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Vol.6
FEDERAL
HOME LOAN BANK
REVIEW
JULY
1940
ISSUED BY
FEDERAL HOME LOAN BANK BOARD
WASHINGTON D . C .
CONTENTS
FEDERAL
HOME
LOAN
BANK
REVIEW
Published Monthly by the
FEDERAL HOME LOAN
BANK BOARD
John H, Fahey, Chairman
T. D. Webb, Vice Chairman
F. W. Catiett
W. H. Husband
F. W. Hancock, Jr.
FEDERAL HOME LOAN
BANK SYSTEM
FOR
SPECIAL
JULY
1940
ARTICLES
Insurance as a factor of stability
Waverly: A demonstration of neighborhood conservation—Part 2
R e t i r e m e n t a n d pension plans
T r e n d s in t h e combined balance sheet of m e m b e r associations
Page
326
330
335
338
STATISTICS
Residential construction a n d home-financing activity
General business conditions
Residential construction
New mortgage-lending activity of savings a n d loan associations
Foreclosures
Small-house building costs
Mortgage recordings
Federal Savings a n d Loan Insurance Corporation
Federal Savings a n d Loan System
Federal H o m e Loan Bank System
Statistical tables:
Nos. 1,2: N u m b e r a n d estimated cost of new family dwelling units . . .
No. 3: Small-house building costs
Nos. 4, 5: E s t i m a t e d lending activity of all savings and loan associations . .
No. 6: Index of wholesale price of building materials
No. 7: Progress of institutions insured by t h e Federal Savings a n d Loan
Insurance Corporation
No. 8: Lending operations of t h e Federal H o m e Loan Banks
No. 9: Government investments in savings a n d loan associations
Nos. 10, 11: H o m e Owners' Loan Corporation
Nos. 12, 13: Mortgage recordings
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347
347
348
348
348
349
349
350
352
353
354
355
356
356
356
357
FEDERAL SAVINGS AND LOAN
ASSOCIATIONS
FEDERAL SAVINGS AND LOAN
INSURANCE CORPORATION
HOME OWNERS' LOAN
CORPORATION
REPORTS
F r o m t h e m o n t h ' s news
Resolution of t h e Board
Directory of member, Federal, a n d insured institutions added during M a y - J u n e .
I n v e s t m e n t of surplus funds of housing corporations
334
359
360
360
SUBSCRIPTION PRICE OP REVIEW. The FEDERAL HOME LOAN BANK REVIEW is the Board's medium of communication with member
institutions of the Federal Home Loan Bank System and is the only official organ or periodical publication of the Board. The RHVIEW
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.
240649—40
INSURANCE AS A FACTOR OF STABILITY
The sixth anniversary of the Federal Savings and
Loan Insurance Corporation affords an opportunity
to review the operations of this Government instrumentality in the light of its effect upon the
stability of the savings and home-financing fields.
•
F R O M earliest times, the principle of insurance
has been the same. A Select Committee of the
House of Commons phrased this principle in admirable fashion over a hundred years ago: "Whenever there is a contingency, the cheapest way of
providing against it is by uniting with others, so
that each man may subject himself to a small deprivation in order that no man may be subjected
to a great loss."
Insurance, as a tool of management, is one of the
means by which progressive executives in every
type of business have sought to reduce or eliminate
the risks which threaten to undermine the stability
of a going concern. For this reason, they are accustomed to use health, accident, life, fire, theft, flood,
windstorm, and other types of policies as a primary
means of making certain that the normal balance of
everyday operations is safeguarded against unforeseen and unpredictable events which might destroy
this equilibrium.
Operations of the Federal Savings and Loan Insurance Corporation during the past six years have
proven to savings and loan executives that risks
involved in savings and loan operations can be met
successfully with the added protection of insurance
of accounts. This is possible through the ability
of the FSLIC to strengthen public confidence by
restoring an impaired association to normal operations or, if necessary, by bringing about an orderly,
business-like liquidation without loss to investors
within the limit of the insurance protection—
$5,000.
I n addition, the effect of insurance protection on
the morale of investors in institutions not directly
affected by impairment or liquidation provides a
supplementary, preventive benefit not usually found
in ordinary forms of insurance. For example, a
life insurance policy cannot prevent the death of the
insured, although it may provide adequately for his
beneficiary. In marked contrast, insurance of accounts tends to maintain confidence and to prevent
the spreading of panic among investors in an insured
326
association in the same area in which another institution may have encountered difficulties.
CLASSIFICATION OF R I S K S
The experience gained by the Federal Savings
and Loan Insurance Corporation in dealing with
savings and loan associations has led to the conclusion that there are certain definite categories into
which the risks applicable to savings and loan operations may be classified. In all, 17 settlement cases
have been handled by the Insurance Corporation
since its creation on June 27, 1934 under Title IV of
the National Housing Act. The fact that the losses
to date have been in 11 scattered States indicates
that there is no geographic area in which savings and
loan associations are immune to these major risks.
Management is the guiding hand in the operations
of every business. If this driving force directs these
activities along the wrong paths, it is only natural
that the business will eventually run into difficult
situations of one kind or another. Hence, the first
risk classification involves management—both present and future. Fortunately, the management of
most savings and loan associations is well-established
and operations are based on sound, normal foundations. The passage of years, however, brings about
inescapable transfers of authority from present
managing officers to their successors. The responsibility of today's leaders, therefore, for the protection
of present and future investors is to guard against the
risks which may be involved in future operations
under different management.
Weak, inefficient, or dishonest management has
been the principal cause of the majority of trouble
cases which have been handled thus far by the
Insurance Corporation. In several instances, weak
executive control has been indicated by lax collection
methods, by an inability or unwillingness to carry on
an orderly liquidation of owned real estate, or by a
lack of initiative or desire to keep the association
growing through the acquisition of new business.
Dishonest management has taken its toll either
Federal Home Loan Bank Review
through outright defalcations, or conspiracy and
collusion in connection with any one of the various
savings and loan functions.
A second type of risk in savings and loan operations against which it appears necessary to take
precautions, judging from the experience in these
loss cases, includes "acts of God" such as floods,
tornadoes, earthquakes, hurricanes, and other types
of emergency situations which are wholly unpredictable and which even the best efforts of management
cannot always overcome. The New England hurricane of September 1938 is an excellent example of
this type of risk and the reassurance furnished to
insured associations in this area a t that time strengthened the courage not only of investors, but of executive
officers as well—it was a factor of stability in their
continued successful operations.
Another type of risk which has been singled out
among those factors vitally affecting association
operations includes those uncertainties arising out of
the sweeping effects of general economic trends.
While it is true that the home-financing industry is
largely a local community enterprise, it is usually
impossible to isolate an individual city or town from
the influence of major fluctuations in the Nation's
Financial Statement
Federal Savings and Loan Insurance Corporation
Washington, D. C.
A t the Close of Business, May 31,1940
*
*
*
ASSETS
Cash in U. S. Treasury
$374, 346. 51
Accounts receivable
724, 143. 41
Investments—U. S. Government and Government guaranteed bonds
122, 682, 208. 46
Accrued interest
406, 855. 36
Deferred charges
10, 421. 00
Other assets
189, 705. 84
TOTAL ASSETS
124,387,680.58
LIABILITIES AND CAPITAL
Accounts payable
Deferred income
Capital and surplus
$330. 50
1, 250, 471. 91
123, 136, 878. 17
TOTAL LIABILITIES AND CAPITAL-__ 124,387,680.58
Note: A contingent liability of $323,756.46 exists due to tentative commitments
to insured associations.
July 1940
business conditions. The devastating results of the
last depression were felt by every part of the country
and by every savings and loan association. Granting
that economic changes of such proportions may be
foreseen and prepared for by wide-awake executives,
even this important factor has been overbalanced in
the past by the runs and panics which feature crisis
periods. The added support now available to savings and loan associations through the insurance of
accounts by the Federal Savings and Loan Insurance
Corporation and the credit resources of the Federal
Home Loan Bank System provides the stability and
investor protection essential to successful operations.
Often an individual community or area experiences
temporary unfavorable economic conditions or faces
a general downward trend in spite of improving
business prospects elsewhere. Thus we are led to
a fourth type of risk—individual community declines. These may be brought about by the cumulative effects of continued droughts and crop failures
like those in the "dust-bowl" regions of the Southwest, or by the fact that the principal industry of a
community decides to move away, or that the
demand for the primary income-producing product
may have shifted to a newer, more advanced, perhaps
even synthetic, invention. Again, these community
declines are beyond the control of management
except in so far as association executives through
their participation in civic activities may assist in
taking steps to prevent such occurrences.
The fifth and final type of risk is perhaps the most
difficult to visualize for the reason that insurance of
accounts acts in a preventive way as well as in a
remedial sense. When the examination of a large
institution reveals a substantial impairment, experience has shown that word usually spreads that the
organization is unsound and likely to close. The
immediate effect upon investors in other institutions
in that locality is obvious and without insurance protection it is entirely conceivable that perfectly sound
and safe associations would be threatened by these
conditions.
In a sense, the standard alibi—"It was the other
fellow's fault"—may actually be the real reason behind difficulties encountered by executives whose
associations have been victimized by the unfortunate
situation in which other institutions have found themselves. Investors holding insured accounts, on the
other hand, have the assurance and confidence that
their funds are protected and that the stability of
their association is reinforced by the resources of the
Insurance Corporation. Managers of insured asso327
ciations, therefore, are able to prepare against this
type of risk through insurance of accounts.
Summarizing, it appears that risks contingent upon
operations in the savings and loan industry may be
arranged in five distinct classifications: (1) management; (2) emergencies or "acts of God"; (3) general
economic trends; (4) declining community patterns;
and (5) the contagious nature of fear and lack of confidence. From the experience of the Insurance Corporation to date in sharing the menace of these risks
with individual associations and with groups of institutions, it is evident that insurance is a factor of stability—not only for the protection of the insured
investors but also for the protection and service of
competent management.
RESTORING STABILITY TO THE COMMUNITY
When the Insurance Corporation was created,
one of its chief functions was to strengthen the
confidence of the public in savings and loan associations. To accomplish this purpose, the Insurance
Corporation was faced immediately with remedying
the serious effect of one of these risks—the results
of the broad downward economic trend during the
early 1930's. Consequently a considerable portion
of its energy during these last six years has been
devoted to the restoration and rehabilitation of the
savings and loan industry in communities which
were drastically affected by the declines in real
estate values and depression conditions.
This program has generally taken shape in the
form of broad reorganization and consolidation
movements molding together the best assets into
strong progressive institutions worthy of insurance
of accounts and of the confidence and support of the
community as a whole. I t has been based on
thorough community surveys and careful analyses
of each area's need in relation to existing and potential facilities. The Insurance Corporation has cooperated to the fullest extent with executives and
boards of directors of individual associations and
with State supervisory authorities in these regions.
In many cases, State legislatures have passed necessary enabling legislation to permit the execution of
the plans. That stability and confidence have been
restored is evidenced by the progress registered by
these revitalized institutions.
The best indication of what may be expected
ultimately from these community rehabilitation
programs is found in the experience of the 32 insured
associations which emerged from the reorganization
plan for New Orleans. Originally in this area there
328
were 53 inactive associations with assets having
a book value of $87,386,000. After a number
of consolidations, mergers, segregations of assets,
and liquidations, the remaining active institutions
had sound assets of approximately $53,215,000 on
July 1, 1938. By July of last year their resources
had increased 8.2 percent to $57,563,000, and a
further gain has been evidenced during the last 11
months. Improvement in the private repurchasable
capital held by these institutions has been even more
striking: a 13-percent rise from July 1, 1938 to
June 30, 1939 has also been followed by additional
increases during the succeeding 11 months through
May 1940.
Programs in Chicago, Milwaukee, Baltimore,
Philadelphia, Altoona, and numerous cities in New
Jersey are in various stages of completion, and
although most of the rehabilitation work is now
finished, its long-range beneficial effect upon the
strengthening of the entire savings and loan industry
will undoubtedly prove to be one of the significant
contributions of the Insurance Corporation to the
home-financing and savings fields.
INDIVIDUAL SETTLEMENT CASES
When these risks actually become imminent in the
operations of an individual association, it is inevitable that in some cases the Insurance Corporation
will be called upon to fulfill its obligations under
the insurance contract. Under the provisions of
the National Housing Act, 1 there are several ways in
which the Corporation may act to prevent the default
of an insured association.
First of all it may arrange for a contribution to
facilitate the continued operation of the institution
under new management, if this is necessary, or its
merger with another institution provided t h a t the
amount of loss incurred by the Insurance Corporation is less than would have been entailed in the
complex proceedings of a forced liquidation.
Examples of this type of settlement are found in
the following cases which have been handled by the
FSLIC:
Because of poor management and a decline of real estate
values in its community, an association in the Northeast
developed a considerable impairment. A detailed audit of
the institution and a study of the local conditions revealed
that the most desirable method of settlement in this case
was to restore the association's capital and to merge it with a
strong well-maintained institution in the same community.
An original contribution of almost $247,000 and a contingent
i Section 406 (f) of Title IV, of the National Housing Act, as amended.
Federal Home Loan Bank Review
commitment of $104,629 were made and the merger was
then effected.
In another case, a thorough examination and audit of a
Midwestern institution disclosed an impairment of $102,098.
Finding that this amount was less than the loss which would
undoubtedly be sustained through liquidation proceedings
and also that the association was valuable to its community
and had good prospects for future success, the Corporation
in this instance made a contribution equal to the impairment
in order that the association might continue on a solvent
basis and under new management.
S E T T L E M E N T S BY L I Q U I D A T I O N
In some instances, it does not seem practical to
provide for the continued operation of an association which has become a problem case. Perhaps
there are already ample home-financing and thrift
facilities in the community, or the economic conditions of the area will not support an institution of
this type. In these situations, the Insurance
Corporation may arrange for a voluntary liquidation of the association after making a contribution
sufficient to prevent loss by the investors of the
insured portion of their accounts. Usually this
procedure is less costly than going into receivership
which involves added legal and administrative
expenses. To show how this has been worked out,
the following example may be cited from the Corporation's records:
Demonstrating the effect of unpredictable circumstances,
a New England association experienced difficulties due to
local floods and poor community business conditions. The
board of directors of this institution unanimously decided to
dissolve and requested the Insurance Corporation to contribute a sum sufficient to permit all investors to be paid
without loss. Because the required amount of $530 was
obviously less than that which would be involved in formal
liquidation proceedings, the Corporation contributed this
sum and the association then proceeded to liquidate voluntarily.
If it does not seem feasible to arrange for either
the continued operation or voluntary dissolution
of an association in default, the remaining alternative is that of receivership and forced liquidation.
At this point the Insurance Corporation must make
available to each of the insured investors in that
institution either (1) a new account in another
insured association equal to his insured investment
(up to $5,000) in the institution in default, or (2)
at the option of the investor, the full insured amount
of his account—10 percent in cash, 45 percent in
debentures payable within one year, and 45 percent
in debentures payable within three years from the
date of default.
July 1940
During the past six months, the Insurance Corporation has been called upon to make its first
settlements under the share or debenture option
plan. The financial conditions of two associations
had reached such a serious stage that the supervisory authorities ordered the institutions closed for
liquidation.
In February, the Federal Home Loan Bank Board
appointed the FSLIC as receiver for the Security
Federal Savings and Loan Association of Guymon,
Guymon, Oklahoma. This institution, with assets
of $227,000 and located in the heart of the "dust
bowl", had experienced a downward trend for
several years during which the economic conditions
of the community had grown steadily worse as
crops failed and inhabitants moved from the region.
Within a month, the Insurance Corporation had
determined the insured balance of the i n v e s t o r
accounts and requested these individuals to appear
at the office of the association to accept, at their
option, either an equal amount of shares in another
insured institution, or 10 percent of their investment
in cash and the remainder in negotiable non-interestbearing debentures of the Corporation due within
one and three years from the date of default.
All of the investors preferred to have a new
account and shares were issued by another insured
association in that State. At the end of each day
of the pay-off, the Insurance Corporation forwarded
its check to this institution covering the total of
the accounts presented to investors during the day.
In accordance with the current policy of the issuing
association, these new accounts are immediately
repurchasable, or, if not disturbed will earn dividends
in the same manner as other shares in the institution.
By the end of June, settlement had been made
on 99.8 percent of the original amount of the insured
accounts. The balance belonged to individuals who
had either failed to respond to notices, or who had
moved from the community leaving no forwarding
address. When these investors are contacted, the
same optional settlement will be made available to
them.
The Insurance Corporation, as receiver, has taken
possession of the assets of the Guymon association
and stationed its agent in that city to supervise
their disposal. Liquidation is proceeding as rapidly
as possible under such unfavorable economic conditions, always with the ultimate aim of minimizing
the Corporation's final loss.
The second liquidation case handled by the Insur(Continued on p. 358)
329
WAVERLY: A DEMONSTRATION OF NEIGHBORHOOD CONSERVATION-Part 2
The preceding article traced the life cycle of a residential
neighborhood—the growth and decay of the hundreds of
"Waverlys" in the cities of this country. The following discussion deals specifically with theWaverly district in Baltimore:
the field survey that was made, the results of the survey, and
the broad methods followed in the technical analysis upon
which the Master Plan for conservation of the area is based.
•
N E I G H B O R H O O D deterioration is the process
which invariably precedes and eventually produces the slum. The initial point of infection is a
single neglected property. Like the one rotten apple
in the barrel which may infect all the others, from
such a property neighborhood blight may spread
gradually throughout an area until decay is complete
and only total demolition remains as the final
solution.
In seeking a simple and practical preventive
remedy for this malady that leads to slums, the
Federal Home Loan Bank Board is cooperating in a
test conservation program in the Waverly area of Baltimore, where a plan has been worked out by which
vigilant groups of home owners can themselves halt
and reverse the process of community decline.
Waverly was chosen because it is not a hopelessly
depressed area. On the contrary, it is essentially
sound structurally, economically, and socially. I t is
worth preserving and it can be preserved. Yet
without the cooperative action of its residents,
disintegration, gradual though it may be, is inevitable.
T H E WAVERLY A R E A
Waverly has by no means deteriorated so far that
extraordinary community effort will be necessary to
halt its downward trend, yet group decay is clearly
foreshadowed. Somewhat depressed within and
definitely menaced from without, its location, prevailing land use, structural character and general
condition make its preservation both practical and
highly desirable from a social and financial standpoint.
Waverly contains many old homes—half of them
exceed 25 years in age and some are more than 50
years old. I t also includes block after block of fine
modern residences, largely of the brick row type.
330
Most of these have been erected since the World
War; they are well built, well maintained, and, of
their kind, excellent in architectural and functional
design. These more modern homes have obscured
Waverly's gradual but definite downward trend and
have given its residents a sense of security which
community conditions and trends do not warrant.
The great majority of the 1,610 residential structures in Waverly are well located and maintained,
and provide desirable homes. Considerable pride of
ownership is apparent, social and cultural activities
are established, and, for the present at least, satisfactory neighbors are generally assured. B u t the
useful life of the community is threatened by (1) the
adverse influence of a few scattered blocks, in which
are houses that have been permitted to degenerate
below the level of normal usefulness and now constitute definite sources of blight contagion; by (2)
the presence of 26 scattered converted residential
structures, now being used for non-conforming commercial purposes, which likewise act as centers of
infection; and by (3) the pressure of a large substandard area which extends from the northern border of
the city's downtown business district almost to the
southern boundary of Waverly.
T H E F I E L D SURVEY
These were some of the factors that made Waverly
so well suited to a Test Conservation Program. The
first step was a field survey during the 5-month
period of March 15-August 15, 1939. Under the
direction of a supervisor provided by the HOLC,
with the assistance of an HOLC appraiser, WPA
enumerators surveyed each residential and commercial structure in the area to ascertain its physical
condition. Photographs were made of each building,
front and rear. Inspections were supplemented by a
Federal Home Loan Bank Review
of each housing unit was to bring each dwelling to the
highest feasible standard.
When these individual projects were finished, a
thorough examination of the completed field report
was made, drawing upon photographs, statistical
data, and schedule of proposed rehabilitation and
architectural treatment of each property for supplementary information. By careful study of the
data and frequent field inspections, recommended
reconditioning was evaluated and estimates were
made of present values of each property and anticipated change in value when proposed structural
and community improvements had been completed.
This intensive field survey and planning stage was
the prerequisite to the production of a final comprehensive Master Plan for the conservation of Waverly.
The survey schedule contained 132 main items,
which were filled in for each structure by a crew of 10
persons: a supervisor and appraiser from HOLC, and
a photographer, two record searchers, two field
personal interview with an occupant of each dwelling
to learn the family's social and economic status.
Concurrently, city records were searched to reveal
assessments, tax levies, tax delinquencies, mortgage
status of each property, sales, and similar basic data.
Studies were made of installed utilities and present
street and alley patterns, park facilities, playground
provision, land use, block improvement schemes, and
zoning ordinances. With the cooperation of city
officials, practical adjustments were mapped.
When the data had been assembled from the field,
there was a basis for an analysis of each improved
property, and for determination of deficiencies. For
each depreciated structure, a proposal for rehabilitation was developed. Estimates were made of
needed repair and its cost; desirable remodeling and
architectural treatment were indicated. In some
cases, pencil sketches were made to portray recommended changes in architectural treatment. The
object of this careful study of the characteristics
INFLUENCE OF DEPRECIATED AREAS
DEPRECIATION
POTENTIAL
^^
w
»Ta
due to age,lack of maintenance
and unrestricted land use.
BLIGHT
due to age and
adjacent depression
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; Step- tjffifrVM-Hplfl .ul
- Vt>J*bLfc
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-££.1
3 3 S£
dtBEfcT
-
—1
SOUTHERN SECTION OF WAVERLY
"<t
The useful life of Waverly as a community is threatened by the adverse influence of a few scattered blocks, in which there are houses which have been permitted
to degenerate below the level of normal usefulness and now constitute definite sources of blight contagion. There are about 100 detached and semi-detached homes,
35 to 50 years in age, located singly and in groups, which show definite physical and functional depreciation. The potential effect of one of these neighborhood sore
spots is shown in the drawing above.
July 1940
331
Exhibit A—Dominant factors in Waverly
Item
Unfavorable
Favorable
Social
Race
All white.
Health
Slightly above Baltimore average.
Overcrowding
None.
Evidence of ownership pride
Generally present.
Absent in areas needing rehabilitation.
Economic
Income
No destitution—weekly average $30 to $50.
Mortgages
Low ratio—mortgaged to unmortgaged.
Foreclosures
Below national average.
HOLC mortgage delinquency
Tax delinquency
4 out of 7,000 receiving general public assistance.
Above national average.
Better than Baltimore average.
Neighborhood
Population density
No overcrowding.
Areas of deterioration
Several badly deteriorated spots endanger whole area.
Street pattern
Not good.
-Street condition
Fair average.
Occasional repairs and new pavements needed.
Alley condition
Unsatisfactory.
Not good.
Traffic circulation
Utilities
Ample provision.
Educational facilities
Ample provision.
Inadequate provision.
Recreational areas
Transportation
Ample provision.
Structural
Type
98.84 percent residential.
Placement
Satisfactory in large new areas.
Demolition
None recommended.
Physical condition
1,510 need no or minor repairs. Basic condition good.
100 need major reconditioning.
Mixed—92^ percent adequate for their type and kind.
Mixed—7H percent need mechanical and similar modernization.
Construction
85 percent brick, largely modern.
15 percent frame, largely old.
Age
55 percent under 25 years.
45 percent over 25 years.
Functional condition
Numerous examples of bad spacing and line.
Conformance
Scattered non-conforming structures.
Occupancy
Type
Owner 80 percent—tenant 20 percent.
For rent
For sale
Low ratio for each.
Rent scale
Slightly above comparative areas in Baltimore.
Turnover
Average around once in 20 years.
Vacancies
Low ratio—1.2 percent.
Overhang of unsold houses
Low ratio to total number of structures.
Contiguous neighborhoods
High class residential on east—north—west.
332
A developed slum virtually touches southern border.
Federal Home Loan Bank Review
enumerators, and three social investigators, furnished by the Works Progress Administration.
Office personnel, engaged in tabulating the data
gathered by the field force and in analysis, study,
and planning, were also 10 in number: an administrator, a reviewer, a city planning technician, and
an analyst, detailed by HOLC, and a typist, a draftsman, and four tabulators, provided by WPA. Total
pay-roll cost for survey and planning was $12,791,
or at the rate of $7.85 per structure. I t is believed
that the unit cost figure for Waverly constitutes a
fairly accurate base on which to project the pay-roll
expense of comparable operations elsewhere.
FINDINGS OF THE F I E L D SURVEY
Thorough study of the findings of the field survey
revealed that although trends and relationships
within the area were frequently obscure and sometimes contradictory, they permitted only one conclusion: that the incoming tide of neighborhood disintegration in Waverly had only just begun its
advance. The dominant factors, favorable and
unfavorable, disclosed by the painstaking investigation of the area are summarized in the tabulation
on the facing page (Exhibit A).
The findings of the field survey are really a picture
of Waverly. A cross-section of the 7,000 residents
closely resembles that of the average small American
city, populated by substantial families of moderate
means. Health conditions are satisfactory, nowhere
is there evidence of overcrowding, and pride of
ownership is generally evident.
The economic status of the neighborhood is good.
Family income averages $30 to $50 a week; outright
relief is being extended to less than one area resident
in 2,000. Tax delinquencies are slightly lower than
for Baltimore as a whole. Less than 40 percent of
the residential property is mortgaged, and the
original amount of indebtedness represents less than
one-third of the value of the structural improvements
upon the mortgaged properties. (This exceedingly
favorable mortgage status, however, is subject to
qualification. Peculiar to Baltimore and the vicinity
is the system of residential land tenure, known as
"ground rent". Under this system, the nominal
home owner does not own the land on which his
house stands. He may continue to occupy his
dwelling only so long as he pays ground rent, taxes,
and assessments—or purchases the ground fee for
cash. The lessor thus not only has the equivalent
of a mortgage on all structural improvements, but
July 1940
240649—40
his lien is also senior to that of any "first mortgage"
recorded after the date of land lease. Much of the
property in Waverly, whether mortgaged or free, is
subject to an additional ground rent lien.)
The major factors relating to the occupancy of
Waverly are favorable. Four out of five families
own their homes, and the current rent scale is somewhat higher in Waverly than for dwellings of similar
age and type elsewhere in Baltimore. Only 4 percent of the homes in the area are for sale, and only
1.2 percent of all units are available for rent. Market conditions are good: although terms vary to fit
the needs of the purchaser, in general existing ground
leases are permitted to stand and mortgages representing from 70 percent to 80 percent of the value of
the improvements on the land for terms of 10 to 25
years are accepted by vendors.
Foreclosures in Waverly have not been excessive.
For the 20-year period 1919-1939, the annual rate of
foreclosure was slightly over six-tenths of 1 percent—
a noteworthy record, in view of foreclosure volume
in the country in 1931-1933. The Home Owners'
Loan Corporation holds mortgages on 122 Waverly
dwellings (7% percent of the 1,610 homes in the area).
Of these 122 loans, 12 were delinquent for 12
months or more and one was in process of foreclosure
—a percentage of loans in default substantially above
the national average. The HOLC has acquired title
to 28 properties in this area, of which eight have been
resold. Of the 20 it still owns, 14 have been rented
and six are being held vacant for reconditioning, as a
precedent to sale or rental.
The buildings in Waverly are predominantly
residential structures, in good basic condition. The
majority of residences are single-family, attached,
brick, "row" houses. (Masonry structures, largely
erected within the decade 1915-1925, comprise 85
percent of the homes.) There are, however, about
100 detached and semi-detached homes, 35 to 50
years old, located singly and in groups, which show
definite physical and functional depreciation. They
constitute neighborhood sore spots, and require
extensive reconditioning.
Another unfavorable factor is that building setback lines have never been established in Waverly,
and too frequently throughout the older sections of
the area, proper spacing and alignment have been
totally disregarded. This impairs free traffic flow
and safety at street intersections.
Viewing the neighborhood as a whole, an observer
finds no overcrowding and no surplus of residences.
(Continued on p. 859)
333
2
«
«
FROM THE MONTH'S NEWS
SALES: "Business of leading building
supply firms in May exceeded the most
optimistic expectations, reflecting the
boom in small-home construction. Sales
gains over a year ago ranged to 20 percent and higher, and the industry expects
the rate of increase to be maintained in the
present month."
Wall Street Journal, June 4,
1940.
TERMITES: "How subterranean termites
can be kept out of homes: metallic shields
embedded in concrete walls; brick walls
can be capped with mortar and a metal
shield; pipes can be ringed with metal
shields; timber can be insulated from the
ground with concrete and protected by
metal shields."
Consumers'
1940.
Guide, Apr. 15,
STATISTICS: "Statistics are not a substitute for common sense."
Edith Elmer Wood, "Introduction to Housing: Facts and
Principles."
INTEREST COSTS: "Interest costs, however, are much lower than in former
periods. In 1939, the interest paid by
member banks (of the Federal Reserve
System) on time and savings deposits
amounted to about 1.4 percent of such
deposits, compared with an average of
between 3 and 3J4 percent in the late
1920's."
» » »
Question: The end of a cycle?
"The number of units started in 1939 was not much below the
annual average number started during the last complete cycle—
that is, from the low point in 1918 to the low point in 1933. On the
other hand, the current level is far below that reached at the peak
of the cycle, with the 1939 figure only about 50 percent of that for
1925 . . . . The present relatively low rate of population growth, the
apparent lack of the speculative enthusiasm which was responsible
for over-building in the 1920,s, the magnitude and duration of the
advance which has already taken place, and the failure of residential
construction to show much increase during the past year and a half,
at least raise the question whether the expansionary phase of the
present cycle may be approaching its end under present conditions/'
Samuel J. Dennis, Survey of Current
Business, May 1940.
Synthetic lumber
"In recent years many a U. S. researcher has experimented with
artificial wood made cheaply from waste agricultural products such
as cornstalks, corncobs, straw, hulls, burs. This stuff is ground up,
made into 'planks' and 'boards' by compression plus a binder. Last
week Chemical Engineer Orland Russell Sweeney of Iowa State
College exhibited synthetic lumber harder than stone, stronger
pound for pound than iron. Knotless, grainless, free of blemishes,
some of his samples were heavier than teak, others lighter than balsa."
Time, Apr. 22,1940.
tttoex
INDEXES OF BUILDING EXPENDITURES, MATERIAL PRICES>*
UNION WAGES AND RENTS; t 9 2 l - * 9 3 *
240
sao
Roland I. Robinson, Federal
Reserve Bulletin, May 1940.
Fred W. Catlett, Member of
the Federal Home Loan Bank
Board, American Savings and
Loan News, May 1940.
HEAT AND LIGHT: "Good discussion
depends on two conditions—opinions not
finally and emphatically fixed, and a real
interest in the other person's point of
view. Many people talk solely for the
purpose of winning converts to their own
inflexible beliefs."
Willard L. Thorp,
Review, May 1940.
334
Dun's
k.
Jl
W ^* Cxoi/zi DING
130
EXPENDITURES
160
120
8 S
COMPETITION: "In competition with an
almost inexhaustible supply of money,
which costs from nothing to 2 percent,
savings and loan must obtain its funds at
a lesser rate than ever before. It cannot
afford to relinquish the best loans to its
competitors; and there is no longer any
protected territory into which it can
withdraw. It can no longer retreat; it
must stand up and fight for the business."
.• *1LJ0
\.X^UNION
XJ
i
WAGES
i
i
• • • • • « ••^•7•z"~ r~m m,-*-m±r-^\
BUIL J//VG MATE RIAL
1 "••••••••••••••••'•••I
PRICES
S5^
**_-=~H
x r ^ ^ '* C/ .^J—
/
60
40
to
0
mi
Source: Bureau of Labor Statistics,U.S.D.L.
U„,
I
1
i
1
1—.J
1925
1930
1
193$
Data charted in the above table are compiled from regular monthly reports of the IT. S. Department
of Labor on the wholesale prices of building materials, from its annual reports on wage rates of union labor
in the building trades, and from its semi-annual reports on rents in 32 cities.
In the 18-year period covered by this study, the peak of building material prices was reached two years
before the construction expenditures peak (1925) which also coincided with the highest level of rents.
Labor rates set a pre-depression high mark in 1931, but surpassed this point during 1938.
"Building Construction, 1921 to 1998",
Bulletin No. 668, U. S. Department
of Labor.
Federal Home Loan Bank Review
RETIREMENT AND PENSION PLANS
In the past year, there has been considerable discussion of various types of retirement and pension
plans for savings and loan employees. This article
describes the plans now in use by five associations.
•
FOR many years, savings and loan associations
have been stressing the primary importance of
systematic saving. They have urged the general
public to build up reserves for protection in emergencies, for purchase of a home, for provision of a retirement income. Carrying out these principles by
putting them in actual practice in their own operations, savings and loan associations have emphasized
to their own employees the advantages of providing
for retirement by planned savings programs. There
has been a growing realization, however, that it is
not only the responsibility of the employee to build
up this backlog of savings for himself, but equally
the responsibility of the association which receives
the benefit of his services, to go part of the way in
creating that shock absorber.
Aside from this obligation to its employees, the
initiation of a retirement plan is a matter of good
business to an association. Personal interest in the
welfare of an employee without a doubt will reap
invaluable returns in the way of employee loyalty
and efficiency, both of which are essential to the
successful operation of a sound and profitable institution. In addition, officers have found that a
satisfied employee is as instrumental in bringing in
new business as is a satisfied customer.
Savings and loan association retirement plans are
coming to be regarded as necessary complements to
the Social Security program, since the Government
program provides only the foundation or beginning
of a satisfactory retirement income. The maximum
monthly benefit, under the Social Security Act, is
$85—much less for most junior employees and clerks.
To illustrate how this works, let us take the hypothetical case of a person employed at the age of 30 at
a yearly salary of $1,000. After five years' service,
his salary is increased to $2,400, which he continues
to receive for the next 10 years. Then when he is 45,
his salary is stepped up to $3,000, which may or may
not be his final increase before retiring at the age of
65. Assuming that this is his last salary change, his
monthly benefit will amount to only $40.50 if he is
single; if married, $60.75—necessitating
a lower
July 1940
standard of living than he enjoyed before retirement.
In view of this, some form of private retirement
arrangement to supplement the Social Security
program is considered desirable by many.
Already some few associations have developed and
put into practice several types of retirement systems
for the benefit of their personnel. The presentation
of these plans does not constitute a recommendation
by the Federal Home Loan Bank Board of any
specific type of program, but since so much interest
has been shown and since they have been the subject
of recent articles and discussions among savings and
loan groups, the following summaries of five of the
pension and retirement plans now in operation are
presented.
SUMMARIES OF F O U R COMPULSORY PLANS
The first savings and loan association to set up
some form of retirement fund for its employees
appears to have been the Albert Lea Building and
Loan Association of Albert Lea, Minnesota, where a
compulsory savings plan has been in operation since
December 1, 1935. With assets of $2,000,000 and a
full-time personnel of only four, this association is
the smallest of the five whose plans are described
here. This plan requires the association to put a
certain stated monthly amount into a separate
installment thrift account for each employee to
which is added a like amount deducted from the
employee's salary.
In the Albert Lea association, monthly employee
contributions range from $2.50 to $15.00, depending
on length of service in the association, rather than
on the amount of salary paid. For example, during
the first year of service an employee is required to
set aside $2.50 a month; the second year, $5.00 each
month. His monthly compulsory saving from the
third to the fifth year is $7.50, which is stepped up
to $10.00 from the sixth to the eighth year of service
and to $12.50 for the ninth and tenth years. Finally,
when he has been with the institution for 10 years,
his monthly contribution thereafter is $15.00. In
the case of the manager, monthly contributions
335
range from a minimum of $5.00 to a maximum of
$25.00. The Albert Lea Building and Loan Association matches these amounts dollar for dollar.
To protect these individuals who had been serving
for some time before this plan became effective,
their payments were scaled in accordance with
their service record.
This fund is not available for withdrawal by the
employee until he leaves the association, and is
kept in trust by one of the association's officers.
Therefore, the total amount collectible by each
person at the termination of his employment is a
combination of his contributions, a like amount invested by the association itself, and the accumulated
compound dividends earned on this installment
account. There is no tie-up with the purchase of
annuities or life insurance, so employees receive
their savings in a lump sum upon retirement.
Somewhat larger in assets and in number of employees is the Peoples Federal Savings and Loan
Association of Peoria, Illinois. This $6,500,000
institution has 18 full-time employees who are participating in a compulsory plan which went into effect
on January 1, 1939. The plan requires all new employees to join after six months of employment.
There is no set monthly payment which participants
must put aside. However, they are required to contribute from 2 to 5 percent of their salaries up to
$200 a year. To this fund, the association itself
makes an annual payment of 5 percent of its undivided profits.
Upon retirement, each employee receives a lumpsum payment equal to his total contributions plus
a like amount paid by the association plus dividends
on these two amounts. If, however, he resigns
before retirement age, he may withdraw only his
own payments plus the amount these have earned
while in the fund.
A third type of compulsory retirement plan is that
in use since January 1, 1938 by the 33 full-time employees of the Capitol Savings and Loan Company
of Lansing, Michigan, which has assets of about
$12,000,000. In this institution, contributions are
based entirely on the amount of salary received,
instead of on length of service as in the case of the
Albert Lea association. Three percent of the
monthly salary of an employee earning less than
$5,000 a year is deducted each month and invested
in a savings share account in the institution. On
salaries of $5,000 and over, deductions are made on
the basis of 3 percent of $5,000. The Company in
turn invests an equal amount in a savings share
336
account complementary to the employee's account.
This plan is administered by a committee of five,
three of whom are appointed by the directors of the
association and two by the employees. In order to
be eligible to receive a pension from the Company,
an employee must have retired from its services and
have reached the age of 65 years or have been in
the service of the Company for 25 years. The
amount of the pension will be computed on the basis
of the amount of monthly annuity which the combined employee's account and the Company's complementary account will purchase on the date of the
employee's retirement based on actuarial schedules.
Only in the case of death or resignation before the
pension age (65 years) can these funds be withdrawn.
I n either case the amount available to the employee
or his estate would be only his own contributions plus
dividends earned on his account. Those put aside
by the association revert to a " guaranty fund", the
chief purpose of which is to guarantee the payment
of pensions throughout the life of employees after
they have reached pension age. However, upon termination of employment the employee shall have the
privilege of leaving his contribution account intact,
in which case the Company's complementary account shall also be left intact, and a pension paid at
65 years of age based on the combined accounts. In
the case of permanent disability of a participant,
both his contributions and the association's complementary account are made available to him on the
basis of a 10-year annuity.
Another compulsory plan also installed on January 1, 1938 is that of the Minnesota Federal Savings
and Loan Association of St. Paul, Minnesota—an
$18,000,000 institution which employs approximately
70 persons. Although the plan compels all salaried
officers and full-time employees to join, no one can
participate in it until he has completed a year's
service in the institution. After this probationary
period, a contract is drawn up and is executed both
by the association and the individual. From then
on, 5 percent of his salary is deducted monthly and,
together with an equal amount contributed by the
Minnesota Federal, is placed in a separate savings
share account in the association. Under this plan,
payments are limited to not more than $500 for any
one participant in any one calendar year. The accompanying illustration shows the type of card which
the Minnesota Federal uses to keep each participant
posted as to the status of his account.
As to withdrawal privileges, an employee may
resign at any time and withdraw all of his own conFederal Home Loan Bank Review
tributions plus what these have earned in the way
of dividends. However, if he leaves the association
in less than five years after joining the fund, neither
the association's payments nor their earnings are
available to him. If he has served five years and
then resigns, he may withdraw all that has been
deducted from his salary plus their earnings, and in
addition, 25 percent of the employer's contributions
and 25 percent of what these have earned. For each
additional year after the fifth, the amount of employer contributions which can be withdrawn is
stepped up 5 percent so that if a participant leaves
after 21 years of employment, he will receive everything put into the fund by both the institution and
himself, plus all dividends earned.
The entire amount in the savings share account is
paid to the beneficiary in the event of death. I t is
also withdrawable if t h e participant becomes physically or mentally disabled or if asked to resign and
his accounts are not short.
Upon retirement, an employee may use his retirement fund as he chooses, or he may purchase an
annuity, or leave the money with the association to
be paid out to him on a monthly basis.
between the ages of 21 and 65 to decide within a
year from the time of employment whether he
wishes to join the fund. After this period he has
no opportunity to join at a later date. Payments
are made monthly by the employee on the basis of
his age and salary, and range from a minimum of
$1,75 per month on a monthly salary of $60.00 or
less when the employee is between the ages of 21
and 29 to a maximum of $60.00 per moiith when his
salary is $1,000 or over a month and he is between
50 and 65. In addition to the regular benefits provided under this pension plan, additional benefits
are provided on the basis of "past service" to each
participant at a rate of 1 percent for each full year
of regular salaried service up to December 31, 1937.
Service before attaining the age of 35 is excluded.
To start the pension fund, $10,000 was contributed
by the association at the outset. Therefore, during
the first year of operation the institution's monthly
payments were small and were finally increased to
a normal basis. At the present time, the association
is paying twice as much as the employee in order
to take care of the allowances for past services when
these benefits become due. Aside from this, it is
anticipated that the monthly payments for current
services by the association will be approximately
equal to periodic amounts contributed by the employees from their salaries.
Upon resignation or disablement, an employee
may withdraw an amount equal to his net payments
to the pension fund plus interest at the rate of 3 per
centum per annum compounded semiannually as of
January 1 and July 1. At the option of the trustees,
the withdrawal benefits may be paid either in one
payment or in 12 equal monthly installments.
Upon retirement, however, the association will
purchase an ordinary life annuity yielding the amount
of accumulated monthly benefits accrued to each
participant.
At the end of each year, the Minnesota Federal Savings and Loan Association
of St. Paul presents one of these cards to each participant in its retirement plan.
The card indicates the total amount of his savings, the sum of his monthly contributions (the employer contributions being an equal amount), and the total of
dividends accrued on the account to date.
RECOMMENDATIONS OF L E A G U E ' S COMMITTEE
A VOLUNTARY P L A N
Of the five plans discussed in this article, only one
is non-compulsory—that of the $32,000,000 Railroadmen's Federal Savings and Loan Association of
Indianapolis, Indiana, with more than 80 employees
of whom 79 are participants. In operation since
January 1, 1938, the plan requires each employee
July 1940
Over the past three years the Committee on Compensation of Management and Staff of the United
States Savings and Loan League has been studying
pension and retirement plans in operation in savings
and loan associations and banks, as well as the group
retirement programs proposed by life insurance companies. In its report included in the 1939 Savings
and Loan Annals, the Committee recommends two
types of retirement plan—one which they consider
most suitable for the average savings and loan
{Continued on p. 843)
337
TRENDS IN THE COMBINED BALANCE SHEET OF
MEMBER ASSOCIATIONS
General improvement made by the savings and loan members
of the Bank System last year was evidenced by a stronger
cash position, increases in the first mortgage loan and
private repurchasable capital accounts, and by continued reductions in the amount of owned real estate.
•
A C O M P L E T E picture of the 3,868 savings and
loan associations which were members of the
Federal Home Loan Bank System at the close of
1939 reveals marked improvement during last year.
The combined statement of condition of savings and
loan members, recently completed by the Division
of Kesearch and Statistics, shows that cash, first
mortgage loans, and private repurchasable shares
increased over 1938 both in dollar amount and in
relation to total resources. U. S. Government investment, owned real estate, and junior mortgage
liens declined in both respects. General reserves
increased in dollar amount, but dropped off slightly
in relation to assets. Since there was a substantial
reduction in owned real estate and other slow assets
during 1939, the reserve position of members was
strengthened appreciably during the year.
Aggregate resources of all savings and loan members have increased each year since the organization
of the Bank System, and last year gained $295,000,000—a rise of almost 8 percent. This increase,
greater both in dollar amount and in percentage
than the expansion in member resources during 1938,
occurred despite the fact that 1939 was the first
year in which the number of members of the Bank
System actually declined. There were 27 fewer
savings and loan association members at the end of
1939 than at the end of 1938. Nearly one-half of
the 1939 membership terminations, however, were
due to mergers and consolidations in connection
with applications for insurance of accounts by the
Federal Savings and Loan Insurance Corporation.
A S S E T ACCOUNTS
The assets of the average savings and loan member
amounted to $1,046,600 at the end of 1939. This
gain of $83,000 in average size during the year
reflects the strengthening of the industry through
merger and consolidation, as well as the maintenance of normal growth. (Average size of members
338
Trends of selected balance sheet items in relation
to total assets
Item
1939
1938
1937
1936
Pet.
Pet.
Pet.
Pet.
First mortgage loans __
_ _~ 76.76 74.41 72.82 69. 89
9.30 11.99 13.77 16. 49
Real estate owned-Real estate contracts
3.84 3.78 3.61 2. 97
Cash and other investments
6.81 6.32 6. 15 6.47
at the end of preceding years was: 1938—$963,600;
1937—$912,000; 1936—$843,700.)
First mortgage loans: A $315,000,000 increase in
the balance of first mortgage loans outstanding at
the end of the year marked 1939 as the best lending
year in nearly a decade. New mortgage loans made
during 1939 by all savings and loan members
amounted to 20.2 percent of their midyear assets, as
compared with 16.8 percent in 1938. I n all Federal
Home Loan Bank Districts, new mortgage loans of
members bore a higher ratio to total resources in
1939 than in 1938. Important from the standpoint
of earnings was the steady upward trend in ratio of
first mortgages held to total assets: up from 74
percent at the end of 1938 to nearly 77 percent on
December 31, 1939.
First mortgage holdings of member associations
amounted to $3,100,000,000 at the close of 1939, and
constituted approximately three-fourths of the mortgage holdings of all operating savings and loan
associations in the country. I t is estimated that
Bank System members made four-fifths of all new
mortgage loans by savings and loan associations last
year, and accounted for about 25 percent of the
home-mortgage financing done by all $ypes of lenders
including individuals.
Real estate owned: By disposing of a net amount of
$74,000,000 in owned real estate during 1939,
member associations doubled the net reductions made
Federal Home Loan Bank Review
Table 1.—Percentage distribution of balance sheet items for all savings and loan members of the
Federal Home Loan Bank System, 1936-1939 x
A l l savings
and l o a n members
Balance
sheet
item
Insured
Federal
1939
1938
1937
1936
1939
3,868
3,895
3,890
3,746
1,400
Percent
Percent
Percent
Percent
Percent
76.76
74.41
72.82
69.89
81.52
79.80
79.39
J u n i o r mortgage l i e n s ( i n c l u d i n g
i n t e r e s t and a d v a n c e s )
0.12
0.15
0.17
0.27
0.05
0.06
0.06
Other
0.71
0.79
0.83
0.97
0.41
0.40
0.42
Number of member
Institutions
1938
1937
1936
1,362
1,319
1,199
1939
795
1938
735
Uninsured
State
1937
560
1936
365
1939
1,673
State
1938
1937
1936
1,798
2,011
2.182
Percent
Percent
Percent
ASSETS
F i r s t mortgage loans ( i n c l u d i n g
i n t e r e s t and a d v a n c e s )
loans
(including
Real e s t a t e
share
1oans)___
s o l d on c o n t r a c t
Percent
Percent
Percent
Percent
Percent
Percent
Percent
73.16
70.57
69.07
67.53
0.15
0.18
0.21
0.24
0,35
0.63
1.12
1.24
1.26
I..32
72.03 68.82
76.26 74.67
73.42
0.15
0.12
0.17
0.16
0.34
0.53
0.53
0.58
Percent
3.81
3.78
3.61
2.97
3.46
3.43
3.33
2.93
4.8£
4.83
4.55
3.53
3.59
3.54
3.45
2.84
Real e s t a t e owned
9.30
11.99
13.77
16.49
5.70
7.46
8.41
10.32
9.61
11.15
12.61
15.01
12.81
16.06
17.48
19.23
Federal
0.89
1.09
1.13
1.15
1.00
1.00
C-98
0.91
0.85
0.87
0.87
0.87
0.85
Home Loan Bank s t o c k
0.99
0.99
0.96
Other i n v e s t m e n t s ( i n c l u d i n g
accrued i n t e r e s t )
1.72
2.12
2.61
2.73
0.83
1.26
1.68
1.72
1.96
2.3S
2.90
3.63
2.49
2.67
3.07
2.92
Cash on hand and in Banks
5.09
4.20
3.54
3.74
5.58
4.94
4.05
4.77
5.48
4.70
4.21
4.35
4.37
3.36
2.99
3.16
Office
building
Furniture,
(net)
fixtures,
and equipment (net)
Other a s s e t s
Total
assets
LIABILITIES
U . S . Government
and d e p o s i t s )
AND
1.10
1.16
1.18
1.25
1.10
1.20
1.16
1.26
1.32
1.33
1.53
1.66
0.97
1.05
1.08
1.13
0.10
0.10
0.10
0.13
0.13
0.14
0.13
0.18
0.12
0.12
0.10
0.16
O.OC
0.07
0.07
0.11
0.27
0.31
0.36
0.67
0.13
0.18
0.22
0.57
0.31
0.39
0.42
1.21
0.38
0.36
0.42
0.56
100-00
100.00
100.00
100.00
100.00
100.00
100.00
1 0 0 . 0 0 100-00
100.00
100.00
100.00
100.00
100.00
CAPITAL
investment
(shares
6.17
6.90
7.13
5.41
13.21
16.58
19.65
19.46
4.43
5.01
67.43
65.13
C3.59
64.72
70.81
65.88
61.27
61.54 53.12
55.09
4.11
4.80
5.77
6.03
0.88
1.17
1.62
1.49
2.41
2.89
D e p o s i t s and investment c e r t i f i c a t e s _ _
7.20
7.27
7.44
3.51
0.02
0.09
0.18
0.44
17.52
18.19
Advances from F e d e r a l
Private repurchasable
Mortgage pledged
1 0 0 . 0 0 100-00
shares
shares
Home Loan Banks_
3.21
0.02
0.05
0.07
0.15
53.91 54.69
69.58
69.53
68.56
68.67
2.53
8.42
8.67
9.40
8.84
19.49 22.22
8.32
7.61
7.47
8.27
5.42
2.82
4.49
5.28
5.59
4.53
6.72
8.13
9.31
7.67
4.23
5.3C
5.21
4.38
2.36
2.94
3.45
3.27
borrowed money
0.44
0.49
0.50
0.53
0,31
0.24
0.21
0.28
0.42
0.51
0.41
0.51
0.58
0.68
0.69
0.64
Loans
in process
1.12
0.80
0.63
0.90
1.78
1.37
1.18
1.85
1.19
0.90
0.64
0.93
0.40
0.29
0.29
0.50
Other
1iabilities
1.09
1.12
1.19
0.84
1.15
1.21
1.22
1.20
1.34
1.43
1.28
0.94
0.89
0.90
1.15
0.67
C a p i t a l , permanent reserve orouaranty stock
0.63
0.71
0.71
0.67
0.00
0.00
0.01
0.00
2.20
2.51
2.58
2.25
0.34
0.38
0.48
0.53
Specific
0.28
0.35
0.69
0.83
0.26
0.3C
0.43
0.92
0.33
0.40
0.72
0.78
0.26
0.32
0.80
0.80
4.89
4.95
4.87
5.24
3.27
3.45
3.47
3.8C
5.63
5.78
5.69
5.90
6.11
5.75
5-43
5.66
2.15
2.20
1.89
1.79
1.59
1.52
1.40
1.35
2.18
1.93
1.83
1.66
2.72
2.88
2.21
2.00
100-00
100-00
100-00
100-00
100.00
100.00
100.00 100.00
100.00
100.00
Other
General
reserves
reserves
U n d i v i d e d p r o f i ts
Total
1
liabilities
and c a p i t a l
100-00
1 0 0 . 0 0 100-00
100.00
1 0 0 . 0 0 100-00
Allfiguresare taken as of December 31, or nearest available date.
July 1940
339
Table 2.—Combined statement of condition for all savings and loan
NOTE
,—Percentage figures show the
[Amounts are shown in
Balance
sheet
item
Number of members
Combined
3,868
Boston
209
New York
Pittsburgh
416
532
Winston-Salem
400
ASSETS
First mortgage loans (including interest and advances)__
$3,107,387
76-76%
$370,959
78.10%
Junior mortgage liens (including interest and advances)_
4,645
0.12%
0.00%
28,642
0.71%
155,220
3.84%
376,673
9.30%
40,029
0.99%
69,706
1.72%
0.11%
45,264
9.53%
3,677
0.77%
18,310
3.85%
Other loans (including share loans)
Real estate sold on contract
Rea.1 estate owned
Federal Home Loan Bank stock
Other investments (including accrued interest)
Cash on hand and in Banks
$182,264
76.70%
$368,662
89.23%
0.12%
3,145
1.32%
0.03%
5,379
1.13%
4,332
0.96%
2,216
0.93%
3,287
0.80%
496
10,097
2.25%
72,128
16.04%
4,673
1.04%
8,409
1.87%
5,784
2.43%
31,610
13.30%
2,639
1.11%
336
0.14%
4,161
1.01%
8,960
2.17%
3,855
0.93%
1,778
0.43%
20,644
4.59%
4,910
1.09%
7,476
3.15%
17,752
4.30%
2
$322,487
71.74%
526
120
206,232
5.09%
44,606
1.10%
4,222
0.10%
25,357
5.34%
253
571
193
394
0.05%
0.13%
0,08%
0.09%
Other assets
10,823
0.27%
2,312
0.49%
765
0.17%
1,127
0.48%
849
0.20%
Total assets
$4,048,185
100.00%
$474,996
100.00%
$449,542
100.00%
$237,645
100.00%
$250,252
6.17%
$8,707
1.83%
$30,906
6.87%
2,729,739
67.43%
375,049
78.96%
166,300
4.11%
290,730
7.20%
47,384
9.97%
0.04%
0.00%
0.00%
0.01%
181,603
4.49%
17,900
0.44%
7,504
1.58%
2,287
0.48%
19,781
4.40%
5,280
1.17%
16,385
6.89%
1,276
0.54%
19,795
4.79%
2,637
0.64%
45,298
1.12%
2,861
0.60%
3,629
0.81%
1,662
0.70%
5,677
1.37%
9,917
0.24%
675
0.14%
667
0.15%
444
0.18%
1,181
0.29%
Other liabilities
18,612
0.46%
1,890
0.40%
1,023
0.23%
900
0.38%
1,594
0.39%
Permanent, reserve or guaranty stock
Office building (net)
Furniture, fixtures and equipment (net)
2
2,987
0.63%
855
0.36%
3,359
0.81%
$413,177
100.00%
J
$10,573
4.45%
$29,932
7.24%
j
317,565
70.64%
155,612
65.48%
306,170
74.10%
28,540
6.35%
28,605
12.04%
18,621
4.51%
LIABILITIES AND CAPITAL
U. S. Government investment (shares and deposits)
Private repurchasable shares
Mortgage pledged shares
Deposits and Investment certificates
Advances from Federal Home Loan Banks
Other borrowed money
Loans in process
Advance payments by borrowers
168
0
0
0
0
0
37
29
25,559
0.63%
0.00%
0.00%
0.00%
0.01%
Deferred credits to future operations
15,857
0.39%
104
0.02%
877
0.20%
353
0.15%
789
0.19%
Specific reserves
11,303
0.28%
221
0.05%
1,309
0.29%
754
0.32%
1,009
0.24%
General reserves
198,026
4.89%
457
0.01%
16,852
3.55%
30
0.01%
28,686
6.38%
232
0.05%
19,311
8.12%
14
0.01%
13,476
3.26%
15
0.00%
86,632
2.14%
11,264
2.37%
11,047
2.46%
1,756
0.74%
12,215
2.96%
$449,542
100.00%
$237,645
100.00%
$413,177
100.00%
Bonus on shares
Undivided profits
Total liabilities and capita]
$4,048,185
100.00%
$474,996
100.00%
'This information has been supplied by the 12 Federal Home Loan Banks who advise that in a few instances reports from member institutions could not
be obtained as of December 3|t |939, and that either estimates or reports as of some other date were used.
340
Federal Home Loan Bank Review
members of the Federal Home Loan Bank System as of Dec. 3 1 , 1939 *
ratio of the item listed to total assets
thousands of dollars]
Cincinnati
Indianapolis
580
213
$612,803
1
Chicago
202
0.02%
'
t
$283,455
69.47%
Little Rock
275
Topeka
228
Portland
133
Los Angeles
170
$166,092
81.61%
$179,330
84.62%
$120,367
73.09%
$103,737
76.77%
$225,510
83.72%
52
0.03%
97
0.04%
93
0.06%
38
0.03%
I9C
0.07%
143
0.05%
31
0.01%
3,305
0.40%
667
0.26%
4,847
1.19%
1,219
0.60%
1,133
0.53%
710
0.43%
866
0.64%
681
0.25%
25,411
3.10%
76,983
9.38%
7,538
0.92%
22,354
2.72%
52,462
6.39%
16,210
1.97%
712
0.09%
33,798
13.04%
21,792
8.40%
2,883
1.11%
29,288
7.18%
62,697
15.37%
4,704
1.15%
2,012
0.49%
17,804
4.36%
1,989
0.49%
395
0.10%
4,592
2.17%
10,639
5.02%
1,975
0.93%
2,283
1.08%
9,783
4.62%
1,503
0.71%
292
0.14%
12,657
7.69%
17,454
10.60%
1,722
1.04%
1,193
0.72%
6,982
4.24%
3,014
1.83%
227
0.14%
10,713
7.93%
6,082
2.35%
(7,361
6.70%
4,195
1.62%
320
0.12%
8,178
4.02%
13,889
6.82%
2,377
1.17%
1,503
0.74%
8,026
3.94%
1,144
0.56%
228
0.11%
3,515
2.60%
8,928
6.61%
1,534
1.13%
222
0.1 G%
10,045
3.73%
11,006
4.09%
2,796
1.04%
1,931
0.72%
13,657
5.07%
2,906
1.08%
415
0.15%
2,944
0.36%
285
0.11%
790
0.19%
818
0.40%
303
0.14%
270
0.16%
130
0.10%
230
0.08%
[
$820,924
100.00%
$259,247
100.00%
$408,012
100.00%
$203,526
100.00%
$211,930
100.00%
$164,689
100.00%
$135,124
100.00%
$269,373
100.00%
|
$34,4?3
4.20%
$13,885
5.36%
$28,743
7.04%
$20,342
9.99%
$17,143
8.09%
$12,017
7.30%
$22,466
8.12%
487,472
59.38%
8,342
1.08%
176,053
21.44%
18,328
2.23%
1,576
0.19%
£05,495
79.27%
2,349
0.91%
0
0.00%
10,928
4-22%
264
0.10%
285,706
70.02%
145,664
71.57%
4,897
2.41%
157,357
74.25%
120,935
73.43%
$21,065
15.59%
81,953
60.65%
3,640
1.72%
3,678
2.23%
540
0.40%
1,009
0.37%
0
0.00%
17,595
8.65%
222
0.11%
0
0.00%
9,745
4.60%
583
0.27%
0
0.00%
10,782
6.55%
269
0.16%
12,420
9.19%
6,272
4.64%
256
0.13%
102,052
38.11%
18,174
6.75%
562
0.21%
7,119
0.87%
1,744
0.21%
2,445
0.94%
570
0.22%
5,520
1.35%
1,769
0.44%
2,707
1.33%
357
0.18%
1,796
0.85%
1.148
0.54%
2,686
1.09%
480
0.35%
7,450
2.77%
260
0.10%
961
0.37%
60
0.02%
3,600
0.88%
0
0.00%
772
0.38%
0
0.00%
2,455
1.16%
810
0.38%
1,746
1.06%
622
0.38%
826
0.50%
712
0.43%
56 3
0.42%
1,188
0.88%
763
0.23%
8,287
3.00%
2,902
1.12%
758
0.29%
2,414
0.59%
1,664
0.41%
337
0.16%
656
0.40%
485
0.24%
210
0.10%
542
0.26%
526
0.32%
524
0.39%
293
0.22%
1,535
0.57%
1,518
0.56%
|
3,265
0.40%
14,473
1.76%
5,156
0.63%
2,224
0.27%
|
242
470
$171,721
66.24%
74.65%
Des Moines
1
1
18,195
4.46%
0
0.00%
26,314
6.45%
2,688
0.66%
i
!
4,251
3.15%
1,190
0.88%
90,761
33.69%
39,867
4.86%
11,766
4.54%
25,710
6.30%
7,109
3.49%
12,467
5.88%
9,057
5.50%
4,288
3.17%
9,437
3.50%
6
0.00%
20,326
2.48%
7
0.00%
6,857
2.64%
26
0.01%
5,663
1.39%
39
0.02%
3,000
1.47%
21
0.01%
4,013
1.89%
19
0.01%
2,844
1.73%
44
0.03%
2,552
i .89%
4
0.00%
5,095
1.89%
$820,924
100.00%
$259,247
100.00%
$408,012
100.00%
$203,526
100.00%
$211,930
100.00%
$164,689
100.00%
$135,124
100.00%
$269,373
100.00%
includes deferred charges, "other assets" accounts on individual statements, and various miscellaneous asset items peculiar to only a few institutions.
July 1940
240649—40
341
3
in 1938, and cut their holdings at the end of 1939 to
$376,000,000, or 9.3 percent of assets.
Real estate contracts: Reflecting the disposal of part
of the property held by these members, the real
estate sold on contract account increased $13,000,000
to a total of $155,000,000, or 3.84 percent of total
assets, at the end of 1939. This was only a slightly
larger ratio than at the close of 1938. (The combined real estate account—owned plus contracts—
equaled 13.14 percent of assets at the 1939 year-end,
compared with 15.77 percent a year earlier.)
Cash and "other investments": Despite the heavy
demands for mortgage loans, the cash position of
members became stronger last year. Decreases in
Federal Home Loan Bank advances and other borrowed money, and in U. S. Government investment,
reflected a consistent^ high level of inflow of private
funds. In fact, for the year as a whole, funds available for lending exceeded the demand for loans.
Cash and " other investments", an indication of the
liquidity position of members, rose $39,000,000 during the year. Cash increased from $158,000,000 to
$206,000,000 (up 30 percent), while " other in vestments" (which are primarily securities) continued to
decline steadily in relation to total assets, a trend in
evidence for the entire 4-year period of 1936-1939.
LIABILITY AND CAPITAL ACCOUNTS
Private repurchasable capital: Movements in the
principal balance sheet items on the liabilities side of
Trends of selected balance sheet items in relation
to total liabilities and capital
Item
1939
1938
1937
Pet.
Pet.
Pet.
Private repurchasable capital _ 67.43 65.13 63.59
Government share investments 6. 17 6.90 7.13
Pledged shares
4. 11 4.80 5.77
FHLB advances and other
borrowed money
4.93 5.77 6.09
General reserves and undivided
profits
7.04 7.15 6.76
1936
Pet
64.72
5.41
6.03
5.06
7.03
the ledger were generally favorable during 1939. Outstanding was the increase in private repurchasable
capital. On December 31, 1939, the average
amount of private repurchasable shares per member
association was $706,000—an increase of $78,000
per institution during the year, compared with an
average increase of $48,000 in 1938. Private
repurchasable shares increased over 1938 in relation
to total equities in each of the 12 Bank Districts.
(Inclusion of deposits and investment certificates
with share accounts shows that the ratio of total
private investments to total equities equaled 74.6
percent at the end of 1939.)
During 1939, investment of the U. S. Government
in shares of member associations showed a net
decline of $8,600,000. This was the first year in
which the amount of outstanding Government
investment has decreased since Government partici-
SELECTED ITEMS AS A PERCENT OF TOTAL ASSETS OF MEMBER SAVINGS AND LOAN ASSOCIATIONS, DEC. 31,1939
United States and Federal Home Loan Bank Districts
FIRST MORTGAGES
P E R C E N T
40
60
REAL ESTATE OWNED
20
P E R C E N T
40
60
80
REAL ESTATE SOLD ON CONTRACT
P E R C E N T
20
40
60
80
UNITED STATES
1 -Boston
2 - New York
3 - Pittsburgh
4 - Winston Solem
5 - Cincinnati
6 - Indianapolis
7 - Chicago
8 - Des Moines
9 - Little Rock
IO-Topeka
•I I - Portland
12-Los Angeles
Roughly 90 percent of the resources of member savings and loan associations is represented by the three items, "First Mortgages Held", "Owned Real Estate", and
"Real Estate Sold on Contract". In the great majority of cases where the measure of any one of these items deviates from the national average, the compensating difference usually appears among the other two.
342
Federal Home Loan Bank Review
pation was first authorized in 1933. Members held
approximately $11 in private repurchasable capital for
every $1 of Government subscription at the close
of last year.
Reserves: Bank System savings and loan members
added $16,600,000 to their general reserves and
undivided profits during 1939. This 6-percent
increase in reserves was not as great as the 11-percent
gains shown for mortgage loans outstanding and for
private repurchasable capital, but it is significant that
this substantial growth in reserves was accompanied
by a $73,000,000 reduction in the amount of real
estate owned—a 16-percent drop. For each class of
member in the country, as a whole, the ratio of
reserves and undivided profits to owned real estate
was greater at the end of 1939 than at the close of
the preceding year. In each Bank District, savings
and loan members reported that this same favorable
relationship prevailed between the two year-ends.
General reserves and undivided profits of all savings
and loan members equaled 76 percent of real estate
holdings at the end of 1939, compared with a ratio
of 60 percent for 1938.
The average amount of general reserves and
undivided profits per member association shows this
favorable trend over the past four years:
December
December
December
December
31, 1936
31, 1937
31, 1938
31, 1939
$59,250
61, 600
69, 000
73, 590
Pledged shares: Continuing the trend evidenced in
1938, mortgage pledged shares of members decreased
approximately $14,000,000 during 1939. This is a
further indication of the increasingly general use of
the direct-reduction loan plan.
Borrowed money: Accompanying increased lending
activity of members last year, there was a sharp rise
in the amount of private investments received. One
direct result was a net decline of $17,000,000 in
borrowed money, the bulk of which is made up of
Federal Home Loan Bank advances. The ratio of
total borrowings to total assets fell from 5.77 percent
in 1938 to 4.93 percent at the close of December of
last year.
During the first four months of 1940, there has
been further marked reduction in member borrowings.
At the end of April, Federal Home Loan Bank
advances to members had declined 26 percent
($47,500,000) from the December 31, 1939 level.
To supplement this summary of important trends,
refer to Table 1, page 339, which shows the perJuly 1940
centage distribution of balance sheet items for all
savings and loan members, by class of association,
over the 4-year period, 1936-1939. Table 2, pages
340-341, shows the dollar amount and percentage
share of each balance sheet item for members in
each Bank District.
Pension Plans
(Continued from p. 887)
association; the other, for larger institutions with
assets of more than $10,000,000.
For the average association with less than 25 employees, the Committee favors a voluntary retirement plan in which both officers and employees may
participate after one year's employment with the
institution. Those who have been in service prior
to its inauguration will receive credit for past service.
The plan provides for contributions amounting to
4 percent of salary to be made by both employee and
employer; however, the particular percentage to be
set aside yearly may be altered to fit the individual
association. I t recommends that these contributions
be made on a monthly basis and placed in separate
savings accounts, either in the association itself or in
other approved associations. Upon retirement, the
employee may either purchase a full-paid life annuity
or receive a lump-sum cash payment. In the plan,
there are provisions for withdrawals in case of
emergency, death before retirement, or resignation
to take another position.
For larger institutions having more than 50 employees, the Committee recommends the voluntary
plan of the Railroadmen's Federal Savings and Loan
Association of Indianapolis described on page 337.
In concluding its report, the Committee on Compensation of Management and Staff said: "By providing a livable retirement income for association
employees, a major step will have been taken toward
building a strong and capable personnel which will
enable these institutions to progress and maintain
their dominant position in the savings and homefinancing business."
Next month the R E V I E W plans to publish a second
and concluding article on retirement and pension
plans, describing the group plans proposed for use by
mutual savings banks and by members of the New
York State League of Savings and Loan Associations.
343
SUMMARY OF RESIDENTIAL CONSTRUCTION
AND HOME-FINANCING ACTIVITY
I. Mortgage-recording totals were $60,000,000
above the April level and at the highest monthly volume since the series was begun in
January 1939.
A. Savings and loan associations accounted for almost half of this dollar increase, but mutual savings banks reported the largest
percentage gain over April.
II. Exceeding the April totals by $7,000,000,
savings and loan mortgage lending during May established another new peak at
000,000—the
largest single month since the early $30's.
A. Every class of association shared in this gain, and all purpose classifications reflected
refinancing loans.
III. Total January-May
a rising trend.
A.
IV.
larger volumes with the exception of
1940 residential construction up 8 percent over first five months of 1939, but current movement is horizontal, not
1-family building up 16 percent, but multifamily construction declined 6 percent during first five months of
1940.
Building costs: index of material costs used in the standard house has changed only fractionally in past six months, and stands 4 percent
above 1936 average,- labor costs have continued gradual decline since March 1939, and stand 10 percent above 1936 average.
V. Foreclosures during May were 10 percent more numerous than in April and at the highest level thus far this year.
cent less, however, than in the same month of 1939.
VI.
$115,'
The first indications of reviving general business activity were in evidence during May and early June.
apparently hinges upon sustained export trade and the increased emphasis on national defense.
They were 28 per-
Continued
improvement
RESIDENTIAL BUILDING ACTIVITY AND SELECTED INFLUENCING FACTORS
1926 * 100
600
1929
344
1930
1931
1932
1933
1934
1935
1936
1937
1938
1939
1940
Federal Home Loan Bank Review
RESIDENTIAL CONSTRUCTION and HOME-FINANCING ACTIVITY
•
U N D E R the impetus of a firm foreign market
and increased emphasis on our own national
defense, industrial production started to revive in
May, and continued to rise at an accelerated pace
into the opening weeks of June. Wholesale prices
decreased slightly during May and early June, but
prices of products used in the building trades have
remained relatively stable during this period. Rates
charged by laborers in the home-construction industry recorded a fractional decline from April, thus
continuing the gradual downward movement of the
past 14 months. Hence, the anticipated diversion of
skilled labor and important materials from peacetime to wartime industries had no measureable inflationary effect on home-building costs through the
month of May.
Residential construction volume receded slightly
in May. Inasmuch as little change is normally
[1926=100]
Type of index
Residential construction i
Foreclosures (metro, cities)
Rental index (NICB)
Building material prices
Industrial production i
Manufacturing employment
Manufacturing pay rolls
Average wage per employee
1
May
1940
Apr.
1940
Percent
change
May
1939
46.2
119.0
85.6
92.5
97.3
97.4
92.5
95.0
47.8
108.0
85.6
92.5
94.5
98.0
92.4
94.3
-3.3
+10.2
0.0
0.0
+3.0
-0.6
+0.1
+0.7
48.0
165.0
85.1
89.5
85.3
91.5
81.5
89.1
Percent
change
-3.8
—27 9
+0.6
+3.4
+14.1
+6.4
+13.5
+6.6
Corrected for normal seasonal variation.
anticipated at that time of year, the seasonally corrected index remained relatively unchanged from
April. Building of new residences during the first
five months of this year was 8 percent higher than in
the same 1939 period, despite the decrease in volume
during May which brought the total for that month
nearly 4 percent below the total for May 1939.
Mortgage financing by all types of lenders increased
ESTIMATED NUMBER AND COST OF FAMILY DWELLING UNITS PROVIDED IN ALL CITIES OF 10,000 OR MORE POPULATION
Source Federal Home Loan Bank Board. Compiled from residential building permits reported to U.S. Dept. of Labor
MILLIONS
THOUSANDS
OF I NITS
OF DCLLARS
NUMBER
30
/*\
t
25
i
100
V*-/s 39
x
\
X
/
20
V
15
___. /^I9
*
]
\
38
/
%———
I
\
80
X
/
/
/
\
60
V x
C
40
/
40
5
,^~-
X
\
\
l\
938
N
'"*''
•o \
10
•
\s*l939
/i
/ ^
i
/
COST
^
• - — • " *
/
X
X
X
/
20
_C
JAN.
FEB
MAR
APR.
MAY
JUN.
JUL.
AUG.
SEP
OCT.
NOV.
DEX.
CONSTRUCTION LOANS MADE BY ALL SAVINGS a LOAN ASSOCIATIONS
MILLIONS
S
DX
JAN.
MAR.
APR.
MAY
JUN.
JUL.
AUG.
SEP
OCT.
NOV.
DEC.
FEDERAL HOME LOAN BANKS
ADVANCES OUTSTANDING AT END OF MONTH
MILLIONS
OF DCILLARS
OF DC)LLARS
FEB.
220
30
1939-
200
25
^>^1940
20
y
'
-
—
•
\
m
/ •~ ~
......
180
N
' ' V * 38
.-''*'
\
15
\
^„,
.*' —-.
-»«—••""
/
K
140
10
A
x>^ 1939
160
/94t
?
120
5
Li
JC.
100
JAN.
FEB.
MAR.
July 1940
APR.
MAY
JUN.
JUL.
AUG.
SEP
OCT.
NOV
DE"C ,
DEC.
JAN.
FEB.
MAR.
APR.
MAY
- _ 1L-^^J
JUN.
JUL.
AUG.
SEP
OCT.
NOV.
_j
DEC.
345
in May, both as compared with April and with the
corresponding month of last year. Gains in mortgage recordings over the preceding month ranged
from 17 percent for mutual savings banks down to 7
percent for insurance companies and to 3 percent for
the non-institutional group of lenders.
Savings and loan associations evidenced increased
volumes of new mortgage loans over April throughout
all purpose classifications except in the refinancing of
loans previously held by other mortgagees. Construction loans were up 9 percent from April despite
the seasonal abatement in the actual building of 1family homes.
General Business Conditions
•
BROAD expansion of the European war during
M a y and early June was still the most significant factor on the country's business horizon
as 1940 passed the halfway point. The marked
increase in the Nation's rearmament and defense
program, the sharp reactions in the security and
commodity markets, and the possibility of further
reductions in export trade were the direct result of
the invasion of the low countries which foreshadowed the entrance of Italy into the conflict and the
eventual defeat of the French armies.
At home, the rate of industrial production turned
upward for the first time this year, but there were
indications that the movement lacked breadth.
Largely because of increased steel production, the
Federal Reserve index for M a y (97) was up three
points from April, and reports for the early part of
June point to a continued rise. According to the
Department of Commerce, however, there was no
significant pickup in orders during May among the
other major industries, and in certain consumergoods lines buying was restricted by the uncertainty
manifested in security and commodity markets.
Substantial expansion of trading volume accompanied the sharp declines in stock and bond prices
from M a y 9 to May 24. New lows approximating
the levels of the middle of 1938 were established in
many issues. Yields on long-term U. S. Government bonds rose from 2.25 percent during the
week of M a y 4 to 2.49 percent during the week of
June 8. Commodity prices started to go up with
the spreading of war, but soon joined the downward trend. Largely because of declines in food
products and raw materials, the U. S. Department
of Labor all-commodity index of wholesale prices
reached the lowest point since early September.
346
May export trade ($325,000,000) exceeded the
April level in spite of the shrinking of the area to
which shipments might be made. Increased exports to Latin America largely offset the loss in
trade with the Netherlands, Belgium, Norway, and
Denmark. Shipments of agricultural commodities
continued to diminish, b u t iron, steel, coal, aviation,
petroleum, and chemical products showed large
increases. In the corresponding month of last year,
exports amounted to slightly less than $250,000,000.
Preliminary reports for the month of June indicate that the upward movement in industrial
activity continued. Some evidence of the broadening of the movement is revealed in data on freight
movements. Freight loadings during the week of
June 15 exceeded 700,000 cars—the heaviest week
since mid-November. During this same week,
stock and certain commodity prices showed a strong
tendency to rise for the first time since the war
reached an active stage.
Prospects for the second half of this year seem to
depend upon further developments in the European
war, and upon the speed with which our own national defense program can be converted from blueprint form to the production lines.
Residential Construction
[Tables 1 and 2]
•
A F T E R a rather precipitous rise during the
closing months of 1939 in the seasonally adjusted index of dwellings placed under construction,
there was a decided slackening in operations as the
current year got under way. So far in 1940, residential building has been maintained at higher levels
than in the early months of last year, but the horizontal movement in activity for the past few months
represents a drastic alteration of the rising trend
noted from April to December 1939.
Activity in the construction of 1-family, 2-family,
and apartment dwellings abated somewhat in May,
with the smallest percentage decline being shown by
the single-family home classification. The number of
multifamily dwellings built so far this year constitutes
less than one-third of total residential volume as
compared with 38 percent noted during the opening
five months of last year.
Considered geographically, trends in residential
construction have been rather spotty with no particular concentration being shown for declines during
Federal Home Loan Bank Review
May. Table 2, page 350, portrays a slightly greater
degree of uniformity in the comparison with May
1939; sharp drops in building activity for the contiguous New York, Pittsburgh, and Cincinnati Districts, were supplemented by declines in the southwestern Little Rock and Topeka Districts, thus more
than offsetting rises over the rest of the country
during this period.
New
TOTAL LOANS MADE BY ALL SAVINGS AND LOAN ASSOCIATIONS
UNITED STATES -
BY TYPE OF ASSOCIATION
Mortgage-Lending Activity of
Savings and Loan Associations
[Tables 4 and 5]
•
L E N D I N G activity of savings and loan associations continued to rise in May, exceeding the
post-depression peak established in the previous
month. New home-financing loans totaled $115,000,000, and represented an increase of $7,000,000,
or 6 percent, over April. The April-to-May rise in
volume of new mortgage loans prevailed generally
throughout the area east of the Mississippi (other
than the Chicago District), while the Des Moines
and Los Angeles Districts each reported declines in
activity greater than 9 percent.
The amount of new loans made during each month
of the year to date has been more than 20 percent
above each corresponding month of 1939. May
lending this year was $25,000,000, or 29 percent,
greater than in the same 1939 month. Construction
and home-purchase loans accounted for almost threefourths of this increase. New record levels were
reached in M a y by loans for every purpose classification other than refinancing which receded from its
April high volume.
All types of savings and loan associations shared
in the May upsurge, both from the previous month
and from M a y 1939. Not since the formation of the
Bank System have Federal or State-member associNew mortgage loans distributed by purpose
[Amounts are shown in thousands of dollars]
Purpose
Construction
Home purchase
Refinancing
Reconditioning
Other purposes
Total
July 1940
May
1940
April
1940
$36, 956 $33, 764
42, 049 37, 821
18, 034 20, 859
6,896 6,097
10, 607 9,460
114, 542 108, 001
Percent
change
May
1939
+ 9.5 $26, 646
+ 11.2 31, 289
- 1 3 . 5 15, 687
+ 13. 1 6,069
+ 12. 1 9,432
Percent
change
+
+
+
+
+
38.7
34.4
15.0
13.6
12.5
+ 6.1 89, 123 + 28.5
1
CUMULATIVE, BY YEARS
OFMILLIONS
DOL LARS
800
m
600
MM
1
400
MA
H
' As
200
/A1
mi
i^
1
/
1
ILS88
%:c.
M XH
JUN
SEP
DEC
MAR.
J JN.
SEP
DEC.
MAR.
JUN.
SEP
OEC
MAR.
JUN.
SEP
DE
ations attained the volume of new mortgage lending
reached this M a y ; moreover, nonmember savings
and loan institutions are now lending at a rate
higher than in any month since midyear 1937,
despite the continuous shift of associations from
this group into the membership classifications.
Foreclosures
•
T H E 10-percent rise for May in real estate foreclosure activity, which brought the metropolitan
communities' index (1926 = 100) to its highest point
this year (119), was substantially in excess of the
customary April-to-May seasonal advance of less
than 2 percent. However, foreclosures this May
were 28 percent less than for the same month of
1939, while a similar comparison for April showed a
smaller decline of 23 percent.
Foreclosure cases for the first five months of 1940
were 28 percent below those for the same period of
the preceding year.
Of the 85 communities reporting for both April
and May, seven showed no change from April,
while the balance was equally divided as to those
indicating increases and decreases.
347
Mortgage recordings by type of mortgagee
Small-House Building Costs
[Amounts are shown in thousands of dollars]
[Tables 3 and 6]
•
M A T E R I A L S used to construct a standard
6-room frame house cost slightly more in June
than in May. The index of material costs has remained practically unchanged for the past six months
and is a little more than 4 percent higher than the
1936 average.
The cost of labor used in building a standard
house continued the gradual decline which has been
evidenced since March 1939, bringing the index
1 percent below the level of a year ago.
Wholesale prices of building materials, as shown
by the U. S. Department of Labor index, remained
unchanged from April. This index now stands at
92.5 (1926 = 100) and is approximately 3 percent
above the level of M a y 1939.
A majority of the 28 cities submitting quarterly
cost reports for the standard house in March and
June showed higher costs at the end of the 3-month
period, but only two of the cooperating communities
had increases in excess of $100.
Construction costs for the standard house
[Average month of 1936=100]
Element of
cost
Material.
Labor
Total
May
1940
April
1940
Percent
change
May
1939
104. 4
109.9
104.3
110.0
+ 0.1
-0. 1
102.7
111. 5
+ 1.7
-1.4
106. 2
106.2
0.0
105. 6
+ 0.6
Percent
change
Mortgage Recordings
[Tables 12 and IS]
•
MAY witnessed a continuation of the general
improvement in mortgage-financing activity by
all classes of lending institutions as well as by
individuals. Nonfarm mortgage recordings this
month amounted to $372,000,000, a gain of 9 percent over April. Mutual savings banks evidenced
the largest percentage rise in mortgage recordings
from April; these institutions, however, account for
only 4 percent of all nonfarm mortgages of $20,000
or less being recorded currently. Savings and loan
associations showed the greatest dollar rise over
April, thus continuing as the dominant lender in
the home-mortgage field.
348
Percent Percent Cumula- Percent
change of May tive re- of total
from
1940 cordings
recordApril amount
(five
ings
1940
months)
Type of lender
Savings and loan associations
Insurance companies
Banks, trust companies__
Mutual savings banks-._
Individuals
Others
„
Total
_
+ 11.5
+ 7.3
+ 10.4
+ 17.3
+ 3.2
+ 9.5
33. 1 $482,171
7.8
122,589
24.5
377,790
4. 1
59,064
15.7 259,888
14.8 230,033
31. 5
8.0
24. 7
3.8
17.0
15. 0
._ + 9.4
100.0 1,531,535
100. 0
Mortgage-loan volume for all lenders in M a y
increased $60,000,000, or 19 percent, over the corresponding 1939 month; each type of mortgagee
shared in this rise, with savings and loan associations reporting both the greatest actual and percentage increases (having risen $27,000,000, or 28
percent, during this period). Mutual savings banks,
whose current financing volume is smaller than any
other (these institutions are concentrated largely
in the northeastern section of the country), registered
a 26-percent gain over last year, and life insurance
companies were up 22 percent; the three remaining
classes showed improvements of 15 percent or less.
Of the $1,532,000,000 in mortgages recorded during the first five months of 1940, savings and loan
associations accounted for $482,000,000, or 31 percent, of the total as compared with 25 percent
reported for banks and trust companies, their nearest
competitive group in the nonfarm mortgage field.
During the past year, savings and loan associations
have expanded their share of home financing while
all lenders, other than mutual savings banks, have
either held their own or accounted for a smaller
relative proportion of the total as compared with
recordings for the J a n u a r y - M a y period of 1939.
Federal Savings and Loan Insurance
Corporation
[Table 7]
AT the close of May, 2,231 savings and loan
associations with over 2,500,000 investors were
operating with the protection of insurance of accounts by the Federal Savings and Loan Insurance
Corporation. Table 7 contains for the first time a
summary showing the growth of selected asset,
•
Federal Home Loan Bank Review
capital, and liability items of all insured associations
over the past two years, together with trends in the
number of shareholders and estimates as to the
extent of investment turnover and lending operations
of these institutions.
The new Table 7 shows the progress of all insured
institutions, classified according to operation under
Federal or State charter, and reflects total growth
from all sources. Thus, the addition of newly insured
associations to the totals, together with acquisition
of assets through mergers, have accentuated the
rises due to normal operations of insured institutions
since June 1938.
I t is significant that private repurchasable capital
on the books of insured savings and loan associations
has risen over the past two years at a more rapid
pace than have the mortgage-loan balances. However, in the past few months insured associations
have been moving their "excess" funds into mortgage security in record high volumes, while the
amount of new capital acquired has remained
practically constant.
Federal Savings and Loan System
[Table 7]
m
A CONTINUATION in the steady growth of
the system of Federally chartered savings and
loan associations was noted in May. Although
only two more Federal associations were operating
at the end of May than at the close of the preceding
month, assets of the System increased by nearly
$30,000,000.
The downward trend in Federal Home Loan Bank
advances, which has been in evidence since December,
was reversed in May, due chiefly to the unusually
high rate of mortgage lending and the resulting
demand for more funds during recent months.
Progress in number and assets of Federals
[Amounts are shown in thousands of dollars]
Number
Class of association
New.__ _ .
Converted, _ __
Total
July 1940
May31, Apr. 30,
1940
1940
Approximate assets
May 31,
1940
Apr. 30,
1940
633
787
632
786
$490, 762
1, 195, 948
$478, 647
1,178,574
1,420
1,418
1, 686, 710
1, 657, 221
Federal Home Loan Bank System
[Table 8]
•
AN increase in the advances outstanding of the
12 Federal Home Loan Banks was evidenced
during May for the first time since the beginning of
the year, and figures received so far indicate that
advances continued to increase during June. This
is consistent with the normal seasonal pattern during this month when funds are required for midyear
dividend payments and withdrawal demands. Advances made during May in the amount of $9,884,000
and repayments received in the amount of $6,186,000
(resulting in a net increase of nearly $3,700,000)
brought the balance at the end of the month to $137,509,000—back up to the level of the March 31 figure.
The balance, however, was still below the end-ofMay figure for 1939 and 1938.
Advances made during May of this year were
greater than advances made in May of either of the
two preceding years, and increased 100 percent
over those made in April. Repayments during May
were lower than those made in April. The recovery
made during May was due to the increased lending
operations in all the geographic areas except the
Southwest and Northeast. All of the Banks with
the exception of Boston, New York, Little Rock and
Topeka reflected advances in excess of repayments.
Eight of the Federal Home Loan Banks reported
advances greater during May than during April and
10 Banks reported a smaller volume of repayments.
The largest percentage increases in advances outstanding were reflected in the Winston-Salem Bank
with 13.7 percent ($1,600,000) and in the Los
Angeles Bank with 11.0 percent ($1,300,000).
The largest percentage decline was sustained by the
Little Rock Bank in an amount of $500,000 (8.2
percent).
Advances outstanding of the Federal Home Loan
Banks at the end of May 1940 constituted 81.3
percent of the average of monthly advances outstanding for the year 1939—an increase of slightly
more than two percentage points over last month's
average.
Total membership of the Federal Home Loan
Bank System was 3,911 at the end of May. During
the month a net decline of five members took place
due to the admission of one Federal, four Statechartered associations and one savings bank, and
the withdrawal of 11 associations.
349
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
[Source: Federal Home Loan Bank Board.
1
Compiled from residential building permits reported to U. S. Department of Labor]
[Amounts are shown in thousands of dollars]
Number of family units provided
Monthly totals
Type of dwelling
May
1940
May
1939
Apr.
1940
Total cost of units
January-May
totals
1940
1939
January-May totals
Monthly totals
Mav
1940
Apr.
1940
Mav
1939
1939
1940
19, 406 19, 749 16, 520 74, 489 64, 276 $76, 371. 6 $76, 531. 6 $65, 020. 4 $288, 015. 9 $251, 404. 1
1,354 1,508 1, 154 5,782 4,698 3, 345. 6 3, 687. 9 3, 035. 1 13, 843. 1 11,904.3
1, 316. 3
308
87
303.5
1, 312. 6
250.0
397.8
300
66
59
8, 115 8,500 12, 351 39, 934 42, 302 24, 539. 7 24, 659. 2 41, 207. 0 123, 722. 4 135, 810. 3
1-family dwellings
2-family dwellings
Joint home and business 3
3-and-more family dwellings
28, 962 29, 82330, 084 120, 505 111,584 104, 654. 7 105, 128. 7 109, 566. 0 426, 894. 0, 400, 435. 0
Total residential
1
Estimate is based on reports from communities having approximately 95 percent of the population of all cities with population2 of 10,000 or over.
Includes 1- and 2-family dwellings with business property attached.
Table 2.—Number and estimated cost of new family dwelling units provided in all cities of 10,000
population or over, in M a y 1940, by Federal Home Loan Bank District and by State
[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 1- and 2-family dwellings
All residential dwellings
Number of family
dwelling units
Federal Home Loan Bank
District and State
UNITED STATES
No. 1—"Boston
Connecticut
Maine
Massachusetts
New Hampshire,.
Rhode Island.
Vermont
_
_ _
._ _ __
_ _ .
No. 3—Pittsburgh
Delaware,
Pennsylvania
West Virginia
350
May
1939
28, 962
30, 084
1,691
1,251
406
71 1
938
88
178
10
367
86
529
64
190
15
May 1940
May 1939
Number of family
dwelling units
May
1939
May
1940
$104, 654. 7 1 $109, 566. 0
20, 847
5, 074. 3
1,321
6, 820. 6
1, 826. 3
202. 4
3, 698. 0 !
263. 3
790. 2
40.4
1, 570. 1
220.3
2, 337. 9
184.7
692.4
68.9
399
71
584
88
169
10
Estimated cost
May 1940
17, 733 1 $80, 115. 0
1,011
232
75
435 1
64
190
15
May 1939
$68, 359. 0
5, 689. 8
4, 233. 7
1, 811. 8
202.4
2, 600. 0
263.3
771. 9
40.4
1, 099. 0
191. 1
1, 997. 6
184.7
692.4
68.9
3,771
4,465
14, 507. 5
18, 022. 7
1,862
1,899
8, 395. 8
8, 356. 7
1,002
2,769
1,061
3,404
4, 091. 6
10, 415. 9
4, 135. 7
13, 887. 0
450
1,412
318
1,581
2, 040. 8
6, 355. 0
1, 498. 9
6, 857. 8
___ _
1, 586
2,534
6, 633. 9
10, 278. 2
1, 199
1,006
5, 447. 4 |
4, 762. 0
_
11
1, 442
133
7
1,715
812 j
66.6
5, 938. 7
628. 6
28.0
7, 260. 6
2, 989. 6
11
1, 068
120
7
883
116
66.6
4, 797. 2
583.6
28.0
4, 232. 3
501. 7
No. 2—New York,
New Jersey
New York
May
1940
Estimated cost
_ _
_ _ _ __
Federal Home Loan Bank Review
Table 2.—Number and estimated cost of new family dwelling units provided in all cities of 10,000
population or over, in May 1940, by Federal Home Loan Bank District and by State—Contd.
[Amounts are shown in thousands of dollars]
All 1- and 2-family dwellings
All residential dwellings
Number of family
dwelling units
Federal Home Loan Bank
District and State
Estimated cost
Number of family
dwelling units
Estimated cost
May
1940
May
1939
May 1940
May 1939
May
1940
May
1939
4,684
1,665
343
661
381
501
450
262
421
3,621
190
896
1,058
520
259
278
149
271
$14, 412. 7
4, 679. 1
1, 632. 4
2, 245. 4
863.7
1, 469. 0
1, 295. 1
676. 5
1, 551. 5
$11, 308. 7
301.3
3, 433. 9
3, 367. 4
1, 270. 3
853. 1
720.2
376.7
985.8
2,584
268
231
632
363
289
366
125
310
2,250
190
364
592
232
259
258
134
221
$8, 698. 6
582.3
1, 389. 3
2, 213. 5
854.0
959.0
1, 119. 7
290.5
1, 290. 3
$7, 922. 0
301.3
2, 170. 4
2, 087. 2
563.6
853. 1
700.0
370.2
876. 2
2,442
127
2,099
216
4,193
929
1,778
1,486
9, 306. 9
385.3
8, 313. 8
607.8
15, 324. 1
2, 789. 3
7, 606. 5
4, 928. 3
1,275
117
942
216
959
110
658
191
5, 539. 2
354.7
4, 576. 7
607.8
4, 328. 7
269.9
3, 435. 6
623. 2
No. 6—Indianapolis
Indiana
Michigan
3,011
572
2,439
2,032
650
1,382
12,579.3
1, 957. 7
10, 621. 6
8, 607. 8
2, 193. 3
6, 414. 5
2,274
565
1,709
1,849
467
1,382
9, 562. 1
1, 941. 7
7, 620. 4
8, 063. 3
1, 648. 8
6, 414. 5
No. 7—Chicago
Illinois.
Wisconsin._
1,360
897
463
1, 103
717
386
6, 628. 4
4, 665. 3
1, 963. 1
5, 240. 3
3, 706. 9
1, 533. 4
1,337
879
458
994
631
363
6, 586. 0
4, 634. 4
1, 951. 6
4, 861. 8
3, 380. 3
1, 481, 5
1, 365
447
484
317
51
66
1,223
329
471
328
43
52
5, 279. 1
1, 683. 8
2, 040. 6
1, 212. 3
151.2
191.2
4, 469. 6
1, 174. 0
1, 855. 0
1, 180. 2
146.0
114.4
1,288
440
446
289
51
62
1,104
321
420
281
30
52
5, 078. 1
1, 670. 7
1, 921. 2
1, 151. 3
151.2
183.7
4, 147. 8
1, 139. 0
1, 728. 1
1, 050. 3
116.0
114. 4
No. 9—Little Rock
Arkansas
Louisiana
Mississippi
New Mexico
Texas
__ _
2,312
134
319
217
63
1,579
3,643
61
1,263
208
51
2,060
6, 024. 2
386.7
883. 1
359.3
167.7
4, 227. 4
11,056.8
124.8
4, 525. 9
351. 1
131.0
5, 924. 0
2,204
130
309
213
63
1,489
2,110
52
290
174
51
1,543
5, 885. 6
376.7
864.2
350. 1
167.7
4, 126. 9
5, 672. 8
113.5
838. 3
299. 0
131. 0
4, 291. 0
No. 10—Topeka
Colorado
Kansas
Nebraska
Oklahoma. .
1,214
624
154
107
329
1,317
259
165
625
268
3, 899. 9
1, 985. 8
445.7
397. 1
1, 071. 3
4, 587. 5
808.5
486.4
2, 383. 8
908.8
809
250
149
99
311
697
187
139
103
268
2, 432. 4
686. 5
426.3
410.8
908. 8
1,135
38
172
239
163
500
23
694
22
52
158
117
326
19
3, 996. 1
140.5
506.0
852. 1
587.5
1, 818. 9
91. 1
2, 291. 0
69.7
129.5
599.6
388.9
1, 020. 1
83.2
1,003
34
88
228
155
475
23
642
22
52
148
100
301
19
2, 630. 7
794.3
434.4
380.7
1, 021. 3
3, 619. 9
128.5
245.3
822. 1
579.5
1, 753. 4
91. 1
2, 196. 0
69.7
129.5
566.6
352.9
994. 1
83. 2
4,391
72
4,298
21
4,008
70
3,917
21
14, 566. 1
186.6
14, 266. 4
113. 1
13, 305. 0
272.7
12, 921. 0
111.3
3,691
69
3,601
21
3, 212
70
3,121
21
12, 981. 8
185. 1
12, 683. 6
113. 1
11,381.8
272.7
10, 997. 8
111.3
No. 4—'Winston-Salem
Alabama
District of Columbia
Florida. „
Georgia
Maryland.,
North Carolina
South Carolina,- .
Virginia
No. 5—Cincinnati
Kentucky. _ __
Ohio
Tennessee
No. 8—Des Moines
Iowa
Minnesota
Missouri
North Dakota
South Dakota
No. 11—Portland
Idaho
_
Montana
Oregon .
Utah
Washington
Wyoming
Arizona
California
Nevada
July 1940
_
-
.
_ __
__
__
__
May 1940
May 1939
351
Table 3.—Cost of building the same standard house in representative cities in specific months 1
NOTE.—These figures are subject to correction
[Source: Federal Home Loan Bank Board]
Cubic-foot cost
Federal H o m e Loan B a n k
District a n d city-
N o . 1—Boston:
H a r t f o r d , Conn__
New Haven, Conn.
Portland, M e . . . .
Boston, Mass
Manchester, N . H_ __
Providence, R. I
R u t l a n d , Vt
T o t a l cost
1939
1940
1940
June
1939
June
June
Mar.
Dec.
Sept.
June
1938
June
1937
June
1936
June
$0. 253
.245
. 219
.270
. 225
.253
. 222
$0. 243
.233
.221
. 262
. 226
. 250
. 226
$6, 064
5,868
5,256
6,484
5,390
6,066
5,327
$5, 937
5,850
5, 256
6,490
5,390
6,035
5,321
$5, 903
5,793
5,242
6,428
5,381
6,007
5,272
$5, 836
5,673
5,254
6,336
5,332
5,949
5, 354
$5, 842
5,997
5,294
6,286
5,427
5,996
5,427
$5, 659
5,616
5, 526
6,079
5,392
5, 933
5,676
$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
N o . 4—Winston-Salem:
Birmingham, Ala__ _
Washington, D . C_ _
T a m p a , Fla .*
W. P a l m Beach, Fla
A t l a n t a , Ga_ _
Baltimore, M d
Asheville, N . C
Raleigh, N . C
___
Salisbury, N . C _
Columbia, S. C
Richmond, Va_ _
Roanoke, Va _
.209
.239
.236
.252
. 203
. 198
.207
.209
. 204
. 194
. 201
. 217
. 221
.236
. 232
. 241
. 201
2 . 198
. 203
. 206
. 195
. 199
. 206
.215
5,020
5, 735
5,673
6,050
4,873
4,750
4,979
5,010
4,898
4,660
4,819
5,205
2 5, 200
5,741
2
5, 736
5,824
4,921
2
4, 750
4,998
2
5, 010
4,863
4,730
4,848
5, 199
5, 150
5, 190
5,737
5, 738
5, 579
5,709
5,703
5,740
4,792
4,926
2 4, 810 2 4, 706
5, 115
4, 855
5, 176
4,853
4,881
4,645
4,673
4,721
4,953
4,982
5, 191
5, 155
5,310
5,655
5,576
5,795
4,822
4, 746
4,872
4,952
4,670
4,783
4,936
5, 150
6,068
5, 989
5,608
6, 166
5,207
4, 739
5, 194
5,430
5,378
4,874
5,381
5,945
4, 949
4, 767
4,802
5,071
4,776
5,249
5,056
6,056
5,968
5,716
6,456
5,311
5, 109
5,240
5,627
4, 652
4,873
5,242
5, 135
No. 7—Chicago:
Chicago, 111
Peoria, 111. __ _
Springfield, Ill__
Milwaukee, WTis
Oshkosh, Wis__
.282
.295
.298
. 253
.243
.285
. 273
. 283
. 250
.247
6,773
7, 082
7, 145
6, 073
5, 829
6,787
7,024
7,068
6,063
5,904
.254
. 243
.256
. 255
.266
. 251
. 241
. 244
6,092
5,838
6, 132
6, 117
.
_ _
N o . 10—Topeka:
Denver, Colo__
__
Wichita, K a n s
Omaha, Nebr__
Oklahoma City, Okla
2
6,222
5, 760
6, 156
6,051
6,789
6,909
7,073
6,040
5,804
2
6,221
5, 794
6,079
6, 0C0
2
2
2
2
2
4,713
4, 871
4,823
6,768
6, 639
6, 778
5,943
5,905
6,846
6,556
6,789
5,990
5,921
6,904
6,695
6, 965
5,754
6,040
7,215
6,808
6, 978
5,977
6,079
6, 736
6,227
6, 502
5, 154
5,576
6,276
6, 005
5,942
5,893
6,376
6,021
5,778
5,860
6,464
5,866
5,814
5,840
6, 714
5,711
5,964
5,823
5, 997
5, 164
5,565
5,427
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; three bedrooms and bath on second floor. Exterior is wide-board siding with brick and stucco
as features of design. Best quality materials and workmanship are used throughout.
The house is not completed ready for occupancy. It includes all fundamental structural elements, an attached 1-ear garage,
an unfinished cellar, an unfinished attic, a fireplace, essential heating, plumbing, and electric wiring equipment, and complete
insulation. It does not include wall-paper nor other wall nor ceiling finish on interior plastered surface, lighting fixtures, refrigerators, water heaters, ranges, screens, weather stripping, nor window shades.
Reported costs include, in addition to material and labor costs, compensation insurance, and allowance for contractor's
overhead and transportation of materials, plus 10 percent for builder's proSt.
Reported costs do not include the cost of land nor of surveying the land, the cost of planting the lot, nor of providing walks
and driveways; they do not include architect's fee, cost of building permit, financing charges, nor sales costs.
In figuring costs, current prices on the same building materials list are obtained every three months from the same dealers,
and current wage rates are obtained from the same reputable contractors and operative builders.
2
Revised.
352
Federal Home Loan Bank Review
Table 4. -Estimated volume of new mortgage-lending activity of savings and loan associations
classified by District and class of association
[Amounts are shown in thousands of dollars]
New loans
Percent
Percent
change,
New loans, change,
Apr. 1940 M a y 1939 M a y 1939
to M a y
to M a y
M a y 1940 April 1940
1940
1940
Federal H o m e Loan B a n k Dist r i c t a n d class of association
United
$114,
49,
45,
19,
States: T o t a l
Federal
State member
Nonmember
542
287
803
452
$108,
46,
43,
18,
C u m u l a t i v e new loans
(five months)
1940
1939
001
577
015
409
4-6.1
+ 5.8
+ 6.5
+ 5.7
$89,
36,
35,
17,
123
358
426
339
+
+
+
+
28.5
35.6
29.3
12.2
$451,
191,
179,
79,
377
899
980
498
$359,802
142, 761
145, 374
71, 667
Percent
change
+
+
+
+
25. 5
34.4
23.8
10.9
District No. 1: T o t a l __
Federal _
_ _|
S t a t e member
Nonmember
10, 966
3,906
5, 604
1, 456
8,474
2,812
3,882
1,780
+ 29.4
+38.9
+ 44. 4
-18.2
7,
2,
3,
1,
794
594
352
848
+ 40.7
+ 50.6
+ 67.2
-21. 2
37,
13,
17,
6,
520
065
916
539
28, 774
8,712
13, 457
6,605
+ 30. 4
+ 50.0
+ 33. 1
-1.0
District No.
10,
3,
2,
4,
332
153
733
446
8,668
2,913
2, 595
3, 160
+ 19.2
+ 8.2
+ 5.3
+ 40. 7
8,
3,
1,
3,
174
135
851
188
+ 26. 4
+ 0.6 !
+ 47. 6 i
+ 39. 5 1
38, 164
12, 130
10,669
15,365
33, 303
11, 958
7,849
13, 496
+ 14.6
+ 1.4
+ 35.9
+ 13.8
9,
3,
2,
3,
010 |
663
265
082
8,047 1
2, 674
2, 323
3, 050
+12.0
+ 37. 0
-2.5
+ 1.0 j
7, 692
1,911
2, 202
3, 579 1
+ 17.1 1
+ 91. 7
+ 2.9
-13.9 I
35,962
13, 050
9, 045
13,867
30, 418
7,039
8,301
15, 078
+ 18.2
+ 85. 4
+ 9.0
-8.0
058 1
802
613
643
+46. 3 |
+ 73. 3 |
+ 15.7 I
+ 71. 5
66,758
31, 196
25,883
9, 679
48, 902
19, 054
21, 773
8,075
+
+
+
+
36. 5
63. 7
18.9
19.9
4 ,
5
5
1
73,977
27, 571
35, 978
10, 428
57,
22,
27,
7,
532
882
489
161
+
+
+
+
28.6
20.5
30.9
45.6
32.3
29.6
34.9
32.5
2: T o t a l .
FederaL
S t a t e member
Nonmember
District No. 3: Total___
_ __
Federal _ _
State member
Nonmember
District No.
4: Total __
Federal
State member
Nonmember
17,
8,
6,
2,
636 1
323
496
817
15, 134 i
6, 923 1
5, 985
2, 226
District No.
5: T o t a l . _
Federal
State member
Nonmember
18,
7,
9,
2,
994
055
409
530
18, 192
6, 976
8,711
2, 505
5, 782
2, 713
2, 701
368
1
+16.5
+20. 2
+ 8.5
+ 26. 5
+4.4
12,
4,
5,
1,
+ 1.1
+ 8.0
+ 1.0
13, 531 i
5, 665
6, 556
1,310
5, 407
2, 476
2, 525
406
+ 6.9
+ 9.6
+ 7.0
-9.4
4, 243
1, 918
1, 970
355
+ 36. 3
+ 41. 4
+ 37. 1
+ 3.7
22, 632
10, 438
10, 676
1,518
17, 111
8,052
7,913
1,146
+
+
+
+
11, 841
5, 246
4, 784
1,811
-4. 1
-12.9
+ 10.3
-16.7
9,
2,
3,
2,
304
957
772
575
+ 22. 1
+ 54.5
+ 40.0
-41.4
47, 329
18, 619
20, 448
8,262
35, 207
11,696
15, 176
8,335
+ 34. 4
+ 59.2
+ 34.7
-0.9
048
679
926
443
7,768
3,297
2,854
1,617
-9.3
+ 11.6
-32.5
-10.8
5,
2,
1,
1,
894
975
626
293
+19. 6
+ 23.7
+ 18. 5
+ 11.6
27, 609
12, 751
8,679
6, 179
21, 239 1 -4-30. 0
9,956
+ 28. 1
6, 591
+ 31.7
4,692
+ 31.7
5, 744
2, 236
3, 284
224
5,711
2,413
3,070
228
+ 0.6
-7.3
+ 7.0
-1.8
5, 450
2, 153
3, 030
267
+ 5. 4
+ 3.9
+ 8. 4
-16. 1
24, 812
10, 107
13, 667
1,038
23. 807
10, 162
12, 553
1,092
+ 4. 2
-0.5
+ 8.9
-4.9
District No. 10: T o t a l . .
. _
Federal. _
i
State m e m b e r . __
Nonmember
4, 815
2,568
1, 118
1, 129
5,035
2,764
1,120
1,151
-4.4
-7. 1
-0.2
-1.9
4,555
2,463
1,091
1,001
+ 5.7
+ 4.3
+ 2.5
+ 12.8
20, 607
11, 022
4,690
4,895
18, 352
9,110
4,800
4,442
+ 12. 3
+ 21.0
-2.3
+ 10.2
District No. 11: Total
Federal. _ _
State member
Nonmember
4, 199
2,551
1,489
159
4, 154
2,523
1,409
222
+ 1.1
+ 1.1
+ 5.7
-28.4
3,234
2,210
936
88
+
+
+
+
16, 805
10, 373
5,725
707 |
12, 499
7, 800
4, 168
531 j
+ 34. 5
+ 33.0
+37.4
+33. 1
District No. 12: Total
...
Federal
State member
Nonmember
8,658
4,870
3, 499
289
9,570
5,560
3, 757
253 1
-9.5
-12.4
-6.9
+ 14.2
7,194
3, 575
3, 427 1
192
+ 20.4
+ 36.2
+ 2.1
+ 50. 5
39, 202
21, 577
16, 604
1,021
32,658
16,340
15, 304
1, 014
+ 20. 0
+ 32.1
+8.5
+0.7
District No.
6: T o t a l . _ .
Federal
State member
Nonmember
District N o .
7: T o t a l .
Federal. _
State member
Nonmember
District No.
8: T o t a l . _ .
_
Federal.
S t a t e member
Nonmember
District No.
9: T o t a l
F e d e r a l . __
S t a t e member
Nonmember
July 1940
11,
4,
5,
1,
_
7,
3,
1,
1,
j
358
570
279
509 1
+40.
+ 24.
+ 43.
+ 93.
29.8
15.4
59. 1
80.7
353
Table 5.—Estimated volume of new loans by all savings and loan associations, classified according to
purpose and class of association
[Thousands of dollars]
1
Purpose of loans
Class of association
Mortgage loans on homes
Period
Construc- Home pur- Refinanction
chase
ing
Reconditioning
Loans for
all other
purposes
Total
loans
Federals
State
members
Nonmembers
1938.
$220, 458
$265, 485
$160, 167
$58, 623
$93, 263
$797, 996
$286, 899
$333, 470
$177, 627
Jan.-May...
May
77, 999
19, 400
101, 686
24, 123
68, 071
15, 281
23, 123
5,416
39, 120
8,059
309, 999
72, 279
108, 485
24, 721
132, 221
31, 196
69, 293
16, 362
1939_
301, 039
339, 629
182, 025
59, 463
104, 227
986, 383
400, 337
396, 041
190, 005
Jan.-May__
May
June
July
August
September..
October
November. _
December. _.
126, 761
26, 646
29, 919
26, 865
29, 863
27, 854
29, 255
26, 607
26, 923
148, 706
31, 289
32, 228
29, 638
32, 282
31, 367
33, 383
30, 434
27, 779
81, 904
15, 687
17, 123
15, 353
17, 005
16, 021
15, 835
15, 445
15, 001
23, 715
6,069
5,802
5,133
5,909
5,544
5,784
4,720
4,335
44, 872
9,432
9,082
8,183
9,979
8,946
9,040
8,870
9,074
425,
89,
94,
85,
95,
89,
93,
86,
83,
958
123
154
172
038
732
297
076
112
178,
36,
39,
34,
40,
37,
37,
34,
34,
970
358
094
055
645
090
854
785
053
169,
35,
36,
34,
37,
36,
37,
34,
33,
603
426
465
146
340
989
847
671
209
77,
17,
18,
16,
17,
15,
17,
16,
15,
137,
19,
20,
26,
33,
36,
159,
22,
25,
32,
37,
42,
84,
13,
14,
16,
20,
18,
24, 542
3,455
3,437
4,657
6,097
6,896
46, 047
7,963
7,954
10, 063
9,460
10, 607
451,
66,
71,
90,
108,
114,
377
944
522
368
001
542
191,
28,
29,
38,
46,
49,
899
008
786
241
577
287
179,
25,
28,
36,
43,
45,
980
737
941
484
015
803
79, 498
13, 199
12, 795
15, 643
18,409
19, 452
385
339
595
971
053
653
596
620
850
1940
Jan.-May...
January
February
March
April
May
1
071
488
152
711
764
956
466
039
389
168
821
049
251
999
590
769
859
034
Revised figures for 1936, 1937, and for the first 10 months of 1938 appear on p. 93 of the December 1938 issue.
Table 6.—Index of wholesale price of building materials in the United States
[1926=100]
[Source: U. S. Department of Labor]
Period
1938: May
1939: May
June
July
August
September
October
November
December
1940* January
February
March
April
May
Change:
May 1940-Apr. 1940. __
May 1940-May 1939. __
All building mate- Brick and
rials
tile
Cement ]
Lumber
Paint and Plumbing
paint ma- and heat- Structural
steel
ing
terials
Other
90.4
89.5
89.5
89.7
89.6
90.9
92.8
93.0
93.0
90. 5
91.7
91. 1
90.6
90.5
91.0
91.5
91.6
91.6
90. 1
91. 5
91. 5
91.5
91.3
91.3
91.3
91.3
91.3
89.3
91.2
90.7
91.8
91.8
93.7
98.0
98.3
97.8
80.9
81. 6
82.4
82.2
82. 1
84.7
85.7
84.9
85.5
77. 2
79.3
79.3
79.3
79.3
79.3
79.3
79.3
79.3
114. 9
107.3
107.3
107.3
107.3
107.3
107.3
107.3
107.3
94. 1
89.6
89. 5
89.6
89.5
90.3
91.9
92.9
92.7
93.4
93.2
93.3
92.5
92.5
91.6
91.2
90.4
90.2
90.2
91.4
91.4
91.2
90.3
90.5
97.6
97.6
97.8
96. 1
96.6
87.2
86.8
87.2
86.7
86.0
79.3
79.1
81.0
80.9
80.6
107.3
107.3
107.3
107.3
107.3
93.2
92.9
92.7
92.3
92.2
0.0%
+ 3.4%
0.0%
-1.6%
+ 0. 2 %
-1.1%
4-0. 5 %
+ 5.9%
- 0 . 8%
+ 5.4%
-0.4%
+ 1.6%
0.0%
0.0%
-0.1%
+ 2. 9%
1
Based on delivered prices at 48 cities and introduced into the calculation of the Bureau's general indexes of wholesale
prices beginning with March 1939.
354
Federal Home Loan Bank Review
Table 7.—Progress of institutions insured by the Federal Savings and Loan Insurance Corporation
[Amounts are shown in t h o u s a n d s of dollars]
NumPeriod a n d class ber of
of association associations
N e t first
mortgages
held
Total
assets
Private
repurchasable
capital
Government
investment
Federal
Home
Loan
Bank
advances
Operations
N u m b e r of
investors
New
investments
Repurchases
ALL INSURED
1938
June
December
2 , 0 1 5 $1, 978, 476 $1, 472, 896 $1, 315, 936 $258, 403 $143, 004
2 , 0 9 7 2, 128, 706 1, 605, 511 1, 452, 692 260, 904 149, 977
1939
May
June
July
August
September,
October
November..
December..
2, 138
2, 170
2, 170
2, 177
2, 180
2,188
2, 189
2, 195
2,
2,
2,
2,
2,
2,
2,
2,
258,
339,
341,
370,
399,
431,
459,
506,
1940
January
February...
March
April
May
2,205
2,211
2,216
2,225
2,231
2,
2,
2,
2,
2,
513,
543,
576,
615,
653,
1938
June
December
1,336
1,360
1, 208, 357
1,311,080
938, 455
1, 028, 891
1939
May
June
July
August
September.
October
November..
December..
1,380
1,383
1,382
1,384
1, 386
1,389
1,390
1,397
1,
1,
1,
1,
1,
1,
1,
1,
403,
441,
442,
471,
484,
512,
535,
574,
931
058
667
714
212
924
895
314
1,
1,
1,
1,
1,
1,
1,
1,
1940
January
February....
March
April 1
May2
1,400
1, 403
1,408
1,411
1,415
1,
1,
1,
1,
1,
574,
597,
623,
655,
685,
268
279, 803
550
296, 198
767 1, 317, 641
179 1, 346, 608
324 1, 375, 683
086
411
735
200
847
801
038
944
765
417
885
190
685
1, 728,
1, 769,
1, 795,
1, 832,
1, 869,
1, 898,
1, 921,
1, 943,
049
112
313
587
838
025
717
852
1, 959, 678
1, 980, 887
2,011,281
2, 050, 052
2, 089, 761
1, 599,
1, 657,
1, 689,
1, 709,
1, 725,
1, 747,
1, 769,
1,811,
1,
1,
1,
1,
1,
539
859
462
642
529
770
033
181
868,
901,
928,
958,
981,
736
162
835
417
445
1, 832, 800 $27, 300 $13, 000
2, 035, 700 35, 900 13, 700
2,
2,
2,
2,
2,
2,
2,
2,
197,
236,
261,
282,
307,
340,
351,
386,
900
000
900
900
200
200
300
000
36,
40,
74,
44,
36,
41,
40,
48,
258,
260,
257,
250,
250,
250,
250,
250,
331
451
075
445
570
705
675
725
113,208
127, 062
121, 031
120, 878
124, 811
129, 881
129, 289
142, 729
238,
236,
236,
236,
236,
496
854
714
508
553
121, 271 2, 461, 000 102,
111,277 2, 504, 000 55,
104, 993 2, 528, 200 51,
101, 569 2, 546, 800 55,
104, 546 2, 560, 900 46,
700
700
300
900
800
200
000
400
18,
15,
52,
27,
29,
24,
19,
17,
800
800
200
200
000
200
537
445
571
332
377
809
655
57,
28,
27,
28,
27,
096
042
195
123
150
FEDERAL
115,854
135, 511
156, 700
185, 800
205, 900
231, 000
249, 900
268, 872
6,200
6,700
218, 567
219, 673
101, 318
106,411
1, 027, 100
1, 162, 700
18, 100
23, 800
964, 528
990, 248
1, 013, 503
1, 033, 325
1, 041, 188
1, 059, 869
1, 077, 918
1, 108, 481
216,
217,
214,
208,
208,
208,
208,
208,
561
026
186
499
524
524
597
777
77,
88,
82,
84,
88,
93,
93,
105,
521
298
146
480
151
096
654
870
1, 284, 200
1, 299, 100
316, 900
336, 500
1, 351, 200
1, 373, 300
1, 384, 800
1, 412, 200
24,
27,
49,
30,
24,
28,
27,
32,
800
000
100
200
700
200
300
000
10, 400
8,100
31, 500
16, 300
17, 200
14, 600
10, 970
9,231
1,
1,
1,
1,
1,
197,
196,
196,
196,
196,
751
701
619
813
933
87,
79,
74,
71,
74,
592
391
495
577
428
1, 462, 700
1,496,100
1, 515, 000
1, 529, 500
1, 538, 000
71,
36,
35,
39,
31,
367
951
500
329
915
37,
15,
16,
16,
16,
760, 953
857, 737
149,
175,
197,
222,
239,
410
480
882
025
973
689
942
200
679
124
STATE
1938
June
December..
1939
May
June
July
August
September.
October
November..
December..
679
737
770, 119
817, 626
534, 441
576, 620
554, 983
594, 955
39, 836
41, 231
41, 686
43, 566
805, 700
873, 000
9,200
12, 100
6,800
7,000
758
787
788
793
794
799
799
798
854,
898,
899,
898,
915;
918,
923,
932,
612,
633,
638,
646,
663,
667,
671,
674,
195
601
613
787
938
025
817
980
635,011
667,611
675, 959
676, 317
684, 341
687, 901
691, 115
702, 700
41,
43,
42,
41,
42,
42,
42,
41,
770
425
889
946
046
181
078
948
35,
38,
38,
36,
36,
36,
35,
36,
687
764
885
398
660
785
635
859
913,
936,
945,
946,
956,
966,
966,
973,
700
900
000
400
000
900
500
800
11,900
13, 700
25, 200
14, 700
12, 100
13, 000
12, 700
16, 400
8,400
7,700
20, 700
10, 900
11, 800.
9,600
8,567
8,214
1940
January
February...
March
April
May
805
808
808
814
816
939, 497
945, 867
953, 118
960,011
968, 361
679,
684,
693,
703,
714,
875
689
640
444
078
719,
725,
730,
736,
741,
40,
40,
40,
39,
39,
745
153
095
695
620
33,
31,
30,
29,
30,
679
886
498
992
118
998,
007,
013,
017,
022,
300
900
200
300
900
31,
18,
15,
16,
14,
19, 407
12, 100
10, 995
11, 444
11,026
1
2
155
353
068
486
635
877
143
630
326
682
953
392
472
1,
1,
1,
1,
204
381
877
480
740
In addition, 7 Federals with assets of $2,042,000 h a d been approved for conversion b u t h a d not been insured as of April 30.
I n addition, 5 Federals with assets of $1,386,000 h a d been approved for conversion b u t h a d not been insured as of M a y 3 1 .
July 1940
355
Table
operations of the Federal
8.—Lending
Table 9.—Government investments in savings and
loan associations *
[Amounts are shown in thousands of dollars]
Home Loan Banks
[Thousands of dollars]
M a y 1940
Federal H o m e
Loan B a n k
BostonNew York
Pittsburgh.
Winston-Salem
Cincinnati
Indianapolis
ChieagoDes Moines
Little Rock _
Topeka
Portland- _
Los Angeles
Total
Advances
outstandRepay- 1 ing,
RepayAdAdvances m e n t s yances m e n t s M a y 31,
1940
$377
381
773
2,362
611
344
2, 198
569
79
221
378
1,591
$448
1,229
720
768
420
185
549
566
595
246
191
269
$247
639
477
597
352
220
604
199
120
237
539
742
$379
1,376
617
1,093
862
918
602
1, 199
874
263
233
389
$4,634
17,016
13,742
13,233
13,587
8, 216
23, 045
11,684
5, 776
8, 425
4, 797
13,354
9,884
6, 186
4,973
8, 805
137, 509
J a n . - M a y 1940 _ 25, 630 69, 434
M a y 1939_
5,572
6,307
J a n . - M a y 1939
19, 043 59, 974
M a y 1938
4,791
7,551
J a n . - M a y 1938 _ 26, 334 39, 919
Table
157, 911
186, 510
70.—Summary of operations of
HOLC
T y p e of operation
FederFederals
als 2
Oct. 1 9 3 5 - M a y 1940:
Applications:
Number. _
Amount. _ _
Investments:
Number- _
AmountRepurchases _ _
N e t o u t s t a n d i n g investments _ _
2
$34, 137 $162, 796 $39. 868 $202, 664
0
0
0
0
7
$763
7
$763
0
0
0
2
$20
0
1
$25
$9
3
$45
$9
Table 17.—Properties acquired by H O L C through
Period
M a y 1,
1940
through
M a y 31,
1940
Cumulative
through
May 31, 1940
1, 198,188
5,321
1, 203, 509
Contracts a w a r d e d :
4,484
Number.
792,196
796, 680
Amount. _
$156,750,783 $1,359,547 $158, 110,330
C o n t r a c t s completed:
Number
Amount
4, 918
719
1,831
4, 199
$49, 300 $175, 955 $44, 273 $220, 228
$15, 163 $13, 159 $4, 405 $17, 564
foreclosure and voluntary deed
J u n e 1, 1934
through
Apr. 30,
1940
4,442
787,283
791, 725
$154,646,811 $1,229,142 $155, 875, 953
Prior to 1935
1935: Jan 1 through
1936: Jan. 1 through
1937: Jan. 1 through
1938: Jan. 1 through
1939: Jan. 1 through
July
August
September
October
November.
December..
January-_..
1940:
February _
March
April
May
Dec. 31 _
Dec. 31 _
Dec. 31 _
Dec. 31 _
June 30 _
All figures are subject to adjustment. Figures include
52,269 reconditioning cases 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.
356
1
Number
9
1,097
20, 324
50, 206
50, 919
19, 509
2,773
2,857
2,590
2,445
2,356
800
567
311
657
323
1,466
Grand total to May 31, 1940.
1
Total
1
Refers to number of separate investments, not to number
of 2associations in which investments are made.
Investments in Federals by the Treasury were made
between December 1933 and November 1935.
May 31,194c1
Cases received
State
members
1,862
5,586
970
4,616
$50, 401 $201, 192 $63, 282 $264, 474
M a y 1940:
Applications:
Number.
Amount
Investments:
Number _
Amount
Repurchases
Reconditioning Division through
T y p e of operation
H o m e Owners' Loan
Corporation
Treasury
April 1940
164, 209
1
Does not include 8,587 properties bought in by HOLC at
foreclosure sale but awaiting expiration of the redemption
period before title in absolute fee can be obtained.
In addition to the 164,209 completed cases, 960 properties
were sold at foreclosure sale to parties other than the HOLC
and 25,557 cases have been withdrawn due to payment of
delinquencies by borrowers after foreclosure proceedings
were authorized.
Federal Home Loan Bank Review
Table 12. -Summary of estimated nonfarm mortgage recordings,1 $20,000 and under, during
May 1940
(Am o u n t s
F e d e r a l Home L o a n B a n k
D x s t r i c t and
State
Savings & loan
associations
Number
No.
No.
No.
No.
No.
No.
Number
dolla rs)
Amount Numbe r
Amount
Other
mortgagees
Number
Total
Amount d u m b e r
Amount
3,637
2,297
7,284
1,906
4,275
1,203
3,509
10,905
33,111
314
375
2,867
260
260
160
1,107
735
8,889
783
936
481
58
19
173
15
15
9
338
67
863
75
86
46
327
170
326
43
82
26
1,320
437
1,334
153
299
94
500
270
1,184
119
151
73
1,849
424
3,905
360
525
221
461
182
952
96
156
59
1, 151
371
2,089
207
330
127
335
81
606
57
89
35
1,287
129
1,589
147
267
90
1,995
1,097
6,108
590
753
362
7,052
2,163
18,669
1,725
2,443
1,059
2—New York
2,646
8^765
364
2,200
2,100
8,451
1,239
6,061
3,039
7,354
1,956
8,033 11,344
40,864
New York
1,022
1,624
3,431
5,334
225
139
1,164
1,036
1,215
885
4,822
3,629
48
1,191
236
5,825
1,210
1,829
2,740
4,614
812
1,144
2,920
5,113
4,532
6,812
15,313 j
25,551
3,193
8,079
305
1,658
2,508
7,998
167
672
2,071
4,320
1,215
4,295
9,459
27,022
73
2,595
525
217
6,923
939
18
233
54
108
1,259
291
72
1,798
638
345
6,077
1,576
42
117
8
135
534
3
80
1,554
437
220
3,425
675
67
982
166
180
3,772
343
352
7,279
1,828
1,205
21,990 l
3,827
7,609
17,585
932
4,554
2,891
7,490
45
181
4,769
8,343
2,766
243
568
839
971
1,314
1,978
518
1,178
341
2,641
2,656
1,432
3,146
3,815
932
2,622
103
56
294
166
40
131
50
92
412
376
1,288
781
235
647
332
483
168
113
362
557
306
514
288
583
404
638
1,023
1,183
938
1,109
425
1,770
504
299
822
556
444
762
600
782
639
819
1,913
771
853
1,053
806
1,489
333
279
522
187
232
529
211
473
7,674
21,155
615
3,193
3,196
9,667
Ohio
1,101
6,274
299
2,359
18,266
530
139
344
132
622
2,072
499
467
2,205
524
1,007
7,360
1,300
6 ~ l n d i a n a p o l is
3,478
7,009
633
2,991
3,340
2,325
1,153
4,146
2,863
226
407
988
2,003
1,187
2,153
7—Chicaqo
4,204
11,754
411
2,068
111inois
3,120
1,084
8,995
2,759
320
91
1,657
411
8—Des Moines
3,765
8,436
552
2,536
Iowa
Minnesota
Mi s s o u r i
North Dakota
South Dakota
986
1,437
1,065
161
116
2,088
3,626
2,201
364
157
125
241
109
17
60
588
1,079
650
55
164
9 — L i t t l e Rock
3,314
7,622
739
Arkansas
Mississippi
New Mexico
331
921
182
158
1,722
614
2,545
303
321
3,839
29
37
42
2
629
10--Topeka
2,968
6,123
400
824
716
1,028
---
4—Winston-Salem
__
5—Cincinnati
__.
__
-
Amount
per
capita
(nonfarm)
4,111 $15,394 30,704 $58,372 17,219 $54,981 135,582 $372,471
974
Colorado
Kansas
Nebraska
Oklahoma
No.
Amount
o
Indivj duals
1,475
North C a r o l i n a
South C a r o l i n a
Virginia
No.
Number
thousands
289
D i s t r i c t of Columbia
Florida
Georg a
No.
Amount
5,887 $29,075 28,495 $91,164
in
Mut u a l
savings banks
12,931
Delaware
No.
Number
are
4,236
I—Boston
Maine
Massachusetts
New Hampshire
No.
Amount
49,166 $123,485
UNITED STATES
shown
Bank s a n d
t r u s t co m p a n i e s
Insurance
companies
6,412 19,012
774
1,076
1,312
533
516
934
240
1,027
1,351
1,315
2,839
2,437
2,381
3,914
1,667
3,108
2,570
5,550
8,192
4,700
5,869
7,558
2,735
7,391 !
181
93
385
2,118
3,375
1,768
4,852 15,464
42,627
93
385
245
1,546
327
247
2,754
374
91
964
713
296 2,043
3,001 11,426
1,555
1,995
4,531
33,838
4,258
8,746
26
68
1,176
1,996
843~
2,874
9,496
23,684
2,945
5,801
26
68
399
777
562
1,434
316
527
855
2,019
4,479
5,017
9,564
14,120
1,693
6,124
8
13
1,666
3,467
1,273
5,972
9,255 ~ 29,3981
1,000
693
3,914
2,210
8
13
724
942
1,801
1,666
1,036
237
5,175
797
6,200
3,055
21,542
7,856
2,215
5,40?
41
132
3,057
5,564
1,718
4,922 11,348
26,998
664
592
747
71
141
1,782
1,114
2,132
133
247
481
833
1,596
60
87
783
1,783
2,806
66
126
240
351
1,083
36
8
564
1,023
3,218
99
18
2,496
3,495
4,600
345
412
5,805
8,757
11,007
717
712
3,308
861
2, 164
2,208
3,898
1,814
5,492
8,936
22,484
93
180
160
7
2,868
163
97
105
54
442
347
169
238
190
1,220
197
360
222
127
1,302
184
697
261
237
2,519
90
440
134
53
1,097
344
1,273
354
79
3,442
810
1,855
685
394
5,192
«,582
4,864
1,316
834
13,888 1
262
1,234
927
2,197
1,793
2,606
839
2,342
6,789
14,502
963
1,418
1,569
2,173
31
65
99
67
144
244
457
389
124
341
89
373
304
734
207
952
675
270
268
580
1,070
382
387
767
243
145
125
326
811
376
350
805
1,473
1,645
1,297
2,374
1,472
3,911
1,376
1,867
798
2,536
6,292
226
120
515
98
333
84
236
215
684
140
431
161
97
12
279
47
337
26
240
13
938
76
1,205
64
650
341
1,529
733
2,769
270
132
3,292
3,154
2,970 1
5,086
11—Portland
2,153
4,879
298
959
Idaho
Montana
Oregon
Utah
Washington
145
146
472
235
1,065
90
292
405
1,06*
707
2,151
256
18
25
76
71
108
40
87
252
197
383
l 2 ~ L o s Anqeles
3,926
9,147
487
2,899
6,318
25,371
5,525
l l , 3 0 7 ~ 1,0267
3,742 I77282~
52,466
Arizona.
California
86
3,821
19
208
8,893
46
7
478
2
17
2,878
4
146
6,140
32
591
24,649
131
269
5,196
60
619
10,550
138
125
557
3,589 16,601
28
124
50,559]
347
164
38
156
282
762
70j
523
119
333
805
1,963
168
195
598
31
95
164
503
49
966
II
4.64
3.45
4.52
4.29
3.64
4.29
3.92
2.15
6.28
2.51
2.99
44,565
45
41
$ 4.03
1.97
11.41
6.89
3 15
4 21
4 81
3 33
5.02
3. 15
6.01
3.04
3.94
3.48
3.25
3.82
3.89
5.25
4.38
2.53
2.35
2.15
3.83
2.03
3.15
4.00
4.37
2.69
3.75
3.71
14,750
1,331 1
839
3,370 !
1,925
6,636
649
1,560 J
5. 19
2.52
4.62
4.91
5.27
4.26
4.63
10.00
4.65_
1
Based upon county reports submitted through the cooperation of savings and loan associations, the U. S. Savings and Loan League, the Mortgage
Bankers Association, and the American Title Association.
July 1940
357
Table 13,—Estimated volume of nonfarm mortgages recorded, by type of mortgagee
[Amounts are shown in thousands of dollars]
Savings and
loan associations
Insurance
companies
Banks and
trust
companies
Mutual
savings
banks
Individuals
Other
mortgagees
All
mortgagees
Period
Total
Percent
Number:
1939: M a y 1
June
July
August.
September. _
October . . .
November. _
December.
__
1940: January 1___
February *_March
April. _ _
May
39, 406
43, 655
41, 048
44, 224
41, 946
42, 091
38, 671
38, 018
30, 005
31,015
38, 734
44, 188
49, 166
32.5
34. 1
34.6
35.3
35.6
34.6
33.3
33.6
31.3
32.8
34.7
35.4
36.3
4,799
6,335
5,946
6,014
5, 3£2
5,636
5,443
5,694
4,392
4,240
4,631
5,484
5,887
Amount:
1939: May 1
June
July
August
September. .
October
November. .
December.
_,
1940: January x
February ^
March.
April
May
.
96, 156
113, 479
105, 890
112, 516
104, 548
105, 229
98, 889
95, 724
74, 711
76, 944
96, 244
110,787
123, 485
29.2
31.5
32. 1
32.6
33.0
31.6
30.4
30.2
28.4
30.1
32.0
32.5
33. 1
23, 886
30, 017
29, 777
30, 796
28, 086
28, 503
28, 286
28, 990
21, 989
21, 350
23, 084
27, 091
29, 075
1
Total
Percent
Total
Percent
4.2
4.9
5.0
4.8
4.5
4.6
4.7
5.0
4.6
4.5
4.2
4.4
4.3
24, 523
26, 779
22, 860
24, 750
23, 627
25, 589
24, 594
24, 433
21,061
20, 110
24, 288
26, 711
28, 495
22.0
20.9
19.3
19.7
20.0
21.0
21.2
21.6
22.0
21.2
21.7
21.4
21.0
3,311
3,524
3,909
3,908
3,924
3,718
3,994
3,692
2,675
2,548
2,823
3,465
4, 111
8.0
8.3
9.0
8.9
8.9
8.6
8.7
9.2
8.4
8.4
7.7
8.0
7.8
79, 018
89, 563
74, 960
80, 049
74, 577
84, 678
80, 484
80, 971
66, 342
62, 065
75, 650
82, 569
91, 164
25.9
24.8
22.7
23.2
23.5
25.4
24.7
25.6
25.3
24.3
25.2
24.3
24. 5
12, 261
12, 048
13, 679
13, 844
13, 470
12, 966
14, 571
13, 550
10, 520
9,485
10, 543
13, 122
15, 394
Total
Total
Percent
Total
Percent
Combined
total
Percent
2.7
2.8
3.3
3. 1
3.3
3.0
3.5
3.2
2.8
2.7
2.5
2.8
3.0
27, 594
30, 710
30, 209
31, 174
29, 055
29, 577
27, 955
27, 034
24, 884
24, 193
27, 658
29, 532
30, 704
25.9
24.0
25.4
24.9
24.7
24.3
24. 1
23.9
25.9
25.6
24.7
23.7
22.7
15, 033
17, 002
14, 693
15, 339
14, 009
15, 195
15, 336
14, 370
12, 844
12, 548
13, 655
15, 341
17, 219
12.7
13.3
12.4
12.2
11.9
12.5
13.2
12.7
13.4
13.2
12.2
12. 3
12.7
114, 666
128, 005
118,665
125, 409
117,913
121, 806
115,993
113, 241
95, 861
94, 654
111, 789
124, 721
135, 582
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
3.6
3.3
4.2
4.0
4.2
3.9
4.5
4.3
4.0
3.7
3.5
3.9
4. 1
51, 719
58, 967
58, 056
58, 826
53, 018
53, 909
52, 183
49, 677
48, 026
45, 333
51, 596
56, 561
58, 372
17.9
16.4
17.6
17.0
16.7
16.2
16. 1
15.7
18.3
17.7
17.2
16.6
15.7
49, 536
56, 794
47, 621
49, 549
43, 457
47, 794
50, 699
47, 629
41, 095
40, 451
43, 303
50, 203
54, 981
15.4
15.7
14.4
14.3
13.7
14.3
15.6
15.0
15.6
15.8
14.4
14.7
14.8
312,576
360, 868
329, 983
345, 580
317, 156
333, 079
325, 112
316, 541
262, 683
255, 628
300, 420
340, 333
372, 471
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Percent
Revised.
Insurance and Stability
(Continued from p. 829)
ance Corporation involved a small association in
Trenton, Ohio. During April, the Superintendent
of Building and Loan Associations in the State of
Ohio closed the Trenton Building and Loan Association and took possession of its assets for liquidation. This institution, with assets of $34,782, had
sustained a substantial defalcation of almost $8,500.
On M a y 15-17, the Insurance Corporation made
available to the investors of this institution the
optional payment methods.
Again, all investors chose new accounts, this time
in an insured association located but a few miles
from Trenton, and these accounts were also withdrawable immediately if desired. Approximately
99.5 per cent of the total share investment has been
paid.
358
Comments of investors during the pay-off proceedings reflected a unanimous appreciation of the
value of insurance of accounts and also their satisfaction with the settlement provided. Indications that
most of these individuals intend to leave their newlyissued accounts undisturbed is borne out by the
fact that only 17.5 percent of the new shares issued
to replace those of the Guymon association has
since been repurchased. Within two weeks following the Trenton pay-off, less than 3 percent of the
shares issued to members of the Trenton Building
and Loan Association had been repurchased.
T H E FINANCIAL STATUS OF THE CORPORATION
The capital resources which have been accumulated to offset the potential liability of the Insurance
Corporation because of the risks contingent upon
savings and loan operations now total over $124,000,000 as is evident from the consolidated balance
Federal Home Loan Bank Review
sheet shown on page 327. Inasmuch as the major
portion of all surplus funds are invested in Government and Government-guaranteed bonds, insured
associations benefit from the added safeguard that
the Corporation investments are in a completely
different risk classification from those in which savings and loan associations operate. Surplus and
reserves built up during the six years now total more
than $23,000,000.
On June 30, 1940, there were 2,235 insured institutions with total assets of more than $2,600,000,000.
There were more than 2,600,000 persons whose
savings were protected up to $5,000. Total insured
share liability, consisting of all private capital up to
$5,000 per insured investor, plus total creditor obligations of all insured associations, amounted to
$2,000,000,000.
Waverly
(Continued from p. 838)
Play area provision, however, is wholly inadequate
for Waverly's needs. Waverly's streets are often
too narrow, jog here and dead-end there, angle and
turn, run for a block and are forever lost, or die at
one point to begin farther on. General street widths
are far from uniform, blocks are irregularly shaped
and considerable areas are without adequate access
to streets. Although the streets are adequately
paved and reasonably well maintained, many alleys
fall far below permissible urban standards, some
being little more than rough footpaths. These
deficiencies make traffic circulation unsatisfactory
and parking a problem. There is already ample
provision, however, for utilities, educational facilities,
and transportation.
PREPARATION OF A M A S T E R PLAN
Such was the picture of Waverly that emerged
from the analysis of the field survey. For the preparation of the broad Master Plan—the proposal for
an effective neighborhood program to halt these
declining trends—minute technical analysis was
essential, of which only the broad outlines have
been indicated. 1 A successful Master Plan demanded exploration of the sources of financing
through which home owners who required assistance
1
This article is based upon "Waverly—A Study in Neighborhood Conservation," prepared for the Federal Home Loan Bank Board by Arthur Goodwillie,
as Economic Assistant, under the direction of Donald H. McNeal, Deputy General Manager of the HOLC. The more detailed and technical phases of the
operation are fully explained in this report, which may be ordered when published from the Superintendent of Documents, Government Printing Office,
Washington, D. C.
July 1940
in paying the cost of repairing and rehabilitating
their properties might borrow the necessary funds.
I t also required the organization of a Neighborhood
Association, to which the recommendations for the
treatment of each property, and of the whole area,
might be entrusted. Through such a Neighborhood
Association, with energetic and sympathetic local
leadership and unified neighborhood support, these
recommendations could be translated into actual
physical improvement of Waverly. Under such a
group, the neighborhood standards thus established
could long be maintained.
In a concluding article on the Waverly
the basic recommendations of the Master
be presented, together with the method of
tion of the Neighborhood Association and
for financing the necessary improvements.
program,
Plan will
organizathe plans
Resolution of the Board
R E S O L U T I O N C O N C E R N I N G T H E F O R M O F A N N U A L REPORT AND SUPPLEMENTAL DATA TO BE SUBMITTED BY
MEMBER SAVINGS BANKS AND SUPPLEMENTAL DATA
SUBMITTED BY MEMBER INSURANCE COMPANIES
On May 13, 1940, the Federal Home Loan Bank
Board adopted the following resolution which provides for the acceptance of annual reports of member
mutual savings banks in the form required by State
supervisory authorities. 1 I t also lays down the
principle for requiring supplemental data from these
institutions and from insurance company members
of the Federal Home Loan Bank System.
Resolved, That the form of annual report required by legally
constituted State supervisory authority of the State of
domicile of any savings bank which is a member of the Federal
Home Loan Bank System, is hereby prescribed as the form of
annual report required by Section 3.4 of the Rules and Regulations for the Federal Home Loan Bank System,
Further resolved. That the submission of a copy of such
report, similarly executed and sworn to as required in the
case of the report submitted to such State supervisory
authority, shall be acceptable under the provisions of Section
3.4 of the Rules and Regulations for the Federal Home Loan
Bank System,
Further resolved, That such supplemental data as may be
required by the Banks and/or the Board in order to determine
savings bank and insurance company members' compliance
with the Federal Home Loan Bank Act and the Rules and
Regulations for the Federal Home Loan Bank System shall
be furnished the members' Bank and shall be deemed a part
of the forms prescribed herein and in Board resolution dated
October 5, 1937, relative to insurance company members.
i A similar resolution concerning the annual reports of member insurance companies was adopted on Oct. 5,1937.
359
Directory of Member, Federal, and
Insured Institutions
I. INSTITUTIONS ADMITTED TO MEMBERSHIP IN
THE FEDERAL HOME LOAN BANK SYSTEM BETWEEN MAY 16 AND JUNE 15, 1940
DISTRICT NO. 3
PENNSYLVANIA:
New Castle:
Equitable Federal Savings & Loan Association of New Castle (converted
from Equitable Building & Loan Association of New Castle,
Pennsylvania).
First Federal Savings & Loan Association of New Castle (converted
from New Castle Mutual Building & Loan Association).
DISTRICT NO. 4
NORTH CAROLINA:
Reids ville:
First Federal Savings & Loan Association of Reidsville, 109 Gilmer Street
(converted from Rockingham Building & Loan Association).
D I S T R I C T NO. 1
N E W HAMPSHIRE:
Rochester:
Rochester Trust Company.
DISTRICT NO. 7
WISCONSIN:
Milwaukee:
Modern Federal Savings & Loan Association, 3508 West North Avenue
(converted from Modern Savings & Loan Association).
D I S T R I C T NO. 3
PENNSYLVANIA:
Altoona:
Columbia Building & Loan Association of Altoona, Pennsylvania,
1114 Twelfth Street.
D I S T R I C T NO. 4
NORTH CAROLINA:
CANCELATIONS OF FEDERAL SAVINGS AND LOAN ASSOCIATION
CHARTERS BETWEEN MAY 16 AND JUNE 15, 1940
PENNSYLVANIA:
Philadelphia:
Oxford Federal Savings & Loan Association of Philadelphia, 1523 West
Girard Avenue (merger with, and under name of, Founders-Oxford
Federal Savings & Loan Association, Philadelphia, Pennsylvania).
Durham:
Mutual Building & Loan Association, 816 Fayettesville Street.
D I S T R I C T NO. 5
OHIO:
Brook ville:
The Brookville Building & Savings Association, 210 Market Street.
D I S T R I C T NO. 6
INDIANA:
Indianapolis:
South Park Saving & Loan Association, 301 Kresge Building.
MICHIGAN:
III. INSTITUTIONS INSURED BY THE FEDERAL
SAVINGS AND LOAN INSURANCE CORPORATION
BETWEEN MAY 16 AND JUNE 15, 1940
DISTRICT NO. 2
N E W YORK:
Pearl River:
The Park Co-operative Savings & Loan Association of Pearl River,
New York, 3 Central Avenue.
Menominee:
Menominee Home & Investment Association.
D I S T R I C T NO. 7
ILLINOIS:
Chicago:
Saint Thomas Building & Loan Association, 4424 West Walton Street.
DISTRICT NO. 3
PENNSYLVANIA:
Philadelphia:
Cayuga Federal Savings & Loan Association of Philadelphia, 101 South
Twelfth Street.
Rochester:
Rochester Federal Savings & Loan Association, 361 Brighton Avenue.
D I S T R I C T NO. 8
MISSOURI:
Joplin:
The Home Building & Loan Association of Joplin, Missouri, Fourth &
Main Streets.
WITHDRAWALS FROM THE FEDERAL HOME LOAN BANK SYSTEM BETWEEN MAY 16 AND JUNE 15, 1940
DISTRICT NO. 5
KENTUCKY:
Campbells ville:
Taylor County Federal Savings & Loan Association.
OHIO:
Brookville:
The Brookville Building & Savings Association, 210 Market Street.
ILLINOIS:
Berwyn:
Berwyn Savings, Building & Loan Association, 6804 West Thirtysecond Street (voluntary liquidation).
DISTRICT NO. 7
ILLINOIS:
Chicago:
West Pullman Savings & Loan Association, 700 West 119th Street.
Lockport:
Lockport Loan & Homestead Association.
MARYLAND:
Baltimore:
Cedar Building & Loan Association, Incorporated, 447 East Twentyfifth Street (voluntary withdrawal).
N E W JERSEY:
Hackensack:
North Jersey Building & Loan Association of Hackensack, 1 East Mercer
Street (merger with, and under name of, Oritani Building & Loan
Association of Hackensack, New Jersey).
OHIO:
Dayton:
The West Side Building & Loan Company, Third & Broadway (voluntary liquidation).
WISCONSIN:
Milwaukee:
Badger Savings, Building & Loan Association, 212 West Wisconsin
Avenue (liquidation, sale of assets, and transfer of 550 shares of Bank
stock to Consolidated Savings & Loan Association, Milwaukee,
Wisconsin).
Keystone Mutual Building & Loan Association, Colby-Abbot Building
(liquidation, sale of assets, and transfer of 168 shares of Bank stock to
Consolidated Savings & Loan Association, Milwaukee, Wisconsin).
Lakeside Building & Loan Association, 2551 North Downer Avenue
(liquidation).
Republic Building & Loan Association, 110 East Wisconsin Avenue
(liquidation, sale of assets, and transfer of 60 shares of Bank stock to
Consolidated Savings & Loan Association, Milwaukee, Wisconsin).
Sherman Park Building & Loan Association, 2800 West Center Street
(segregation, sale of assets, and transfer of 225 shares of Bank stock
to Sherman Savings & Loan Association, Milwaukee, Wisconsin).
II. FEDERAL SAVINGS AND LOAN ASSOCIATIONS
CHARTERED BETWEEN MAY 16 AND JUNE 15,
1940
DISTRICT NO. 2
N E W JERSEY:
Montclair:
First Federal Savings & Loan Association of Montclair, 28 South Park
Street (converted from Nishuane Building & Loan Association).
360
Housing Corporation
Surplus Funds
•
A R E C E N T ruling by the Federal Housing
Administration permits housing corporations
operating under Section 207 of the National Housing
Act to invest reserve and surplus funds in building,
savings and loan associations, whose accounts are
insured by the FSLIC in amounts not in excess of
$5,000. Heretofore such housing corporations have
been required to invest their reserve funds only in
Government bonds, or in bonds fully guaranteed as
to principal and interest by the Government, or in
pre-amortization of the insured mortgage.
Housing corporations which operate
under
Section 207 are regulated by the Federal Housing
Administrator to provide reasonable rentals to
tenants and to permit a reasonable but limited return
on the investment.
Federal Home Loan Bank Review
V. S. GOVERNMENT PRINTING O F F I C E : 1 9 4 0
FEDERAL HOME LOAN BANK DISTRICTS
OFFICERS OF FEDERAL HOME LOAN BANKS
BOSTON
CHICAGO
B. J. ROTHWELL, Chairman; E . H . W E E K S , Vice Chairman; W . H .
C. E . BROUGHTON, Chairman; H . G. ZANDER, JR., Vice Chairman; A. R .
NEAVES,
President;
H.
N.
FAULKNER,
Vice President;
W I N A N T , J R . , Treasurer; L. E . D O N O V A N , Secretary; P.?A.
GARDNER,
FREDERICK,
President; J. P . D O M E I E R , Vice President; H . C . J O N E S ,
Treasurer; CONSTANCE M . W R I G H T , Secretary; UNGARO & SHERWOOD,
HENDRICK*
Counsel.
Counsel.
NEW
DES
YORK
MOINES
Chairman;
C. B . B O B B I N S , Chairman; E . J. R U S S E L L , Vice Chairman; R. J. R I C H A R D -
G. L . B L I S S , 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;
GEORGE
MACDONALD,
Counsel;
ROBERT
G.
Chairman;
F.
V.
D.
LLOYD,
Vice
CLARKSON, Vice President-Secretary;
DENTON
EMMERT, JAMES, N E E D H A M & L I N D G R E N , Counsel.
C. L Y O N , Treasurer.
PITTSBURGH
LITTLE
E.
ROCK
T . T R I G G , Chairman; C. S. T I P P E T T S , Vice Chairman; R . H . R I C H ARDS,
President;
G. R. P A R K E R ,
Vice
President;
H. H.
GARBER,
W.
Secretary-Treasurer; R . A. CUNNINGHAM, Counsel.
C. JONES, J R . , Chairman; W . P . GULLEY, Vice Chairman; B . H .
WOOTEN, President; H . D . WALLACE, Vice President-Secretary; J. C .
C O N W A Y , Vice President; W . F . T A R V I N , Treasurer; W . H . CLARK, J R . ,
Counsel.
WINSTON-SALEM
E . C. BALTZ, Vice Chairman; O. K. L A R O Q U E , President-Secretary; G. E .
WALSTON, Vice President-Treasurer; Jos. W. HOLT, Assistant Secretary;
TOPEKA
P . F . GOOD, Chairman; G. E . M C K I N N I S , Vice Chairman; C. A. STERLING,
President-Secretary; R . H . BURTON, Vice President-Treasurer; JOHN
S. D E A N , JR., General Counsel.
T . S P R U I L L T H O R N T O N , Counsel.
CINCINNATI
PORTLAND
W M . M E G R U E BROCK, Vice Chairman; W A L T E R D . SHULTZ, President;
W. E . J U L I U S , Vice President; D W I G H T W E B B , J R . , Secretary; A. L .
F. S. MCWILLIAMS, Vice Chairman; F . H. JOHNSON, President-Secretary;
IRVING BOGARDUS, Vice President-Treasurer; Mrs. E . M .
M A D D O X , Treasurer; T A F T , STETTINIUS & HOLLISTER, General Counsel.
JENNESS,
Assistant Secretary.
Los ANGELES
INDIANAPOLIS
H. B . W E L L S , Chairman; F . S. CANNON, Vice Chairman-Vice President;
D.
G. D A V I S ,
Chairman; A . J. E V E R S , Vice Chairman; M . M .
HUR«
F R E D T . G R E E N E , President; G. E . OHMART, 2nd Vice President; J. C.
FORD. President; C. E . BERRY, Vice President; F . C. N O O N , Secretary-
M O R D E N , Secretary-Treasurer; J O N E S , HAMMOND, BUSCHMANN & G A R D -
Treasurer;
NER, Counsel.
PATRICK, General Counsel.
VIVIAN
SIMPSON,
Assistant
Secretary;
RICHARD
FITZ-
@FedFRASER