t h e subjects of employment, public
works, private construction, a n d finance. T h e last was composed of t h e
president of one of t h e two banks, t h e
cashier of another, a n d t h e secretary of
t h e Albert Lea Building a n d Loan
Association. As his contribution, he
" d u g out t h e necessary figures" which
showed t h a t t h e people of this town of
13,000 population planned t o build or
b u y 442 new homes after t h e War,
with 150 new farm homes contemplated. Citizens also planned repairs
costing more t h a n $300 t o 714 city
houses, according to t h e survey, and
major repairs, a t an average cost of
$900, to 540 farm homes.
T h e printed forms a n d technique
which enabled t h e town t o obtain full
d a t a on its post-war e m p l o y m e n t
prospects a n d buying intentions of t h e
people in t h e town a n d county are
now being m a d e available by t h e Committee for Economic Development, and
the U. S. Chamber of Commerce to
various local planning groups in n u m bers
of
interested
communities
throughout t h e country. I t is probable
t h a t in m a n y other towns t h e savings
a n d loan officials will welcome t h e
opportunity to help in supplying d a t a
on t h e prospects for post-war home
construction a n d related subjects in
their respective communities.
T h e people of Albert Lea, m e a n while, are not basking in reflected
90
1
glory. T h e local savings a n d loan
association writes, '"'From now on, the
real work will have to be done of
p u t t i n g t h e plan into practice a n d
actually creating or bringing a b o u t t h e
results which t h e survey shows are
possible * * * T h e large bond
account we are creating together with
our line of credit a t t h e Federal H o m e
Loan Bank assures us t h a t we will have
ample funds to t a k e care of a n y reasonable a m o u n t of new customers."
i? it
NHA
it
it
it
regional offices
T h e following changes were announced last m o n t h in regional offices
of t h e National Housing Agency
(regional offices of the Federal HousingAdministration a n d the Federal Public
Housing Authority not being affected):
Region I I I , Washington, D. C , is
abolished, a sub-office being set up in
Baltimore, and the District of Columbia being handled through N H A headquarters; Region I I , New York City,
now includes Maryland and Delaware;
Region IV, Atlanta, now includes
Virginia; Region V, Cleveland, is
abolished; Region VI, Chicago, now
includes Illinois, Wisconsin, Indiana,
West Virginia, K e n t u c k y , Ohio, and
Michigan, formerly in other regions;
Region V I I , Kansas City, now includes
Kansas, Utah, Wyoming, Colorado,
Nebraska, N o r t h and South D a k o t a ,
Iowa, Minnesota, a n d Missouri.
A
saving of $85,000 is anticipated.
it it it it
it
V a l u e of 1943 construction drops
T h e value of new construction in the
United States during 1943 dropped 43
percent from the peak level of 1942,
according to preliminary estimates
m a d e by the U. S. D e p a r t m e n t of Commerce. This decline which is, in a
sense, both cause and effect of t h e
diversion of considerable labor a n d
materials to more essential war activities, showed signs of levelling off.
About two-thirds of t h e t o t a l value
of $7.7 billion was represented by $2.7
billion in military a n d naval construction a n d $2.2 billion in industrial
building.
it it it it
it
Home Planners' Institutes
besin in West
I n Portland, Oregon, Seattle, Washington, a n d Denver, Colorado, H o m e
Planners' I n s t i t u t e s , sponsored jointly
by local savings a n d loan associations
a n d t h e Western L u m b e r m e n ' s Association, are assembling g r o u p s of
prospective home owners t o discuss
possibilities. T h e Institutes, similar
t o other such groups organized u n d e r
savings a n d loan auspices in t h e E a s t
(see " H o m e F r o n t / ' F H L B R E V I E W ,
October 1943, p . 15), are stressing
t h e advantages of saving now, t h r o u g h
war bonds a n d share accounts, t o
a c c u m u l a t e t h e down p a y m e n t on a
post-war h o m e ; t h e y feature an efficient, well-organized educational activity. I n t h e first I n s t i t u t e , begun in
P o r t l a n d in October, lectures are being
given b y architects, real-estate men,
landscape architects, interior decorators, a n d other specialists (none connected with t h e sponsoring agencies)
upon site selection, design, construction, equipment, financing, a n d m a n y
other phases of home ownership.
Classes, held once a m o n t h in t h e
savings a n d loan association lobby,
include a lecture a n d discussion a n d
question period, with an association
staff m e m b e r serving as chairman.
No fee is charged for enrolling in
the I n s t i t u t e , t h e only obligation
being t h e regular purchase of war
bonds or deposit of funds t o secure
t h e down p a y m e n t on a home.
Costs are borne by t h e sponsoring
agencies. Members m a y w i t h d r a w a t
a n y time without loss of funds a n d
m a y finance their future
homes
t h r o u g h a n y institution t h e y choose.
Plans for holding H o m e P l a n n e r s '
I n s t i t u t e s will be m a d e available t o
savings a n d loan-associations in other
communities t h r o u g h local l u m b e r
dealers.
Federal Home Loan Bank Review
HOW CAN LOCAL INSTITUTIONS HELP TO STEM
THE TIDE OF OVER-LENDING?
Adjustment of lending policies to inflationary real-estate prices
requires the development of new "working tools." This article is
designed to assist institutions in the formulation of plans to stem the
tide of over-lending.
• T H E shaping of lending policies to deal effectively
with inflationary tendencies in the real-estate market continues to hold the spotlight among current
problems of mortgage-lending institutions.
Since the August 1943 issue of the R E V I E W focused
attention on this subject in an article, "Lending Policies in a Competitive M a r k e t / ' additional evidence
of rising prices for existing properties has come forth.
Likewise, examples of liberal loans based on present
high valuations have multiplied. As an illustration
of rapid increases of property prices in many communities, data assembled by the Residential Research
Committee of Los Angeles have been cited. These
data are based on an analysis of over 300 sales made
during the third quarter of 1943 and involving properties previously sold in recent years. I t was found
that the sales prices of homes originally sold in 1940
and resold in 1943 increased 40 percent in the intervening period; from 1941 to 1943 prices rose 27 percent; from 1942 to 1943 the price advance was 22
percent; and on identical properties originally sold
in 1943 and resold during the third quarter of the
same year, sales prices were up 17 percent.
Federal Home Loan Bank Commissioner Fahey, in
his recent address before the War Conference of the
U. S. Savings and Loan League, presented a summary
of cases in which 1,186 HOLC loans refinanced by
private institutions were involved. 1 On the average,
the new mortgages were for amounts 78 percent
more than the HOLC balances at pay-off and exceeded the original HOLC loans on these properties
by over 4 percent; in some cases the new loan
amounts exceeded the original HOLC appraisals.
These are "straws in the wind" corroborated by
observations in a large number of communities
throughout the country. Of course, to the extent
that present real-estate transactions are financed by
cash or substantial down payments, inflationary
prices may be of no direct concern to mortgage lenders, except that "forced" purchases rampant in many
1
See "Commissioner Fahey on Inflationary Lending," FHLB REVIEW,
December 1943, p. 61.
January 1944
overcrowded war-industry areas cannot fail to inject
an element of instability into the post-war real-estate
market. However, there is unmistakable evidence
on a case basis that many refinancing and homepurchase transactions are being supported by highpercentage mortgages made for long terms on
security valued at current prices. I n a more general
fashion, recording statistics published regularly in
the R E V I E W point to a high volume of mortgage
financing activity, in the face of drastic curtailments
in construction lending; and an increase in the
average amount of mortgage loans rounds out the
picture of competitive pressure under which mortgage
lenders are operating.
A Constructive Approach
Fortunately, all classes of lending institutions have
become increasingly conscious of the dangers inherent in the present situation. At the same time,
efforts to "stem the tide" are being weakened by the
inclination of groups of mortgage lenders to place the
responsibility for unsound policies solely at the doorsteps of their competitors. I t goes without saying
that this approach, for which there is no basis in
known facts, is unlikely to make a constructive contribution to the solution of the problem.
The sound and practical reaction of many mortgage
lenders who recognize the seriousness of present
trends centers around the question "what can be done
about it." There is no general formula which would
meet the vastly different local conditions, or which
would fit into established operating practices of the
various lending institutions. Yet it is possible to
develop tools that can be of considerable assistance
in the necessary adjustment of lending policies to
present-day market conditions. To provide such
tools is the objective of the charts presented in this
article. The sole purpose of the charts is to furnish
food for thought. They do not claim to suggest a
ready-made, fixed formula but are rather illustrative
of the problem and of possible solutions.
91
Purpose of the Charts
I n developing the charts it has been necessary to
make certain assumptions as to the trend of property
prices. These assumptions are simply used for
illustrative purposes and, as such, are fairly extreme.
They do not represent forecasts of future real-estate
prices. Likewise, it was necessary to establish a
period in which property prices are assumed to have
been "normal." T h e year 1939 was selected as
such base period, again for purposes of illustration
only, and the hypothetical price advances were
spaced over subsequent years. I t is suggested that
mortgage lenders use their own observation and
judgment in substituting actual price increases in
their communities for the increases assumed in the
charts, and in selecting a base period of "normalcy"
which reflects actual local conditions.
In regard to the price level it is a well known fact
that even within one community real estate in the
various price brackets has shown different rates of
increase, with the lower-cost property generally
leading in price advances. This will require a
further refinement when actual data are used in
lieu of the hypothetical increases shown in the
charts. T h e base period should reflect market
conditions in which there was a normal interplay of
supply and demand for residential dwellings. This
generally presupposes a vacancy ratio of 3 to 5
percent, the absence of a large number of distressed
properties offered for sale and, from the purchaser's
point of view, a reasonable choice between various
types of accommodations with no compulsion to buy.
Although the scientific determination of a "normal
market" is an imposing undertaking, it should not
be difficult for mortgage lenders, equipped as they
are with a thorough knowledge of their community,
to make an intelligent selection of the base period.
From a practical point of view, the possible margins
of error in arriving at the base period are likely to
be less damaging in the final result than a "do nothing" policy motivated by the difficulty in finding a
period of reasonable normalcy. I n this connection,
it is well to recall that the British building societies
immediately after the outbreak of War decided, without much argument over definitions of "normal,"
that they would not make loans on appraisals exceeding 1939 valuations. This country is too large, and
real-estate recovery before the War was too spotty,
to permit a similar nationwide formula, but this does
not preclude sound and speedy determinations of
base periods for specific areas and localities.
92
ILLUSTRATION OF RIGID LENDING FORMULA
DOLLAR
AMOUNT
12,000
.NDEX OR
PERCENT
1 1,000
220
10,000
200
9,000
180
8,000
160
.^C
7,000
y ^
140
'^HYPOTHETICAL
PRICE
OF PROPERTY
120
6,000
100
5,000
80
4,000
^ORIGINAL
LOAN
( 8 0 % OF 1939 PRICE)
60
3,000
PERCENT OF ORIGINAL
TO CURRENT PRICE
2,000
1,000
A
^1939
1940
.... 1
1941
LOAN-^
1 ..
1942
1943
40
20
1944
1945
1946
V
DIVISION OF OPERATING STATIST
FEDERAL HOME LOAN BANK ADMINIST RATION
The above chart demonstrates the effects of a rigid, conservative lending formula upon the mortgage-loan percentage on the assumption that the local realestate market is rising rapidly. In this illustrative case it was assumed that the
1939 price of $5,000 was determined to represent the "standup value" of the property. It was further assumed that the same property would have a current
valuation of $7,500 in 1943, and $8,500 in 1944. Should the institution adhere
rigidly to its 1939 lending standard (80 percent of the appraisal for that year), only
$4,000 would be loaned regardless of price, and the required down payment would
be drastically increased. The lower curve on the chart (reading on the right-hand
scale) indicates that under these conditions the loan-to-appraisal ratio would
have declined from 80 percent in 1939 to 53 percent in 1943, and to 48 percent in
1944.
Chart 1 : Conservative A p p r o a c h
I t might be soundly contended by advocates of a
literal "hold the line" policy that absolutely no cognizance should be taken of increased market valuations, once prices have reached the "normal" level
as evidenced by past experience. I n other words, if
a lending institution has determined that $5,000 is
the price at which a piece of property has sold under
normal conditions, and if its policy limited its mortgages to 80 percent of appraisal, no amount in excess
of $4,000 would be loaned regardless of market price,
under this rigid policy.
Chart 1 illustrates the effects of adhering to this
"status quo" method. I n this illustration a $5,000
standup value 1 is assumed for 1939, and to demonstrate the principles involved, a continued upward
spiral is arbitrarily projected into the future.
Whereas the solid line shows the hypothetical market valuations, the dashed line moving horizontally
at $4,000 represents the fixed mortgage amount under
the rigid loan policy.
I t will be noted, by referring to the right-hand scale
on Chart 1, that by 1943 the hypothetical market
appraisal was 50 percent above the 1939 level, while
iThis phrase, now in common use, distinguishes the long-range value as distinct
from the current market.
Federal Home Loan Bank Review
by 1944 it was 70 percent in excess of this base point,
Relating the constant $4,000 loan to the current
market appraisals in these 2 years, it is observed
that the original loan-value ratio of 80 percent is
reduced to only 53 percent of the theoretical 1943
market appraisal, and to 48 percent of that in 1944
(lower curve).
example developed in this chart it has been assumed
that a $1 increase in loan amount for each $5 rise
in the current market price properly evaluates the
long-term element. In no instance, however, is it
anticipated that the loan amount should exceed the
1939 appraisal which, in the example on the chart,
was $5,000.
Chart 2: A Flexible Plan
The rigid loan policy described above assumes that
all price rises in the abnormal market are temporary
in nature, and that any loans which recognize these
increases represent unwarranted hazards. For some
communities and neighborhoods with a strong tendency toward continued growth this may be a rather
extreme assumption, although a far more desirable
Chart 3: Risks Under Flexible Plan
DOLLAR
AMOUN1
ILLUSTRATION OF FLEXIBLE LENDING FORMULA
J
12,000
NDEX
240
220
1 1,000
200
!
10,000
180
9,000
1 60
i
8,000
\
P ^HYPOTHETICAL
PROPERTY
7,000
1 40
INDEX OF
PRICES
If, under this flexible plan, higher loan amounts are
conceded to be justified and are granted to borrowers,
it will be desirable to have the "additional" amount
amortized in a shorter period of time than usual.
This is particularly important since mortgage lending under present conditions frequently involves an
accentuated "personal" risk as the permanence of
borrowers' war-swollen incomes is uncertain.
Chart 3 demonstrates the risks of maintaining the
usual long terms of amortization if the loan amount
has been increased. The amortization curve on a
15-year mortgage will, of course, not be reduced to the
same level on a $4,800 loan as on a $4,000 loan, until
both reach zero at maturity. I n fact, after 58
months—nearly 5 years—the unpaid balance on the
larger loan would still be over $600 higher than if
120
6,000
100
EFFECTS OF SHORTENED MATURITY
UPON* LOAN AMORTIZATION
5,000
LOAN
ABLE
AMOUfi JT
,
80
4,000
60
INTEREST AT
DOLLAR
AMOUNT
5,000
3,000
1,000
39
1940
1941
1942
1943
1944
1945
1946V
20
extreme than that which allows loan amounts to
ride hard on the heels of the current market. In
other areas, real-estate values may have staged an
incomplete recovery from the effects of the great
depression. I n such cases, a more flexible policy
may be warranted.
The flexible loan plan illustrated in Chart 2 is
based on the theory that the bulk of the price rise is
temporary, but that a portion of the increase constitutes a long-term gain in property value. In the
January 1944
4,000
!
^
v * v .!
V
DIVISION OF OPERATING STATISTIC
FEDERAL HOME LOAN BANK AOMINIST
This chart illustrates, through the use of arbitrary market assumptions, the
application of a flexible lending formula. A rise in prices does not necessarily
indicate that all of the increase represents unwarranted risk. However, in a
rapidly rising market, a very high proportion of the increase is usually temporary
in nature. This chart assumes that, under conditions in the particular community, it is safe for the mortgage lender to allow an increase of the loan amount
by 1 percent for every 5-percent rise in price, up to but not exceeding the amount of
the 1939 appraisal. At this rate, with the market price rising $2,500 from 1939
through 1943, this formula would allow an increase of $500 above the original
$4,000 (80 percent of the 1939 appraisal) loanable under the institution's policy.
Reading on the right-hand scale, this means that the total allowable loan amount
of $4,500under this plan woul d be the equivalent of 90percent of the 1939 appraisal.
OOLLAR
AMOUNT
5,000
i
40
2,000
A
\s
5%
$ 4 0 0 0 X**s
130 MO
4,000
^
4,80 3
180 ItAOS.
'<*
3,000
Vs*
N
3,000
V N J ^"*S.
\
2,000
$
...
1 ^"V
A
»,800
32 MC
)S.
1,000
3
12
24
36
48
60
72
84
96
MONTHS
\
N
2,000
\ \—
\
\\
108
120
!
1,000
\
132
144
156
X
168
0
1 30
DIVISION OF OPERATE STATICS
FEDERAL HOME LOAN BANK ADMINISTRATION
The necessity for shortening the amortization period in an instance where the
loan amount has been increased (in a rising real estate market) is demonstrated
in this chart. The solid line represents the unpaid balance of the $1,000 loan at
180 months—the mortgage terms of the institution on a $5,000 property in 1939.
The broken line portrays the extent to which additional risk would be taken
throughout the entire life of the mortgage, should the loan amount be increased
to $4,800 without a corollary reduction in amortization period. The dashed line
demonstrates that, with the loan period shortened to 132 months, the additional
risk would be written off entirely within 58 months. On the other hand, were
the period not shortened, the unpaid balance of the $4,800 loan would be written
down only to about $3,650 after 58 months, as compared with a $3,030 figure for
each of the other plans.
93
SELECTED LOAN AMORTIZATION CURVES
UNDER A FLEXIBLE LENDING FORMULA
INTEREST AT J>%
DOLLAR
AMOUNT
5,000
i
v.. !
4,000
1
i
NX<s
DOLLAR
AMOUNT
]
[
i
1 I
1
!
1
J
3,000
3,000
W
V V
2,000
2,000
.. \ i
w
1,000
\
V
X<J
k
$4,000
JS^I80M0S.
1,000
•J
^
j \
AV*4.4<KNV
1
\ $4,800 \
$ 5,000'^ \
j \ / I
120 MOii. *•. | \
0
12
24
36
48
60
72
84
1
J
96
108
156
\ 132 MOS.NTMOS.
>
\ >
Chart 4: Safeguards under Flexible Plan
\
**4
XL
1
120
132
144
would be identical—up to the point of coincidence
of the two curves—had $4,000 been loaned for 180
months and an additional $800 loan been granted for
but 58 months. Under the illustrated plan, however,
the lender would have more freedom of action at the
end of the 58 months. If the borrower, over the
intervening period, had demonstrated that he was a
prime personal risk, the institution could well afford
to extend the terms on the unpaid balance at that
time. On the other hand, if the borrower had allowed
the property to deteriorate or if loan payments had
been unsatisfactory, the lender might well wish to
continue at the accelerated rate established in the
contract for the "flexible loan."
\
156
168
180
MONTHS
DIVISION OF OPERATING STATISTICS
FEDERAL HOME LOAN BANK ADMINISTRATION
In the above chart the solid line shows the unpaid balances of a $4,000 loan at
180 months (the standard terms on a $5,000 home for the institution) throughout
the life of the mortgage, as compared with three other possibilities under the
flexible loan plan. Should it be determined that $4,800 rather than $4,000 might
be loaned, the institution would require the loan to be retired more rapidly—
within 132 months (see dashed line). At the end of 58 months of amortization
this increased loan at shorter maturity would be amortized to slightly over $3,000—
the same amount that would have been outstanding had the $4,000 loan been
granted on 180-month terms in the first place.
$4,000 had been loaned on the same terms. On the
other hand, should the maturity of the $4,800 loan
be shortened to 132 months, the "cone of added
risk77 (the area between the solid and dashed curves
on the chart) would be reduced more rapidly until,
at the end of 58 months, the unpaid balance would be
down to the same level as under the rigid loan policy
($4,000) with a term of 180 months.
I t may be noted in passing that the "cone of added
risk" under the acceleration plan shown in Chart 3
The amortization curves discussed above have
shown the mechanics of the flexible plan for a loan at
the $4,800 level. By referring to the following table
it may be seen that, under this plan, such an amount
would not be allowable until the market for the $5,000
house had increased 80 percent (column 1). If the
same formula is applied for properties at lower or
higher price brackets, columns 2 and 3 can be
adjusted proportionately without affecting the levels
of the remaining observations which appear on the
table.
Following the $4,800 loan (in column 3) across,
it will be observed that the plan calls for complete
amortization in 132 months, rather than in 180
months which were the institution's usual terms.
In this example, it would take 27 months to amortize
such a 132 month loan to $4,000 (column 5). However, property depreciation must also be considered
in evaluating remaining risk. Column 6 shows
Schedule of loan amounts a n d amortizations under a flexible loan p l a n
[Example calculated on a 5-percent interest rate]
Price of
house w i t h
$5,000 s t a n d u p
value (when
index = 100)
H y p o t h e t i c a l index of p r o p e r t y prices
(2)
(1)
100
no
120
130
140
150
160
170
180
190
200
210
-_
_ -
-. ---
...
5,000
5,500
6,000
6,500
7,000
7,500
8,000
8,500
9,000
9,500
10, 000
10, 500
N u m b e r of
Allowable loan
N u m b e r of
m o n t h s to
a m o u n t u n d e r m o n t h s to comamortize loan
pletely
p l a n (starting
amortize loan
to $4,000
at 80 percent)
(3)
(4)
4,000
4,100
4,200
4, 300
4,400
4,500
4, 600
4, 700
4,800
4, 900
5,000
5,000
(7)
(6)
(5)
180
174
168
162
156
150
144
138
132
126
120
120
N u m b e r of
N u m b e r of
m o n t h s to
m o n t h s to
a m o r t i z e loan
amortize
all
to 80 p e r c e n t of
a
d
d
i t i o n a l risk
depreciated
2
i
n
v
o
l
v
e
d
!
standup value
6
11
15
19
22
24
26
27
28
29
29
10
16
21
26
29
32
34
35
35
36
36
78
72
68
66
64
62
60
58
55
52
52
i Assuming depreciation rate of 2 percent per year.
2 This represents the number of months accessary to bring the unpaid balance of the larger loan amounts with shorter maturity down to the unpaid balance of a
$4,000 loan with 180 months maturity.
94
Federal Home Loan Bank Review
that it would take 35 months to reduce the mortgage
to 80 percent of the depreciated "standup value,"
assuming property depreciation at the rate of 2
percent per year. Although this means that a large
portion of the excess risk would have been absorbed
by that time, the payments would not have yet
eliminated all of it. Time itself is an element of
hazard—no assurance being possible that the property or the personal risk involved would be as
sound as at the date of the original loan. The entire
additional risk would be wiped out only when the
unpaid balance of the $4,800 loan with 132 months
maturity was down to the unpaid balance of a $4,000
loan with 180 months maturity.
The time necessary to accomplish this is revealed
in column 7 of the table, and is graphically demonstrated through the selected amortization curves
in Chart 4. This represents the point at which the
"cone of added risk" disappears. In the case of the
$4,800 loan this would occur at the end of 58 months;
for a $4,600 loan at a term of 144 months the "cone"
would be eliminated within 62 months; a $5,000
loan with 120 months maturity would take only
52 months for the total amortization of all added
risk.
The behavior of the real-estate cycle is, of course,
inextricably tied in to the lending policy of a mortgage-lending institution and must be reckoned with
accordingly. Should the market turn sharply downward during the life of loans granted in the present
emergency, the institution might find itself with
excessively top-heavy loans unless due precautions
are taken through adjustment of loan terms. Even
should a systematic plan such as described above be
adopted, the institution would not again be back to
its original conservative position until the "cone of
added risk" has been completely amortized on all
loans. Hence the last column on the above table,
measuring this interval of added risk, should be
carefully studied.
PENNSYLVANIA:
Jtfftfe DIRECTORY
CHANGES
NOVEMBER
1 6 — D E C E M B E R 15,
1943
Key to Changes
*
**
#
##
0
00
Admission to Membership in Bank System.
Termination o] Membership in Bank System.
Federal Charter Granted.
Cancellation of Federal Charter.
Insurance Certificate Issued.
Insurance Certificate Canceled.
Philadelphia (continued):
* The Hutchinson Building and Loan Association, 925 West Huntingdon
Avenue.
** Pelham Building and Loan Association, 5606 Germantown Avenue
(sale of assets to Chestnut Hill Savings and Loan Association, Philadelphia, Pennsylvania).
** Second Caledonia Building Association, 724 South Broad Street.
** Tulpehocken Building and Loan Association of Philadelphia, 6444
Germantown Avenue (sale of assets to Chestnut Hill Savings and Loan
Association, Philadelphia, Pennsylvania).
Pittsburgh:
** Greenfield Building and Loan Association, 184 Greenfield Avenue
(merger with Park Savings and Loan Association, Pittsburgh, Pennsylvania) .
*0 Park Savings and Loan Association, 184 Greenfield Avenue.
Tamaqua:
*0 Home Building and Loan Association of Tamaqua, Pennsylvania, 138
West Broad Street.
DISTRICT N O . 4
GEORGIA:
Macon:
** The Bankers Health and Life Insurance Company, 211 Cotton
Avenue.
DISTRICT N O . 2
N E W JERSEV:
Bloomfield:
0 The First Savings and Loan Association of Bloomfield, New Jersey,
30 Broad Street.
Dover:
0 Dover Savings and Loan Association, 31 East Blackwell Street.
Irvington:
0 Pulaski Savings and Loan Association, 564 Grove Street.
Newark:
** Livingston Building and Loan Association, 181 North Ninth Street
(merger with Llewellyn-Edison Savings and Loan Association, West
Orange).
0 Thrift Savings and Loan Association, 4 North Ninth Street.
Toms River:
. 0 Jersey Shore Savings and Loan Association, 36 Washington Street.
DISTRICT N O . 5
OHIO:
Cincinnati:
* The Westwood Homestead Savings and Loan Association, 3002 Hard
son Avenue.
Dayton:
** Permanent Federal Savings and Loan Association, 22 North Ludlow
Street (merger with Washington Federal Savings and Loan Association, Dayton).
Toledo:
** Auburndale Savings and Loan Company (sale of assets to United
Savings and Loan Association, Toledo).
DISTRICT N O . 6
INDIANA:
Indianapolis:
0 Arsenal Building and Loan Association, 822 State Life Building.
DISTRICT N O . 3
PENNSYLVANIA:
Franklin (Venango County):
*0 Venango Savings and Loan Association, 1151 Liberty Street.
Philadelphia:
** Electric Building Association, 1010 Commercial Trust Building.
** The Equitable Building and Loan Association of Germantown, 5600
Germantown Avenue (sale of assets to Chestnut Hill Savings and Loan
Association, Philadelphia, Pennsylvania).
January 1944
DISTRICT N O . 7
ILLINOIS:
Berwyn:
0 Ridgeland Savings and Loan Association, 6725 West Cermak Road.
DISTRICT N O . 10
KANSAS:
Seneca:
** The Nemaha Building and Loan Association.
95
SAVINGS AND LOANS FOLLOW URBAN TREND
A survey of member associations of the Federal Home Loan Bank
System shows that, both in number and assets, members in metropolitan
districts far surpass those located outside of these districts.
•
A new geographical survey of the members of
the Federal Home Loan Bank System, by metropolitan districts, shows that, as might be expected,
savings and loan associations have followed the
trend of the population which they serve. The larger
number of members, and a still larger proportion of
total assets, are located in metropolitan districts
which comprise the cities of 50,000 or more population, their suburbs and satellite communities. (Members represent almost three-fifths of all operating
savings and loan associations and almost four-fifths
of their assets.) I t is clear that the industry as a
whole has followed the trend of Americans to city
and suburban, rather than small town life. This is a
basic fact from which various conclusions may be
drawn after examining more closely the picture
revealed by the survey.
Suburbs Make the Difference
Previous geographical studies of the Bank System
membership, based simply upon the size of incorporated cities, without their suburbs and satellite
communities, have fostered the belief that savings
and loan associations serve primarily the smaller
cities and towns. At the end of 1942, for example,
almost three-fifths of the members were found to be
within communities of '50,000 or less. More than
two-thirds were in communities of 100,000 or
smaller, and their assets represented almost half the
total resources of the membership.
However, the modern urban area, the "metropolitan district," is made up usually of one central
city and several adjacent communities which may
or may not be incorporated cities or towns. The
Census Bureau defines a metropolitan district as
consisting of at least one "central city" of 50,000 or
more population and including "adjacent and contiguous minor civil divisions having a population of
150 or more per square mile." In 1940, there were
140 such metropolitan districts encompassing every
city of 50,000 or over in continental United States.
From 1930 to 1940 the family population of smaller
cities and towns increased by 12 percent, that of
central cities by 16 percent, while families in the
"satellites" or suburbs grew by 26 percent. Within
the metropolitan districts by 1940 there were concentrated three-fifths of all the nonfarm people and
nonfarm dwelling units. Their inhabitants have
been more active than small town or small city people
in erecting new homes. Over 70 percent of the net
increase in the number of nonfarm dwelling units
from 1930 to 1940 was within the 140 metropolitan
districts, and Census data clearly indicate that the
rapid growth of the suburbs accounted for much of
the construction activity. Thus, any picture of the
location of American thrift and home-financing
institutions which is not based upon the metropolitan
district is obviously limited in value.
Associations Follow the Prevailing Trend
The distribution of member associations closely
conforms to the pattern shown by the Census. Of
the 3,737 members reporting for 1942, 2,239, or
almost 60 percent, were located in the metropolitan
districts. 1 These metropolitan associations held
an even greater concentration of aggregate assets,
$3,873,000,000 out of a total of $5,025,000,000, or 77
percent.
i Reports for only seven savings and loan members of the F H L B System were
excluded from the 1942 summaries. The present study would not have been
significantly affected by the inclusion of these associations, each of which was in
process of merger, consolidation, or receivership.
96
Federal Home Loan Bank Review
When the comparison is narrowed down by central
cities and their suburbs and by the smaller cities
and towns outside of the metropolitan districts,
further interesting comparisons are revealed. Of all
the member associations, 37 percent with 58 percent
of the total assets were in the central cities of the
metropolitan districts; 23 percent with 19 percent
of the assets were in the suburbs and satellites, and
40 percent of the member associations, holding,
however, only 23 percent of the total assets, were in
the smaller cities and towns located outside the 140
metropolitan districts of the United States.
The average size of institutions reflects these
comparisons. While the over-all average for all
member associations at the end of 1942 was $1,345,000, the average for those in metropolitan districts
was a good deal higher—$1,730,000. Central city
associations averaged $2,086,000; those in suburban
or satellite communities, $1,143,000; and those outside the metropolitan districts, only $770,000,
slightly more than half the size of the average member in the F H L B System.
RELATIONSHIP OF ASSETS TO NUMBER OF
NONFARM DWELLING UNITS
MEMBER
SAVINGS AND LOAN ASSOCIATIONS-DECEMBER
31,1942
BY POPULATION SIZE OF METROPOLITAN DISTRICTS AND OUTSIDE
POPULATION
GROUPS
2,500,000
AND
OVER
1,000,000
TO
2,500,000
1
500,000
TO
1,000,000
250,000
TO
500,000
UNDER
250,000
0$ O 1
':^ 6 6 l
.OT a o f» i
'*? 6 6 c
' o6(
OUTSIDE
METROP
DISTRICTS
EACH MONEY BAG REPRESENTS $ 1 0 0 IN ASSETS
EACH HOUSE REPRESENTS ONE DWELLING UNIT
DIVISION OF OPERATING STATISTICS
FEDERAL HOME LOAN BANK ADMINISTRATION
Location by Class of Association
Federals, insured, and uninsured State-chartered
members follow about the same pattern, except that
a higher proportion of the Federals are located outside the metropolitan districts—almost half, compared with one-third for the State-chartered institutions, both insured and uninsured. This is due
to the establishment of new Federals in smaller
communities which, before the Home Owners' Loan
Act was passed, had no adequate home-financing
facilities. However, these Federals outside the
metropolitan districts hold only one-fifth of the
total assets of all Federals or a slightly lower
proportion than was reported for State members.
As between insured and uninsured State-chartered
member associations, the chief point of interest is
that the insured State associations, both in number
and assets, are more concentrated in the central
cities, while the uninsured State members are relatively stronger than the insured associations in
the suburbs.
people—are found one-fifth of all member associations and little less than one-fifth of the total assets.
The remaining assets are about evenly distributed
over the four smaller sizes of metropolitan districts.
But the average size of association does not follow
the size of the city. Associations in the group including the four largest metropolitan areas are smaller, on
the average, than those in the other districts. They
average only $1,253,000, which is below the national
membership average. This is explained by the
presence of many small institutions in the New
Jersey suburban towns and in Chicago and Philadelphia. Associations of the largest average size are
found in districts of a quarter to half a million population. Those in districts between a half million
and a million and in districts of less than 250,000
population show about the same average size—
$1,800,000. The same pattern holds generally for
each class of association.
Distribution by Size of Metropolitan District
It is the comparison between the percentage of all
American nonfarm homes which are found in the
central cities, their suburbs, and the smaller towns
outside metropolitan districts, and the percentage of
member association assets in these areas, which reveals the key to the significance of this geographical
A chart compares the distribution of the membership within metropolitan districts of various sizes.
In the four largest areas—New York (including
northeastern New Jersey), Chicago, Los Angeles,
and Philadelphia, each having 2,500,000 or more
January 1944
566152—44
Ratio of Assets to Homes
97
2
pattern. I t is natural that savings and loan associations should follow the population pattern. But the
accompanying charts indicate clearly that suburban
associations hold a relatively greater share of resources in the savings and loan Held than those in the
smaller towns, and likewise those in the central cities
are of greater relative importance than those in the
suburbs. Member savings and loan associations in
central cities hold about three-fifths of all assets of
the membership, although only two-fifths of all nonfarm dwelling units are located there (and many of
these, of course, are apartments in which associations
are not generally interested). In suburban or satellite communities, which have about one-fifth of all
nonfarm dwelling units, the savings and loan associations hold approximately one-fifth of the total
assets. In other words, the suburban member associations seem to be about holding their own in the
relationship of their share of total resources, to their
share of the total homes.
Small Town Associations
Savings and loan associations located in the smaller
cities and towns beyond the metropolitan districts
are relatively small in magnitude, although the small
town is the traditional stronghold of this class of
home mortgagee. Although two-fifths of all the
members are located outside metropolitan districts,
they report only one-fifth of the total assets of the
membership despite the fact that two-fifths of all
American homes, other than those on farms, are in
communities outside the 140 metropolitan districts
listed by the Census.
A breakdown for the entire industry, not just the
Bank membership, might of course be different,
although indications are that the picture for the
industry as a whole would be rather similar. While
the nonmembers, generally, are much smaller than
the members, they are located both in metropolitan
districts and small towns, with a large number,
perhaps a majority, being situated in certain metropolitan areas.
Conclusions
In later issues the R E V I E W hopes to present a survey of balance-sheet and operating characteristics of
associations on the same geographical basis. The
present study, however, based only on the number and
assets of member associations by type of community,
shows clearly that savings and loan associations have
followed the trend of population to the suburbs in
two ways: by establishing themselves there physically, and by increased suburban lending of the
"downtown" institutions. These central-city associations evidently compete successfully, not only with
other types of mortgage-lenders, but with suburban
members of their own industry. Meanwhile, the
small-town association, like the small town itself,
holds a position of less comparative importance than
has been the case in the past.
RELATIVE STATUS OF MEMBER SAVINGS AND LOAN ASSOCIATIONS
WITHIN
NUMBER OF
ASSOCIATIONS
AND
OUTSIDE METROPOLITAN
DECEMBER 31, 1942
ASSETS OF
ASSOCIATIONS
%n.i
DISTRICTS
NUMBER OF
NONFARM DWELLING UNITS
(1940 CENSUS)
^
DIVISION OF OPERATING STATISTICS
FEDERAL HOME LOAN BANK ADMINISTRATION
98
Federal Home Loan Bank Review
DIVIDEND AND INTEREST RATE STRUCTURE OF
MEMBER ASSOCIATIONS
Inquiry among savings and loan executives has shown that questions
relating to dividend and interest rates rank high on the list of vital
topics. As a point of departure in planning future policies, this study
of the 1942 rate structures should prove useful to institution management.
The article is based on a recent analysis made by the Division
of Operating
Statistics.
•
I N T E R E S T and dividend rates, subjects of
perennial concern to savings and loan associations, are assuming added importance in wartime
operations. Conditions resulting from the current
"easy" money market, the increasing competitive
activity induced by reduction of lending opportunities, and the uncertainties of the future, combine
to make adjustments of these rates a matter of
paramount importance.
Evidence has been accumulating from numerous
sources that points to a long-time downward trend
in these major income and expense items. However,
little current information has been available on the
interest and dividend rate structure prevailing within
the savings and loan industry. A recent study,
made by the Division of Operating Statistics, of
3,413 member associations provides a comprehensive
picture of this situation within the Bank System in
1942. Analysis of these figures shows an interesting
pattern in the relationships of the average rates of
both interest and dividends as between various assetsize groups as well as by type of institution included
in this survey.
A v e r a g e Interest Rate Drops
The average interest rate received by all reporting
associations on existing mortgages (the rate per
$100 of indebtedness) was found to be 5.72 percent
in 1942—0.2 percent less than the average as reported
in the 1940 Mortgage Census. 1 The differing bases
of these two studies do not permit too strict a comparison, but the similarity is sufficient to indicate
that there has been a small decline over the 2-year
period. These data, based as they are on interest
rates received on existing mortgages, are at the same
time indicative of a still greater decline in the rates
being charged on new loans.
* See, FHLB REVIEW, "New Light on the Home-Mortgage Structure/' March
1943, p. 173, and "Final Results of the Mortgage Census," August 1943, p. 327.
January 1944
PERCENTAGE
PAID
DISTRIBUTION OF INTEREST RATES
INDIVIDUAL MEMBER SAVINGS AND LOAN ASSOCIATIONS
„
r—k I I
UNDER
4.5 %
4.5%
5.0%
5 5%
6 0 %
11
I'J
6.5%
7.0%
m
OVER
7.0 %
Asset Size and Interest Rate
One of the most interesting patterns to emerge
from these statistics is the almost complete correlation between average interest rate and average asset
size of member associations. From an average rate
of 5.49 percent for associations of $10 million or over,
there is a persistent increase to 6.51 percent for those
associations with assets of less than $50,000. The
only break in this progression is the identical rate of
5.62 percent for members in the $5 million to $10
million group and those in the next lower group—
$2,500,000 to $5 million. This same situation,
wherein the larger associations tend to show the
lower interest rates, appears fairly consistently in
the pattern for all classes of associations.
Eeference to page 96 (" Savings and Loans Follow
Urban Trend") will indicate that the larger associations tend to be located in metropolitan areas
where the loan competition is naturally greater and
where money rates tend to be lower, which is very
probably one explanation of this situation.
99
" T r a d i t i o n a l ' 1 Range Has Adherents
PERCENTAGE DISTRIBUTION OF DIVIDEND RATES
In spite of the lower average interest rate apparent
from this as well as other studies, the range of the
" traditional" 6-percent rate still has the largest
number of adherents. The survey shows that this
range, from 5.75 to 6.24 percent, was most common
among 1,883 of the 3,413 reporting member associations. Among the smallest institutions (under
$50,000), 45 percent fell within this range, while at
the other end of the size groups (over $10 million)
there were only 15 percent. The greatest concentration in this range was found among associations
in the $100,000 to $250,000 group. In general,
interest rates reported by all size groups tended to
be concentrated at or below 6 percent, but in the
smaller institutions the rates were closer to the 6percent level while the institutions of greater size
more generally showed lower rates.
PERCE T
PAID BY INDIVIDUAL MEMBER SAVINGS AND LOAN ASSOCIATIONS
1942
40
1
I J
n
m t 1 r.l 11 \\ fn m 1
4.0%
4.5%
5.0%
DIVISION OF OPERATING STATISTICS
DERAL HOME LOAN BANK ADMINISTRATION
provides material for several interesting comparisons.
These data show that the average weighted dividend
rate (average amount paid per $100 of capital in
the institution) for all member associations had
dropped from 3.42 percent in 1941 to 3.27 percent
in 1942.
Dividend payments, studied in relation to the
proportion of net income set aside for reserves, show
the effects of the tendency during the first year of
war to strengthen reserve positions. In 1942, the
amount paid as dividends amounted to 69 percent
of the net income of all member associations whereas
the previous year they absorbed 71 percent. Reduced
dividends thus enabled these institutions to set
aside 31 percent of their 1942 net income for reserves
compared with an allocation of only 29 percent for
the same purpose in 1941.
(Continued on p. 103)
Dividend Rates A l s o Decline
Just as interest rates are tied in with general moneymarket conditions, so dividend rat^s are subject to
the same influences. As earnings go down, dividends
usually are adjusted to conform. All evidence points
to the fact that there has been a general decline in
dividend rates during recent years.
Another influence has also been at work to effect
a lowering of the dividend-rate structure. Because
of the extreme uncertainty as to what conditions
the war and post-war years may bring, these rates
have been reduced to facilitate the more rapid
accumulation of reserves against an unpredictable
future.
Information gathered by the Division of Operating
Statistics analyzing 1941 as well as 1942 dividendrate structures of the Bank System membership
A v e r a g e interest a n d d i v i d e n d rates reported b y 3,413 member savings a n d loan associations, 1 9 4 2
Average dividend r a t e
Average interest rate
Asset size (in thousands)
All
members
$10,000 and over
$5,000-$10,000 _
$2,500-$5,000
__
$l,000-$2,500
$500-$l,000
$250-$500
$100-$250
$50-$100
U n d e r $50
100
_
_
5. 72
5.49
5. 62
5. 62
5.81
5. 91
6.07
6. 18
6. 22
6. 51
Federal
5. 67
5. 38
5. 54
5. 56
5. 83
5. 92
6. 08
6.31
6. 50
6. 91
Insured
State
5.76
5. 58
5. 72
5. 75
5. 76
5. 88
6. 19
6. 20
6. 19
7. 25
Uninsured
State
All
members
5. 76
5.59
5.71
5.58
5. 83
5. 93
6. 00
6. 10
6. 13
6. 24
3.27
3. 10
3. 17
3. 19
3. 30
3.49
3. 64
3.80
3. 89
3. 64
Federal
3. 02
2. 69
3. 00
2. 98
3. 13
3. 24
3. 38
3.52
3.56
3.70
Insured
State
3.21
3.00
3. 02
3. 28
3.30
3.27
3. 41
3. 67
3. 45
3.75
Uninsured
State
3. 77
3. 86
3. 74
3.49
3. 69
3. 99
4. 01
4. 02
4. 10
3. 61
*
Federal Home Loan Bank Review
"CRACK TROOPS" OF FOURTH WAR LOAN
A Letter From Mr. Gamble
As members of the Federal Home Loan Bank
System, drawing upon all the experience gained in
previous drives, embarked upon the Fourth War
Loan, Mr. Ted R. Gamble, National Director of the
United States Treasury Department's War Finance
Division, wrote as follows to Governor James Twohy:
We of the Treasury are grateful to the members of the Federal Home Loan Bank System
for their patriotic record of participation in
the past financing of the War, and we are
counting upon them to maintain the same
splendid record in the Fourth War Loan
drive.
Savings and loan associations by reason of
their charters and legal purposes are especially
qualified to reach the individual small savers
of the country, to whom the appeal in this
drive is particularly directed. Of all the army
of 5,000,000 volunteer solicitors who are seeking to implant the Fourth War Loan shield
in the homes of over 50,000,000 War Bond
customers, the men and women of your
member institutions should be among the best
informed, and best equipped to reach the
American home. They know why the sales
to individuals are the most important for the
Nation's welfare.
The War Finance Division considers members of the Federal Home Loan Bank System
crack troops on whom the Treasury is relying
as the struggle to finance mounting expenditures and to hold the line against inflation
grows fiercer and more intense. They have
performed valiantly in the past and, with the
approaching climax of the fighting overseas,
we know they will again.
Honor Roll for November
Savings and loan associations were caught in the
Nation-wide slump of war bond sales in November,
accounting for a total of only $13,000,000 compared
with $24,000,000 in October. Purchases by member
associations for their own portfolios showed a smaller
decline during the month, dropping from $18,000,000
to $14,000,000.
This month's Honor Roll is based on sales to the
public, during November, of war bonds and stamps
equal to 1 percent or more of association assets. On
this basis, 205 associations qualified during November, compared with 307 during the previous month.
The use of asterisks and the "Tops in Volume Box"
have been discontinued.
The Honor Roll for December will also be on the
basis of sales during that month equal to 1 percent
of association assets. For January, the opening
month of the Fourth War Loan drive, as previously
announced, the basis for admission to the Honor Roll
will be raised to sales equal to 5 percent of association
101
January 1944
566152—44
T E D R. GAMBLE, commanding officer of t h e volunteer a r m y
of war bond salesmen.
3
assets. This, for the System as a whole, amounts to
the not inconsiderable goal of three hundred million
dollars in sales to individuals.
NO. 1—BOSTON
Bristol Federal Savings and Loan Association, Bristol, Conn.
NO. 2—NEW YORK
Amsterdam Federal Savings and Loan Association, Amsterdam, N . Y.
Berkeley Savings and Loan Association, Newark, N. J.
Broad Avenue Building and Loan Association, Palisades Park, N . J.
Center Savings and Loan Association, Clifton, N. J.
Cranford Savings and Loan Association, Cranford, N. J.
First Federal Savings and Loan Association, New York, N . Y.
First Savings and Loan Association, Jersey City, N. J.
Home Federal Savings and Loan Association, Ridgewood, N . Y.
Long Beach Federal Savings and Loan Association, Long Beach, N . Y.
Oneida Federal Savings and Loan Association, Oneida, N . Y.
Schuyler Building and Loan Association, Kearny, N. J.
Washington Heights Federal Savings and Loan Association, New York, N . Y.
NO. 3.—PITTSBURGH
Brentwood Federal Savings and Loan Associatioa, Brentwood, Pa.
Cambria County Federal Savings and Loan Association, Cresson, Pa.
Cayuga Federal Savings and Loan Association, Philadelphia, Pa.
Colonial Federal Savings and Loan Association, Philadelphia, Pa.
Ellwood City Federal Savings and Loan Association, Ellwood City, Pa.
Fidelity Federal Savings and Loan Association, Philadelphia, Pa.
First Federal Savings and Loan Association, Homestead, Pa.
First Federal Savings and Loan Association, Logan, W. V_.
First Federal Savings and Loan Association, Wilkes-Barre, Pa.
Franklin Federal Savings and Loan Association, Pittsburgh, Pa.
Friendly City Federal Savings and Loan Association, Johnstown, Pa.
Kazimierz Wielki Building and Loan Association, Philadelphia, Pa.
Lansdowne Federal Savings and Loan Association, Lansdowne, Pa.
Mid-City Federal Savings and Loan Association, Philadelphia, Pa.
Monaca Federal Savings and Loan Association, Monaca, Pa.
North Philadelphia Federal Savings and Loan Association, Philadelphia, Pa.
St. Edmond's Building and Loan Association, Philadelphia, Pa.
United Federal Savings and Loan Association, Morgantown, W. Va.
To the Members of the Bank System:
The membership of the Federal Home Loan Bank
System cannot obtain proper credit for its efforts in the
Government bond drive unless you report your sales
and purchases regularly each month.
Please forward your monthly report of sales and
purchases of Government bonds and war stamps to
your District Bank promptly.
Hickman Federal Savings and Loan Association, Hickman, Ky.
Home Federal Savings and Loan Association, Cincinnati, Ohio
Home Savings and Loan Company, Columbiana, Ohio
McKinley Federal Savings and Loan Association, Niles, Ohio.
Permanent Savings and Loan Company, Akron, Ohio
Princeton Federal Savings and Loan Association, Princeton, Ky.
San Marco Building and Loan Association, Cincinnati, Ohio
Suburban Federal Savings and Loan Association, Covington, Ky
Trenton Federal Savings and Loan Association, Trenton, Tenn.
NO. 6—INDIANAPOLIS
First Federal Savings and Loan Association, Evansville, Ind.
First Federal Savings and Loan Association, Washington, Ind.
Greenfield Building and Loan Association, Greenfield, Ind.
Griffith Federal Savings and Loan Association, Griffith, Ind.
Industrial Savings and Loan Association of Indiana Harbor, East Chicago, Ind.
Marshall County Building and Loan Association, Plymouth, Ind.
Michigan City Loan and Building Association, Michigan City, Ind.
Monon Building and Loan Association, Monon, Ind.
Peoples Building and Loan Association, Huntington, Ind.
Peoples Federal Savings and Loan Association, Monroe, Mich.
Scottsburg Building and Loan Association, Scottsburg, Ind.
Twelve Points Savings and Loan Association, Terre Haute, Ind.
Union Federal Savings and Loan Association. Evansville, Ind.
N O . 7— CHICAGO
NO. 4—WINSTON-SALEM
Atlantic Federal Savings and Loan Association, Baltimore, Md.
Brevard Federal Savings and Loan Association, Brevard, N. C.
Citizens Building and Loan Association, Carthage, N. C.
Clewiston Federal Savings and Loan Association, Clewiston, Fla.
First Federal Savings and Loan Association, Andalusia, Ala.
First Federal Savings and Loan Association, Bradenton, Fla.
First Federal Savings and Loan Association, Columbus, Ga.
First Federal Savings and Loan Association, Cordele, Ga.
First Federal Savings and Loan Association, Decatur, Ala.
First Federal Savings and Loan Association, Forest City, N. C.
First Federal Savings and Loan Association, Fort Pierce, Fla.
First Federal Savings and Loan Association, Gastonia, N. C.
First Federal Savings and Loan Association, Montgomery, Ala.
First Federal Savings and Loan Association, Phenix City, Ala.
First Federal Savings and Loan Association, South Boston, Va.
First Federal Savings and Loan Association, Waycross, Ga.
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,
Gate City Building and Loan Association, Greensboro, N. C.
Hamlet Building and Loan Association, Hamlet, N. C.
Henderson Building and Loan Association, Henderson. N. C.
Home Building and Loan Association, Easley, S. C.
Home Building and Loan Association, LaGrange, Ga.
Home Building and Loan Association, Rome, Ga.
Kenly Building and Loan Association, Kenly, N. C.
Lexington County Building and Loan Association, West Columbia, S. C.
Mutual Building and Loan Association, Martinsville, Va.
Peoples Building and Loan Association, York, S. C.
Peoples Mutual Building and Loan Association, Mount Gilead, N . C.
Tifton Federal Savings and Loan Association, Tifton, Ga.
Thomas County Federal Savings and Loan Association, Thomasville, Ga.
Woodruff Federal Savings and Loan Association, Woodruff, S. C.
Workmen's Federal Savings and Loan Association, Mount Airy, N . C.
NO. 5—CINCINNATI
Broadview Savings and Loan Company, Cleveland, Ohio
Citizens Federal Savings and Loan Association, Covington, Ky.
Citizens Federal Savings and Loan Association, Dayton, Ohio.
Citizens Savings and Loan Company, Akron, Ohio
Cookeville Federal Savings and Loan Association, Cookeville, Tenn.
Dollar Federal Savings and Loan Association, Columbus, Ohio
Favorite Federal Savings and Loan Association, Newport, Ky.
Fidelity Building Association, Dayton, Ohio
First Federal Savings and Loan Association, Ashland, Ky.
First Federal Savings and Loan Association, Hopkinsville, Ky.
First Federal Savings and Loan Association, LaFollette, Tenn.
Fulton^Building and Loan Association, Fulton, Ky.
102
Abraham Lincoln Savings and Loan Association, Chicago, 111.
American Savings and Loan Association, Chicago, 111.
Avondale Building and Loan Association, Chicago, 111.
Community Building and Loan Association, Milwaukee, Wis.
Continental Savings and Loan Association, Chicago, 111.
Cook County Federal Savings and Loan Association, Chicago, 111.
Cragin Savings and Loan Association, Chicago, 111.
DuQuoin Homestead and Loan Association, DuQuoin, 111.
East Side Federal Savings and Loan Association, Milwaukee, Wis.
First Calumet City Savings and Loan Association, Calumet City, 111.
First Federal Savings and Loan Association, Barrington, 111.
First Federal Savings and Loan Association, Chicago, 111.
Gage Park Savings and Loan Association, Chicago, 111.
Grand Crossing Savings and Building Loan Association, Chicago, Til.
Haller Savings and Loan Association, Chicago, 111.
Harvey Federal Savings and Loan Association, Harvey, 111.
Investors Savings and Loan Association, Chicago, 111.
Kinnickinnic Federal Savings and Loan Association, Milwaukee, Wis.
Lawndale Savings and Loan Association, Chicago, 111.
Lombard Building and Loan Association of DuPage County, Lombard, 111.
Mt. Vernon Loan and Building Association, Mt. Vernon, 111.
Naperville Building and Loan Association, Naperville, 111.
Narodni Savings and Loan Association, Chicago, 111.
National Savings and Loan Association, Chicago, 111.
New City Savings and Loan Association, Chicago, 111.
New London Savings and Loan Association, New London, Wis.
Ogden Federal Savings and Loan Association, Berwyn, 111.
Peoples Federal Savings and Loan Association, Peoria, 111.
Peoples Savings and Loan Association, Milwaukee, Wis.
Prairie State Savings and Loan Association, Chicago, 111.
Reliance Building and Loan Association, Milwaukee, Wis.
Security Federal Savings and Loan Association, Chicago, 111.
United Savings and Loan Association, Chicago, 111.
Universal Savings and Loan Association, Chicago, 111.
Uptown Federal Savings and Loan Association, Chicago, 111.
West Highland Savings and Loan Association, Chicago, 111.
NO. 8—DES MOINES
Albert Lea Building and Loan Association, Albert Lea, Minn.
Boone County Federal Savings and Loan Association, Centralia, Mo.
Central Savings and Loan Association, Chariton, Iowa
Fidelity Building and Loan Association, Winona, Minn.
First Federal Savings and Loan Association, Jamestown, N. Dak.
Higginsville Savings and Loan Association, Higginsville, Mo.
Home Building and Loan Association, Marion, Iowa
Independence Savings and Loan Association, Independence, Mo.
Mandan Building and Loan Association, Mandan, N. Dak.
Public Service Company's Savings and Loan Association, Kansas City, Mo.
Sentinel Federal Savings and Loan Association, Kansas City, Mo.
Standard Federal Savings'and Loan Association, Kansas City, Mo.
Federal Home Loan Bank Review
NO. 9—LITTLE BOCK
Amory Federal Savings and Loan Association, AjSmory, Miss.
Batesville Federal Savings and Loan Association, Batesville, Ark.
Chaves County Building and Loan Association, Roswell, N. Mex.
Clay County Federal Savings and Loan Association, West Point, Miss.
Electra Federal Savings and Loan Association, Electra, Tex.
El Paso Federal Savings and Loan Association, El Paso, Tex.
Fifth District Homestead Society, New Orleans, La.
First Federal Savings and Loan Association, Canton, Miss.
First Federal Savings and Loan Association, Corpus Christi, Tex.
First Federal Savings and Loan Association, Helena, Ark.
First Homestead and Savings Association, New Orleans, La.
General Building and Loan Association, New Orleans, La.
Gladewater Federal Savings and Loan Association, Gladewater, Tex.
Greater New Orleans Homestead Association, New Orleans, La.
Helena Federal Savings and Loan Association, Helena, Ark.
Inter-City Federal Savings and Loan Association, Louisville, Miss.
Jennings Federal Savings and Loan Association, Jennings, La.
Natchez Building and Loan Association, Natchez, Miss.
Oak Homestead Association, New Orleans, La.
Piggott Federal Savings and Loan Association, Piggott, Ark.
Peoples Federal Savings and Loan Association, Bay St. Louis, Miss.
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.
Slidell Savings and Homestead Association, Slidell, La.
Teche Federal Savings and Loan Association, Franklin, La.
Third District Homestead Association, New Orleans, La.
Travis Building and Loan Association, San Antonio, Tex.
Waxahachie Federal Savings and Loan Association, Waxahachie, Tex.
NO. 10—TOPE KA
American Building and Loan Association, Oklahoma City, Okla.
Bonner Springs Building and Loan Association, Bonner Springs, Kans.
Brighton Federal Savings and Loan Association, Brighton, Colo.
Citizens Federal Savings and Loan Association, Wichita, Kans.
First Federal Savings and Loan Association, Colorado Springs, Colo.
First Federal Savings and Loan Association, Englewood, Colo.
First Federal Savings and Loan Association, Osawatomie, Kans.
First Federal Savings and Loan Association of Sumner County, Wellington,
Kans.
First Federal Savings and Loan Association, Winfield, Kans.
Garnett Savings and Loan Association, Garnett, Kans.
Schuyler Federal Savings and Loan Association, Schuyler, Nebr.
NO. 11—PORTLAND
Auburn Federal Savings and Loan Association, Auburn, Wash.
Commercial Savings and Loan Association, Kelso, Wash.
First Federal Savings and Loan Association, Sheridan, Wyo.
Havre Federal Savings and Loan Association, Havre, Mont.
Polk County Federal Savings and Loan Association, Dallas, Oreg.
Rawlins Federal Savings and Loan Association, Rawlins, Wyo.
NO. 12—LOS ANGELES
California Savings and Loan Company, San Francisco, Calif.
Central Federal Savings and Loan Association, Alameda, Calif.
Century Federal Savings and Loan Association, Santa Monica, Calif.
Citrus Belt Building and Loan Association, Riverside, Calif.
First Federal Savings and Loan Association, Huntington Park, C alif.
First Federal Savings and Loan Association, Santa Ana, Calif.
First Federal Savings and Loan Association, Wilmington, Calif.
Glendale Federal Savings and Loan Association, Glendale, Calif.
Great Western Building and Loan Association, Los Angeles, Calif.
Marin County Mutual Building and Loan Association, San Rafael, Calif.
Standard Federal Savings and Loan Association, Los Angeles, Calif.
Purchases and holdings of U. S. Government
obligations by reporting member institutions
[Dollar amounts are shown in thousands]
1943
Number
reporting
Purchases
during
month
Holdings at
end^of
month
January
February _ _
March..
April __
May
June _
July.
August _
September _ _ _
October___
November. ..
2,775
2,721
2,732
2,744
2,642
2,447
2,391
2,452
3,035
2,469
2,387
$39, 835
22, 020
29, 293
177, 536
17, 719
13, 426
31, 858
21, 534
327, 950
18, 280
13, 883
$364, 455
375, 883
390, 018
537, 849
547, 460
528, 002
553, 533
537, 254
973, 026
774, 672
721, 449
January 1944
Dividend and Interest
Rate Structure
{Continued from p. 100)
A breakdown by type of institution shows that the
reductions in average dividend rates from 1941 to
1942 left the various classes of member associations
in the same relative positions for the 2 years. Federals, the type having the largest average assets, after
a decline from 3.13 to 3.02 percent were still paying
the lowest average dividend rate. Insured Statechartered associations remained in second place with
an average rate of 3.21 in 1942 compared to 3.45
the year before. The average rate paid by uninsured
State members was the highest in both 1941 and
1942, dropping from 3.84 to 3.77 percent during the
same period.
Larger Assets—Lower Dividends
This is an indication that average dividends, like
average interest rates, are in inverse relation to the
asset size of associations—the larger the association,
the lower the dividend rate (table on page 100.) An
explanation probably lies in the heavier concentra*
tion of funds seeking investment in communities
where the larger associations are located. From an
average rate of 3.10 reported in 1942 by all member
associations with assets of $10 million or over, the
rate progressed in unbroken sequence to an average
of 3.89 percent for associations in the $50,000 to
$100,000 classification.
The smallest asset-size
group (under $50,000) was the only exception,
dropping back to the same rate (3.64 percent) that
was characteristic of the group with assets of $250,000
to $500,000.
As will be seen from the chart on page 100, the
distribution of dividend rates paid by all associations
covered the entire range from less than 2.5 to 5 percent and over, with the greatest concentration appearing in rates between 3 and 4 percent. Of the 3,413
reporting associations, 1,276 fell within the 3-percent
group. For associations of larger sizes—those with
assets of $250,000 and over—this was the predominant rate, while in the smaller asset-size groups the
higher rate of 4 percent was found to be most
common. This rate was paid by the second largest
number of all reporting member associations—851.
Completing the concentration in the 3 to 4 percent
area, 629 associations reported paying an average
dividend rate of 3.5 percent.
103
Election and Appointment of D irectors and Desisnation of Chairmen and V i c e
Cha irmen 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:
(1) the election of Classes A, B, and C directors and
directors-at-large to serve 2-year terms beginning
January 1, 1944; (2) the appointment of public
interest directors to serve 4-year terms beginning
January 1, 1944; and (3) the designation of chairmen
and vice chairmen to serve during the year 1944 or
until their successors are designated and qualified.
D I S T R I C T N O . 1—BOSTON
Chairman: Bernard J. Rothwell, Bay State Milling Company, Boston, Massachusetts (re-appointed).
Vice Chairman: E d w a r d H. Weeks, Old Colony Cooperative
Bank, Providence, R h o d e Island (re-appointed).
Public Interest Director: William J. Pape, editor and publisher
of Waterbury Republican and American
(re-appointed).
Class A Director: E d w a r d H . Weeks (re-elected).
Class B Director: N o r m a n U. Armour, Salem Co-operative
Bank, Salem, Massachusetts.
Class C Director: Sumner W. Johnson, Homestead Savings
a n d Loan Association, Portland, Maine (re-elected).
Director-at-Large: Reuben A. Cooke, Burlington Federal
Savings and Loan Association, Burlington, Vermont
(re-elected).
DISTRICT NO. 2—NEW YORK
Chairman: George MacDonald, Manufacturers' T r u s t Company, New York. New York (re-appointed).
Vice Chairman: Francis V. D . Lloyd, Central Bergen Savings
a n d Loan Association, Ridgefield Park, New Jersey (reappointed) .
Class A Director: Claude B. Gandy, Richmond C o u n t y Federal Savings and Loan Association, Tottenville, S. L,
New York.
Class B Director: Francis V. D . Lloyd (re-elected).
Class C Director: H e n r y N . Stam, Totowa Savings a n d Loan
Association, Paterson, New Jersey.
Director-at-Large: LeGrand W. Pellett, T h e Building and
Loan Association of Newburgh, Newburgh, New York
(re-elected).
D I S T R I C T NO. 3—PITTSBURGH
Chairman: Ernest T. Trigg, National Paint, Varnish and
Lacquer
Association,
Philadelphia,
Pennsylvania
(re-appointed).
Vice Chairman:
Charles S. Tippetts, T h e Mercersburg
Academy, Mercersburg, Pennsylvania (re-appointed).
Public Interest Director: A r t h u r B. Koontz, attorney, Charleston, West Virginia (re-appointed).
Class A Director: N o r m a n E. Clark, First Federal Savings and
Loan Association, New Castle, Pennsylvania.
Class B Director: Charles Warner, Brandy wine Building and
Loan Association, Wilmington, Delaware (re-elected).
104
Class C Director: Francis E. McGill, M a n a y u n k Savings and
Loan Association, Philadelphia, Pennsylvania (re-elected).
Director-at-Large: James J. O'Malley, First Federal Savings
and Loan Association of Wilkes-Barre, Wilkes-Barre,
Pennsylvania (re-elected).
D I S T R I C T NO. 4 — W I N S T O N - S A L E M
Chairman: Horace S. Haworth, Roberson, H a w o r t h , and
Reese (law
firm),
High Point, N o r t h
Carolina
(re-appointed).
Vice Chairman: E d w a r d C. Baltz, Perpetual Building Association, Washington, D . C. (re-appointed).
Public Interest Director: R a y m o n d D. Knight, a t t o r n e y ,
Jacksonville, Florida (re-appointed).
Class A Director: Wallace O. DuVall, Atlanta Federal Savings
and Loan Association, Atlanta, Georgia.
Class B Director: Peyton R. Keller, First Federal Savings a n d
Loan Association, Roanoke, Virginia.
Class C Director: George E. Rutledge, First Federal Savings
and Loan Association of Bessemer, Bessemer, A l a b a m a
(re-elected).
Director-at-Large: P. W. Spencer, Mechanics Federal Savings
and Loan Association, Rock Hill, South Carolina
(re-elected).
D I S T R I C T NO. 5 — C I N C I N N A T I
Vice Chairman: W m . Megrue Brock, T h e Gem City Building a n d Loan Association, D a y t o n , Ohio (re-appointed).
Class A Director: J a m e s M . M c K a y , T h e H o m e Savings a n d
Loan C o m p a n y of Youngstown, Youngstown, Ohio
(re-elected).
Class B Director: J o h n C. M i n d e r m a n n , General Building
Association, Covington, K e n t u c k y .
Class C Director: H e ; m a n F . Cellarius, San Marco Building
and Loan Association, Cincinnati, Ohio (re-elected).
Director-at-Large: Wm. Megrue Brock (re-elected).
D I S T R I C T NO. 6 — I N D I A N A P O L I S
Chairman: H e r m a n B. Wells, I n d i a n a University, Bloomington, Indiana (re-appointed).
Vice Chairman: Fermor S. Cannon, Railroadmen's Federal
Savings and Loan Association, Indianapolis, I n d i a n a
(re-appointed).
Public Interest Director: Charles T. Fisher, Jr., banker, D e troit, Michigan (re-appointed).
Class A Director: T h o m a s C. Mason, Grand Rapids M u t u a l
Federal Savings and Loan Association, G r a n d R a p i d s ,
Michigan.
Class B Director: E d w a r d W. Springer, Atkins Savings a n d
Loan Association, Indianapolis, Indiana.
Class C Director: E a r l C. Bucher, People's Savings a n d Loan
Association, H u n t i n g t o n , I n d i a n a (re-elected).
Director-at-Large: M y r o n H . Gray, Muncie Federal Savings
a n d Loan Association, Muncie, I n d i a n a (re-elected).
Federal Home Loan Bank Review
D I S T R I C T NO. 7 — C H I C A G O
Chairman: Charles E. Broughton, The Sheboygan Press.
Sheboygan, Wisconsin (re-appointed),
Vice Chairman: Henry G. Zander, Jr., Henry G. Zander and
Company (realtors), Chicago, Illinois (re-appointed).
Public Interest Director: Charles PI Broughton (re-appointed).
Class A Director: A. II. Koepke, Welfare Building and Loan
Association, Milwaukee, Wisconsin.
Class B Director: Earl S. Straight, N o r t h Shore Savings and
Loan Association, Shorewood (Milwaukee), Wisconsin.
Class C Director: Robert L. Hirschinger, Baraboo Federal
Savings and Loan Association, Baraboo, Wisconsin.
Director-at-Large: Arthur G. Erdmarm, Bell Savings and Loan
Association, Chicago, Illinois (re-elected).
D I S T R I C T NO. 8 - DES MOINES
Chairman: E. J. Russell, M a u r a n , Russell, a n d Crowell (architects), St. Louis, Missouri (formerly Vice Chairman).
Vice Chairman: E. A. Purdy, Wells-Dickey Company, Minneapolis, Minnesota.
Public Interest Director: Robert E. L. Hill, University of
Missouri, Columbia, Missouri (re-appointed).
Class A Director: E. C. Duncanson, H o m e Federal Savings and
Loan Association, Spring Valley, Minnesota.
Class B Director: William R. Mahood, N o r t h e r n Federal
Savings and Loan Association, St. Paul, Minnesota.
Class C Director: E. M. Klapka, H o m e Building a n d Loan
Association, Fort Dodge, Iowa.
Director-at-Large: Turner M. Rudesill, First Federal Savings
and Loan Association, R,apid City, South D a k o t a .
D I S T R I C T NO. 9 — L I T T L E
ROCK
Chairman: Will C. Jones, Jr., Mercantile National Bank a t
Dallas, Dallas, Texas (re-appointed).
Vice Chairman: Wilbur P. Gulley, Pulaski Federal Savings
and Loan Association, Little Rock, Arkansas (re-appointed).
Public Interest Director: T. J. Butler, Manufacturer, Austin,
Texas (re-appointed).
Class A Director: George M. deLucas, Jackson Homestead
Association, New Orleans, Louisiana.
Class B Director: O. W. Boswell, First Federal Savings and
Loan Association of Paris, Paris, Texas (re-elected).
Class C Director: Louis D . Ross, St. T a m m a n y Homestead
Association, Covington, Louisiana (re-elected).
Director-at-Large: Wilbur P. Gulley (re-elected).
D I S T R I C T NO. 10—TOPEKA
Chairman: Paul F . Good, Good, Good a n d Kirkpatrick (attorneys), Lincoln, Nebraska (re-appointed).
Vice-Chair man: A. G. Nartronft, The Lyons Building and
Loan Association, Lyons, Kansas.
Public Interest Director: William B. Bizzell, President-emeritus of the University of Oklahoma, N o r m a n , Oklahoma
(re-appointed).
Class A Director: L. S. Barnes, Ponca City Savings and Loan
Association, Ponca City, Oklahoma.
Classs B Director: Gordon Harper, Victor Building and Loan
Association, Muskogee, Oklahoma.
Class C Director:, H . A. H a r t , First Federal Savings and Loan
Association, Dodge City, Kansas.
January 1944
Director-at-Large: H e n r y A. Bubb, Capitol Federal Savings
and Loan Association, Topeka, Kansas.
D I S T R I C T NO. 1 1 — P O R T L A N D
Chairman: Ben A. Perham, P e r h a m Fruit Company, Yakima,
Washington (re-appointed).
Vice Chairman: H. R. Grant, First Federal Savings and Loan
Association, Twin Falls, Idaho.
Public Interest Director: J. W. Maxwell, banker, Seattle,
Washington (re-appointed).
Class A Director: Junius Romney, State Savings a n d Loan
Association, Salt Lake City, U t a h .
Class B Director: S. S. Selak, Prudential Savings and Loan
Association, Seattle, Washington.
Class C Director: J. C. Marshall, First Federal Savings and
Loan Association, Sheridan, Wyoming.
Director-at-Large: V. D. Clark, Security Building and Loan
Association, Billings, M o n t a n a .
D I S T R I C T NO. 12—LOS A N G E L E S
Chairman: David G. Davis, Raphael Weill a n d Company,
San Francisco, California (re-appointed).
Vice Chairman: C. A. Garden, Quaker City Federal Savings
a n d Loan Association, Whittier, California.
Public interest Director: Albert J. Evers, architect, San
Francisco, California (re-appointed).
Class A Director: J. K. Baillie, Los Angeles Federal Savings
a n d Loan Association, Los Angeles, California.
Class B Director: F r a n k L. Williams, State Building a n d Loan
Association, Stockton, California (previously appointed
by Administration).
Class C Director: William J. Bowman, Albany Federal
Savings and Loan Association, Albany, California.
Director-at-Large: George B. Campbell, Independent BuildingLoan Association, San Jose, California (re-elected).
Cleveland Plans For
Conservation
•
POST-WAR plans in Cleveland, Ohio, include,
besides conventional slum clearance, the conservation of existing neighborhood values. The
Cleveland City Planning Commission has recently
picked four areas as "study sites," as the start of a
plan looking toward rehabilitation of the city's entire central residential area. They range from
seriously blighted districts to those just beginning
to deteriorate.
The two-fold program embraces first, large-scale
demolition of the worst areas, followed by rebuilding
according to a well conceived general plan drawing
upon the resources of private enterprise in cooperation with public agencies; and second, conservation
measures such as revised zoning and remodeling by
individual owners in the slightly run-down areas.
105
RESIDENTIAL BUILDING ACTIVITY AND SELECTED INFLUENCING FACTORS
1935-1939=100
BY YEARS
BY MONTHS
INDEX
260
240
A ^PRIVATE
1 Y*r
220
240
CONSTRUCTION
1 a Z FAMILY DWELLING UNITS
220
a 2 FAMILY DWELLING UNITS
180
HOME LOAN BANK ADMIN.)
(-EDERAL
(U. S. DEPT OF LABOR RECORDS)
\
\
A**-
i
1
100
\
%
,+*.
1
'
LENDING
A
\
1 *"V
rX
180
k
SVGS. a LOAN
160
f
A.
140
/
120
100
Sir
\
80
\
^/ 1
! \
"si 1 # \
1\
f /
/ \ ( F E .DERAL HOME LOAN BANK ADMI si.)
A
t
>\ /
120
200
hI
FPRIVATE CONSTRUCTION-
140
260
/
200
160
INDEX
ADJUSTED FOR SEASONAL VARIATION
I
1
1
!
1
1
|
\
y
60
i
'f
60
1
'%w- ••"*' /
40
80
*
\
N0NFAR1 *
^^
FORECLOSURES'
jtNONFARM
FORECLOSURES^
40
(FEDERAL HOME LOAN BANK ADMIN.)
20
20
LLL
0
140
^J-
RENTS 1
100
_.**'•
! 1
-A
^
-•^
MAI ERIA L PRICES
DEPARTM ENTOF LABOR
1
1
1
11
(U.S.
1 1 1 1 I 1 1I
^
0
—
140
—
120
100
1 1 1l
1 1 I J
i i
i I
i i
i i
i i
i i
ADJUSTED FOR SEASONAL VARIATION
1
1
Ah
-*•*
1 1
INDUSTRIAL PRODUCTION^
220
s
200
i
i
180
rim
=}ESER ^E
/NUUoi
(FEDERAL f
;r/o/\
BO ARD)
160
|
/
V
/ /
120
sIN COME PAYMEN1
s
>'.
.•*
^^ N
N P W 8 . DEPT. OF COMMERCE)
*
y^"-*
4• » » * " • *
180
> -INC OME
160
PAYMENTS
140
120
s
100
\X
80
£&^
7*"
'32 ,'33
'34 '35
. '37
'36
,NDEX COST OF STANDARD SIX-ROOM HOUSE
'38
INDEX
160,
1935-19 39=100
- '39
'40 '41
-A _
, V
'42
wr
1 1 !1
1 1 1 1 1 1 1 1 1 1 1 1 1 1
1941
WHOLESALE COMMODITY PRICES
1935-1939=100
1 1
1942
1943
y
y
y~
y* A' ^MATERIAL
3 - ^
,.•*••**
u\L 60
V
MILLIONS EH.L.B. ADVANCES OUTSTANDING
$250r
|
J
LABOR-,
240
200
'*
X.
60 -Ar—
V
1930 '31
60
260
220
V
.«•
.*y
/ /
140
80
.—•»*"•
I I
80
-V-
240
100
\ l
RENTSS
^'S-BUIL.DING
V
1 1
! 1
-4T-
-* —••
V
80
60 260
1 i
BUILDING MATERIAL PRICES
r**
120
! 1
yl?
V.
x
,19 41
-^
*'
<1• -
*
.-•
f
.y
,19 43
y^f**
»•y
....L..I
I I I U L L U I . . l Llij.d.l„LUx
JAN. FEB. MAR. APR MAY
106
JUN. JUL. AUG. SEP. OCT. NOV.
OEC.
Federal Home Loan Bank Review
« « «
MONTHLY
SURVEY
HIGHLIGHTS
/. Launching of the Fourth War Loan this month marks the first of the year*s efforts to finance the increased production goals for 1944
while narrowing the inflationary gap by increased sales of bonds to individuals.
A. War expenditures reached an all-time high of almost $8 billion in November.
B. Industrial production in November maintained the high level achieved during October.
II. Mortgage-lending activity showed a drop of 11 percent from October, a decrease somewhat less than the normal seasonal expectation.
A. The $103,000,000
loaned during November was 39 percent above the $74,000,000
estimated for November 1942.
B. Every month since June of this year has seen a widening margin of increase in total lending activity over the corresponding
month of 1942.
III. Mortgage recordings of $20,000
or under decreased 8 percent in November (a considerably smaller reduction than usual at this
time of year).
At the same time, foreclosures showed a nationally distributed increase of 7 percent.
IV. Wholesale building material prices increased fractionally during November while the cost of building the standard house rose 4 percent
during the year to a point 9 percent above the pre-Pearl Harbor cost.
V. In November, total repayments received by the 12 Federal Home Loan Banks amounted to $15,421,000,
the largest amount of
repayments ever recorded in November.
VI. New share capital in the amount of $117,000,000
was received by savings and loan associations during November with repurchases
amounting to only 54 percent of this total.
VII. Insured associations reported a 20-percent increase in private capital during the year and a 4-percent gain in mortgage holdings.
ft ft
BUSINESS CONDITIONS—High production
level to be increased
The new year is opening on a note of high finance
in anticipation of the necessity of increased war production. The Fourth War Loan which is now under
way toward a $14 billion goal is only one of the
efforts that will be necessary to finance 1944 expenditures. Financial requirements will be much greater
since the production goal has been set well above
that of 1943.
War expenditures had already reached a new
record high in November as evidenced by checks
cleared by the U. S. Treasury. The all-time peak
of $7,794,000,000 was nearly 10 percent above the
October figure and exceeded by $106,000,000 the
previous high point recorded last June.
Industrial production, as measured by the Federal
Reserve Board's seasonally adjusted index, in
November and early December remained at the high
level shown in October—247 percent of the 19351939 average. Compared to the November 1942
level this index has shown a 27-point increase.
In spite of the fact that money in circulation, as
reported by the Treasury, had passed the $20 billion
mark in mid-December and income payments during
November amounted to 221 percent of the 1935-1939
average, total Christmas trade did not come up to
expectations. In early December the Department
of Commerce reported that sales stood at 272 (1935January 1944
ft ft
1939 = 100) in comparison with 303 at the same time
the previous year. Public antipathy to "ersatz" goods,
together with heavy tax payments, bond purchases,
and the anti-inflation and shop-early campaigns, seem
to have had a cumulative effect on the December
buying.
According to the U. S. Department of Commerce,
employment showed a seasonal decline in November
when only 51 million persons were reported as employed compared with 53 million in October. At
the same time, because of inductions into the armed
forces, the total labor force available had declined so
that in November, less than 1 million individuals
were unemployed.
The cost of living, according to the U. S. Department of Labor, showed a fractional decline of 0.2
percent from mid-October to mid-November. The
index (1935-1939 = 100) stood at 124.1 on November
15, still 3.6 percent above the same month in 1942
and 23 percent above January 1941.
[1935-1939 = 100]
T y p e of index
H o m e construction (private) '
Foreclosures (nonfarm) i
R e n t a l index ( B L S )
B u i l d i n g material prices
Savings a n d loan l e n d i n g *
Industrial production i
Manufacturing employment *
Income payments *
p Preliminary.
r
Revised.
J
Nov.
1943
Oct.
1943
Percent
change
70.8
14.3
108.0
126. 3
167.7
P 247. 0
P 172. 4
P 221.4
62.7
13.7
108.0
125.8
158.9
+12.9
+4.4
0.0
+0.4
+5.5
0.0
+1.4
+1.6
r 247. 0
"• 170.1
f 218. 0
Nov.
1942
64.8
23.4
108.0
122.9
120.4
220.0
163. 5
189.2
Percent
change
+9.3
-38.9
0.0
+2.8
+39.3
+12. 3
+5.4
+17.0
A d j u s t e d for n o r m a l seasonal v a r i a t i o n .
107
BUILDING ACTIVITY—Total
construction declines
During November the volume) of urban construction declined slightly from the previous month.
For the second consecutive month, public building
activity gained, with permits issued for 7,754
dwelling units compared with 6,330 during October;
meanwhile private construction declined from 11,840
to 9,412 during November. The decline in private
and public construction combined was 6 percent
from last month. However, over November 1942
total urban construction showed an increase of 18
percent; the greater rise, 42 percent, being in public
construction although there was a small, perhaps
significant, gain of 4 percent in the volume of private
construction compared with that type of activity a
year ago.
This private-construction gain over November
1942, which is counter to the picture for the year
as a whole, was registered in the volume of 1- and
2-family dwellings for which permits were issued,
while those for multi-family dwelling units showed a
decline.
During the past 11 months permits have been
issued for 111,252 privately financed dwelling units,
compared with 176,912 in the same period of 1942;
and for 82,792 publicly financed units, compared
with 87,100 for the first 11 months of last year.
[TABLES 1 and
2.]
while material prices are 27 percent higher than in
this base period.
Although construction costs have advanced only
4 percent during the 12 months ending in. November
1943, they are approximately 9 percent higher than
at the time of our entry into World War I I .
Wholesale building prices as reported by the Department of Labor increased fractionally in November, carrying the composite index (1935-1939 = 100)
to 126.3. Plumbing and heating equipment together
with brick and tile products showed the largest gains
in prices, with rises of 1.8 and 1.0 percent, respectively. The cost of cement, structural steel, and
"other" building materials remained unchanged from
October, while prices of lumber and paint and paint
materials showed only fractional gains. Compared
with November 1942, the wholesale materials index
reflected a 2.8-percent gain in prices of all products.
[TABLES 3, 4, and
5.]
Construction costs for the standard house
[Average month of 1935-1939=100]
Element of cost
Material
Labor
. _
Total
November
1943
October
1943
126. 8
135. 6
126. 0
135. 0
+ 0. 6
+ 0.4
121. 5
130. 2
+ 4.4
+ 4. 1
129. 8
129. 1
+ 0. 5
124.4
+ 4. 3
Per- N o v e m - Percent
ber
cent
1942 change
change
NEW RESIDENTIAL CONSTRUCTION IN ALL URBAN AREAS
PERMITS ISSUED FOR PUBLICLY AND PRIVATELY FINANCED DWELLING UNITS
PRIVATE MULTlrFAMW , , ~"'
,
,U-.7>J.t
JUN.
rrrr-T-
1942
BUILDING COSTS-Rise 9
since Pearl Harbor
~fe^
JUN.
1943
percent
Prices of building materials and labor rose slightly
during November and at the end of the month the
combined index for the cost of constructing the standard house stood at 129.8. Labor costs are now 36
percent above the average month of 1935-1939,
108
M O R T G A G E LENDING—Less than
seasonal decline noted
Reflecting the usual tendency to recede during the
late autumn, new loans made by savings arid loan
associations declined 11 percent from October to
November. However, this reduction was somewhat
less than normal, and the $103,000,000 loaned during
November was 39 percent above the $74,000,000 estimated for the same month of 1942.
Although the total lending activity by the savings
and loan industry is still considerably below the high
levels reached prior to our entry into the War, every
month since June 1943 has witnessed a very substantial increase over the activity in the same month
of the previous year. This phenomenon has been
caused by the almost continuous gains reported in
loans for the purchase of existing homes. Even in
November, when home-purchase loans moved 12 percent downward from October, the margin of spread
over the same 1942 month amounted to 66 percent
Federal Home Loan Bank Review
for this purpose; in contrast, construction loans were
down 25 percent from the previous November,
Federal associations, which reported greater declines in lending volume than did other classes of
associations in 1942, in turn showed the most substantial increases during the first 11 months of 1943.
State-chartered members reported that, during the
January-November period, their new loans had risen
12 percent from 1942 to 1943; the comparable
increase for Federals was 21 percent; non-members,
on the other hand, made 19 percent fewer loans than
a year earlier. [TABLES 6 and 7.]
New mortgage loans distributed by purpose
[Dollar amounts are shown in thousands]
Purpose
Construction. _
H o m e purchase
Refinancing
Reconditioning
Other purposes
Total
3
1
4
3
3
103, 056 115, 150 - 1 0 . 5 73, 979 + 39. 3
M O R T G A G E RECORDINGS-Small
monthly decrease indicated
Financing of nonfarm mortgages declined 8 percent from October to November, a much smaller
reduction than has usually been experienced at that
time of year. The total volume of mortgages of
$20,000 or less recorded by all classes of lenders, was
$354,000,000 in November—a figure 27 percent in
excess of that estimated for November 1942, but 6
percent under the November 1941 level.
Each type of mortgagee, with the exception of
mutual savings banks, participated in the reduction
in financing from October. Whereas savings banks
registered a 1-percent increase during the month,
decreases for the remaining classes ranged from 6
percent for individual lenders to 13 percent for
commercial banks.
During the first 11 months of 1943, more than
$3,500,000,000 of mortgages were recorded (of less
than $20,000 each), 4* percent less than a year
previous. The greatest contraction (24 percent) in
this comparison was shown by life insurance companies, while commercial banks reported a volume
17 percent under the January-November period of
1942. Increases were noted only for individuals (15
January 1944
[Dollar amounts are shown in thousands]
T y p e of lender
Percent
change
from
October
1943
Savings a n d loan associ-9.0
ations __
-8. 1
Insurance companies
Banks, t r u s t companies. - 1 3 . 4
M u t u a l savings b a n k s . _ + 0 . 8
-5.9
Individuals
-7.5
Others
Total_„
Novem- October Percent Novem- Percent
ber
ber
change
1943 change
1942
1943
- 7 . 0 $9, 275 - 2 5 .
$6, 928 $7, 452
73, 053 83, 259 - 1 2 . 3 43, 984 + 66.
+ 2.
12, 767 14, 025
- 9 . 0 12, 472
2,638
- 8 . 2 3,007 - 1 2 .
2,874
7,670
+ 1.7 5, 241 + 46.
7, 540
Mortgage recordings by type of mortgagee
-8.4
Percent
of N o vember
1943
amount
Cumulative
recordings (11
months)
Percent
of
total
recordings
3 1 . 6 $1,136,329
257, 678
6. 5
685, 529
18.3
140, 142
4.3
781, 249
23. 3
16.0
529, 485
32. 2
7.3
19.4
4.0
22. 1
15. 0
100. 0 J3, 530, 412
100.0
percent) and for savings and loan associations (4
percent).
[TABLES 8 and 9.]
FORECLOSURES—Slisht sain reported
in November
There were 1,888 nonfarm foreclosure cases completed in the United States in November, a rise of
7 percent over the preceding month. The monthly
index of foreclosures advanced to 14.3 (1935-1939 =
100). This increased activity was not confined to
a particular geographical area b u t extended to 8
of the 12 Federal Home Loan Bank Districts.
The November foreclosures were substantially below
those of the same month last year, with each District
sharing in the improvement.
During the 12-month period ending in November,
foreclosures were completed at the rate of 1.2
per 1,000 dwellings, a reduction of 0.8 per 1,000
dwellings from the rate of 2.0 for the comparable
period of 1942.
In spite of the November gain in activity, foreclosures thus far in 1943 totaled 23,881, contrasted
with 39,404 for the corresponding period of last
year. This represented a decrease of 39 percent in
volume.
[TABLE 10.]
B A N K SYSTEM-Advances down;
repayments up
The balance of advances outstanding at the close
of November was $10,000,000 below the October
figure and stood at $116,356,000. This was a
relatively high point for the year but still the lowest
November balance since 1935. The corresponding
figure in 1942 was $121,886,000.
109
Advances made during the month ($5,093,000)
followed the usual downward trend evident in
November, decreasing $3,000,000 from October.
The only Banks which did not participate in this
decline were New York and Topeka, each of which
showed a moderate monthly increase. Total advances were, however, $1,000,000 above advances in
November 1942.
For the second successive month, the volume of
repayments received by the 12 F H L Banks increased.
In November, total repayments amounted to
$15,421,000—more than $3,000,000 greater than in
October, and the largest amount of repayments ever
recorded in November.
[TABLE 12.]
Share investments and repurchas es, November 1943
[Dollar amounts are shown in thousands]
Item and period
All inUninAll asso- sured
Nonasso- sured members
ciations
ciations members
Share investments :
Year ending
November- $1, 501, 952 $1, 123, 264$209, 931 $168, 757
November
1943
90, 023 16, 824 10, 515
117,362
November
1942
64, 697 14, 860 15, 786
95, 343
-33
Percent change.
+ 39
+ 13
+ 23
Repurchases:
Year e n d i n g
November.
November
1943
November
1942
Percent change.
Repurchase ratio
(percent):
Year ending
November.
November
1943
November
1942
$901, 599
$616, 056 $158, 095 127, 448
9, 178
62, 789
43, 137
10, 474
53, 346
+ 18
30, 738
+ 40
10, 129
+3
-26
60.0
54.8
75.3
75.5
53.5
47.9
62.3
87.3
56.0
47. 5
68.2
79. 1
12,479
The inflow of private savings has been persistent
and, during the year ending November 30, a total
of $1,500,000,000 was received by the savings and
loan industry. In comparison with this volume of
new share receipts, only $902,000,000 of existing
capital was repurchased; thus only $60 of savings
were withdrawn for each $100 invested during the
12-month interval.
INSURED ASSOCIATIONS-Private capital
increases substantially
Private repurchasable capital continued to increase substantially in November, and at the end of
that month $3,488,000,000 of savings were on the
books of all insured savings and loan associations.
This was 20 percent higher than the private capital
in such institutions a year earlier. Mortgage holdings, on the other hand, increased very slightly
during November to a total of $3,004,000,000, a portfolio only 4 percent greater than in November 1942.
Total assets of the 2,442 insured associations operating throughout the United States aggregated
$4,127,000,000 as of the close of November. Although growth in resources has been retarded to
some extent by the generally low level of mortgagelending activity and the consequent repayments of
borrowings, total assets have gained almost consistently from month to month so far during 1943.
FEDERAL SAVINGS AND LOAN ASSOCIATIONS
Of the 2,442 associations insured as of the end of
November, 1,467, or 60 percent, were operating
under Federal charters. These Federals, with total
assets of $2,580,000,000, held approximately 63 percent of the total resources of all insured associations
as of that date. The 830 converted Federals accounted for approximately two-thirds of the total
assets for all Federal associations. [TABLE 15.J
Progress in number and assets of Federals
F L O W OF PRIVATE REPUROHASABLE CAPITAL
Approximately $117,000,000 of new share capital
was received by savings and loan associations
throughout the country during November—over
$22,000,000, or 23 percent, more than was attracted
during the same month of 1942. Repurchases of
private capital amounted to only $63,000,000 in
November, or the equivalent of but 54 percent of the
new savings received during the month. A year
earlier the repurchase ratio was 56 percent.
no
[Dollar amounts are shown in thousands]
Number
Class of association
New_ _
Converted
_
Total-__
Nov.30, Oct. 31, Nov. 30,
1943
1943
1943
. _
_ __
Approximate assets
Oct. 31,
1943
637
830
638 $840, 621 $830, 375
830 1, 739, 860 1, 720, 598
3,467
1, 4682, 580, 481 2, 550, 973
Federal Home Loan Bank Review
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 n umber and valuation of new family-dwelling units
provided in all urban areas in November 1943, by Federal Home
Loan Bank District and by State
[Source: IT. S. Department of Labor]
[Dollar amounts are shown in thousands]
All residential s t r u c t u r e s
Federal H o m e L o a n B a n k D i s t r i c t a n d S t a t e
N u m b e r of family-dwelling
units
N o v . 1943
U N I T E D STATES
N o . 1—Boston
Connecticut
Maine
__
Massachusetts
New Hampshire
Rhode Island
Vermont
__________
__
______
____
N o . 2—New Y o r k . .
N e w Jersey
New York
_ __ _ .__ __ _.
______
_ _ __
$45,180
$44,026
8,324
7,621
$26,487
$25, 861
1,181
1,320
3,854
123
393
474
1,528
273
94
55
434
607
131
848
336
115
1,687
1,678
466
56
34
28
234
27
123
232
151
70
952
107
446
2
3
4
5
7
14
11
12
2
3
4
5
7
14
11
12
169
1,473
550
4,956
124
673
474
2,205
144
25
640
833
438
112
2,024
2,932
99
25
412
261
362
112
1,253
952
412
1,956
698
10
3,087
25
464
10
24
1,481
8
1,931
25
__
872
3,208
1,865
7,926
575
968
1,124
2,672
_____
192
76
240
40
128
121
7
68
137
400
97
1,172
158
912
12
320
326
211
526
47
329
276
2
148
255
1,070
225
2,926
461
2,094
13
882
82
4
225
40
128
21
7
68
137
6
93
172
146
162
12
240
71
4
500
47
329
23
2
148
255
8
212
531
434
501
13
718
2,648
563
8,088
2,320
511
531
2,261
2,237
23
2,572
53
4
548
11
46
7,924
118
7
2,301
12
23
435
53
4
516
11
46
2,097
118
7
2,218
12
1,095
1,866
4,154
6,796
861
1,506
3, 672
6,188
311
1,195
240
3,432
959
5, 229
_ ___
_ _ __
_ .
_
__
__
Indiana
Michigan
______
__
N o . 7—Chicago
___
___
N o . 8—Des M o i n e s . _
Iowa
Minnesota
Missouri
North Dakota
South D a k o t a . .
_
89
1,006
671
1,195
240
3, 914
1,567
5,229
89
772
623
786
2, 528
2,885
553
528
2,296
2,028
328
295
626
160
1,350
1,178
2,298
587
312
241
368
160
1,286
1,010
1,441
587
110
242
167
620
110
149
167
447
2
3
105
60
34
46
2
11
154
192
110
129
928
2,743
2,002
2
3
105
60
34
94
2,026
2,109
3,011
5,396
1,914
95
36
380
78
1,437
77
247
968
9
808
98
20
713
84
2,096
201
902
2,484
14
1,795
95
36
340
78
1,365
77
99
47
9
696
98
20
622
84
1,919
201
340
22
14
1,425
788
195
2,436
439
493
191
1,694
431
19
59
410
300
4
29
51
111
68
99
1,200
1,069
8
84
124
223
19
59
142
273
4
25
51
111
68
99
470
1,057
8
76
124
223
1,122
306
4,576
1,033
952
302
4,050
1,020
2
51
96
157
267
3
765
955
2,305
281
2
197
284
550
27
1
119
233
503
69
2
47
96
157
109
3
438
943
2,276
281
2
184
284
550
1, 885
33
1,769
83
14, 972
104
14, 866
2
6,019
104
5,915
37l47
1
2,871
275
_ __
_
N o . 9—Little R o c k
Arkansas
Louisiana
Mississippi
N e w Mexico
Texas _ _
..____
______
_. _
___
N o . 10—Topeka
_
_
N o . 11—Portland
_
N o . 12—Los Angeles
Arizona
California..
_ __
Nevada
_ ___ ___ _
14, 522
427
1,513
_.
January 1944
17,166
474
_ __
_
N o v . 1942
7
397
8
_._
Idaho
Montana
Oregon
Utah.
____
Washington
Wyoming
N o v . 1943
412
__
Colorado..
Kansas
Nebraska
Oklahoma
N o v . 1942
3,112
N o . 6—Indianapolis
Illinois..
Wisconsin
N o v . 1943]
24
1,481
8
__
_ __
______
Kentucky
Ohio
Tennessee
N o v . 1942
1,513
N o . 4—Winston-Salem
N o . 5—Cincinnati
N o v . 1943
Permit valuation
708
_ _
Alabama.. _ _
District of C o l u m b i a . _ .
Florida
_
Georgia
Maryland
N o r t h Carolina
S o u t h Carolina
Virginia
._
Permit valuation
7
397
8
N o . 3—Pittsburgh
Delaware
Pennsylvania
West Virginia..-
N o v . 1942
All p r i v a t e 1- a n d 2-family s t r u c t u r e s
N u m b e r of family-dwelling
units
__
__
2
11
154
54
87
1
207
237
521
69
6T87T
36
6,834
4
192
110
249
47689"
70
4,344
275
16
9
69
17696"
36
1,660
978~
1
894
83
III
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: IT. S. Department of Labor]
[Dollar amounts are shown in thousands]
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
Oct. 1943
N o v . 1942
9, 412
11, 840
7,015
1,309
1, C88
7,018
1,802
3,020
1-family dwellings
. .
2-family dwellings *
_ .-._..
3- a n d more-family dwellings 2
P u b l i c construction
-_
._ _
..
Total urban construction.
1
J a n . - N o v . totals
N o v . 1943
Private construction...
Permit valuation
M o n t h l y totals
J a n . - N o v . totals
N o v . 1943
Oct. 1943
N o v . 1942
176, 912
$29, 701
$37, 861
$29,117
$346, 286
$575, 252
134,229
14, 332
28.351
22, 764
3,723
3,214
23, 946
5,311
8,604
23, 536
2,325
3,256
238,979
42, 707
64, 600
463, 394
38, 983
72, 875
1943
1942
9,046
111, 252
6,745
876
1,425
72, 618
15, 241
23, 393
1943
1942
7,754
6,330
5,476
82, 792
87,100
15, 479
17, 975
14, 909
177, 238
276,342
17,166
18,170
14, 522
194, 044
264,012
45,180
55, 836
44, 026
523, 524
851, 594
2
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 months1
[Average month of 1935-1939 = 100]
1943
1942
1941
1940
1939
1938
1937
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
[ff N e w Haven, Conn
Portland, Me
Boston, Mass
Manchester, N . H
P r o v i d e n c e , R. I , .
Rutland, Vt
.
_._
. _•
_. .
_ .
_
. _._
N o . 4—Winston-Salem:
B i r m i n g h a m , Ala
_ _
Washington, D . C
Tampa, Fla
Atlanta, Ga _ _
_ . . .
Baltimore, M d
. . . ._
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_ . _. _.
Roanoke, Va
. _
N o . 7—Chicago:
Chicago, 111 _ . . . . .
_ . . _ __ _.
Peoria, 111
... ..
Springfield, 111
_
. . .
Milwaukee, Wis
_ _.
Oshkosh, W i s
.
_
N o . 10. T o p e k a :
D e n v e r , Colo
Wichita, Kans
Omaha, Nebr
O k l a h o m a C i t y , Okla
_ __ _
..___._
_
_~
. _
.
~
June
March
p 139.1
136.0
118.9
p 122.1
P 114.3
130.1
127.6
134.2
132.5
117.7
121.3
113.8
127.1
125.4
130.0
130.0
117.8
119.8
114.1
125.3
125.2
130.0
130.5
117.8
122.3
114.1
120.8
124.5
129.9
131.1
103.6
120.1
109.2
118.9
124.4
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
126.2
137. 5
119.5
137.1
116.5
135.4
117.5
125.9
141.7
144.1
' 141.8
137.7
123.9
136.7
144.9
126.8
113.5
134.0
124.8
136.8
137.7
123.9
117.8
127.2
117.8
127.3
127.5
137.1
118.0
127.2
131.7
131.9
122.1
119.7
125.3
132.1
118.6
125.2
115.7
116.4
112.8
125.0
130.1
114.2
118.8
118.0
128.3
118.0
125.1
106.4
116.7
109.2
112.8
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
118.4
125.3
141.7
147.9
132.9
118.2
124.1
139.9
146.7
133.6
118.2
124.1
139.9
146.7
133.6
118.2
119.7
134.2
146. 2
133.6
118.2
119.7
134.2
146.2
133.6
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
114.8
132.8
121.8
195.6
110.9
125.3
122.2
110.9
125.3
122.2
' 182. 2
110.9
123.7
122.2
' 182. 2
111.5
122, 2
122.4
r 182. 2
108. 5
114.3
109.1
r 174. 4
100.6
102.5
103.6
' 156. 8
98.9
103.9
105.5
130.7
102.2
106.9
99.2
128. 0
105. 3
101.8
103.7
127.4
P
_
.
Sept.
128.4
.
135.2
p 117. 9
. _
.
__.
..
.
..
...
«• 1 9 2 . 2
'
106.9
104. 5
r
p Preliminary.
Revised.
i The house on which costs are reported is a detached 6-room home of 24,000 cubic feet volume. Living room, dining room, kitchen, and lavatory on first floor;
three bedrooms and bath on second floor. Exterior is wideboard siding with brick and stucco as features of design. Best quality materials and workmanship are used.
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 wallpaper nor other wall nor ceiling finish
on interior plastered surface, lighting fixtures, refrigerators, water heaters, ranges, screens, weather stripping, nor window shades.
The index reflects the changes in material and labor costs in the house described above. Allowances for overhead and profit, which were previously included in the
total costs, were based upon a flat percentage of the material and labor costs and therefore did not affect the movements of the series; no such allowances are included,
now that the index is expressed in relative terms only.
Reported costs do not include the cost of land nor of surveying the land, the cost of planting the lot, nor of providing walks and driveways; they do not include
architect's fee, cost of building permit, financing charges, nor sales costs.
In figuring costs, current prices on the same building materials list are obtained every 3 months from the same dealers, and current wage rates are obtained from the
same reputable contractors and operative builders. Although shortages of materials and priority restrictions preclude the actual construction of this house under wartime conditions, tests indicate that the indexes measure fairly closely the cost changes for smaller frame structures that now can be built.
112
Federal Home Loan Bank Review
Tabic 4 . — B U I L D I N G COSTS—Index of building costs for the standard house
[Average month of 1935-1939 *»100j
N o v . 1943 Oct. 1943 Sept. 1943 A u g . 1943 J u l y 1943 J u n e 1943 M a y 1943 Apr. 1943 M a r . 1943 F e b . 1943 J a n . 1943 D e c . 1942 N o v . 1942
E l e m e n t of cost
Material
Labor
.
T o t a l cost
. _-
126.8
135.6
126.0
135.0
124. 4
133.8
123.4
134.2
123.7
134.3
123.0
134.3
122.2
134.3
121.8
133.4
122.0
133.0
121.9
132.5
121.5
130.9
121.4
130.7
121.5
130.2
129.8
129.1
127.6
127.1
127.3
126.8
126.2
125.7
125.7
125.5
124.7
124.5
124.4
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 b u i l d i n g
materials
Period
1941: N o v e m b e r
1942: N o v e m b e r
December
.
___
_
_
1943: J a n u a r y
_
February.
March
_
April
May
June
July
August
September
.._
October
November
P e r c e n t change:
N o v e m b e r 1943-October 1943-._
__
_ ___ _ __
_-
N o v e m b e r 1943-November 1942
Brick a n d
tile
Cement
Paint and
paint materials
Lumber
Structural
steel
Plumbing
and heating
Other
120.0
106.3
102.2
143.3
117.2
115.5
103.5
111.6
122.9
122.8
108.5
108.6
103.4
103.4
148.2
148.4
123.8
123.3
122.4
118.8
103.5
103.5
111.3
111.4
122.6
123.1
123.3
123.2
123.4
123.5
123.6
125.3
125.6
125.8
126.3
108.6
168.5
108.6
108.6
108.8
109.0
109.0
109.0
109.0
109.0
110.1
103.4
103.4
103.4
103.4
103.1
102.7
102.7
102.7
102.7
102.7
102.7
148.4
149.9
149.9
150.0
151.0
151.8
152.7
158.1
158.9
159.4
160.2
123.7
124.4
125.7
126.0
125.7
125.4
125.4
126.4
126.1
126.4
126.9
118.8
118.8
118.8
118.8
118.8
118.0
118.8
118.8
118.5
118.5
120.6
103.5
103.5
103.5
103.5
103.5
103.5
103.5
103.5
103. 5
103.5
103.5
110.5
110.fi
110.3
109.9
109.9
110.0
109.5
109.7
110.3
110.5
110.5
+0.4
+1.0
0.0
+0.5
+0.4
+1.8
0.0
0.0
+2.8
+1.5
-0.7
+8.1
+2.5
-1.5
0.0
-0.7
Table 6 . — M O R T G A G E LENDING—Estimated volume of new home-mortgage
savings and loan associations, by purpose and class of association
loans by all
[Thousands of dollars]
Class of association
P u r p o s e of loans
Period
1941
January-November
_ _
________
November . _ _ _ _ _ _
_ _ _. _ _
._
1942
January-November
November
___ _ ._
December..
_
Total
loans
Construction
H o m e purchase
Refinancing
Reconditioning
L o a n s for
all other
purposes
$437,065
$580,503
$190.573
$61,328
$109,215
$1,378,684
$584,220
$583,804
$210,660
406, 775
30,103
537,358
48,816
176,149
13,340
57,158
4,267
101,036
8,223
1,278,476
104,149
543, 038
41,910
539,844
46,890
195, 594
15,949
190,438
573,732
165,816
41,695
78,820
1,050,501
412,828
476,080
161,593
181,966
9,275
8,472
532, 292
43,984
41,440
153,048
12, 472
12,768
39,496
3,007
2,199
73,071
5,241
5,749
979,873
73,979
70,628
385,447
28,163
27,381
443, 329
35, 441
32, 751
151 097
10, 375
10,496
95, 593
7,173
4,597
8,572
9,853
9,039
8,946
9,209
10, 616
13,211
7, 452
6,928
737,715
32,820
39,084
55, 235
65,088
67,826
74.885
77, 555
82,894
86.016
83,259
73,053
154,704
11,408
12,510
14,874
15,040
14,843
15,913
14,925
14,600
13,799
14,025
12,767
28,151
1,667
1,953
2,377
2,484
2,606
2.707
2,807
2,809
3,229
2,874
2,638
70, 226
4,788
5,183
6,127
6,270
6,176
6,425
6, 859
6,470
6,718
7,540
7,670
1,086,389
57,856
63, 324
87,185
98, 735
100,490
108, 876
111,355
117,389
122,973
115,150
103,056
468,110
23,390
26,566
37,850
42, 717
41,835
46,730
48, 370
51,172
54,100
50, 576
44, 804
495, 327
26, 910
28,175
38,595
44,461
47, 818
50,182
50, 648
53,497
55,907
52,026
47,108
122, 952
7,556
8,583
10, 740
11,557
10,837
11,964
12,337
12, 720
12,966
12, 548
11,144
Federals
State
members
Nonmembers
1943
Januarv-November
January
February..
March
April
Mav
June
July
August
September
___
October .
November
January 1944
_ _
__
,...
_
_
___ _
___
_
113
Table 7.—LENDING—Estimated volume of new
loans by savings and loan associations
Table 8.—RECORDINGS—Estimated nonfarm
mortgage recordings, $20,000 and under
NOVEMBER
[Dollar amounts are shown in thousands]
N e w loans
Federal H o m e L o a n
B a n k District a n d 1
class of associa- I
N o v e m - October N o v e m tion
ber 1943
1943
b e r 1942
$103,056 $115,150
U N I T E D STATES
Federal
State m e m b e r - . .
Nonmember
B oston.Federal
S t a t e m e m b e r . __
Nonmember
..
New York..
Federal
State member
Nonmember
i
1
Pittsburgh
Federal-..
State m e m b e r . . .
Nonmember
Winston-Salem
Federal
S t a t e m e m b e r . _.
Nonmember
Cincinnati
Federal
State member
Nonmember
Indianapolis
Federal
State m e m b e r - _ .
Nonmember
Chicago.Federal
State m e m b e r - . .
Nonmember
Des Moines
Federal
State m e m b e r . - _
Nonmember
Little Rock
Federal _
State m e m b e r . . .
Nonmember
Topeka
Federal
State m e m b e r . . .
Nonmember
1942
$73, 979 $1, 086, 389 $979,873
Percent
change
+10.9
44,804
47,108
50,576
52,026
12,548
28,163
35, 441
10, 375
468,110
495, 327
122, 952
385,447
443,329
151,097 J
+21.4
+11.7
-18.6
10,266
9,953
6,959
90, 328
97,121
-7.0
3,166
5,448
1, 652
2,800
5,581
1,572
1, 933
3, 962
1,064
26, 502
49, 283
14, 543
29,291
52,329
15,501
-9.5
-5.8
-6.2
11,144 1
8,048
9,241
7, 905
81, 470
99,519
-18.1
2,259
4,158
1,631
2,624
4,639
1,978
1, 974
3, 728
2, 203
20, 762
41, 990
18, 718
23,735
38,307
37,477
— 12.5
+9.6
-50.1
9, 224
10,167
7, 414
93,174
90,350
' +3.1
3,734
3,235
2,255
4,324
3,390
2,453
2,54£
2, 278
2, 59(i
37, 425
30, 462
25, 287
33,167
26,894
30,289
+12.8
+13.3
-16.5
12,024
13,939
9, 437
130, 753
130,767
3, 674
4, 664
1, 099
65, 955
52,118
12, 680
55,569
60,716
14,482
+18.7
-14.2
-12.4
14, 000
197, 705
181,435
+9.0
6,073
4,926
1,025
17, 591
6,944
5,826 ,
1,169
19,004
0)
7,209
9,139
1, 243
7,633
9,908
1,463
4, 62.5
7, 824
1, 557
77, 318
105, 049
15, 338
66,760
95,661
19,014
+15.8
+9.8
-19.3
5,772
7,183
3, 710
65, 357
53,110
+23.1
3,690
3,142
351
1, 933
1, 563
209
33, 558
28,162
3, 637
26,651
23,723
2,736
+25.9
+18.7
+32.9
2,743
2,694
335
10, 720
11, 658
6, 719
109, 815
94, 915
+15.7
4,506
4,853
1,361
4,969
5, 356
1,333
2, 610
3, 510
5_9
42, 917
54, 053
12, 845
34, 661
46, 345
13,909
+23.8
+16.6
-7.6
5,646
6,899
3,1C9
61,138
47, 586
+28.5
3,091
1,967
588
3,609
2,466
824
1, 6*4
1, 090
385
30, 975
21, 693
8, 470
22, 521
17, 588
7, 477
+37.5
+23.3
+13.3
4,903
5,965
3,130
55, 775
45, 414
+22.8
2,104
2,704
95
2,536
3,329
100
1, 0?8
2, 007
45
23, 087
31. 761
'927
17, 046
27, 530
838
+35.4
+15.4
+10.6
4,584
5,528
2, 938
53,182
41, 292
+28.8
2,488
1,407
689
2,831
1,624
1,073
1, 656
921
381
29, 667
15, 570
7, 945
22, 770
11,913
6, 609
+30.3
+30.7
+20.2
3,713
3,682
2, 302 i
41,086 I 30,651
+34.0
2,345
1,182
186
2,361
1,157
164
1, .11
€13
178
25, 596
19, 283
13, 718
9, 298
1, 772 1 2,070
+32.7
+47.5
-14.4
10, 565
11,931
6,220
106, 606 | 67~713~
+57.4
5,086
5,395
84
6,255
5,608
68
54,348 I 33,993
33,025
51, 468
695
790
+59.9
+55.8
+13.7
Portland
Federal
State member
Nonmember
Los Angeles
C u m u l a t i v e n e w loans
(11 m o n t h s )
1943
Federal
State m e m b e r . . .
Nonmember
2, 974 I
3, 281
65
1943
[ T h o u s a n d s of dollars]
Federal H o m e
Loan
B a n k District a n d
State
Savings ;
and
loan
associa-,
tions
UNITED STATES?
$111, 818 $23,115| $64,8771 $15,141J $82, 3071$56,415j £353, 673
Boston
Total
961
2, 927
7, 289
5, 242
3,862
30, 715
694
46
188
19
3
1, 574
590
4, 075
427
366
257
1,558
399
2, 389
241
510
145
1,197
121
2, 202
77
219
11
1, 390
150
921
103
301
62
7,894
1,731
16, 946
1,087
2,404
653
7,875
2, 039
5, 552
4, 970 11,466 10, 165
42, 067
3,032
4, 843
527
1, 512|
3, 289
589
2, 2631 4, 38l|
3, 534
7, 932
3,687
6,478[
14, 658
27,409
_
8,562
1, 800
5, 704
624
5. 039
3, 280
25, 009
___
197
7, 547
818
110
1,441
120
4, 576
29!
571
24
235
4, 252
552
104
3, 007
169
795
21, 394
2,820
12, 753
3, 232
4, 724
4, 098
34, 348
New Jersey..
New York..
Winston-Salem
Other
mortgagees
1,481
425
7,171
220
1,005
132
New York
Delaware.
Pennsvlvania
W e s t Virginia
Individuals
10, 434
Connecticut
Maine
_. ....
M assaehusetts
New Hampshire-. . . .
Rhode Island
...
Vermont
Pittsburgh
Insur- Banks M u tual
and
ance
savtrust
comings
panies companies 1 b a n k s
..
____.
Alabama... _ _ _ _ _ _
D i s t r i c t of Columbia-_
Florida
._ _ _
Georgia.._
Maryland
. . _
N o r t h Carolina
'
South Carolina
...
V i r g i n i a - . . _.
_
<
345
2,252
1, 419
1,100
3, 957
1, 826
308
1,546
249 J 1, 0081
574
336
958
396
148
420 ]
219!
181
66
9, 475
415|
480
687
848
722
327
315)
930
66!
766
1,117
3,033
818
1,125
851
448
1,317
461
483
335
811
379
956
469
227 i
.438
2,583
4,520
6,908
3,541
6,974
3,893
1,517
4,412
.
20,134
2,657
8, 243
1,605
5,224
3, 717
41, 580
Kentucky..
Ohio
Tennessee
1,844
17, 684
606
361
1,522
774
657
7,041
545
1,605
. 217
4,672
335
146
1,792
1,779
3,225
34, 316
4,039
Cincinnati
_
Indianapolis
Indiana...
Michigan _
Chicago.
Illinois..Wisconsin
Des Moines
Iowa
Minnesota
Missouri . . .
North Dakota
South Dakota
Little Rock
Arkansas
Louisiana
Mississippi
N e w Mexico
Texas
Topeka
Colorado
Kansas
Nebraska
Oklahoma
Portland
Idaho
Montana
Oregon
Utah
Washington
Wyoming
Los Angeles.
Arizona...
California
Nevada
_ _
__
5,864
2,631
5,684
36
2,770
5,146
22,131
4,014
1,850
732
1,899
1,966
3,718
36
1,107
1,663
856!
4, 290
8,711
13,420
11,660
1,467
5,089
17
5,409
7,415
31,057
8,724
2,936
964
503
3,112
1,977
17
2,988
2,421
6,879
536
22,667
8,390
6,785
1,960
4,379
78
4,465
3,270
20,937
553
1,243
2,409
98
162
271
547
2,408
21
23
3,726
5,453
10,805
497
456
1551
1,778
2,320
2,364
179
144
647
1,049
109
969
618
2,575
90
127
6,507
2,558
1,578
5,243
2,168
18,054
362
2,020
237
130
3,758
194
379
258
6
1,721
172
84
197
144
981
280
930
351
214
3,468
30
467
172
8
1,491
1,038
3,880
1,215
502
11,419
6,112
821
2,344
4,023
1,809
15,109
852
1,861
1,051
2,348
77
92
426
226
330
513
455
1,046
1,996
384
491
1,152
403
379
118
909
3,658
3,229
2,541
5,681
3,888
509
3,154
456
2,851
3,937
14, 795
317
159
902
602
1,732
176
13
19
237
141
99
125
86
291
632
1,911
109
31
286
245
1,220
258
697
145
73
25
691
390
2,752
6
814
534
3,372
2,023
7,616
436
21,100
7,548
57,871
721
45
20, 203 7,492
11
176 1
1,249
56, 316
306
11, 244
2,480 15,499
211
23
249
10, 934 2,451 15, 236
61 1
52
6
78
425
1 Less than 0.1 percent.
114
Federal Home Loan Bank Review
Tabie 9 . — M O R T G A G E
RECORDINGS—Estimated volume of nonfarm mortgages recorded
[Dollar amounts are shown in thousands]
Savings a n d loan
associations
Banks and trust
companies
Insurance
companies
M u t u a l savings b a n k s
Oth er
mortgE igees
Individuals
All
mortgagees
Period
1942: J a n u a r y - N o v e m b e r
November.
December
_
_
1943: J a n u a r y - N o v e m b e r . _ .__
January
February .
March _
.
April
May._
June._
July
August.
.
September
October . . .
November
. _
Total
Percent
Total
Percent
Total
$1,095,052
80. 970
75, 494
59.8
29.1
28.4
$338,440
25, 950
23, 303
9.2
9.3
8.8
$828, 660
58, 519
57,050
1,136, 329
64, 935
66, 938
85,642
- . 101,135
107, 221
113,431
116, 406
119,385
126, 586
.,. 122, 832
111,818
32.2
28.4
30.5
31.8
32.7
32.8
32.5
33.1
33.6
33.2
31.8
31.6
257, 678
19, 900
18,064
22,198
24, 558
24, 435
26,613
25, 586
24,072
23, 996
25,141
23,115
7.3
8.7
8.2
8.2
8.0
7. 5
7.6
7.3
6.8
6.3
6.5
6.5
685, 529
48, 640
44,273
53,186
63, 385
65, 688
65,656
64. 766
68,043
72,140
74,875
64, 877
Table 1 0 . - F O R E C L O S U R E S - E s t i m a t e d
Percent
Total
22.5 $155,034
11,596
21.0
10,640
21.5
19.4
21.3
20.1
19.7
20.5
20.1
18.8
18.4
19.1
19.0
19.4
18.3
140,142
8,045
7,895
9,536
11,122
12, 940
14,718
15,329
15,061
15, 332
15,023
15,141
Percent
Total
Percent
Percent
Total
4.2 $678,490
4.2
55, 830
4.0
54,207
18.5 $581, 531
45,456
20.1
20.4
44, 712
15.8 $3, 677, 207
16.3
278,321
16.9
265, 406
100.0
100.0
100.0
4.0
3.5
3.6
3.5
3.6
3.9
4.2
4.4
4.2
4.0
3.9
4.3
22.1
22. 2
22' 7
22.'2
21.3
21.4
21.6
22.3
22.1
21.9
22.6
23.3
15.0
15.9
H.9
14.6
13.9
14.3
15.3
14.5
14.2
15.6
15.8
16.0
3, 530,412
228, 283
219,882
269,419
308,957
327,092
349,046
351,516
355, 432
380, 809
386, 303
353, 673
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
781,249
50,583
49,854
59, 662
65,807
70, 054
75,183
78,594
78,455
83,320
87, 430
82, 307
529,485
36,180
32, 858
39,195
42,950
46. 754
53, 445
50. 835
50, 416
59, 435
61,002
56,415
Table 1 1 . — F H A — H o m e mortgages insured
nonfarm real-estate foreclosures, by Federal
Home Loan Bank District
Title II
Title I
Class 3
Period
Nov.
1943
Oct.
1943
Nov.
1942
1943
1942
1,888
1,765
3,081
23, 881
39, 404
-39.4
190
480
302
203
214
41
97
97
96
73
21
74
202
475
251
199
150
32
97
105
89
83
16
66
289
658
574
375
329
98
160
201
128
99
23
147
2,505
6,304
4,010
2,786
1,960
491
1,355
1,501
854
923
229
963
4,509
9,146
6,615
4,560
3,673
1,127
2,343
2,348
1,410
1,386
484
1,803
-44.4
-31.1
-39.4
-38.9
-46.6
-56.4
-42.2
-38.1
-39.
-33.4
-52.7
-46.6
U N I T E D STATES
Boston
__
N e w Y o r k . ___
Pittsburgh
_ _ _
W i n s t o n - S a l e m - ._
Indianapolis . .
- Chicago
- .
Des Moines
Little Rock
...
...
T o p e k a __ . . . . . . _ . . . . .
Portland
Los Angeles
Title VI
New
Percent
change
Federal Home Loan B a n k
District
l
[Premium paying; thousands of dollars]
Cumulative
(11 m o n t h s )
Foreclosures
Percent
Total
1942: N o v e m b e r
December
1943: J a n u a r y
Februarv ..
March..
April
Mav
June
Julv
Ausust..
September.
October.^
November
...
_.
_.
Existing
Total
insured
at e n d of
period
726
557
21,893
19,187
17,071
19, 530
40,195
43. 214
4,581,414
4, 663, 902
167
84
706
2-50
41
s-19
2-25
27
2-25
:-18
35
14,172
8,495
5,690
3.463
2,894
2.606
2.424
1.563
1.479
'818
833
17, 084
11,846
13.175
12, 704
15, 248
16, 759
18, 502
18. 519
18, 737
18. 856
20, 499
40, 649
37,168
43, 523
35, 878
39,511
41, 629
43, 445
49,518
46,365
48. 571
48, 421
4, 735, 974
4,793, 570
4,856, 664
4, 908, 659
4, 966, 353
5,027, 328
5, 091, 674
5,161,301
5, 227,857
5, 296, 084
5, 365,872
1
Figures represent gross insurance written during the period and do not take
account of principal repayments on previously insured loans.
> Adjustments in loans reported in previous months.
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 1943
P r i n c i p a l assets,
N o v e m b e r 30, 1943
C a p i t a l a n d principal liabilities,
N o v e m b e r 30, 1943
Federal H o m e Loan Bank
Repayments
Advances
outstanding
$45
986
480
240
975
241
410
99
97
390
100
1,030
$2,408
1,697
1,044
2,016
1,348
1,075
2,865
757
815
167
126
1,103
$10,256
17, 956
10,829
9,631
9,675
10,387
13,377
7,668
3,599
4,257
2,327
16,394
N o v e m b e r 1943 (all B a n k s )
5,093
15, 421
116, 356
32,311
October 1943
8,299
11,981
126, 683
20, 743
N o v e m b e r 1942 . . . __ _
4,011
13, 503
121,886
73,478
107, 734
Advances
B oston
New York. .
. .
Pittsburgh
._
Winston-Salem
_ _
Cincinnati _ _
Indianapolis
....
..
Chicago. ._ . . .
__
Des Moines. . .
L i t t l e Rock . . . . . .
_.
Topeka . _
._
..
Portland
...
Los Angeles
...
i Includes interbank deposits.
January 1944
Government
securities
Cashi
$3,806
1,233
3,495
3,022
3,664
3,261
5,681
3,909
1,907
1,137
227
969
2
$9,815
19, 268
10, 557
5,335
19, 814
13,117
14,831
10, 990
10,482
7,366
7,741
12, 265
Capital 2
Debentures
$19,587
27,103
16,371
17, 531
24, 376
13, 758
22,067
12,347
12, 362
10, 383
8,341
15, 390
$3,000
9,000
8,000
0
3,500
8,700
6,000
9,000
3,500
1,500
1,800
12,000
141,581
199,616
142, 904
199,126
191,856
Member
deposits
T o t a l assets,
N o v . 30,
19431
$1,377
2,484
571
521
5,406
4,397
5,919
1,284
212
937
213
2,342
$23,971
38,604
24,980
18,054
33, 308
26,866
33,995
22,645
16,078
12,823
10, 357
29, 749
66,000
25,663
291,430
66,000
24,934
291 202
87,500
24,427
304, 228
Capital stock, surplus, and undivided profits.
II5
TabU 1 3 - S A V I N G S - S a i e s of war bonds
Table 14.—SAVINGS—Held by institutions
[Thousands of dollars]
[Thousands of dollars]
Period
Series E 2
Series F
Series G
Total
1941
$1,622,496
5,988,849
$1,184,868
2, 516, 065
S3,015,045
54i, 573
725, 777
$207,681
652. 044
44,766
65, 994
148, 211
222, 398
9.156. 958
734, 549
1, 014,168
814, 928
633, 572
720, 407
1,006,786
995, 234
696. 213
682, 871
661, 200
1,400,159
1, 340,148
665, 293
77,066
48, 328
43,858
109. 517
85, 893
35,149
37, 579
28,095
138,984
93,124
23, 449
348, 450
205, 295
180,011
353.421
253, 857
144,128
169, 241
112,434
387, 412
274, 877
109,404
1, 240, 444
887,195
944,276
1, 469, 724
1, 334, 984
875, 491
889, 691
801,729
1,926, 555
1,708,150
798,146
1942
November
December
1943
January
February
March
April
May
June
July..
August
September
October
November
Redemptions
$13,601
245, 547
36,843
47,919
55, 429
69, 440
126, 621
95, 458
97,488
134, 822
131, 424
144,966
148,498
137,496
164,412
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
loans !
E n d of period
1941: June..
December
1942: N o v e m b e r
December.
1943: J a n u a r y
February
March
April
May
June
July
August
September
October
November
j
|
$2,433,513
2, 597, 525
2, 912, 717
2, 983, 310
3,030, 919
3, 068,672
3.105,080
3,143, 943
3,194,029
3, 270, S34
3.318.900
3,362,380
3,389,891
3.435.798
3, 488, 270
Mutual
savings
banks 2
Insured
commercial
banks s
$10,606, 224
10,489,679
$13,107,022
13, 261, 402
10,620. 957
«!§, §26,666
11,104,706
!
Postal
savings'
$1,304,153
1,314,360
« 14, 870,000
"*
1, 396, 242
1,417,406
1, 445. 268
1,467, 833
1,492, 966
1, 517,167
1, 544, 712
1, 576, 266
1, 621, 641
1,660,499
1,683, 365
1, 716, 898
1, 752, 696
1
Private repurchasable capital as reported to the FHLB Administration.
* Month's Work. All deposits.
3 FDIC. Time deposits evidenced by savings passbooks.
*5 Estimated by FDIC.
Balance on deposit to credit of depositors, including unclaimed accounts.
Totals since May 1943 are unaudited.
Table 15.—INSURED ASSOCIATIONS—Progress of institutions insured by the FSLIC
[Dollar amounts are shown in thousands]
Operations
Number
of associations
P e r i o d a n d class of association
ALL
Total
assets
N e t first
mortgages
held
Government
bond
holdings
Private
repurchasable
capital
Government
share
capital
Federal
Home
Loan
Bank
advances
$33,518
43,892
$2,433,905
2, 597, 525
$206,301
196,240
256,470
193,452
2,912,717
2,983,310
260, 749
241,818
276, 785
376,177
186,954
580,087
Cash
New
mortgage
loans
N e w private
investments
$144,331
193,275
$85,117
63, 506
$61,448
74,801
$26, 779
35,728
43.6
47.8
169,257
169,167
103,329
113,977
48,017
46, 705
64,697
91,029
30,738
30,219
47.5
33.2
3,030,919
3,068,672
3,105,080
3,143, 943
3,194,029
3, 270, 834
3, 318, 900
3, 362, 380
3,389, 891
3,435, 798
3, 488, 270
148. 220
120,308
120,138
119, 572
119, 547
119, 252
74, 568
69, 941
69,920
69,720
69,690
99,037
82,652
66,970
75, 664
67,631
78,155
80,904
71,013
118,153
114,619
104, 565
39,149
44,076
61,139
69,604
69, 471
76, 899
77, 994
83, 068
87,878
81, 929
72, 936
119,923
73,455
83,403
83,242
78, 294
103,939
134,065
94, 229
83,970
87, 692
90,023
84,573
42,123
48,955
47,171
33,684
33, 704
97,117
50, 250
60,019
45,104
43,137
70 5
57.3
58.7
56 7
43.0
32.4
72.4
53.3
71.5
51 4
47.9
Private
repurchases
Repurchase
ratio
INSURED
1941: J u n e
December
._
-
December
1943* J a n u a r y
March
April
_
..
. -
June
July
September
$2, 555,393 $190,671
2,751,938 1 206,457
2,313
2,343
$3,159,763
3,362,942
2,396
2,398
3, 588,995
3,651, 598
2,875,165
2, 871, 641
2,405
2,415
2,415
2,417
2,422
2,428
2. 435
2,433
2,440
2,439
2,442
3,627,828
3,657,989
3,690.918
3,757,464
3, 811, 473
3, 880, 999
3, 875, 269
3,920,852
4,037,926
4,081,472
1,127,212
2, 865,632
2,866, 839
2,868,410
2,881,247
2, 892, 665
2, 918, 577
2, 931,482
2, 946. 968
2,971,411
2,992, 823
3,004, 071
1,452
1,460
2,028,138
2*173,326
1.687,087
1. 824,646
126,390
138,040
16,714
23,623
1,553,712
1,668,415
169, 247
160,060
103,696
144,049
57, 542
41,182
40,030
48,872
14,530
20,400
36.3
41.7
1,468
1,467
2.259,670
2,299,895
1, 862, 796
1, 853,868
164,430
117, 339
1, 839, 506
1, 882, 051
137, 208
137,208
75, 865
84,135
28,163
27, 381
42,076
58,937
18,174
16, 530
43 2
28.0
1,467
1,468
1,467
1,466
1,466
1,468
1,468
1, 466
1,471
1,468
1,467
2,264,817
2,278,839
2,300,638
2,349,831 1
2,380,241
2,426,079
2, 408, 687 ,
2,438,803
2,523,737
2,550,973
2,580,481
1.843,714
1,839, 245
1,839,302
1,846,536
1,849,999
1, 865, 991
1,871,478
1. 880, 513
1,896, 312
1, 908, 518
1,915,135
156,792
146,537
170,730
235, 524
109,181
369,954
1,906,323
1,928, 559
1,953,846
1, 979,864
2,011,373
2, 060, 502
2, 087, 404
2.117,053
2,135,010
2,164,155
2, 201,120
118,769
96,109
96,109
96,109
96,109
96,109
58, 239
55,021
55,021
55,021
55,021
72,046
58,489
46,820
54, 254
47, 725
56, 553
59,416
51,639
87, 648
84, 983
76, 034
23, 390
26, 566
37,850
42,717
41,835
46, 730
48, 370
51,172
54,100
50,576
44, 804
79,083
48,412
54,824
53, 675
50, 732
68, 235
87, 444
61,351
53,138
56,490
57, 915
55, 548
25,987
30, 238
27, 774
20,045
19, 586
64, 073
31,253
37,274 i
26,825
24,373
70.2
53 7
55.2
51.7
39 5
28.7
73.3
50.9
70.1
47.5
42.1
868, 307
927, 292
64,281
68,417
16, 804
20, 269
800,193
929,110
37,054
36,180
40, 635
49, 226
27, 575
22,324
21,418
25.929
12,249
15,328
5V7. 2
59.1
1, 012, 369
1,017.773
92,040
76,113
1,073,211
1,101, 259
32,049
31.959
27, 464
29, 842
19,854
19. 324
22.621
32, 092
12,564 1
13,689
42.7
103,957
95, 281
106,055
140, 653
77,773
210,133
1,124,596
1.140.113
1,151.234
1,164,079
1,182,656
1,210,332
1,231,496
1,245,327
1,254,881
1.271.643
1,287,150
29,451
24,199
24.029 1
23.463 |
23.438 !
23,143
16,329
14,920 !
14,899
14.699 '
14,669 .
26,991
24,163
20,150
21,410
19,906
21, 602
21,488
19,374
30,505
29,636 |
28,531
15.759
17,510
23,289 ;
26,887 !
27,636
30,169
29,624
31,896
33,778
31,353
28,132
40,840
25.043
28.579 ,
29,567 1
27,562
35, 704
46, 621
32.878
30, 832
31,202
32,108
29,025
16,136
18,717
19,397
13,639
14,118
33,044
18,997
22,745
.18,279
18,764
71.1
64,4
65.5
65.6
49.5
39.5
70.9
57.8
73.8
58.6
58.4
FEDERAL
1941: J u n e
December
.._.
December
1943* J a n u a r y
February.
March
_ .
May
June
July
September
November
STATE
1941: J u n e
December
December
March
June
July
September
116
.
:>
861
883
1,131,625
1,189,616
928
931
1,329,325 j
1.351,703
1.363,011
1.379,150
1.390,280
1,407,633
956 1 1,431.232
1, 454, 920
960
1,466,582
967
1.482.049
967
1,514,189
969
1.530,499
971
1., 546, 731
975
938
947
948
951 i
1,021,918
1,027, 594
1,029,108
1,034,711
1,042,666
1, 052, 586
1,060,004
1.066.455
1,075,099
1,084,305
1,088,936
55
5
Federal Home Loan Bank Review
U. S . GOVERNMENT PRINTING O F F I C E : 1 9 4 4
FEDERAL HOME LOAN BANK DISTRICTS
_ _
•
tOUNOARIft Of FEDERAL HOME LOAN tANK OltTIIICTt
FEDEKAL HOME LOAN IANK 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 B 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; LAURETTA Q U A M ,
Secretary-Treasurer; P . A . H E N D R I C K , Counsel; B E A T R I C E E . H O L L A N D ,
Assistant Treasurer; CONSTANCE M . W R I G H T , Secretary; G E R A R D
Assistant Secretary.
UNGARO, Counsel.
NEW
GEORCE
DES
YORK
M A C D O N A L D , Chairman; F .
V. D .
LLOYD, Vice
Chairman;
MOINES
E . J. R U S S E L L , Chairman; E . A. P U R D Y , Vice Chairman; R. J. R I C H A R D -
SON, President-Secretary; W . H . LOHMAN, Vice President-Treasurer;
J. M . M A R T I N , Assistant Secretary; A. E . M U E L L E R , Assistant
N U G E N T FALLON, President; R O B E R T G. CLARKSON, Vice President;
D E N T O N C. L T O N , Secretary; H . B . D I F F E N D E R F E R , Treasurer.
Treasurer; EMMERT, JAMES, N E E D H A M & L I N D G R E N , Counsel.
PITTSBURGH
E.
M.
LITTLE ROCK
T . T R I G G , Chairman; C. S. T I P P E T T S , Vice Chairman; R . H . R I C H -
ARDS, President; G. R. PARKER, Vice President; H . H . GARBER, Secretary-Treasurer; WILLIAM S. B E N D E R , Counsel.
W. C . JONES, J R . , Chairman; W . P . GULLEY, Vice Chairman; B . H .
WOOTEN, President; H . D . WALLACE, Vice President-Secretary; W . F .
T A R V I N , Treasurer.
WINSTON-SALEM
TOPEKA
H. S. H A WORTH, Chairman; E . C. BALTZ, Vice Chairman; O. K . LaROQUE, President-Secretary; Jos. W . HOLT, Vice President-Treasurer;
P . F . G O O D , Chairman; A . G. N A R T R O N F T , Vice Chairman; C. A. S T E R L -
ING, President-Secretary; R . H . BURTON, Vice President-Treasurer;
T . S P R U I L L THORNTON, Counsel.
JOHN S. D E A N , J R . , General Counsel.
CINCINNATI
PORTLAND
W M . M E G R U E BROCK, Vice Chairman; W A L T E R D . SHULTZ, President;
B E N A. PERHAM, Chairman; H . R. GRANT, Vice Chairman; F . H .
W. E . J u u u s , Vice President-Secretary; A. L . MADDOX, Treasurer;
JOHNSON,
T A F T , STETTINIUS SL HOLLISTER, General Counsel.
Treasurer; Mrs. E . M . J E N N E S S , Assistant Secretary; V E R N E D U S E N -
President-Secretary;
IRVING
BOGARDUS,
Vice
President-
BERY, Counsel.
INDIANAPOLIS
Los ANGELES
H . B . WELLS, Chairman; F . S. CANNON, Vice Chairman-Vice President;
F R E D . T . G R E E N E , President; G. E . O H H A R T , Vice President; C. R U S S E L L
PARKER,
Secretary-Treasurer;
A L E X A N D E R , Counsel.
HAMMOND,
BUSCHMANN,
ROLL
&
D.
G. D A V I S ,
Chairman; C. A . CARDEN, Vice Chairman; M . M .
H U R F O R D , President;
C. E .
BERRY,
Vice President;
Secretary-Treasurer; H E L E N FREDERICKS, Attorney.
F.
C.
NOON,
@FedFRASER