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Vol. 13, No. 4 Washington, D. C. JANUARY l ^ t IN [THIS ISSUE Simplified Regulations for Home Construction Revised Procedure for Gl Loan Appraisals Savings and Loan Advisory Council Meeting A Management Survey on Savings Campaigns Part II Liquidation of U. S. Housing Corporation Th, REVIEW - Brief Simplified regulations (or home construction Action on three fronts late in December helped to p u t t h e Government's 1947 Housing P r o g r a m into immediate effect. T h e construction of new houses and a p a r t m e n t s is now governed by a simplified system of permits under which both veterans and non-veterans are eligible to build homes for their own occupancy, the p r i m a r y limitation being a m a x i m u m floor area of 1,500 square feet. In line writh t h e emphasis on rental housing, t h e Federal Housing Administration announced reduction of monthly carrying charges, which should stimulate construction of this t y p e a t lower rentals. Recent gains in building material production have made it possible to eliminate all priorities, and also to free distribution channels of restrictive regulations. [Page 99.] Revised procedure (or Gl loan appraisals By T. B. King, Director, Loan Guarantee Service, Veterans Administration Since J a n u a r y 2, t h e appraisers for GI loans where realty is involved have been selected by t h e Veterans Administration r a t h e r t h a n the lenders. This change provides added protection for t h e veteranborrower, the lender and t h e Government alike. Copies of all a p praisal reports will be on file to avoid duplication of appraisals on same p r o p e r t y for different lenders. Appraisal committees will be set up to eliminate variations in valuations for groups of houses similar in design and construction. F u r t h e r interpretation of the t e r m " reasonable v a l u e " has been made as it applies to new construction'and to existing dwellings. [Page 101.] Federal Savings and Loan Advisory Council meeting T h e Federal Savings and Loan Advisory Council m e t in Washington on December 11-12 to consider and m a k e recommendations on various m a t t e r s affecting the Federal H o m e Loan Banks and member institutions. Among their recommendations was one to dispense with the requirement of two appraisals on F H A loans. This has been accomplished by an a m e n d m e n t to the Rules and Regulations for the Federal Savings a n d Loan System. T h e Council also considered and made recommendations concerning the purchase of GI home loans by the Federal H o m e Loan Banks, a n d the establishment of s t a n d a r d s for setting up branch offices of Federal savings a n d loan associations. [Page 105.] A management survey on savings campaigns (Part II) A properly directed, continuous advertising program was found to be the most popular approach among associations covered in the R E V I E W ' S canvass of savings promotion methods. Usually, one or more of the following appeals were stressed—safety, return, or saving for a purpose. However, the responsibiJity for encouraging thrift for its own sake was also mentioned. Newspaper advertising was shown to be the most popular method, with small-to-medium size ads predominating. Radio ran a close second with a wide variety in the types of programs sponsored. One association pioneered in this field 20 years ago. [Page 107.] 726141—47- November highlights Primarily because of seasonal influences, minus signs were in the majorit}^ as new construction, m o r t gage lending and savings figures all showed lower volumes. Building permits for new privately financed nonfarm dwellings were down 21 percent to 46,500 units. This was substantially above the 1941 a n d 1945 N o v e m b e r totals. Nonfarm mortgages of $20,000 or less recorded b y all lenders dropped 14 percent from the "billion-dollar" m o n t h of October. The total of $869 million was still 55 percent above the same 1945 m o n t h . T h e decline of 17 percent in savings a n d loan lending brought the m o n t h ly volume ($271 million) to t h e lowest point since February. T h e net inflow of savings funds into all savings and loan associations aggregated $73 million which was 18 percent below October b u t ahead of the corresponding m o n t h in 1945. T h e October-November decline was in line with 1944 a n d 1945 experience b u t contrary to the seasonal t r e n d in prewar years. Share capital of all insured savings a n d loan associations passed the $6-billion m a r k . Construction costs for the standard house showed a 2-percent increase during the m o n t h . Wholesale building material prices have gained more rapidly than other industrial commodities. (See chart below.) L u m b e r prices j u m p e d 21 percent in 7 weeks. Industrial production during N o vember was maintained a t peak peacetime levels in spite of t h e coal strike. INDEX (No* 9,1946*IOO) 125 ! ! ] 1MB- ! j j WHOLESALE PRICES, . SINCE DECONTROL +-A IBS !*>' All Bldg. Materials^* -All Industrial^ Commodities-. 111 16 23 30 mmmmtt iiiiii*!is - 97 FEDERAL HOME LOAN BANK Contents Page Vol.13 55 No. 4 SIMPLIFIED REGULATIONS FOR H O M E CONSTRUCTION 99 REVISED PROCEDURE FOR Gl L O A N APPRAISALS, byT. B. King 101 FEDERAL S A V I N G S A N D L O A N A D V I S O R Y C O U N CIL MEETING 105 A JANUARY 1947 MANAGEMENT PAIGNS (Part I I ) SURVEY O N SAVINGS CAM107 L I Q U I D A T I O N OF U. S. H O U S I N G C O R P O R A T I O N . . The Federal Home Loan Bank Review is published monthly by the Federal Home Loan Bank Administration under the direction of a staff editorial committee. This committee is responsible for interpretations, opinions, summaries and other text, except that which appears in the form of official statements and signed articles. Communications concerning material which has been printed or which is desired for publication should be sent to the Editor of the Review, Federal Home Loan Bank Building, Washington 25, D. C • * * The Federal Home Loan Bank Administration assumes no responsibility for material obtained from sources other than itself or other instrumentalities of the Federal Government. • * * NATIONAL HOUSING AGENCY Raymond M. Foley, Administrator FEDERAL H O M E L O A N BANK ADMINISTRATION John H. Fahey, Commissioner 111 STATISTICAL D A T A New family dwelling units Building costs Savings and loan lending Mortgage recordings Gl lending F H A activity Federal Home Loan Banks Insured savings and loan associations Share investments and repurchases 122-123 123-124 124-125 125-126 126 126 126 127 127 SPECIAL FEATURES News notes Election and appointment of officers and directors Amendments to rules and regulations Worth repeating Monthly survey Directory changes of member, Federal and insured institutions 1 €6 112 114 115 117 121 * Contents of this publication are not copyrighted * SUBSCRIPTION P R I C E OF R E V I E W . — A copy of the REVIEW is sent to each member and insured institution w i t h o u t charge. To others the a n n u a l subscription price, which covers the cost of paper and printing, is $ 1 . Single copies will be sold a t 10 cents. Outside of the United States, Canada, Mexico, and the insular possessions, subscription price is $1.60 ; single copies, 15 cents. Subscriptions and orders for individual copies should be sent w i t h remittances to the Superintendent of Documents, Government Printing Office, Washington 25, D. C. APPROVED BY THE BUREAU OF THE BUDGET 98 Federal Home Loan Bank Review SIMPLIFIED REGULATIONS FOR HOME CONSTRUCTION A simplified system of permits has been established to regulate the building of new homes and apartments. Limitations on physical size have replaced price ceilings. F H A regulations governing rental properties have been eased, to list only a few of the recent changes in regulations for home construction. Permits for new construction Only four conditions are attached to the granting of a permit for the construction of new dwellings, with a fifth condition—rent ceilings—applicable to housing to be rented: (1) The dwellings must be suitable and intended for year-round occupancy. (2) The total floor area of the dwelling, measured to the outside of exterior walls (but not including basements and unfinished attics, open porches, terraces and garages) may not exceed 1,500 square feet. (3) Only the number of fixtures normally used in equipping one bathroom may be used. (4) Builders of dwellings for sale are required to hold them for sale to veterans for a minimum of 60 days after completion; rental properties must be held 30 days for veterans' preference. (5) The rent to be charged for new dwellings or apartments may not average more than $80 per month per unit in any one project. Charges for services, not exceeding $3 a room per month, may be added to this ceiling if approved by the FHA. Applications for a construction permit may be made by either a veteran or a non-veteran who wishes to build a house for his own occupancy; or by contractors if they are erecting dwellings to which veterans will be given preference in selling or renting. A non-veteran who wishes to construct a two-or-more family residence may reserve one unit for personal occupancy as owner and thus be eligible for a construction permit. In addition, permits may be obtained for the rebuilding or repairing of dwellings destroyed by fire, flood, tornado or other disaster; for repairs or alterations to make a house habitable or to provide space for veterans or members of the applicant's immediate family; by educational institutions or public organizations wishing to provide housing for student veterans; and for experimental housing approved by the Technical Office of the NHA. NEW HOUSING HEADS SWORN IN—Federal Judge A m brose O'Connell (1) administers the o a t h to F r a n k R. Creedon, Housing Expediter, (c) and R a y m o n d M. Foley, National Housing Administrator (r). • A D M I N I S T R A T I V E actions to supplement the 1947 Housing Program announced by the President early in December followed in rapid succession during the closing days of last year. Effective December 24, the H H priority system was replaced by a simple procedure for the issuance of permits by the Federal Housing Administration for the building of all new homes and apartments. In line with the added emphasis on rental housing, FHA made public a number of changes in its regulations which brought about a reduction in monthly carrying charges on the financing of new multipleunit housing projects to make possible lower rentals. These actions were followed at the end of the month by a number of orders by the Office of Temporary Controls relaxing regulations on the distribution of building materials. All these moves were within the framework of the Government's policy of relaxing controls as rapidly as the production of building materials permits. January 1947 99 Applications for permits are made to the state or district offices of the Federal Housing Administration, except in the case of applications by educational institutions and public organizations which should be made to the Federal Public Housing Authority, and for experimental houses which should be made to the NHA Technical Office. The new Housing Permit Regulation also applies to alterations and repairs to dwellings if the cost exceeds the $400 small-job exemption of V H P - 1 . If additional rooms are to be added to a dwelling to house veterans or members of the applicant's family, the estimated construction costs may not exceed $1,500 per person additionally housed. The new permit system does not apply to the manufacturers of prefabricated houses. However, a permit will be required when a prefabricated house is erected. The issuance of H H priorities ceased when the new permit system was put into effect. H H priorities previously issued will remain valid for construction currently under way and must be honored by dealers and others even though applied to any purchase orders placed after December 24. The conditions attached to the H H priorities when issued, such as veterans' preference, the $10,000-sales ceiling and the $80-rent ceiling continue in effect for all construction which had been begun before the permit system was inaugurated. Changes in F H A financing In a move to stimulate the production of rental housing for veterans, the FHA has announced a reduction in the monthly carrying charges which in turn is believed will bring about lower rentals. The amortization rate on mortgages insured under Section 608 of Title VI of the National Housing Act was reduced from 2 percent to 1}'2 percent of the original face amount of the mortgage. This has the effect of lengthening the maturity of the loan approximately 5 years, to 32 years and 7 months. The reduction in the monthly principal payment on the mortgage will enable the mortgagor to rent dwelling units at a lower monthly rate. In addition, the F H A has broadened eligibility standards for the insurance of mortgages covering veterans' housing under Title VI. This extends the insurance feature to certain types of construction and architectural design which were previously not eligible. Emphasis has been placed on small rental structures. 100 "Set asides"—set aside On still another front of the housing scene, the Office of Temporary Controls moved in the direction of simplifying the distribution of materials for home construction. Effective January 1, building material dealers were no longer required to "set-aside" specified quantities of scarce items and hold them for sale to fill only priority orders. The dealers, however, are still required to honor outstanding priorities as they are presented. These changes were accomplished by amendment of Schedule B of Priorities Regulation 33 which controlled distributors' handling of H H and other rated orders for most building materials, with the exception of lumber and lumber products. Lumber and lumber products, which were not covered by the above changes, received similar treatment by amendments to Order L-359. In addition to removing the "set-aside" provisions for all except shop lumber and hardwood flooring, revisions were made in controls which restricted normal lumber production and distribution. CPA's lumber division pointed out that although these materials were in freer supply now than they were when controls were first imposed, requirements still exceed supply and Order L-359 was being retained to assure that rated orders for housing as well as those for other purposes would be honored. Changes meet complaints In testifying before the Small Business Committee of the Senate during December, Frank R. Creedon, the new Housing Expediter, pointed out that the controls which had been discontinued were those about which most of the complaints had centered. The elimination of price ceilings, he said, met the objection of builders who found it difficult, especially in high-priced areas, to build in the present cost market under the $10,000price ceilings. The current rate of production of building materials justified the removal of restrictions on the distribution of materials by producers and dealers, he stated. Mr. Creedon pointed to the fact that the home building industry had said that removal of these controls was necessary so it could build more houses and complete them faster. " I t is only by adding to the over-all housing supply that we can (Continued on p. 105) Federal Home Loan Bank Review REVISED PROCEDURE FOR APPRAISALS Gl LOAN The Veterans Administration has returned to the practice of specifically designating the appraisers to pass on the "reasonable value" of properties on which Gl loan applications are being filed. This change increases V A supervision over the appraisal procedure, adding to the protection for the veteran-borrower, the lender and the Government alike. By T. B. KING, Director, Loan Guarantee Service, Veterans Administration lender has selected the appraiser to establish the "reasonable value" of properties being purchased or constructed with the proceeds of a Gl loan. These changes were adopted to facilitate administration of the legal provisions designed to protect veterans against over-priced property, particularly the section requiring an appraisal of "reasonable value" by a VA-designated appraiser. The procedure will not delay the handling of loan applications, and at the same time, it will provide additional protection for the mortgage lender and the Government as well as the veteran-borrower. How the system will work VA Loan Guarantee Notice No. 122, issued on December 20, 1946, explains in detail the operation of the new plan. Lenders were notified that the panel of designated appraisers was withdrawn effective January 1, 1947; and that the designation of appraisers in all cases where realty is involved would, beginning January 2, 1947, be made by the local Loan Guaranty Officer upon the specific request of the lender in connection with each individual loan. This did not affect outstanding assignments made by lenders from the panel prior to January 1, 1947. January 1947 Requests by lenders for the assignment of an appraiser may be made by a simple letter, in duplicate, giving merely the name of the veteran, the location and identity of the property (including the street address where there is one). A separate letter should be filed for each appraisal requested. In emergencies, the lender may telegraph or telephone his request, and the Loan Guaranty Officer will respond using the same means of communication if reply by ordinary mail will not suffice. Every effort is being made to assure that all requests will be handled promptly. One copy of all requests received by mail will be sent back by return mail with the name and address of the designated appraiser and one alternate typed on it. The appraiser named as principal is to be used, unless he is unavailable or refuses to act. Use of the alternate will in no case invalidate the appraisal, as justification therefor wrill be presumed. Appraisal reports will be on file Under the new regulations, designated appraisers are required to forward a copy of the appraisal report (Form 1803 or 1823-Farm) direct to the Loan Guaranty Officer concurrently with the delivery of the original appraisal report to the lending institution. This will provide a file of all appraisals made, whether the loan is later approved or disapproved. Each appraisal report will be carefully reviewed, many by actual site inspections, and the value so established will stand as the "reasonable value" estimate for purposes of guaranteeing a loan. This will eliminate duplication of appraisals on the same property for different lenders. When a lender asks the VA office to designate an appraiser for a property which already has been appraised satisfactorily, he will 101 be given the previous report and the veteran will not be charged an appraisal fee. Evaluating on a project basis Another detail of procedure will tend to eliminate variations in valuations for similar houses. This has been common when several appraisers were called upon individually to determine the "reasonable value" of certain units in a group of houses similar in design and construction. Hereafter, where five or more substantially identical houses are either (a) already built, (b) in process of construction, or (c) proposed, and where it is contemplated that they may eventually be acquired with the proceeds of GI loans, the Loan Guaranty Officer will appoint a committee of three to five designated appraisers to prepare a consolidated appraisal of the value of each type of property involved. Either a lender, or a contractor or builder may make the original request of the Loan Guaranty Officer for the appointment of an appraisal committee to establish the "reasonable value" on such projects. The estimate of value so established will obtain for such a period as the Loan Guaranty Officer feels is justified. Should cost factors of labor or materials change, the lenders, owners or contractors interested in such a project may submit substantiation of increases and the committee will be asked to review and, if necessary, to adjust the estimates which had originally been made on the projects. Requests for appraisal reports to accompany individual applications for loans on properties which have been evaluated by a committee under these arrangements will be referred to a member of the committee for the preparation of the necessary Form 1803. Interpretation of "reasonable value" In separate letters of instruction to appraisers in connection with Loan Guarantee Notice No. 122, the Veterans Administration, in response to many requests, made a further interpretation of the term "reasonable value" which is also of interest to lending institutions making the GI loans. This further explanation was considered necessary because of the fact that "reasonable value" is not identical with the so-called longterm value for use and investment purposes. The determination of "reasonable value" is not for 102 these purposes and hence is not a long-term valuation. "There can be no doubt," read these instructions in part, "it was the intention of Congress to place the veteran recently returned from service in a competitive position with the non-veteran purchaser. But Congress intended that this competitive situation should maintain only where the purchase price was determined by a competent appraiser to be not in excess of 'reasonable v a l u e / On that point Congress has said in effect to the Veterans Administration and in turn to the designated appraiser, 'we are asking you not to determine what is the value in your generally accepted long-term definition, but what is the price that is fair for a veteran to pay in light of conditions which are recognized as unusual.' " I t is the intention of the Loan Guarantee Service to keep the veteran in the competitive market, but to resist tendencies to use veterans' loans to break through existing levels prevalent in a community and accelerate the trend toward progressively higher local price levels. " T o properly interpret this intent, particularly on existing dwellings, it is necessary for the appraiser to be fully conversant with sales in his territory and not only with the actual consideration but the factors which led up to the sales. If certain sales were made at prices above the general level or under conditions which reveal unfamiliarity with the market, they should be disregarded as not indicative of 'reasonable value.' He should carefully develop his estimated valuation based primarily on the amount necessary to reproduce at today's costs and give proper consideration to the items of depreciation, physical, functional and economic and his cost of construction less those items of depreciation plus present market value of the land should be his approximate upper limit of value. If the appraiser finds that his analysis of comparable sales exceeds the depreciated value, he should re-analyze the factors leading to each conclusion, but in no event should his estimate oj 'reasonable value' vary materially from the current cost of reproduction less depreciation plus land value." In appraising new construction, " t h e appraiser should maintain or have available current cost records—he should so inform himself through various sources of material, through knowledge Federal Home Loan Bank Review A Point of Policy on Gl Loans • R E C E N T L Y the Veterans Administration has received reports that some lending institutions are operating under a fixed rule of policy to accept under the GI loan guarantee program only those loans financing the purchase of property on which the veteran is making a cash down payment of 5 or 10, percent. VA officials have pointed out that a lender's insistence upon such a requirement in all cases squarely controverts the basic principle to which the existing legislation is tied, namely, that the guarantee should stand in the place of the usual cash equity of the purchaser. Typical of VA comment on this point is the following statement made recently by Mr. King before a group of mortgage lenders: " . . . I know the salutary effects of having a borrower build up an equity out of his own money. But I merely want to direct the of hourly wage scales so that his basis of computation, be it square foot or cubic foot, is a factual conclusion based on a careful estimate of in-place unit costs, and not merely an opinion based upon comparison with old rates, fortified only by a guess on the part of the appraiser as to the increase in building costs. The square foot or cubic foot rate should finally represent the cost plus a fair profit which the average competent, experienced contractor in the community would consider satisfactory. There is no compulsion to establish a ' reasonable value' based on the costs of a specific contractor where his costs are above average, merely because he can demonstrate that his costs are actually higher. When the appraiser has computed the reproduction costs and estimated the land value, he should give consideration to the suitability to site, room arrangement and to the acceptability of the architecture and if necessary make proper deduction for the loss in value due to such deficiencies." Evolution of Gl loan regulations The original regulations governing the guaranty of home loans under the Servicemen's ReadjustJanuary 1947 attention of those lenders who are adopting that practice (to require a cash down payment) to the fact that the fundamental purpose of the Act was to permit veterans to obtain 100-percent financing covering their purchase or construction of homes. If they can not get loans without putting down cash, the Act is not achieving its purpose—and you invite a change in legislation that will accomplish that purpose. " I n any case where a lender thinks a cash payment is necessary from a security standpoint—particularly in the case of loans under $10,000—then that would seem to pretty clearly establish the fact the particular property is overpriced and it would be a greater service to the veteran not to make the loan. Let's get squarely across to all concerned that the veteran's loan is not intended as a convenient conduit through which the sale of overpriced houses can be financed." ment Act were issued in October 1944. During the months that followed, much of the criticism by lending institutions of the guaranty program centered on the complexity of the forms required and on delays in the operation of the prescribed procedure. One feature of that procedure which provoked much comment was the requirement that the local VA office designate the appraiser for each loan application. I n an effort to counteract the influence of these criticisms and their deterring effect on lender participation in the program, the VA prepared a " streamlined" guaranty procedure, which was put into effect in October 1945, establishing a panel of approved appraisers for each locality. This panel was supplied to each participating lender in that area and the lender was empowered to select any appraiser listed on the panel for evaluating each property to be purchased or constructed with the proceeds of a guaranteed loan. While this innovation did unquestionably effect some saving in time, it is likely that revision of the procedures for determining the eligibility of the veteran and later the issuance of more simplified forms played more important roles in speeding up 103 the time which is needed to process these loan applications. Changes in the basic law Also, not to be overlooked is the importance of extensive changes in the underlying law which went into effect near the end of 1945. (Public Law 268, 79th Congress; approved by the President on December 28, 1945.) There were three liberalizing features of the new law which bore particularly on the significance of the VA appraisal function under the guaranty program. The first of these was the intervention of the "automatic loan." This divested the VA of the power to apply certain safeguards of which it could avail itself under the original approval system. The second was the elimination of the word "normal" from the phrase "reasonable normal value" which appeared in Section 501 (3) of the original Act. T h a t phrasing had projected widespread discussion. I t still had proved itself virtually definition-proof when Congress settled outstanding contention by deleting the word "normal" from the text of the law. This change was doubtless remedial, and necessary in view of the inflation that had already spiraled the real estate market to a level far beyond prices which jibed with any previous concept of the word "normal." And, third, in recognition of the fact that current levels had rendered the original maximum guaranty of $2,000 inadequate, that limit was raised to $4,000 for real estate loans. Appraisals a key point The only leash provided by the law to hold these forces in hand was the finding of "reasonable value" made by the appraiser designated by the VA and selected by the lender from the panel. The leash became badly frayed in spots as the volume of GI lending rolled onward from month to month at greatly accelerated speed. The great majority of lending institutions saw the necessity for maintaining this leash well in hand and cooperated by refusing to make loans when they were convinced that the finding of the VA appraiser was excessive in terms of "reasonable value" even if the letter of the law had been fulfilled. In other instances—fortunately small in com104 parative volume—it proved to be entirely feasible to secure a VA appraisal that was "tailor-made" to meet an asking price. Some of these instances, the VA feels, were attributable to a lack of perspective or realization of the proper significance of the VA appraisal. Some were due to the incompetence of the VA appraiser; some stemmed from a misguided intention to be obliging or to "help" the veteran; and some had a distinct aura of collusion or fraud. As a consequence of these findings, it was necessary to remove a considerable number of appraisers from existing panels. In a further effort to strengthen appraisal procedures, a directive was issued in September 1946 * which precluded VA appraisers from making appraisals at the request of anyone other than the prospective lender. The making of appraisals at the request of veterans, builders, owners, real estate brokers or salesmen was prohibited. The only exception to this prohibition was the procedure inaugurated in July 1945 2 which permitted either contractor, builder or lender to request a special committee of appraisers, appointed by the Loan Guaranty Officer, to establish the "reasonable value" on a group of properties in advance of actual construction or completion. In spite of these changes, VA continued to receive reports of the tendency for some lenders to use exclusively the services of certain "obliging" appraisers who were most amenable to turning in a high appraisal where necessary to meet the asking price. Subsequently, after extended consultation with various segments of the mortgage lending industry, it was decided to revert to a more direct control of appraisal assignment by abolishing the panel procedure and resuming the practice of having the Loan Guaranty Officer designate an individual appraiser at the request of the prospective lender in each case. This change took effect on January 1, 1947, and all existing panels were abolished on that date. Concurrently with the adoption of direct control of appraisal assignments by the Loan Guaranty Officer, VA has approved the establishment of an Appraisal Section in all Branch and Regional offices. Regional educational conferences with groups of designated appraisers will promote a uniform interpretation of policies. 1 2 Loan Guarantee Notice No. 105, dated September 25, 1946. Loan Guarantee Notice No. 10, dated July 20, 1945. Federal Home Loan Bank Review Decontrol brings changes in premium payment plans Premium payment regulations covering gypsum paper liner and Northern and Southern hardwood flooring were terminated at the end of December by action of the Office of the Housing Expediter. These actions were taken following the decontrol of building material prices when most producers increased their prices sufficiently to secure an adequate supply without premiums. Gypsum liner was at one time the principal bottleneck in the production of gypsum board and lath. Average monthly shipments prior to the incentive program which became effective last June were 6,400 tons. By October, monthly shipments had risen to about 10,500 tons, enough paper liner to permit gypsum board and lath production to reach an alltime high. The two plans for hardwood flooring became effective August 1. Within three months, monthly production rates rose approximately 50 percent above the average for the first six months of the year. At the same time, announcement was made that EPPR 5, covering convector radiators, would be extended through January. This plan, which was instituted July 1, has helped boost monthly output approximately 150 percent, according to Housing Expediter Creedon. The one-month extension will give the Industry Advisory Committee time to decide whether price decontrol will permit the discontinuance of these incentive payments in advance of the six-month period of further operation previously recommended. with its attendant prospect of widespread unemployment, the year's total would have topped $8 billion. Over-all sales exceeded redemptions and maturities by a billion dollars. Over half the aggregate volume ($4.4 billion) represented sales of E bonds. This program, the Savings P>ond ' Division of the Treasury pointed out, added a billion dollars to cash available in 1946 to pay off maturing securities, as well as acting "as a brake upon inflationary expansion of credit." Fifth guaranteed market contract signed The fifth guaranteed market contract for factory-built homes was signed with the General Panel Corporation, Los Angeles, Calif., by the Reconstruction Finance Corporation early in December. Under this contract, 8,500 all-plywood houses are to be produced by the end of 1947. Scheduled production calls for 1,000 dwellings in the first quarter of this year and 2,500 in each of the remaining three quarters. 106 Hundreds of privately owned properties which were leased by the Government during the war and remodeled to provide additional housing for war workers are now being returned to their owners by the FPHA. Of the 8,816 properties included in this conversion program, more than 1,200 leases had been approved for termination by November 30. Seventy percent of these terminations were negotiated during the past five months. When leases are terminated, the property owners purchase the unexpired portion of the lease and agree that veterans will be given preference in filling vacancies as they occur. The rights of present tenants under OPA regulations on rents and occupancy also must be respected when the property reverts to the owner. It has been the FPHA policy to return these homes before expiration of the lease, under terms that protect the Government's financial interest. PROGRESS OF THE VEHP—NOVEMBER 30, 1946 946,900 units started account for 79 percent of 1946 goal of 1,200,000 Units started Program component Total 1 New permanent 2 Conventional 34 Factory-built 5 Temporary re-use 6 Conversions Trailers 7 Savings bond sales exceeded $7 billion U. S. savings bonds totaling approximately $7.4 billion were purchased by the American public in 1946. According to the Treasury, if it had not been for the coal strike Government-leased homes returned to owners _ Units completed 946, 900 584,300 630, 300 395, 800 J 599, 100 31,200 219, 500 55, 200 41, 900 91,900 54, 700 41, 900 1 2 J 1 November data preliminary. Includes faetory-built units; breakdown of conventional and factory-built completions not available. 3 Adjusted to exclude factory-built units; includes approximately 6,500 permanent units financed by New York State. * Factory shipments. 5 Family-equivalent units financed by Federal and non-Federal funds. • Estimates, adjusted for lag and attrition. 7 Factory shipments. Federal Home Loan Bank Review A MANAGEMENT SURVEY ON SAVINGS CAMPAIGNS—Part II The REVIEW'S canvass of savings promotion campaigns brought out many effective advertising techniques. Supplementing last month's report, this article discusses various newspaper and radio programs which have proved successful. • T H A T this is indeed the age of advertising is obviously a fundamental tenet of up-to-date savings and loan management, judging from the responses received to the R E V I E W ' S inquiries about the savings campaigns of more than 50 widely scattered institutions. The old adage about the world beating a path to the door of the man who makes a superior mousetrap is outmoded unless the world knows of the existence and advantages of the product offered. The associations selected for study were chosen on the basis of good share capital records and the replies indicated that their success is the result of definite and, in most cases, aggressive efforts to make themselves known and recognized as sound investment media. Last month the R E V I E W reported on some of the more intangible aspects of business promotion—sou*id public relations, community good will, civic activity and various other devices of business promotion designed to make and keep satisfied customers. As important as these things are, in practically every instance they are being supplemented by numerous other appeals to the investing public. The informal nature of the R E V I E W ' S inquiry did not produce any over-all statistics on the dollar volume of advertising or its relation to income or assets. The most recent research done by the FHLBA in this field appeared in the "Third Annual ' H u n t for Facts' " (based on 1939 data). 1 At that time the average expenditure made by the 1,222 reporting member saviugs and loan associations for business promotion amounted to $1,885, or 2.48 percent of gross operating income and one-eighth of 1 percent of total assets. Because of the expansion in the savings and loan industry since 1939, these same percentages applied to 1946 figures would yield a considerably greater dollar expenditure. Also, it is probable that the increasing emphasis on business promoiSee F H L B REVIEW, Apri], May, June 1940. January 1947 tion might mean that these percentages are now somewhat higher. However, it is not just the amount of money spent that produces results, but rather a matter of making expenditures count. As the executive of one institution said: "Our advertising budget is only $600 a month, and our nearest competitor, who does not get better results than we, has a budget of three times that amount." A widespread recognition of the problem of making the advertising dollar pay off by properly directed appeals was evident in the letters received in the R E V I E W ' S canvass. However, the varying emphasis placed on definite market analysis provides some significant information on operational methods. The thought behind this approach was expressed in this way by an Ohio association executive: " W e believe that the item of greatest importance in insuring results from whatever advertising is done is the appraisal of the state of mind of the investing public . . . That was the basis for the program initiated by our association and probably more than any other one factor has been responsible for whatever success we have had." A rather general acceptance of this principle was indicated by the numerous replies which stressed the importance of keying advertising to the times. Many associations, without indicating any specifically studied approach, mentioned directing their savings campaigns along lines of current public interest. Study of savings markets One of the more detailed analyses undertaken was the study made by a New York association. Its business extension activities were preceded by an analysis of the institution's share structure to determine the identity and earning power of its members as well as their residence and occupation. In this way, the association's trading area was established, thus permitting the elimination of 107 YOU'RE not gambling WHEN YOU SAVE OR INVEST HERE FIRST SAVINGS AND LOAN ASSOCIATION 507M«„„„. HOME FOLKS r • *w b u t t o n s * , ' b u t t * " * *> m ' ... Dividends Paid on All Saving. G. I. Homes Loans ' FHA Home Loans I Mutual Home Loans Mutual Building Free Advice-Coun»el' & Loan Association Monthly Tax Payment Service Jefferson St., Near Center (N=?t l o Courthou»e) Bay City ^Z'S'i.'^".'»«" "blind spots" within the area and the concentration on the "right people"—that is, those who had demonstrated a disposition to do business with the association. As the managing officer expressed the philosophy behind this approach: " W e know that it is harder to pump water upgrade than to accelerate its flow downhill." This-trading area was then broken down into the thrift market area available therein—by estimating the annual savings potential of each family after deducting taxes and consumer expenditures from their total income. The campaign which followed was described in this way: We can probably compare our business extension activities with military strategy a n d tactics. The cooperative advertising effort of o u r Brooklyn Group, consisting of large size advertisements in t h e New York Daily News, Brooklyn Section, was our air force t h a t softened our trading area through heavy " b o m - 108 b a r d m e n t . " Then our house-to-house distribution of folders, written in simple English, constituted t h e light artillery activities. For infantry action, we used a premium-solicitation campaign. This campaign resulted in share credits approximating t w o million dollars, a n d t h e b y products thereof a m o u n t e d to a s u m in excess of three million dollars. We then used direct mail t o solidify our position, employing three sets of letters during t h e first year of the life of t h e account. It was interesting for us t o learn t h a t t h e m o r t a l i t y rate in our premium-solicited accounts was smaller t h a n in t h e normal accounts. Moreover, t h e premium-solicited customers appeared t o be solidly sold on t h e principles of savings a n d loan . . . Directing the appeal In the matter of directing the appeal there was a wide variety of approaches. One western association reported that its program was concentrated on selling the advantages of that particular instiFederal Home Loan Bank Review tution to people who were already thrift-minded, not in trying to woo current non-savers. Reasons for this were backed up as follows: "Our average initial deposits have more than doubled since we have directed our appeal to 'ready-made' savers rather than to people who should save." On the other hand, a Kansas association mentioned some recent copy it had prepared "especially to try to bring money into the association from people who have been speculating and losing their funds in the stock market." A broader approach to savings promotion than either of the above was represented by the belief that the instillation of the principle of thrift is a public responsibility of the savings and loan industry. This point of view was expressed by the managing officer of a large institution in New York City who said : While I think t h a t the financing of homes is a service of sound and i m p o r t a n t social implications, I think t h a t there is nothing more basic in the life of every citizen and of every family t h a n a sound savings program. I think t h a t our social responsibilities in t h a t direction are even greater, by virtue of t h e larger number of persons affected, t h a n our service in financing home ownership . . . . . . Our advertising, business development and promotion program is based on the philosophy t h a t every man, woman and child in this great communit y . . . is a potential savings customer. To make t h e m acquainted with our particular facilities and to make our facilities conveniently available to t h e m is our p r i m a r y mission. For the most part, however, appeals were of two kinds, or a combination of them. They were based on safety and return offered by the association or on the advantages of saving for a cause— a home, a protected old age, or a college education for the children. I t was interesting to note that, in contrast to the wartime motif, comparatively little stress was laid on savings as an antidote to inflation. A few associations polled employed regular advertising agencies to handle their promotional campaigns and were enthusiastic about this method. The managing officer of the largest Federal said, " W e are entirely selfish in doing this although the net cost to us is very small since practically all of our advertising is commissionable. We refer to our use of an agency for the reason that we believe that there is one subject on which the average successful business man thinks that January 1947 he is as well informed as anyone else—namely, on the subject of advertising. We doubt very much that this is so and we have been well pleased with the services of our agency." Although the employment of advertising counsel is probably more practicable for larger associations, it was found that this practice was not entirely confined to the highest-asset group. Regardless of how an advertising campaign was conceived or carried out, and no matter what media were selected to do the job, the one fact stressed by practically every official was the absolute necessity of keeping everlastingly at it. As one managing officer said, "We have no proven formula for getting and keeping investments. We only know it didn't all just happen. I t takes a lot of plugging." Newspaper advertising Among the various media used—and this survey showed that they cover a wide range—newspaper advertising enjoyed the widest popularity. However, few relied on it entirely and some, who felt that it was ordinarily effective, said that present high rates made some other forms of advertising better buys for the money right now. Small-to-medium size ads were preferred by the majority of associations—the accompanying illustration giving a pretty good cross-section of the average in this respect. However, the managing officer of a Kansas Federal said, "Frankly our form of advertising . . . is different from any stereotyped financial institution. We are of the opinion that if full page ads sell merchandise, they can do the same for our savings and loan program." Still another technique was indicated by a Pennsylvania association: "We have for many, many years been consistent advertisers in our local newspaper, running one or two large ads each week and on other off days, a small rate holder." Continuity of advertising, which was considered of great importance, to some associations meant daily newspaper coverage, while others felt that from one to three times a week was sufficient. One school of thought was represented by the comment of an Ohio executive who said, " . . . we try to step in on the same days; we try to keep our advertising on the same page and in the same position. We cannot always accomplish this 109 because the newspapers are fussy and object to giving preference to anyone, but we secure pretty good coverage by sort of making a nuisance of ourselves." A number of associations have found that the same, or substantially the same, ad repeated over a period of time was more effective than frequent changes of copy. This, however, was not a universal opinion. The R E V I E W ' S survey revealed that frequent advertising use is made of dividend announcements and financial statements, although in most instances these were run in connection with other items of continuous coverage. Most newspaper advertising done by the associations covered in this survey appears in the regular local dailies or weeklies, although some associations supplement this by using class or neighborhood newspapers, shopping news, legal journals and such monthly publications as those of the chamber of commerce or athletic club. The use of radio As might be expected, radio now plays a big part in savings and loan advertising programs. Nor is this entirely a recent development. One southern association has been using this medium for nearly 21 years and several reported that they had been regular radio advertisers for 8 or 9 years. This medium offers a variety of ways for keeping the name of an association before the public. The simplest method, referred to Jby one of its users as a "snort," is the commercial announcement interspersed between programs. While this form is used by a number of associations, the majority of radio advertisers feel that a tie-up with a longer, complete program is more effective. The present-day popularity of newscasters and commentators makes sponsorship of such programs quite effective, according to reports from numerous managing officers. Several associations present the programs of nationally known broadcasters of this type, while others prefer local news announcers. Rather than advertising through the sponsorship of general programs, some associations have found that their own programs were more effective. Three reporting associations present talks by their managing officers, outlining the institutions' activities. One of these programs spe110 cifically invites inquiries which are answered on the next broadcast. The following excerpt from the response made by an association in the northwest reveals an unusual program of more than passing interest to other executives: During the past eight years we have sponsored a rather unusual local radio program that we think has done more for us than any other kind of advertising that we have ever done. This radio program is thirty minutes in length and is called "Meet Your Neighbor." It is made up of interviews with either local people or people from out of our city who have something interesting to talk about that will be listened to and liked by the radio audience. We have our usual commercials on this program and we also have one of our officers give a three or four minute talk during the program discussing some interesting part of our business that the public should know about. We find that this radio program has brought us an unusual amount of business on loans and also on savings in the entire territory that we operate in. I n addition to regularity of radio advertising which is considered equally as important as it is in newspapers, the matter of timing plays a vital role. Evening broadcasts—around the dinner hour or a 10-o'clock spot—were found to be particularly profitable. Also, noontime newscasts which caught the luncheon restaurant trade have proved effective according to a number of reporting institutions. As a means of testing the drawing power of radio advertising, some associations have made a practice of offering a free good will item to interested listeners. A New York association reports "Whenever we announce a special folder or anything of that kind, we are swamped with inquiries/' Several other associations have used a similar method to prove to themselves the value of radio advertising. N H A and Housing Expediter Functions Separated • BY Executive Order of the President on January 11, the functions of the National Housing Administrator and the functions of the Housing Expediter were ofBcially segregated. All of the powers, functions and duties of the Housing Expediter under the Veterans Emergency Housing Act of 1946 will now be exercised by the Housing Expediter as an independent officer of the Government. Federal Home Loan Bank Review LIQUIDATION OF UNITED STATES HOUSING CORPORATION • G O V E R N M E N T housing headaches following World War I were recounted in a recent report by John H. Fahey, Federal Home Loan Bank Commissioner, to Congress on the final liquidation of the United States Housing Corporation, created 28 years ago. All the property of the Housing Corporation had been disposed of and the last dollar recovered turned into the United States Treasury. Most of the assets of the Corporation were sold in the years following the first World War, the report explained, at a loss of approximately $34,612,000 of its original capital of $66,500,000. This loss was reduced to $33,911,000 by the final liquidation. For more than 20 years left-over houses of the Corporation were involved in long drawn-out litigation. As a result of legal complications, virtually all of the dwellings were occupied practically rent-free. Finally in 1942 the United States Housing Corporation was transferred by the President to the Federal Home Loan Bank Administration for disposal of its few remaining assets. It was felt that since the Home Owners' Loan Corporation had more experience in renting and selling houses than any other Government or private agency, it could be utilized to clear up the remaining tangles and to dispose of the properties promptly. The report discloses that the Federal Home Loan Bank Administration has been able to turn over to the Treasury $1,322,521, representing net cash receipts from the liquidation, of which $701,092 was income in excess of the book value assigned to the Corporation's properties by the General Accounting Office when the Bank Administration took over the disposal task. Nearly $400,000 of income came from rental collections. The amount received by the Treasury was net, after all selling, reconditioning and incidental expenses had been paid. "The United States Housing Corporation was created by Congress in 1918 to provide war housing," said Mr. Fahey. "By 1921 the great bulk of its properties had been disposed of. But final liquidation of the agency was held up by a chain January 1947 of legal entanglements, chiefly in Philadelphia, which it was necessary to clear up before the last of the Corporation's houses and lots could be sold." When taken over by the Federal Home Loan Bank Administration, the properties in which the Housing Corporation held a mortgage, sales contract or other interest consisted of 458 houses and 61 lots in nine cities, including some 400 houses in Philadelphia. Few of the houses were then marketable, since the Corporation in most cases did not have possession and the properties were subject to tax claims in excess of the values. Some of the houses were not even habitable. For over 20 years the Philadelphia properties had been the center of legal disputes between city and school taxing authorities, contract purchasers of the houses and the Corporation. When the Bank Administration was brought into the picture four years ago, the Department of Justice was pressing 384 separate court actions which were pending to regain possession of about 400 properties. As a group the purchasers of the houses had defaulted on principal and interest payments and refused to pay taxes, even after the United States Supreme Court had held that purchasers, and not the Housing Corporation, were responsible for taxes. Most of these cases were settled by stipulations under which the defendants were to pay a rental and receive an option to purchase. To enforce the Corporation's position that the accumulated tax claims against it—amounting to more than $1,000,000—were invalid, court action was filed by the Department of Justice against the city of Philadelphia and its school district and receiver of taxes. A favorable decison was affirmed on appeal. Through a stipulation agreement with the city and a consent decree, the tax liens were canceled. Special assessment claims were also settled. Similar legal hurdles included the straightening out of lesser disputes in other cities. Although the great majority of the properties were not available for sale until September 1944, rents were collected, and by May 1945 the last property had been marketed, for cash, and restored to the local tax rolls. 111 Election and Appointment of D irectors and Designation of Chairmen and V i c e Chairmen of the Federal Home Loan Banks • A N N O U N C E M E N T has been made recently by the Federal Home Loan Bank Administration of: (1) the election of Classes A, B and C directors and directors-at-large to serve 2-year terms beginning January 1, 1947; (2) the appointment of public interest directors to serve terms beginning January 1, 1947; and (3) the designation of chairmen and vice chairmen of the various Federal Home Loan Banks to serve during the calendar year 1947. ^r # -fr D I S T R I C T N O . 1—BOSTON Chairman: B e r n a r d J. Rothwell, Bay State Milling Comp a n y , Boston, Massachusetts (re-appointed). Vice Chairman: E d w a r d H . Weeks, Old Colony Co-operative Bank, Providence, R h o d e Island (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: Milton A. Barrett, Fidelity Co-operative Bank, F i t c h b u r g , Massachusetts (formerly Directorat-Large). Class B Director (unexpired t e r m ) : William J. D. Ratcliff, P e a b o d y Co-operative Bank, Peabody, Massachusetts (elected to fill an unexpired t e r m ending December 3 1 , 1947). Class C Director: E . Harrison Merrill, Laconia Federal Savings a n d Loan Association, Laconia, New Hampshire. Director-at-Large: George J. Holden, Burlington Federal Savings a n d Loan Association, Burlington, Vermont. DISTRICT NO. 2—NEW YORK Chairman: George M a c D o n a l d , New York, New York (reappointed) . Vice Chairman: Francis V. D . Lloyd, Morrison, Lloyd and Griggs (law firm), Hackensack, New Jersey. Public Interest Director: J a m e s Bruce, National Dairy P r o d u c t s Corporation, New York, New York (reappointed) . Class A Director: C a d m a n H . Frederick, Suffolk County Federal Savings a n d Loan Association, Babylon, New York (re-elected). Class B Director: J o h n W. C a d m a n , Homestead Savings and Loan Association, Buffalo, New York. Class C Director: Joseph A. O'Brien, Medford Lakes Savings and Loan Association, Medford Lakes, New Jersey (re-elected). Director-at-Large: Walter J. Babcock, T r i u m p h Federal Savings a n d Loan Association, E a s t Orange, New Jersey. 112 D I S T R I C T NO. 3—PITTSBURGH Chairman: Ernest T. Trigg, N a t i o n a l Paint, Varnish and Lacquer Association, Philadelphia, Pennsylvania (re-appointed). Vice Chairman: Charles S. Tippetts, The Mercersburg Academy, Mercersburg, Pennsylvania (re-appointed). Public Interest Director: Charles S. T i p p e t t s (re-appointed) . Class A Director: C. Elwood K n a p p , Friendship Federal Savings a n d Loan Association, P i t t s b u r g h , P e n n sylvania. Class B Director: William R e i n h a r d t , The P r o v i d e n t Building a n d Loan Association, Philadelphia, P e n n sylvania (re-elected). Class C Director: Charles Warner, First Federal Savings a n d Loan Association, Wilmington, Delaware. Director-at-Large: Alexander Salvatori, Peoples Federal Savings a n d Loan Association, Wheeling, West Virginia (re-elected). D I S T R I C T NO. 4—WINSTON-SALEM Chairman: Horace S. H a w o r t h , Roberson, H a w o r t h and Reese (law firm), High Point, N o r t h Carolina (reappointed) . Vice Chairman: Edward C. Baltz, P e r p e t u a l Building Association, Washington, D . C. (re-appointed). Public Interest Director: Horace S. H a w o r t h (re-appointed). Class A Director: E d w a r d C. Baltz (re-elected). Class B Director: D . R. Fonville, First Federal Savings and Loan Association, Burlington, N o r t h Carolina. Class C Director: H . L. S u d d u t h , First Federal Savings a n d Loan Association, P a n a m a City, Florida. Director-at-Large: F r a n k Muller, Jr., Liberty Federal Savings and Loan Association, Baltimore, M a r y l a n d (re-elected). D I S T R I C T NO. 5—CINCINNATI Chairman: H o w a r d L. Bevis, Ohio State University, Columbus, Ohio (re-appointed). Vice Chairman: W. Megrue Brock, The Gem City Building a n d Loan Association, D a y t o n , Ohio (re-appointed). Class A Director: Allen C. Knowles, S o u t h Side Federal Savings a n d Loan Association, Cleveland, Ohio (re-elected). Class A Director (unexpired t e r m ) : A. E. Albright, T h e Akron Sayings and Loan C o m p a n y , Akron, Ohio (elected to fill an unexpired t e r m which ends December 3 i ; 1947). Class B Director: Charles J. Haase, H o m e Federal Savings and Loan Association, Memphis, Tennessee (reelected) . Federal Home Loan Bank Review Class C Director: R. A. Stevens, Dyer C o u n t y Federal Savings a n d Loan Association, Dyersburg, T e n n essee (re-elected). Director-at-Large: W. B . Furgerson, Portland Federal Savings a n d Loan Association, Louisville, K e n t u c k y (re-elected). 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 and Loan Association, Indianapolis, I n d i a n a (re-appointed). Public Interest Director: H e r m a n B Wells (re-appointed). Class A Director: Joseph G. S t a n d a r t , Surety Savings and Loan Association, Detroit, Michigan. Class B Director: G r a n t H. Longenecker, Peoples Federal Savings a n d Loan Association, Detroit, Michigan (formerly Class C Director). Class C Director: Amos N . Adams, Auburn Federal Savings and Loan Association, Auburn, Indiana. Director-at-Large: Fermor S. Cannon (re-elected). D I S T R I C T NO. 9—LITTLE ROCK Chairman: B. H . Wooten, The Republic National Bank, Dallas, Texas (re-appointed;. Vice Chairman: Wilbur P. Gulley, Pulaski Federal Savings and Loan Association, Little Rock, Arkansas (re-appointed). Class A Director: J. J. Miranne, Security Building and Loan Association, New Orleans, Louisiana (re-elected). Class B Director: R. H . McCune, Roswell Building a n d Loan Association, Roswell, Newr Mexico (re-elected). Class B Director (unexpired t e r m ) : C. W. Gill, Abilene Savings a n d Loan Association, Abilene, Texas (appointed to fill an unexpired t e r m ending on December 31, 1947). Class C Director: Robert T. Love, Delta Federal Savings and Loan Association, Greenville, Mississippi. Director-at-Large: O. W. Boswell, First Federal Savings and Loan Association, Paris, Texas (formerly Class B Director). D I S T R I C T NO. 10—TOPEKA D I S T R I C T NO. 7—CHICAGO Chairman: Charles E. Broughton, The Sheboygan Press, Sheboygan, Wisconsin (re-appointed). Vice Chairman: H e n r y G. Zander, Jr., H e n r y G. Zander a n d Company (realtors), Chicago, Illinois (reappointed) . Public Interest Director: Philip G. Kinzer, Carnation Milk Company, Milwaukee, Wisconsin (re-appointed). Class A Director: Robert M. Brown, Commercial T r a v elers Loan and Homestead Association, Peoria, Illinois. Class B Director: Rilen McConachie, First Federal Savings a n d Loan Association, Sparta, Illinois (formerly Class C Director). Class C Director: Earl S. Larson, First Federal Savings and Loan Association, Moline, Illinois (formerly Class B Director). Director-at-Large: E d w a r d J. Czekala, National Savings a n d Loan Association, Chicago, Illinois (re-elected). D I S T R I C T NO. 8—DES M O I N E S Chairman: R o b e r t E. Lee Hill, Missouri Bankers Association, Sedalia, Missouri (re-appointed). Public Interest Director: J a m e s C. Otis, Otis, Faricy a n d Burger (law firm), St. Paul, Minnesota (re-appointed). Class A Director: Sylvester A. Koster, Lafayette Federal Savings and Loan Association, St. Louis, Missouri. Class B Director: E. R a y m o n d Hughes, M a n k a t o Savings a n d Building Association, M a n k a t o , Minnesota. Class C Director: N . D . Jackson, Independence Savings a n d Loan Association, Independence, Missouri. Director-at-Large: J. B. Bridston, First Federal Savings a n d Loan Association, Grand Forks, N o r t h D a k o t a . January 1947 Chairman: William M. Jardine, University of Wichita, Wichita, Kansas (re-appointed). Vice Chairman: H e n r y A. Bubb, Capitol Federal Savings and Loan Association, Topeka, Kansas. Class A Director: S. W. H u m p h r e y s , T h e Home Savings and Loan Association, Ottawa, Kansas. Class B Director: A r t h u r W. Hiner, Jr., Capitol Federal Savings a n d Loan Association, Denver, Colorado. Class C Director: A. G. Hartronft, The Lyons Savings and Loan Association, Lyons, Kansas (re-elected). Director-at-Large: E. L. Hevelone, T h e State Savings and Loan Association, Beatrice, N e b r a s k a (re-elected). D I S T R I C T N O . 11—SAN F R A N C I S C O Chairman: Ben A. Perham, P e r h a m F r u i t Yakima, Washington (re-appointed). Company, Vice Chairman: William A. Davis, First Federal Savings a n d Loan Association, Oakland, California (reappointed) . Public Interest Director: William A. Davis (re-appointed). Class A Director: Roy E. Hegg, San Diego Federal Savings a n d Loan Association, San Diego, California (reelected) . Class B Director: Douglas H . Driggs, Western Savings and Loan Association, Phoenix, Arizona (re-elected). Class C Director: M. L. Carrier, Centralia Federal Savings and Loan Association, Centralia, Washington. Director-at-Large: Guy E . Jaques, P o r t l a n d Savings a n d Loan Association, Portland, (re-elected). Federal Oregon 113 ings are determined under the provisions of the Administrative Procedure Act to be of such a character t h a t either t h e filing or publication of notice of a n y such hearing would be in conflict with t h e public interest since they involve t h e operations of financial institutions. Amendments to Regulations FHLBA Bulletin N o . 81 Amendments to rulings for the Federal Savings and Loan System relating to interpretative opinions. (Published in The Federal Register on December 20, 1946.) Title 24, Code of Federal Regulations, has been amended in the following two respects: 1. Deletion from Section 209.20 of the phrase, "service of loans not held or originated by the association." 2. Rescission of Section 209.62 which eliminates the same phrase. These Sections appear in the Appendix Chapter on Opinions, Manual of Rules and Regulations for Federal Savings and Loan Associations. (See Sections B20 and B62.) FHLBA Bulletin N o . 83 Amendment to Rules and Regulations for the Federal Savings and Loan System relating to appraisal requirements on loans insured under the National Housing A c t , as amended. (Published in The Federal Register on January 1, 1947.) Section 203.21 (Title 24, CFR) has been amended by the addition of the following new paragraph (3): The making or purchasing of any loan approved for insurance protection u n d e r t h e provisions of t h e N a tional Housing Act, as now or hereafter amended, where one qualified person selected by t h e b o a r d of directors shall h a v e s u b m i t t e d a signed appraisal of t h e realestate security for such loan, provided t h a t the making or purchasing of a n y such loan shall be otherwise subject to any applicable limitations imposed by law, t h e association's Charter, or any rule or regulations, or otherwise. Proposed Amendment to Rules and Regulations FHLBA Bulletin N o . 82 Proposed amendment to Rules and Regulations for the Federal Home Loan Bank System relating to hearings in connection with the removal of members from the Bank System. It has been proposed to amend Section 3.7 (Title 24, CFR) by the substitution of the following new paragraph for the present paragraph (c): Procedure for Removal. Adjudications p u r s u a n t to Section 6 (i) of t h e Federal H o m e Loan Bank Act, in connection with t h e removal of Bank members, will be determined in accordance with, and follow t h e requirements of, t h e provisions of t h e Administrative Procedure Act, as now or hereafter amended. All such hear- 114 This amendment, which has been mailed to members of the Federal Savings and Loan Advisory Council, will not become effective until at least 30 days after its publication in The Federal Register—December 20, 1946. Changes in Regulation W • SUBSTANTIAL changes in consumer credit restrictions contained in Regulation W were made effective December 1 by the Board of Governors of the Federal Reserve System. Thechanges, however, were primarily in the field of retail credit and did not make substantial alterations in those sections affecting mortgage financing institutions. The amendments removed all restrictions on charge accounts and single-payment loans, and reduced from 36 categories to 12 the list of cons u m e d durable goods to which down payment and maturity requirements apply. Included in the remaining items are major household appliances such as refrigerators, cooking stoves and ranges, washing machines, ironers and dish washers, which are sometimes a part of the "packaged mortgage'' plans used by some home financing institutions. A uniform maximum maturity of 15 months is established for all new instalment credits, whether they arise from sales or loans, if the amount of credit is less than $2,000. Authorized exceptions Section 7 (g) provides that the Regulation does not apply to any extension of credit which is for the purpose of financing or refinancing (1) the construction or purchase of an entire xesidential building or other entire structure, or (2) repairs, alterations or improvements upon urban, suburban or rural real property in connection with existing structures, except to the extent that such repairs, alterations or improvements incorporate any listed article. Subsection (d) of Section 7 also excludes any extension of credit made, guaranteed or insured by the Administrator of Veterans' Affairs pursuant to the provisions of Title I I I of the Servicemen's Readjustment Act of 1944. Federal Home Loan Bank Review * * * WORTH REPEATING * * * DEVELOPING SAVINGS: "More t h a n ever before in t h e history of the savings and loan business it is imp o r t a n t to recognize the necessity for developing savings. Both its prestige and the scope of its place in the financial economy will be determined largely by the accomplishments in a t t r a c t i n g and holding funds in the next few years. I t is for this reason t h a t there is need to give careful t h o u g h t to avoidance of the obsolete p a t t e r n of 'too much or too little' money. Let us recognize t h a t the highest security for both the institution and its savings clientele m a y be achieved only by having a p e r m a n e n t margin of surplus funds above its long-term investments in sound home mortgages." William H. Husband, General Manager, FSLIC, before convention of the New Jersey Savings and Loan League, Asbury Park, Dec. 13, 1946. NEW H O R I Z O N S : " Y e s , our business faces, as it always has, at least in m y time, uncertainties. B u t out of these uncertainties come opportunities, tremendous in their scope a n d deep in their import . . . Certainly we must be prepared to make adjustments in our thinking or we shall fail to reach our new horizons of greater and more far-reaching service to t h e public and u n m e t will go our new challenges, b o t h m o n u m e n t a l and constructive in c h a r a c t e r . " M. K. M. Murphy, Boiling Springs Savings and Loan Association, Rutherford, N. J., in Savings and Loans News, December 1946. RESPONSIBILITY: "Credit is very much like a drug. If administered by a skilled physician it is a great aid in restoring health; when it is unwisely taken it places one in the gutter. Unwise credit t h a t cannot be repaid by a veteran will not only bring losses to the Government, b u t grief a n d discouragement to him and m a y actually ruin his business life. So there is placed upon the lending agencies of the country a grave responsibility, regardless of whether t h e agencies might sustain losses. We can neither shift nor avoid t h a t responsibility . . . A job well done January 1947 will p a y dividends in years to come and be a major factor in sustaining the American system of doing business." Ben H. Wooten, Chairman of the Board, FHLB of Little Rock, National Savings and Loan Journal, December 1946. SOUND REPUTATION: " T h e savings association t h a t desires to establish its reputation as the soundest depository for savings can do so by the simple procedure of providing the lowest interest rate in its comm u n i t y for home mortgage loans, and by then selecting for its portfolio only the choicest of risks. If it acquires for itself the reputation t h a t its home financing plans provide the lowest cost available, b u t t h a t to qualify for such low costs one m u s t have the finest of collateral, then it simultaneously acquires a reputation for soundness of operation t h a t is of incalculable benefit in developing its savings business." George L. Bliss, President, Rail" road Federal Savings and Loan Association, in association house organ, December 1946. COORDINATION: " M y belief in a coordinating type of over-all agency for long-range housing activities, r a t h e r t h a n one with directive powers over constituent units which have responsibilities under separate s t a t u t e s , has long been known. My experience in this connection convinces me progressive achievement in housing can be developed with such an approach, in both a longrange program and in early betterment of the housing situation for veterans." Raymond M. Foley, NHA Administrator, Statement issued Dec. 12, 1946. THE BOOKSHELF Although inclusion of title does not necessarily mean recommendation by the REVIEW, the following recent publications will be of interest. ORGANIZATION AND MANAGEMENT OF COOPERATIVE AND MUTUAL HOUSING ASSOCIATIONS: Bulletin No. 858. Bureau of Labor Statistics, D e p a r t m e n t of Labor. Available a t 200 per copy, Superintendent of Documents, U. S. Government Printing Office, Washington 25, D . C. SHAPING TOMORROW: "The course of tomorrow is being shaped today. If we avoid the excesses of previous speculation in real estate and mortgage lending, we should be able to lengthen the swing of the pendulum and retard its backward swing. Let us not in our greed for loans, encourage veterans to overburden themselves with debt. Let us do w h a t the Servicemen's Readjustm e n t Act intended to have us d o to help the veteran with sound advice as well as with financial aid for his hospitalization, education, rehabilitation and housing. Let us point out to him the inevitable laws of supply a n d demand so t h a t when he borrows he will understand the conditions under which he is purchasing and also his obligation to repay. Let us not throw fuel on the flames of inflation or pave the way for wholesale foreclosures." HOUSING AND CITIZENSHIP: Major George H e r b e r t Gray. Reinhold Publishing Corporation, 330 West 42nd Street, New York 18, N . Y. $7.50. Wm. A. Marcus, Vice President, American Trust Company in San Francisco, at Regional Savings and Mortgage Conference of American Bankers Association, Indianapolis, Ind., Dec. 13,1946. THE CITY: By Eliel Saarinen Reinhold Publishing Corporation, 330 West 42nd Street, New York 18, N . Y. $3.75. THE FUTURE OF HOUSING: By Charles Abrams. H a r p e r & Bros., 49 E . 33rd St., New York 16, N . Y. $5.00. A DECADE OF HOUSING: National Housing Agency, Washington 25, D . C. 1946. BUILDING CODE REQUIREMENTS FOR NEW DWELLING CO NS TR UCTION. BMS-107. Published by N a t i o n a l Bureau of S t a n d a r d s . 200. Superintendent of Documents, G o v e r n m e n t Printing Office, Washington 25, D . C. 115 Index (1935-1939=100) 550 ! Index (1935-1939 = 100) ( 250 1 ( ©PRIVATE CONSTRUCTION Urban I 8t 2- Family Dwelling Units (LABOR DEPT.) 500 1 INDUSTRIAL PRODUCTION/" (FED. RESERVE) 200 / ® SAVINGS 8 LOAN LENDING (FHLBA) W 450 »/vA 150 i»v 100 400 1941 1942 1943 1944 1945 1943 1944 1945 1946 Index (1935-1939 = 100) 350 200 MANUFACTURING EMPLOYMENT <K 300 (LABOR 150 100 250 1941 / t* 200 A\ 150 !V 1942 Index (1935-1939 = 100) 300 INCOME PAYMENTS * (COMMERCE DEPT.) 250 100 200 K^WL 50 1941 1942 1943 1944 150 1945 1946 100 1941 1942 1943 1944 1945 1946 1942 1943 1944 1945 1946 Millions $1,200 r Index (1935-1939" 100) 180 BUILDING COST INDEX Standard six-room house (NHA) $300 1 200 100 120 1 FHLB ADVANC ES OUTSTANDING r 1941 -v 1 REPUf*CHASE RATIO A U Vw 1942 1943 •\/V \/v 1944 / 80 40 ^ 1945 1946 All in jured S S L Assns. K U\H\bf\bk bhlf\ 1 r 1941 1942 \ N 1943 } V 1944 \ ' 1945 1946 « €< €€ O N T H L Y Industrial production remained high Despite the coal strike which started in the latter part of November, causing almost immediate slow-downs in basic industries, over-all production for that month rose 1 point above the postwar high level achieved in October. The preliminary figure shown in the Federal Reserve Board's seasonally adjusted index of industrial production was 182 percent of the 1935-1939 average compared with 181 in the preceding month, 168 in November 1945, and 174 in the same month of 1941. Although the total effect of the coal strike cannot be measured in terms of November production alone, nor the "lost" goods be recaptured, the recuperative power displayed by the steel industry is a hopeful sign that the secondary repercussions may be overcome within a relatively short time. Steel output, which slid to 60 percent of capacity in the first week of December had within two weeks rebounded to the average November level of 84 percent compared with 89 percent in October. Thus, it seems likely, as stated in the final report of the CPA Administrator: " I t should be possible to achieve maximum output of most commodities within a reasonable period of time under the momentum that has been accumulated." The report further pointed out: "The fact that these goods [consumer items] cannot be readily purchased is the result of a seemingly insatiable demand rather than a dearth of production." This excess of demand over supply remains evident in the case of building materials in spite of many all-time highs and the fact that recent output in most cases has been from 50 to 100 perIndex [1935-1939=100] H o m e construction (private) *__ R e n t a l index (BLS)_ B u i l d i n g m a t e r i a l prices Savings a n d loan lending i_ Industrial production J . . M a n u f a c t u r i n g e m p l o y m e n t *___ Income payments l ______ r 1 Nov. 1946 215.0 108.8 162. 5 441.7 182.0 150.7 259.3 Revised. Adjusted for normal seasonal variation. January 1947 Oct. 1946 Percent change Nov. 1945 Percent change r 223.7 108.8 150.5 450.1 r 181.0 r 146. 4 ' 254.5 -3.9 0.0 +8.0 -1.9 +0.6 +2.9 +1.9 157.2 108.3 132.5 322.4 168.0 129.5 235.7 +36.8 +0.5 + 22.6 +37.0 +8.3 +16.4 +10.0 S U R V E Y 11 11 11 cent above the early months of 1946. The November production record, while not yet complete, indicated that in general the high October rates were maintained. However, seasonal factors and effects of the strike combined to keep the picture from being uniform. Some items, including bathtubs, lavatories, sinks and wire nails, showed increases. Others—notably softwood plywood, cast iron soil pipe, brick and clay sewer pipe—lagged behind October levels. Building materials have proved especially susceptible to general price rises which followed the price decontrol action of November 9. In the seven weeks of operation without ceilings, the BLS index of all industrial commodities rose 7 percent while construction materials were going up 11 percent. This advance was chiefly in lumber which rose 21 percent. (See chart on page 97.) Average weekly earnings in all manufacturing industries, as reported by the U. S. Department of Labor, showed no monthly change according to preliminary November estimates. They stood at $45.63—about 11 percent above the same 1945 month. The Federal Reserve Board seasonally adjusted index of department store sales in November and early December was over 20 percent higher than in the holiday shopping season last year, while sales of other independent retailers had advanced 29 percent in the same 12-month comparison, according to the Census Bureau. Both of these trends reflected chiefly higher prices. These and other increased consumer expenditures were reflected in a lowered rate of individual saving during the last quarter of 1946. Private home building down 21 percent The gradual decline in the number of building permits for nonfarm dwelling units, which began after the seasonal peak in the spring of 1946, was continued during November. Permits issued in that month covered 46,500 family dwelling units to be constructed with private funds. This was 21 percent less than in October but 48 percent more than in November 1945. 117 Dwelling Units -Thousonds As was true in earlier months of the year, only a small proportion of total permits were issued for residential structures containing three or more dwelling units, which, generally speaking, may be termed rental housing. Of the 46,500 family units to be provided by November permits, less than 3,500, or 7.5 percent, were in multiple-unit structures. Cumulatively for the first 11 months of 1946, only 7 percent of all privately financed construction was in such structures, compared with 10 percent during the same period of 1941. During the first 11 months of 1946, building permits were issued (for privately financed construction) or contracts awarded (for public building) covering almost 762,000 new family units, according to data compiled by the U. S. Department of Labor. This represented an increase of 12 percent over the same months of 1941. Of the 1946 total, privately financed units accounted for 84 percent, compared with 86 percent in 1941. [TABLES 1 and 2.] Building costs moved higher following decontrol The NHA index of construction costs for the standard six-room frame house showed a nearly 2-percent increase from October to November— one of the largest monthly gains in the 10-year history of this series. Using price and wage quotations as of November 15, the data reflect a relatively short period of operation following the elimination of price control. They, therefore, do not fully measure the adjustments in wages and 118 prices which occurred in the first few weeks after decontrol. The index of total costs stood in November at 156.9 percent of the 1935-1939 base—up almost 3 points during the reporting period. The material component of the index rose 2.2 percent and labor rates rose 0.9 percent over the October level. These indexes were 153.8 and 163.1, respectively. The extent of recent increases in the construction costs is evident from the fact that in the 12-month period ending in November, the index for total costs rose only 13 percent. However, the rate of gain in the past three months on an annual basis would be close to 20 percent, and these are almost all increases which took place before the controls were lifted. An indication of the effect of decontrol measures on building material prices can be seen in the trend of the U. S. Department of Labor index of wholesale prices since November 9. In the 7-week period from November 9 through December 28, the index of all building materials was up 11 percent. The largest single commodity group increase was registered by lumber and lumber products, which jumped 21 percent. The miscellaneous group of materials was 7 percent higher and paint and paint materials, 4 percent. The plumbing and heating and structural steel components of this index, however, showed no change. To some extent at least, these increases reflected a recognition of black market prices which prevailed prior to decontrol. [TABLES 3, 4 and 5.] Federal Home Loan Bank Review Seasonal decline shown in savings and loan lending The volume of new mortgage loans made by all operating savings and loan associations during November declined 17 percent from October to an estimated $271 million. Although reflecting largely the influences of the season, as opposed to an absolute decline in the demand for home mortgage credit, a more cautious approach of management to making loans in today's inflated market is no doubt an influencing factor. Loans in each of the various purpose classifications declined during the month, with decreases ranging from 11 percent for refinancing to 22 percent for reconditioning loans. Home purchase loans were down 18 percent from October; bowever, such loans continued to dominate in the lending pattern, accounting for 63 percent of total lending during the current month, against 68 percent a year earlier. The late autumn decrease in new lending activity was general throughout the country. Drops in the total volume of loans closed were reported in all F H L Bank Districts, declines ranging from less than 1 percent in the Boston region to as much as 24 percent in the Chicago District. All over the country, however, lending exceeded the 1945 rate, with the national volume for November 37 percent above the same 1945 month. Through the end of November the savings and loan industry had made a record $3,331,000,000 of new loans, 93 percent more than during the New mortgage loans distributed by purpose [Dollar amounts are shown in thousands] Purpose November 1946 October 1946 Percent change November 1945 C o n s t r u c t i o n _ __ . H o m e purchase Refinancing- . Reconditioning _._ . . Other purposes. $51,187 170,162 21, 625 7,034 21,468 $60,931 207,139 24, 376 9,061 24,692 -16.0 -17.9 -11.3 -22.4 -13.1 $24, 481 135, 685 19,411 4,487 14, 095 +109.1 +25.4 + 11.4 +56.8 +52.3 271,476 326,199 -16.8 198,159 +37.0 Total first 11 months of 1945. Out of every $100 loaned by these institutions during the J a n u a r y November period of 1946, $83 was for either the construction or purchase of homes. [TABLES 6 and 7.] Recordings at lowest level since March The volume of financing of nonfarm mortgages of $20,000 or less dropped 14 percent from the $1,007,000,000 peak reached last October. Although this reduction is in line with the seasonal tendencies, there are also other indications that the previous upward trend has been checked. Even as late as September 1946, the total amount of recordings was more than double the volume for the same 1945 month, but the spread in year-to-year comparisons has narrowed rapidly so that the November total of $869,000,000 was only 55 percent higher than in the same month the year before. For the first 11 months of 1946, a total of $9,573,000,000 of nonfarm mortgages of $20,000 or less was recorded, a rise of 88 percent over the corresponding 1945 period. However, this in- Index (1935-1939=100) 200 I PRIVATE SHARE CAPITAL All Insured Associations Percent change Index (I935-I939-IOO) 240 | CONSUMERS' PRICE INDEX BUILDING MATERIALS Wholesale Price Index (LABOR DEPT.) COMBINED'^, r INDEX yf \ HEATING K^" -iafl0i'*™\'m'' K BRICK a TILE 11 I 1 1 11 11 i I 1 1 1 1 1 1 1 I I 1 11 l i I 1 1 1 1 i i I I I 1 January 1947 . o n 1 i i I i i 11 i I i i 1 i 1 1 1 11 1 1 1 1 i 11 i I i i 1 i i I 100 I I I I I I I I I I 1 I I I I I I I I I I l l l l l l l l l 119 Mortgage recordings by type of mortgagee [Dollar amounts are shown in thousands] November T y p e of lender 1946 amount Savings a n d loan associations. _ $266,108 Insurance companies. . _ _ 42,979 B a n k s , t r u s t c o m p a n i e s . _ _.__ 230,588 49, 334 M u t u a l savings b a n k s _ Individuals . _ . 163, 866 Others 116, 614 Total 869, 489 Percent change from 1945 Cumulative 1946 (11 m o n t h s ) Percent of total +29.7 +86. 4 +101.1 +111.6 +25.1 +84.8 $3,166, 550 430, 304 2, 453,029 501,036 1, 875, 402 1,147,106 33.1 4.5 25.6 5.2 19.6 12.0 +55.2 9, 573, 427 100.0 crease was not uniform among the various types of lenders. Commercial banks and mutual savings banks have showed gains of at least 150 percent in volume during the January-November period, while savings and loan associations recorded a rise of 74 percent and individuals increased their total volume only 46 percent. A large proportion of the higher dollar volume during 1946 was due to the 22-percent gain in the average size of mortgages recorded. While affected to some extent by the increased proportion of Veterans Administration insured loans, this increase also gives some indication of the sharp rises occurring in the real estate market during 1946. [TABLES 8 and 9J Outstanding Bank advances continued upward Although Federal Home Loan Bank advances outstanding increased during November for the fourth successive time, the rate of gain had dropped considerably from previous months. The balance outstanding at the close of the reporting period—$258,444,000—represented a gain of only $6 million over October and was, except for April, the smallest increase reported in any month of 1946. Aside from a seasonal decline in July, the consistent pattern of credit expansion since April has brought advances outstanding to the highest point on record. November financing activity was down considerably from October, with new advances to member institutions totaling $20 million—a drop of $12 million. The New York and San Francisco Bank Districts were the only ones in which activity went counter to this trend. Compared with a year earlier, advances made last November were down about a million dollars. 120 Repayments made to the Banks during the reporting month, although showing a slight decline from the October volume, were at a comparatively high level for November. Totaling $14,500,000, they were almost $4 million greater than in the same 1945 month and were second only to the comparable figure for 1943. The OctoberNovember comparison showed that member associations repaid $444,000 less in the latter month, although four Banks—Boston, Indianapolis, Des Moines and Topeka—reported larger receipts than in October. The Boston and Topeka Banks were the only ones in which the volume of repayments exceeded advances. Total combined assets of the 11 Banks were approximately $427,000,000 on November 30, up $80 million from the same time the previous year and $3 million more than at the close of October 1946. [TABLE 12.] Insured share capital over 56-billion mark Savings invested by the public in all insured savings and loan associations crossed another billion-dollar milestone during November. The $61-million net addition to their share accounts carried the total of private repurchasable capital accounts to $6,056,000,000 at the end of the month. By way of comparison, this last billion dollars of private share capital was accumulated in approximately 13 months, which was about one month less than was required for the preceding billion. In view of the general slow-down in savings experienced by all types of savings media, this assumes added significance. The volume of new mortgage lending by insured associations has been tapering downward persistently since the record peak reached in M a y 1946, when total lending activity was 134 percent above the volume for the same month of 1945. The November total for new loans—slightly above $200 million and the lowest since February—was only 36 percent higher than in November 1945. The 2,495 institutions insured by the Federal Savings and Loan Insurance Corporation at the end of November had combined resources of $7,183,000,000. During the 12-month period ending with that month, the assets of these institutions increased slightly more than 22 percent, or just above $1,300,000,000. [TABLE 13.1 Federal Home Loan Bank Review Net inflow of savings approximated $73 million Although the net receipts of share capital by all savings and loan associations were off slightly in November, the inflow continued at a relatively high level and brought the cumulative 1946 totals for 11 months to within striking distance of $1 billion. After staging a substantial recovery in October from the rather sharp September drop, the net inflow of savings declined again in November, the estimated $73-million share growth recorded during the month representing a decline of 18 percent. The extent of this October-to-November decline is closely in line with movements over the same period in 1944 and 1945; however, it is significant that the Sixth War Loan Drive was begun in November 1944 and the Victory Loan Drive started in November 1945, while there were no similar influences for the current reporting period. In prewar years the net inflow of funds generally was increased during this season. Both total new share investments and withdrawals dropped during November. Share investments declined 14 percent to $215 million and withdrawals decreased 12 percent to $142 million. The larger percentage drop in total new investments served to increase the withdrawal ratio slightly—from 65 percent in October to 66 percent. [TABLE 14.] Rate of Individual Savings Declined in Third Quarter LIQUID savings of individuals during the third quarter of 1946 were estimated at $4.3 billion by the Securities and Exchange Commission. In contrast to the usual seasonal rise during this three-month period, the rate of saving for the period was somewhat lower than in the second quarter. This was due to increased consumer expenditures which more than offset the rise in income after payment of taxes. The net gain in cash and deposits amounting to $3.6 billion was by far the largest portion of thirdquarter individual savings. Of this, $2.6 billion was in demand deposits, and the remainder in cash, time and savings deposits. Individuals' holdings of U. S. securities rose $700 million and their investments in savings and loan associations were up $200 million. Individuals also added $900 million to their equity in Government insurance and $700 million to their private insurance. In comparison to their second-quarter activities, individuals invested $200 million less during the July-September period in state and local government securities and $300 million less in corporate and other securities. Increases in various savings media, however, were offset to some extent by the continuing upward trend of consumer indebtedness. Mortgage debt increased $900 million while other forms of consumer obligations went up $500 million. ; f P CHANGES November 1 9 4 6 K e y to changes * ** # ## 0 00 Admission to Membership in Bank System. Termination of Membership in Bank System. Federal Charter Granted. Federal Charter Canceled. Insurance Certificate Granted. Insurance Certificate Canceled. PITTSBURGH DISTRICT PENNSYLVANIA: Philadelphia: **Independenee Square Building and Loan Association, 2351 Kensington Ave. Ridley Park: **Ridley Park Building Association, Swarthmore and Hinckiey Aves. CINCINNATI DISTRICT KENTUCKY: Louisville: *Equitable Savings and Building Association, 604 West Jefferson St. • January 1947 ^ DES MOINES DISTRICT MISSOURI: Dexter: **Dexter Savings and Loan Association. LITTLE ROCK DISTRICT MISSISSIPPI: Corinth: ## 00First Federal Savings and Loan Association of Corinth, Filmore and Waldron Sts. TEXAS: Dallas: 0Guardian Savings and Loan Association, 1204 Main St. Sherman: **Grayson Federal Savings and Loan Association, 210 Merchants and Planters Bank Building. SAN FRANCISCO DISTRICT CALIFORNIA: Los Angeles: #Broadway Federal Savings and Loan Association of Los Angeles, 4325 South Broadway. 121 Table 1 . — B U I L D I N G A C T I V I T Y — E s t i m a t e d number of new family dwelling units provided in all urban areas in November 1946, by Federal Home Loan Bank District and by state [Source: U . 3. D e p a r t m e n t of Labor] T o t a l u r b a n resiciential c onstructioi i Federal H o m e Loan Bank District and state 1- a n d 2-family dwellings Nov. 1946 P UNITED STATES Boston 28, 601 ... _ Connecticut __ _ M a i n e . . _. ___ _ Massachusetts New Hampshire R h o d e I s l a n d . . ._ _ Vermont... . . __ New York ____ N e w J e r s e y . __ New York _. P i t t s b u r g h . . . ___ Delaware Pennsylvania W e s t Virginia . . . . . 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 South Carolina. Virginia . . . Cincinnati Kentucky Ohio Tennessee __ Indianapolis Indiana Michigan _ __ Chicago Illinois . _ - - . . Wisconsin. . . Des Moines Iowa . . . Minnesota. Missouri North Dakota South Dakota __ . _ Little Rock Arkansas. Louisiana ._ . Mississippi N e w Mexico ._ Texas Topeka Colorado Kansas Nebraska Oklahoma __ . S a n Francisco Arizona... California Idaho Montana. Nevada Oregon Utah Washington Wyoming p Preliminary. 122 •__ __ _ __ _ P u b l i c residential construction P r i v a t e residential construction Oct. 1946 * Nov. 1945 37,401 20, 867 Nov. 1946 P 3- a n d more-family dwellings Nov. 1946 P Oct. 1946' Nov. 1945 25, 285 31, 475 18, 490 3,194 4,592 1,927 1,348 817 258 615 94 Nov. 1946 P Nov. 1945 Oct. 1946 r 122 Oct. 1946' 1,334 1, 522 1,963 911 1,264 415 115 827 24 122 19 216 42 1,274 74 337 20 130 46 551 49 98 37 415 115 569 24 122 19 212 42 663 74 337 20 130 46 457 49 98 37 258 611 94 2,828 4,492 1,557 1,860 1,912 1,243 968 1,294 314 1,286 848 1,980 1.197 3,295 381 1,176 587 1,273 708 1,204 314 929 261 707 489 805 67 247 1,286 1,203 1,955 660 1,185 1,907 603 18 48 57 10 1,017 176 38 1,688 229 28 510 122 10 1,011 164 38 1,655 214 23 464 116 6 12 33 15 5 46 6 4,427 5,161 2,775 4,186 4, 588 2,601 241 573 174 705 168 1,382 363 685 489 103 532 722 297 1,550 445 460 779 130 778 340 158 1,023 361 162 338 74 319 697 148 1,279 359 677 485 103 438 722 59 1,409 441 460 775 130 592 340 154 891 339 162 322 74 319 8 20 103 4 8 4 238 141 4 4 132 22 4 16 94 186 1,950 2,961 1,282 1,801 2,543 1,109 149 418 173 303 1,283 364 238 2,173 550 82 915 285 299 1.138 364 214 1,783 546 79 749 281 4 145 24 390 4 3 166 4 1,673 2,451 1,261 1,657 2,414 1,231 16 37 16 588 1,085 937 1,514 353 908 588 1,069 917 1,497 348 883 16 20 17 5 11 1,783 2,277 1, 421 1,259 2,140 1,278 414 109 93 110 28 1,362 421 1,522 755 1,038 383 901 358 1,408 732 976 302 351 63 86 23 62 31 110 28 1,296 1,632 934 1,182 1,576 857 114 56 77 244 596 374 25 57 411 564 471 76 110 211 450 209 33 31 232 561 307 25 57 407 561 426 72 110 178 442 188 18 31 12 35 67 4 3 45 4 33 8 21 15 3,529 4,833 3,764 3,300 4,321 3,407 217 492 66 173 394 288 126 2,548 206 449 267 154 3,757 137 252 286 131 2,958 173 366 208 126 2,427 202 445 263 154 3,257 137 248 286 27 2,709 28 80 4 4 4 4 109 480 4 58 1,073 1, 585 1,117 1, 039 1,470 860 34 115 162 242 383 150 298 516 358 235 476 406 164 55 492 232 359 150 298 464 334 223 449 247 164 55 394 10 24 52 24 12 27 159 7,317 8,091 5,185 6,552 7, 256 4,484 765 835 701 149 6,180 105 53 15 224 159 387 45 126 6,498 175 110 45 366 179 537 55 119 4,231 93 32 117 189 147 204 53 125 5,500 105 47 15 210 129 376 45 112 5,722 175 102 45 349 179 525 47 113 3,570 78 32 117 189 147 204 34 24 680 14 776 6 661 15 Nov. 1945 450 4 6 8 14 30 11 17 12 8 3 14 14 50 50 12 20 291 12 20 100 191 95 95 19 •Revised. Federal Home Loan Bank Review Table 2 . — B U I L D I N G ACTIVITY—Estimated number and valuation of new family dwelling units [Source: U. S. D e p a r t m e n t of L a b o r . Dollar a m o u n t s are s h o w n in t h o u s a n d s ] P e r m i t \r aluation N u m b e r of family dwelling u n i t s p r o v i d e d P r i v a t e construction Private construction Period Total construction Total l-family 2-family 3- a n d morefamily Total Public construc- construction tion l-family 2-family 3-and morefamily 92, 925 $2,388,085 $2,076,363 $1,855,341 Total Public construction Nonfarm 1941: J a n u a r y - N o v e m b e r November. _______ 1945: J a n u a r y - N o v e m b e r November . D e c e m b e r __ _ __ _ _ 1946: J a n u a r y - N o v e m b e r January . February . . . _._ _ March April.. May . June __ _. July August _._ __ _ __ S e p t e m b e r . _. October r_ November » 682, 423 589, 498 "506,410 26, 949 56,139 $65,961 $155,061 46, 651 41,815 34. 567 1,673 5, 575 4,836 161, 523 143,961 123, 382 4,157 16, 422 17, 562 216,400 200,057 177,476 8,540 14,041 16,343 765,333 721,110 645,860 28, 784 46,466 44, 223 31, 400 29,100 31, 400 29,100 28, 22925,116 1,146 1,426 2,025 2,558 129,195 127, 065 129,195 127, 065 117, 642 112, 467 4,379 4,912 7,174 9,686 761, 600 641, 721 573, 604 24, 312 43, 805 119, 879 3,150, 576 2, 813,161 2, 544,967 44, 800 49, 500 84, 500 82, 900 88, 700 76,100 80, 400 82,100 65, 800 60, 200 46, 600 39, 111 43, 342 77,002 70, 478 68, 758 58, 340 60, 586 62, 090 57, 044 58, 492 46, 478 34, 782 38, 689 68, 461 64,182 60, 549 52, 712 45, 462 55, 931 50, 945 51, 551 41, 340 1,395 1,889 2,783 2,671 3,417 2,264 2,027 2,063 2,160 1,999 1,644 2,934 2,764 5, 758 3,625 4,792 3,364 4,097 4.096 3,939 4.942 3,494 420, 244 352, 367 280, 510 21, 583 50, 274 27.868 24, 337 17,910 1,298 5,129 3,531 99, 587 141, 994 131, 456 110,001 8,007 13, 448 10, 538 20, 867 19, 256 20, 417 19, 256 17, 421 15, 494 1,069 1,241 1,927 2,521 450 505, 821 404,806 340, 473 23,114 41, 219 31, 607 34, 370 56, 503 55, 603 60,167 51, 270 52,131 55, 081 43,087 37, 401 28, 601 25, 918 28, 503 50, 066 44, 996 43, 583 36, 660 36, 830 38, 660 35,044 36,067 28, 479 21, 786 24, 072 41, 785 39, 000 35, 824 31, 372 31, 071 32, 921 29, 335 29, 576 23, 731 1,309 1,792 2,683 2,571 3,267 2,144 1,902 1,943 2,050 1, 899 1,554 2,823 2,639 5,598 3,425 4,492 3,144 3,857 3,796 3,659 4, 592 3,194 $311, 722 100, 927 167, 267 337,415 147, 800 169,037 316, 924 286, 437 265, 321 231, 938 235, 336 246, 251 224,140 233,066 188, 717 5,222 6,969 12, 098 10, 991 13, 754 9,531 8,217 9,014 9,290 8,590 7,251 9,282 9,043 23, 934 13, 420 17,063 14, 317 13, 269 17, 236 13, 833 19, 958 15,912 13, 981 16, 654 18,135 29, 766 51, 446 54, 919 59, 557 62, 573 20, 683 9,369 332 67, 877 1, 547,118 1, 317,948 1,119,303 55,884 142, 761 229,170 87, 369 68, 541 3,461 15,367 12, 218 559, 951 532,189 459, 977 27, 453 44, 759 27, 762 94,387 95,040 93, 953 95, 040 82, 944 80, 639 4,134 4,275 6,875 10,126 434 101,015 2, 275,012 1, 993,015 1, 736, 615 97, 488 158,912 281,997 105,098 116, 568 217, 388 195, 969 181, 907 159, 954 157, 063 168, 556 150,795 156, 482 126,835 4,947 6,659 11, 749 10, 688 13, 304 9,171 7,842 8,654 8,960 8.290 7,224 8,941 8, 659 23, 400 12, 755 16,109 13, 617 12, 489 16. 261 12,923 18,821 14, 937 13, 981 15, 747 15, 996 26,153 43, 790 40, 992 42, 956 54, 347 19,148 8, 555 332 5,689 6,158 7,498 12, 422 19, 942 17, 760 19, 814 20,010 8,756 1,708 122 176, 285 201, 703 371, 091 340, 614 347, 584 310, 705 316, 379 335, 074 267, 946 270, 983 212, 212 162, 304 185, 049 352, 956 310, 848 296,138 255, 786 256, 822 272, 501 247, 263 261, 614 211,880 Urban 1941: J a n u a r y - N o v e m b e r November __ _ _ ___ 1945: J a n u a r y - N o v e m b e r November December 1946: J a n u a r y - N o v e m b e r January.. February.. March April.. May June July August, September OctoberT November r _ .... . . _. _. _. P _ _ __ __: _ Revised. 132,967 147,633 268, 533 245, 565 255,110 223, 734 220, 350 247, 818 191, 826 192,148 149, 328 5,689 5,867 6,437 10, 607 16, 584 14, 610 15, 301 16, 421 8,043 1,334 122 118, 986 131, 886 252, 537 219, 412 211,320 182, 742 177, 394 193, 471 172, 678 183, 593 148,996 p Preliminary. Table 3 . — B U I L D I N G COSTS—Index of wholesale prices of building materials [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 1944: N o v e m b e r _ 1945: N o v e m b e r December 1946: J a n u a r y . February March April May June July August September October November __ _ _ . ._ . ._. _ Percent c h a n g e : N o v e m b e r 1946-October 1946 N o v e m b e r 1946-November 1945 January 1947 _. Brick a n d tile 1935-1939 = 100; converted from 1926 base] Cement Lumber Paint and paint materials Plumbing a n d heating Structural steel Other 130.0 115.6 107. 2 171.3 130.7 121.4 103.5 111.7 132.5 133.4 128.4 128.4 109.9 110.3 173.2 175.7 132.4 132.5 124.8 124.8 103. 5 103.5 114.0 114.5 134.0 135.0 139. 5 141.3 142.7 145.1 147.5 148.2 149.2 150.5 162.5 128.7 128.7 129.2 )?2.0 132.6 133.5 134.8 138.7 140. 5 140.7 142.1 111.0 111.4 112.3 112.4 112.6 112.6 114.1 116.1 116.9 116.9 117.4 176.5 178.3 186.6 190.9 192.1 196.0 197.4 197.8 198.4 199.2 213.9 132.5 132.5 132.5 132.8 133.0 133.5 141.3 140.0 143.5 146.6 186.0 124.8 124.9 124.9 132.4 132.4 139.3 139.3 139.7 140.8 140.8 140.8 103.5 109.7 115.9 115.9 115.9 115.9 115.9 115.9 115.9 115.9 115.9 115.3 115.9 121.4 122.0 125.1 128.0 129.7 130.7 131.3 132.5 135.5 +8.0 +22.6 +1.0 +10.7 + 0.4 +6.8 +7.4 +23.5 +26.9 +40.5 0.0 +12.8 0.0 +12.0 +2.3 +18.9 123 Table 4 . — B U I L D I N G COSTS—Index of building costs for the standard house [Source: National Housing Agency. Average month of 1935-1939=100] 1946 1945 E l e m e n t of cost Material Labor November October September 153. 8 163.1 150.5 161.6 148.3 159.3 146.1 157.2 143.7 155.6 141.6 153.8 139.2 152.5 138.0 150.6 137.1 148.9 156.9 154.2 151.9 149.8 147.7 145.7 143.6 142.1 141.0 _ Total August July May June April March January December November 136.3 148.5 135.5 147.9 135.2 147.5 135.0 147.3 140.3 139.7 139.3 139.1 February Table 5 . — B U I L D I N G COSTS—Index of building costs in representative cities [Source: N a t i o n a l H o u s i n g A g e n c y . Average m o n t h of 1935-1939=1001 1946 1945 1944 1943 1942 1941 1940 Dec. Dec. Dec. Dec. Dec. Dec. F e d e r a l H o m e L o a n B a n k D i s t r i c t a n d city Sept. Dec. Boston: Hartford, Connecticut--. _ _______ Portland, Maine _ _ _ .___ Boston, M a s s a c h u s e t t s _ Manchester, N e w Hampshire _ _ Providence, Rhode Island __ _ _ _ Winston-Salem: Birmingham, Alabama __ Washington, D . C A t l a n t a , Georgia _ _ _ _ _ _ _ _ Baltimore, M a r y l a n d Richmond, Virginia, _ _ _ _ _ _ Chicago: Chicago, Illinois M i l w a u k e e , Wisconsin ..__ __ __ _ __ _ _ __ _ _ _ _ _ _ Topeka: D e n v e r , Colorado __ Wichita, Kansas _ . . _ _ _ _ _ _ _ _ _ _ - _ _ Omaha, Nebraska _ Oklahoma City, Oklahoma _ _ _ _ _ _ June Mar. 156. 2 179.2 157.3 139.8 165.4 147.4 169.9 147.1 136.9 159.4 144.1 164.8 140.8 132.9 151.4 137.5 153.8 137.9 129.5 147.6 137. 9 153.5 134.2 128.0 146.0 136.5 152.4 133.2 124.4 141.4 134. 5 144.6 130.2 116.2 135.6 128.4 127.7 125.9 108.7 120.7 125.4 117.0 119.8 105.0 118.1 107.6 101.6 105.8 99.3 109.7 154.7 174.6 180.8 191.7 160.3 139.9 169.7 160.8 179.6 151.8 135. 6 159.2 158.0 162.7 145. 8 132.0 153.1 153.5 156. 8 136. 7 127.6 150.4 151.7 155.8 135. 9 128.5 143.3 146. 4 150.1 133.1 124.0 138. 9 137. 7 146.4 125.5 115. 9 127.0 125.1 127. 8 117.4 114. 3 119.8 119.0 123.9 111.3 105.3 108.1 107.2 109.6 105. 3 134.9 166.0 130.2 159.6 124.8 155.1 121.8 148.1 117.2 146.9 112.4 142.4 111.3 137.9 108.9 132.0 104.4 116.6 98.9 109. 8 147.0 151.6 155.6 180.4 141.8 144.1 152.3 175.1 136.5 140. 2 142.4 165.2 132.1 138.1 140.5 162.3 129.1 137.3 139.9 153.3 125.3 135.9 134.5 151.3 119.6 131.9 129.6 147.1 112.9 127.5 126.7 132.2 110.6 118.8 120.8 126.8 100.6 110.0 107.5 119.2 i For complete explanation of these data, see Statistical Supplement to April 1946 REVIEW. Table 6 . — M O R T G A G E LENDING—Estimated volume of new home mortgage loans by a l l savings and loan associations, by purpose and class of association [Thousands of dollars] P u r p o s e of loans Class of association Period H o m e purchase Refinancing $95,243 $1,064,017 $163,813 $30, 751 $100,228 $1,454,052 $669,433 $648,670 $135,949 89,999 4,635 892, 509 90,182 150, 258 13, 265 28, 624 2,507 91, 524 7,785 1, 342,914 118,374 617,847 54,978 598,749 52, 241 126, 318 11,155 180,550 1, 357, 555 196,011 40, 736 137, 826 1,912,678 911,671 836, 874 164,133 157, 628 1, 227,998 178,163 36, 778 124,401 1,724,968 820, 751 754,983 149, 234 24,481 22. 922 135,685 129, 557 19,411 17,848 4,487 3,958 14,095 13, 425 198,159 187,710 96, 709 90,920 85,804 81,891 15,646 14,899 __ 565,309 2, 204, 782 248,119 74, 523 238,058 3,330, 791 1,687,632 1,401,712 241,447 _ ___ __ 30,807 30, 866 45, 391 53,202 62,189 56,297 59, 708 59, 377 55, 354 60,931 51,187 145, 342 154, 219 202,995 235,877 243, 458 218, 575 216, 369 211,804 198, 842 207,139 170,162 21, 372 19,801 24, 244 24,882 24,451 22,402 21,388 22,032 21,546 24,376 21, 625 3,803 4,217 6,198 6,796 6,954 6,625 7,327 8,481 8,027 9,061 7,034 15, 518 16,416 21, 335 22, 242 24, 246 22,098 21, 256 22, 765 26,022 24,692 21,468 216,842 225, 519 300,163 342,999 361, 298 325,997 326,048 324,459 309,791 326,199 271,476 109,146 111,927 155, 960 174,468 186,282 107, 552 165,031 165,812 154,105 165,742 131,607 92,103 97,305 123,945 143,114 150,161 136,296 136,966 134,624 133,758 136,660 116, 780 15, 593 16, 287 20,258 25,417 24,855 22,149 24,051 24,023 21,928 23, 797 23,089 ._ _ ___ __ _ 1945 J a n u a r y - N o v e m b e r . _ _ ___ November December _ _ L o a n s for all o t h e r purposes Construction 1944 January-November N o v e m b e r , ___ ___ _ _ _ Reconditioning Total loans __ ___ Federals State members Nonmembers 1946 January-November January. February March April May June July August September October November 124 _ _-. _ _ _. _ _. __ __ _ _ ___ ___ _ _ _ ._-__. _____ Federal Home Loan Bank Review Table 7.—LENDING—Estimated volume of new loans by savings and loan associations Table 8.—RECORDINGS—Estimated nonfarm mortgage recordings, 520,000 and under [Dollar amounts are shown in thousands] NOVEMBER 1946 [Thousands of dollars] C u m u l a t i v e n e w loans (11 m o n t h s ) ' N e w loans Federal H o m e L o a n B a n k District a n d class of association oNoOctober v eN mber vember 1946 1945 1946 1946 1945 Percent change $271,476 $326,199 $198,159 $3, 330, 791 $1, 724. 968 + 9 3 . 1 UNITED STATES Savings I n s u r - B a n k s and and Federal H o m e ance trust loan Loan Bank comDistrict a n d state associa- panies companies tions UNITED STATES.. 131,607 165, 742 116, 780 136, 660 23, 089 23, 797 Boston Federal Nonmember New York.. . . _ Federal State m e m b e r Nonmember Pittsburgh _ _ _ Federal- _ State member Nonmember Winston-Salem Federal. State m e m b e r Nonmember. Cincinnati.. Federal _ . State m e m b e r Nonmember. . . . . I n d i a n a p o l i s . _. . __ Federal. State m e m b e r . Nonmember _. ... 96, 709 1, 687,632 85,804 1, 401. 712 241, 447 15, 646 820, 751 + 105.6 754, 983 + 8 5 . 7 149, 234 + 6 1 . 8 21,787 21, 879 12,138 222, 112 114, 728 + 9 3 . 6 8,151 10, 552 3,084 9,226 10, 673 1,980 5,285 5,243 1,610 96, 467 103, 261 22, 384 48, 872 + 9 7 . 4 52,135 + 9 8 . 1 13, 721 + 6 3 . 1 29,180 34, 792 18, 758 345, 364 169, 072 + 104.3 11,609 12, 960 4,611 14, 307 15, 211 5,274 6,599 9,047 3,112 146, 359 150, 600 48, 405 60,121 + 143. 4 81, 434 + 8 4 . 9 27,517 + 7 5 . 9 140, 392 + 7 6 . 8 m, 8io + 8 7 . 1 48, 318 + 6 4 . 2 25, 264 + 7 3 . 5 19, 854 24, 044 14, 501 248,167 9,518 6,587 3,749 11, 506 8,179 4,359 6,963 4,976 2,562 124, 983 79, 348 43, 836 43, 028 49, 046 27,189 484, 750 218, 223 + 1 2 2 . 1 22, 559 17, 067 3,402 26, 787 18, 729 3,530 13,833 11,416 1,940 275, 251 175, 315 34,184 114,853 + 139. 7 89, 231 + 9 6 . 5 14,139 + 1 4 1 . 8 42, 332 50,134 32, 093 525, 530 283, 981 + 8 5 . 1 18,873 20. 758 2,701 22,849 24, 815 2,470 14, 632 15, 994 1,467 238,855 261, 275 25, 400 122, 417 + 9 5 . 1 142, 526 + 8 3 . 3 19, 038 + 3 3 . 4 15, 974 18, 057 11, 757 197,241 96, 934 + 1 0 3 . 5 6,373 4,953 431 115, 310 77, 026 4,905 52, 392 + 1 2 0 . 1 40, 343 + 9 0 . 9 4,199 + 1 6 . 8 8, 893 6,615 466 10, 702 6,888 467 34, 752 21, 997 343, 684 194, 929 + 7 6 . 3 11,701 13, 163 1,444 17, 040 16, 268 1, 444 9, 593 10, 998 1,406 159,140 168,570 15, 974 83, 347 + 9 0 . 9 97, 232 + 7 3 . 4 14, 350 + 1 1 . 3 15, 377 19, 939 12, 809 201, 709 105, 089 + 9 1 . 9 8,380 5,103 1,894 11,167 6,446 2,326 7,116 4,110 1,583 112,156 65, 080 24, 473 54, 910 + 104.3 36, 493 + 7 8 . 3 13, 686 + 7 8 . 8 13, 575 17, 610 9,785 175,457 82,129 +113.6 6,140 7,291 144 7,741 9,709 160 4,901 4,789 95 82, 063 91, 698 1,696 40, 708 +101.6 40, 334 +127. 3 1, 087 + 5 6 . 0 _ 10, 469 13, 398 9,925 157, 759 86. 911 + 8 1 . 5 Federal . S t a t e m e m b e r . . ._ Nonmember _. 5,705 3, 325 1,439 7,965 3,821 1,612 5, 641 3,004 1,280 91, 743 48, 284 17, 732 47,922 + 9 1 . 4 25,102 + 9 2 . 4 13,887 + 2 7 . 7 33, 592 42, 548 27, 207 429, 018 232, 580 + 8 4 . 5 20, 078 13, 359 155 26, 452 15, 921 175 15, 773 11,274 160 245, 305 181, 255 2, 458 128,399 + 9 1 . 0 101,835 + 7 8 . 0 2,346 + 4 . 8 D e s Moines Federal . . State m e m b e r Nonmember L i t t l e Rock _. Federal State m e m b e r Nonmember Topeka San Francisco Federal State m e m b e r N o n m e m b e r . . . ._ January 1947 $266,108 $42, 979 $230, 588 $49, 334 $163,866 $116, 614 $869, 489 673 10, 848 23,112 8, 777 4,753 73, 813 461 21 180 3,481 3,905 494 1,246 4,893 15, 795 2,689 540 4,270 1,568 79 2,730 15, 522 3,165 47,161 473 1,427 254 11 682 977 507 410 597 271 55 268 53 2,052 4.683 1,230 N e w Y o r k ._ . 24, 090 2,950 19, 411 21, 430 23,120 N e w Jersey New York. 6,403 17, 687 968 1,982 6, 417 1,501 12, 994 19.929 6,202 16, 918 3,579 6, 561 25.070 76.071 Connecticut... Maine.. ... Massachusetts. New H a m p shireRhode Island.. Vermont— . . . 432 1,403 145 10,140 101,141 20, 586 2,443 21, 284 1,122 8,999 7,434 61, 868 Delaware... Pennsylvania.. West Virginia.. 324 18,471 1,791 157 1,942 344 280 18,480 2,524 135 987 366 7,649 984 116 6,860 458 1,378 54, 389 6,101 Winston-Salem.. 26, 765 7, 335 11, 324 366 24,769 10, 331 80, 890 A l a b a m a . _. __ D i s t r i c t of Col u m b i a . _ _. Florida Georgia. Maryland N o r t h CarolinaS o u t h CarolinaVirginia _. 1,364 1,505 1,221 1,308 1,295 6,693 4,014 5,464 3,308 6,932 2,276 589 2,818 482 2,737 342 307 911 336 715 700 1,619 2,368 2,247 667 813 1,689 366 2,352 10, 594 2,231 2,195 1,727 1,061 3,301 1,281 2,712 2,246 711 813 513 760 8,829 23,126 10, 495 12, 758 6, 394 3,312 9, 283 45,939 4,184 27,129 1,189 9,989 11,252 99, 682 4,649 39, 896 1,394 663 2,016 1,505 1,963 22,005 3,161 1,189 576 7,928 1,485 264 4,389 6,599 8,115 77, 423 14,144 Pittsburgh. C i n c i n n a t i - _ ._ Kentucky Ohio Tennessee Indiana . . Michigan 17,073 4,847 22, 900 21 5,562 5,947 56, 350 _ 9,881 7,192 2,087 2, 760 8,446 14, 454 21 1,758 3,804 1,238 4,709 23, 431 32,919 Chicago _ 29, 050 1, 715 14, 323 27 11,132 13,195 69, 442 22, 363 6,687 1,220 495 8,932 5, 391 27 6,459 4,673 11,564 1,631 50, 538 18, 904 16, 391 3,810 14, 051 768 8,097 9,127 52, 244 3,969 7,047 4,564 597 214 436 1,625 1,681 39 29 4,309 3,730 5,549 284 179 1.372 2, 765 3,608 222 130 763 3, 749 4, 521 83 11 10, 849 19, 684 19, 923 1,225 563 Illinois Wisconsin D e s Moines._ ._ Federal State m e m b e r Nonmember... Total 3, 418 785 19, 293 _ Indianapolis.. . 26, 308 Chicago Other I n d i - mortgav i d u a l s gees 25, 650 Boston.-. Federal State m e m b e r Nonmember Mutual savings banks Iowa Minnesota Missouri North Dakota. South Dakota.. L i t t l e Rock__ _ 768 13, 863 6,977 5, 816 12, 904 12, 225 51, 785 Arkansas . . Louisiana Mississippi N e w Mexico.-_. Texas 1,024 4,512 802 254 7,271 568 672 484 21 5,232 784 478 673 236 3,645 657 2,922 660 345 .8,320 76 1,270 460 34 10, 385 3,109 9,854 3,079 890 34, 853 T o p e k a __ Colorado Kansas N e b r a s k a . _._ Oklahoma San Francisco - Arizona ._ ._ California.__ _ I d a h o . . _ ._ ._ Montana Nevada Oregon. _. Utah.... Washington Wyoming 12, 370 1, 746 4,625 1,625 4, 374 34, 331 1,056 22, 447 819 589 215 2,176 779 5,899 351 1,654 53 613 435 553 6,391 193 4,633 81 59 42 560 208 587 28 6,377 1, 350 2,780 554 1,693 77,125 1,633 63, 768 533 597 366 2,325 1,235 6,274 394 7,447 3,278 1,152 680 2,337 43, 070 2,415 34, 277 520 554 598 2, 053 328 1,995 330 5, 969 33,817 7,910 1, 483 1,681 10, 851 3,483 189 2,616 11, 573 26, 241 188, 457 5,637 340 20, 274 145, 399 2,068 115 1,847 48 1, 299 78 8,459 1,270 2,925 375 3,682 19, 661 1.162 59 1,299 75 1,224 125 Table 9 . — M O R T G A G E RECORDINGS—Estimated volume of nonfarm mortgages recorded [Dollar amounts are shown in thousands] M u t u a l savings banks Banks and trust companies Insurance companies Savings a n d loan associations Individuals O t h e r mortagees All mortgagees Period Percent Total Total Percent Total Total ' Percent Percent Total Percent Percent Total Percent Total $2,009,707 35.7 $244,432 4.4 $1,091,021 19.4 $216,982 3.9 $1,402,103 24.9 $658,945 11.7 $5,623,190 100.0 J a n u a r y - N o v e m b e r . . 1, 815, 267 205,100 November 194,440 December 35.6 36.6 36.9 222,320 23,061 22,112 4.4 4.1 4.2 980,433 114, 636 110,588 19.2 20.5 21.0 191, 718 23,310 25, 264 3.8 1, 284, 720 4.1 130,986 4.8 117,383 25.2 23.4 22.2 601,308 63,087 57,637 11.8 11.3 10.9 5,095, 766 560,180 527,424 100.0 100.0 100.0 33.1 34.8 35.2 36.2 35.6 34.6 33.6 32.1 31.1 31.3 31.0 30.6 430,304 26,936 26,099 31,083 33,974 38,862 39,890 48,101 46, 527 47, 424 48,429 42,979 4.5 2,453,029 139,126 4.2 140,890 4.2 180,656 4.1 213,878 3.8 241,330 4.0 245,624 4.3 263,669 4.9 273,093 4.7 248,406 5.1 275,769 4.8 230,588 4.9 25.6 21.9 22.8 23.6 24.1 25.0 26.8 26.9 27.3 26.7 27.4 26.5 501,036 24,401 24,973 33,914 44,855 51,851 50,123 58,020 53,616 51,978 57,971 49,334 5.2 1,875,402 3.9 151,601 4.0 140,477 4.4 162,986 5.1 180,318 5.4 187,311 5.5 168,889 5.9 178,128 5.4 184,005 5.6 173,310 5.8 184,511 5.7 163, 866 19.6 1,147,106 23.9 71,633 22.7 68, 703 21.3 79,926 20.3 98,770 19.4 111,892 18.4 104,662 18.1 118,490 18.4 131, 257 18.7 117,213 18.3 127,946 18.9 116,614 12.0 11.3 11.1 10.4 11.1 11.6 11.4 12.1 13.1 12.6 12.7 13.4 9, 573,427 634,117 618, 763 765,973 887, 266 964,438 917,414 981,187 999, 221 928, 878 1,006,681 869,489 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1945__ 1946 J a n u a r y - N o v e m b e r . . 3,166, 550 220,420 January.. 217,621 February... 277,408 March 315,471 April 333,192 May. ... 308,226 June 314, 779 July 310, 723 August 2P0,547 September 312,055 October 266,108 November Table 1 1 . — F H A — H o m e mortgages insured Table 1 0 — G l L E N D I N G — H o m e loans [Dollar amounts are shown in thousands] N o . of a p plications a n d reports Cumulative through 156,786 209, 334 257,986 305, 503 371,142 420, 960 473, 784 524, 428 570, 883 A p r i l 26 M a y 31 June28 ___ J u l y 26 A u g u s t 30 __ __ S e p t e m b e r 27 __ October 25 ._ November 25. D e c e m b e r 25 _ . [Premium paying; thousands of dollars] T o t a l loans r e p o r t e d closed a n d disbursed 2 Title II T i t l e V I (603) Period A m o u n t of guaranty a n d insurance Number $245,046 283, 948 364, 514 454, 709 610,007 737, 342 886, 216 1,032, 596 1,165, 641 118,143 133,972 165, 737 200, 231 257, 471 303, 353 356, 804 409,112 455, 293 Principal a m o u n t of loan New $555, 541 634,812 804,907 994,778 1, 316, 554 1, 584, 444 1, 906, 743 2, 217, 347 2, 494, 547 1 2 Records of Veterans Administration. Totals do not include 67,774 loans acted upon and approved for loan closing. Their dollar volume, $416,974,000, brought the aggregate principal of Gl home loans to $2,911,521,000 on December 25. 1945: N o v e m b e r December 1946: J a n u a r y February. .. March April May . June July August .. September October November ._ ... . . . . ... Existing New Existing $1, 777 1,965 $18,887 18,051 $10, 261 10,836 $518 547 3,095 3,728 3,760 3,570 4,406 5, 573 6,374 5, 668 5,279 6,576 5,354 24,275 20, 006 24, 346 24,160 26,389 31, 551 26,956 20,831 20,713 26, 553 20,175 9,617 6,267 5,122 6,870 5,988 3,678 4,020 2,959 2,084 2,475 2,679 1,676 1,241 1,152 983 3,712 1,012 572 960 613 1,335 1, 164 Table 1 2 . — F H L B A N K S — L e n d i n g operations and principal assets and liabilities [Thousands of dollars] L e n d i n g operations, N o v e m b e r 1946 Principal assets, N o v . 30, 1946 C a p i t a l a n d principal liabilities, N o v . 30, 1946 Federal H o m e L o a n B a n k Advances Boston . . . _ P i t t s b u r g h . _. ______ Winston-Salem. . Cincinnati .. _. . . . ... Indianapolis. _ _ Chicago . _ ___ D e s Moines _ . _ Little Rock _ _ _______ _ Topeka San Francisco _ _ _ . _ _ __. N o v e m b e r 1946 ( C o m b i n e d total) October 1946 N o v e m b e r 1945 1 2 3 _ Cash i Government securities Capital 2 $4, 874 1,323 583 1,217 1,203 372 1, 498 1,281 537 945 692 $12,458 22,912 28, 871 30, 842 23, 556 22, 728 43,118 21,312 13, 420 11,713 27, 514 $3, 828 1,912 1,967 1,862 3, 087 1,827 1,708 354 898 2,261 2,215 $14,612 22,125 7,443 4,119 27,136 14, 234 8,473 9,944 9,118 8,039 19, 038 $21,193 29, 999 19,627 20, 722 29, 502 16,154 25, 984 15, 550 13, 383 11, 690 27, 771 20, 451 14, 525 258, 444 21,919 144,281 _ _... _ _ . _ _. _ __ _ Advances outstanding $246 3,339 1,942 2, 377 1,429 390 3,266 1,956 799 660 4,047 _ __ Repayments 32, 725 14,969 252,518 20,059 149,622 21, 213 10, 880 96, 931 56, 842 191,311 Bonds Member deposits Total assets N o v . 30, 1946 1 17,000 15, 000 12,000 16,000 22,500 15,000 10, 000 9, 500 14, 000 $839 17, 085 1,285 1.211 12, 519 6,784 4,951 1,181 165 921 7,188 231, 575 140, 000 54,129 426, 532 230, 075 140,000 53, 580 423,828 218, 645 3 68, 500 57,181 346,527 $9,000 $31, 048 47,106 38,458 36, 959 54,064 38, 964 53, 486 31, 761 23, 565 22,128 48, 993 Includes interbank deposits. Capital stock, surplus, and undivided profits. Debentures. 126 Federal Home Loan Bank Review Table 13 — I N S U R E D A S S O C I A T I O N S — P r o g r e s s of institutions insured by the FSLIC [Dollar a m o u n t s are s h o w n in t h o u s a n d s ] Government share capital $5,109,101 5,219,910 $23,366 23,366 $88,304 185,210 $151,335 144,664 $147,022 180,352 $92,650 71,777 63.0 39.8 5,299,668 5,361,314 5,432,080 5,507,923 5,589,795 5,724,893 6,798,380 5,869,338 5,922, 507 5,995,695 6, 056, 207 20,165 19,374 19,373 19,373 19,358 19,358 16,832 16,306 16, 306 16,305 16, 305 163,559 154,835 144, 111 145,744 159,546 189,908 187,401 196,495 216, 573 233, 503 238, 907 169,107 174,954 238,268 268,706 285,613 257,175 254,858 255,273 240,708 254,626 205, 776 283,487 182,679 198,176 198,896 196,973 219,825 296,710 207,782 185,754 202,178 172, 886 205,537 122,099 129,573 123, 265 116,370 86,017 224,686 140,849 135,144 129,272 112,127 72.5 66.8 65.4 62.0 59.1 39.1 75.7 67.8 72.7 63.9 64.9 3,271,317 3,348, 567 18,058 18,058 62,153 137,839 96,709 90,920 97,373 120,195 59,023 44, 352 60.6 36.9 3,395,108 3,435,482 3,481,382 3, 532,406 3, 586, 501 3,677,643 3, 716,445 3,758,827 3, 790, 634 3,839,002 3, 880, 142 15,250 14,540 14,539 14,539 14,539 14,539 12,380 11,956 11,956 11,956 11, 956 124, 242 118,501 109, 213 106,599 115,009 137,605 134,376 142,018 153,096 164,305 165, 077 109,146 111,927 155,960 174,468 186,282 167, 552 165,031 165,812 154,105 165, 742 131, 607 190,748 122,452 132,145 132,092 130,551 144,470 194,872 136,777 121, 872 132,882 113, 504 144,388 82,173 86,471 81,241 78,013 55,038 156,734 95,328 £0, 296 84,518 71, 952 75.7 67.1 65.4 61.5 59.8 38.1 80.4 69.7 74.1 63.6 63.4 1,837,784 1,871,343 5,308 5,308 26,151 47,371 54,626 53, 744 49,649 60,157 33,627 27,425 67.7 45.6 1,904,560 1,925,832 1,950,698 1,975,517 2,003, 294 2,047, 250 2,081,935 2,110, 511 2,131,873 2,156,693 2,176, 065 4,915 4,834 4,834 4,834 4,819 4,819 4,452 4,350 4, 350 4,349 4,349 39, 317 36,334 34,898 39,145 44,537 52, 303 53,025 54,477 63, 477 69,198 73, 830 59,961 63,027 82,308 94, 238 99, 331 89,623 89,827 89,461 86, 603 88,884 74,169 92, 739 60,227 66,031 66,804 66,422 75,355 101,838 71,005 63,882 69, 296 59, 382 61,149 39,926 43,102 42,024 38, 357 30,979 67,952 45, 521 44,818 44,754 40,175 65.9 66.3 65 3 62.9 57.7 41.1 66.7 64.1 70.2 64 6 67 7 Total assets Cash 2,474 2,475 $5,878,098 6,148, 230 $3,763,128 $307,712 $1,839,008 2,477 2,481 2,485 2,486 2,488 2,490 2,493 2,495 2,497 2,496 2,495 6,204,954 6, 274,832 6.359,998 6,462, 376 6, 592, 552 6,743,121 6,810,626 6,916,472 7,012, 249 7,114,023 7,183, 179 4,051,583 279,543 1,792,418 4, 519, 248 347,362 1,641,628 4,922,400 289, €03 1, 566,979 1,466 1,467 3,732,490 3,923,501 2,382,101 194,678 1,213,609 1,467 1,468 1,469 1,469 1,471 1,472 1,473 1,473 1,474 1,472 1,471 3,955,391 3,999,837 4,050,719 4,118,076 4,204,057 4,311, 747 4,344,421 4,411,389 4, 469,937 4,537,135 4, 580, 447 2, 571,919 169,884 1,175,285 2,886,641 221,431 1,067,943 3,151,813 180, 457 1, C04, 260 1945: N o v e m b e r . _ December— 1,008 1,008 2,145,608 2, 224,729 1,381,027 113,034 625,399 1946: J a n u a r y . February March April--. May. June July.... August September 1,010 1,013 1,016 1,017 1,017 1,018 1,020 1.022 1,023 1,024 1,024 2, 249, 563 2, 274,995 2, 309, 279 2,344,300 2,388,495 2,431,374 2,466, 205 2, 505,083 2, 542, 312 2,576,888 2,602, 732 1,479,664 109,659 617,133 1,632,607 125,931 573,685 1,770, 587 109,446 562, 719 Period a n d class of association Operations Federal Home Loan N e w pri- P r i v a t e New B a n k adv a t e inrepurvances mortgage vestchases loans ments P r i v a t e reGovernm e n t b o n d purchasable capital holdings N e t first mortgages held Number of associations Repurchase ratio ALL INSURED December February March April . MayJune July—. __ September FEDERAL February Mflrch April.. May. June July.... September November STATE Table 1 4 . — S A V I N G S — S a v i n g s and loan share investments and repurchases, November 1946 [Dollar a m o u n t s are s h o w n in t h o u s a n d s ] I n s u r e d associations All associations Period New investments 1945: J a n u a r y - N o v e m b e r November December. __. January 1947 ._ _._ Net inflow Repurchase r a tio New investments Repurchases Net inflow Repurchase ratio New investments Repurchases Net inflow Repurchase ratio $2,113,673 $1,201,983 $911, 690 56. < $1,696,617 $933,942 $762, 675 $417,056 $268,041 $149,015 64.3 118.881 94, 970 65,165 128, 915 64.6 42.4 147,022 180,352 92,650 71, 777 54,372 108, 575 63.0 37,024 43,533 26,231 23,193 10, 793 20, 340 70.8 53.3 1,892, 231 978,946 65.9 820,437 65.0 525, 831 367,322 158, 509 244.619 150,656 158,627 155,455 147,675 112,144 271, 568 176,823 169,863 162, 3"56 142,445 90,342 69,813 84,736 '92,622 99,038 157, 550 85, 368 78,431 60,160 88,160 72, 726 73.0 68.3 65.2 62.7 59.9 41.6 76.1 69.3 73.8 64.8 66.2 77,950 60, 580 68,603 75,631 80,603 133,808 72,024 66,933 50, 640 72,906 60, 759 72.5 66.8 65.4 62.0 59.1 39.1 75.7 67.8 72.7 63.9 64.9 51,474 37, 790 45,187 49,181 49, 740 49,869 60, 226 47, 472 44,269 48,338 42, 285 39, 082 28, 557 29,054 32,190 31,305 26,127 46,882 35,974 34,749 33,084 30,318 184,046 223,885 1946: J a n u a r y - N o v e m b e r January.. February March April May June July.... August September October November.._ Repurchases U n i n s u r e d associations 334,961 220,469 243, 363 248,077 246, 713 269,694 356, 936 255, 254 230,023 250,516 215,171 1, 524,\ 283, 487 182,679 198,176 198,896 196,973 219,825 296,710 207,782 185,754 202,178 172,886 205, 537 122,099 129, 573 123, 265 116,370 86,017 224,686 140, 849 135,114 129, 272 112,127 12,392 9,233 16,133 16,991 18,435 23, 742 13, 344 11,498 9,520 15. 254 11,967 69.9 75.9 75.6 64.3 65.5 62.9 52.4 77.8 75.8 78.5 68.4 71.7 127 Geographic Shifts Noted in Home Building • A N analysis by the Civilian Production Administration of permits for new nonfarm residences in the first nine months of this year revealed some interesting shifts in the distribution of prewar and postwar home construction. The study compared the percentage of dwellings started in each Census region with the total starts in the United States for the first nine months of 1946 and the same period of 1941. Sizable declines were found to have occurred in some eastern areas, while important gains have been made in the western sections of the country. In the first nine months of 1941, the states west of the Mississippi River accounted for 34 percent of the total new houses, while in the current year this same area was responsible for nearly 45 percent of all home construction. The CPA pointed out that these shifts have interesting implications for manufacturers of house- hold goods as well as for producers of building materials. Supplies allocated to dealers on an historical basis would be out of line with their current needs. Transplanted industries and the attendant changes in population only partly explain the difference between the 1941 and 1946 housing construction pictures, the report stated. Priorities Retained • TO correct a widespread impression that all priority assistance for housing under Priority Regulation 28 had been dropped, Housing Expediter Frank R. Creedon announced early in January that " C C " ratings would be retained as long as necessary to expedite the flow of critically short items. The amended Priority Regulation 28 provides that " C C " priorities may be issued to maintain or increase the production of "bottleneck" building materials or equipment needed for the construction of veterans' homes. GEOGRAPHICAL PATTERN OF NEW NONFARM DWELLINGS POINTS TO SHIFT IN MARKETS SINCE 1941 Percent Regioi Total SOURCE: BUREAU OF LABOR STATISTICS PREflftREO BY C M 128 Federal Home Loan Bank Review I • BRANCH CITIES OFFICERS OF FEDERAL HOME LOAN BANKS BOSTON B. J. ROTHWELL, Chairman; E. H. WEEKS, Vice Chairman; W. H. NEAYES. President; H. N. FAULKNER, Vice President and Assistant Treasurer; L. E. DONOVAN, Secretary-Treasurer; BEATBICS E. HOLLAND, Assistant Secretary; INDIANAPOLIS H. B WELLS, Chairman; FEBMOB S. CANNON, Vice Chairman and Vice President; FEED T. GBEENE, President-Secretary; G. E . OHMABT, Vice President-Treasurer; SYLVIA F. BBOWN, Assistant Secretary; CABOLTNE F . PHILIP A. HENDBICK, Counsel. WHITS, Assistant Treasurer; HAMMOND, BUSCHMANN & ROLL, Counsel. N E W YORK OEOBOE MACDONALD, Chairman; FRANCIS V. D . LLOYD, Vice Chairman; NUGENT FALLON, President; ROBERT G. CLABKSON, Senior Vice President; DENTON C. LYON, Vice President and Secretary; HAROLD B. DIFFENDEBFEB, Vice President and Treasurer; JOSEPH F. X. O'SULUVAN, Assistant Secretary and Office Attorney. PITTSBURGH E. T . TBIGG, Chairman; C. S. TIPPETTS, Vice Chairman; RALPH H. RICH* ABD3, President; G. R. PARKER, Vice President-Secretary; DALE PABK, Treasurer; WILLIAM S. BENDEB, Counsel. WINSTON-SALEM H. S. HAWOBTH, Chairman; E. O. BALTZ, Vice Chairman; O. K. LAROQUE, President-Secretary; Jos. W. HOLT, Vice President-Treasurer; SPBUILL THOBNTON, Counsel. CINCINNATI HOWABD L. BEYIS, Chairman; W. MEGBUB BBOCir, Vice Chairman; W. D . SHULTZ, President; W. E. JULIUS, Vice President-Treasurer; J. W. WHITTAKEB. Vice President; E . T . BERRY, Secretary; TAFT, STETTINIUS & HOLLISTEB, Counsel. CHICAGO 0 . E. BBOUGHTON, Chairman; H. G. ZANDEB, JB., Vice Chairman; A. R. GABDNEB, President; J. P. DOMEIEB, Vice President and Treasurer; CONSTANCE M. WEIGHT, Secretary; LAUBETTA QUAM, Assistant Treasurer; GERARD M. UNGABO, Counsel. D E S MOINES ROBEBT E. L E E HILL, Chairman; R. J. RICHARDSON, President and Secretary; W. H. LOHMAN, Vice President and Treasurer; A. E . MUELLER, Assistant Treasurer; J. M. MARTIN, Assistant Secretary; ROBEBT H. BUSH, Counsel. LITTLE ROCK B. H. WOOTEN, Chairman; W. P. GULLEY, Vice Chairman; H. D . WALLACE, President-Secretary; J. 0 . CONWAY, Vice President; W. F. TABVIN, Treasurer. TOPEKA W M . M. JABDINE, Chairman; HENBY A. BUBB, Vice Chairman; 'C. A. STEELING, President and Secretary; R. H. BURTON, Vice President and Treasurer; JOHN S. DEAN, Counsel. SAN FRANCISCO B E N A. PEBHAM, Chairman; Wif. A. DAVIS, Vice Chairman; GEBBR VANDBB E N D E , President; FRANK H. JOHNSON, Vice President; GUY E . JAQUES, Vice President; IRVING BOOABDUS, Vice President and Treasurer, Manager of Portland Branch; A. C. NEWELL,Vice President, Manager of Los Angeles Branch; E. M. JENNZSS; Assistant Secretary; E. E. PEARSON, Assistant Secretary; KATHLEEN MCCLIMENT, Assistant Secretary; L. F . NOLAN, Assistant Treasurer; G. H. MELANDEB, Assistant Treasurer VERNE DUSENBEBY, Counsel. 0 . S. GOVERNMENT PRINTING OFFICE: f»47
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