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FEDERAL
HOME
LOAN
BANK
Vol. !l,No. 4
N A T I O N A L HOUSING
AGENCY
JANUARY 1945
Washington, D. C
Mortgage Recording Trends in Perspective
99
Land Use: Foundation of Urban Planning
102
John B. Blandford, Jr., Administrator
W h a t Has W a r Done to Savings?
.
.
.
.
.
.
.
107
Election and Appointment of Directors
114
FEDERAL HOME LOAN
BANK ADMINISTRATION
John H, Fahey, Commissioner
REGULAR FEATURES
Home Front
98
Worth Repeating
FEDERAL HOME LOAN
BANK SYSTEM
FEDERAL SAVINGS AND LOAN
ASSOCIATIONS
111
War Bond Sales
112
Monthly Survey
117
Directory Changes of Member, Federal, and Insured Institutions
121
FEDERAL SAVINGS AND LOAN
INSURANCE CORPORATION
HOME OWNERS' LOAN
CORPORATION
UNITED STATES HOUSING
CORPORATION
TABLES
New family-dwelling units
122-123
Building costs
123-124
Savings and loan lending
124-125
Mortgage recordings
125-126
Sales of U. S. war savings bonds
...
126
F H A activity
...
126
Federal Home Loan Banks
...
126
Insured savings and loan associations...
...
127
ill
Central office for
M
G I " loans
In order to be most efficient in giving aid to veterans desiring loans
under the "GI Bill of Eights" the nine
commercial and savings banks of
Rochester, New York, have joined in
a single enterprise. One office, the
Veterans Financial Service, has been
formed to process loans under the
Bill, to counsel servicemen on financial
matters, and to assist them in obtaining loans at any local bank. The
office will be managed by a full-time
director who will have working with
him an advisory council representing
the constituent banks.
The Service will take applications
for the loans. The papers will be
processed through the Veterans Administration office; and the Service
will take care of the arrangements
with the local bank which the serviceman has chosen. * The completed
application and other necessary documents will then be sent to the lending
institution, which will give its final
approval and will handle disbursement
of the loan.
Connecticut banks make
credit agreement
A credit agreement of the banks of
Connecticut is interesting as a possible precedent for other state groups.
As interpreted from the recently published text, the aim of the Association
(formed by the Agreement) is to bring
as many banks as possible into the
Association, which will publicize loan
data, and instruct banks in lending
techniques which may be applied to
loans to small industries after the war.
A Credit Committee of from five to
seven members will direct the plan,
thus concentrating authority in a small
group. This will probably serve to expedite action.
The text states that . . . "banks
have entered into this Agreement for
the general purpose of encouraging the
extension of credit to Connecticut
firms, individuals, and corporations
98
11
during the post-war period . . . " A
bank signing the agreement commits
itself ". . . to make available upon demand, from time to time, an aggregate
sum, not exceeding at any one time
five per cent of its combined stock and
stated surplus, or fifty percent of its
lending limit to one borrower." A
bank may withdraw from the group
upon 10 days' notice.
Further facts on
" G . I." loans
In order to eliminate the possibility
of the rent regulations keeping any
veteran from obtaining possession of
accommodations purchased under the
"G. I. Bill," the OPA has announced
an amendment to the regulations.
When a veteran purchases a home
on borrowed money guaranteed by
the Administrator of Veterans' Affairs,
he does not have to meet the OPA regulation which requires that 20 percent
of the purchase price must be paid
before a certificate for the eviction of
a tenant can be issued.
In general, a tenant may not be
evicted in order that a purchaser may
occupy the premises, unless a minimum
of 20 percent of the purchase price has
been paid. Payments made from
funds borrowed for this purpose are
generally excluded.
Cotton-duck houses
take hard use
In 1939, faced with the necessity of
solving the farm housing problem and
of providing a use for surplus materials
in the area of their production, the
Farm Security Administration chose
two traditional and one experimental
media. In the Northwest, cedar was
selected as a housing material while
adobe was used in Arizona. The use
of cotton duck for roofs and exterior
walls was tried out in Alabama and
Florida; enough time has now elapsed
to show the practicability of this material in the construction of small
low-cost houses.
For five year-s, two of the buildings
have been deliberately neglected.
One, in Alabama, was neither repainted nor repaired; however, the
first sign of disrepair occurred only
recently, when a leak developed in the
roof. Traces of mildew, too, were
seen about a year ago. Now the
house will get a new coat of paint.
The roof of another Alabama dwelling
began to leak; however, when the
owner removed the whole roof to
replace it with shingles, it was found
that the material was still strong and
serviceable.
The Florida houses, which had been
given a coat of paint at the end of
three years' use, were declared to be
in excellent condition.
It was concluded, from the results
of the experiment, that cotton duck
requires painting about every four
years, like wood; but the paint used
should be resistant to fire, water,
weather and mildew. The duck may
last for an indefinite period of time if
properly treated; and, if securely
fastened to a firm surface, the material
provides tight insulation.
Housing of essential
workers pressing
The most important job for the
National Housing agency, according
to Administrator John B. Blandford,
Jr., is the provision of critically
needed dwellings for ordnance, shipyard and railroad workers in war
industry centers, as well as in many
scattered locations along railroad lines.
An urgent necessity for almost 50,000
accommodations in order to keep
essential workers on the job and to
recruit additional labor has developed.
This present situation is similar to
the one which arose last April through
a shift in military demand, bringing
about a call for different types of
production.
In addition to the new construction which must be provided, it will
be necessary for more citizens to open
their homes to workers in many
communities, Mr. Blandford stated.
Federal Home Loan Bank Review
MORTGAGE RECORDING TRENDS IN PERSPECTIVE
A survey of what has been happening to mortgage credit since the
world went to war can be both a record and a guide. This articlef
based on a comparison of annual January-September data for the
past five years, is designed to serve these purposes. By showing the
road we have traveled, it gives a sense of direction necessary for a
constructive approach to the important period ahead.
•
C R E D I T developments and policies in the field
of mortgage finance are of immense importance
in yielding to or restraining a reckless inflationary
spiral like that during and after World War I. Unfortunately, no statistical data carry back far enough
to permit an accurate comparison between present conditions and those of two decades ago. However, even
granting that no direct parallel could be drawn, a review
of recent developments against a mental back-drop
of the twenties provides food for serious thought.
Mortgage lending and recording statistics are the
basic measures of activity in the home-credit field.
The comprehensive nature of the recording data
published monthly in the REVIEW—covering recordations by the various types of mortgagees of
instruments of $20,000 or less on nonfarm residential
properties—makes this series a valuable index of the
general and particular trends within the industry.
Hence, a five-year study (in this case based on the
first nine months of each year since 1939) gives a
reliable picture of the course of recent events. The
signposts on the road we are traveling are there for
those who will read.
The average value of the more than 1,220,000
mortgages was $2,878, an increase of $23 over that of
the previous period.
The next two years, however, showed the effects
of the " Stop-Construction" Order and the imposition
of credit limitations on real-estate sales. Mortgage
recordings during the 1942 period amounted to only
$3,042,000,000—down 18 percent from 1941. In
1943 the decline was much smaller but about sufficient
to wipe out the last of the gains registered in 1940 and
1941. At the close of September 1943 recordings for
the period totaled $2,790,000,000. However, the
average value for the nine-month periods in 1942 and
1943 continued to increase and amounted to $2,787
and $2,999, respectively.
The upward trend, which, commencing in the
early summer of 1943, had bolstered the declining
volume of recordings, continued in 1944. By the
end of September of that year mortgage recordings
totaled $3,434,000,000—almost as high as the peak
of 1941. This represented a 23.1 percent increase
over the like period of 1943 and a larger gain than
that experienced in 1940, the last year of the defense
"boom" preceding any wartime restrictions.
The National Picture
In 1939 the real-estate cycle in this country was
on the up-swing from the depression and more than
950,000 nonfarm mortgages were recorded during
the first nine months of the year. They represented
a value of $2,571,000,000—an average of $2,706.
The defense program, launched in mid-1940, reinforced the improving real-estate market and by the
close of the third quarter of that year recordings
showed a 16-percent improvement over the like
period of 1939. The 1940 volume amounted to
$2,988,000,000—more than 1,080,000 mortgages with
an average value of $2,755.
Stimulated by an increased volume of construction
and the generally improved economic conditions of
1941, nine-month recordings increased 18 percent to
$3,514,000,000—a post-depression peak which represented an investment greater than during all of 1939.
January 194S
99
Although no direct comparison is possible between
new "lending" and "recording" figures, the former
show that home-purchase loans have formed the
backbone of wartime lending activity during the
period of controls over residential construction. A
further proof of the major role played by sales of
existing properties is apparent from the fact that
real-estate overhang has been reduced to insignificant
proportions. The critical housing situation in many
areas, coupled with greatly increased incomes, has
created such a ready market that many properties,
formerly unsaleable, have been easily disposed of.
Unless substantial down payments were made,
many of these would represent doubtful security to
back up the mortgages that are being made. Inflated
appraisal values on these and other existing properties
together with the prevalent use of high percentage
loans help to explain the 17-percent rise that has
occurred in the average value of mortgages recorded
over the five-year period under consideration.
Another factor contributing to this increase is the
type of property which has recently proved saleable—
that is, larger and more expensive residences than
had previously been in demand.
The foregoing comparisons show what has been
happening on an over-all basis in mortgage finance,
but a breakdown of these figures by type of mortgagee is even more illuminating. Although the
various types of mortgagees have occupied practically the same order of importance in the mortgagecredit structure, the share of total business accounted
for by each has shown some interesting fluctuations
within this framework.
Individuals
I t is in the category of "individuals," showing an
increase of 86 percent in dollar volume during the
last five years, that the most significant changes have
taken place. In 1939 recordings amounted to $443,000,000, approximately 17 percent of total business.
The next two years showed a drop to about 16 percent
of all nonfarm mortgages of $20,000 or less, with
dollar amounts of $478,000,000 in 1940 and $580,000,000 in 1941. However, in 1942, in spite of the
fact that they experienced a decline of 4.3 percent
from their previous year's business, individuals
accounted for 18.3 percent of all mortgages recorded
in the first nine months of that year. In 1943, when
all other types of lenders were suffering declines,
individuals increased their business by 10 percent to
a total of $612,000,000. On the basis of recordings
amounting to 21.9 percent of the total business for
100
the January-September period of 1943, individuals
advanced from third to second place as a source of
mortgage credit. In 1944, individuals showed the
greatest percentage increase of any type of mortgagee (34.9 percent) and recorded a total volume of
$825,206,000. Although they remained in second
place, their relative participation increased to 24.0
percent of the total business which was done during
the period.
This almost steady rise in volume and share of
total mortgage financing by individuals has been
accompanied by a large rise in the average value of
instruments recorded. Although the mortgages recorded by this group have, during the five yearly
periods under consideration, shown the lowest average for any type of mortgagee, they have increased
consistently from $1,858 in 1939 to $2,498 in 1944.
This gain of $640 was second only to savings and loan
associations and topped all other lenders. Percentagewise, the average value of mortgages recorded by
individuals has shown the greatest gain (34 percent)
compared with the 17-percent rise in the average
value of all mortgages recorded.
While individuals are by no means responsible for
the entire inflationary threat, as a group they probably represent the greatest potential danger. Subject to no industry leadership in the matter of standards or policy recommendations, their activities are
limited (within the framework of general wartime
controls) only by their own interpretations of enlightened self-interest. I t is, in the very nature of
things, essential for institutional lenders to operate
within reasonable bounds in order to help prevent, so
far as possible, the recourse to cut-throat competition.
Federal Home Loan Bank Review
Savings and Loan Associations
Savings and loan associations have consistently led
the field as a source of mortgage credit. With a volume of $776,000,000 in recordings during the first
nine months of 1939, representing 31 percent of the
total business during the period, their participation
has increased somewhat during the past five years.
Only in 1942 did they drop as low as 29.9 percent
when life insurance companies, individuals and
"others" were increasing their share of business. By
last year, savings and loan associations had more than
regained their lost ground and accounted for 33.8
percent of all recordings.
The dollar volume of their business has increased
more ($385,000,000) since 1939 than any other type
of mortgagee, although the percentage gain of 47 percent was considerably less than that of individual
mortgagees. From $776,000,000 in the 1939 period,
the total value of their recordings rose 23 percent in
1940 and 17.5 percent the following year. In 1942,
savings and loan associations experienced a 19-percent decline (second only to that of banks and trust
companies) but dropped only 1 percent in 1943 when
all mortgagees, except individuals, were faring considerably worse. During the first nine months of last
year the volume of savings and loan recordings rose
28.7 percent over the corresponding period of 1943,
and stood at $1,160,620,000.
Since these institutions have always specialized in
meeting the mortgage credit needs of the low- and
medium-income groups, the average value of their
loans, while showing a steady increase, has consistently been smaller than any except those recorded by
individuals. From $2,454 in 1939 it has risen 27 percent to $3,128 in 1944.
Banks and Trust Companies
The remaining types of mortgagees showed decreasing relative participation in the home-credit field
although all of them, except life insurance companies,
increased the dollar volume of their recordings over
this five-year period. Banks (including their trust
departments) and trust companies have continued to
remain in third place but their relative participation
has declined steadily from 25 percent of the 1939 volume of recordings to 19.4 percent last year.
From a peacetime total of $647,000,000 in mortgage recordings the dollar amount has increased during three of the last five years and, for the JanuarySeptember period of 1944 stood at $665,000,000.
This represents an increase of 3 percent. During the
entire period the average value of mortgages recorded
January 194S
by these institutions has consistently been second
only to that shown by life insurance companies. I t
rose $359 from $3,178 to $3,537.
" Other" mortgagees have maintained a relatively
stable position as the fourth-ranking source of mortgage credit. (This is a rather broad classification
which includes miscellaneous lenders such as mortgage companies; endowment, fraternal or educational
trust funds; trustees for estates, etc. I t therefore
shares some of the characteristics of institutional and
of individual mortgage lenders). A resume of their
participation in the residential mortgage field shows
that they are now doing about the same relative share
of the business as they did in 1939—that is 14 percent. The dollar volume over this period has increased 15 percent—from $396,000,000 to $468,000,000 while the average value of their mortgages has
shown a somewhat greater percentage gain—having
risen 19 percent from the $3,229 recorded in 1939 to
$3,843 last year.
Mutual Savings Banks
Because of the concentration of mutual savings
banks in less than 20 states, they have never accounted
for more than 5 percent of national business. The
very fact of their location, chiefly in the Northeastern
states where, in general, there has been relatively less
population and industr ial growth in the last five years,
has hindered these institutions in making a comeback
from early wartime declines. Although their dollar
volume of business is now 9 percent greater than during January-September 1939, it still amounts to only
$120,000,000. However, in common with the mort(Continued on p. 127)
ESTIMATED AVERAGE SIZE OF
NONFARM RESIDENTIAL MORTGAGES RECORDED
MORTGAGES OF $ 2 0 , 0 0 0 OR LESS
1939 COMPARED WITH 1944 (First nine months of each year)
THOUSANDS OF DOLLARS
'^^^S^k^0.-"M^h^W^
SAVINGS 8
LOAN ASSNS.
BANKS &
TRUST COS.
b
--l939
—1944
••ft
•Hi
Wggg^^S
ilium
INSURANCE
COMPANIES
•HI
MUTUAL
SAVINGS BKS.
DIViSION OF OPERATING STATISTICS
FEDERAL HOME LOAN BANK ADMINISTRATION
101
LAND USE: FOUNDATION OF URBAN PLANNING
In October, the REVIEW published an article, "Urban Planning: A
Key to Post-war Problems/' as the introduction to a series of articles
on the subject. This is the second in the series and is intended to
provide a brief discussion of land-use patterns as the basis for urban
planning. This series has been prepared with the cooperation of the
Urban Development Division of the National Housing Agency.
•
U P P E R M O S T in the minds of planners today is
the question: Is our land being put to its best
social and most economic use? Too frequently the
answer is in the negative. Often wasteful exploitation of agricultural and mineral lands has been
brought to public attention. Now, more than before, we are also hearing of the waste and neglect of
urban land for which it is believed that higher and
more efficient employment can be found through the
application of careful planning. With this growing
concern as to the utilization of our land has come an
appreciation of the fact that it presents a problem
demanding continual examination for its relation to
the changing city.
Geographic Factors
Geographic conformation is probably the strongest
determinant in land use. This is particularly true
in the location and development of urban areas
which by their nature stand or fall largely by their
access to easy natural routes of transportation.
The richness of the land itself in mineral and in
agricultural resources is another factor which combines with topography and transportation routes to
fix city sites. In the case of Chicago, which is discussed at some length below, Lake Michigan provided
not only a means of cheap water transportation but
also acted as a barrier to land traffic routes which
tended to converge at the southwestern side of the
lake which became the site of the present city. Pittsburgh, straddling the junction of the Allegheny and
Monongahela Rivers, is another example of a city
strategically located for commerce and industry.
I t is interesting to recall that both are the sites of
early forts and trading posts and that the same trade
channels which now flow to modern world markets
were formerly the paths of military as well as economic conquest of North America. I n both cases,
proximity to coal fields and ready access to more
distantly located iron ore made Chicago and Pittsburgh rise to prominent positions among the worlds
steel producing centers.
102
Within the more narrow, but nevertheless related
confines of urban planning the same forces are at
work. Just as national topography determines city
sites, so do the surface conformations of the land
largely determine the extent, direction and type of
urban development. The principal function of
planning is to determine the most advantageous
patterns of use obtainable within the limitations
imposed by topography and local social and economic needs.
Land Use Surveys
Although urban planning may be broader in
scope than the mere establishment of proposed patterns of land use, it is from this base, the land and
its use, that planning must make its start, and it is
also here that its results will be most evident. As
it is known today, urban planning involves primarily
the study of problems peculiar to existing cities and
communities, many of them growing, some appearing to be temporarily static in population, and a few
showing signs of shrinkage. Therefore, it is frequently the re-use of land that demands the most
attention and to a large degree characterizes the
planning operation. A generation or so ago this
function involved little more than the design of
public buildings and parks and the layout for new
streets and thoroughfares. As the American city
has grown older, though, it has accumulated the
usual difficulties that come with age. Consequently,
the scope of planning has broadened to weed out the
wild oats sown in periods of rapid expansion.
" Basic to any urban planning is a realistic landuse plan for the community. This land-use plan
must show the location of industry, housing, recreation areas, highways and naturally it must show the
relationship of each to the other. No planning is
valid unless it takes into account the relationship of
industry to the housing of industrial workers and
the relationship of schools and recreational facilities
to dwellings. No planning is realistic which fails to
take into account methods of transporting workers
Federal Home Loan Bank Review
from their homes to their places of business and
places of work." 1
As in dealing with any urban planning problem,
the first step is one of identification — designation of
the area and a descriptive enumeration of its contents. Ordinarily this takes the form of an inventory of land uses, accounting for every block and
plat. This survey, together with an analysis of the
evolution of existing uses, can be the most valuable
instrument in the entire operation, for it is upon
this foundation of factual information that almost
all determinations as to future uses will be largely
based.
Working from a knowledge of present land-use
patterns and their evolution, planners may diagnose
the ills of a specific area, determine their causes and
prepare the way for a conscious unification of future
city development. The master land-use plan furnishes the binding element which ties together and
assures the coordination of interrelated constituent
plans for housing, commerce, industry, transportation, utilities, and other community facilities and
services. By understanding the forces which motivated various phenomena in the previous haphazard
development of an area, a planning body may often
secure the best results by capitalizing upon the more
advantageous of these in blocking out suggestions as
to future building.
Example probably is the most satisfactory means
of illustrating the importance of land-use planning
as a unifying element, and of bringing some light to
bear upon both its problems and its techniques.
For this purpose, the plans of Chicago, Illinois,
Syracuse, New York, and Richmond, Virginia, have
been selected, each representing the product of a
different type of organization: Chicago, city commission; Syracuse, public participation; and Richmond, hired consultant.
Since planning in Chicago has been carried to
perhaps its most advanced stage, the Master Plan
of Residential Land Use for that city should command
first attention. Supporting the plan is the Chicago
Land Use Survey, prepared by the Work Projects
Administration under the direction of the Chicago
Plan Commission. This survey, published in two
volumes, represents the most complete analysis ever
made of any city, giving block-by-block details on
use. That portion pertaining to residential real
estate also shows additional data on the same detailed
basis with respect to type, age and condition of
structures and their tenancy, encumberances, rentals,
and so forth.
In presenting its findings and recommendations,
the Commission epitomized the relation of the landuse surveys when it pointed out that " t h e interrelationship of all land uses must be understood before
plans can be made for any single use." 2 To provide
this understanding, the evolution of all of the various
uses and their relationships to the over-all pattern
was traced from the time of the establishment of
Fort Dearborn in 1803. Explaining the influences of
the geographical conformation of the Lake Michigan
region which has made the city site a natural setting
for both industry and commerce, the Commission
traced the growth of the city pattern along the
general lines of the early surveyors' sections and the
radiating paths of the early trails. The former have
imposed a rather rigid grid pattern of city streets,
which the Commission plans to alter to as great an
extent as possible while the rebuilding of Chicago
progresses.
1
Walter Blucher, Director, American Society of Planning Officials (from a
letter).
2
Master Plan of Residential Land Use of Chicago, Chicago Plan Commission,
Chicago, Illinois, 1943, p. 21.
January 1945
Chicago Plan Commission
103
Traffic Planning
The routes of the early trails, however, have contributed to some extent to the breaking of this
rectangular block design, and the system of radiating
lines of traffic has been augmented down through
the years by the development of the railroads and
the construction of "els." However, even the railroads, to some extent, felt the confining influence of
the rigid grid pattern. Although approaches to
Chicago were from any convenient angle, rights-ofway tended to follow the block pattern where they
met the platted areas of the city.
Today, with the growth of motor transportation,
a further need is seen to expand through-traffic
routes by the construction of expressways. Therefore, the Commission has been working in cooperation with state, county and municipal highway
engineers to plan an express highway system within
Chicago which will be integrated with the exterior
pattern as constructed or planned.
Industry and Commerce
The industrial pattern of the city was found to
have grown apace wdth the development of heavy
transport arteries which have played a large part in
the determination of plant sites. In the early days,
these were concentrated mainly along the Chicago
River. However, the advent of the railroads saw
an expansion along both the radial and belt rightsof-way, spreading the industrial pattern over much
of the city and out into its satellite communities.
The development of express motor-transport has
also made artery-highway frontages desirable for
industrial purposes. Transportation, which facilitated industrial decentralization, has not been the
only motivating factor. In 1942 it was reported
that the city had suffered a very serious loss of
industries and commercial enterprises which had
relocated in order to escape taxes, building codes
and land costs.
The commercial layout of the city has generally
followed the gridiron street pattern, the convergence
of transportation routes resulting in a concentration
of the retail trade in the central business district.
However, long ribbons of commercial growth have
taken place along major diagonal streets (possibly
the result of over-zoning) while both major and minor
business centers have developed frequently at transfer points throughout the city. In addition to these
there are the neighborhood shopping centers designed
to serve conveniently their immediate residential
areas. These, the Commission reports, have not
104
FUTURE
PLANNING
AREAS
IN CHICAGO
CONSERVATION
IONSERVATION
STABLE
ARRESTED DEVEL
PROGRESSIVE DEVEL
NEW GROWTH
INEW GROWTH
VACANT
PRESENT NON-RESIDENTIAL AREAS
Chicago Plan Commission
been located according to any particular plan and are
sometimes "incompatible with adjacent land uses."
Residential Plan
In the presentation of the residential land-use
plan, the close relationship between residential and
non-residential uses is given particular emphasis.
Attention is drawn to the influence of industrial
inroads upon communities as reflected in the character and desirability of residences in such neighborhoods. Highways and railroads which bind the
city together have also become dividing barriers
between living areas.
As an instrument for the direction and coordination
of the many phases of planning for a major city, the
land-use studies of the Commission stand as a landmark. From these studies, trouble spots have been
identified and all portions of the city may be designated according to their life expectancy. To date,
only the codified breakdown of residential land has
been made public. By this action, a time sequence
has been established for the treatmient of these areas
according to their urgency.
Federal Home Loan Bank Review
Some idea of the physical meaning of this time
sequence for redevelopment can be gleaned from
the residential plan. Classifying the residential
areas of the city into eight planning categories
according to the nature of the dwellings which they
contain, it is contemplated that 242,000 units in
95,000 structures should be demolished within the
next 20 to 25 years to eliminate blight and near
blight which now covers 22 square miles of city land.
By the time that this work could be completed, the
Commission reports, many of the now so-called
conservation areas would have exhausted their
useful life and would be in need of similar treatment.
Obviously, it has been necessary to plan for the
most economic utilization of each area throughout
every phase of its life cycle. But one of the significant features of planning in Chicago is the recognition of inevitable obsolesence and deterioration and
the recommendation of steps to avert the extinction
of land-use value with the economic death of property
improvements. In essence, it is a plan for continual
urban rejuvenation and improvement, taking into
consideration the relation of every type of use to the
over-all city pattern.
Syracuse
In the plan developed for Syracuse, New York,
there is another example of a comprehensive land-use
study tying together all of the various types of
planning into one integrated whole. Last spring,
the Syracuse-Onondaga Post War Planning Council
published its Land Use Plan for the city. On the
basis of trends during the past decade, the Council
sought a flexible scheme to assure use of the proper
quantity and quality of land for each purpose and
to provide some stabilization for the areas designated
for each use in order to preserve both values and
tax revenues.
Anticipating continued decentralization in new
development, the prime problem was recognized to be
the salvage of central city land. To combat the spread
of blight and the loss of values and revenue, a broad
general pattern for future city growth was drawn up
calling for the segregation of incompatible land uses
by the extension of a system of parks, recreational
space and wooded lands. By withdrawing from
residential use homes in areas unsuited for comfortable and economic living, the Council believes
that losses due to excessive decentralization can be
quarantined to the least desirable portions of the
city. Extensive studies had revealed that the surplus of land was likely to increase.
To accomplish this plan, it was recommended that
all tax-delinquent properties in proposed open areas,
or buffer strips, be immediately foreclosed; that the
city acquire in these areas properties on which housing is or becomes substandard; and that where
advanced stages of deterioration are found on
properly located parcels, the city either acquire the
property or purchase development rights for a period
equivalent to the remaining useful life of the structures for the purpose of preventing unwarranted
improvement.
" To facilitate industrial development, it was recommended that from 200 to 300 acres of land most
suited to this use be acquired as soon as possible by
a special Civic Corporation, the purchase to be
financed through popular subscription by business,
professional and labor groups. By this means, it is
intended that the best sites for future industry be
preserved for that use, to be made available only
when actually needed.
Richmond
Richmond, Virginia, furnishes an example of landuse planning under a somewhat different arrangement than in the two cities discussed previously.
In this case, the City Planning Commission engaged
a private planning and engineering concern to undertake a study of land uses. I t was found that Richmond, like other American cities, had grown sporadi105
January 1945
623766—45
Syracuse-Onondago Post War Planning Council
2
cally, expansion having been " largely dictated by
the needs of the moment, land speculation and
individual interests taking precedence over the
community welfare." With this came the usual
result, haphazard building and a mingling of " heterogeneous and incompatible uses." Consequently,
the city has for a number of years been losing population in a flight toward decentralization. Concluding that 'this trend should be reversed, it was
recommended that future plans for Richmond concentrate upon the establishment of a coordinated
pattern of land uses. Current land-use maps showed
a bad dispersion and intermingling of all types of
properties, with commerce and industry threatening
a number of residential neighborhoods with blight.
From this analysis, three major problems were
identified for solution: (1) The elimination of intermingled land uses in individual areas and the lowering
of population density; (2) The elimination of blight
and the conservation of valuable properties in the
heart of the city; and (3) Planning future development in anticipation of a greater stabilization in
city size. " I t is apparent," the report concluded,
" t h a t the city should be very careful in directing
future growth into the logical areas for such growth
to avoid ruinous expansion of its present physical
plan and further depletion and shifting of its present
population." I t is believed that there is ample
area in present-day Richmond to support any growth
of population likely to occur within the next 10 to
20 years.
Planning Elsewhere
Although in the lead, these cities are certainly
not alone in the advanced development of land
planning. By 1940, it was reported that 128 American cities of over 30,000 population had authorized
the preparation of complete city plans based upon
full sets of underlying surveys, data and maps. 1
Since then, the number has been continually rising.
According to a tabulation prepared by the Office of
the General Counsel of the National Housing Agency,
by the beginning of 1944 a total of 34 states and the
District of Columbia had passed statutes authorizing
the establishment of local planning agencies. Of
these, 32 states allowed the creation of such bodies
by any city and in the majority of cases such powers
were also extended to towns and smaller communities. In recognition of the need for the coordination of urban planning, in 23 states the jurisdiction
i See National Resources Development Report for 1942, National Resources Planning Board.
106
of these local agencies was extended to include the
planning for areas adjacent to their jurisdiction.
Thus far, attention has been focused upon the
plans developed by individual cities. A glance at
measures being taken in other countries discloses
the tracings of future programs to apply land planning on a national scale. Last fall, the Town and
Country Planning Bill became law in Britain, granting broad authority to the government with respect
to land assembly for the redevelopment of blitzed
and blighted areas. Vesting authority in local officials, the law fixes the land price at the March 1939
valuation with two exceptions (owner-occupied small
homes and owner-occupied agricultural land) and
provides for financial assistance to local governments
from a Central Fund.
The Bill does not deal with the wider issues of
compensation and betterment, as covered in the
Final Report of the Uthwatt Committee, nor with the
location of industry. Its objective is to provide for
the replanning and redevelopment of town areas
which need to be laid out afresh and redeveloped as a
whole, either because of extensive war damage or
because of bad layout and obsolete development, so
that town redevelopment can be dealt with by an
ordered and comprehensive program.
Another example of movement toward wide-scale
land planning is to be found in Canada. 2 The Canadian National Housing Act of 1944 grants to the
Minister of Finance authority for research in and
the promotion of planning on community and regional levels. To put further weight behind planning
measures, financial assistance for the construction
of rental housing (government participation with
private lenders in the provision of credit and the
guaranty of minimum returns to life insurance companies on project operations) may be authorized only
in those communities the planning of which meets
with government satisfaction.
Particularly in recent years there has been a
broadening concept of land planning problems in this
country as well as elsewhere. State and national
programs are increasing affirmation of the principle
t h a t successful planning "for land use must always be
grounded in an understanding of the relationship of
each area to the surrounding region and to the
national whole, that some basis for the integration of
local planning into the over-all picture is virtually a
prerequisite to the attainment of goals for urban
development.
2 See "Canada Looks to Its Housing," F H L B REVIEW, December 1944, p . 77.
Federal Home toon Bank Review
WHAT HAS WAR DONE TO SAVINGS?
Accumulated savings of individuals deposited with financial institutions and invested in Government securities have shown an unprecedented expansion since December 7, 1941. Largely upon their
conservation and proper utilization depends the future of our economy
of free enterprise.
•
I T is a commonplace observation that war produces radical changes in almost all phases of a
nation's economy. Savings, as evidenced by experience in two and one-half years of the present war, is
an ideal case in point. By tentative estimate, the
total volume of selected types of savings of individuals—i. e., investments in savings and loan associations, reserves on life insurance policies, deposits in
mutual savings and insured commercial banks, postal
savings and the redemption value of U. S. savings
bonds (Series A through E and 2}{ percent postal
savings bonds) is placed in the vicinity of $95,000,000,000 at the middle of 1944, about 55 to 60 percent
higher than it was two years earlier just after the
Japanese attacked Pearl Harbor. How far the
general trend toward rising savings will go may not
easily be projected. However, as this enormous
accumulation continues its rapid growth, hairline
accuracy becomes unnecessary. The one factor
which is certainly apparent is that this vast sum of
liquid and semi-liquid wealth can, and probably will,
exert an enormous force upon our entire economic
structure.
Projections
Any attempt to project the effect of its impact
must obviously involve arbitrary assumptions on a
variety of other economic factors each of which is
necessarily based upon fallible opinions. The spread
of "authoritative" thinking today upon the general
j subject of post-war economic trends, and the equanimity with which students of these subjects reverse
their former ideas are indicative of qualifications
inherent in such projections.
j Thought today is divided as to the trend of future
peacetime economic activity. Not only is it split,
but the groups tend to gravitate toward diametrically
opposite poles, each with equally plausible arguments in support of its conclusions. On the one hand
there are those who forecast post-war inflation. On
the other hand, there is the school which warns
against an equally unhealthy deflationary extreme.
Behind this seeming division in thought, and particularly the movement of authorities from one camp
January 1945
to another, is a deep-seated uncertainty as to fundamental premises. This in itself is not peculiar to wartime, but its added significance arises from the
magnitude of the economic forces and the extremes
that they can reasonably be argued to produce.
What part may savings play in the post-war economy? If it is assumed that the country will swing
toward higher prices it can be reasoned that this
accumulation of savings—either as cash or as the
basis for credit expansion—could be used to bid us
into an inflationary spiral. The unleashing of such
tremendous buying power, if it were to go unchecked,
might outstrip a market already suffering from short
and unbalanced inventories and a productive plant
unequipped for sufficient immediate civilian production.
Deflationists, though, can point to the fact that a
buying public which experienced the depression of
the thirties—many of them facing unemployment as
war production cutbacks spread—is not likely to be
so readily separated from its savings. Certainly this
war has not duplicated on a comparable scale the
psychology of the silk-shirt prosperity of 1918.
Those who foresee deflation also point to the lack of
popular confidence in prospects for private capital
expansion that existed during the last war. The
AMOUNTS OF SELECTED TYPES OF LONG-TERM
SAVINGS HELD BY INDIVIDUALS
1920 - 1943
Is
P'
h
/§
§
• i
i
•i
§
E i
1920
t
I
i
i
1925
I
i
i
1
1930
i
i
i
i
1935
i
i
i
., 1 1f , 1945
1940
107
effect of Government-owned plant expansions has
caused alarm in some quarters. Anxiety is expressed
as to the effects of business taxes, contract renegotiations, and so forth.
I n a period of deflation a large volume of liquid
savings can act as an effective check upon declining
economic activity. Certainly the absence of such
liquidity increased both the severity and duration of
our misadventure of the last decade. There are
still signposts of this fact, and bulwarks have been
created against its repetition. However, legislated
safeguards are not in themselves sufficient to stave
off such conditions unless they are augmented by the
proper precautionary measures on the part of business and the general public—in particular the savings
institutions and the investors which they serve.
Thus, more than ever before, private lending institutions will be called upon to assume the responsibility
of encouraging thrift and assuring an efficient employment of savings now and after the war.
Savings in Wartime
g
What has war done to savings? Earlier, it was
stated that the total selected forms of individual
savings here under consideration are tentatively
estimated at about $95,000,000,000 as of the middle
of 1944. This reflects an acceleration in growth
during the first half of the past year coinciding
generally with the marked advance in income payments to individuals which occurred at that time.
I t is likely that this rate of gain will show some leveling, though, for the last half of the year since individual income payments have reflected much
greater stability since June.
The latest date for which firm estimates are
available—therefore the latest date on which changes
in the composition of these selected savings can be
ascertained—is December 31, 1943. At that time
the total of all types included in this survey was
Table 1.—Net changes in selected types of
private long-term savings
[Dollar amounts are shown in thousands]
Increase (1941-1943)
Type of savings
Savings and loan associations
Life insurance companies
Mutual savings banks
Commercial banks
Postal savings
U. S. savings bonds
2H% postal savings bonds
Total
108
Period of
comparable
increase
Amount
Amount
Percent
$779
3, 690
1,217
3,311
445
14,824
-2
+16.6
+13.7
+11.6
+25.0
+32.0
+312.1
-2.4
1936-1941
1939-1941
1930-1941
1934-1941
1932-1941
$759
3,496
1,106
3,552
477
24,262
+39.4
1926-1941
24, 632
0)
0)
placed at $85,804,000,000 according; to data compiled
by the Division of Operating Statistics. Then the
general influence of the war was definitely discernible,
both in the volume and pattern of savings.
To say that savings by the end of 1943 had increased by $24,262,000,000, or 39.4 percent, since
the United States entered the war is to give only dry
and rather inadequate emphasis on the unprecedented expansion in this field. Since figures running
into eleven digits are inclined to lose their true proportion, let it be put differently. For instance, the
rise in savings in 1942 and 1943 was almost equivalent to the total gain made in 15 years prior to our
entry into the war.
The conditions which produced such a gain in
total savings could not be expected to cause a uniform expansion in all of the various components.
As was anticipated, the strenuous campaigns for
support of the Treasury's war-finance program
attracted into war bonds the bulk of new accumulations by individuals during 1942 and 1943. This
alone accounted for more than 60 percent of the
total two year's growth—$14,824,000,000 out of
$24,262,000,000. This feature, above all others, has
characterized trends since December 7, 1941 and
produced the only shift in the relative positions of
the several savings categories. War savings bonds
at the end of 1943 were second only to life insurance
companies (policy reserves) in the magnitude of th e
savings which they represented.
Life Insurance
Life insurance policy reserves, which constituted
the largest savings component, showed the second
largest dollar gain, $3,690,000,000. This was an
increase of 13.7 percent. To some extent, growth in
this line has probably felt a retarding factor from the
channeling of a large volume of new life policy sales
to Government life insurance. According to the
Institute of Life Insurance Presidents the pattern of
sales shows definite trends attributable to the times.
Significant among these are the increases in sales to
women and minors.
Over the long term since 1920 savings in life insurance companies have shown steady and consistent
growth. In these 23 years they have risen from
$5,814,000,000 to $30,567,000,000, mounting from
29.3 percent to 35.6 percent of the total.
Com mercial Banks
Insured commercial banks showed the third largest
dollar gain in savings during 1942 and 1943. HowFederal Home Loan Bank Review
ever, the breakdown for the latter year shown in the
following table reveals an acceleration in the growth
of their time deposits over the rate estimated for
1942. During the single year 1943 these banks
indicated the greatest dollar increase among private
institutions. This would seem to bear out a growing
preference on the part of the saving public to accept
a low rate on their funds in return for a high degree of
liquidity. Also this trend reflects familiarity with
these institutions and the means by which they
operate. I t is interesting to note that over the long
term, that is, since 1920, time deposits in insured commercial banks have shown more fluctuation than any
other type of savings included in the selected group
under consideration. From $6,532,000,000 in 1920,
deposits evidenced by passbooks rose to $15,304,000,000 in 1928, then receded to $8,729,000,000 in
1933. Since that time the amount of such savings
has increased each year. The total of $16,572,000,000 reported in 1943 surpassed the pre-depression
high.
Mutual Savings Banks
Mutual savings banks, concentrated largely in the
northeastern states, had the fourth largest dollar
gain during the war years of 1942 and 1943, the net
addition of $1,217,000,000 to savings with these institutions raising their total to $11,707,000,000.
While increases in income payments to individuals
were general throughout the country, it is significant
that in 12 of the 17 states in which mutual savings
banks are to be found the rate of gain in income payments was lower than the 50-percent rise reported for
the United States as a whole.
As a group, mutuals have shown a slow but relatively steady growth in savings over the years since
1920, accounts having increased from $4,806,000,000
to their present level. Their somewhat slower rate
of growth, however, is reflected in the declining
proportion of savings of this type which dropped from
Table 2.—Private long-term savings in 1942
and 1943
[Dollar amounts are shown in millions]
Type of savings
Dec. 31,
1942
Dec. 31,
1943
Change
Dollars
Savings and loan associations
Life insurance companies
Mutual savings banks
Insured commercial banks. _.
Postal savings
%H% postal savings bonds. _ _
U. S. savings bonds.._
Total
1
Not comparable.
January 194S
$4,910
29,043
10, 621
13,820
1,417
84
10, 526
$5, 464
30, 567
11,707
16, 572
1,837
83
19, 574
1,524
1,086
2,752
420
-1
9,048
70,421
85,804
15,383
Percent
+11.3
+5.2
+10.2
+19.9
+29.6
-1.2
+86.0
+21.
PERCENT CHANGE OF PRIVATE INVESTMENT
IN SAVINGS AND LOAN ASSOCIATIONS
BY CLASS OF ASSOCIATION-CALENDAR YEAR 1943
PERCENT INCREASE
ALL MEMBERS
FEDERALS
INSURED-STATE
NONINSURED-STATE
NONMEMBERS
24.2 percent of the total in 1920 to 13.7 percentin
1943.
Savings and Loan Associations
Compared with the types of savings discussed thus
far, savings and loan associations showed a more
moderate dollar gain in private investments during
the first two years of war. Standing fifth in dollar
volume of savings growth, $779,000,000, these institutions reported an aggregate increase of 16.6 percent
above 1941 figures, raising total private investments
to $5,464,000,000. Although well above the 1920
figure of $1,741,000,000 and 39 percent higher than
the $3,926,000,000 low of 1936, investments in savings and loan associations were still short of the
1930 pre-depression peak of $6,296,000,000.
The breakdown of changes in selected forms of
savings during each separate war year shows 'a
gathering momentum in the growth of private investments in savings and loan associations. During
1943, expansion amounted to $554,000,000, almost
two and one-half times the $225,000,000 gain indicated for 1942. Taken together, the combined rise
for the two years was greater than the total growth
reported for savings in these institutions from 1936
through 1941.
Trends for insured associations in 1944 showed a
continuation in the upward movement of private
investments as this balance sheet item grew 10
percent—almost $349,000,000 in the first six months
as compared with a rise of $288,000,000 in the
corresponding period of 1943. If the prevailing
upward movement of these investments holds, savings in savings and loan associations stand a good
chance to equal or even exceed their pre-depression
109
The role of savings now is clearly that of assisting
in financing the nation's war effort and of acting as a
brake upon inflation. After the war it may provide
a stimulus for reconversion and a buffer against
deflation. However, its careful handling will be
necessary to assure that in avoiding deflation we do
not run headlong to the other extreme.
Construction Estimates for 1945
•
peak of more than six and a quarter billion dollars
by the end of the war.
Conclusion
What are the lessons that may be derived from
wartime changes in the several selected forms of savings? Perhaps first is the growing emphasis in the
public mind upon liquidity and a corresponding
diminution in the emphasis on earnings—interest
and dividends. Earnings, although still a drawing
card, are now viewed in clearer perspective than they
were 20 or 25 years ago. Liquidity means availability which in itself is a prime indication of safety
to savers today, many of whom are uncertain as to
the post-war tenure of their jobs.
Second, there is the example of the force of systematized thrift. The remarkable expansion in the
redemption value of bonds held by the individual
saver, although in large part due to intensive selling
during drives, could hardly have achieved its present
standing without the steady flow of investments
bought through payroll deductions. Perhaps many
private institutions will be interested in developing
techniques introduced by the Treasury in financing
the war through savings.
The accelerated rate of saving during the war was
due to two principal factors: (1) the record increase in
income payments to individuals; and, (2) the brake
on expenditures effected by curtailed civilian production, price control and rationing. With the end of the
war, income payments are expected to drop as the
process of reconversion gets under way. At that
time the retention or abandonment of price and
other types of controls may also materially affect
economic trends.
110
P R O J E C T I O N S of construction activity have
always been "iffy" questions, and those for 1945
are even more so-—the principal qualification this
time being whether or not the war in Europe will be
ended during the 12 months now beginning. Last
month, the War Production Board made public its
estimate that construction volume in 1945 may total
$4,000,000,000 if Germany is defeated during the
coming spring. This would be about 4 percent
above the rate reported last year. On the other
hand, if victory in Europe is not achieved in 1945,
WPB estimates that a drop of about 18 percent will
occur, and that construction expenditures will
amount to about $3,150,000,000.
Assuming that Germany would be defeated next
spring, the breakdown of construction is placed as
follows: Public expenditures, $1,860,000,000; private,
$2,090,000,000, giving a total of $3,950,000,000.
Distributed by purpose, these figures include $450,000,000 for military construction, $725,000,000 for
industrial building, $775,000,000 for housing, and
$2,000,000,000 for remaining types of construction.
Longer-Term Assumptions
The ups and downs of an anxious, though confident, public opinion over the course of the past few
years has leavened our national thinking and shown
in its true light the folly of perennial optimism.
Today people are more inclined to put their tongues
in their cheeks when anyone attempts to guess how
much of the "duration" is left. Thus W P B has
developed a considerably lower forecast based upon
the assumption that the war in Europe may necessitate another year of attrition.
If Germany remains in the fight through 1945 the
lower estimate of $3,150,000,000 is expected to consist of $1,680,000,000 of public expenditures and
$1,470,000,000 of private investment. Distributed
by purpose, the total would consist of $480,000,000
for military construction, $595,000,000 for industrial
building, $525,000,000 for housing, and $1,550,000,000 for all other types.
Federal Home Loan Bank Review
* * * WORTH REPEATING * * *
SOUND CREDIT: " M o r t g a g e credit,
extended carefully b u t liberally a n d
widely available, is vital to t h e further
development of home ownership in
this country on a scale to meet t h e
national need. W i t h o u t t h e safeguards, which experience has demonstrated are necessary, however, such
credit can be destructive. Shortsighted granting of mortgage credit
invariably produces u n h a p p y reactions
such as we h a v e h a d all too frequently
in t h e past. Credit carelessly and, in
too m a n y instances, recklessly granted
in t h e United States in t h e period from
1922-28 caused t h e greatest mortgage
losses on record. N o t h i n g is more
i m p o r t a n t to t h e future of home
ownership and t h e progressive developm e n t of b e t t e r housing in our country
t h a n long-term mortgage credit a t
fair interest rates, with moderate loan
charges, a n d provision for periodical
reduction of t h e d e b t a t frequent
intervals. I t must, h o w e v e r , b e
employed with c a u t i o n and g o o d
judgment."
John H. Fahey, Savings Bank
Journal, December 1944.
CHALLENGE: "Those who are concerned with the post-war prospects for
a particular enterprise, an industry or
a community m u s t keep two facts in
mind:
" O u r country is still growing.
About 6,000,000 more people were
employed, or actively seeking employm e n t in 1940 t h a n in '29.
"While t h e war has temporarily distorted this trend, t h e p e r m a n e n t effect
will be a continuation of t h e growth in
working population.
" P r o d u c t i v i t y of workers is increasing. E v e n with shorter hours in 1941,
the o u t p u t per employed person was
roughly 25 percent greater t h a n in '29.
Looking beyond t h e wartime distortions, there is every reason to expect
further increases in efficiency.
" T h i s growth in m a n p o w e r and productivity was obscured in t h e decade
before the war by t h e worst depression
this country ever experienced. By
1940 more goods and services were
produced t h a n in any previous year.
Yet production h a d not k e p t pace with
expanding capacity of t h e labor force
to produce.
January 1945
"If the growth trend continues,
peacetime capacity o u t p u t in 1947
would be 40 to 50 percent above actual
production in 1940—and 70 to 80 percent above t h e average for the five
years, 1935 through 1939.
" T h i s capacity stands as a challenge
to American enterprise.
"Effective utilization of t h e post-war
labor supply calls for extraordinary
imagination and ingenuity in developing new products and new m a r k e t s for
old ones.
"Moreover, it emphasizes the need
for a more balanced expansion of nonmanufacturing business and for more
effective selling of goods and services . . ."
S. Morris Livingston, Nation's
Business, December 1944.
G. I. INTERPRETATION: " I n regard to
withholding service-connected disability pension as an offset to loss caused
by default on a guaranteed loan, t h e
law does require offset or recovery
from pension or other p a y m e n t s if t h e
loss is due to fraud on the p a r t of the
veteran. If, however, the veteran is
without fault, deductions are not required if they would defeat the purpose
of such p a y m e n t s or would be against
equity or good conscience. E v e n in
cases of fraud there will be no withholding of pension if recovery m a y be
m a d e in any other way.
" T h u s it will be clear t h a t no veteran
need fear hardship t h r o u g h deductions from his pension, if he undertakes a loan obligation in good faith
a n d any default thereon is not caused
by fraud or similar fault on his p a r t . "
Brig. Gen. Frank T. Hines,
Administrator of Veterans
Affairs, American
Banker,
December 14, 1944.
DEBT A N D TAXES: " D e b t is always
a burden, and taxes to pay t h e interest
on t h e debt will h u r t just as m u c h as
any other taxes. We should do everything we can to keep the d e b t from
rising more rapidly t h a n is necessary
to achieve victory.
" T h a t ' s why each of us has about
20 percent t a k e n out of his pay envelope every pay day for taxes. If
d e b t were no burden, this would not
be necessary. B u t we m u s t look a t the
pros as well as t h e cons on t h e balance
sheet of debt. T h e American people
own the d e b t as well as owe it, and
they have, directly or indirectly, invested practically all of their wartime
savings in it. These savings are going to provide m a n y a job and smooth
m a n y a rough place in the road for
millions of American citizens after t h e
war."
Daniel W. Bell, Under Secretary of the Treasury, in radio
broadcast, December 13, 1944.
DISCIPLINE: "Only in America will
conditions be favorable for maintaining a wide area of free enterprise, with
planning confined to a few key points.
We h a v e t h e time, a n d t h e margin of
national resources, to continue our
institutions with a m i n i m u m of change.
. . . Provided t h e American people
unite in a program to level out t h e
business cycle, underwrite a high level
of employment, a n d bring monopolies
under control; which means, a t bottom,
provided t h e American people learn t o
discipline themselves."
Stuart Chase, Democracy Under
Pressure, Twentieth Century
Fund, January 1945.
REALISTIC FINANCE: " T h e s t a y - a t homes—you a n d I—own t h e shares in
t h a t d e b t [the national debt]. We
will get t h e interest and be paid the
principal on t h a t d e b t when we w a n t it.
T h e 11 millions : —those who survive—
will have to help shoulder t h a t mount a i n of d e b t of which we stay-at-homes
are t h e principal owners. They m a y
be quite willing to do so if they have
a d e q u a t e jobs and economic security.
You and I should have imagination
enough to realize w h a t would happen
if we on t h e homefront, who have profited so m u c h and risked so little—
while they have risked so m u c h and
profited so little—if those of us who
have t h e economic power or t h e political power in this country accept the
defeatism still expressed by some to t h e
effect t h a t the country cannot afford
t h e goal of full employment because
the dictates of so-called 'sound finance'
s t a n d in t h e way. I cannot imagine
more unsound finance or a plainer
proof t h a t we do not a t heart believe
in our system or in our democracy."
Marriner S. Eccles, before National Industrial Conference
Board, New York, November
16, 1944.
111
TIPS AND CUES FROM BEST SELLERS
•
I M P R E S S E D by the unusual records of many
savings and loan associations in the promotion
of war bond sales, the Office of the Governor of the
Federal Home Loan Bank System inquired last
month as to the organization and promotional programs of a number of the top-selling members.
Replies were interesting and varied, and from them
a number of highly successful approaches were
found. Almost all associations reported intensive
organization for over-the-counter sales which,
coupled with vigorous advertising campaigns through
almost all media for broadening contacts with prospective purchasers, kept the names of these institutions consistently on the Honor Roll list for war
bond sales.
If space permitted, every reply should be published. Since this is not practical, a sampling is
presented as representing most of the selling methods
reported.
Almost all associations placed the heaviest emphasis upon personal contact and many of them,
acting frequently in conjunction with local committees, clubs and business groups, shared in con-
ducting bond rallies and special mass meetings.
Booths were established by others at convenient
points to facilitate contact with the buying public
and direct mail advertising proved well worthwhile.
Special window displays served as sales catchers as
well as eye catchers.
How It Was Done
"We have used much advertising . . . letters,
solicitation, and calls over the phone bring the larger
investor. Newspaper advertising is best for the
small investor.
"We stress a bond for a Christmas gift to hasten
'Peace on Earth'.
"Our success can be attributed to three factors:
the assistance of our directors, newspaper advertising,
and letters to a selected list, along with aggressive
personal contacts.
"Practically every person on our list was contacted
personally or by phone during the first three weeks
of the Sixth Loan.
"There are more people aware of the existence of
our association than ever before by reason of our
participating in war financing . . . we will not spare
the horses in applying the time of our officers, directors, employees, or money in programs to increase
our volume of sales . . . "
First Federal Savings and Loan Association of St. Paul, St. Paul, Minnesota.
Miami Beach Federal Savings and LOOM Association
112
"We have set a quota for the 6th loan, 5 0 % above
what we sold in the 5th . . .
"The outside of our building has a different sign
for each Drive . . .
"Our outside booth is manned day and night during Drives . . .
"Aside from the more standarized methods, we
believe the biggest single plan of selling for an association is for it to aid in heating-up the active sales
committee of the city and to that end we have assigned one of our executives. I n this way we have
helped to interest some 70 civic groups, giving our
office space to assembly purposes. We have taken
care of most of the organizational and selling expense . . .
" . . . the fact that we know our bonds contributes
immeasurably to their sale. All questions regarding
issuance, description, interest rate, types, etc., form
everyday talk with the staff of our organization . . .
Federal Home Loan Bank Review
"Between Drives we see to it that anyone desiring
information regarding any issue can obtain it on a
moment's notice from us . . .
"When the Drive is over, we do not close up the
War Bond Department but actually spend more time
and energy than during the Drive, because we feel
that this is the time to continue educating the public
and prepare them for future Drives . . .
"The whole thing boils down so far as our effort is
concerned, to a matter of personalization of the Association in the work. The results have been most
gratifying . . . "
Miami Beach, Federal Savings and Loan
Association, Miami Beach, Florida.
"All of our advertising, 100%, is War Bonds . . .
our employees are devoting much of their own time
to sales . . . the writer attempts to participate
in every local bond activity.
"The issuance of bonds is given first consideration
at our office . . .
"We cooperate with theatres and let no opportunity slip by where bond sales are possible."
Albert Lea Building and Loan Association, Albert Lea, Minnesota.
"We are stuffing all our mail with pamphlets . . .
and suggesting that they put their savings into war
bonds. We organized a college 'Bond Breakfast'
with good results . . . We have encouraged policemen and firemen to sell bonds. They reach only
E bond purchasers, which is most important . . ."
Jefferson Federal Savings and Loan
Association, Birmingham, Alabama.
"Our booth, the 'Bond Pier' operated downtown
has produced many more sales than our office itself.
The strength of this sales effort has been the spirit of
competition between the civic, fraternal and business
organizations whose own campaigns we supported
at the 'Bond Pier'; and the same spirit between the
various groups in the organization . . . "
Home Federal Savings and Loan Association, Cincinnati, Ohio.
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.
January 194S
"We have a large window in our office on one of
the most prominent streets . . . we have a huge
billboard there. On this board we flash a message
which can be seen by pedestrians and riders on street
cars . . .
"During one Drive we kept our office open at night
for the sale of bonds only . . . We arranged with
a radio station to feature war bond purchases every
few minutes during a variety program and the name
of each purchaser would be broadcast. They accepted orders from the studio audience and over the
telephone . . . One of our office assistants is
stationed in the studio to take care of the orders . . .
"We arranged with a large movie house to flash
war bond announcements on their screen at intervals,
with bonds and stamps available in the lobby. We
have secured some free space for billboard signs.
"We contacted many acquaintances to urge them
to make a greater investment in War Bonds. The
response was gratifying."
Wyman Park Federal Savings and Loan
Association, Baltimore, Maryland.
" . . . The little we are able to do for our Government is just a small payment on a great debt.
" I was able to group the local Czech associations for this work and together we have dene a
nice little job, catering mostly to residents of Czechoslovak extraction . . . This class of customers
knows not only the seriousness of the conflict, but
also the necessity of a strong third front: 'the
dollar front' . . . "
Bohemian-American Building
ation, Baltimore, Maryland.
Associ-
113
Election and Appointment of Directors and Designation of Chairmen and
vice Cha irmen of the Fed eral 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, 1945; (2) the appointment of
public interest directors to serve 4-year terms beginning January 1, 1945; and (3) the designation of
chairmen and vice chairmen of the various Federal
Home Loan Banks to serve during the calendar year
1945 or until such time as their successors are designated and qualified.
#
*
D I S T R I C T NO. 4—WINSTON-SALEM
*
D I S T R I C T N O . 1—BOSTON
Chairman: Bernard J. R o t h well, Bay S t a t e Milling C o m p a n y ,
Boston, Massachusetts (re-appointed).
Vice-Chair man: E d w a r d H . Weeks, Old Colony Co-operative
Bank, Providence, R h o d e Island (re-appointed).
Public Interest Director: Joseph H . Soliday, Franklin Savings
Bank, Boston, Massachusetts (re-appointed).
Class A Director: R a y m o n d P . Harold, Worcester Federal
• Savings a n d Loan Association, Worcester, Massachusetts
(re-elected).
Class B Director: George B . Lord, P o r t s m o u t h Savings Bank,
P o r t s m o u t h , New H a m p s h i r e (re-elected).
Class C Director: Walter P . Schwabe, Enfield Federal Savings
a n d Loan Association, Thompsonville, Connecticut (reelected).
Director-at-Large:
Milton A. B a r r e t t , Fidelity Co-operative
Bank, Fitchburg, Massachusetts (re-elected).
DISTRICT NO. 2—NEW
YORK
Chairman: George M a c D o n a l d , M a n u f a c t u r e r s ' T r u s t Comp a n y , N e w York, New York (re-appointed).
Vice Chairman: Francis V. D . Lloyd, C e n t r a l Bergen Savings
a n d Loan Association, Ridgefield P a r k , New Jersey
(re-appointed).
Class A Director: C a d m a n H . Frederick, Suffolk C o u n t y
F e d e r a l Savings a n d Loan Association, Babylon, New
York.
Class B Director: Roy H . Bassett, C a n t o n Savings a n d Loan
Association, Canton, New York (re-elected).
Class C Director: Joseph A. O'Brien, Medford Lakes Savings
a n d Loan Association, Medford Lakes, New Jersey
(re-elected).
Director-at-Large: J. Alston Adams, Westfield Federal Savings
a n d Loan Association, Westfield, N e w Jersey (re-elected).
DISTRICT NO.
3—PITTSBURGH
Chairman: E r n e s t T . Trigg, N a t i o n a l P a i n t , Varnish and
Lacquer Association, Philadelphia, Pennsylvania (reappointed) .
Vice Chairman: Charles S. T i p p e t t s , T h e Mercersburg Academy, Mercersburg, Pennsylvania (re-appointed).
.114
Public Interest Director: Walter B . Gibbons, A t t o r n e y , P h i l adelphia, Pennsylvania (re-appointed).
Class A Director: F r e d C. Klussmann, Revenue Savings a n d
Loan Association, Millvale, Pennsylvania (re-elected).
Class B Director: William R e i n h a r d t , T h e P r o v i d e n t Building
and Loan Association, Philadelphia, Pennsylvania (reelected) .
Class C Director: J a m e s W. T u r t l e , Stephen Girard Savings,
Loan a n d Building Association, Philadelphia, P e n n s y l vania (re-elected).
Director-at-Large: Alexander Salvatori, Peoples Federal Savings and Loan Association, Wheeling, West Virginia.
Chairman: Horace S. H a w o r t h , Roberson, H a w o r t h , a n d
Reese (law firm), High Point, N o r t h Carolina (reappointed) .
Vice Chairman: E d w a r d C. Baltz, P e r p e t u a l Building Association, Washington, D . C. (re-appointed).
Public Interest Director: J a m e s G. Luttrell, McCormick a n d
Company, Baltimore, M a r y l a n d (re-appointed).
Class A Director: E d w a r d C. Baltz.
Class B Director: Frederick Willetts, Co-operative Building a n d
Loan Association, Wilmington, N o r t h Carolina.
Class C Director: W. Brown Howell, First Federal Savings a n d
Loan Association, P a n a m a City, Florida (re-elected).
Director-at-Large: F r a n k Muller, Jr., Liberty Federal Savings
and Loan Association, Baltimore, M a r y l a n d (re-elected).
D I S T R I C T NO. 5 — C I N C I N N A T I
Chairman: H a r r y S. Kissell, Springfield, O'hio (re-appointed).
Vice Chairman: W. Megrue Brock, T h e Gem City Building
and Loan Association, D a y t o n , Ohio (re-appointed).
Class A Director: Allen C. Knowles, South Side Federal Savings and Loan Association, Cleveland, Ohio.
Class B Director: Charles J. Haase, H o m e Federal Savings
and Loan Association, Memphis, Tennessee (re-elected).
Class C Director: B . A. Stevens, D y e r C o u n t y Federal Savings and Loan Association, Dyersburg, Tennessee (reelected) .
Director-at-Large:
W. B. Furgerson, P o r t l a n d Federal Savings and Loan Association, Louisville, K e n t u c k y (reelected) .
D I S T R I C T NO. 6—INDIANAPOLIS
Chairman: H e r m a n B. Wells, I n d i a n a University, Bloomington, I n d i a n a (re-appointed).
Vice Chairman:
Fermor S. Cannon, Railroadmen's Federal
Savings a n d Loan Association, Indianapolis, I n d i a n a
(re-appointed).
Public Interest Director: Carleton B. McCulloch, T h e S t a t e
Life Insurance C o m p a n y , Indianapolis, I n d i a n a (re-appointed) .
Class A Director: Walter Gehrke, First Federal Savings a n d
Loan Association, Detroit, Michigan (re-elected).
Class B Director: Donald L. Adair, South Bend F e d e r a l
Savings and Loan Association, South Bend, I n d i a n a .
Federal Home Loan Bank Review
Class C Director: G r a n t H . Longnecker, Peoples Savings Association, Benton Harbor, Michigan (re-elected).
Director--at-Large: Fermor S. Cannon.
D I S T R I C T NO. 7—CHICAGO
Chairman:
Charles E. Broughton, T h e Sheboygan Press,
Sheboygan, Wisconsin (re-appointed).
Vice Chairman: H e n r y G. Zander, Jr., H e n r y G. Zander and
Company (realtors), Chicago, Illinois (re-appointed).
Public Interest Director: H e n r y G. Zander, Jr., (re-appointed).
Class A Director: J o h n B. Reynolds, Chicago Federal Savings and Loan Association, Chicago, Illinois.
Class B Director: Earl S. Larson, First Federal Savings and
Loan Association, Moline, Illinois.
Class C Director: Rilen McConachie, First Federal Savings
a n d Loan Association, Sparta, Illinois (formerly Class B
Director).
Director-at-Large:
E d w a r d J. Czekala, National Savings and
Loan Association, Chicago, Illinois (formerly Class C
Director).
D I S T R I C T NO. 8—DES MOINES
Chairman:
E . J. Russell, M a u r a n , Russell, and Crowell
(architects), St. Louis, Missouri (re-appointed).
Vice Chairman: E . A. P u r d y , Federal Cartridge Corporation,
Minneapolis, Minnesota (re-appointed).
Public Interest Director: J o h n D . Adams, Des Moines C h a m ber of Commerce, Des Moines, Iowa (re-appointed).
Class A Director: Gus V. K e n t o n , F a r m and H o m e Savings
a n d Loan Association, N e v a d a , Missouri.
Class B Director: E . J. Webb, Metropolitan Savings and
Loan Association, Kansas City, Missouri.
Class C Director: Spencer Stearns, Hutchinson Federal Savings a n d Loan Association, Hutchinson, Minnesota.
Director-at-Large:
L. A. Rulien, Grand Forks Building and
Loan Association, G r a n d Forks, N o r t h D a k o t a .
D I S T R I C T NO. 9—LITTLE
ROCK
Chairman: B . H . Woo ten, T h e Republic National Bank,
Dallas, Texas (re-appointed).
Vice Chairman: Wilbur P . Gulley, Pulaski Federal Savings
a n d Loan Association, Little Rock, Arkansas (re-appointed) .
Public Interest Director: Gordon H . Campbell, Aetna Life
Insurance Company, Little Rock, Arkansas (re-appointed) .
Class A Director: J. J. Miranne, Security Building a n d Loan
Association, New Orleans, Louisiana (re-elected).
Class B Director: R. H . McCune, Roswell Building a n d Loan
Association, Roswell, New Mexico (re-elected).
Class C Director: H . T. Leonard, Kosciusko Building a n d
Loan Association, Kosciusko, Mississippi (re-elected).
Director-at-Large: Grover J. Casselberry, First Savings and
Loan Association, El Paso, Texas (re-elected).
D I S T R I C T NO. 10—TOPEKA
Chairman: William M. Jardine, University of Wichita,
Wichita, K a n s a s .
Vice Chairman: A. G. H a r t r o n f t , T h e Lyons Savings and
Loan Association, Lyons, K a n s a s (re-appointed).
Public Interest Director: P a u l F . Good, Good a n d Simons,
Lincoln, N e b r a s k a (re-appointed).
January 194S
Class A Director: J. E. Barry, Jr., Oklahoma City Federal
Savings and Loan Association, Oklahoma City, Oklah o m a (re-elected).
Class B Director: Elwin R. H u n t e r , F o r t Collins Federal
Savings and Loan Association, F o r t Collins, Colorado.
Class C Director: A. G. Hartronft, (re-elected).
Director-at-Large: E . L. Hevelone, T h e S t a t e Savings and
Loan Association, Beatrice, Nebraska.
D I S T R I C T NO. 11—PORTLAND
Chairman: Ben A. Perham, P e r h a m F r u i t Company, Yakima,
Washington (re-appointed).
Vice Chairman: S. S. Selak, Prudential Savings and Loan
Association, Seattle, Washington.
Public Interest Director: C. A. Leaphart, M o n t a n a State
University, Missoula, M o n t a n a (re-appointed).
Class A Director: Guy E . Jaques, Portland Federal Savings
a n d Loan Association, Portland, Oregon.
Class B Director: C. S. Robertson, First Federal Savings and
Loan Association, K l a m a t h Falls, Oregon.
Class C Director: Worth D . Wright, First Federal Savings
and Loan Association, I d a h o Falls, I d a h o .
Director-at-Large:
W. O. McCaw, Aberdeen Federal Savings
and Loan Association, Aberdeen, Washington.
D I S T R I C T N O . 12—LOS A N G E L E S
Chairman: David G. Davis, Raphael Weill and C o m p a n y ,
San Francisco, California (re-appointed).
Vice Chairman: C. A. Carden, Quaker City Federal Savings
and Loan Association, Whittier, California (re-appointed).
Public Interest Director: Archibald B. Young, Pasadena,
California (re-appointed).
Class A Director: T. A. Gregory, Long Beach Federal Savings and Loan Association, Long Beach, California.
Class B Director: C. A. Carden, Whittier, California (reelected) .
Class C Director: Douglas H . Driggs, Western Savings and
Loan Association, Phoenix, Arizona (formerly Directorat-Large) .
Director-at-Large: Lloyd I. Tilton, S a n t a B a r b a r a M u t u a l
Building and Loan Association, S a n t a Barbara, California.
W a r Housing to France
•
R E C E N T L Y , the NHA announced plans to
send up to 5,000 panelized barracks to house
150,000 French dock repair workers. This action,
taken at the request of the Foreign Economic Administration, will be handled through the F P H A and
the order will be filled by the shipment of 500 temporary war housing units no longer needed in this
country, together with 4,500 new panelized buildings. In announcing the move, NHA stressed that
no existing war housing units needed in the United
States would be marked for export; and re-use of unneeded war housing will save approximately 4,000,000 board feet of lumber.
115
RESIDENTIAL BUILDING ACTIVITY AND SELECTED INFLUENCING FACTORS
/935-/939-/00
BY MONTHS
BY YEARS
220
1
I I
1
1
1
1
ADJUSTED FOR SEASONAL VARIATION
200
/PRIVATE
1 B 2 FAMILY
180
CONSTRUCTSV ^
DWELL. UNITS
(FED. HOME LOAN BANK ADM.)
(U. S. DEPT OF LABOR RECORDS)
160
•
\
140
120
f
100
'.(FED. HOME LOAN BANK ADM
V \t
80
60
./1
) \ .%. r / /
^SVGS. 8 LA/. LEND.
tg
v..«
>
•*^
. - ^ s
KiniL
IVUiVr«niOT
40
|
sNONFARM
Fi 1RECL0SURES
(FED. HOME
20
O A M
•
'
. .._., BU/LO'W/5
„
1 fTtfVID'
ir'tu. s . UtKI. ui- u«kbUKJ
100
xt|
80
•^•«
*.
^
1
1 1 1 !
1
1
1 1 1 1 \ i _1_L_ i i JL_L_
1
MATFRIAI
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PQir.FQ^
^
-«£
RENTS^
>^BLi //0/f l/G
••*. , t -
I
r
60
300
FORECLOSURES
RANK A H M )
1 1 1 1 1 1 1.1
0
140
120
V
J
+.y
v
/
>
/" 1
Nr
j
y
\
.•*
1
A
^PRIVATE
CONSTRUCTION
/ Y '
1 a 2 FAMILY DWELL. UNITS ^
.*1
/ *4
* ATFI ?/A/
PR/r ?FS
(U. S. DEPT. OF LABOR)
!
\
i
i
1
i
1
MAI 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 V\ 1 1
V
A
V
V
ADJUSTED FOR SEASONAL VARIATION
280
260
/AiDUS' TRIAi -
240
/A/0
220
;STFf/AL
PRO/ X / C T / O N - v . ,
(FED RESE RVE B()ARD)
y
y
/
180
/
160
/
L-^
>
y
*~'~
""\
L
J
140
,*- y
*?.-
1
*
-INCOME
MFC. E/V IPLO YMEl
PAYhi f E N T 5
n
/
120
/IVC/L/IWC
r M i mciv i o
(U. S. DEPT. OF COMMERCE
/
100
^
V*
^v*!••. ^
.•
^ ^
V*
C
y ./
' JP
FG. EMPLOYMENT
A
80
60
v».
-
/
200
PRODUCTIONS^ " " " V
/
1
A
iQiriY'-zi
^ v ^>
'"••io
1 1
S
*ia
'i/t
'7K
'•xc
'•X-7
V.LU0NS F.H.L.B. ADVANCES OUTSTANDING
$25Cr
'"ZQ
»/»r»
'1Q
•/io
*Al
U
LA
A
^
I 1 I i
. 94 2
1 1 1 \
1I
1 1 i i
19 4 3
U-
i i
1 1 1 \A
194 4
REPURCHASE RATIO
M|uggM0RT6A6E RECORDINGS-ALL LENDERS
ALL INSUF ED ASSNS.
•""••
*•••»
19 4 4
1
1942
hvV V.
100
400|
/9 44-K
*.x
•^.^^"^*
100
300
194
^
i- .-
4
'*"" *"**X.
^
/ 'yj
43
80
60
200
100
JAN. FEB? MAR. APR. MAY. J UN JUL. AUG. SEP. OCT. NOV. DEC.
116
k
^
V
401
I94S
50
L
AU
I
0 JAN. FEB. MAR. APR. MAY JUN. JUL. AUG. SEP OCT. NOV. DEC.
IL KA
f\ft
nrv\N^
»
} 1
V
\ f >»
20
0
M I M I I . I M
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1
..IMIMIM
Federal Home Loan Bank Review
« « «
MONTHLY
SURVEY
» » »
HIGHLIGHTS
/. The SixthWar Loan went over the top by more than 50 percent.
Total subscriptions amounted to
$21,621,000,000.
II. Total building activity increased from 7,573 dwelling units in October to 7,950 in November.
However, it stood considerably (59
percent) below 1943 levels.
A. Gains in publicly financed construction accounted for the November 1944 increase.
B. Privately financed building declined by 550 units in November, amounting to 6,300 units.
ill. A 7-percent drop, which was less than the seasonal expectation, was shown from October to November in nonfarm mortgage recordings of $20,000
or less.
A. The November total of $394,000,000
was, however, 11 percent greater than that of a year ago.
B. All types of mortgagees shared in the November 1944 decline.
IV. New mortgage lending activity declined less than seasonally in November when a 12-percenf drop brought the aggregate to
$118,000,000.
A. Loans in each purpose category dropped, with declines ranging from 7 to 24 percent.
B. November 1944 loans were 15 percent above those made during the same month a year previously.
V. FHLB4advances outstanding increased almost $20,000,000
over October and in November amounted to $100,378,000,
the
lowest figure for any comparable month since 1935.
A. Advances made during the month were the highest ever reported in November.
B. From January 1, through November 1944, the total resources of all insured associations rose from $4,183,000,000
to $4,861,000,000.
The average monthly gain which this represents—$60,000,000—is
the greatest since the establishment of
theFSLICin
1934.
BUSINESS CONDITIONS-Production
of critical items ncreases
With the course of events on the western battle
fronts destroying all hallucinations of an early or
easy victory, talk of rapidly forthcoming reconversion
to civilian goods has receded and the industrial front
has taken a new grip on production step-ups. Chairman Krug of the War Production Board recently
announced that production of several types of war
materiel increased during December. Manpower
shortages continue to be a deterring factor but the
situation has already shown some improvement since
the tightening of controls in the recently issued
"work or fight" order. The outlook for the coming
year indicates more severe regulations to assure that
labor will be sufficient to meet production demands
during 1945.
Total industrial production, as measured by the
Federal Keserve Board's seasonally adjusted index,
has not yet shown the effects of the intensification of
the production program. I n early December this
index still stood at 232 percent of the 1935-1939
average, the same level reported since October which
is considerably below the 247 recorded in October
and November 1943.
Wholesale commodity prices, during the week
ended December 16, advanced to the highest level
since the war began. On that date, the composite
January 1945
index of the*Bureau of Labor Statistics (1935-1939=
100, converted from 1926 base) stood at 129.6. This
compares with 129.2 at the same time the previous
month and 127.7 in mid-December 1943.
Department store sales during the week before
Christmas were 48 percent greater than those of the
corresponding week in 1943, having increased during
the week from 274 to 367 percent of the 1935-1939
average (Federal Reserve Board's seasonally adjusted index). This was one of the largest weekly
business volumes to be recorded in any week of the
year, bringing the annual gain through December 23
to 11 percent over the same 1943 interval.
Employment during November continued the
downward trend evident since last July, having
decreased during that period from 54,000,000 to
51,530,000. This was, however, only slightly below
the 51,680,000 persons who were employed in November 1943.
[1935-1939 = 100]
Type of index
Home construction (private) 1
Rental index (BLS)
Building material prices.. ___ ._ ___
Savings and loan lending *
Industrial production i
Manufacturing employment 1
Income payments 1
r
1
Nov.
1944
Oct.
1944
46.3
42.8
108.2
108.2
130.0
129.9
192.6
186.6
232. 0 * 232. 0
154.9 ' 154.2
237.9 '235.5
Percent
change
Nov.
1943
Percent
change
+8.2
0.0
+0.1
+3.2
0.0
+0.5
+1.0
70.8
108.0
126.3
167.7
247.0
172.7
220.8
-34.6
+0.2
+2.9
+14.8
—6.1
-10.3
+7.7
Revised.
Adjusted for normal seasonal variation.
117
Heavy bond sales coupled with an unprecedented
volume of Christmas buying reflected the increase
in money in circulation during November. The
U. S. Treasury reports that during that month it
rose $630,859,490 and for the first time went over
the $25 billion mark.
Government war expenditures during November
amounted to $7,095,000,000, a decrease of $352,000,000 from the October outlay and the lowest for
any month of 1944. Even so, this country was
spending $272,900,000 as a daily average during
November.
BUILDING ACTIVITY-Total
construction increases
Residential construction activity in urban areas
continued at a low level during November. According to data compiled by the Bureau of Labor Statistics, private construction provided 6,300 family
dwelling units during the month, about 550 less than
in October. Publicly financed construction accounted for more than 1,600 units, a gain of 950
from the preceding month. As the result of the
increase in public construction, which more than
offset the drop in private building, the total number
of units provided increased from 7,573 in October
to 7,950 in November. During November 1943,
19,200 dwelling units were provided, of which 9,400
were privately financed and 9,800 were publicly
financed.
During the January-November period of this
year permits were issued for a total of 102,900 dwelling units compared with 196,100 units during the
same 1943 period, a decline of 48 percent. Threefourths of this decrease is attributable to the sharp
decline in publicly financed war housing which
dropped from a total of 84,900 units during the first
11 months of 1943 to 15,300 units during the same
period of 1944. By far the greatest portion of the
decline in private residential construction, which in
this comparison dropped from 111,300 to 87,600
units, occurred in the 2-family and 3- and morefamily categories. [TABLES 1 and 2.]
BUILDING COSTS-Froctionol
monthly gains noted
During November increases in the cost of both materials and labor boosted the index of the cost of constructing the standard 6-room frame house from
133.4 to 133.9 percent of the 1935-1939 average.
This half-point rise in the total cost index, which was
greater than that occurring during the preceding
four months, is attributable largely to the higher
cost of labor. That index, after varying only fractionally for a number of months, during November
rose almost 1 full point to 138.4. The cost of
materials continued gradually upward, pushing t h a t
index to 131.6.
During the last 12 months, the cost of materials
and labor required in the construction of the standard house has risen 4 percent and 2 percent, respectively, resulting in an increase of 3 percent in the
total cost index.
Construction costs for the standard house
[Average month of 1935-1939=100]
Nov.
1944
131. 6
138.4
133. 9
r
r
r
Oct.
1944
Percent
change
Nov.
1943
Percent
change
131. 4
137. 5
+ 0. 2
+ 0. 7
126. 8
135. 6
+ 3. 8
+ 2. 1
133. 4
+ 0.4
129. 8
+ 3. 2
Revised.
Of the 20 cities reporting building costs in November, 16 evidenced gains, 1 showed a decline while
those in the remaining three cities indicated no
change from the previous reporting period.
During November, the Department of Labor's
composite index of wholesale prices of building
materials continued its gradual upward movement,
rising fractionally from 129.9 to 130.0 (1935-1939=
100). Brick and tile, cement, and paint and paint
materials showed small gains during the month
118
Federal Home Loan Bank Review
while all other components remained unchanged.
An increase of 3 percent in the composite index during
the last 12 months resulted primarily from gains of
5 percent in the price of brick and tile, 4 percent in
the price of both cement and lumber, and a 3-percent
rise in the cost of paint and paint materials.
M O R T G A G E LENDING—Dollar volume
down in November
New mortgage lending activity of all operating
savings and loan associations declined from $135,000,000 in October to $118,000,000 in November.
Inasmuch as this 12-percent decline was less than
the usual seasonal decrease, the adjusted index of
new mortgage lending moved upward to 192.6 (19351939=100), the highest point reached in any month
of the last 12 years. I n actual dollar volume, however, loans in each loan-purpose category dropped
during November with declines ranging from 7 percent to 24 percent.
The volume of new loans made during the month
was 15 percent greater than the $103,000,000 loaned
by these institutions in November 1943. While
TOTAL LOANS MADE BY ALL SAVINGS AND LOAN ASSOCIATIONS
UNITED STATES-BY TYPE OF ASSOCIATION
BY
[Dollar amounts are shown in thousands]
Nov.
1944
Purpose
MONTHS
Total
Oct.
1944
Percent
change
Nov.
1943
Percent
change
$4, 635 $6, 095 - 2 4 . 0 $6, 928 - 3 3 . 1
90, 182 101, 461 - 1 1 . 1 73, 053 + 2 3 . 4
13, 265 15, 253 - 1 3 . 0 12, 767 + 3 . 9
-5.0
2,699
- 7 . 1 2,638
2,507
+ 1.5
7,670
9,720 - 1 9 . 9
7,785
Construction
H o m e purchase
Refinancing
Reconditioning
Other purposes
[TABLES 3, 4 and 5.]
D?' L DOL°L«S
New mortgage loans distributed by purpose
118, 374 135, 228 - 1 2 . 5 103, 056 + 14.9
lending volumes were generally higher throughout
the country, percentage increases shown by the
various Bank Districts varied considerably. Ten of
the 12 Federal Home Loan Bank Districts registered
increases in new mortgage lending over November
1943, with gains ranging from 1 percent in the
Portland District to 48 percent in the New York
region. The Los Angeles and Boston Bank Districts
were the only areas to register declines, 5 percent
and 13 percent, respectively.
During the first 11 months of 1944, the savings
and loan industry made approximately $1,343,000,000 of new mortgage loans, 24 percent more than in
the same period of 1943 and only 3 percent less than
in the entire year 1941. [TABLES 6 and 7.J
MORTGAGE RECORDINGS-Less than
seasonal drop shown
Nonfarm mortgage financing activity declined
generally throughout the country during November.
I t is estimated that nonfarm mortgages of $20,000
or less recorded during the month totaled $394,000,000 which was $29,000,000, or 7 percent, less
Mortgage recordings by type of mortgagee
[Dollar amounts are shown in thousands]
UNITED STATES-BY PURPOSE OF LOAN
BY MONTHS
T y p e of lender
TO TAL LO 1/V5
\y r-
•^v.-
*w
J
v
WHOME
PURCH ASE
i
uY
JK A*-*\
V
»
A
v£fi NSTRUC TION
J ^ff£F/AM NCING
T - | - HI i^rr i " f r
JUN
SEP
1942
January 1945
DEC
1
MAR.
iL
2s££
1 '
JUN.
JUN
1943
1944
SEP
PerPerPercent
Cumulacent
cent
change
tive refrom of N o v . cordings oftotal
1944 (11 months) recordOct.
ings
1944 a m o u n t
DEC.
Savings a n d loan associations. _
Insurance companies
Banks, t r u s t c o m p a n i e s .
M u t u a l savings banks
Individuals
Others
Total
-9.3
-2. 1
-5.8
-8.3
-5.7
-5.7
-6. 9
34. 1 $1,443,110
5.2
236, 991
812, 955
18. 2
151, 392
3. 9
26. 3 1, 038, 486
567, 468
12. 3
34. 0
5.6
19. 1
3. 6
24. 4
13.3
100.0 4, 250, 402 100. 0
119
than in October but $40,000,000, or 11 percent,
more than in November 1943. Percentagewise, the
October to November drop in nonfarm recordings
was less than had been seasonally expected. Each
type of mortgagee shared in the reduction in financing from October.
During the first 11 months of 1944, more than
$4,250,000,000 of nonfarm mortgages were recorded,
20 percent more than in the same period of 1943.
The greatest growth in this comparison was shown
by individual lenders whose recordings increased 33
percent; savings and loans were second with an
expansion of 27 percent. Mortgage financing by
insurance companies, the only type of lender showing a drop during 1944, declined 8 percent. [TABLES
8 and 9.]
ments over repurchases, $71,400,000, compares with
a net increase of $54,600,000 in private share capital
in November 1943. The net increase for insured
associations was $62,600,000; for uninsured members,
$6,000,000; and for nonmember savings and loan
associations, $2,700,000. Net increases in the share
capital of these associations during November 1943
were, in the same order, $46,900,000; $6,400,000 and
$1,300,000.
For each $100 invested in savings and loan associations during November, $52 was withdrawn compared with $54 in November 1943.
Share investments and repurchases,
November 1944
[Dollar amounts are shown in thousands]
F H L B SYSTEM—Advances reverse
usual November trend
Contrary to the usual downward trend evident in
November, advances of $30,737,000 made in the
month of 1944 were the second highest for the year,
in addition to being well above the comparable month
of any year since the System was established. They
exceeded by $25,644,000 the November 1943 figure
of $5,093,000, and were $26,556,000 above the October 1944 total of $4,181,000. All Banks except New
York participated in the increase in advances over
October. Advances were greater than repayments
in all except the New York, Indianapolis, and Los
Angeles Banks.
Repayments declined for the third successive
month, being 42 percent below the $18,869,000
totaled in October, and 29 percent less than in November 1943. The $10,872,000 in repayments reported during November was, except for the June
1944 figure of $8,162,000, the lowest amount this
year. Only two Banks, Boston and Pittsburgh,
showed higher repayments during November than
October.
November advances outstanding rose $19,865,000
from October to $100,378,000, but were $15,978,000
below the November figure for the preceding year.
The November 1944 total of advances outstanding
was the lowest 6f any comparable month since 1935.
[TABLE
12.]
F L O W OF PRIVATE REPURCHASABLE CAPITAL
Private savers invested approximately $147,500,000 in the shares of savings and loan associations
during November and withdrew an estimated
$76,100,000. The resulting excess of new invest120
I t e m and period
All associations
All insured
associations
UninNonsured
members m e m b e r s
Share i n v e s t m e n t s :
First
11 mos.
1944
$1,715,326 $1,342,129 $225,736 $147,461
First
11 mos.
1,373,321 1,032,235 193,999 147,087
1943
Percent change
+ 25
+ 30
+ 16!
0)
Nov. 1944
147,503
19,573
115,008
12,922
Nov. 1943
16,824
117,362
90,023
10,515
Percent change
+ 26
+ 28
+ 16
+ 23
Repurchases:
First
11 mos.
1944
First
11 mos.
1943
Percent change
N o v . 1944
Nov. 1943
Percent change
$956,936
$99,123
852,862
+ 12
76,113
62,789
+ 21
585,837
+ 21
52,378
43,137
+ 21
147,554
13,534
10,474
+ 29
119,471
-17
10,201
9,178
+ 11
55.8
52.S
65.9
67.2
62.1
51.6
53.5
56.8
45.5
47.c
76.1
69.1
62.3
81.2
78.9
87.3
Repurchase
ratio
(percent):
First
11 mos.
1944
First
11 mos.
1943
N o v . 1944
|
Nov. 1943
1
$708,944 $148,869
+1
Less than 1 percent.
An estimated $1,715,000,000 of new share capital
was received by savings and loan associations during
the first 11 months of 1944 while withdrawals during
the same period amounted to approximately $957,000,000, yielding a repurchase ratio of 56 percent.
During the same 1943 period, approximately $1,373,000,000 was invested in savings and loan shares and
$853,000,000 was withdrawn. The repurchase ratio
for that year was 62 percent.
Federal Home Loan Bank Review
INSURED ASSOCIATIONS-Unprecedented dollar growth reported
In no year since the organization of the FSLIC
in 1934 has the average, month-to-month dollar
growth in the aggregate total resources of all insured
associations exceeded that which occurred during
the first 11 months of 1944. From January through
November the total assets of these institutions rose
from $4,183,000,000 to $4,867,000,000, a gain of
$684,000,000, or an average of $60,000,000 per
month. I t is significant in this connection that
during the last five years the ratio of private repurchasable capital to total resources has risen from
72 percent to 87 percent reflecting in large part the
high degree of public confidence in insured associations.
During November, total resources of the 2,462
insured associations were expanded by more than
$90,000,000. This increase was due primarily to
two factors, a $63,000,000 excess of new share investments over repurchases and an increase of approximately $18,000,000 in Federal Home Loan
Bank advances, the latter stemming from the desire
of insured associations to participate to the limit of
their ability in the Sixth War Loan.
More than $88,000,000 of new mortagage loans
were made during November, a less-than-seasonal
decline of 12 percent from the preceding month.
This lending volume for the current month was,
however, 21 percent greater than the $73,000,000
loans made in November 1943. [TABLE 13.]
fe DIRECTORY
CHANGES
N O V E M B E R 1 6 — D E C E M B E R 15,
•Admission to Membership in Bank System
* Termination of Membership in'Bank System
#Federal Charter Granted
##Cancelation of Federal Charter
01nsurance Certificate Granted
001nsurance Certificate Canceled
DISTRICT NO. 2
N E W YORK:
Brooklyn:
*0 Atlantic Savings and Loan Association, 321 Court Street.
New York City:
#**## New York Times Savings and Loan Association, 229 West 43rd Street.
DISTRICT NO. 3
PENNSYLVANIA:
Pittsburgh:
**Mathilda Building and Loan Association of Pittsburgh, Pennsylvania,
5017 Penn Avenue.
**Traction Building and Loan Association, 5017 Penn Avenue.
D I S T R I C T NO. 4
MARYLAND:
Baltimore:
**The Plaza Permanent Building and Loan Association of Baltimore City,
Incorporated, S. W. Corner of St. Paul and Lexington Streets.
D I S T R I C T NO. 5
KENTUCKY:
Newport:
00Standard Savings and Loan Association of Newport, Kentucky, 107
East Ninth Street.
TENNESSEE:
Pulaski:
**##00Pulaski Federal Savings and Loan Association.
D I S T R I C T NO. 7
WISCONSIN:
Madison:
0The Home Savings and Loan Association, 1 West Main Street.
Groups Formed To Advise O P A
FEDERAL SAVINGS AND LOAN ASSOCIATIONS
The 1,464 Federal savings and loan associations
increased their assets by $59,000,000 during November to a total of $3,060,000,000. The private share
capital of these institutions amounted to $2,693,000,000 after expanding $41,000,000 from the preceding
month.
Progress in number and assets of Federals
[Dollar a m o u n t s are shown in thousands]
Number
Approximate assets
Class of association Nov. 30, Oct. 31, Nov. 30,
1944
1944
1944
New
_
Converted __
Total
January 1945
633
831
Oct. 31,
1944
633 $1, 028, 119 $1, 005, 125
832 -2, 031, 437 1, 995, 240
1,464 1,465 3, 059, 556 3, 000, 365
1944
Key to Changes
•
R E C E N T L Y , two new committees have been
formed to advise the Office of Price Administration. The first is to deal with rent control. Members
were nominated by the building industry. They
voted to study security deposits, hardship and deferred maintenance, enforcement policy and decontrol, among other things. Committee members will
confer locally with groups in the 17 defense-rental
areas they represent, and file recommendations.
The other advisory committee, whose members
have been appointed from among those whose
companies produce prefabs, will handle prefabrication. Tbey will deal with price problems; in particular, they will discuss proposed new price regulations. The General Maximum Price Regulation has
not provided a satisfactory method of price fixing,
since the industry produces a variety of structures,
and since new buyers and sellers are expected in the
market after the war.
121
Tabic 1 . — B U I L D I N G A C T I V I T Y — E s t i m a t e d number and valuation of new family dwelling units
provided in all urban areas in November 1944, by Federal Home Loan Bank District and by State
[Source: U. S. Department of Labor]
[Dollar* amounts are shown in thousands]
All residential s t r u c t u r e s
N u m b e r of family
dwelling u n i t s
Federal H o m e Loan B a n k District and state
U N I T E D STATES
N o . 1—Boston
___
Connecticut
_.
M a i n e . . .__
Massachusetts..._
New Hampshire
Rhode Island
Vermont
_ _ _
_ .
.__
_ ...
... _
_
...
._
Indiana
_
M i c h i g a n . __ __ ___
___
Iowa
___ _ ___
Minnesota.
Missouri
North Dakota.
_
S o u t h D a k o t a ._
.
__
- _ _
_
_
122
7
13
9
2
3
24
7
13
53
23
221
64
25
1,481
7
1,011
772
1,891
1,627
868
575
1,518
1,124
339
153
223
104
39
78
32
43
92
76
240
40
128
121
7
68
602
437
356
202
100
90
22
82
89
211
526
47
329
276
2
147
339
17
223
104
39
75
28
43
82
4
225
40
128
21
7
68
602
67
356
202
100
89
20
82
71
4
501
47
329
23
2
147
...
412
2,648
1,164
8,089
380
511
1,084
2,262
______
44
148
220
23
2,572
53
107
655
402
46
7,924
119
12
148
220
23
435
53
27
655
402
46
2,097
119
1,046
1,147
3,433
4,366
396
861
1,687
3,672
259
787
239
908
1,041
2,392
645
3,721
259
137
89
772
1,041
646
240
3,432
_ ___
459
2,123
2,062
10,125
407
553
1,886
2,296
_
357
102
1,828
295
1,654
408
8,947
1,178
325
82
312
241
1,534
352
1,286
1,010
377
110
1,456
166
317
110
1,340
168
71
178
101
10
17
2
3
105
321
858
214
42
21
1
11
154
67
178
57
10
5
2
3
105
316
858
121
42
3
2
12
154
1,300
2,565
2,124
3,939
1,266
1,914
2,037
2,743
70
264
88
28
850
95
536
379
78
1,477
35
672
54
26
1,337
98
878
713
84
2,166
70
264
88
28
816
95
36
340
78
1,365
35
671
55
26
17250
98
20
622
84
1,919-
257
788
583
2, 436
236
493
538
1,694
50
76
53
78
19
59
410
300
120
167
198
98
68
99
1,200
1,069
29
76
53
78
19
59
142
273
75
167
198
98
68
99
470
1,057
420
1,122
1,281
4,575
255
952
815
4,049
40
32
99
26
211
12
87
1
207
237
521
69
76
128
241
120
700
16
267
2
765
955
2,305
281
40
32
75
26
81
1
27
1
119
233
503
69
76
128
175
120
315
1
109
2
438
943
2,276
281
1,941
6,974
5,692
15,172.
1,084
1,696
3,466
6,019
55
1,881
5
36
6,934
4
180
5, 503
9
104
15,066
2
55
1,024
5
36
1,660
180
3,277
9
104
5,915
_
_______
___
...
_ _ _ _ _ _ _ _ _
__ _
_
24
228
64
___ _
_ _ _
______
2
3
56
23
-
_ _
.
9
1,513
N o . 12—Los A n g e l e s . _
Arizona
California
Nevada..
232
151
70
285
._ _ _ _ _
.... . . .
__ _ __.
_ ...
__._..___
_ .__
_
21
1
57
7
397
8
_ _ _ _ _ _
.
__ _
. . . . __ _. . _.
_ _ _ _ _
56
34
28
412
N o . 11—Portland
Idaho
Montana
Oregon.
Utah
Washington
Wyoming
8
2
14
76
_
____
__ _
848
151
114
25
1,480
8
_
_ __
__
__. _
21
1
57
1,513
_ ___
_
273
34
55
292
N o . 10—Topeka
Colorado
Kansas
Nebraska
Oklahoma..
473
8
2
14
7
397
8
___ .__
_____
_ ___ _
__
_ .
...
. __ _
$26,487
103
412
N o . 9—Little R o c k .
Arkansas
Louisiana
Mississippi
N e w Mexico
Texas
$15,140
123
79
_
_ _
_
___
_ _ _
______
8,324
33
362
112
Illinois
Wisconsin
No. 8—DesMoines-. _
5,444
1,133
474
._ _
_
$53, 693
103
110
271
_
N o . 7—Chicago _
$21,835
367
381
. .
_ __ ___
19,197
33
99
25
-
_
7,950
N o v . 1943
124
.__ __.
N o . 6—Indianapolis . . . _
N o v . 1944
31
95
N o . 6—Cincinnati
.
N o v . 1943
126
..
Kentucky
Ohio
Tennessee
N o v . 1944
552
. _ ...
__
N o v . 1943
440
112
_ __ . .
...
N o v . 1944
1,483
271
_
_
N o v . 1943
1,754
N o . 4—Winston-Salem
Alabama
D i s t r i c t 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
_ _
N o v . 1944
144
25
...
. . . ._
-_-______
valuation
169
...
. . . __
-
Permit
615
N o . 3—Pittsburgh
Delaware. _
Pennsylvania
W e s t Virginia
Permit valuation
520
95
N o . 2—New Y o r k
N e w Jersey
N e w York
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 u n i t s
_
Federal Home Loan Bank Revieyr
Table 2 . — B U I L D I N G A C T I V I T Y — E s t i m a t e d number and valuation of new family units provided
in all urban areas of the United States
[Source: U . S . Department of Labor]
[Dollar amounts are shown in thousands]
N u m b e r of family dwelling u n i t s
P r i v a t e construction
_
1-family dwellings
2-family dwellings J__
__
3- a n d more-family dwellings 2
Public construction.
T o t a l u r b a n construction
1
2
January-November
totals
M o n t h l y totals
T y p e of construction
Permit valuation
N o v . 1944
. Oct. 1944
N o v . 1943
6,314
4,832
612
870
6,878
5,284
733
861
9,412
7,015
1,309
1,088
1944
87,633
67, 282
8,870
11, 481
1943
111,252
72, 618
15, 241
23, 393
January-November
totals
M o n t h l y totals
N o v . 1944
Oct. 1944
N o v . 1943
$17, 472
13, 411
1,729
2.332
$19, 690
15, 225
1,861
2,604
$29, 701
22, 764
3,723
3,214
1944
$271,878
208,734
29, 592
33, 552
1943
$346, 286
238,979
42, 706
64, 601
1,636
695
9,785
15, 280
84,864
4,363
2,094
23,992
40, 714
184,099
7,950
7,573
19,197
102,913
196,116
21,835
21, 784
53, 693
312, 592
530, 385
Includes 1- and 2-family dwelling combined with stores.
Includes multi-family dwellings combined with stores.
Table 3 . — B U I L D I N G
COSTS—Index of building costs for the standard house in representative
cities in specific months [
[Average month of 1935-1939=100]
1944
1943
1942
1941
1940
1939
1938
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Federal H o m e Loan B a n k District and
city
Dec.
N o . 1—Boston:
H a r t f o r d , Conn.*__. _._
New Haven, Conn
Portland, Me.*
Boston, Mass.*
Manchester, N . H.* _
P r o v i d e n c e , R . I.*.__ _
Rutland, Vt
135.2
151.1
131.4
120.6
141.4
_ _
N o . 4—Winston Salem:
B i r m i n g h a m , Ala.* _ - W a s h i n g t o n , D . 0.*__ _
Tampa, Fla _._.__
A t l a n t a , Ga.* __ .._ - . . . ___ .__ _
B a l t i m o r e , 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, V a .
_
_
-
N o . 7—Chicago:
Chicago, 111.* _ _ . - _
Peoria, 111 _
_
Springfield, 111
M i l w a u k e e , Wis.*
._
Oshkosh, W i s
- _ _ _.N o . 10—Topeka:
D e n v e r , Colo.* _.
__.
__.
Wichita, Kans.*
O m a h a , Nebr.*__.
O k l a h o m a C i t y , Okla.* _ _ _
_ . .
__
._
__
_
129.8
153.7
134.2
146.1
151.8
138.1
130.0
139.7
126.9
112.2
141.7
__
119.9
135.2
133.0
158.2
Sept.
June
Mar.
135.2
144.1
151.0
131.3
120.4
139.7
129.1
135.1
140.6
147.8
130.9
118.3
138.6
127.0
134.6
138.3
146.3
128.6
118.1
136.2
126.8
134.5
135.9
144.4
128.4
116.2
135.6
126.0
128.4
131.1
126.4
124.2
108.7
120.7
124.4
125.4
127.0
110.8
119.8
105.0
118.1
115.8
107.2
108.4
101.6
105.8
99.3
109.7
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
129.7
153.7
130.3
143.5
151. 8
141.0
133.0
128.0
139.2
125.0
137.6
127.7
152.4
130.2
142. 5
151.8
141.0
134.1
r 126. 7
' 131. 9
125.0
137.6
127.3
149.5
130.2
140.1
150.1
138.4
134.1
r 127. 2
r 131. 9
122. 5
136.6
125.2
149.3
130.2
137.7
149.4
117.1
136.2
125.1
131.3
122.1
r 120.1
' 121. 5
132.1
116.0
125.2
115.4
128.4
112.8
119.0
127.4
114.2
118.8
«• 114. 2
128.3
111.3
125.1
106.4
116.0
109.2
107.2
109.0
105.9
106.4
102.8
114.7
105.3
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
111.9
125.5
123.5
141.4
133.6
111.9
125.6
123.7
141.6
133.6
112.2
125.6
123.7
140.4
133.6
111.2
125.6
123.7
137.2
133.6
r 109. 3
119.7
»• 117.1
•• 131. 2
133.6
104.8
119.4
' 116. 9
116.6
122.2
99.2
110.9
' 110. 0
109.8
108.6
99.8
107.1
r 104. 9
107.9
100.7
119.7
135.0
133.4
156.4
119. 3
134.8
132.7
156.3
117.0
133.6
131.0
155.1
116.5
132.3
129.1
154.0
112.1
127.5
126.2
136.1
110.6
1,18. 8
120.8
128.9
100.6
107.6
107.5
120.3
98.9
103.9
105.5
106.8
133.4
' 127. 2
' 131. 2
122.1
r
100.5
99.8
101. 0
102.4
102.3
102.2
106.9
99.2
104.5
*Indexes
of December 1940 and thereafter have been revised in order to use retail material prices collected by the Bureau of Labor Statistics.
r
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 thai, 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. The Bureau of Labor Statistics furnishes building material prices for some cities. 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.
January 1945
123
Table 4 . — B U I L D I N G COSTS—Index of building costs (or the standard house
[Average m o n t h of 1935-1939=100]
N o v . 1944 Oct. 1944 Sept. 1944 A u g . 1944 J u l y 1944 J u n e 1944 M a y 1944 A p r . 1944 M a r . 1944 Feb.1944 J a n . 1944 D e c . 1943 N o v . 1943
E l e m e n t of cost
Material
Labor
T o t a l cost
r
131.6
138.4
131.4
137.5
131.3
'137.4
131.3
137.3
131.0
137.3
130.7
137.5
130.3
137.3
129.7
137.0
129.1
136.8
128.8
136.5
127.8
136.1
127.6
136.0
126.8
135.6
133.9
133.4
'133.3
' 133.3
133.1
133.0
132.7
132.2
131.7
131.4
130.6
130.5
129.8
Revised.
Table 5 . — B U I L D I N G COSTS—Index of wholesale prices of building materials in the United States
[1935-1939 = 100; c o n v e r t e d from 1926 base]
[Source: U . S. D e p a r t m e n t of L a b o r ]
All b u i l d i n g
materials
Period
1942: N o v e m b e r
_. __
1943: N o v e m b e r
December__
._
_.
1944: J a n u a r y — .
Fe bruary
»
March
April...
May
-_- -_
June
July
August
_
September
October.
_
November
_
___
_
--
_
Percent change:
N o v e m b e r 1944—O ctober 1944
N o v e m b e r 1944—November 1943
Brick and
tile
Lumber
Cement
Paint and
paint materials
Plumbing
and heating
Structural
steel
Other
122.9
108.5
103.4
148.2
123.8
122.4
103.5
111.3
126.3
126.6
110.1
110.1
102.7
102.7
' 164.1
164.3
126.9
127.0
120.6
120.6
103.5
103.5
110.5
111.2
126.7
126.9
127.5
128.6
129.2
129.4
129.4
129.5
129.5
129.9
130.0
110.3
110.2
110.4
110.4
110.6
110.7
110.8
110.8
111.7
115.3
115.6
102.7
102.7
102.7
103.1
105.8
105.8
105.8
105.8
106.3
107.0
107.2
164.4
165.3
167.8
170.8
171.5
171.5
171.7
171.9
171.5
171.3
171.3
127.2
127.7
128.4
128.4
128.7
130.0
129.7
129.7
129.7
130.3
130.7
120.6
120.6
120.6
120.6
121.4
121.4
121.4
121.4
121.4
121.4
121.4
103.5
103.5
103.5
103.5
103.5
103.5
103.5
103.5
103.5
103.5
103.5
111.2
111.2
111.2
111.2
111.4
111.4
111.5
111.6
111.7
111.7
111.7
+0.1
+2.9
+0.3
+5.0
+0.2
+4.4
0.0
+4.4
+0.3
+3.0
0.0
+0.7
0.0
0.0
0.0
+1.1
' Revised.
Table 6 . — M O R T G A G E LENDING—Estimated volume of new home mortgage loans by all savings
and loan associations, by purpose and class of association
[ T h o u s a n d s of dollars]
P u r p o s e of loans
Class of association
Period
L o a n s for
all o t h e r
purposes
Construction
H o m e purchase
Refinancing
$190,438
$573, 732
$165, 816
$41, 695
$78,820
$1,050, 501
$412,828
$476,080
$161, 593
181,966
9,275
532, 292
43,984
153,048
12, 472
39,496
3,007
73,071
5,241
979, 873
73,979
385,447
28,163
443, 329
35, 441
151,097
10, 375
__.
106,497
802, 371
167, 254
30, 441
77, 398
1,183,961
511, 757
539,299
132, 905
January-November.
November
December
1944:
January-November.
January
February
March
April.
May
June
July
August
September
October
November
95, 593
6,928
10,904
737, 715
73,053
64,656
154, 704
12, 767
12, 550
28,151
2,638
2,290
70, 226
7,670
7,172
1,086,389
103, 056
97, 572
468,110
44,804
43, 647
495,327
47,108
43,972
122,952
11,144
9,953
89, 999
7,872
11,195
9,127
13, 484
7,338
9,663
7,078
7,589
5,923
6,095
4,635
982, 509
55,000
66,138
81,846
85, 568
98, 872
103, 276
93, 232
105,050
101, 884
101, 461
90,182
150, 258
9,976
11.955
14, 422
13, 491
14, 415
14,963
13, 871
14,152
14, 495
15, 253
13, 265
28, 624
1,521
1,960
2,266
2,679
2,967
2,957
2,841
3,067
3,160
2,699
2,507
91, 524
6,609
6,916
8,469
7,421
8,931
9,850
8,014
8.816
8,993
9,720
7,785
1,342,914
80,978
98,164
116,130
122, 643
132, 523
140, 709
125,036
138,674
134,455
135, 228
118,374
617, 847
37,076
44,144
53,883
57,045
59, 229
64,474
57,164
64,400
63, 489
61, 965
54, 978
598, 749
35,456
44,139
50, 686
54, 212
60,141
63,851
56, 539
61, 377
59,162
60,945
52, 241
126, 318
8,446
9,881
11, 561
11, 386
13,153
12, 384
11, 333
12, 897
11, 804
12, 318
11,155
1942
January-November.
November
1943—
124
Reconditioning
Total
loans
Federals
State
members
Nonmembers
Federal Home Loan Bank Review
Table 7.—LENDING—Estimated volume of new
loans by savings and loan associations
Table 8.—RECORDINGS—Estimated nonfarm
mortgage recordings, $20,000 and under
NOVEMBER 1944
[Thousands of dollars]
[Thousands of dollars|
C u m u l a t i v e n e w loans
(11 m o n t h s )
N ew loans
Federal H o m e L o a n
B a n k District and
N o v e m - October N o v e m
class of association
ber
ber
1944
1943
1944
1943
$118,374 $135, 228 $103,056 $1,342,914 $1,086,389
U N I T E D STATES
Federal—
Nonmember
Boston
Federal
1944
44,804
47,108
11,144
617,847
598, 749
126,318
468,110
495,327
122,952
10,356
10,266
98,464
90,328
37,571
48,483
12,410
26, 502 1 +41., 8
49, 283 - 1.6
14, 543 - 1 4 . 7
3,642 1
4,047
1,269
Nonmember
N e w Y o r k . __
11,899
FederalState member
Nonmember
4,298
5,737
1,864
11,023 1
Pittsburgh
Federal
State m e m b e r . _
Nonmember
5,486 1
3,829
1,708
W: nston-Salem
Federal
State member
Nonmember
+23.6
54,978 1 61,965
52, 241 60,945
11,155 12,318
8,958
._
Percent
change
4,302
4,844
If 210
13,948
5,095 1
6,756
2,097
10,997
5,1161
3,867
2,014
3,166 1
5,448
1,652
+32.0
+20.9
+ 2.7
+
9,0
8,048
121,445
81,470
+49.1
2,259
4,158
1,631
39,127
62,175
20,143
20,762
41,990
18, 718
+88. 5
+48.1
+ 7.6
9, 224
112,951
93,174
+21. 2
3,734
3,235
2,255
52,012
38,570
22,369
30,462
25,287
+26.6
-11.5
37,425 1 +39.0
14, 585
15,142
12,024
157,739
130, 753
+20. 6
7,163
6,489
933
7,526
6, 695
921
6,073
4,926
1,025
82,395
65,720
9,624
65,955
52,118
12,680
+ 24.9
+26.1
—24.1
19,965
24,371
17,591
197,705
+17.6
8.612
9, 713
1,640
10,346
12, 275
1,750
7,209
9,139
1,243
97,528
116,173
18, 747
6,901
7,622
5,772
75,197
65,357
+15 1
3,470
3,185
246
3,937
3,361
324
2,743
2,694
335
37,095
34, 638
3,464
33,558
28,162
3,637
+10. 5
+23.0
—4 8
Federal H o m e Loan
B a n k District
and state
F e d e r a l . . . ___
State m e m b e r . . .
Nonmember
Indianapolis
Federal.
State member
Nonmember
_
._
Chicago
F e d e r a l . __
State member
Nonmember..
Little Rock
10, 720
151, 508
109,815
+ 38.0
5,215
6,188
1,227
6,291
8,066
1,361
4,506
4,853
1,361
63,166
75,681
12,661
42,917
54, 053
12,845
+47 2
+40.0
—14
. _
7,279
8,775
5,646
84, 664
61,138
+38. 5
__
3,896
2,386
997
4,662
2,974
1,139
3,091
1,967
588
44, 293
29, 500
10,871
30,975
21, 693
8,470
+43.0
+36. 0
+28. 3
.....
i
Topeka
F e d e r a l . . . . . . ___
State member
_
Nonmember.. .
Portland
Federal
State member
Nonmember . . . .
Los Angeles
__
._
January 194S
5,568
6,317
4, 903
69,924
55, 775
+25.4
2,733
2,768
67
3,081
3,131
105
2,104
2,704l
95
30,371
38,719
834
23,087
31,761
927
+31. 6
+21.9
-10.0
5,779i
6, 295
4, 584
64, 923
53,182
+22. 1
3,127
1,644
1,008
3, 573
1, 541
1,181
2, 488
1, 407
689
34, 258
18, 050
12,615
29,667
15, 570
7,945
+15.5
+15.9
+58.8
3, 766
4, 385
3, 713
43, 451
41,086
+5.8
2, 410
1, 285
71
2, 604
1,675
106
2, 345
1,182
186
28,153
13, 778
1, 520
25, 596
13,718
1, 772
+10.0
+0.4
-14.2
10,021
11, 302
10, 565
130, 200
106, 606
+22.1
4,926
4, 970
125
5,4321
5, 760
110
5,086
5, 395
84
71,878
57, 262
1,060
54, 348
51, 468
790
+32.3
+11.3
+34.2
Other
mortgagees
Total
|$134,359 $20, 543 $71, 752 $15,176 $105, 513 $48,296 $393, 639
Boston
1 12,472I
Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont
New York
N e w Jersey .
New York.
403
3,747
7, 595
6,548
2,526
1, 555
609
8, 749
335
1, 022
202
265
1, 622 1, 280
242
678
954 4,463
148
490
692 1
390
89
294
1,885
553
2,817
349
734
210
775 1 7,382
54
2,140
1,362 18,479
19
1,341
305
3,143
11
806
11, 343
1,670
6,195
5,547
15,903
6,271
46,929
-3,615
7,728
662
1,008
3,068
3,127
542
5,005
4,124
11,779
2,416
3,855
14,427
32, 502
134
33,291
10, 039
1,569
6,761
494
5,409
3,249
27, 521
Delaware
Pennsylvania
W e s t Virginia
173
9,031
835
105
1,181
283
141
5,485
1,135
25
469
214
4,545
650
80
2,961
208
738
23, 672
3,111
Winston-Salem.
15,172
2,348
7,042
132
14,843
3,469
43,006
557
3,020
1,633
1,741
3,824
1,897
375
2,125
257
296
448
268
137
536
216
190
2,244
638
684
1,058
774
355
379
910
132
962
1,624
5,624
1,296
1,570
1,195
668
1,904
255
304
657
495
229
603
294
632
4,275
5,882
9,046
4,858
6,666
4,586
1,932
5,761
25,187
1,667
9,220
727
6,638
4,534
47, 973
2,636
21, 793
758
277
954
436
986
7,372
862
727
315
5,523
800
124
1,728
2,682
4,338
38,097
5,538
8,075
2,267
7,508
35
3,280
2,289
23,452
5,247
2,826
770
1,497
2,773
4,735
35
981
2,299
877
1,412
10, 683
12, 769
13
6,656
7,721
35,369
7,091
630
25,942
9,427
Pittsburgh
__
Alabama
D i s t r i c t 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
Kentucky...,
Ohio
Tennessee
Indianapolis -
15,718
Federal . . .
_ ._
State member
Nonmember.. . . .
Federal...
State member
Nonmember .
77,318 ! + 2 6 . 1
105,049 1 + 1 0 . 6
15,338 + 2 2 . 2
12,630
Federal
State member
Nonmember.
Des Moines
232,448
Individuals
U N I T E D STATES
Cincinnati
C incinnati
Savings I n s u r - B a n k s M u and
and
tual
ance
loan
savcom- t r u s t
associa- panies comings
panies b a n k s
tions
__.
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
___
14,249
1,305
5,425
10,591
3,658
797
508
3,646
1,779
13
3,817
2,839
8,328
1,925
5,623
114
5,078j
3,248
24, 316
2,166
3,136
2,557
304
165
256
654
952
48
15
1,389
1,287
2,683
67
197
901
1,319
2,561
136
161
233
539
2,432
17
27
4,945
7,049
11,185
572
565
8,625
3,905
1,836
6,860
3,425
24, 651
462
2,663
342
142
5,016
59
997
106
2, 743
237
157
283
173
986
368
1,199
447
279
4,567)
56
994
104
25
2,246
1,182
6,010
1,282
619
15, 558
6,838
890
2,206
4, 533
1,448
15,915
879
1,930
1,189
2,840
128
220
288
254
475
526
377
828
2,182
482
424
1,445
503
210
149
586
4,167
3,368
2,427
5,953
3,742
528
3,141
519 ~~ 3,219
189|
374
1,160
319
1,618
82
19
33
235
114
119
8
134|
223
441
511
1,728
1041
ll4
•
37
482
1, 596
12,745
2731
319
1,347
218
813
249|
103
23
368
93
996
13|
718
972
3,588
1 255
5,756
456
10,291
2,066 13,0481
24,5461
8,520|
58,471
164
10,044
83
• 41
199
2,015 12,800
49
10
1,054
23,235
257
46
8,463
11
1 504
56,557
410
125
Table 9—MORTGAGE RECORDINGS-Estimated volume of nonfarm mortgages recorded
[Dollar amounts are shown in thousands]
Savings and loan
associations
Insurance
companies
Banks and trust
companies
Mutual savings
banks
Individuals
Other mortgagees
All mortgagees
Period
Total
Total
Percent
Percent
Total
Percent
Total
1943: January—November. __ $1,136,329
111, 818
November
101,176
December
32.2
31.6
30.6
$257, 678
23,115
22,188
7.3
6.6
6.7
$685, 529
64,877
66,699
19.4
18.3
20.1
$140,142
15,141
12, 227
1944: January—November. __ 1, 443,110
January
89,887
101, 705
February
121, 210
March
127,429
April
May
. . . 139, 748
145,893
June
138, 762
July.
149, 835
August
146,151
September
148,131
October
134, 359
November
34.0
29.8
32.8
32.9
34.5
34.5
34.6
33.7
34.8
35.1
35.0
34.1
236, 991
20, 585
18, 753
22, 660
19, 671
21,794
22, 215
24, 707
22,646
22,432
20, 985
20, 543
5.6
6.8
6.1
6.1
5.3
5.4
5.3
6.0
5.2
5.4
5.0
5.2
812, 955
62,180
60, 346
70, 570
72, 438
79,083
79,453
80, 858
83, 094
77,000
76, 181
71, 752
19.1
20.6
19.5
19.2
19.6
19.5
18.8
19.7
19.3
18.5
18.0
18.2
151,392
9,731
9,294
11, 255
12, 338
14, 882
15, 536
15, 261
15, 920
15,447
16, 552
15,176
Table 1 0 — S A V I N G S — S a l e s of war bonds x
Percent
4.0
4.3
3.7
Total
Percent
Total
Percent
Total
Percent
$781, 249
82, 30?
76,432
22.1
23.3
23.1
$529,485
56,416
52, 267
15.0
16.0
15.8
$3, 530,412
353,673
330, 989
100.0
100.0
100.0
3.6 1, 038,486
72, 600
3.2
72, 246
3.0
89,136
3.1
89, 466
3.4
95, 730
3.7
99,140
3.7
98,194
3.7
104, 215
3.7
104, 479
3.7
109,767
3.9
103, 513
3.9
24.4
24.0
23.3
24.2
24.2
23.6
23.5
23.9
24.2
25.1
26.0
26.3
567,468
46,966
47, 300
53,409
47,926
53,858
59, 394
53, 354
55,066
50, 676
51, 223
48, 296
13.3
15.6
15.3
14.5
13.0
13.3
14.1
13.0
12.8
12.2
12.1
12.3
4, 250, 402
301, 949
309, 644
368, 240
369, 268
405,095
421,631
411,136
430, 776
416,185
422.839
393,639
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Table 1 1 . — F H A — H o m e mortgages insured x
[Thousands of dollars]
[Premium paying; thousands of dollars]
Period
Series E
19412
$1,622,496
1942
1943
November
December
1,084,637
2,102,345
575,714
605,709
624, 253
1,349,794
1,686,609
499,357
590,827
598, 570
806,817
1944
January
March
*
April
May..
-.
June
July
August
.
September
O c t o b e r . __
_
November
Series F
Redemptions
Series G
Total
$207,681
$1,184,868
$3,015,045
5,988,849
652,044
2,516,065
9,156,958
245, 547
10,344,369
665, 293
727, 558
745,123
23,449
24,081
2,639,908
109,404
101,378
13, 729, 402
798,146
853,017
1, 506, 894
164,412
200, 840
126, 825
157,422
22,933
19,306
15, 287
115,119
101,082
17, 807
15,953
13,653
42,680
486, 942
521,702
110,347
113, 528
111,088
377, 284
337,459
85,272
85, 286
82,871
173,858
1, 698,404
2,781,469
709,054
738, 543
750, 628
1,842,197
2,125,050
602,436
692,066
695,094
1,023,355
180,965
177, 980
261, 549
230,614
271,597
241, 278
220,145
272,125
277.445
394,846
376,053
Title II
$13,601
1
U. S. Treasury War Savings Staff. Actual deposits made to the credit of
the TJ. S. Treasury.
2
Prior to May 1941: "Baby Bonds."
Title V I
Period
New
1943: November.
December.
1944: J a n u a r y . . .
February..
March
April
May
June
July
August
September.
October
November-
592
249
250
130
81
81
82
90
79
40
54
Existing
Total
insured
at end of
period *
$20,499
17,401
$48,421
42,979
$5, 364,946
5,426,073
18,397
13,795
12, 729
13, 200
18, 319
17, 768
18,322
20, 256
19, 967
21,941
21, 646
49,003
40,616
41,620
36, 793
37, 739
34,238
42,322
48,166
42, 592
43,354
38,053
5,494, 065
5, 548,725
5, 603,324
5, 653, 447
5, 709, 586
5,761, 673
5,822, 399
5,890, 911
5,953, 549
6, 018,884
6,079,637
1
Figures represent gross insurance written during the period and do not take
account of principal repayments on previously insured loans.
2 Includes Title I, Class 3, amounts that were shown prior to January 1943.
Table 1 2 . — F H L BANKS—Lending 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 1944
C a p i t a l a n d p r i n c i p a l liabilities
N o v e m b e r 30, 1944
P r i n c i p a l assets
N o v e m b e r 30, 1944
Federal H o m e Loan Bank
Repayments
Advances
Boston
New York
P i t t s b u r g h __
Winston-Salem.
Cincinnati
Indianapolis
Chicago
Des Moines
Little Rock
Topeka
Portland
L o s Angeles
_._
.._
_._ _. . . .
-.
..
.
-
._
._ __ _
_
...
N o v e m b e r 1944 ( c o m b i n e d t o t a l )
October 1944
N o v e m b e r 1943.
1
Includes interbank deposits.
126
...
Cash*
Government
securities
Capital 2
Debentures
Member
deposits
$5,830
75
2,533
1,867
3,325
1,125
7,009
5,605
600
1,131
565
1,072
$984
990
1,271
461
831
1,219
1,253
1,866
157
367
78
1,395
$10,361
12, 382
11,462
5,901
7,859
7,928
14,642
8,573
4,470
3,940
1,093
11, 767
$2,765
1,346
3,443
3,266
7,498
3,988
6,861
1,891
352
632
3,011
9,136
$9,911
27,979
8,672
11,002
25,915
11, 360
17,004
11, 751
9,666
7,579
9,416
14,045
$20,037
27, 630
16,875
17, 803
25, 866
14, 669
22,926
12, 873
12, 509
10,807
8,581
15,952
$2,000
7,000
6,000
2,000
5,000
5,000
11,000
7,000
2,000
1,000
3,000
15, 500
$1,077
7,212
771
431
10. 671
3,745
4,703
2,392
51
394
1,992
3,568
$23,125
41,883
23, 683
20, 238
41, 560
23,441
38,656
22, 288
14, 569
12, 206
13, 578
35, 057
30, 737
10,872
100, 378
44,189
164, 300
206, 528
66, 500
37,007
310, 284
27,944
172,172
205, 576
44,000
31,885
281,673
• 141,581
199, 616
66,000
25, 663
291,430
18, 869
4,181
.___•
Advances
outstanding
Total
assets
N o v . 30,
19441
5,093
15,421
2
80, 513
116,356
32, 311
Capital stock, surplus, and undivided profits.
Federal Home Loan Bank Review
Table 13.—INSURED A S S O C I A T I O N S —
Progress of institutions insured by the FSLIC l
[Dollar amounts are shown in thousands]
Operations
Period and class
of association
Number of
associations
Total
$2,442
2,447
$4,127,212
4,182,728
New
New
private
mortgage investloans
ments
Private
repur-
Repurchase
ratio
ALL I N S U R E D
1943: November
December
$72,936
70,973
$90,023
118,496
$43,137
37,885
47.9
32.0
2,451
2,453
2,452
2,453
2,459
2,461
2,463
2,461
2,460
2,462
2,462
4, 218, 521
4, 287,788
4,327, 868
4,374,338
4,442,608
4, 583, 568
4,619,867
4, 667, 060
4,713, 815
4, 774,160
4,867,068
59, 704
73,164
87,163
91, 344
97,454
105, 245
93, 305
104, 008
101, 658
100, 642
88,227
153, 276
94,831
104,494
103, 713
109, 049
127, 945
155, 218
126, 641
122,016
129,938
115,008
104,839
59,890
56, 693
48,392
44,403
46, 560
120, 349
64,619
56,102
54,719
52,378
68.4
63.2
54.3
46.7
40.7
36.4
77.5
51.0
46.0
42.1
45.5
1943: November.
December....
1,467
1,466
2, 580,481
2,617,431
44,804
43,647
57,915
76,677
24,373
21, 569
42.1
28.1
1944: January
February
March
April
May
June
July
August..
September
October
November
1,467
1,467
1,466
1,466
1,466
1,465
1,466
1,465
1,464
1,465
1,464
2,637,410
2,685,310
2, 709,897
2,737,017
2, 775,665
2,881, 276
2,907,974
2,934,647
2,961,860
3,000, 365
3,059, 556
37,076
44,144
53,883
57,045
59, 229
64,474
57,164
64, 400
63,489
61, 965
54,978
100,496
61, 545
68, 276
68, 549
72, 413
83,856
101, 500
82,105
79,126
85, 297
75,372
68,509
37, 548
36,182
30, 279
27, 676
25,969
79, 735
40,825
35, 570
33, 746
32,665
68.2
61.0
53.0
44.2
38.2
31.0
78.6
49.7
45.0
39.6
43.3
1943: November
December
975
981
1,546, 731
1, 565, 297
28,132
27, 326
32,108
41,819
18,764
16, 316
58.4
39.0
1944: January..
February
March..
April
May
June
July
August
September
October
November
984
986
986
987
993
996
997
996
996
997
1,581, 111
1,602,478
1,617, 971
1,637, 321
1,666, 943
1,617,971
1,711,893
1,732,413
1,752,015
1, 773,795
1,807,512
22,628
29, 020
33,280
34,299
38,225
33, 280
36,141
39,608
38,169
38,677
33, 249
52, 780
33,286
36, 218
35,164
36,636
36,218
53,718
44,536
42,890
44,641
39,636
36,330
22,342
20, 511
18,113
16, 727
20, 511
40,614
23,794
20, 532
20,973
19,713
68.8
67.1
56.6
51.5
45.7
56.6
75.6
53.4
47.9
47.0
49.7
1944: January.
February
March
___
April
May
June
July
August
September
October
November
FEDERAL
STATE
i Balance sheet items, formerly shown each month, now appear only in the
February, May, August and November issues of the REVIEW .
Mortgage Recording Trends
(Continued from p. 101)
gages of all other types of lenders, the average value of
mutual savings bank mortgages has increased. I t
now amounts to $3,925—about 7 percent more than
during the original period of this survey.
Life Insurance Companies
Insurance companies alone have sustained an overall loss in dollar volume of mortgages recorded during
the war. Their dollar volume has receded from
$206,000,000 in 1939 to $195,000,000 in the first three
quarters of last year, representing a decline from 8
percent of total national volume to 5.7 percent.
January 1945
Insurance companies' recordings were not as hard hit
as those of other mortgagees by the 1942 recession in
real-estate activity, dropping only 4.8 percent from
the previous year's volume. B u t in 1943, their
recordings declined 25.2 percent in dollar amount—
the greatest loss by any type of mortgagee. Last
year they were the only ones to show a drop—down
6.7 percent.
The explanation of this three-year decline in insurance company recordings is to be found in the type of
business that has been handled by these institutions.
For one thing, they have specialized in high-value
construction loans. Also, because of their widespread operations, insured mortgages have been
found particularly well adapted to their needs.
Therefore, the imposition of a ceiling on the price
level of new construction and the curtailment of FHA
Title I I insurance, have cut deeply into the lending
activity of insurance companies. In addition, these
institutions have shown greater interest in purchasing
mortgages than in originating them.
Because of the character of the business that
they handle, which has for the most part been
confined to metropolitan areas, life insurance company mortgages have always shown a higher average
value than those of other lenders. This is still true
in spite of the fact that they have declined somewhat ($73) over the five-year period of this survey.
They now amount to $4,991, more than $1,000 higher
than the second highest average—that shown by
mutual savings banks.
An optimistic interpretation of rising business
volume is a natural reaction. However, there would
seem to be grounds for some doubt as to whether the
increase in mortgage recordings during the past year
and a half would justify such conclusions. Although
private construction is still under stringent control
both as to quantity and quality, the acute housing
shortage and expanded war-time earnings have
stimulated purchases of many existing properties
at prices way above normal peacetime values:
Refinancing and portfolio raiding, which are decried
by responsible leaders in the mortgage-lending field,
must obviously be contributing to the high dollar
volume of mortgage recordings in the last few
years. The prevalence of high-percentage loans
based on appraisals, too often completely out of line
with the "stand u p " value of the properties being
financed, is another angle of the recent picture which
deserves serious consideration. All in all it can be
seen that the warnings being sounded against inflation have a substantial foundation in fact.
127
FEDERAL HOME LOAN BANK DISTRICTS
\Q0-
—
0
BOUNDARIES OF FEDERAL HOME LOAN BANK DISTRICTS
FEDERAL HOME LOAN BANK CITIES.
OFFICERS OF FEDERAL HOME LOAN BANKS
BOSTON
B.
CHICAGO
J . R O T H W E L L , C h a i r m a n ; E . H . W E E K S , Vice Chairman; W . H .
C. E . BROUGHTON, C h a i r m a n ; H . G . ZANDER, J R . , Vice Chairman; A. R .
N E A V E S , P r e s i d e n t ; H . N . F A U L K N E R , Vice P r e s i d e n t ; L . E . D O N O V A N ,
G A R D N E R , P r e s i d e n t ; J . P . D O M E I E R , Vice P r e s i d e n t ; L A U R E T T A Q U A M ,
S e c r e t a r y - T r e a s u r e r ; 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.
U N G A R O , Counsel.
N E W YORK
GEORGE
MACDONALD,
Chairman;
M.
D E S MOINES
F . V. D .
L L O Y D , Vice
N U G E N T F A L L O N , P r e s i d e n t ; R O B E R T G. C L A R K S O N , Vice
Chairman;
E . J . R U S S E L L , C h a i r m a n ; E . A. P U R D Y , Vice C h a i r m a n ; R . J . R I C H A R D -
President;
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 T r e a s -
D E N T O N C. LYON, Secretary; H . B . D I F F E N D E R F E R , Treasurer.
u r e r ; E M M E R T , J A M E S , N E E D H A M & L I N D G R E N , Counsel.
PITTSBURGH
LITTLE ROCK
E . T . T R I G G , C h a i r m a n ; C . S. T I P P E T T S , Vice C h a i r m a n ; R . H . R I C H -
ARDS, President; G. R . P A R K E R , Vice President; H . H . G A R B E R , Sec-
B.
H . W O O T E N , C h a i r m a n ; W . P . G U L L E Y , Vice C h a i r m a n ; H . D .
W A L L A C E , P r e s i d e n t ; J . C . C O N W A Y , Vice P r e s i d e n t ; R . T .
r e t a r y - T r e a s u r e r ; W I L L I A M S. B E N D E R , Counsel.
W l N S T O N - S ALEM
H.
TOPEKA
S. H A W O R T H , C h a i r m a n ; E . C . BALTZ, Vice Chairman; O. K . L A R O Q U E , President-Secretary; J o s . W . H O L T , Vice President-Treasurer.
W M . F . J A R D I N E , C h a i r m a n ; A. G. H A R T R O N F T , Vice C h a i r m a n ; C . A.
STERLING, President-Secretary; R . H . B U R T O N , Vice President-Treasurer; J O H N S. D E A N , General Counsel.
CINCINNATI
PORTLAND
H A R R Y S. K I S S E L L . C h a i r m a n ; W M . M E G R U E
B R O C K , Vice C h a i r m a n ;
W A L T E R D . S H U L T Z , P r e s i d e n t ; W . E . J U L I U S , Vice P r e s i d e n t - S e c r e t a r y ; , A.
L. MADDOX,
Treasurer;
TAFT,
PRYOR,
Secretary; W . F . T A R V I N , Treasurer.
STETTINIUS
&
B E N A. P E R H A M , C h a i r m a n ; H . R . G R A N T , Vice C h a i r m a n ; F . H .
JOHNSON,
HOLLISTER,
President-Secretary;
IRVING
BOGARDUS,
Vice
President-
Treasurer; Mrs. E . M . J E N N E S S , Assistant Secretary; V E R N E
General Counsel.
DUSEN-
B E R Y , Counsel.
INDIANAPOLIS
H . B . W E L L S , C h a i r m a n ; F . S. CANNON, Vice Chairman-Vice President;
L o s ANGELES
D.
G . D A V I S , C h a i r m a n ; C. A. C A R D E N , Vice C h a i r m a n ; C . E . B E R R Y ,
F R E D T . G R E E N E , P r e s i d e n t - S e c r e t a r y ; G. E . O H M A R T , Vice P r e s i d e n t -
Vice P r e s i d e n t ; F . C . N O O N , S e c r e t a r y - T r e a s u r e r ; H E L E N F R E D E R I C K S ,
T r e a s u r e r ; H A M M O N D , B U S C H M A N N , R O L L & A L E X A N D E R , Counsel.
Attorney.
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