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Vol.4
No. 10
FEDERAL
HOME LOAN BANK
REVIEW
JULY
1938
ISSUED BY
FEDERAL HOME LOAN BANK BOARD
WASHINGTON D.C.
FEDERAL
CONTENTS
HOME
LOAN
BANK
FOR
SPECIAL
JULY
•
1938
ARTICLES
Page
Constitutionality of Federal savings and loan associations upheld
348
Home ownership and building society experience in England
351
An analysis of the building cost index
353
Federal Savings and Loan Insurance Corporation: Four years of progress . . . .
357
Cooperation in collecting mortgage recording data
358
The "Home Selector''
360
Window displays and outdoor advertising for savings and loan associations . . . 362
REVIEW
Published monthly by the
FEDERAL HOME LOAN
BANK BOARD
STATISTICS
Residential construction and homerfinancing activity
366
Indexes of small-house building costs
368
Monthly lending activity of savings and loan associations
370
Federal Savings and Loan Insurance Corporation
371
Federal Savings and Loan System
371
Federal Home Loan Bank System
373
Statistical tables
John H. Fahey, Chairman
T. D. Webb, Vice Chairman
William F. Stevenson
F. W. Catlett
374
Nos. 1, 2: Number and estimated cost of new family dwelling units
. . . .
374
No. 3: Indexes of small-house building costs
376
Nos. 4, 5, 6: Estimated lending activity of all savings and loan associations . . 377
W. H. Husband
No. 7: Monthly lending activity of reporting savings and loan associations . . 379
No. 8: Index of wholesale price of building materials
FEDERAL HOME LOAN
BANK SYSTEM
\
380
No. 9: Institutions insured by the Federal Savings and Loan Insurance Corporation
381
FEDERAL SAVINGS AND LOAN
ASSOCIATIONS
No. 10: Monthly operations of State-chartered insured associations
FEDERAL SAVINGS AND LOAN
INSURANCE CORPORATION
Nos. 12, 13: Federal Home Loan Bank System
382
Nos. 14, 15, 16: Home Owners' Loan Corporation
383
HOME OWNERS' LOAN
CORPORATION
m
. . . .
381
No. 11: Monthly operations of Federal savings and loan associations . . . . 382
REPORTS
Resolution of the Board
373
Directory of member, Federal, and insured institutions added during May-June . 385
SUBSCRIPTION PRICE OF REVIEW. The FEDERAL HOME LOAN BANE REVIEW is the Board's medium of communication with member institutions of the
Federal Home Loan Bank System and is the only oflacial organ or periodical publication of the Board. The REVIEW will be sent to all member institutions without
charge. To others the annual subscription price, which covers the cost of paper and printing, is $1. Single copies will be sold at 10 cents. Outside of the United States,
Canada, Mexico, and the insular possessions, subscription price is $1.60; single copies, 15 cents. Subscriptions should be sent to and copies ordered from Superintendent
of Documents, Government Printing Office, Washington, D. C.
APPROVED BY THE BUREAU OF THE BUDGET.
75996—38
1
CONSTITUTIONALITY OF
FEDERAL SAVINGS AND LOAN ASSOCIATIONS
UPHELD
•
T H E constitutionality of creating Federal savings and loan associations was upheld by the
United States Circuit Court of Appeals (Seventh
Circuit) at Chicago in a decision handed down on
May 20, 1938.1 The Court, by a decision in which
two of the three judges concurred, affirmed the decision of the District Court of the United States for
the Western District of Wisconsin which declared
that the Act providing for the incorporation of Federal savings and loan associations was constitutional
and which restrained the Attorney General of the
State of Wisconsin and the Banking Commission of
the State from hindering the First Federal Savings
and Loan Association of Wisconsin, located in Milwaukee, in transacting business as a Federal association within the State of Wisconsin.
The majority opinion, written by Circuit Judge
Major and concurred in by Circuit Judge Treanor,
held that Federal savings and loan associations are
constitutionally created. The first ground stated
by the Court in its decision held that these associations were validly created under the constitutional
power of Congress to create fiscal agents. The Court
pointed out that it is now a settled matter, not subject to dispute, that Congress has the power to create
financial corporations as fiscal agents of the Government. The Court said: "We are not concerned so
much with the intention of Congress as with the
language actually employed in creating such agencies,
and the necessity for the same is a matter with which
the courts are not concerned. As was said in
Farmers and Mechanics National Bank v. Dearing,
supra, 34: 'Of the degree of the necessity which existed for creating them, Congress is the sole judge.'
The intention or motive of Congress in creating such
associations and designating them as fiscal agents,
is a matter entirely within the legislative province."
The Court quoted with approval a statement by the
Supreme Court in the case of McCray v. United
i Until the decision is reported in the Federal Reporter in due course, mimeographed copies may be obtained from the Editor of the FEDERAL HOME LOAN
BANK R E V I E W .
Digitized for348
FRASER
States,2 discussing the right of the Court to review
the motives of Congress in exercising powers granted
it under the Constitution: " B u t this reduces itself
to the contention that, under our constitutional
system, the abuse by one department of the government of its lawful powers is to be corrected by the
abuse of its powers by another department." The
Circuit Court in the present case reached the following conclusion: "Under our tri-system of government,
it appears not only logical, but sustained by authority
that none of the three branches has any right to question the motive that prompted action on the part of
another, but always the question is reduced to that
of power or authority to do that which is assailed."
"If there is any question of the right of Congress
to provide for the creation of such Federal savings
and loan associations and their designation as fiscal
agents of the Government/' the opinion declared,
"it seems to us that doubt is dispelled by the Supreme Court in the case of Smith v. Kansas City Title
and Trust Company," in which the United States Supreme Court, in 1921, upheld the constitutionality
of the Federal land banks and joint stock land banks.
Another ground for the decision is the general
welfare clause of the Constitution, which provides
that Congress shall have power to lay and collect
taxes to provide for the general welfare of the United
States. The Supreme Court recently sustained the
validity of certain provisions of the Social Security
Act upon the authority of Congress to spend money
to provide for the general welfare. The Circuit
Court in the present case ruled that: "To our mind
the preservation of home owners and the promotion
of a sound system of home mortgage is none the less
national in scope than the provisions for the unemployed and the aged. I t s scope, as affecting the welfare of the Nation as a whole, is of equal importance.
To say that Congress has the authority to make provision for one class but not the other is to make a distinction justified by neither logic nor common sense.
-195 U. S. 27, 54.
Federal Home Loan Bank Review
The problem presented in one case is no less national in its aspect than that presented in the other.''
The line of demarcation between a particular and
general welfare must be determined largely by solving
the question of whether the problem presented is national in scope or merely local, the opinion stated:
"Congress, not the courts, is charged with responsibility of making such determination." In support
of this conclusion, the Circuit Court quoted the following language of the Supreme" Court in Helvering
v. Davis3: "The line must still be drawn between one
welfare and another, between particular and general.
Where this shall be placed cannot be known through
a formula in advance of the event. There is a middle
ground or certainly a penumbra in which discretion
is at large. The discretion, however, is not confided
to the courts. The discretion belongs to Congress,
unless the choice is clearly wrong, a display of arbitrary power, not an exercise of judgment. This is now
familiar law. 'When such a contention comes here we
naturally require a showing that by no reasonable possibility can the challenged legislation fall within the
wide range of discretion permitted to the Congress.' "
DISSENTING OPINION
The dissent of Judge Sparks is practically summarized in these excerpts from his dissenting opinion:
"Under the Act here involved no bank is created or
authorized, and banking powers are expressly denied
to the institutions sought to be established. It is
obvious that the Act is not in aid of the Government's
power to borrow money. No question is raised as to
the scope of the war power, or of the power of eminent
domain, or of the power to regulate transactions
affecting interstate or foreign commerce. Indeed,
no express power under the Constitution, save that
of the general welfare clause, has been suggested as a
basis to support the fiscal powers referred to in the
enactment. Likewise, the fiscal powers and duties
created do not in any manner affect the institution
and operation of the Building and Savings Associations authorized under the Act. . . . I think that
subsection (k) adds nothing to the validity of the Act.
"The only other delegated power upon which
appellee seeks to base the validity of the enactment
is the general welfare clause. . . . I think . . .
that the relief sought to be extended by the Act is
local rather than national. Here we have a sovereign
State objecting not only on that ground but on the
further ground that the relief as extended is not
•301TJ. S.619, 640.
July 1938
necessary, and is in violation of her laws. Her
determination as to lack of necessity should be given
great weight, and if that determination is correct,
and there is a necessity for relief in other States, it
would support the conclusion that the question is
local rather than national."
Judge Sparks does not agree with the majority of
the Court that the courts are not concerned with the
necessity for creating fiscal agents, that being for
Congress to determine.
He does not feel that national welfare is served.
He feels that merely local welfare is affected, and
disagrees with the majority opinion which held that
the discretion in determining the line of demarcation
between a particular and the general welfare belongs
to Congress and not to the courts.
He also differs with the decisions of the Supreme
Court in United States v. Butler and in Helvering v.
Davis that the Hamiltonian view of the general welfare clause of the Constitution is correct. He
presents a long argument for the Madisonian view
of the general welfare clause.
HISTORICAL KEVIEW
OF POWERS OF FEDERAL GOVERNMENT
IN CREATING FINANCIAL CORPORATIONS
This decision rendered by the Seventh Circuit
Court of Appeals is a leading case in the field. In
only a few earlier cases have the courts passed upon
the power of the Federal Government to create
financial corporations. The first two cases involved
the creation of the Second Bank of the United States
in the early history of the country; in 1921 the
Supreme Court upheld the validity of the Federal
land banks in Smith v. Kansas City Title and
Trust Company 4; and, in 1936, the validity of the
creation of national farm loan associations.5
The significance of the majority opinion of the
Seventh Circuit Court of Appeals can be better
appreciated in the light of proper historical perspective of the powers of Government in creating financial
corporations. The creation of the Bank of the
United States by Congress on February 25, 1791,
initiated the establishment of a national financial
system and is the first use of the Federal Government's power to create financial corporations. When
the charter of the Bank of the United States expired,
the Second Bank of the United States was created
on April 10, 1816. Its constitutionality was chal«255 U. S. 180.
» 300 U. S. 194.
349
lenged in two famous cases: McCullochv. Maryland6 in
1819, and Osbornv. Bank of the United States7 in 1824.
The Supreme Court sustained the validity of the power
of Congress to create such financial corporations in the
famous opinions in such cases by Chief Justice Marshall, who held that the authority to create such corporations was clearly within the scope of the powers
granted to Congress by the Constitution.
There were no more direct attacks upon the constitutionality of financial corporations created by the
Federal Government until the validity of the Federal
land banks was challenged in the case of Smith v.
Kansas City Title and Trust Company, decided by
the United States Supreme Court in 1921.
During this period of more than 100 years from the
decision of the Supreme Court in McCvlloch v. Maryland, the national financial system was greatly expanded and integrated. In 1864, the National Bank
Act authorized the Comptroller of the Currency to
charter national banking associations. Although the
constitutionality of this Act has never been directly
challenged, the Supreme Court over and over again
has clearly indicated that it regarded the exercise by
Congress of the power to establish national banks as
valid under the Constitution.
The Postal Savings System was established in 1910
and the Federal Reserve System in 1913. The Federal Reserve System, together with the National Banking System, provided a coordinated structure of
financial corporations to serve commerce and industry.
The Supreme Court on February 28, 1921, sustained the validity of the Federal Farm Loan Act of
1916 which created the Federal Land Bank System.
It is very interesting to note that the present Chief
Justice Charles Evans Hughes, then a practicing
attorney, as counsel representing the Federal Land
Bank of Wichita, reiterated an argument which he
had presented as early as 1917 at the request of a
number of investment houses, in an opinion holding
that the Federal Farm Loan Act was constitutional
and that the Farm Loan Bonds issued under that
Act were valid securities and exempt from taxation.
In 1920 he urged his views strongly before the
Supreme Court and based one of his arguments for
the constitutionality of Federal land banks on the
power of Congress to "provide for the common
defense and general welfare of the United States".
He adopted the Hamiltonian construction of the
general welfare clause and maintained that this
clause did not confer an independent power upon
• 4 Wheat. 316.
19 Wheat. 873.
350
Congress, but prescribed the limits of the taxing power:
that is, the general welfare clause defined the objects
for which public money may be expended by Congress. Mr. Hughes summed up his reasoning based
upon the general welfare clause in these words: "I am
unable to conclude that in this plan Congress has transcended its authority of appropriating public money.''
His argument in the Supreme Court also supported
the constitutionality of the Federal Land Bank
System by reason of the power of Congress to establish fiscal agents and the power to create corporations
for the purpose of borrowing money on the credit of
the United States, and he found that the Federal
land banks were lawfully created agencies of the
United States because: "They are constituted fiscal
agents of the Government and are bound to perform all
reasonable duties imposed upon them as such agents."
The Supreme Court chose to render its opinion
solely upon the reasoning that Congress had the
power to establish fiscal agents, and ignored the
general welfare argument.
Before the question of the validity of creating these
nationally chartered savings and loan associations
to provide home-mortgage credit was presented by
the present case, the Federal Government had already
been declared to be within its constitutional powers
in creating an integrated banking system to serve
commerce and industry and a parallel integrated
mortgage banking system to provide farm-mortgage
and agricultural credit.
In July 1932, Congress established the Federal
Home Loan Bank System for the provision of homemortgage credit, and in June 1933 Congress authorized the Federal Home Loan Bank Board to charter
Federal savings and loan associations, which were
required to become members of the Bank System,
"in order to provide local mutual thrift institutions
in which people may invest their funds and in order
to provide for the financing of homes".
Before the constitutionality of this legislation was
challenged, Congress had created a number of financial corporations wholly owned by the United States
Government—the Reconstruction Finance Corporation in January 1932, the Home Owners' Loan Corporation in June 1933, the Federal Deposit Insurance
Corporation in June 1933, the Federal Farm Mortgage Corporation in January 1934, and the Federal
Savings and Loan Insurance Corporation in June
1934. The courts have upheld the constitutionality
of the creation of several of these Government corporations; in fact, of all such corporations that have
been before the courts for review.
Federal Home Loan Bank Review
H O M E OWNERSHIP AND
BUILDING SOCIETY EXPERIENCE IN ENGLAND
In a recent talk Sir Harold Bellman of London focused attention on his
country's record housing output since the War.
The REVIEW briefly sum-
marizes some of the most pertinent factors in England's housing achievements
•
T H E remarkable record made by Great Britain
in recent years in overcoming its post-War housing shortage was clearly brought out by Sir Harold
Bellman, London, England, managing director of the
second largest building society in the world, in his
recent talk before 500 persons attending the United
States Building and Loan League banquet in his
honor. Sir Harold pointed out that in the 20-year
period since the Armistice 3,500,000 low-cost houses
have been constructed in England and Wales,
through the joint efforts of private enterprise and
national and local authorities, increasing the available
housing accommodation by nearly 50 percent. Approximately $10,500,000,000 was invested in these
homes, on the basis of $3,000 per house and lot.
I n the few years preceding the English financial
crisis of 1931, the housing output averaged less than
200,000 a year. Three years later, however, it had
exceeded 300,000 a year and in 1936 reached 350,000.
Most of these houses were erected by private
builders. This would have been impossible without
the cooperation and aid of the building societies.
These societies have helped to finance at least 2,000,000 of the 3,500,000 dwellings erected during the past
two decades. Today English building societies,
which are comparable to our savings and loan associations, have assets totaling $3,500,000,000—an
increase of more than $3,000,000,000 since the War.
Their shareholders number approximately 2,800,000
and during recent years well over $500,000,000 per
year has been advanced to their 1,300,000 borrowers.
Since 1934, the average new home loan has amounted
to $2,875.
Home ownership is spreading fast in England;
many families in the middle and low income groups,
who in the past were renters, are now achieving home
ownership. Quite naturally our first thought is:
July 1938
How have the families of these two income^brackets
been able to purchase homes?
First, relatively stable wages of the English wage
and salary earner and declining living costs provided
a considerable margin of surplus income. For example, the total of salaries and wages had declined
3 percent between an average of the years 1924-1927
and the year 1932. On the other hand, total expenditures for food, clothing, liquor, and tobacco
fell 15 percent between the same periods and have
not tended to rise since then. This increased margin
of purchasing power, coupled with less stringent
mortgage conditions, probably has been the fundamental factor in stimulating building since it meant
money in prospective home owners' pockets for
down-payments and large sums of easily obtainable
credit on increasingly liberal terms. Subsequent
to the War Loan conversion in 1932 which resulted
in a reduction in the return on Government obligations, many large investors switched a substantial
amount of their funds into the savings media, thereby
giving the societies a much larger volume of funds
that could be used for new mortgage advances.
Second, in recent years mortgage conditions have
been particularly favorable as opposed to those following the War, when the cost of money as well as
labor and materials was extremely high. Small
down-payments, low interest rates, and long amortization terms make it almost as reasonable to buy as
to rent today. Building societies have been accepting down-payments as low as 5 percent (more often
10 percent), the balance amortized over periods of
from 20 to 23 years. Interest rates at the present
time range from 4}£ to 5 percent, whereas in 1920 they
ran as high as 6% percent. Since that time charges
for mortgage money have decreased steadily—in
1925 they stood at 5.9 percent; in 1929, 5.8 percent;
351
in 1933, 5.6 percent; and in 1935, 5.2 percent—keeping pace with a general lowering of all other
interest rates.
Normally building societies would advance only
75 percent of the value of the property on first
mortgages but with the introduction of the "pool"
system, however, advances up to 90 percent, in some
cases 95 percent, are allowed. This system protects
the society by requiring the builder to put up a
small "deposit" representing the difference between
the normal loan and the loan actually made. The
deposit remains in a pool with the society until the
mortgage is sufficiently reduced. In this way the
society holds a security to cover possible loss resulting
from default. The mortgagor is correspondingly
benefited as his down-payment or "personal stake"
is much smaller than would be the case if he were
required to make the normal cash deposit.
STANDARDS OF CONSTRUCTION
The average English house, costing about $3,000
and built by private enterprise for the middle and
low income groups, consists of three bedrooms,
living room, kitchen, bath, and garden. In no case
are there less than four rooms. These homes are of
a minimum standard and do not have the usual
amenities such as basement, central heating, refrigeration, or closets.
This type of small house is decidedly more popular
in Great Britain than apartments; the latter are
built only in industrial towns where proximity to
factories or other working centers is essential. These
apartments are of necessity somewhat smaller than
the average house described above and have the
same lack of conveniences.
To insure against future overcrowding, the government has passed laws limiting building to 8 houses
per acre in rural districts, 12 per acre in cities.
While there is no restriction as to the types of
houses, the most common at present are the double
or 2-family house and the row house.
CONSTRUCTION COSTS AND COOPERATION IN THE
CONSTRUCTION INDUSTRY
The cost of materials as well as of labor declined
considerably in 1928 and there has been no appreciable rise since then. This downward trend has been
maintained principally by improvements in methods
352
and materials. The buying of materials in bulk on
long-term contracts also has kept construction costs
at a low level.
Of the total cost of construction, labor accounts
for only 30 to 35 percent, which probably rims a
little less than the average percentage in the United
States. Wage rates are determined by the National
Joint Council for the Building Industry, composed of
building trade employers and employees, but reduced
labor costs are due largely to regularity of work.
This is due in part to year-round construction in
many parts of the country, and to the fact that there
are very large construction companies actively engaged in building homes. To assure uniform wage
rates, all labor in England is divided into two groups:
skilled and unskilled—unskilled labor being apportioned 75 percent the wage amount of the skilled.
The basic wage is determined by the cost of living
index and is revised periodically as this index
fluctuates.
There is further evidence of cooperation between
the various elements of the building industry. Supported and approved by the Minister of Health, the
Building Industries National Council includes the
building societies, home builders, architects, and surveyors. To quote from a recent issue of the London
Economist, "Any competent builder willing to observe the agreed standards may register with the
council, which will then undertake regular and independent inspection of his work while it is in progress,
and will issue a certificate to the purchaser that the
house conforms to sound and reasonable standards
of construction.,, However, adoption of this service
is left up to the building industry and also the
purchaser.
The National Association of Building Societies,
comparable in its relation to building societies to the
United States Building and Loan League and its
member building and loan associations, was founded
in 1869 "to watch proceedings in Parliament. . .
and to further the interests, privileges, and advantages of such societies". After its dissolution in June
1936, the Building Societies Association was formed
to carry on this work.
The Joint Council, the National Council, and the
National Association already have contributed much
towards the hoped-for coordination of the building
industry. Their achievements are proof that England has learned many important lessons in trade
cooperation.
Federal Home Loan Bank Review
AN ANALYSIS OF THE BUILDING COST INDEX
This second in the series of articles analyzes the cost of materials used in building the
standard house.
Based on the building cost index published monthly in the REVIEW,
it covers 27 cities, located in four Federal Home Loan Bank Districts, reporting in May
•
THE first article in this series, which appeared in
the May issue of the REVIEW, provides a background for the present discussion. Reports from all
the cities covered by the index were averaged to show
the trend of total material and total labor costs involved in building the standard house on which the
index is based. The trend of average building costs
has been a simple one: from the time the index was
started in January 1936 until September 1937, average costs for the country rose at a continually increasing tempo. Since then they have been declining
slowly. Following this trend closely from month to
month, the REVIEW was able as early as August 1937
to point out that costs had started to decline in some
cities and would probably fall more generally: in spite
of the fact that the public was only then becoming
aware of the rise in costs.
Behind this average trend, however, lie the diverse
trends of material and labor costs and the local cost
fluctuations of the individual cities. Material costs
followed total costs closely, being a heavy contributor to the rise and almost the sole contributor to the
fall; while labor costs, although rising at a rate parallel to material costs, levelled off in the fall of 1937
instead of declining. It was not until recent months
that labor costs showed signs of decreasing. Local
cost fluctuations and cost levels and the factors which
affect them will be discussed in this and subsequent
articles.
The present article will be devoted to the first group
of reporting cities. (The 90 reporting cities are
divided into three groups of cities. Each group,
covering four Federal Home Loan Bank Districts,
reports quarterly in a different cycle of months.)
The materials used in building the standard house
have been classified by general types, the costs of
which are shown as yearly averages for 1936 and 1937
in Table 2. Such averages have been taken to give a
measure of regional variations in cost in the least
cumbersome way. They do, of course, obscure the
July 1938
trend of costs, but that is given in Table 1 as an average for all the 27 cities in this reporting group. For
purposes of analysis, a brief explanation of the
material groups discussed in this article follows.
Unfinished lumber is self-explanatory. It is listed
as Short Leaf Pine, Western Fir, or customary local
stock. Mill work consists of frames and sash, interior and exterior doors, trim, kitchen dressers, and
stair material. Finished lumber, the cost of which is
affected by much the same factors as mill work, consists of shingles, sheathing, siding, molding, ceiling,
finished flooring, and shelving. Under miscellaneous
items, furring, lath, and insulation have been listed.
Although insulation is included with the lumber
group, it may be of any accepted type: Wall, roll,
quilt, or board.
The masons7 materials are those commonly used in
small-house construction: trap rock or gravel, sand,
cement, lime, plaster, and brick. Because of the wide
variation in the cost and type of hardware, only a few
major items have been listed to simplify the reporting
procedure. These are nails and necessary cast iron
chimney pieces. This accounts for the small total
cost of hardware items.
To give the best index of trends in paint material
costs, the basic elements have been listed rather than
the manufactured product. This is in conformity
with the common practice of mixing paint at the site.
Heating supplies consist of a boiler, fittings, and
radiators for a steam heat system. The plumbing
353
supplies include fixtures and fittings in chromium
finish for kitchen, bath, lavatory, and laundry.
For a more complete description of materials used,
see the article in the FEDERAL HOME LOAN BANK
REVIEW for January 1936, reprints of which may be
had free of charge by writing to the Editor.
PLAN OF STANDARD HOUSE
There has been a great deal of misunderstanding
about the meaning of the phrase "specifications of
the standard house" which is used so frequently in
connection with the building cost index.
These "specifications" are a much simplified list
of material items used in building a small 6-room
frame house. The list has been simplified to facilitate reporting, but the items have been carefully
selected so that the total index would truly reflect
building cost trends.
In the past, it has been thought advisable not to
develop any plans of the standard house because of
the possibilities of misunderstanding arising from a
comparison with the specifications. However, that
policy is reversed with this issue to assist in the
present analysis of the component parts of the index.
On the facing page are plans of a house prepared for
the Home Building Service Plan which corresponds
in all but minor details with the specifications. The
house is frame, of 24,000 cubic feet volume. It has
six rooms, an attached 1-car garage.
These illustrations permit some evaluation of the
type of house used as a basis and the probable effect
of that type on the proportion of materials used and,
consequently, on the trend of costs as affected by
different materials. In comparing the illustration
with the total cost, however, caution must be exercised for the cost is not of the house completed and
ready for occupancy. A brief explanation of the
basis of the index is given in the footnote to Table 3
on page 376.
TREND OF COSTS
Without exception, the cost of all types of materials used in building the standard house reached a
peak in the summer of 1937 and declined thereafter.
Labor costs, on the other hand, continued to increase
through December of that year. (This applies, however, only to this one group of reporting cities. As
was mentioned at the beginning of this article, the
average labor cost for all reporting cities leveled off
early in the fall of 1937. The reason for the difference lies in the variation in reporting periods between
the three groups of cities.) These interesting material-labor fluctuations are based on the average cost
of material items used in constructing the standard
house, as shown in Table 1. The average is for the
group of 27 cities reporting in the first cycle. The
proportions of materials used are, of course, conditioned by the standard house itself. Lumber constitutes nearly 55 percent of the total material cost,
while heating and plumbing represent over 20 percent, masons' materials slightly less than 20 percent,
and hardware and painters' materials together about
5 percent.
Table 7.—Average cost of materials and labor used in constructing a standard 6-room frame house,
by reporting periods
[Includes reporting cities in Boston, Winston-Salem, Chicago, and Topeka Federal Home Loan Bank Districts]
1937
1936
Total lumber
Unfinished lumber
Mill work
Finished lumber
Miscellaneous items.
Masons' materials
Hardware
Painters' materials
1938,
March
June
Sept.
Dec.
March
June
Sept.
Dec.
__ _ $1, 678
$1, 698
$1, 734
$1, 776
$1, 896
$1, 932
$1, 939
$1, 894
$1, 850
302
527
640
209
302
535
646
215
305
552
659
218
307
568
675
226
339
603
721
233
343
623
731
235
351
622
730
236
329
622
709
234
320
604
694
232
641
94
84
648
93
85
648
92
85
647
93
84
650
96
88
657
101
90
651
102
90
647
102
89
644
101
86
March
__
_
670
669
674
692
731
759
774
761
742
261
409
256
413
259
415
267
425
277
454
291
468
300
474
293
468
286
456
Total materials.
3,167
3,193
3,233
3,292
3,461
3,539
3,556
3,493
3,423
Total labor
1,527
1,557
1,582
1,585
1,627
1,665
1,695
1,699
1, 688
Total heating and plumbing
Heating supplies
Plumbing supplies
354
__
Federal Home Loan Bank Review
• ••*•
V
*
^ y e * -
w
(...A
SECOND
FLOOH
A house that follows closely the standard house specifications
EARL H. REED, ARCHITECT, CHICAGO
July 1938
75996—38-
355
The fluctuations in costs during the past two years
have affected these proportions somewhat. For
March of 1936, 1937, and 1938, they are as follows:
March March
1986
1987
Percent Percent
Lumber
52.9
Masons' materials
20.2
Hardware
3.0
Painters' materials
2. 7
Heating and plumbing supplies. 21. 2
Total materials
100.0
(Source: Division of Research & Statistics, Federal Home Loan Bank Board)
March
1988
Percent
DECREASE (%)
5
54.8 54.0
18.8 18.8
2.8
3.0
2. 5 2. 5
21. 1 21. 7
100.0 100. 0
There was also a surprising correlation between
the rate of increase of these material groups. The
rate of increase in costs reached a peak during the
winter of 1936-1937. Between December and
March the cost of all materials rose 5.1 percent; the
greatest rise during this reporting period of any
material group was in unfinished lumber which
increased 10.4 percent. During this period labor
costs rose 2.6 percent which was also a maximum.
Declines in masons' materials, finished and milled
lumber began between June and September 1937
and were followed during the last reporting period
of the year by the other groups. The trends shown
in this table should be kept in mind in the analysis
of Table 2.
The chart in the next column shows how yearly
average costs have changed between 1936 and 1937
for the four Federal Home Loan Bank Districts
covered in this study. In District 1, the New England area, total material costs rose more than in the
other three Districts, but labor costs rose less than
half as much as in the others. The increase in
material costs in that area was principally due to a
considerable rise in lumber costs in every reporting
city and to an even greater but less uniformly distributed rise in the cost of heating and plumbing
supplies of 14.0 percent.
In direct contrast to District 1 is District 10 where
labor costs increased more than in any of the other
Districts and material costs increased least. In
consequence, the 1936 average labor cost was $90
less in District 10 than District 1, but the 1937
average was $23 more.
Masons' materials was the only group which
resisted to any extent the trend of costs in 1936 and
1937. The cost of this group increased slightly in
Districts 1, 4, and 7, and declined 0.5 percent in
District 10. There were, however, declines in the
cost of masons' materials in some cities in each
District, the greatest decline, of 5.9 percent, taking
place in Columbia, South Carolina.
(Continued on p. 384)
356
PERCENT INCREASE OVER 1936 IN 1937 MATERIAL
AND LABOR COSTS for constructing a standard six-room
frame house in 4 selected Federal Home Loan Bank Districts
0
5
n—i—i—r
INCREASE (%)
10
n—i—i—r
n—i—i—r
15
"i—m—r
LUMBER
+ 13.2
I
4
7
10
+ 10.4
+ 11.9
+ 10.6
MASONS MATERIALS
HARDWARE
2 7
or
H 10
2
I
7
< 10
o
2
|
o
x 4
7
2»o
u
o
UJ
U-
I
4
7
10
I
4
7
10
I
I
I
1
1
O
J I
1 1
5
LJL
I
10
I
I I
15
Federal Home Loan Bank Review
FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION
FOUR YEARS OF PROGRESS
(JUNE 27, 1934-JUNE 27, 1938)
Number of Insured Institutions
2,008
Assets of Insured Institutions
$2,000,000,000
Number of Shareholders in Insured Institutions
1,900,000
Record of Insured Institutions
1. Net private investment in
insured institutions increased 11.7
percent dining 1937.
2. Aggregate reserves of insured institutions are almost 10
percent of their aggregate assets.
3. Net cash earnings of insured institutions are approximately 4 percent of invested
capital.
^ms^
How Insurance Protects
the Institution
SAFETY
1. The Corporation is empowered
to prevent a default by
ISTMENT
making a contribution or loan
to, or by purchasing assets of, an
insured institution.
2. This same procedure can be
followed to restore an institution in default to normal operation.
3. Insurance of accounts promotes confidence among invesIncome of Corporation
tors, since each investor is protected up to $5,000 against loss. In the event of deAbout $6,000,000 annually, consisting of interest
fault and liquidation, the Corporation will give the
on investments, premiums, and admission fees.
insured investor the opportunity of accepting an
Operating Expense of Corporation
account in an open insured institution equal to his
Not one dollar of the interest on the original capital
insured investment in the defaulting association. If
funds or of premiums paid is currently used to pay
he prefers, he may accept 10 percent of his insured
expenses. Total annual expense, which is less than
investment in cash immediately, 45 percent in cash
within 1 year and the remaining 45 percent in
5 percent of income, has been met from interest recash within 3 years from the date of default.
ceived on invested reserve funds.
INSURED
FINANCIAL STATEMENT
FEDERAL SAVINGS A N D L O A N INSURANCE CORPORATION
JUNE 30# 1938
ASSETS
LIABILITIES
Cash—U. S. Treasury
Accounts Receivable
Investments—U. S. Govt, and Govt.
Guaranteed Bonds
Accrued Interest
Total Assets
July 1938
$118, 044
527,155
112, 849, 614
583, 070
$114, 077, 883
Accounts Payable
Deferred Income
Capital
Reserve
Total Liabilities
$4, 790
948, 369
100, 000, 000
13,124, 724
$114, 077, 883
357
The awareness of the need for adequate data has
increased tremendously in recent years. National
organizations collect valuable information both with
their own field forces and through the cooperation of
private local agencies. An example of the latter is
the submission of monthly reports of mortgage lending by about 2,700 savings and loan associations to
the Federal Home Loan Bank Board. Further work
is being done locally by far-seeing mortgage lenders
who recognize the need for information. In the May
issue of the REVIEW the subject of business reviews
published by various universities and the information
that is available in some of them on construction and
financing was discussed.
The local character of residential markets makes
home financing first of all dependent on a knowledge
of local lending conditions. But that local information must be supplemented by a broader knowledge
of general conditions. Superficially the volume of
local activity may seem to fluctuate entirely independent of national averages, but a view of the activity of many institutions over a period of years will
reveal that it does not. In spite of its local character, home financing and building are fundamentally
affected by national conditions.
If the lender knows how his activities relate to
those of his competitors and how the lending struc-
COOPERATION
IN THE COLLECTION OF
MORTGAGE DATA
•
AN important step in analyzing the violent fluctuations in building volume and in mortgage
financing will be taken when adequate information is
available to show the extent and effect of those
fluctuations. Without statistics which reflect true
conditions, both national programs and the programs
of the individual institution are hampered. Attempts by trade organizations and others to arouse
public awareness of conditions or to advertise a particular trade lose a part of their effectiveness if they
cannot state with some certainty just what the particular group did and what they are capable of doing.
The same thing applies to the individual institution.
A knowledge of what other types of lending institutions are doing affords a yardstick which is valuable
not only as a check of operations but in advertising
for new business.
Volume of mortgage recordings in the first quarter of 1938, classified by type of mortgagee
[Thousands of dollars]
Area
1
Massachusetts
Hamilton County
(Cincinnati, Ohio)
Cuyahoga County
(Cleveland, Ohio)
Marion County
(Indianapolis, Indiana)
Wayne County
(Detroit, Michigan)
Cook County
(Chicago, Illinois)
Milwaukee County
(Milwaukee, Wisconsin)
King County
(Seattle, Washington)
Los Angeles County
(Los Angeles, California)
Total
Building,
savings
and loan
associations
Banks
$12, 066
8,191
$8, 184
1,931
1,698
4,164
1,660
574
2,613
1,104
848
4,966
806
3,266
5,174
574
2,080
22, 424
Insurance
companies Individual
(2)
$821
2,435
3,089
535
309
Total
0
0
$28, 234
11, 080
3,442
$798
14, 422
2
756
0
3,730
2
()
3,020
0
9,949
2,067
1,182
0
11, 571
1,152
1,573
1,924
6,636
191
12
.5, 264
3,500
5,337
20, 682
63, 562
16, 588
15, 638
23, 416
154, 448
1,885
2
()
2,133
(2)
Not
classified
$137
$7, 984
(2)
()
508
Other
types
6,653
33, 720
48, 603
16, 483
1
Those metropolitan areas (population: 16,000,000) from which the Division of Research and Statistics receives a list or
summary
of the volume of mortgage recordings.
2
No report received for this type of mortgagee.
358
Federal Home Loan Bank Review
ture of his community compares with that in others,
he can gauge his position in the whole financial
structure. Without such data, he may be very well
satisfied with the 5-percent yearly growth of his
institution, but when he finds that the average for
his community is a 10-percent growth and that the
national average is 7 percent, his satisfaction will
vanish.
There is one basic source of valuable information
to mortgage lenders which is available but which is
at present little used. In all parts of the country,
data on mortgages made are available in the county
recorder's office. The records in this office are open
to any one interested in them. Consequently, a
representative of the mortgage-lending institution
can easily make a record of mortgages made, at any
regular period. Some institutions are doing this
and find it very valuable in revealing the activity
of other institutions and the relative type of market
each seems to be tapping.
The Division of Research and Statistics of the Federal Home Loan Bank Board has been collecting such
mortgage recording data as are at present available.
The accompanying table is a summary of those data
for the first quarter of 1938. It covers only eight
large cities and the State of Massachusetts which
have about 16,000,000 combined population. Many
important areas are not represented at all and no
reports have been received from communities smaller
than 350,000 population.
The sample is too small to warrant any general
estimates but it does show that valuable information
could be collected with a minimum of effort. If it
were collected in a uniform manner throughout the
country vastly more information would be available
on the mortgage-lending activity of all types of lenders than is shown on the little table reproduced here.
Such recording would show:
1. Trend of mortgage lending by type of lender.
2. Trend of mortgage lending by size of community.
3. Average size of loans made by type of lender.
These are data which at present are not available,
and yet which could readily be made available to all
through cooperation. As an initial step in such cooperation, the Division of Research and Statistics has
(Continued on p. 861)
Sample Form:
MONTHLY REPORT OF NONFARM MORTGAGE RECORDINGS
NOTE.—Please list dollar amount of each mortgage recorded during month in appropriate column.
Return copy to: Division of Research and Statistics, Federal Home Loan Bank Board, Washington, D. C.
Recordings for
month: __
Prepared by:
County:
Building and Mutual SavLoan Asso- ings Banks
ciations
Commercial
Banks and
Trust Companies
Insurance
Companies
Individuals
2, 400
3,200
4,800
10, 000
1,500
2, 000
2,800
18, 000
6,460
1,800
3, 200
Other
12, 500
2, 600
July 1938
359
THE "HOME SELECTOR". . .
A new and effective tool of the Federal Home Building Service Plan—eases and speeds
the difficult process of guiding the prospect to a satisfactory choice of a house
•
THE merchandising of homes differs greatly
from the over-the-counter merchandising of such
commodities as cigarettes or waffle irons. The lending institution must deal with a prospect accustomed
to buying his commodities in standarized packages
with nationally known labels. His ideas about such
retail commodities are clear cut.
A totally different situation confronts this same
man when he enters the market for a home. The
steps necessary for the consummation of his ambition
are seldom familiar to him. Very often the house
to be sold is yet to be built, and building a home
looms in his mind as a major event in his life to
be approached with extreme caution. What sort
of house shall he choose? How much should it
cost in relation to his income? How should the
rooms be arranged for the greatest comfort of his
family?
To ease this indecision, the Federal Home Building
Service Section developed the "Home Selector"
feature of the Portfolio of Small Homes. This Portfolio might aptly be compared with the auto salesman's "demonstrator" since it contains the accessories and equipment needed to answer the questions of
the prospective home owner and to show him clearly
and pictorially the designs of homes which might
meet his requirements. The purpose of the "Home
Selector" is to help the lender and the prospect to
reach a prompt and mutually satisfactory decision
in selecting a house design.
The "Home Selector" is, in fact, a new and advanced method presenting home designs. Special
features set it apart from the ordinary plan book.
Original in concept, it reflects the results of wide
experience in establishing the home seeker in a
house suiting family, site, and income.
Attractive and practical home designs, produced
by leading residential architects and approved for use
under the Plan, are classified by size and cost of
construction in the "Home Selector", as shown in
the accompanying photograph. A specimen "Certificate of Registration" (evidence that the house was
360
built under the Federal Home Building Service Plan
with professional architectural supervision) is prominently displayed and there is ample space for photographs, booklets, forms, and cost estimates. New
home designs may be readily added or unsuitable
ones eliminated.
Once the prospect's family requirements and financial means have been ascertained, he is directed to
the section containing only designs which might
meet his requirements. The field of choice is
quickly defined. He is not confused by a multiplicity
of choices, nor distracted by the human inclination
toward wishful window shopping over too costly
designs.
In short, the "Home Selector" provides a complete
working sales kit to simplify and speed the process
of design selection.
Because the "Home Selector" is a new approach
to this basic merchandising problem, it offers material for fresh advertising and a new approach to
clients. It is worthy of being prominently displayed both by text and illustration in folders, newspaper advertising, and other promotion media.
Because it increases the lending institution's capacity
to serve and assist prospective home builders, its
facilities for business development are limited only
by the extent to which it is advertised and used in
contacts with the home-building public.
The Portfolio of Small Homes containing the
"Home Selector" section is supplied to lending institutions approved to operate the Federal Home
Building Service Plan at a nominal charge of $10
to cover the cost of the portfolio and design sheets.
Distribution is being handled by the Regional Federal
Home Loan Banks and by the Federal Home Building Service Section, Federal Home Loan Bank
Board Building, Washington, D. C.
The Federal Home Building Service Plan is available to lending institutions approved by the Federal
Home Loan Bank Board. Regional Banks are
prepared to furnish initial information or to receive
formal applications.
Federal Home Loan Bank Review
Mortgage Recordings
(Continued from p. 359)
prepared forms to be used in making mortgage recordings, a sample of which is shown on this page. As
each mortgage is listed separately in the recorder's
office at the time it is made, the simplest method of
summarizing the data is to list each mortgage by type
of institution. This makes any additions unnecessary and reduces the work of collection to the manual
listing of figures in the ruled columns provided.
These forms together with complete instructions
will be sent to anyone wishing to make summaries of
the mortgages recorded in his county. The only reJuly 1938
quest of the Division is that a copy of the recordings
be returned to Washington in a postage-paid envelope. Please address all requests for forms to:
Division of Research and Statistics,
Federal Home Loan Bank Board,
Washington, D. C.
The hope is that eventually enough institutions
will make monthly recordings and will send copies to
Washington to make a national picture possible.
Any institution cooperating in this project will be sent
a summary of all the recording data available as well
as a breakdown of data for communities comparable
to its own. This should prove of definite value to
the reporting institution.
361
W I N D O W DISPLAYS AND
OUTDOOR ADVERTISING
FOR SAVINGS AND LOAN ASSOCIATIONS
•
E V E R Y O N E in business today advertises.
Every business does not use the media which are
the most commonly accepted forms of advertising—
newspapers, radio, periodicals, direct mail—but there
are many other devices which bring to the attention
of the public a particular product or service.
From time to time, the REVIEW has published
articles concerning the different types of printed
advertisement which go from the association to the
home of the prospective buyer or investor—statements of condition, newspaper advertisements, house
organs, or letters. There is another form of advertising, however, which is likewise effective, now
undergoing a process of continued development
among savings and loan associations in every part
of the country. This is the printed and pictorial
advertising done by means of show-window displays
and outdoor billboards.
Although advertising for a financial institution
must necessarily be different from that used to promote the sale of consumable retail commodities, and
there is a vast difference between the approach which
must be made by a retail store and by a savings and
loan association, nevertheless, the same people in
the same mood pass the windows of both of these
establishments. If these people are to stop and learn
something of the goods and services to which the
advertiser is attempting to call attention, there must
be a definite appeal to the interest and curiosity of the
passerby.
No matter how attractive or appealing the show
window may be, the merchandiser does not expect
customers to throng into his store primarily as the
result of that particularly attractive display. It is
sufficient for his purposes that the display conveys to
the public the type and value of services which are
offered. The theory of window display advertising
can be simply demonstrated. Look at a bright light.
Close your eyes or turn off that light and for several
seconds you will carry in your mind an after-image
of that light. It is this same psychology, scientif362
ically developed, which induces large advertisers to
continue their efforts year after year. Attractive
window displays are one means by which a savings
and loan association can make this same psychological approach to the public. It is often said that a
person's first impression is the most lasting. It is
not always realized that this first impression may be
almost entirely subconscious and that institutions
number among their investors and borrowers many
people first influenced by the casual impression made
by an effective window display. Its image remained
in their minds, sometimes for weeks or months, much
as the after-image of the electric light was retained
when the light itself had been turned off.
CREATING INTEREST IN WINDOW DISPLAYS
Attractive window displays will create those favorable initial impressions which are so important.
Although such displays are not expensive and do
serve a very definite purpose in a planned program
of business development, nevertheless they have not
been used as extensively in the advertising of financial institutions as in other types of business. This
is due in part to the fact that a savings and loan
association, for example, has merchandise which
does not lend itself so easily to display.
A good show window can, however, create the
idea or desire for the services of the association.
Photographs or models or even architects' drawings
showing interesting homes will attract the attention
of the passerby and will at the same time implant
in his mind the knowledge that the association has
funds to lend on home mortgages.
To present effectively the position of the savings
and loan association in encouraging savings, some
associations have successfully resorted to photographic enlargements, such as have been used by
banks and life insurance companies. On£ enlargement might show a homely fireside scene, usually
with two older persons, a man and a woman, sitting
Federal Home Loan Bank Review
by the fireside with several younger persons in the
background. This creates the idea of providing
through regular savings the comforts which should
go with old age. Prior to school vacations, the
thought of saving for a college education might be
stressed. The idea of saving takes definite root
when it can be securely fastened to some specific
objective, such as the accumulation of funds for
down-payment on a home, for travel, for vacation.
By dramatizing those comforts and pleasures which
thrift makes possible in an attractive and timely
window display, the desire to save is stimulated.
The windows of the telephone company in any
community are well worthy of study by those who
are interested in effective window displays. Its
business, like that of savings and loan associations,
is a service. For example, the company may take
one telephone book, display it on a background of
some rich fabric; possibly the only caption would be
the line, "The town is at your feet." The advertisers of cigarettes also have display ideas which
are valuable to financial institutions. Their window
displays as well as their advertising in newspapers
and magazines seldom invite the public to come in
and buy. They show a replica of the package,
which is usually incidental to the main theme of
their advertising. This main theme itself may be a
portrait in color; it may be an action picture with
airplanes; it may be a picture of a craftsman in one
of the trades.
Even with particularly effective window displays,
frequent change is necessary to attract and hold
public attention. A change of display every two
weeks, when possible, or at least every month, is
advisable. Displays which incorporate motion and
offer a change of idea or scene are most effective.
A display which has a definite story cycle and offers
a continuing change of form and color will attract
and hold the passerby until that cycle has been
completed. Even sound can be effectively used at
certain times.
Associations which do not have the facilities to
create their own displays have obtained satisfactory
results through concerns which specialize in such
services. Most of these consist of frames for which
replaceable posters in colors, emphasizing some
aspect of the association's services, are furnished at
frequent intervals. Frequently, associations supplement such service. In many cities, there are
firms which specialize in dressing windows and
renting equipment and they will from time to time
make up special displays or even offer a regular
OTHER FORMS OF DISPLAY ADVERTISING
Other forms of display advertising, such as street
car and bus cards, railway station signs, and the
usual outdoor posters, all have a place in the well363
July 1938
75996—38
service with replacements when desired. The cost
of good service of this sort should not be prohibitive
to the average association.
The manager of a savings and loan association in
California reports that a very close record of all
new accounts opened has been maintained since the
first of the year, analyzing the different media
which have effectively aroused the interest of
investors. During the first quarter of 1938, 103
new accounts were opened, in a total amount of
$64,282, or an average of $624 per account. To
window display advertising were credited 14 accounts
in a total amount of $12,487, or an average value of
$892. The executive officer writes: "You will note
from the above classifications that the accounts originating from the window displays are the highest
average of any originating through publicity mediums
and undoubtedly are obtained at the least cost per
account." Local historical displays and windows
showing vividly some little known fact have been
found most effective by this association. "M
In the June issue of the REVIEW some of the
results which have been obtained from cooperative
advertising by savings and loan associations were
discussed. Such cooperation can be carried out for
window advertising as well. Local or State groups
can arrange with display specialists for a series of
appropriate window devices which the groups can
rotate from one association to another during a given
time.
These specialists can arrange for the shipping,
erecting, and servicing of the display as it is passed
from one association to another. Appropriate displays should be available for approximately $100
each. If a group of six associations produced six of
these units and rotated them on a monthly basis,
this would give the desired frequency of change at a
minimum of cost. The used equipment could be
returned at the end of six months to be rebuilt inexpensively and a second series shipped and rotated
in the same manner. By the time this second set
had completed its rotation, the first series, in new
color and copy, would be available again for routing.
With the two sets, the cooperating associations could
change the equipment every two weeks and repeat a
display only twice a year.
3
364
AWell-located Neighborhood
Billboard.
Examples of
Good Displays and
Well-dressed
Show W i n dows.
This Federal Savings and Loan Association Successfully Dramatizes
Its Window Displays.
l i t r liiliiiiiiiiiTiiiiiitiii' i n 11,
Federal Home Loan Bank Review
balanced advertising program. Experience tends
to show that this type of advertising is most beneficial in smaller cities. A study of car advertising in
the principal cities of the country shows that the
majority of cards are those of national advertisers
and are confined to merchandise retailing for less
than a dollar and that the goods advertised are mainly
for home consumption or individual wear. Since the
business of an association is largely confined to its
own community, the most appropriate and the most
effective use of advertising is that which is focused
directly upon the community itself. For example,
for an association located in a suburban community,
advertising posters displayed on the railway platforms along the route to the business center can be
used, or car cards on these direct and definite routes
between the suburb and the city may be inexpensive
but effective.
The value of outdoor advertising will vary tremendously in different localities. The community,
the concentration of traffic at display points, and the
type of neighborhood or the type of business done in
that neighborhood are all factors which have a very
definite bearing on the value of this type of promotion. Actual results are difficult to gauge, since it
is almost impossible to determine the number of new
accounts opened for each advertising dollar spent.
However, outdoor advertising concerns have made
extensive traffic studies and can state with reasonable
accuracy the number of passersby at any location,
and the business expectancy from any location
selected. Such a survey may be compared with the
circulation figures of newspapers and other periodicals. The advertising rates for outdoor posters are
based upon this circulation equivalent.
In many cities, there are concerns which specialize
in local outdoor advertising. They will prepare
selected routes and schedules of locations where
billboards will yield the best returns. These are
usually located immediately within the community
or within the area which the association wishes to
cover and are adjacent to thoroughfares most constantly used by the local traffic. Many associations
report this to be effective and usually not expensive.
The advertiser may select the number of locations
and may specify a frequent change of poster and
message. Service of this sort can be obtained in
some cities for as little as $5 to $10 per month per
sign.
Successful use of this form of outdoor advertising
demands the selection of locations where the best
July 1938
returns may be secured. These locations are usually
immediately within the community and can be
located with reasonable certainty at such intersections and highways as carry the highest local traffic
count. In selecting locations, the type of traffic
must be carefully considered. Panels placed on
arterial highways where there is fast-moving traffic
are much less valuable than those placed at an intersection controlled by a traffic light. Visual display
advertising has a high interest value at neighborhood
shopping centers and corners with four intersecting
sidewalks.
Numbers of savings and loan associations have
conducted cooperative outdoor campaigns recently
and generally have found them satisfactory. Eight
insured associations in Oklahoma City carried on a
5-month intensive public relations campaign at a
total expenditure of $8,000, using 24 billboards for
three full months, with a change of paper every
month. The monthly cost of these 24 billboards
and paper was slightly under $600. In Minneapolis
and St. Paul, 10 Federal savings and loan associations in two successive cooperative campaigns included the use of illuminated billboards. The first
campaign was an intensive three months' effort which
cost $6,200, of which $1,000 was used for four illuminated boards, presenting the following message:
"For insured safety and liberal returns invest in a
Federal savings and loan association." During a
second campaign of four months' duration in the
summer of 1937, the cooperating associations continued to use four billboards.
CURRENT
E X A M P L E S OF W I N D O W DISPLAY
OUTDOOR ADVERTISING
AND
The facing page shows several good examples of
window display and outdoor advertising as used by
savings and loan associations. The neighborhood
billboard in the upper right-hand corner, used by a
savings and loan association in the Middle West
shows an attractive house with the message, "A
house like this—paid for easily like rent. Come in
today. We'll show you how." The two posters at
the left emphasize the idea of thrift and regular
savings.
The three window displays show how varied can
be the appeals used. The window display on "Foresight" emphasizes six things for which one might
(Continued on p. 385)
365
RESIDENTIAL CONSTRUCTION and HOME FINANCING ACTIVITY
•
THE tendency during the past few months has
been for residential construction and other factors related to the home-financing field to level off
somewhat after sharp declines in 1937 and during the
early months of this year, although adverse movements are not completely checked.
The index of residential construction, which is
based upon building permit records of the U. S. Department of Labor in cities of 10,000 or more population, dropped sharply during the greater part of last
year but showed a strong rally from November
through February of 1938, rising from 18 in the low
month of October to nearly 30 in February of this year.
During the following three months the index, which
has been corrected for seasonal variations, has flucRESIDENTIAL
BUILDING
ACTIVITY
tuated within a narrow range at approximately 30 percent of the 1926 level. The May 1938 index of 29 was
nearly 25 percent above the level for the corresponding month of last year, and was 6 percent above April.
This movement of the index of residential construction is significantly different from the movement
of industrial production, manufacturing employment,
and pay-roll indexes. The index of residential construction reached its peak in February 1937 and by
October had declined 58 percent. The rally which
began in November, however, brought the index of
residential construction by May 1938 to a point 30
percent below its peak in February 1937. Industrial
production, employment, and pay-roll indexes, on the
other hand, receded drastically in the closing months
AND
SELECTED
INFLUENCING
FACTORS
1926-100
600
600
j
500
1/1
40 0
I
300
0
500
400
fv*H
*FORL "CLOSLIRES'
300
200
200
100 *—
90
80
70
60
50
40
/ " WUSIh
1
l i « f " V• « ^ - ^ '
V"""*"l!i«lv..g*...l
'
G REN TALS2
I
I•
i-»- - T j ^ r^
^
^
1
""•••771
••.
|
{
BUILDING
MATERIAL PRICE
1| 1|
f \
....
1
Jr-«»—-p"•**-
—4-......X...^-...* [••' '* 1 —
\
i**Ufc».—
/-•..!./ p"--"|
1
1
MANUFACTURiW<? PA)'ROLLS z
L\
\y
\J
30
20
*
\
/**
\r*
r*
\>\^ \ i ^
•Of
e\
SIDEN
IAL C 1NSTR ICTION 3
r
k
100
90
80
70
60
50
40
30
20
J
10
9
8
7
6
1-
Division of Research a Statistics
Federal Home Loon Bank Board
L i 111 ! I 1 1 1I I 1 1 1.11111 ,I..I1.I,.L L U L L L I 1.1 L .1.1 I L L 1 I I 1 1i i i i I 1 1 1 1I I1 1 I I L I L I . l . 1 1 I I 1l i l t 1, 1 1 1 1 1 l l 1,1 1 1 I I I 1 1 I I.M 1 1 1 1 11 1 1 1 1
J
0
0
0
J
J
J
D
J
J
0
D
J
0
J
0
0
J
J
1934
1933
1931
1932
1929
1930
1935
1936
1937
1938
Source;- I Federal Home Loan Bank Board (County Reports)
2. U. S. Dept. of Labor (Converted to 1926 Base)
3 Federal Home Loan Bank Board (U.S. Dept. of Labor Records)
366
* Includes correction for New York City because
of irregular conditions arising from inception
of new building code.
Federal Home Loan Bank Review
of 1937 and in January of this year, and have shown
no tendency to rally as yet, even though during the
past four months these indexes have followed a more
gentle downward movement. By the end of May,
the adjusted industrial production index had fallen
35 percent since August 1937. The index of manufacturing employment adjusted for seasonal variation
had fallen 25 percent since July 1937. The unadjusted index of factory pay rolls had declined 33 percent since August 1937.
In other words, the rapid decline in residential
construction during 1937 has been partially compensated for by an increase in activity during the
past four months, while there are no evidences of an
increase in the volume of industrial production. It
is notable, however, that residential construction in
May 1938 amounted to only 29 percent of the 1926
volume, while these other factors approximated 65
to 80 percent of 1926 activity.
Construction costs have tapered off much more
during the past year than has the rental market—
both of these series having shown signs of stabilizing
somewhat during the February-May period; however, a downward trend in these series is still in
evidence, especially in the prices of building materials.
ESTIMATED
With the exception of "brick and tile", all groups
of wholesale building material price indexes indicated
either a decline or remained stationary during the
month of May. The price of lumber registered the
largest drop from April (2 percent) while "paint and
[1926=100]
May
1938
Residential construction
Foreclosures (metro, cities)
Rental market (N. I. O. B)
Building material prices
Manufacturing employment. . .
Manufacturing pay rolls
Average wage per employee
129.0
181.0
85.9
90.4
76.4
66.7
87.3
April
1938
Percent
change
127.3
177.0
86.1
91.2
78.6
68.2
86.8
+6.2
+2.3
-0.2
~0.9
-2.8
-2.2
+0.6
May
1937
23.4
230.0
85.0
97.2
101.0
101.5
100.5
Percent
change
+23.9
-21.3
+1.1
-7.0
-24.4
-34.3
-13.1
i Corrected for normal seasonal variations.
Includes a correction for New York City because of irregular conditions arising
from inception of new building code.
paint materials", as well as the group of miscellaneous
items showed declines greater than one-half of 1
percent. The increase in "brick and tile" prices
was relatively insignificant, while the indexes for
other material classes remained unchanged. The
trends in these price classes may be studied by
referring to Table 8 on page 380.
In spite of a slight falling off in their mortgagelending activity during May, savings and loan
associations have held a very favorable position in
NUMBER AND COST OF FAMILY DWELLING UNITS
IN ALL CITIES OF 10,000 OR MORE POPULATION
PROVIDED
(Source; Federal Home Loan Bank Board. Compiled from residential building permits reported to U. S. Dept. of Labor)
COST OF UNITS
NUMBER OF UNITS PROVIOED
30
30
28
28
26
26
24
2 4]
1
22
100
90
90
1 J 938
80
1936
r
22
20
201
18
18
19 17
16
16
14
14
PROVIDED
100
80
/ y
70
70
19 17
Vr
60
60
/
50
*/
12
1
10
12
6
4
^~+
I—
**
2
o:
July 1938
J,
/ 93
10
30
1 731-35 A VS.
8
/ ,
40
8
"™
m
6
••- •"" ^ ^X
20
%
4
\
•
^
•
/ '*'
<
K 5 AVG.
!
30
^
"^
20
X
X
10
2
Division of Research 8 Statistics
0
Federal Home Loan Bank Board
i
i
1
i
i
367
relation to general business conditions. They have
made seasonal gains in volume of lending of 50 percent since the first of this year. However, the
$62,200,000 loaned by all savings and loan associations during May was 19 percent less than during the
same month of 1937.
Residential Construction
•
T H E total number of family dwelling units provided in cities of 10,000 or more population has
risen for the past three months in line with normal
seasonal variation. In May, a total of 15,300 units
was provided after a rise of 500 from April, representing a net increase of 600 from May 1937 as
indicated in the accompanying charts. During the
January-May period, 80,900 dwellings were provided. This total was slightly above the estimated
total for the same period of 1937, the rise being due
to an increase during the early months of this year
in multifamily units attributable to the unusual
conditions in New York City. In the first five
months of this year, the construction of 1- and 2family homes indicated a decline of 5,600, which
nearly offset the increased building of structures with
3-or-more-family units.
Although the number of dwelling units constructed
has risen during the past three months in line with
the number of units built in the corresponding period
of 1937, the May total estimated cost of these units
is still $4,000,000 below May 1937. During the
first five months of this year, the cost of 1- and 2family units dropped $50,700,000 from the corresponding period of last year, while the volume of
multifamily construction increased $18,800,000,
leaving a net decline of $31,900,000 for the cost of
all types of housekeeping structures.
Referring to Table 2 on page 374, it may be seen
that in six of the Federal Home Loan Bank Districts, namely, New York, Winston-Salem, Indianapolis, Des Moines, Little Rock, and Los Angeles,
the number of units was above those for M a y 1937.
In analyzing construction activity in the individual
States within these Districts, it is apparent that in
approximately half the number of States, residential
building increased over May of 1937.
In the United States as a whole, 24.3 family
dwelling units were provided in May per 100,000
population. This represents an increase of slightly
less than 1 unit over last month, and a similar rise
in the rate over May 1937.
The Los Angeles District indicated a higher rate
of construction than any other area, having provided
74 units per 100,000 population, a rise of nearly 12
units from April. The rate of activity over the past
two and one-half years has been higher in the Los
Angeles District than in any other area, with the
exception of three months in the New York District;
the extremely high rate for New York in December
1937 and January 1938 was due to the inception of a
new building code at the turn of the year.
The Chicago District, which has been almost
always lower in rate of construction activity than
any of the other areas, indicated a rate of 9 units in
May, while the Pittsburgh District was slightly
higher with 10 units per 100,000 population.
Indexes of Small-House Building Costs
[Table 3]
•
T H E cost of constructing a standard 6-room
frame house in reporting cities declined generally
from March to June, thus continuing the downward
trend started in the fall of 1937. The special article
analyzing the index of building costs on page 353,
gives a detailed analysis of the movements in the
various material groups and for labor during the
1936-1937 period for 27 of the cities whose total costs
are summarized in Table 3 on page 376 of this
section.
According to this index Asheville, North Carolina, was the only reporting city to indicate a drop
in June of more than $200 in the total cost from
March. In Asheville, costs fell $214 to $5,194,
while in five other cities costs declined over $100.
Of the remaining communities, 15 decreased less
than $100 in total cost, two remained unchanged,
and three cities showed rises. There has been no
particular uniformity among the changes for cities
within any Federal Home Loan Bank District.
Springfield, Illinois, which showed an increase
last quarter of over $60 had a cost $173 in excess
of the Chicago index, and is now the high-cost
city of the group ($7,108). Greensboro, North
Carolina, which is substituted for Salisbury, had the
lowest cost in June ($4,719) for the cities reporting
this month.
NOTE FOR CHART ON FACING PAGE:
A new building code in New York City, effective January 1938, caused an unusual spurt of applications for permits which
threw the United States total out of balance. The dotted line shows that total excluding New York City for December 1937
and January and February 1938.
368
Federal Home Loan Bank Review
RATE OF RESIDENTIAL BUILDING IN ALL CITIES OF 10,000 OR MORE POPULATION
REPRESENTS THE ESTIMATED NUMBER OF PRIVATELY FINANCED FAMILY DWELLING UNITS PROVIDED PER 100,000 POPULATION
Source. Federal Home Loon Bonk Board
i€962—%
Compiled from Buildng Permits reported to U S Deportment of Labor.
FEDERAL HOME LOAN BANK
DISTRICTS
01 STRICT I
80ST0N
DISTRICT 4
WINSTON SALEM
I70
•J 6 0
SO
I
40 •
30
^
[20
1931-35 AV6^
10
' «N
FEt W R
M
IIW
JUN JUL AUG SEP OCT NOV DEC
. AUG SEP OCT NOV DEC
0
80
01 STRICT 5
CINCINNATI
01 STRICT 6
INDIANAPOLIS
DISTRICT 7 1
CHICAGO 1
DISTRICT 8
DES MOINES
70
17°
60
-|60
50
-150
40
30
20
_R:
i—T^
-1
10
- mm \
-- *T2 $j R -
I937-?
~—4
1931-35 Mf6-^i
'
j
w
JAN FEB MAR
APR
MAY
JUN
JUL AUG SEP
OCT NOV
OCC
DISTRICT I I
PORTLAND
a
I
JUL AUG SIP
OCT NOV I
.°
n80
DISTRICT 12
LOS ANGELES
H60
q=r
-J50
J 40
-130
i -.
3 SEP OCT NOV
JAN FEB MAR APR MAY JUN JUL.
AUO SEP OCT NOV OCC
JAN
FEB MAR
4
I JUN
1931-35Ave?
J
JUL AUG SEP OCT NOV 0
.->.-.
. AUG SEP OCT NOV DEC
UNITED STATES AVERAGE
1930-1938
Iv^l H ^
pi l l l t I I l t
I,J
I I l I 1 l t I I I l l I I l I I I l I l l I
M A R . J U N S e P D C C M M t J U N S E P O C C . M A R J U N . S e P
July 1938
369
The declines in June, as in preceding reporting
periods, have been principally due to recessions in
material prices which occurred after a sharp rise
to the third quarter of 1937. These trends are
illustrated on page 354 in the special article on
Residential Construction Costs.
Foreclosures
•
THE trend of real estate foreclosures in metropolitan communities over the past three years
has been drastically downward, and by the latter
months of 1937 had dropped to a level approximating
the average month of 1928. In January and February of this year, the index fell below the average
month of 1928 in response to seasonal influences.
During March and April, rises of a seasonal nature
occurred which again brought the index up to the
1928 level.
The index of foreclosures for May 1938 was 181
as compared with 177 for the previous month. This
increase of 2.5 percent compares unfavorably with
the seasonal drop of 0.3 percent.
In comparison with the same month of last year,
May foreclosures in metropolitan communities declined 21.3 percent. For the first five months of 1938
the index was 22.8 percent less than for the same
period of 1937. Of the 83 communities reporting in
May, 40 showed decreases from April, while 43 indicated increases.
Continuing the upward trend of the early months
of 1938, the mortgage-lending activity of Statemember and nonmember institutions rose 3 percent
and 1 percent, respectively, from April. On the
other hand, new loans of Federals registered the first
decline (5 percent) since the beginning of 1938. The
April-May movements in mortgage lending by Statemember and Federal associations are in line with the
changes in the corresponding months of last year,
when loans by State members increased 4 percent,
and by Federals declined 6 percent. In May 1938,
loans of Federals and State members each stood 20
percent below the level of May of last year; loans by
nonmembers, which account for about one-seventh
of total lending activity, declined only 11 percent
during this period.
Construction and "other purpose" loans of all
savings and loan associations continued in May the
upward trend established during earlier months of
this year, although each of the other classes showed
declines. In the April-May comparison, the volume
of construction mortgages written increased 7 percent,
while in contrast this type of activity declined 7
percent in the corresponding period last year. An
TOTAL
LOANS
MADE BY ALL SAVINGS AND LOAN
UNITED S T A T E S - B Y MONTHS
MILLIONS
OF OOLLARS
ASSOCIATIONS
_
_
_
CUMULATIVE, JAN-MAY
(MILLIONS OF DOLLARS)
128 6 "p-™
108 5 - ^
ki
*TB
m
^'-^L.
•;•
1
1I 1
• Fi
Monthly Lending Activity of Savings
and Loan Associations
•.a
m. ;-l
1 P1I
[Tables Jh 5, 6, and 7]
•
IN May, the total volume of new loans made by
all institutions of the savings, building and loan
type amounted to $62,200,000, a decline of $400,000
or less than 1 percent from April. This represents a
slight reversal of the upward trend indicated during
the preceding three months as portrayed in the
chart on this page. As compared with May 1937,
total new mortgage commitments declined $14,200,000. Although the May total was 19 percent
below the same month of last year, a seasonal gain
of more than 50 percent has been made from the low
month of January 1938.
370
J F M A M J J A S O N Oj J F
1936
4J J A S O N DjJFMAMJ
J A S O N D
1937
I
1938
Federal Home Loan Bank Review
inverse relationship was true of loans for home purchase: this type decreased 3 percent from April 1938,
compared with a 5-percent increase during the AprilMay 1937 period.
Table 6 on page 378 indicates the trend of mortgage-lending activity by geographic regions. Loans
made, in May were greater than those made in April
in four of the Federal Home Loan Bank Districts
(Boston, New York, Topeka, and Portland). Statechartered associations were responsible for the
increase in each of these. In only two Districts
(Cincinnati and Indianapolis) did Federal savings
and loan associations report increases in total loans,
although in these areas declines occurred in both
State-member and nonmember lending activity.
State-member and nonmember institutions each had
increased lending volume in seven Districts, but in
only the New York, Little Rock, Topeka, and
Portland regions did the increases coincide.
As compared with May 1937, mortgage loans
made by Federals declined in all Districts, while in
the Pittsburgh and Winston-Salem areas loans of
State members increased. Nonmembers registered
rises over the corresponding month of last year in 4
of the 12 Districts.
Federal Savings and Loan Insurance
Corporation
[Tables 9 and 10]
THERE was a net acquisition of 20 newly insured associations during the month of May,
bringing the total number of associations insured by
the Federal Savings and Loan Insurance Corporation
to 1,989 as of May 31. These institutions had
1,870,000 investors at the end of the month with a
total investment of $1,284,000,000. The total assets
of insured associations increased $51,000,000 during
May to a total of $1,937,000,000 (see Table 9, page
381, for further details).
There were 19 more insured associations under
State charter at the end of May than on April 30,
after adjustment for transfers to Federal charter and
for consolidation of State-chartered insured institutions. The 656 insured associations under State
jurisdiction at the end of May had total assets of
$748,000,000, and 870,000 investors with total
repurchasable capital of $540,000,000.
The 550 State-chartered insured institutions reporting both in April and in May showed a much
smaller volume of repurchases but a slightly smaller
volume of new investments in the current month
than in x^pril (Table 10, page 381). However, as
the volume of new investment of these institutions
in May exceeded repurchases, the net increase from
April in private free capital amounted to over
$1,000,000, bringing the total up to $474,400,000 at
the end of May. The Home Owners' Loan Corporation had over $400,000 more invested in these
associations on May 31 than on April 30; the total
H. O. L. C. subscriptions on May 31 amounted to
$36,100,000.
At the end of May, these 550 reporting Stateinsured associations had on their books $31,300,000
in advances from their respective Federal Home
Loan Banks—a net increase of nearly $500,000
during the month. Money borrowed from other
sources as of May 31 amounted to $3,200,000 after
increasing over $100,000 from April 30.
New mortgage loans reported by State-chartered
insured associations in May amounted to $10,700,000,
an increase of $360,000, or 3.5 percent from the April
total, in contrast to the decline registered by Federals.
All types of loans increased in May over the preceding
month in insured associations with State charters, except those loans made for refinancing of
homes, which declined 3.2 percent. The net effect of
lending operations and collections was an increase of
$3,700,000 in the balance of mortgage loans outstanding during the month, bringing the total to
$456,800,000 at the end of May.
•
July 1938
Federal Savings and Loan System
[Table 11]
•
SIX newly converted and one newly chartered
Federal associations were approved by the
Federal Home Loan Bank Board during the month
of May; however, as three institutions had their
charters canceled during the month, the net growth
of the Federal Savings and Loan System was only
four. On May 31, there were 10 approved Federals
which had not as yet become insured. The assets of
all approved Federals as of May 31 were approximately $1,196,000,000, after increasing $18,000,000
during the month of May.
Nearly twice as much money was invested in private shares during May as was withdrawn in the
1,286 reporting Federal associations, resulting in a
rise of $7,500,000 in private repurchasable capital.
371
$12,200,000. The total amount due on mortgages
on May 31 was $897,200,000.
The total Treasury and H. 0 . L. C. investment in
these institutions showed a net increase of $424,000,
bringing the total to $210,800,000.
Advances from the Federal Home Loan Banks to
the 1,286 reporting Federals amounted to $89,400,000
at the end of May, after increasing $900,000 during
the month. Money borrowed from other sources
declined over $100,000 to a balance of $1,800,000 as
of May 31.
The total volume of lending activity of the reporting sample amounted to $23,900,000 in May, a
decline of over $900,000 from April. Construction
loans indicated a rise of $260,000 during May, while
all other classes declined in volume. The net effect
on the volume of loans outstanding when repayments on loans are considered was an increase of
GROWTH IN FEDERAL CAPITAL
Progress in number and assets of Federal savings
and loan associations
Approximate assets
Number
Apr.
30,
1938
New
Converted
Totals-
May
31,
1938
Apr. 30, 1938 May 31, 1938
640
699
639 $283, 494, 000 $292, 396, 000
704 895, 066, 000 903, 804, 000
1,339
1,343 1, 178, 560, 000 1, 196, 200, 000
At the beginning of 1937 the privately owned free
shares and deposits (private repurchasable capital) of
1,163 Federal savings and loan associations amounted
to $472,268,000; at the end of that year it had grown
to $554,315,000. This was a net increase of 17.4
percent, or $82,000,000, in one year. The growth
of these associations in relation to their assets is
shown in the table on this page.
It is interesting that the percentage increase in
private repurchasable capital varied directly as the
size of the associations—from a 94.2-percent increase
in the associations with less than $50,000 in assets to a
3.5-percent decrease in the associations with assets
of $10,000,000 and over. The latter size group was
the only one to show a decrease in such capital, a
decrease compensated for by the addition of two
other associations to the $10,000,000 group, which
resulted in a total for the six associations of $87,650,000 in private repurchasable capital.
The 120 associations in the $1,000,000 to $2,500,000
size group reported the greatest gain in private capital. Holding $105,673,000 at the end of 1936, they
reported a growth of $21,500,000, or 20.4 percent,
during the year.
Growth of private repurchasable capital * in 1,163 Federal savings and loan associations during 1937
[Amounts are shown in thousands of dollars]
Private repurchasable capital
Size of assets
Under $50,000
$50,000 to $100,000
$100,000 to $250,000
$250,000 to $500,000
$500,000 to $1,000,000...
$1,000,000 to $2,500,000..
$2,500,000 to $5,000,000..
$5,000,000 to $10,000,000
$10,000,000 and over
Total
1
Number of
associations
Percent
change
Dollar
change
Dec. 31, 1936
Dec. 31, 1937
187
163
268
175
198
120
31
17
4
$2, 632
5,295
20, 912
30, 146
73, 677
105, 673
70, 002
85, 928
78, 003
$5, 085
9,101
30, 787
40, 323
92, 485
127, 199
80, 273
93, 780
75, 282
+ 94.2
+ 71.9
+ 47.2
+ 33.8
+ 25.5
+ 20.4
+ 14.7
+ 9.1
-3.5
+ 2, 453
+ 3, 806
+ 9,875
+ 10,177
+ 18,808
+ 21, 526
+ 10,271
+ 7,852
- 2 , 721
1,163
472, 268
554, 315
+ 17.4
+ 82,047
Private repurchasable capital includes all privately owned free shares and deposits, and excludes mortgage-pledged shares, guarantee shares, and permanent stock.
372
Federal Home Loan Bank Review
Series C, 2 % 1940 debentures
Series D, 2 % 1943 debentures
Series E, 1% 1939 debentures
Federal Home Loan Bank System
[Tables 12 and IS]
ADVANCES by the Federal Home Loan Banks
during May exceed the amount of advances in
any previous month in 1938 and were nearly $1,500,000 greater than advances during April. For the
second consecutive month advances exceeded repayments and as a result the balance of advances outstanding increased from $183,749,000 to $186,510,000- However, this net increase of $2,760,250 in the
balance of advances outstanding is the lowest gain of
any May since 1935 and the volume of $7,552,000 in
advances during May represents a decrease of 38
percent from the amount advanced in May 1937.
Seven Banks made a greater amount of advances in
May than in April, with the greatest gains shown by
the Cincinnati Bank, which more than tripled its
April volume, and by the Des Moines, Chicago, and
Winston-Salem Banks. Six Banks increased the
balance of advances outstanding over the April 30
total, including the Banks at Pittsburgh, Cincinnati,
and Los Angeles, which for the second consecutive
month reported increases in the balance of advances
outstanding.
The net gain of nine members during the month of
May was the largest increase in the membership of
the Federal Home Loan Bank System since August
1937.
$90, 000, 000
•
T H E FIFTH ISSUE OF DEBENTURES
The Governor of the Federal Home Loan Bank
System announced the offering on June 21, 1938, of a
new issue of $41,500,000 of 1-percent consolidated
debentures, Series E, of the Federal Home Loan
Banks, maturing July 1, 1939. These debentures,
which constitute the largest offering so far made by
the Bank System, were priced at 100%6, to yield
approximately 0.435 percent, and were heavily oversubscribed.
The major purpose of the issue, which represents
the fifth public offering made by the Federal Home
Loan Banks, is to refund $28,000,000 of 1 ^-percent
debentures maturing on July 1, 1938. With the retirement of matured debentures the Banks will have
$90,000,000 of debentures outstanding:
July 1938
$25, 000, 000
23, 500, 000
41, 500, 000
Mortgage Debts Under the Revised
National Bankruptcy Act
•
PUBLIC Law No. 696, H. K. 8046, approved
June 23, 1938, which completely revises the
National Bankruptcy Act, provides, in Chapter XII,
that bankrupt debtors shall have the power to submit
plans for scaling down and recasting the terms of
their secured and unsecured debts. If the secured
and unsecured creditors in each creditor classification,
holding more than two-thirds in amount of the debts
in that classification, consent to the proposed plan,
the plan becomes effective, is binding upon all creditors, and the indebtedness to them is adjusted in
accordance with the plan.
Section 517, however, declares that the provisions
of Chapter XII shall not apply when the secured
creditor is the Home Owners' Loan Corporation, a
Federal Home Loan Bank, a member of the Federal
Home Loan Bank System, or a creditor of any debtor
under a mortgage insured under the terms of the
National Housing Act, as amended. Therefore,
mortgage loans made by these institutions are not
subject to the risk of being scaled down and recast
in bankruptcy proceedings.
Resolution of the Board
FEDERAL
S A V I N G S AND L O A N I N S U R A N C E
CORPORA-
T I O N ADMISSION FEE.
The Board adopted the following resolution on
June 10:
Be it resolved, That until further notice any institution
applying for insurance of accounts, provided such insurance
is granted, shall pay an admission fee in accordance with
Section 403 (d) of Title IV of the National Housing Act, as
amended May 28, 1935, equal to four cents per one hundred
dollars of the total amount of all accounts of an insurable
type plus all obligations to its creditors.
373
Table 1.—Number and estimated cost of new family dwelling units provided in all cities of 10,000
population or over, in the United States 1
[Source: Federal Home Loan Bank Board.
Compiled from residential building permits reported to TJ. S. Department of Labor]
Number of family units provided
JanuaryMay totals
Monthly totals
May
1938
Apr.
1938
Total cost of units (thousands of dollars)
May
1937
1938
1937
Monthly totals
May
1938
Apr.
1938
January-May totals
May
1937
1938
1937
1-family dwellings__
_._
2-family dwellings
2
Joint home and business —
3-and-more-family dwellings.
11, 779 10, 511 11,001 44, 390 49, 943i $47, 377. 0 $41, 266. 0 $49, 452. 7 $173, 116. 3 $222, 425. 8
8241 4, 432 4, 398 2, 190. 7 2, 421. 7 2, 260. 9 11, 232. 0 12, 130. 6
980|
830
386. 0|
1, 181. 2
103|
345|
494
274. 7
219. 6|
61
95
1, 729. 2
2, 593 3, 227] 2,781 31, 711 25, 138 6, 921. 4 10, 353. 1 8, 933. 3| 99, 532. 9 80, 679. 0
Total residential
15, 297 14, 779 14, 709 80, 878 79, 973 56, 875. 1 54, 260. 4 60, 921. 6 285, 062. 4 316, 964. 6
Private housingPublic housing 3_
15, 297 14, 779 14, 558 80, 877 79, 314 56, 875. 1 54, 260. 41 60, 164. 6 285, 059. 0 314, 061. 9
151
1
2, 902. 7
3.4
0.0
659
0.01
757. 01
0i
0
i Estimate is based on reports from commiraities having approximately 95 percent of the population of all cities with population of 10,000 or over.
2 Includes 1- and 2-family dwellings with business property attached.
3 Includes only Government-financed low-cost housing project units reported by TJ. S. Department of Labor.
Table 2.—Number and estimated cost of new family dwelling units provided in all cities of 10,000
population or over, in May 1938, by Federal Home Loan Bank Districts and by States
[Source: Federal Home Loan Bank Board. Compiled from residential building permits reported to
U. S. Department of Labor]
Amounts are shown in thousands of dollars]
All residential dwellings
Number of family dwelling units
Federal Home Loan Bank
Districts and States
May
1938
15, 297
UNITED STATES
May
1937
All 1- and 2-family dwellings
Estimated cost
May 1938 May 1937
14, 709 $56, 875. 1 $60, 921. 6
Number of family dwelling units
May
1938
12, 704
May
1937
Estimated cost
May 1938 May 1937
11, 928 $49, 953. 7
$51, 988. 3
823
875
3, 622. 9
4, 108. 9
765
747
3, 461. 4
3, 732. 0
Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont
197
46
405
45
119
11
233
42
458
39
95
8
878.8
153.3
1, 941. 6
126.2
464.0
59.0
1, 222. 2
134.4
2, 267. 5
125.9
317.0
41.9
190
46
354
45
119
11
215
39
355
39
91
8
864.3
153.3
1, 794. 6
126.2
464.0
59.0
1, 125. 9
126.4
2, 002. 4
125. 9
309. 5
41. 9
No. 2—New York..
2,852
2,402
10, 344. 1
10, 916. 5
1,646
1,314
7, 352. 4
6, 564. 7
New Jersey
New York
264
2,588
376
2,026
1, 236. 6
9, 107. 5
2, 171. 0
8, 745. 5
237
1,409
236
1,078
1, 176. 9
6, 175. 5
1, 486. 4
5, 078. 3
No. 3—Pittsburgh
619
689
3, 324. 6
3, 462. 9
566
616
3, 127. 8
3, 283. 0
Delaware
Pennsylvania
West Virginia
4
504
111
2
566
121
66.6
2, 817. 5
440.5
21.8
3, 067. 2
373.9
4
479
83
2
525
89
66.6
2, 733. 6
327.6
21. 8
2, 953. 8
307. 4
No. 1—Boston
374
_
Federal Home Loan Bank Eeview
Table 2.—Number and estimated cost of new family dwelling units provided in all cities of 10#000
population or over, in May 1938, by Federal Home Loan Bank Districts and by States—Continued
[Amounts are shown in thousands of dollars]
Al] 1- and 2-family dwellings
All residential dwellings
Number of fam! ily
dwelling units
Federal Home Loan Bank
Districts and States
Estimated cost
Number of family dwelling units
Estimated cost
May
1938
May
1937
May 1938 May 1937
$7, 177. 4
270.0
2, 737. 4
1, 382. 8
447.6
678.6
698.6
310.6
651.8
1,461
83
146
426
182
164
227
78
155
1,331
97
173
335
160
135
216
90
125
$5, 074. 2
193.8
858. 1
1, 552. 5
473.7
526.5
613. 1
244.5
612.0
$5, 846. 3
270. 0
1, 630. 7
1, 328. 0
441. 4
650.6
678.0
305.6
542.0
3, 416. 2
323.0
2, 682. 8
410.4
4, 619. 2
346. 1
3, 810. 9
462.2
694
85
461
148
881
119
592
170
3, 142. 9
311.0
2, 428. 7
403.2
4, 075. 1
318. 1
3, 294. 8
462. 2
910
273
637
4, 619. 2
716.8
3, 902. 4
3, 810. 3
1, 028. 8
2, 781. 5
1,034
209
825
888
261
627
4, 599. 2
716.8
3, 882. 4
3, 759. 3
998.0
2, 761. 3
594
367
227
782
434
348
3, 053. 0
2, 073. 2
979.8
4, 305. 6
2, 812. 9
1, 492. 7
574
352
222
719
425
294
2, 997. 3
2, 024. 5
972.8
4, 109. 0
2, 767. 9
1, 341. 1
718
190
248
208
26
46
692
142
198
293
17
42
2, 605. 1
720. 1
1, 001. 5
709.0
88.0
86.5
2, 510. 5
586.0
734.3
1, 023. 0
91.3
75.9
690
190
248
184
26
42
657
142
193
269
17
36
2, 552. 6
720. 1
1, 001. 5
661.5
88.0
81.5
2, 469. 7
586. 0
728. 5
991.0
91.3
72.9
1,584
41
168
106
41
1,228
1,268
45
141
113
45
924
4, 083. 9
95.4
454.6
153.7
106.3
3, 273. 9
3, 669. 5
139.5
486. 1
222.6
125. 1
2, 696. 2
1,515
41
160
102
36
1,176
1,184
33
137
113
42
859
3, 908. 7
95.4
432.6
144.0
94. 8
3, 141. 9
3, 489. 7
116. 8
474. 1
222.6
112. 2
2, 564. 0
No. 10—Topeka
Colorado
Kansas
Nebraska
Oklahoma
451
96
113
65
177
675
162
182
85
246
1, 409. 7
354. 8
317.3
209. 8
527. 8
2, 455. 0
710.0
595.7
293.6
855.7
421
88
101
61
171
632
147
162
81
242
1, 351. 2
336.8
297.3
199.3
517.8
2, 371. 8
670. 0
566. 5
283. 6
851. 7
No. 11-—Portland
Idaho
Montana
Oregon
Utah
Washington
Wyoming
583
15
51
118
106
266
27
617 |
32
61 |
141
97
264
22
1, 942. 6
75.4
131.2
437. 5
358. 4
815. 6
124. 5
3, 139. 2
97.5
177.6
508.7
345.7
1, 918. 5
91.2
556
15
51
114
87
262
27
589
29
61
141
97
246
15
1, 853. 1
75.4
131.2
429.0
293.4
799.6
124.5
3, 016. 3
91. 5
177. 6
508. 7
345.7
1, 836. 6
56. 2
11,805.0
120. 0
11,603.2
81.8
10, 746. 6
157.6
10, 493. 1
95.9
2,782
38
2,727
17
2,370
40
2,307
23
10, 532. 9
120.0
10, 331. 1
81.8
9, 271. 4
127. 6
9, 047. 9
95. 9
No. 4—Winston-Salem
Alabama
District of Columbia
Florida
Georgia
Maryland
North Carolina
South Carolina
Virginia
No. 5—Cincinnati
Kentucky
Ohio
Tennessee
No. 6—Indianapolis
Indiana
Michigan
_ __
No. 7—Chicago
Illinois
Wisconsin
No. 8—Des Moines
Iowa
Minnesota
Missouri
North Dakota
South Dakota
_
No. 9—Little Rock
Arkansas
Louisiana
_
Mississippi
New Mexico
Texas
No. 12—Los Angeles
Arizona
California
Nevada
July 1938
_
i
j
!
1
May
1938
May
1937
May 1938 May 1937
2,043
87
353
478
186
164
335
78
362
1,874
97
616
362
165
147
229
95
163
$6, 648. 8
203.8
1, 329. 6
1, 674. 1
482.5
526.5
948.7
244.5
1, 239. 1
779
89
536
154
1,088
131
787
170
1,040
209
831
3,211
38
3, 156
17
2,837
50
2,764
23
375
Table 3.—Cost of building the same standard house in representative cities in specific monthsl
NOTE.—These figures are subject to correction
[Source: Federal Home Loan Bank Board]
Total building cost
Cubic-foot cost
1938
1938
June
No. 1—Boston:
Hartford, Conn
New Haven, Conn
Portland, Me
Boston, Mass
Manchester, N. H
Providence, R. I
Rutland, Vt
__
No. 4—Winston-Salem:
Birmingham, Ala
Washington, D. C
Miami, Fla
Tampa, Fla
West Palm Beach, Fla
Atlanta, Ga
Baltimore, Md
Cumberland, Md
Asheville, N. C
Raleigh, N. C
Greensboro, N. C
Columbia, S. C
Richmond, Va
Roanoke, Va
No. 7—Chicago:
Chicago, 111
Peoria, 111
Springfield, 111
Milwaukee, Wis
Oshkosh, Wis
No. 10—Topeka:
Denver, Colo
Wichita, Kans
Omaha, Nebr
Oklahoma City, Okla
__
__
__
1937
June
1936
June
1937
1936
June
March
Dec.
Sept.
June
$5, 743
5,616
5,608
6,023
5,392
5,933
5,721
$5, 869
5,771
5,614
6, ^91
5,440
5,991
5,739
$6,101
5,832
5,760
6,601
5,601
6,000
5,846
$6, 346
5,903
5,796
6,667
5,814
5,929
5,844
$6, 332
5,903
5,711
6,653
5,796
5,927
5,795
$5, 646
5,535
5, 132
5,902
5,473
5,496
5,329
.224
.252
.253
.207
.261
.260
.232
.237 ""'."238" """."224"
.246
.253
.267
.206
.217
.221
.209
.208
.224
.226
.231
.239
.200
.216 | .218
.211
.226 i .234
.197
. 199
. 196
.203
.219
.203
.218
.235
.207
.228
6,068
6,267
5,569
5,686
6,082
5,207
4,983
5,535
5, 194
5, 430
4, 719
4, 776
5, 249
5, 649
6,068
6,268
6,068
6,286
6,068
6,286
6,056
6,234
5,378
4,973
5,731
6,204
5,190
5,105
5,603
5,408
5,444
5,608
6,337
5,267
5,171
5,643
5,410
5,515
5,717
6,405
5,458
5,386
5,696
5,716
6,400
5,311
5,367
5, 743
5, 240
5,669 ! 5,627
5,381
5,900
4,949
5,012
5,424
4, 802
5, 071
4,755
5,337
5,649
4,860
5,370
5,696
4,874 I 4,873 1
5,326 1 5,242 1
5,374 1 5,474 !
4,713
4,871
4,980
.289
.279
.296
.262
.252
.301
.284
.291
.271
.253
.281
.259
.271
.232
.232
6,935
6, 695
7, 108
6, 281
6,040
7,021
6,700
7,036
6,328
6,040
7,226
6,705
7,178
6,807
6,551
6,027
6,542
6,144
7,215
6, 808
6, 978
6, 494
6,079
6, 736
6, 227
6, 502
5, 563
5, 576
.269
.244
.242 l
.243
.280
.238
.249
.243
.250
.215
.232
.226
6, 464
5,866
5, 814
5, 840
6,562
5,677
5,841
5,850
6,625
6,762
5,680
6, 111
5,838
6, 714
5, 711
5,964
5,823
5, 997
5, 164
5,565
5,427
$0. 239
.234
.234
.251
.225
.247
.238
$0. 264
.246
.238
.277
.242
.247
.241
$0. 235
.231
.214
.246
.228
.229
.222
5,975
5,850
June
1 The house on which costs are reported is a detached 6-room home of 24,000 cubic feet volume. Living room, dining room, kitchen, and lavatory on first floor;
3 bedrooms and bath on second floor. Exterior is wide-board siding with brick and stucco as features of design. Best quality materials and workmanship are used
throughout.
The house is not completed ready for occupancy. It includes all fundamental structural elements, an attached 1-car garage, an unfinished cellar, an unfinished attic,
a fireplace, essential heating, plumbing, and electric wiring equipment, and complete insulation. It does not include wall-paper nor other wall nor ceiling finish on interior
plastered surface, lighting fixtures, refrigerators, water heaters, ranges, screens, weather stripping, nor window shades.
Reported costs include, in addition to material and labor costs, compensation insurance, an allowance for contractor's overhead and transportation of materials,
plus 10 percent for builder's profit.
Reported costs do not include the cost of land nor of surveying the land, the cost of planting the lot, nor of providing walks and driveways; they do not include
architect's fee, cost of building permit, financing charges, nor sales costa
In figuring costs, current prices on the same building materials list are obtained every 3 months from the same dealers, and current wage rates are obtained from
the same reputable contractors and operative builders.
376
Federal Home Loan Bank Review
Table 4.—Estimated volume of new loans by all savings and loan associations,
classified according to purpose
[Thousands of dollars]
Mortgage loans on homes
Month
January
February
March
April
May
January
February
March
April
May
June
July
August
September
October
November
December
January
February
March
April
May
Construction
Home purchase
$155, 463
7,089
7,027
9,725
11,251
12, 812
209, 851
11,884
13, 084
18, 251
22, 098
20, 600
21, 628
20, 283
19, 342
17, 942
17, 114
14, 582
13, 043
1936.
1937.
Refinancing
$188, 637
9,298
9,680
11, 920
15, 296
16, 736
267, 509
14, 510
16, 629
22, 007
27, 381
28, 831
28, 696
24, 934
23, 172
24, 277
22, 494
18, 227
16, 351
1938
Total loans,
all purposes
Loans for
all other
purposes
$152,
10,
10,
12,
15,
12,
067
265
845
842
728
961
$50, 618
2,691
3,229
3,677
4,703
5,207
$80, 838
5,995
5,686
8,474
6,413
7,668
161,
10,
11,
15,
393
643
405
502
15, 113
15, 905
14, 668
14, 382
12,919
12, 695
11,000
11,350
49, 435
2,583
2,667
3,915
4,949
4,862
5,069
4,472
4,339
4,691
4,527
4,076
3,285
76, 301
4,794
5,298
6,501
7,261
7,016
7,369
6,317
6,026
6,582
6,791
5,885
6,461
10, 057
9,964
12, 734
13, 872
12, 992
2,745
2,989
3,907
4,681
4,436
5,640
6,077
6,909
7,124
7,267
15, 811
11, 904
13, 632
17, 526
20, 341
19, 664
10, 796
10, 628
14, 727
16, 603
17, 833
Reconditioning
$627, 623
35, 338
36, 467
46, 638
53, 391
55, 384
764, 489
44, 414
49, 083
66, 176
77, 500
76, 422
78, 667
70, 674
67, 261
66,411
63, 621
53, 770
50, 490
41,
43,
55,
62,
62,
142
290
803
621
192
Table 5.—Estimated volume of new loans by all savings and loan associations,
classified according to type of association
[Amounts are shown in thousands of dollars]
Percent of total
Volume of loans
Month
January..
February.
March
April
May
January
February __
March
April
May
June
July
August
September .
October
November.
December.
January..
February .
March
April
May
1936.
1937.
Total
Federal
$627, 623
35, 338
36, 467
46, 638
53, 391
55, 384
764, 489
44, 414
49, 083
66, 176
77, 500
76, 422
78, 667
70, 674
67, 261
66,411
63, 621
53, 770
50, 490
$228, 896
11, 764
12, 105
15, 310
17, 740
18, 966
307, 278
17, 543
19, 360
27, 829
32, 915
30, 998
31, 577
28, 693
26, 768
26, 189
24, 539
20, 829
20, 038
State members
$275, 972
16, 436
15, 206
19, 776
25, 497
25, 113
338, 174
18, 671
21, 509
28, 325
33, 153
34, 616
35, 221
31, 799
29, 866
29, 673
29, 020
24, 524
21, 797
1938
July 1938
41,
43,
55,
62,
62,
142
290
803
621
192
16,
17,
23,
26,
24,
781
520
356
107
721
17,
19,
25,
26,
27,
885
600
088
957
816
Nonmembers
$122, 755
7,138
9,156
11, 552
10, 154
11, 305
119, 037
8,200
8,214
10, 022
11, 432
10, 808
11,869
10, 182
10, 627
10, 549
10, 062
8,417
8, 655
6,476
6,170
7,359
9,557
9,655
Federal
[State mem- Nonmembers
bers
36
33
33
33
33
34
40
39
39
42
42
41
40
41
40
39
38
39
40
44
47
42
42
48
45
44
42
44
43
43
45
45
45
44
45
46
46
43
20
20
25
25
19
21
16
19
17
15
15
14
15
16
14
16
16
15
17
41
41
42
42
40
43
45
45
43
45
16
14
13
15
15
377
Table 6.—Estimated volume of new lending activity of savinss and loan associations, classified by
District and type of association
[Amounts are shown in thousands of dollars]
New loans
Feder al Home Loan Bank District and
type of association
May 1938
United States Total
Federal
State member
Nonmember
April 1938
Percent increase, May
1938 over
Apr. 1938
New loans,
May 1937
Percent increase, May
1938 over
May 1937
$62, 192
24, 721
27, 816
9,655
$62, 621
26, 107
26, 957
9,557
-1
-5
+ 3
+ 1
$76, 422
30, 998
34, 616
10, 808
-19
-20
-20
-11
District 1:
Total
Federal
State member
Nonmember
6,488
1,861
3,391
1,236
5,993
1,905
2,739
1,349
+ 8
-2
+ 24
-8
7,625
2,175
3,423
2,027
-15
-14
-1
-39
District 2:
Total
Federal
State member
Nonmember
5,402
1,786
1,662
1,954
5,172
2,272
1,475
1,425
+4
-21
+ 13
+ 37
5,980
1,976
2,179
1,825
-10
-10
-24
+7
District 3:
Total
Federal
State member
Nonmember
3,455
1,148
1,430
877
3,974
1,171
1,411
1,392
-13
-2
+ 1
-37
3,662
1,211
1,384
1,067
-6
-5
+3
-18
District 4:
Total
Federal
State member
Nonmember
9,128
3,233
4,486
1,409
9,417
3,352
4,746
1,319
-3
-4
-5
+7
9,640
4,227
4,067
1,346
-5
-24
+ 10
+5
District 5:
Total
Federal
State member
Nonmember
8,409
4,252
3,860
297
8,519
4,155
4,064
300
-1
+2
-5
-1
14, 285
6,048
7,898
339
-41
-30
-51
-12
District 6:
Total
_ _
Federal
State member
Nonmember
2,645
1,299
1,170
176
2,684
1,201
1,267
216
-1
+8
-8
-19
3,636
1,765
1,599
272
-27
-26
-27
-35
District 7:
Total
Federal.
State member
Nonmember
5,692
2,623
2,737
332
5,937
2,640
3,034
263
-4
-1
-10
+ 26
7,602
2,659
4,309
634
— 25
—1
-36
-48
District 8:
Total
Federal __State member. _ .
Nonmember
4,247
1,730
1,365
1, 152
4,333
1,785
1,428
1,120
-2
-3
-4
+3
4,541
2,058
1,561
922
-6
-16
-13
+25
District 9:
Total
Federal
State member
Nonmember
__
4,481
1,654
2,367
460
4,541
1,849
2,359
333
-1
-11
0
+ 38
4,678
1,675
2,434
569
-4
-1
-3
-19
_ __
3,640
1,526
1,086
1,028
3,547
1,551
1,026
970
+3
-2
+6
+6
4,449
1,809
1,092
1,548
— 18
-16
-1
-34
___
_ _ _ _
_
_
_
District 10:
Total
Federal
_ __
State member
Nonmember
District 11:
Total
Federal
State member. _
Nonmember
3,025
1,310
1,056
659
2,915
1,589
864
462
+4
-18
+ 22
+ 43
3,715
2,201
1,349
165
-19
-40
-22
+ 299
District 12:
Total
Federal
State member
Nonmember
5,580
2,299
3,206
75
5,589
2,637
2,544
408
0
-13
+ 26
-82
6,609
3,194
3,321
94
-16
-28
-3
-20
378
__
Federal Home Loan Bank Review
Table 7.—Monthly lending activity and total assets as reported by 2,838 savings and
loan associations in May 1938
[Source: Monthly reports from savings and loan associations to the Federal Home Loan Bank Board]
[Amounts are shown in thousands of dollars]
Loans made in May according to purpose
Number of
associations
Federal Home Loan Bank
Districts and States
UNITED STATES.
Federal
State member..
Nonmember...
No. 1—Boston.
Connecticut.
Maine
Massachusetts...
New Hampshire.
Rhode Island
Vermont
No. 2—New York..
Sub- Reportmitting! ing
reports made
Mortgage loans on 1- to 4-family nonfarm homes
Construction
Home purchase
]
Refinancing and2 reconditioning
Loans for all
other purposes
Total loans, all
purposes
Total
assets
May 31,
19383
Amount
Number RefinanNumNumAmount
Amount
ber
ber
cing
Recon- NumNumditionAmount
ber Amount ber
ing
2,838
2,420
4,642 $14,314.7
5,827 $14,681.5
7,881 $10,257.3 $3,155.2
1,298
1,189
351
1,179
1,009
232
2,566
1,740
236
8,321.4
5,353.2
640.1
2,679
2,724
424
6,842.4
6,876.9
962.2
3,978
3,358
545
5,264.3
4,430.1
562.9
1,475.7
1,412.8
266.7
1,525
1,828
334
166
155
258
1,006.0
547
1,865.3
700
818.5
349.5
326
432.7
1,831
4,472.0
339,916.3
31
20
93
10
6
6
27
15
91
10
6
6_
30
17
169
10
20
12
97.7
31.5
726.8
26.7
95.6
27.7
32
338
35
87
16
114.0
58.6
1,213.9
54.3
358.7
65.8
65
44
466
47
56
22
104.4
29.8
520.1
49.9
105.5
8.8
15.4
15.3
275.0
17.7
18.3
7.8
205
25
21
17.8
94.2
195.9
70.8
43.6
10.4
148
125
1,178
117
192
71
349.3
229.4
2,931.7
219.4
621.7
120.5
22,055.7
12,582.9
256,801. 3
9,063.8
35,305.5
4,107.1
331
619.3
210.2
166
205,2
1,148
3,463.5
368,550.8
42.8
167.4
128
40.6
164.6
177
971
519.5
2,944.0
122,806.6
245,744.2
3,687 $5,574.0 21,937 $47,982.7 $3,022,877.2
2,068.4 10,748
3,118.4 9,650
387.2 1,539
23,972.2 1,163,637.2
21,191.4 1,549,992.9
2,819.1
309,247.1
272
190
307
1,297.2
344
1,131.6
137
135
70
120
20
287
88.8
1,208.4
63
281
247.2
884.4
275
100.1
519.2
No. 3—Pittsburgh.
268
176
147
444.8
336
774.6
~27T
383.7
97.1
87
93.7
841
1,793.9
122,880.7
Delaware
Pennsylvania..
West Virginia..
6
236
26
147
23
5
108
34
10.4
376.1
58.3
295
35
16.8
667.2
90.6
5
183
0.8
272.9
110.0
2.7
55.0
39.4
1
70
16
1.7
70.3
21.7
17
656
32.4
1,441. 5
320.0
5,217.2
101,583.1
16,080.4
No. 4—Winston-Salem.
321
291
693
2,214.0
616
1,547.9
1,156
2,290.0
331.5
477"
983.0
2,942
7,366.4
292,743.9
14
17
45
46
54
52
33
30
19
124
107
89
12
196
92
54
27.3
684.1
469.2
185.5
34.8
413.7
267.7
131.7
20
77
60
55
208
102
40
54
29.0
325.4
150.7
100.4
581.8
169.7
74.4
116.5
45
386
95
174
57
206
92
101
8.0
63.2
43.5
34.9
12.8
93.6
25.3
50.2
20
180
36
52
29
93
26
41
25.8
513.5
111.3
53.3
43.3
118.0
78.4
39.4
104
767
298
370
306
597
250
250
354
589
2,023.2
1,014
2,780.6
1,297
1,406.4
558.2
~587
723.4
3,487
7,491.8
578,886.6
74
407
108
195.8
1,568.7
258.7
127
867
20
301.5
2,434.7
44.4
195
990
112
204.5
1,066.0
135.9
62.5
463.3
32.4
91
467
29
92.8
582.9
47.7
487
2,731
269
857.1
6,115.6
519.1
60,825.7
498,831.3
19,229. 6
1,807
2,461.6
137
50
171
90
361.2
217.3
548.5
172.2
551
132
300.8
166.7
219.7
50.1
297
115
292.2
132.9
1,385
422
1, 722.4
739.2
138,666. 6
97,555.7
229
206
760.9
1,474.6
735
1,029.2
371.9
287
309.1
1,746
3,946. 5
221,969.5
172
57
117
89
442.6
318.3
422
96
1,189.7
284.9
631
104
916.2
113.0
278.8
93.1
237
50
1,407
339
3,071.0
875.5
160,742. 5
61,227.0
176
229
695.5
343
767.5
577
757.1
166.1
155
240.1
1,304
2,626.3
139,597.1
153.1
293.5
174.8
46.7
27.4
93
72
159
13
187.7
173.2
371.0
27.6
8.0
149
147
226
36
19
163.1
218.7
342.4
24.4
8.5
37.6
69.7
33.5
20.8
4.5
48.1
135.3
45.0
5.8
5.9
331
369
490
71
43
589.6
890.4
966.7
125.3
54.3
27,624.0
30,809.6
71,794.9
6,246.4
3,122. 2
New Jersey.
New York..
Alabama
District of C o l u m b i a Florida
_
Georgia
Maryland
North Carolina
South Carolina
Virginia
N o . 5—Cincinnati..
Kentucky..
Ohio
Tennessee..
296
37
No. 6—Indianapolis..
Indiana...
Michigan.
150
57
No. 7—Chicago.
Illinois
Wisconsin..
No. 8—Des Moines..
Iowa
_.
Minnesota
Missouri
North Dakota.
South Dakota..
204
71
7,160.0
122,185. 3
32,104.9
19, 774. 2
36.530.1
33.566.2
16.889.3
24,533.9
1 Loans for home purchase include all those involving both a change of mortgagor and a new investment by the reporting institution on a property already built,
whether new or old.
2 Because many refinancing loans also involve reconditioning it has been found necessary to combine the number of such loans, though amounts are shown separately.
Amounts shown under refinancing include solely new money invested by each reporting institution and exclude that part of all recast loans involving no additional
investment
by the reporting institution.
3
Assets are reported principally as of May 31,1938.
* The number of member associations of the Federal Home Loan Bank System reported as of May 31, 1938, and the number of nonmembers based upon the most
recent available data for 1936 or 1937, with adjustment for conversion through May 31,1938, except for Maryland where the number of nonmembers is estimated.
July 1938
379
Table 7.—Monthly lending activity and total assets as reported by 2,838 savings and
loan associations in May 1938—Continued
[Source: Monthly reports from savings and loan associations to the Federal Home Loan Bank Board]
[Amounts are shown in thousands of dollars]
Loans made in May according to purpose
Number of
associations
Federal Home Loan Bank
Districts and States
Mortgage loans on 1- to 4-family nonfarm homes
Total
Refinancing andI recenditioning
Loans for all
other purposes
Total loans, all
purposes
Total
assets
May 31,
1938
2,051 $3,932.6
279.9
223
1,552.9
629
161
168.0
71
143.4
967
1,788.4
$179,258.4
11,654.4
84,196.5
5,106.4
4,032.8
74,268.3
400
64
82
50
21
183
Home purchase
Construction
Sub- ReportAmount
ing
mitting loans
Numreports made
Num- Amount
NumNum- Amount
ber Refinan- Recondition- Numcing
ber Amount ber
ber Amount
ber
ing
ber of
savings
and
loan
associations
No. 9—Little Rock
Arkansas
Louisiana
Mississippi
New Mexico
Texas
271
39
70
27
14
121
243
33
69
24
13
104
575
39
156
31
25
324
$1,443.7
67.9
519.6
43.2
70.4
742.6
539
64
219
23
9
224
$1,189.0
89.6
599.9
26.7
18.8
454.0
639
84
146
79
18
312
$559.9
61.9
132.8
39.9
12.0
313.3
$291.6
26.3
92.9
30.3
10.3
131.8
298
36
108
28
19
107
$448.4
34.2
207.7
27.9
31.9
146.7
No. 10—Topeka
Colorado
Kansas
Nebraska
Oklahoma
187
32
71
34
50
170
29
65
29
47
239
40
76
42
81
710.2
105.2
234.3
123.7
247.0
520
79
184
101
156
1,073.8
170.0
339.0
175.5
389.3
476
81
146
114
135
469.7
95.4
114.8
74.2
185.3
184.8
27.0
67.0
54.5
36.3
401
53
95
138
115
517.6
69.2
124.4
139.1
184.9
1,636
253
501
395
487
2,956.1
466.8
879.5
567.0
1,042.8
175,330.6
23,699.4
54,840.2
41,120.8
55,670.2
368
59
149
91
69
No. 11—Portland
Idaho
Montana
Oregon
Utah
Washington.,
Wyoming
Alaska
132
9
15
28
8
60
11
1
114
9
14
24
7
52
7
1
358~
20
38
78
44
164
13
1
917.3
57.9
91.7
187.7
141.4
395.3
37.8
5.5
220
19
24
42
18
107
10
0
410.8
27.3
45.2
81.5
43.2
185.8
27.8
0.0
425~
38
38
89
32
218
10
0
392.8
36.3
27.4
89.6
36.0
194.3
9.2
0.0
176.6
5.6
11.9
73.0
5.5
77.5
3.1
0.0
219~
15
27
39
12
124
2
0
341.2
13.0
37.0
76.1
22.9
184.8
7.4
0.0
1,222
92
127
248
106
613
35
1
2,238.7
140.1
213.2
507.9
249.0
1,037.7
85.3
5.5
106,458.6
6,526.5
9,594.9
25,408.3
10,192.6
50,508.1
4,124.4
103.8
178
13
23
36
20
71
14
1
No. 12—Los Angeles
Arizona
California
Nevada
Hawaii
142*
3
134
2
3
135~
3
127
2
3
680
13
663
1
3
379
6
362
0
11
945.1
22.5
872.9
0.0
49.7
591
16
558
7
10
1,063.2
29.4
1,005.9
12.4
15.5
147.9
0.8
142.3
3.7
1.1
272
6
261
1
4
853.7
30.1
819.7
1.0
2.9
1,922
41
1,844
9
28
5,233.3
110.1
5,028.6
19.3
75.3
261,062.4
2,259.5
255,822.6
723.6
2, 256. 7
213
4
194
5
10
2,223.4
27.3
2,187.8
2.2
6.1
Table 8.—Index of wholesale price of building materials in the United States
[1926=100]
[Source: U. S. Department of Labor]
All build- Brick and
ing matile
terials
January
February
March
April
May
June
July
August
September
October
November
December
January
February
March
April
May
1937
_
_
_
_
_
__
Cement
Lumber
Change
May 1938-Apr. 1938
May 1938-May 1937
380
Other
91.3
93.3
95.9
96.7
97.2
96.9
96.7
96.3
96.2
95.4
93.7
92.5
89.7
91.0
91.8
94.9
95.0
95.0
95.4
95.5
95.0
93.4
92.9
92.0
95.5
95.5
95.5
95.5
95.5
95.5
95.5
95.5
95.5
95.5
95.5
95.5
93.0
99.0
102. 1
103.0
103.0
102.2
101.3
99.5
99.0
97.3
94.8
93.8
83.7
83.4
83.9
83.9
83.7
83.6
83.9
84. 1
84.6
84.2
81.5
80.2
77. 1
77.4
77.6
78.7
78.7
78.7
78.7
78.8
80.6
80.6
79.6
79.6
104.7
104.7
112.9
114.9
114.9
114.9
114.9
114.9
114.9
114.9
114.9
114.9
92.9
95.0
98.9
99.9
101.3
101. 1
101.0
101.0
100.8
100.2
98.7
96.9
91.8
91. 1
91.5
91.2
90.4
91.8
91.5
91. 1
90.4
90.5
95.5
95.5
95.5
95.5
95.5
92.6
91.0
91.3
91. 1
89.3
80. 1
79.2
82.2
81.4
80.9
79.6
79.6
78.9
77.2
77.2
114.9
114.9
114.9
114.9
114.9
95.8
95.3
94.8
94.8
94. 1
- 0 . 9%
- 7 . 0%
+0.1%
- 4 . 7%
0.0%
0.0%
- 2 . 0%
-13.3%
- 0 . 6%
- 3 . 3%
0.0%
-1.9%
0.0%
0.0%
- 0 . 7%
- 7 . 1%
1938
_
Paint and Plumbing Structural
and
paint masteel
heating
terials
Federal Home Loan Bank Keview
Table 9.—Institutions insured by the Federal Savings and Loan Insurance Corporation x
[Amounts are shown in thousands of dollars]
State-chartered associations
Converted F. S. and L. A.New F. S. and L. A
Cumulative number at specified dates
Number of
investors 2
Assets
Private
repurchasable
capital
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Apr. 30, May 31,
1934
1935
1938
1936
1938
1937
May 31,
1938
May 31,
1938
May 31,
1938
$747, 706
897, 393
292, 396
$538, 645
608, 363
136, 726
_._
Total.
4
108
339
136
406
572
382
560
634
566
672
641
451
1, 114
1,576
1,879
3
637
692
640
1,969
4
4
656
694
639
868, 800
758, 600
242, 600
1 , 989 1, 870, 000
4
4
1 , 937, 495 1, 283, 734
i Beginning Dec. 31,1936, figures on number of associations insured include only those associations which have remitted premiums. Earlier figures include all asso
ciations
approved by the Board for insurance.
2
Revised and therefore not comparable with earlier figures.
3
In
addition, seven Federals with assets of $4,673,000 had been approved for conversion but had not been insured as of April 30.
4
In addition, 10 Federals with assets of $6,411,000 had been approved for conversion but had not been insured as of May 31.
Table 70.—Monthly operations of 550 identical insured State-chartered savings and loan associations
reporting during April and May 1938
April
May
Change April
to May
Percent
Share liability at end of month:
Private share accounts (number)
639, 581
641, 393
$473, 259, 800
35, 634, 400
$474, 357, 000
36, 056, 500
+0.3
+0.2
+ 1.2
508, 894, 200
510, 413, 500
+0.3
Private share investments during month
Repurchases during month
7, 963, 700
8, 308, 300
7, 626, 700
6, 339, 600
-4.2
-23.7
Mortgage loans made during month:
a. New construction
b. Purchase of homes
c. Refinancing
d. Reconditioning
e. Other purposes__
3, 067, 200
3, 413, 600
1, 908, 700
625,100
1, 360, 100
3, 129, 900
3, 478, 900
1, 847, 800
652, 300
1, 628, 000
10, 374, 700
453, 062, 900
10, 736, 900
456, 775, 200
+ 2.0
+ 1.9
-3.2
+ 4.4
+ 19.7
+ 3.5
+ 0.8
30, 808, 400
3, 057, 800
31, 279, 900
3, 189, 000
+ 1.5
+ 4.3
33, 866, 200
34, 468, 900
+ 1.8
653, 624, 500
658, 432, 800
+0.7
Paid on private subscriptions
H. O. L. C. subscriptions
Total
Total
Mortgage loans outstanding end of month
Borrowed money as of end of month:
From Federal Home Loan Banks
From other sources
TotalTotal assets, end of month
July 1938
_
381
Table 77.—Monthly operations of 1,286 identical Federal savings and loan associations reporting
during April and May 1938
April
966, 696
970, 791
Percent
+ 0.4
$716, 235, 000
210, 398, 600
$723, 774, 700
210, 822, 600
+ 1. 1
+ 0.2
926, 633, 600
934, 597, 300
+ 0.9
17, 007, 700
9, 210, 400
15, 441, 100
7, 952, 500
-9. 2
-13.7
8, 036, 500
7, 242, 500
5, 733, 300
1, 622, 700
2, 151, 800
8, 297, 800
6, 800, 800
5, 241, 600
1, 470, 900
2, 051, 300
+3.3
-6. 1
-8. 6
-9.4
-4.7
24, 786, 800
885, 028, 400
23, 862, 400
897, 180, 300
-3.7
+ 1.4
88, 443, 900
1, 926, 100
89, 353, 800
1, 811, 200
+ 1.0
-6.0
90, 370, 000
91, 165, 000
+ 0.9
1, 138, 330, 300
1, 153, 621, 300
+ 1.3
Share liability at end of month:
Private share accounts (number)
Paid on private subscriptions
Treasury and H. 0. L. C. subscriptions
Total
Private share investments during month
Repurchases during month
Mortgage loans made during month:
a. New construction
b. Purchase of homes
c. Refinancing
d. Reconditioning
e. Other purposes
_ __
__ _
_
Total-.
Mortgage loans outstanding end of month
Borrowed money as of end of month:
From Federal Home Loan Banks
From other sources
__ _ -_
_ _ _
_
_ _
Total--.
Total assets, end of month
_
Table 12.—Federal Home Loan Bank advances
to member institutions by Districts
Change April
to May
May
Table 13.—Lending operations of the Federal
Home Loan Banks
[Thousands of dollars]
Advances made Advances made
Federal Home Loan Banks during May
during Apr.
1938
1938
No
1—Boston
$119, 300. 00
$236, 500. 00
No. 2—New York
624, 100. 00
563, 000. 00
No. 3—Pittsburgh
584, 700. 00
670, 783. 33
No. 4—Winston-Salem
943, 800. 00
676, 900. 00
2, 045, 400. 00
646, 650. 00
No. 6—Indianapolis
233, 200. 00
669, 300. 00
No
721, 030. 00
471, 832. 28
No. 5—Cincinnati
7—Chicago
No. 8—Des Moines
544, 500. 00
325, 100. 00
No. 9—Little Rock
352, 500. 00
487, 000. 00
No 10—Topeka
405, 450. 00
324, 500. 00
No 11—Portland
171, 500. 00
233, 500. 00
No. 12—Los Angeles
806, 000. 00
783, 862. 50
7, 551, 480. 00
6,088,928. 11
Total
382
Repayments
monthly
*
Balance
outstanding at end
of month
Month
Loans advanced
monthly
December 1935
June 1936
December 1936
$8, 414
11, 560
13, 473
$2, 708
3,895
5,333
59, 000
10, 221
11,116
9,330
8,991
7,001
17, 591
37, 344
7,707
5,080
5,426
4,461
3,707
4,832
167, 057
169, 571
175, 607
179,511
184, 041
187, 336
200, 095
3,723
4,071
4,900
6,089
7,552
13, 280
7,091
9,293
5,465
4,791
190,
187,
183,
183,
186,
$102, 795
118,587
145, 401
1937
January through June
July
August
September
October
November
December
January
February
March
April
May
1938
538
518
125
749
510
Federal Home Loan Bank Review
Table 14.—H.
O . L. C. subscriptions to shares of savings and loan associations—
Requests and subscriptions *
Uninsured State-chartered members of
the F. H. L. B.
System
1
Federal savings and
loan associations
T»~4.«l
I
Number
(cumulative)
Amount
(cumulative)
Number
(cumulative)
Amount
(cumulative)
Number
(cumulative)
Amount
(cumulative)
Number
(cumulative)
27
89
125
125
126
126
127
2
116
112
113
106
2
100
2
95
2
89
$1, 131, 700
3, 845, 710
5, 400, 710
5, 655, 210
6, 007, 210
6, 082, 210
6, 192, 210
2
5, 757, 210
5, 357, 210
5, 382, 210
5, 197, 210
2
4, 992, 210
5, 062, 210
2
4, 772, 210
33
279
473
515
586
623
639
665
666
675
692
711
739
761
$2, 480, 000
21, 016, 900
32, 873, 600
35, 410, 100
39, 633, 420
41, 510, 420
42, 148, 470
43, 308, 470
43, 490, 020
44, 055, 020
44, 816, 020
45, 975, 130
47, 324, 670
48, 424, 670
553
2,617
3,669
3,838
4,088
4,217
4,255
4,285
4,324
4,342
4,360
4,368
4,382
4,399
$21, 139, 000
108, 591, 900
159, 298, 600
166, 884,100
177, 603, 700
182, 523, 000
184, 052, 200
185, 109, 200
187, 015, 400
187, 668, 400
188, 535, 900
188, 885, 900
189, 693, 900
190, 528, 900
613
2,985
4,267
4,478
4,800
4,966
5,021
5,066
5,102
5,130
5,158
5,179
5,216
5,249
2
45
63
52
48
47
48
2
38
40
40
36
2
33
2
29
2
26
100, 000
1, 688, 000
2, 381, 000
1, 934, 000
1, 926, 000
1, 901, 000
1, 931, 000
2
1, 426, 000
1, 526, 000
1, 526, 000
1, 491, 000
2
1, 401, 000
2
1, 326, 000
2
1, 126, 000
24
1, 980, 000
262 19, 455, 900
440 30, 283, 600
465 31, 176, 600
492 32, 950, 600
510 33, 675, 720
535 34, 954, 770
559 36, 086, 770
564 36, 331, 270
573 36,843,270
582 37,073,270
596 1 37,714,270 i
613 38,590,570
632 39, 566, 310 j
474
2,538
3,509
3,647
3,742
3,849
3,918
3,950
3,997
4,009
4, 024
4,033
4, 039
4,049
17, 766, 500
104, 477, 400
150, 368, 400
155, 917, 000
159, 511, 500
164, 226, 200
166, 447, 700
167, 154, 600
168, 762, 300
169, 035, 300
169, 670, 300
170,057,800
170, 147, 800
170,772,800
500
19, 846, 500
2,845 125, 621, 300
4,012 183, 003, 000
4,164 189, 027, 600
4,282 194, 388, 100
4,406 199, 802, 920
4,501 203, 333, 470
4,547 204, 667, 370
4,601 206, 619, 570
4,622 207, 404, 570
4,642 208,234,570
4,662 i 209, 173, 070
4,681 210, 064, 370
4,707 211,465,110
Requests:
Dec. 31, 1935
Dec. 31, 1936
June 30, 1937
July 31, 1937
Aug. 31, 1937
Sept. 30, 1937
Oct. 31, 1937
Nov. 30, 1937
Dec. 31, 1937
Jan. 31, 1938
Feb. 28, 1938
Mar. 31, 1938
Apr. 30, 1938
May 31, 1938
Subscriptions:
Dec. 31, 1935
Dec. 31, 1936
June 30, 1937
July 31, 1937
Aug. 31, 1937
Sept. 30, 1937
Oct. 31, 1937
Nov. 30, 1937
Dec. 31, 1937
Jan. 31, 1938
Feb. 28, 1938
Mar. 31, 1938
Apr. 30, 1938
May 31, 1938
2
Insured State-chartered associations
Amount
(cumulative)
$24, 750, 700
133, 454, 510
197, 572, 910
207, 949, 410
223, 244, 330
230,115,630
232, 392, 880
234, 174, 880
235, 862, 630
237, 105, 630
238, 549, 130
239, 853, 240
242, 080, 780
243, 725, 780
Refers to number of separate investments, not to number of associations in which investments are made.
Reduction due to insurance or federalization of associations.
Table 75.—Properties acquired by H . O . L C.
through foreclosure and voluntary deed 1
Number
Period
Prior to 1935
1935: Jan. 1 through
July 1 through
1936: Jan. 1 through
July 1 through
1937: Jan. 1 through
July 1 through
1938: January
February
March
April
May
June
Dec.
June
Dec.
June
Dec.
30
31
30
31
30
31
Grand total to May 30, 1938
1
9
114
983
4,449
15, 646
23, 459
26, 899
4,811
4,334
4,906
4,870
4,767
95, 247
Does not include 17,547 properties bought in by H. O. L. C.
at foreclosure sale but awaiting expiration of the redemption
period before title in absolute fee can be obtained.
In addition to the 95,247 completed cases, 509 properties
were sold at foreclosure sale to parties other than the H. O.
L. C. and 11,966 cases have been withdrawn due to payment
of delinquencies by borrowers after foreclosure proceedings
were authorized.
July 1938
Table 16.—Reconditioning Division—Summary
of all reconditioning operations of H . O . L. C.
through M a y 3 1 , 1 9 3 8 x
June 1, 1934
through
Apr. 30,
1938
Cases received 2
Contracts awarded
Number
Amount
Jobs completed:
Number
Amount
917, 044j
May 1,
1938
through
May 31,
1938
13, 386
Cumulative
through
May 31,
1938
930, 430
560, 887
547, 317
13, 570
$105, 305, 940|$2, 496, 019 $107, 801, 959
12, 529
536,143
548, 672
$101, 244, 186 $2, 254, 437 $103, 498, 623
1
All figures are subject to adjustment. Figures do not
include 52,269 reconditioning jobs, amounting to approximately $6,800,000, completed by the Corporation prior to
the organization of the Reconditioning Division on June 1,
1934.
2
Includes all property management, advance, insurance,
and loan cases referred to the Reconditioning Division
which were not withdrawn prior to preliminary inspection or
cost estimate prior to Apr. 15, 1937.
383
Building Costs
(Continued from p. 856)
A factor behind any cogent analysis of building is
the local character of trends. Kents, occupancy,
volume of building, and costs fluctuate from month
to month according to the flux of local conditions—
yet in accord with the general sweep of national
conditions. These local trends have the effect of
obscuring regional levels of material costs: levels
which exist, as may be seen by studying the yearly
averages of costs in Table 2.
Lumber, for example, costs less in the Fourth
Federal Home Loan Bank District (South Atlantic
States—see map) than in any of the other three
Districts analyzed this time, in spite of the fact
that milled lumber is an expensive item in these
States. The Fourth District is a major source of
raw lumber but is largely dependent on other areas
for its processing. The reverse is true of Oshkosh,
Wisconsin, which is a center for the manufacture of
lumber products, but lacking in the raw material
since the depletion of adjacent timber resources.
The cost of lumber during 1937 in Oshkosh was nearly
$100 higher than the average for District 4. This
is undoubtedly a reflection of the effect of transportation costs on the cost of finished products.
Because the standard house is frame, those areas
where lumber costs are low—most notably the South
Atlantic States—show generally lower costs than
other regions.
Generally, high material costs will be found in
the Middle West as represented by the Seventh
District which encompasses the Chicago area, and
in the Tenth District of semi-Western States.
Labor costs are also high in the Seventh and Tenth
Districts relative to the other two reporting.
YEARLY AVERAGES BY CITIES
Because of these regional variations, a high total
cost of the standard house in any city does not
necessarily mean the high cost of all materials used
in its building or the high cost of all labor.
Table 2.—Cost of materials and labor used in constructing a standard 6-room frame house Federal Home
Loan Bank Districts and cities—Average month of 1936 and 1937
Lumber
Federal Home Loan Bank Districts
and cities
1936
1937
Masons'
materials
1936
1937
Hardware
1936
1937
Heating and
plumbing
supplies
Painters'
materials
1936
1937
1936
Average—all reporting cities
Hartford, Conn
New Haven, Conn
Portland, Me
Boston, Mass
Manchester, N . H
Providence, R. I
Rutland, Vt
1,740
1,735
1,567
1,728
1,653
1,688
1,739
1,945
1,986
1,807
1,996
1,747
1,952
1,976
No. 4—Winston-Salem
1,646
1,817
No. 7—Chicago
1,899
No. 10—Topeka
677
695
673
611
607
635
633
681
661
681
603
621
626
665
104
102
90
92
95
109
90
667
681
692
594
699
750
675
579
748
625
686
647
670
640
747
635
719
741
708
580
744
1682
715
609
644
654
2,125
585
590
2,136
2,180
2,283
1,903
544
615
522
526
638
522
672
1,666
1,524
1,903
1,797
1,521
1,622
1,860
1,620
1,578
1,447
1,531
1,679
Chicago, 111
Peoria, 111
Milwaukee, Wis
Oshkcsh, Wis
Denver, Colo
Wichita, Kans
Omaha, Nebr
Oklahoma City, Okla...
1936
1937
2,000
1,766
1,924
1,785
1,756
1,972
2,188
1,938
1,902
99
105
91
84
82
94
91
85
94
84
81
99
74
88
629
655
657
616
104
105
100
758
743
663
717
602
614
656
661
913
710
85
84
89
108
107
94
89
90
1111
110
78
98
92
94
88
96
87
95
86
84
82
639
642
659
650
618
104
110
107
102
103
104
115
665
Total labor
1936
1937
$1,559
$755
No. 1—Boston
Birmingham, Ala
Washington, P . C
Tampa, Fla
—
West Palm Beach, Fla__
Atlanta, Ga
Baltimore, Md
Cumberland, Md
Asheville, N . C
Raleigh, N . C . _
Columbia, S. C
Richmond, Va
Roanoke, Va
1937
Total
materials
1,657
679
797
3,338
3,280
3,150
3,111
3,046
3,149
3,234
3,730
3,554
3,539
3,472
3,220
3,439
3,645
755
3,159
3,440
1,637
1,598
1,406
2,051
1,755
1,709
1,443
1,716
1,608
1,406
2,289
1,786
1,738
1,423
1,471
1,561
1,571
1,344
1,669
1,325
1,445
1,377
1,160
1,266
1,235
1,275
1,205
U01
90
84
90
92
671
663
617
796
673
643
643
668
792
640
649
602
87~
714
793
3,693
1,945
2,083
640
790
729
739
650
1,000
781
3,384
3,385
3,321
3,370
3,576
3,658
3,999
3,537
2,529
2,057
1,643
1,552
2,676
2,209
1,712
1,734
954
665
875
774
683
684
1720
913
722
3,203
2,943
3,403
3,536
3,055
3,004
3,412
3,098
3,233
2,901
3,026
3,093
91
104
107
84
109
94
710~
3,310
3,552
1,567
1,732
95
703
708
734
3,267
3,461
3,320
3,193
3,510
3,760
3,520
3,416
2,018
1,119
1,593
1,539
2,292
1,228
1,737
1,670
108
114
105
109
707
636
i Average—June and December.
384
Federal H ome Loan Bank Review
According to the index, building costs are higher
in Chicago than in any of the reporting cities in this
group. Yet in Chicago, masons' materials are next
to the lowest reported in this group of cities, and
hardware costs are also low. On the other hand,
lumber costs (over 50 percent of total material costs)
were high in both 1936 and 1937 and labor costs were
several hundred dollars higher than in any other of
the reporting cities.
In the other direction, building costs in Columbia,
South Carolina, are extremely low principally because
lumber is so cheap in that area. The 1937 average
shows a $576 difference in lumber costs between
Chicago and Columbia, yet there is only a $562
difference in total material costs.
In comparing cities within a region, however, some
significant variations in material cost levels may be
observed. Thus, material costs in New Haven,
Connecticut, were high in 1937 while in Manchester,
New Hampshire, they were comparatively low.
Both these cities depend for their existence on industry, but the former is largely affected by New
York City cost levels, and is an expanding transportation, jobbing, and wholesale center, while the
latter was hard hit by the movement of textile
industries to the South, but is now recovering as a
result of an intensive and successful campaign to
attract new business.
Labor cost levels in building are principally affected
by the proportion of unionization: in Boston, where
the labor cost as shown by the index is higher than
in any other reporting city in that District, building
craftsmen are highly organized. In Columbia, South
Carolina, the city with lowest labor costs of those
reporting in the Fourth District, building workmen
are largely unorganized. Regional wage differentials affect costs in these two cities and invite caution
in comparing them. Nevertheless, union rates have
certainly been an important factor in creating variation from regional levels.
Advertising
Directory of Member,
Federal/ and Insured Institutions
(Continued from p. 865)
Added during May-June
save in this association—education, a new home, a
new car, travel, new furniture, or security.
I. INSTITUTIONS ADMITTED TO MEMBERSHIP
IN THE FEDERAL HOME LOAN BANK SYSTEM
BETWEEN MAY 16, 1938, AND JUNE 15, 1938 *
[Listed by Federal Home Loan Bank Districts, States, and cities]
RESULTS OBTAINED BY ASSOCIATIONS
DISTRICT NO. 1
MASSACHUSETTS:
The results of window display and outdoor advertising cannot be accurately measured. However,
associations which have used these services consistently as part of a well-balanced advertising program agree that these particular forms of institutional
advertising are of definite value. Since it is not
possible to measure results accurately, these institutions emphasize the necessity for an association to
satisfy itself that the location of its display or outdoor advertising is bringing its services to the attention of the greatest proportion of the fixed population in its community which it is possible to reach
through this advertising means.
July 1938
Uxbridge:
Uxbridge Co-operative Bank, 35 North Main Street.
DISTRICT NO. 3
PENNSYLVANIA:
Philadelphia:
Economy Building Association Number 1,131 South Fourth Street.
DISTRICT NO. 4
SOUTH CAROLINA:
Harts ville:
Mutual Savings & Loan Association, Fifth Street.
DISTRICT NO. 5
KENTUCKY:
Newport:
Third Ward Loan & Building Association, 610 Monmouth Street.
OHIO:
Cleveland Heights:
Ivanhoe Savings Company, 1838 Coventry Road.
Sidney:
First Mutual Savings & Loan Company, 120 North Ohio Street.
Wadsworth:
Peoples Savings & Loan Company, 110 Main Street.
i During this period 1 Federal savings and loan association was admitted to
membership in the System.
385
D I S T R I C T NO. 7
PENNSYLVANIA:
WISCONSIN:
Milwaukee:
First Bohemian National Loan & Building Association, 1872 North Twelfth
Street.
Green Bay Avenue Mutual Building & Loan Association, 3346 North Green
Bay Avenue.
Guaranty Building & Loan Association, 1811 North Twelfth Street.
West Allis:
Greenfield Avenue Building & Loan Association, 7245 Greenfield Avenue.
III. INSTITUTIONS INSURED BY THE FEDERAL
SAVINGS AND LOAN INSURANCE CORPORATION
BETWEEN MAY 16, 1938, AND JUNE 15, 1938
D I S T R I C T NO. 2
DISTRICT NO. 8
N E W JERSEY:
IOWA:
East Orange:
Shepherd Building & Loan Association, 266 Shepherd Avenue.
West Orange:
Llewellyn Building & Loan Association of West Orange, 33 Northfleld
Avenue.
Tama:
Mutual Loan & Savings Association of Tama, Iowa.
D I S T R I C T NO. 9
TEXAS:
N E W YORK:
Taylor:
Taylor Building & Loan Association.
Port Richmond (Staten Island):
Polish Savings & Loan Association of Richmond County, N. Y.,145 Morningstar Road.
DISTRICT NO. 3
D I S T R I C T NO. 10
KANSAS:
PENNSYLVANIA:
Fort Scott:
Liberty Savings & Loan Association, 12 East Wall Street.
Pottstown:
First Federal Savings & Loan Association of Pottstown, 27 North Hanover
Street.
DISTRICT NO. 4
NEBEASKA:
Plattsmouth:
Plattsmouth Loan & Building Association.
WITHDRAWALS FROM THE FEDERAL HOME LOAN
SYSTEM BETWEEN MAY 16, 1938, AND JUNE 15,
Philadelphia:
Gromac Federal Savings & Loan Association, 1700 Sansom Street (merger
with Metropolitan Federal Savings & Loan Association of Philadelphia).
DISTRICT OF COLUMBIA:
BANK
1938
Washington:
Northwestern Federal Savings & Loan Association, Corner Fourteenth &
G Streets, Northwest.
NORTH CAROLINA:
CALIFOBNIA:
San Francisco:
German American Building-Loan Association of San Francisco, 620 Market
Street (merger with Northern California Building & Loan Association,
San Francisco, California).
ILLINOIS:
Chicago:
Russian National Building & Loan Association, 917 North Wood Street
(voluntary withdrawal).
Sixteenth Ward Building & Loan Association, 1123 Milwaukee Avenue
(voluntary withdrawal).
LOUISIANA:
New Orleans:
Canal Savings & Homestead Association, 5101 St. Claude Street (merger with
Hibernia Homestead Association, New Orleans, Louisiana).
Brevard:
Brevard Federal Savings & Loan Association, 101 Main Street.
D I S T R I C T NO. 5
OHIO:
Cleveland:
Roumanian Savings <fe Loan Company, 5705 Detroit Avenue.
Germantown:
Germantown Federal Savings & Loan Association, 41 North Main Street.
Logan:
Logan Federal Savings & Loan Association, 72 East Main Street.
Urbana:
Peoples Savings & Loan Company, 108 North Main Street.
D I S T R I C T NO. 7
MARYLAND:
Baltimore:
Pyramid Building & Loan Association of Baltimore City, Incorporated,
1237 North Carolina Street (removal from membership).
MONTANA:
Kalispell:
Great Western Building & Loan Association (voluntary withdrawal).
N E W YORK:
Port Richmond (Staten Island):
Third Ward Savings & Loan Association, 2068 Richmond Terrace (merger
with Polish Savings & Loan Association of Richmond County, N. Y., Port
Richmond, New York).
WISCONSIN:
Racine:
Lincoln Building & Loan Association of Racine, 1800 Douglas Avenue
(voluntary withdrawal).
II. FEDERAL SAVINGS AND LOAN ASSOCIATIONS
CHARTERED BETWEEN MAY 16, 1938, AND
JUNE 15, 1938
D I S T R I C T NO. 3
PENNSYLVANIA:
Cresson:
Cambria County Federal Savings & Loan Association, Post Office Building
(converted from Pennsylvania Savings & Loan Association).
DISTRICT NO. 5
OHIO:
Germantown:
Germantown Federal Savings & Loan Association, 41 North Main Street
(converted from Germantown Building & Savings Association).
Logan:
Logan Federal Savings & Loan Association, 72 East Main Street (converted
from Logan Home & Savings Association).
D I S T R I C T NO. 7
ILLINOIS:
Springfield:
, ,,.,_
Home Federal Savings & Loan Association of Springfield, 417 South Fifth
Street (converted from Home Building & Loan Association of Springfield).
DISTRICT NO. 10
ILLINOIS:
Berwyn:
Tocin Building & Loan Association, 6207 West Cermak Road.
Chicago:
Ben HUT Building & Loan Association, 1650 South Pulaski Road.
Damen Building & Loan Association, 2005 West Fifty-first Street.
Narodni Building & Loan Association, 3707 West Twenty-sixth Street.
Royal Building & Loan Association of South Chicago, 9226 Commercial
Avenue.
Silver Leaf Savings & Loan Association, 4848 West Madison Street.
West Highland Building & Loan Association, 1432 West Seventy-ninth
Street.
Cicero:
St. Anthony's Lithuanian Parish Building & Loan Association, 1500 South
Forty-ninth Street.
D I S T R I C T NO. 8
MISSOURI:
St. Louis:
Postal Employees Building, Loan & Savings Association, 6936 Idaho Avenue.
St. Joseph:
Provident Building & Loan Association of St. Joseph, 513 Francis Street.
SOUTH DAKOTA:
Sioux Falls:
Home Savings Association, Corner Tenth Street & Maine Avenue.
DISTRICT NO. 9
TEXAS:
Bryan:
Bryan Building & Loan Association, Main Street.
D I S T R I C T NO. 10
COLORADO:
Durango:
Durango Savings & Building Association, 735 Main Street.
KANSAS:
Fort Scott:
Liberty Savings & Loan Association, 12 East Wall Street.
Manhattan:
Manhattan Federal Savings & Loan Association, 404 Poyntz Avenue.
Salina:
Security Savings & Loan Association, 108 West Iron Avenue.
KANSAS:
Manhattan:
Manhattan Federal Savings & Loan Association, 404 Poyntz Avenue (converted from Manhattan Building, Loan & Savings Association).
CANCELATIONS OF FEDERAL SAVINGS AND LOAN ASSOCIATION
CHARTERS BETWEEN MAY 16, 1938, AND JUNE 15, 1938
D I S T R I C T NO. 11
MONTANA:
Havre:
Havre Building & Loan Association, 210 Third Street.
D I S T R I C T NO. 12
CALIFORNIA:
MAINE:
Rumford:
Rumford Federal Savings & Loan Association, 95 Congress Street (dissolution).
386
Los Angeles:
Lincoln Building & Loan Association, 542 South Broadway.
Monrovia:
Monrovia Mutual Building & Loan Association, 515 South Myrtle Avenue.
Federal Home Loan Bank Review
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OISTRICTS.
CITIES.
|17-1-35
OFFICERS OF FEDERAL HOME LOAN BANKS
BOSTON
CHICAGO
B. J. ROTHWELL, Chairman; E . H . W E E K S , Vice Chairman; W. H .
NEAVES,
President;
H.
N.
FAULKNER,
Vice
President;
FREDERICK
MORTON
BOOFISH,
BARDWICK,
J R . , Vice
Chairman; A. R.
GARDNER,
President-Treasurer;
President;
CONSTANCE
M.
JOHN
WRIGHT,
W I N A N T , J R . , Treasurer; L. E . D O N O V A N , Secretary; P . A. H E N D R I C K ,
Secretary; LAURETTA Q U A M , Assistant Treasurer; UNGARO & SHERWOOD,
Counsel.
Counsel.
NEW
D E S MOINES
YORK
Chairman;
C. B . R O B B I N S , Chairman; E . J. R U S S E L L , Vice Chairman; R. J. R I C H A R D -
G. L . BLISS, President; F . G. STICKEL, J R . , Vice President-General
SON, President-Secretary; W . H . LOHMAN, Vice President-Treasurer;
J. M . M A R T I N , Assistant Secretary; A. E . MUELLER, Assistant
Treasurer; E . S. TESDELL, Counsel.
GEORGE
MACDONALD,
Counsel;
ROBERT
G.
Chairman;
F.
CLARKSON,
V.
D.
LLOYD,
Vice
Vice President-Secretary;
DENTON
C. L Y O N , Treasurer.
PITTSBURGH
E.
Vice
LITTLE ROCK
T . T R I G G , Chairman; C. S. T I P P E T T S , Vice Chairman; R. H .
ARDS,
President;
G.
R.
PARKER,
Vice
President;
H.
H.
RICH-
GARBER,
Secretary-Treasurer; R . A. CUNNINGHAM, Counsel.
J. G I L B E R T L E I G H , Chairman; W. C. J O N E S , J R . , Vice Chairman; B . H.
W O O T E N , President; H . D . W A L L A C E , Vice President; W . F . T A R V I N ,
Treasurer; J. C. CONWAY, Secretary; W. H . CLARK, J R . , Counsel.
WINSTON-SALEM
TOPEKA
G. W . W E S T , Chairman; E . C. BALTZ, Vice Chairman; O. K. L A R O Q U E ,
W. R. MCWILLIAMS, Chairman; G. E . M C K I N N I S , Vice Chairman;
C. A. STERLING, President-Secretary; R. H . BURTON, Vice PresidentTreasurer; JOHN S. D E A N , JR., General Counsel.
President-Secretary; G. E . WALSTON, Vice President-Treasurer; Jos. W.
H O L T , Assistant Secretary; RATCLIFFE, H U D S O N & F E R R E L L , Counsel.
PORTLAND
CINCINNATI
T . H . T A N G E M A N , Chairman; W . D . SHULTZ, President; W. E . J U L I U S ,
Vice
President;
A.
L.
MADDOX,
Treasurer;
DWIGHT
WEBB, JR.,
Secretary; T A F T , STETTINIUS & HOLLISTER, General Counsel.
F. S. MCWILLIAMS, Chairman; B . H . HAZEN, Vice Chairman; F . H.
JOHNSON,
President-Secretary;
Los
INDIANAPOLIS
F. S. CANNON, Chairman-Vice President; S. R. LIGHT, Vice Chairman;
F R E D T.
GREENE,
President; B . F . B U R T L E S S ,
Secretary-Treasurer;
J O N E S , H A M M O N D , B U S C H M A N N & G A R D N E R , Counsel.
IRVING
BOGARDUS,
Vice
President-
Treasurer; Mrs. E . M. SOOYSMITH, Assistant Secretary.
ANGELES
C. H . W A D E , Chairman; D . G. D A V I S , Vice Chairman; M . M . H U R FORD, President; C. E . BERRY, Vice President; F. C. N O O N , SecretaryTreasurer; VIVIAN SIMPSON, Assistant Secretary; RICHARD FiTatPATRICK, General Counsel.
@FedFRASER