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No. 10
Vol.7
FEDERAL
HOME LOAN BANK
REVIEW
JULY
1941
ISSUED BY
FEDERAL HOME LOAN BANK BOARD
WASHINGTON D.C.
CONTENTS
FOR
JULY
1941
ARTICLES
FEDERAL
HOME
LOAN
Page
322
SAVINGS AND L O A N F I N A N C I N G A I D S T H E D E F E N S E H O U S I N G PROGRAM
W h a t are defense areas?—What is defense housing?—A few
examples—Shifts in lending a c t i v i t y — E s t i m a t e s of new fan
units permanently financed.
PRIORITY PLANS FOR BUILDING MATERIALS
325
C L O S I N G T H E B O O K S FOR 1 9 4 0 — A P R O G R E S S R E P O R T FOR M E M B E R S
.
.
.
REAL-ESTATE TAXES IN T H E HOME OWNERS' BUDGET
BANK
334
An H O L C survey—Taxes related t o financial charges—Tax
load compared with original mortgage loan—Taxation, foreclosures, a n d property sales— Method of p a y m e n t .
S A V I N G S AND H O M E - F I N A N C I N G O P E R A T I O N S O F B A N K S D U R I N G 1940
REVIEW
327
Trends in t h e combined balance sheet of member associations—
Analysis of individual asset accounts—On t h e credit side of t h e
ledger—-Reserve position shows little change—Balance sheets by
size of association.
.
.
.
.
338
G r o w t h in t h e mortgage portfolio of commercial b a n k s — R e d u c tion of t h e real-estate overhang by 25 percent—Savings deposits
in relation t o t o t a l deposits—Stability in m u t u a l savings bank
operations.
MONTHLY
SURVEY
Published Monthly by the
FEDERAL HOME LOAN
BANK BOARD
John H, Fahey, Chairman
T. D. Webb, Vice Chairman
F. W, Catlett
W. H. Husband
F. W. Hancock, Jr.
FEDERAL HOME LOAN
BANK SYSTEM
FEDERAL SAVINGS AND LOAN
ASSOCIATIONS
FEDERAL SAVINGS AND LOAN
INSURANCE CORPORATION
HOME OWNERS' LOAN
CORPORATION
Highlights a n d s u m m a r y
343
General business conditions
344
Residential construction
345
Building costs
New mortgage-lending activity of savings a n d loan associations
Mortgage recordings
Foreclosures
Federal savings a n d loan associations
Federal Savings a n d Loan Insurance Corporation
Federal H o m e Loan Bank System
345
345
346
346
347
317
347
STATISTICAL
TABLES
New family dwelling units—Building costs—Savings a n d loan lending—Mortgage
recordings—Total nonfarm foreclosures—HOLC properties—Insured savings
a n d loan associations—Federal H o m e Loan B a n k advances—Government investments in savings a n d loan associations—Private long-term savings . . 350-360
REPORTS
From t h e m o n t h ' s news .
Savings a n d loan accounts affected by executive order freezing foreign accounts .
Appointment of Director
Resolutions of t h e Board
Directory of member, Federal, a n d insured institutions added during M a y - J u n e .
.
326
341
341
348
348
SUBSCRIPTION P R I C E OF 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 REVIEW will be sent to all member institutions without
charge. To others the annual subscription price, which covers the cost of paper and printing, is $1. Single copies will be sold at • 10 cents. Outside of the United States,
Canada, Mexico, and the insular possessions, subscription price is $1.60; single copies, 15 cents. Subscriptions should be sent to and copies ordered from Superintendent
of Documents, Government Printing Office, Washington, D. C.
APPROVED BY T H E BUREAU OF T H E B U D G E T .
SAVINGS AND LOAN FINANCING AIDS THE
DEFENSE HOUSING PROGRAM
What are savings and loan associations doing to assist in the
solution of pressing housing problems in defense areas? Records prepared by the Division of Research and Statistics reveal
substantially increased lending activities of member associations
in defense localities, including the sponsorship of special defense housing projects in various parts of the country.
•
D U R I N G the first ten months of our defense
effort, which comprise the period from July
1940 through April 1941, savings and loan members
of the Bank System have loaned $586,583,000 in
defense localities where an acute housing shortage
exists. While these loans included funds for new
construction as well as home purchase, reconditioning,
refinancing, and various other purposes, it is estimated that over 87,000 newly built family units
were permanently financed with mortgages originated
by savings and loan members in defense housing
areas. Construction loans in these areas showed an
increase of 32 percent over comparable "pre-defense"
periods.
These are highlights of a study just completed by
the Division of Research and Statistics to ascertain
the role of member institutions in meeting the vastly
increased housing needs caused by the emergency.
WHAT ARE DEFENSE AREAS?
"Defense housing areas" include those localities
for which public housing funds have either been
allocated or where allocation is definitely under consideration as well as those which have been
designated for F H A insured mortgages under the new
Title VI of the National Housing Act. In each
case, a severe housing shortage is a prerequisite to
the approval by the Federal authorities in charge.
Lending data for these areas represent, therefore, a
conservative measure of the extent to which member
savings and loan associations contribute to the
vigorous execution of the defense housing program
which, it is generally recognized, needs the support
of private capital as well as of Government funds.
There are, of course, numerous communities which
have received defense orders and in which acute
housing shortages have not—or not as yet—been
PERCENT CHANGE IN LENDING VOLUME OF SAVINGS AND LOAN MEMBERS, BY PURPOSE OF LOAN
FIRST 4 MONTHS OF 1940 COMPARED WITH SAME PERIOD OF 1941
CONSTRUCTION
HOME PURCHASE
REFINANCING
RECONDITIONING
TOTAL
\o
DEFENSE HOUSING AREAS
0
\0
C>
DEFENSE HOUSING AREAS
DEFENSE HOUSING AREAS
i0
OTHER AREAS
DEFENSE HOUSING AREAS
^0 *?JL£ *0
OTHER AREAS
OTHER AREAS
OTHER AREAS
O
'o
DEFENSE HOUSING AREAS
v'ldJlzo
OTHER AREAS
The above chart illustrates the contrast between lending activities of savings and loan members in defense housing areas and lending activities in other areas. Comparison of the loan volume recorded for the first four months of 1941 with that for the same period of 1940 indicates that in defense areas the gains of construction loans
(plus 32.4 percent) and reconditioning loans (plus 20.4 percent) were far in excess of those in non-defense areas. Home-purchase loans show about the same increases in
both defense and non-defense localities. Refinancing loans declined over 6 percent in armament centers but rose slightly over 3 percent in the rest of the country. Total
loans increased 21 percent in defense communities compared with 16 percent in other communities.
322
Federal Home Loan Bank Review
found to exist. If these areas are included, the
lending volume of savings and loan members from
July 1940 through April 1941 reached $750,000,000.
This amount represents the funds loaned in all areas
where defense contracts have been awarded. The
number of newly constructed family units financed by
savings and loan members in these areas is estimated
to exceed 120,000.
WHAT I S D E F E N S E HOUSING?
The data on financing activities of savings and
loan members in defense areas were obtained from
the monthly reports of insured savings and loan
CHANGE IN LENDING VOLUME OF INSURED
ASSOCIATIONS IN DEFENSE HOUSING AREAS
UNITED STATES AND F H. L. B. DISTRICTS
FIRST 4 MONTHS 1940"FIRST 4 MONTHS 1941
-10
2-NEW YORK
3-PITTSBURGH
k
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i
4-WINSTON SALEM
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5-CINCINNATI
^^^^^^^^^
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glilill-^lg-ljg
6-INDIANAPOLIS
••(••
7-CHICAGO
INCREASE
40
50
1
UNITED STATES
I-BOSTON
PERCENT
20
30
10
C
^^^^^^
^
^••/i-:^:^--:::::-!
^ ^ ^ ^ ^ I ~ ™ ~ "
8-DES MOINES
9-LITTLE ROCK
L^vvJ...TOTAL LOANS
/.'•.'•/'••••.••••••'•.V-|
H I . . . . C O N S T R U C T I O N LOANS
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•••••::y;:-:-.vVv--y/:. : :-v
^ ^ m
^^^^^^
Large geographic shifts of lending activities in defense housing areas are indicated in this chart which is based on reports from insured savings and loan associations for the first four months of 1941 and 1940. With one exception, total loans
as well as construction loans showed more or less substantial gains, but the rate
of increase varied considerably in the different Federal Home Loan Bank Districts. Variations were particularly marked in construction loans in which the
Indianapolis District scored the largest gain while the Little Rock area recorded
a decline. In eight of the 12 Districts the increase in construction loans was in
excess of the increase in total loans.
associations and from estimates for uninsured
members, based on the known relationship between
the lending volume of insured and uninsured member
institutions. As a matter of definition, it has been
recognized by the Defense Housing Coordinator that
any addition to the available family units in armaJuly 1941
This chart shows the proportion of member savings and loan lending in defense
housing areas to that in other areas. Defense housing areas include those communities for which public housing funds have either been allocated or where
allocation is definitely under consideration, as well as those designated for FHA
insured loans under Title VI of the National Housing Act. In recent months,
close to 70 percent of the total loans originated by member savings and loan associations was made in these areas.
ment centers, whether provided specifically for
defense workers or not, helps to relieve housing
shortages; this is particularly true for structures
financed by savings and loan associations whose
average mortgage loan is in. the neighborhood of
$2,500, indicating that these institutions concentrate
on the financing of small and inexpensive houses.
Let us illustrate this point by a hypothetical
example. Suppose that in defense community
"Middletown," grocer John Jones has a booming
business and builds himself a new home, financed by
a savings and loan association. He sells his old
home to Jim Smith, the bank clerk, who has been
living in an apartment and has saved enough money
to acquire a home of his own. Jim Smith vacates his
apartment which in turn is taken over by Al Brown,
the garage mechanic, who likewise feels the effect of
the defense boom. Al Brown's apartment finally
is rented to defense worker Joe Elliott who has just
moved into the community and secured a job.
Clearly the financing of grocer Jones' new house has
contributed to the solution of the defense housing
problem in our hypothetical "Middletown."
A F E W EXAMPLES
In fact, the participation of savings and loan
associations in financing defense housing ranges
from many single homes like that of grocer Jones to
large-scale projects developed for the avowed purpose of reducing the housing shortage in such defense
communities where the demand for dwellings is
323
reasonably permanent. Examples of the latter type
are found in Hingham near Boston where a group of
associations has financed the construction of several
hundred homes close to shipbuilding centers; in a
$200,000 project in Camden, New Jersey, which is
likewise affected by the shipbuilding boom; and in
the completion of arrangements for a revolving fund
of $1,000,000 by a group of associations in the
Pittsburgh area, one of the most important armament centers.
On the West Coast, a Federal association has
made a loan of $200,000 which had the distinction of
being the first mortgage insured in this area by
the FHA under Title VI of the National Housing
Act. The same institution has commitments for a
far greater amount pending, and several other associations in this region are financing extensive housing
developments in defense localities. Middletown,
Ohio, and Ogden, Utah, are among the smaller communities in which an unusual demand for housing,
created by defense activities, is being met with the
financial aid of local savings and loan associations.
in defense localities gain at a more rapid pace (21
percent) than in non-defense localities (16 percent)
but there have been remarkable shifts in the distribution of loans according to purpose. Significantly, loans for construction and reconditioning
have increased at a much faster rate in armament
areas than in the rest of the country. On the other
hand, the expansion of home-purchase loans has
been about the same in defense and non-defense areas,
while refinancing loans actually decreased in the
former and increased slightly in the latter.
Likewise, there have been noticeable geographical
shifts in total lending volume and especially in construction lending, as is shown in the bar chart on
page 323. Undoubtedly the unusual gains of construction loans recorded for defense areas in the
Boston, Cincinnati, Indianapolis, Chicago, and
Portland Districts are related to the housing needs
in communities into which the armament program
has drawn great numbers of new inhabitants.
SHIFTS IN LENDING ACTIVITY
ESTIMATES OF N E W FAMILY U N I T S PERMANENTLY
FINANCED
The effect of the defense program on lending
operations is perhaps most clearly reflected in a
comparison of activities in defense and non-defense
areas. Such comparative data for the first four
months of 1941 and 1940 are illustrated in the chart
on page 322. Not only did the total lending volume
The estimated 87,000 new family units financed
by member associations in defense housing areas
from July 1940 through April 1941 is about equivalent to the number of units for which allocations from
public funds had been made during the same period,
(Continued on p. 34-1)
This is a partial view of the Bradley Woods development in Hingham, Massachusetts, which is being sponsored by a group of New England savings and loan associations. Several hundred dwelling units will be added to the housing supply of the vital defense area surrounding Boston. Quantity purchases of materials and supplies and the volume of construction work involved afforded an opportunity to benefit from the economies of large-scale operations. (Picture through the courtesy of
the Christian Science Monitor.)
324
Federal Home Loan Bank Review
PRIORITY PLANS FOR BUILDING MATERIALS
The defense program is having increasingly marked effects on all
phases of economic activity. The latest step of direct interest to
home-financing institutions is the announcement that priority
ratings will be introduced for building materials to assure an
adequate supply for public as well as private defense housing.
•
SHORTLY before this issue went to press, a
broad program providing priority aid for defense
housing projects was announced jointly by E. R.
Stettinius, Jr., Director of Priorities, and Charles F.
Palmer, Defense Housing Coordinator.
The announcement said that this program puts
defense housing ahead of civilian and non-defense
housing projects and will assure a steady flow of
necessary building materials to the projects deemed
essential to the national defense program.
Under the terms of the program, no priority aid
will be granted for defense housing, whether publicly
or privately financed, until requests for materials
have been cleared through the Coordinator or his
field representatives in accordance with the procedures being developed. The Division of Defense
Housing Coordination will supply the Priorities Division of the Office of Production Management with:
(1) A complete list of all publicly financed defense housing
projects for which priority assistance is recommended.
(2) A list of areas in which an acute shortage of housing
either exists or impends, thereby threatening to impede or
interfere with national defense activities, together with figures
on each area indicating how m u c h defense housing is needed.
(3) A formal definition of w h a t constitutes defense housing.
Under the new program, priority assistance may
be given either to a publicly financed defense housing project or to private defense projects within a
designated area. With the concurrence of the Army
and Navy Munitions Board, the Priorities Division
will be prepared to give each publicly financed
defense housing project, or any area named by the
Defense Housing Coordinator, a preference rating
considered appropriate in the light of the national
defense activity to be served.
Plans are being worked out under which these
projects or area ratings may be extended to applicants by local representatives of the Government to
be designated by the Coordinator with the approval
of the Priorities Division.
The ratings to be assigned will aid contractors
engaged in defense housing work to speed up delivery
July 1941
of materials to be specifically named on a Defense
Housing Critical List, now being prepared. The
ratings may be used only for orders or contracts for
these critical list items.
This critical list will contain only those items on
which, in the opinion of the Priorities Division,
preference ratings are necessary to obtain the
quantities and delivery dates required. The list will
exclude items of a vital defense nature—such as
aluminum, copper, nickel, bronze, zinc, etc.—except
when the Defense Housing Coordinator demonstrates
that these items or products containing these items
are absolutely essential and that adequate substitutes
cannot be used.
Representatives who are designated to handle
applications for priorities for privately financed defense construction may only extend an area rating
when they are satisfied that the housing will be
suitable for, and reasonable preference in occupancy
will be given to, workers engaged in the designated
defense industries; that the intended sales price is
$6,000 or less or the intended shelter rental is $50
per month or less, and that the housing is, in general,
necessary in connection with defense housing needs.
I t was pointed out, however, that exceptions may
be made for such other proposed residential construction as may, in particular cases, be necessary to meet
defense needs. In such cases, the necessity must be
demonstrated to the Coordinator through his designated local representative and the Coordinator will
make appropriate recommendations to the Priorities
Division. The procedures being developed will
apply to rehabilitation of existing structures, as well
as new construction, where a dwelling unit not otherwise habitable would thereby be made available.
The present agreement will, the announcement
concluded, clarify the priorities situation with relation to residential defense construction and, it is
hoped, will remove any hesitancy on the part of
builders, lenders, and others to undertake this type
of construction.
325
«
«
«
FROM THE MONTH'S NEWS »
MONEY RATES: "No material change in
money rates can be expected from the
present level. A decline in prices of two
or three points on long-term Government
obligations could not be considered as a
material change in interest rates."
Barron's, Apr. 14, 1941.
TAKE AN INTEREST: "Savings and loan
. . . men should take an interest in the
question of defense housing in their local
communities. The matter is one that is
of interest and concern to us both as it
affects all of us as citizens and as it particularly concerns our own industry."
Joseph A. O'Brien, Building
and Loan Guide and Bulletin,
May 1941.
LABOR DEMAND: ". . . each dollar
expended for defense orders requires an
hour's labor distributed in plants of final
assembly, in fabricating parts and materials, in the extraction of raw materials,
and in transporting these goods."
A. F. Hinrichs, Monthly Labor
Review, May 1941.
AVOIDING INFLATION: "To the extent that people pay taxes or invest in
Government bonds, such as the new savings bonds, these funds will not be available for the public to bid up prices in
the market place and they will aid in
financing defense, thus avoiding inflationary effects."
>*
*r
Better annual reports
"Issuance of understandable reports to stockholders has been
gaining in recent years. Companies in nearly every field of endeavor
are recognizing the importance of transmitting to their stockholders
a more graphic description of 12 months' operations. B u t only a
small percentage of American corporations so far has actually
departed from the old tradition of stating the bare facts in such a
way that stockholders are left wondering what it's all about."
Wall Street Journal, Apr. 28,1941.
Post-war home building
"Another aspect of the matter is that, if an expansion of home
building is prevented during the next few years by inadequate supplies of materials and labor, and if large amounts of savings are
invested in savings bonds during the war period, the people who
accumulate such savings will be able to redeem their bonds after the
war, if they so desire, and use the money toward the purchase of
homes in subsequent years, when the maintenance or expansion of
building activity may be highly desirable to sustain business activity
and employment. A temporary diversion of savings to defense
bonds may, therefore, have considerable advantages, not only in the
current situation, but also in later years."
Harold V. Roelse, The American
Banker, June 12, 1941.
iliililiiliiililliiH
Marriner S. Eccles, Domestic
Commerce, May 22, 1941.
A PROFESSION: "Executive management, as I conceive it, is a profession
and involves a responsibility of sufficient
consequence to merit the full-time, undivided attention of the person designated
as the manager, whatever his title mav
be."
KalphH. Richards, President,
Federal Home Loan Bank of
Pittsburgh, in speech before
Annual Stockholders Meeting,
Mar. 8, 1941.
PRIORITIES: "We must plan as fair and
easy a system of priorities as possible
but we must see that essential defense
housing gets material next in line after
bombers. Defense housing is just as
much material of war as planes, tanks,
and guns. I t may even be necessary to
make a tight and narrow definition of
defense housing and restrict other building."
Charles Palmer, Defense Housing Coordinator, Defense, June
17, 1941.
326
WHOLESALE
RETAIL-
SAWMILL
TOTAL
Source; U.S. Dept. of Commerce
Defense housing, Army and Navy construction, and railroad demands are important factors in the
market for all types of lumber today. Lumber consumption during the first half of this year is believed
to have exceeded to.tal production by approximately one and one-half billion board feet.
Total stock, however, was about the same at the end of March 1941 as it was at the end of August last
year. Sawmill stock decreased by approximately one billion board feet during this period, and retail
stock increased by the same amount.
Lumber Survey, Domestic Commerce,
June 5,1941.
Federal Home Loan Bank Review
CLOSING THE BOOKS FOR 1940—A PROGRESS
REPORT FOR MEMBER ASSOCIATIONS
Combined year-end financial statements of all member savings and loan associations reveal continued progress in
practically all phases of their thrift and home-financing
operations. The 9-percent increase in total assets exceeded
the 1939 rate of gain.
•
T H E net effect of 1940 operations on the balance
sheet of the average savings and loan member of
the Federal Home Loan Bank System was decidedlyfavorable: On the asset side of the balance sheet
there was a sizable increase in mortgage loans outstanding, a healthy decline in real estate owned, and
—in view of the uncertainties of present world conditions—a significant rise in the amount of liquid funds
represented by cash on hand and in banks. Outstanding changes on the liability side of the ledger
included a substantial gain in private repurchasable
capital and a $30,000,000-reduction in Government
investments in member institutions. On the other
hand, the general reserves of the associations showed
only a fractional dollar increase and actually declined as a proportion of their total assets.
These observations are based on the combined
statement of condition which has recently been prepared from the individual balance sheets of the
3,818 savings and loan associations which were members of the Federal Home Loan Bank System on
December 31, 1940. The assets of these institutions
totaled almost $4,411,000,000—a gain of $363,000,000, or 9 percent, over the previous year-end report.
This increase—substantially above the $295,000,000 improvement shown in 1939—maintained the
steady upward trend of total membership assets
which has prevailed since the inception of the Bank
System in 1932. In contrast, the number of associations has been declining gradually during the past
two years primarily as a result of mergers and consolidations in the welding together of stronger and
larger individual units. During 1940, there was a
net loss of 50 associations, and in view of this the
asset growth becomes even more impressive.
The average size of member savings and loan
associations increased more than $100,000 per institution from $1,046,000 at the end of 1939 to slightly
more than $1,155,000 on the past year-end closing
July 1941
Trends of selected balance-sheet items in relation
to total assets
Item
First mortgage loans
Real estate owned
Real-estate contracts
Cash a n d other investments
1940
1939
1938
Pet.
Pet.
Pet.
79.25 76. 76 7 4 . 4 1
9.30 11.99
6.80
3.78
3. 79 3 . 8 4
6. 32
7. 05 6.81
1937
Pet.
72.82
13. 77
3. 61
6. 15
date. These figures may be compared with $963,600
at the end of 1938 and $843,000 in 1936.
INDIVIDUAL ASSET ACCOUNTS
First mortgage loans: The new recovery peak of
savings and loan lending established during the past
year produced a correlative new high in the net first
mortgage investments of member associations. The
net rise of $388,000,000 in the first mortgage loans
outstanding far exceeded the gains of the two
previous years and sent the mortgage-investment
portfolio of member savings and loan associations to
the high level of $3,496,000,000.
Mortgage holdings continued to rise in relation to
the total assets of these institutions and accounted
for almost four-fifths (79.3 percent) of their aggregate
resources at the end of 1940. This was a considerable advance over the previous year's ratio of 76.8
percent. In the past four years from 1936-1940,
this account has risen nearly 10 percentage points in
its relationship to total assets. Since mortgage
loans are the principal earning asset of savings and
loan associations, this upward trend may be expected
to have had a favorable effect on operating incomes.
Geographically, every Federal Home Loan Bank
District contributed to this nationwide rise in the
proportion of first mortgage loan holdings, the
Winston-Salem region maintaining the highest ratio
of mortgage loans to total assets.
327
Further progress was also made in the gradual
elimination of all junior mortgage liens held by member associations. At the end of the year, only
$3,800,000, or less than 0.1 percent of their total
assets, were tied up in investments of this character.
Real estate owned: Improved conditions in the realestate market and concerted sales efforts on the part
of individual associations during 1940 were reflected
in a considerably smaller real-estate-owned account
at the end of the year. Total holdings of real estate
were below $300,000,000—a net decline of almost
$77,000,000, or 20 percent, during the year.
The ratio of real estate owned to the total assets
of all member associations is now below 7 percent,
dropping from 9.3 percent at the end of 1939 to 6.8
percent in the current report.
Real-estate contracts: Indications of the continued
use of land contracts as a method of selling institutionally owned real estate are found in the $12,000,000-increase in the holdings of these instruments.
Total real estate sold on contract at the end of 1940
amounted to $167,000,000, or 3.79 percent of total
assets—a slightly lower ratio than at the previous
year-end. (The combined real-estate account—
owned plus contracts—was equal to 10.6 percent of
total assets in contrast to a 13.1-percent ratio a
year ago.)
Cash: I n view of the continued unrest in world
conditions, the $36,000,000-increase in the amount
of cash on hand and in banks appears to be a desirable
movement toward a greater degree of liquidity.
At the end of 1940, the aggregate amount of these
liquid funds totaled almost one-quarter of a billion
dollars, or 5.5 percent of the combined resources of
all member savings and loan associations. The
liquidity of member associations as measured by this
account has been increasing steadily now since 1937.
Other changes among the asset accounts include:
small increases in the office building and furniture
and fixture accounts; declines in the "other" assets
and "other" investments accounts; and a $3,500,000rise in holdings of Federal Home Loan Bank stock—
about in proportion to the 9-percent gain in total
assets.
O N THE CREDIT S I D E OF THE LEDGER
Private repurchasable capital: Aggregate funds
invested by the general public in member savings
and loan associations passed the $3,000,000,000mark during 1940, with a 12-percent gain for the
year as a whole and a net increase of almost $340,000,000. The average member association had pri328
Trends of selected balance-sheet items in relation
to total liabilities and capital
Item
1940
P r i v a t e repurchasable c a p i t a l . _
Government share i n v e s t m e n t s Pledged shares
F H L B advances a n d other
borrowed money
General reserves and undivided
profits
1939
1938
1937
Pet.
Pet.
Pet.
Pet.
69. 57 67. 43 65. 13 63. 59
5. 00 6. 17 6. 90 7. 13
3. 31 4. 11 4.80
5. 77
4. 92 4. 93 5.77
6.89
7.04
7. 15
6.09
6.76
vate repurchasable capital of more than $803,000
at the close of the past year in contrast to an average private investment of $706,000 in the previous
year-end statement.
Adding funds represented by deposits and investment certificates to the private share capital accounts,
total private investments in member associations
were then equal to 76.5 percent of their total resources
as compared with 74.6 percent at the close of 1939.
As in the case of mortgage holdings of member associations, the ratio of total private investments to
total assets increased in every Federal Home Loan
Bank District.
In sharp contrast to the trend of private investments, substantial repurchases by the associations
of Government investments resulted in a lower
ratio of these funds to total resources. Government
accounts in member associations were reduced from
$250,000,000 at the close of 1939 to slightly more
than $220,000,000 on December 31, 1940—down 12
percent. The net decline was more than three times
as great as in the previous year and reflects primarily
voluntary repurchases made possible by the increased
inflow of private savings. At the end of 1940 there
was more than $15 of pvrivate funds for every $1 of
Government funds in member associations; one year
previous the ratio was only $12 to $1.
Borrowed money: Under the pressure of large demands for mortgage loans and the program for
repurchasing Government investments, borrowed
money—almost exclusively Federal Home Loan
Bank advances—showed a net increase of approximately 10 percent from one year-end to the other
In spite of this gain, the ratio of total borrowings to
total assets remained unchanged at 4.9 percent.
Federal Home Loan Bank advances outstanding
at the end of the year ($200,105,000) were at an alltime record high, but have dropped considerably
(Continued on p. 832)
* 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, 1937-1940 1
A l l
Balance
Number of member
sheet
item
institutions
and
savings
loan
Fede r a l
members
1940
1939
193 8
1937
1940
1939
193 8
3,818
3,868
3,895
3,890
1,433
1,400
1,362
Insured
1937
1,319
1940
1939
835
795
Uninsured
State
1938
735
1937
560
State
1940
1939
1938
1937
1,550
1,673
1,798
2,011
ASSETS
Percent
Psrcent. Percent
Percent Percent
Percent Percent
Percent
Percent
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 advances)
79.25
76.76
74.41
72.82
83.21
81.52
79.80
Junior mortgage liens ( i n c l u d i n g
i n t e r e s t and advances)
0.09
0. 12
0.15
0.17
0.04
0.05
0.06
0.06
Other loans ( i n c l u d i n g share loans)
0.68
0.71
0.79
0.88
0.38
0.41
0.40
Real estate sold on contract
3.79
3.84
3.78
3.61
3.23
3.46
Real estate owned
6.80
9.30
I I . 89
13.77
4.14
5.70
Federal Home Loan Bank stock
0.99
0.99
0.99
0.96
1.07
1.09
Other investments ( i n c l u d i n g
accrued i n t e r e s t )
Cash on hand and in Banks.
_ _
Percent
Percent
Percent
Percent
Percen t Perc ent Percent
74.67
73.42
72.03
75.90
73.16
70.57
69.07
0.10
0.12
0.17
0.16
0.14
0.18
0.21
0.24
0.42
0.53
0.53
0.53
0.58
1.15
1.12
1.24
1.26
3.43
3.33
4.87
4.88
4.83
4.55
3.73
3.59
3.54
3.45
7.46
8.41
7.19
9.61
11.15
12.61
9.85
12.81
16.06
17.48
1.13
1.15
0.99
1.00
0.98
0.91
0.87
0.87
0.87
0.87
2.35
2.49
2.67
3.07
3.36
2.99
79.39 76.99
1.55
1.72
2.12
2.61
0.69
0,83
1.26
1.68
1.96
1.96
2.38
2.90
5.50
5.09
4.20
3.54
5.99
5.58
4.94
4.05
5.79
5.48
4.70
4.21
4.67
4.37
O f f i c e b u i l d i n g (net)
1.05
1-10
1.16
1.18
1.02
1 -10
1.20
1.16
1.22
1.32
1.33
1.53
0.97
0.97
1.05
1.08
F u r n i t u r e , f i x t u r e s , and equipment (net)
0.10
0.10
0.10
0.IC
0.13
0.13
0.14
0.13
0.12
0.12
0.12
0.10
0.06
0.06
0.07
0.07
Other assets
0.20
0.27
0.31
0.36
0.10
0.13
0.18
0.22
0.24
0.31
0.39
0.42
0.31
0.38
0.36
0.42
Total assets
'
LIABILITIES
IOC.00
100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
100.00 100.00 100.00 100.00 100.00 100.00 100.00
AND CAPITAL
D.S, Government investment (shares
and depos i ts}._.
5.00
6.17
6.90
7.13
9.69
13.21
16.58
19.65
69.57
67.43
65.13
63.59
74.45
70.81
65.88
61.27 60.28
Mortgage pledged shares
3.31
4.11
4.80
5.77
0.52
0.88
1.17
1.62
1.83
2.41
Deposits and investment c e r t i f i c a t e s _
6.96
7.20
7.27
7.44
0.02
0.02
0.09
0 4 I8 16.82
17.52
Advances from Federal Home Loan Banks
4.54
4.49
5.28
5.59
6.79
6.72
8.13
9.31
4.19
Other borrowed money
0.38
0.44
0.49
0.50
0.26
0.31
0.24
0.21
0.40
Private repurchasable shares
3.73
5.01
5.42
0.01
0.02
0.05
0.07
58.12 '55.09
53.91
70.04
69.58
69.53
68.56
2.89
2.82
7.84
8.42
8.67
9.4*0
18.19
19.49
8.67
8.32 '
7.61
7.47
4.23
5.36
5.21
1.96
2.36
2.94
3.45
0.42
0.51
0.41
0.52
0.58
0.68
0.69
0.29
4.43
Loans in process
1.42
1.12
0.80
0.63
2.06
1.78
1.37
1.18
1.50
1.19
0.90
0.64
0.58
0.40
0.29
Other 1 i a b i 1 i t i e s
1.13
1.09
1.12
1.19
1.13
1.15
1.21
1.22
1.38
1.34
1.43
1.28
0.94
0.89
0.90
1.15
Capital, permanent reserve or guaranty stock
0.58
0.63
0.71
0.71
0.00
0.00
0.00
0.01
2.00
2.20
2.51
2.58
0.32
0.34
0.38
0.48
Spec i f i c reserves,
0.22
0.28
0.35
0.69
0.21
0.26
0.36
0.48
0.26
0.33
0.40
0.72
0.20
0.26
0.32
0.80
General reserves
4.49
4.89
4.95
4.87
3.15
3.27
3.45
3.47
5.41
5.63
5.78
5.69
5.52
6.11
5.75
5.43
Undivided p r o f i t s
2.40
2.15
2.20
1.89
1.72
1.59
1.52
1.40
2.20
2.18
1.93
1.83
3.40
2.72
2.88
2.21
Total l i a b i l i t i e s and c a p i t a l
1
100.00
100.00 IOC00 100.00 [100.00 100.00 100.00 100.00 1100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
A11 figures aYe taken as of December 31, or nearest available date.
July 1941
326911—41-
329
Table 2-—Combined statement of condition for all savings and loan
NOTE
—Percentage figures show the
[Amounts are shown in
Balance
sheet
item
Combined
3,818
Number of members,
Boston
212
New York
401
Pittsburgh
512
Winston-Salem
1
400
ASSETS
First mortgage loans (including interest and advances)
Junior mortgage liens (including interest and advances).
Other loans (including share loans)
Real estate sold on contract. _
Real estate owned
Federal Home Loan Bank Stock
Other investments (including accrued interest)
Cash on hand and in Banks
Office building (net)
Furniture, fixtures and equipment (net)
Other assets2
Total assets
$3,495,884
79.257.
3,840
0.097.
29,884
$410,753
80.427.
10
$342,564
73.857.
0.687
167,169
3.797.
299,838
6.807.
43,547
0.997
68,542
1.557
242,391
5.507
46,414
1.057
4,530
0.10%
8,964
0.207.
5,372
1.057.
646
0.137
39,696
7.777
4,022
0.797.
15,877
3.117.
28,532
5.597.
3,238
0.637.
252
0.057
2,336
0.467
505
0.117
3,961
0.857.
11,710
2.527
62,625
13.507
4,941
1.077
8,916
-1.927
22,517
4.857
4,831
1.047
585
0.137.
739
0.167
$4,410,963
100.007
$510,734
100.007
$220,477
5.007.
3,068,951
69.577.
145,971
3.317
306,799
6.967
200,105
4.547.
16,755
$6,520
• 1.287
407,481
79.787.
45,203
8.857.
0
0.007
o.oo7.
$205,811
80.36%
2,478
0.977.
2,073
0.817
6,480
2.537.
23,985
9.377.
2,905
1.137.
335
0.137
9,963
3.897
1,098
0.437.
$441,621
90.377
102
0.027
3,643
246
0.107.
724
0.287
0.757.
4,416
0.907
6,904
1.417.
4,711
0.967.
1,789
0.377.
20,577
4.217
3,730
0.767.
476
0.107.
739
0.157.
$463,894
100.007.
$256,098
100.007.
$488,708
100.007.
$2,225
3.607.
175,979
68.727.
25,618
10.007.
0
0.007.
$26,243
5.377
368,417
75.387
16,843
3.457
78
0.027
30,041
6.157
2,840
0.587
8,432
1.727
1,352
0.287
1,747
0.367
17
0.007
934
0.197
1,049
0.217.
9,616
1.977
40
0.017.
21,059
4.317
$256,098
100.007
!
|
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
_
Other 1iabilities
_ _
Permanent, reserve, or guaranty stock
Deferred credits to future operations
Specific reserves
General reserves
Bonus on shares
Undivided profits
Total liabilities and capital
_
_
0.387
10,634
2.087.
1,851
0.367
62,833
1.427
13,707
0.317
19,319
0.447
25,799
0.587
16,604
0.387.
9,613
0.227
198,169
4.497
559
0.017.
105,302
2.397.
4,984
0.987
1,352
0.277.
1,846
0.367
0
0.007*
67
0.017.
212
0.047
18,235
3.577
44
0.017.
12,305
2.417.
$26,306
5.677
342,165
73.76%
23,078
4.97*
0
0.00%
21,095
4.557.
3,935
0.857
3,731
0.807.
1,011
0.227
1,057
0.237.
0
0.007
809
0.187
1,165
0.257.
26,587
5.737.
269
0.067
12,686
2.737
$4,410,963
100.007.
$510,734
100.007
$463,894
100.007.
17,248
6.747.
1,413
0.557.
2,482
0.977.
750
0.297.
1,047
0.417
0
0.007.
417
0.167.
802
0.317
18,771
7.337.
14
0.017
2,332
0.917
$488,708
100.007.
^his information has been supplied by the 12 Federal Home Loan Banks who advise that in a few instances reports for member institutions couldnotbe
obtained as of December 31, 1940, and that either estimates or "reports of some other date were used.
330
Federal Home Loan Bank Review
members of the Federal Home Loan Bank System as of Dec. 31, 1940 1
ratio of the item listed to total assets,
thousands of dollars]
Cincinnati
1
!
585
|
Indianapolis
Chicago
Des Moines
L i t t l e Rock
Topeka
Portland
Los Angeles
215
456
241
271
224
132
169
$119,710
77.65%
31
0.02%
873
0.57%
11,686
7.58%
3,806
2.47%
1,327
0.86%
3,496
2.27%
11,039
7.16%
1,643
1.06%
265
0.17%
289
0.19%
$265,152
85.85%
174,285
100.007
154,165
100.00%
308,874
100.00%
$11,364
6.527
132,546
76.05%
2,639
1.51%
0
0.00%
$19,773
12.83%
98,145
63.66%
502
0.33%
13,564
8.80%
$21,516
6.97%
124,884
40.43%
997
0.32%
104,300
33.77%
13,125
5.71%
22
0.01%
4,684
2.04%
9,640
5.53%
293
0.17%
2,058
1.18%
861
0.49%
918
0.53%
727
0.42%
656
0.387
447
0.26%
9,171
5.26%
25
0.01%
2,940
1.69%
7,474
4.85%
247
0.16%
3,349
2.17%
594
0.38%
383
0.25%
M74
0.76%
571
0.37%
206
0.13%
4,776
3.10%
44
0.03%
3,363
2.18%
16,891
5.47%
281
0.09%
10,507
3.40%
296
0.09%
688
0.22%
8,180
2.65%
1,380
0.45%
1,452
0.47%
10,862
3.52%
4
0.00%
6,636
2.15%
229,848
100.00%
174,285
100.00%
154,165
100.00%
$668,351
76.437
192
0.027
5,042
0.587
26,569
3.047
62,935
7.207
7,860
0.907
23,723
2.717
61,104
6.997
16,275
1.867
673
0.087
1,684
0.197
$197,750
69.477
138
0.057
778
0.277
37,327
13.117
15,222
5.357
3,126
1.107
6,604
2.327
18,780
6.607
4,383
1.547
320
0.117
219
0.087
$321,507
73.987
29
0.017
4,411
1.017
34,554
7.957
41,883
9.647
4,995
1.157
1,286
0.297
22,340
5.147
2,417
0.567
458
0.117
711
0.167
$193,310
83.797
39
0.017
1,145
0.507
8,636
3.747
10,888
4.727
2,695
1.177
1,087
0.477
10,794
4.687
1,101
0.487
253
0.117
763
0.337
$198,334
86.297
60
0.02%
1,164
0.517
4,080
1.787
8,253
3.597
2,083
0.91%
2,325
1.017
11,437
4.977
1,521
0.667
296
0.13%
295
0.137
$131,021
75.187
88
0.057
616
0.35%
12,484
7.16%
14,773
8.48%
1,752
1.01%
1,639
0.94%
8,431
4.84%
2,987
1.71%
248
0.14%
246
0.147
874,408
100.007
284,647
100.007
434,591
100.007
230,711
100.007
229,848
100.00%
$27,541
3.157
527,106
60.287
8,116
0.937
188,857
21.607
18,691
2.147
1,492
0.177
10,234
1.177
2,145
0.247
3,879
0.447
14,868
1.707
5,397
0.627
1,559
0.187
41,720
4.777
$26,926
6.207
312,397
71.887
13,800
3.187
0
0.007
29,647
6.827
2,669
0.617
8,159
1.887
2,771
0.647
3,541
0.817
0
0.007
2,829
0.657
1,101
0.257
24,742
5.707
41
0.01%
5,968
1.377
$18,717
8.117
172,068
74.587
4,536
1.977
0
0.007
19,014
8.247
168
0.077
3,156
1.377
450
0.207
912
0.397
I
0.007
354
0.157
388
0.177
7,681
3.337
42
0.027
3,224
1.407
$15,235
6.63%
177,550
77.25%
2,733
1.19%
0
0.00%
7,934
3.45%
1,318
0.57%
1,858
0.81%
1,460
0.63%
2,460
1.07%
772
0.34%
192
0.08%
505
0.22%
0.007
22,798
2.617
$11,111
3.907
230,213
80.887
1,906
0.67%
0
0.007
11,796
4.147
248
0.097
3,883
1.367
665
0.237
841
0.307
60
0.027
2,998
1.057
727
0.267
12,883
4.537
9
0.007
7,307
2.577
874,408
100.007
284,647
100.007
434,591
100.007
230,711
100.00%
i
168
0.06%
766
0.25%
8,581
2.78%
8,868
2.87%
3,130
1.01%
1,465
0.47%
16,877
5.46%
3,190
1.03%
458
0.15%
219
0.07%
|
1
j
308,874
100.00%
i n c l u d e s deferred charges, "other assets" accounts on i n d i v i d u a l statements, and various miscellaneous asset items p e c u l i a r t o only a few i n s t i t u t i o n s .
July 1941
331
TREND IN SELECTED BALANCE SHEET ACCOUNTS OF ALL MEMBER SAVINGS AND LOAN ASSOCIATIONS
UNITED STATES AND FEDERAL HOME LOAN BANK DISTRICTS; DEC. 31, 1939 -DEC. 31, 1940
PRIVATE INVESTMENTS
FIRST MORTGAGE LOANS
REAL ESTATE OWNED
PERCENT
5
10
INCREASE
15
20
25
-35
-30
PERCENT
-25
-20
DECREASE
-15
-10
-5
-0
PERCENT
5
10
INCREASE
15
20
UNITED STATES
I-BOSTON
2-NEW YORK
3-PITTSBURGH
4-WINSTON SALEM
5-CINCINNATI
6 " INDIANAPOLIS
7-CHICAGO
8-DES MOINES
9-LITTLE ROCK
10-TOPEKA
11-PORTLAND
12-LOS ANGELES
This chart presents graphically, by Federal Home Loan Bank Districts, changes in the most significant items in the combined member savings and loan balance
sheet at the close of 1940. The Winston-Salem region showed the largest gains in both first mortgage loans outstanding and private investments. Associations in the
Chicago Bank District registered the most substantial decline in their real-estate-owned account.
during the first few months of 1941 in line with
normal seasonal trends. There was a continued
repayment of funds borrowed from sources other
than the Federal Home Loan Banks, with a net
decline for the period of more than $1,000,000.
In addition to the changes in the reserve position
discussed below, one other movement in the liability
accounts is significant for its general influence of
borrowers' performances: advance payments by borrowers. This account has shown large increases during recent years as more and more associations are
making it possible for borrowers to accumulate
funds for their taxes and insurance premiums in
regular monthly installments along with principal and
interest payments. Almost $14,000,000 in advance
payments was held by member associations at the
end of 1940, most of which was for these purposes.
R E S E R V E POSITION SHOWS LITTLE CHANGE
Although the dollar volume of general reserves and
undivided profits w-as increased by almost $19,000,000
during 1940, this 7-percent rise did not keep pace
with the growth of total association resources. As a
result, the ratio of reserves to total assets showed
another fractional decline from 7.0 to 6.9 percent.
(The ratio at the end of 1938 was 7.1 percent.)
This trend may be explained largely through the
absorption of losses incurred during the year in the
liquidation of a substantial volume of real estate
owned. These operations, together with the rapid
rate of growth experienced by many institutions,
332
have made it difficult even to maintain the present
relationship of reserves to assets. The fact that
member associations have been able to do at least
this much is commendable.
Nevertheless, it is not possible to place too much
emphasis on the necessity for a constant improvement in reserve positions and a reversal of the
present downward trend. Associations are now
operating under favorable conditions of full employment, record national income payments, and an
active market for new and existing residential
properties. This is the period during which reserve
accumulations should be set aside to cope with the
economic consequences which may follow the present
boom. 1
I t is significant to note that the total amount of
reserves and undivided profits of member savings
and loan associations now exceeds the aggregate book
value of all real estate still owned by these institutions. At the end of 1940, there was $1.01 in the
reserve accounts for every $1 of real estate owned.
This compares quite favorably with the two previous
year-ends: in 1939 there were 76 cents of reserves
per $1 of real estate and in 1938 only 60 cents.
BALANCE SHEETS BY SIZE OF ASSOCIATION
This year, for the first time, the balance sheets
and operating statements of all member savings and
loan associations have been combined in nine different
1
For a more complete discussion of present-day reserve policies, see "Adequate
Loss Reserves—A Policy Problem," p. 210, April 1941 REVIEW.
Federal Home Loan Bank Review
asset-size groups. This detailed breakdown, made
possible through the cooperation of each Federal
Home Loan Bank, will make these statistical data
even more useful for individual associations. Especially will this be true when year-to-year comparisons
are available and the changes in each size group may
be studied.
The table below presents the percentage distribution of the balance-sheet items for each size classification. Marked differences because of the size of
association are apparent in only a few instances:
There is a tendency for the ratio of general reserves
and undivided profits to total assets to decrease as
the associations are larger in size. Holdings of Federal Home Loan Bank stock are also proportionately
smaller as the institutions increase in size. The proportion of total assets invested in office buildings
follows the opposite pattern—the smaller the association, the smaller the ratio of the office building
account to total resources.
Distribution of balance-sheet items for 3 , 8 1 8 savings and loan members by size of association
[As of December 31, 1940]
$10,000,000
and over
$5,000,000 to
$9,999,000
$2,500,000 to
$4,999,000
$1,000,000 to
$2,499,000
$500,000 to
$999,000
$250,000 to
$499,000
$100,000 to
$249,000
$50,000 to
$99,000
Balance-sheet item
Under $50,000
Asse t-size group
43
208
823
829
816
700
261
96
42
First mortgage loans (including interest Percent
75. 83
a n d advances)
Junior mortgage liens (interest a n d ad0. 24
vances)
0. 48
Other loans (including share loans)
4. 64
Real estate sold on contract
6.85
Real estate owned
2. 32
F H L B stock
Other investments (including accrued
1 0. 65
interest)
8. 57
Cash on hand and in Banks
0.06
Office building (net)
Furniture, fixtures, a n d equipment
!
0. 18
(net)
1 0. 18
Other assets
Percent
78.76
Percent
81. 02
Percent
80.47
Percent
78. 98
Percent
80.37
Percent
79. 75
Percent
77. 19
Percent
78.23
0. 85
1. 14
3. 11
7.89
1. 54
0.37
0. 90
3. 51
6.87
1.22
0.26
0. 83
3.53
7. 52
1. 11
0. 16
0. 70
4.56
7.90
1.07
0.06
0.56
3. 94
6.39
1. 01
0.04
0. 91
3.39
5.91
0. 96
0.
0.
4.
7.
0.
02
46
31
21
88
0.06
0.62
3. 13
6. 91
0.90
0. 40
5.60
0. 24
0.36
4. 97
0. 44
0. 75
4.64
0. 59
0.68
4. 86
0. 79
1. 12
5.33
0. 93
1.98
5. 76
0. 98
2. 53
5.69
1.43
2.08
6. 20
1.53
0. 07
0. 40
0. 10
0. 24
0. 11
0. 19
0. 11
0. 19
0. 12
0. 17
0. 11
0. 21
0.09
0. 19
0.07
0.27
100. 00
100. 00
100. 00
100. 00
100. 00
100. 00
100. 00
100. 00
100. 00
5. 47
70. 12
8. 45
0. 06
4. 11
0. 12
0.06
0. 42
0. 24
2. 62
0.48
0.53
5. 12
0.06
2. 14
4. 73
64. 68
10. 79
0. 00
5.61
0.78
0.49
0. 18
0. 76
0.24
0.32
0.48
7.81
0.03
3. 10
4. 72
68. 02
8. 12
0.92
5.97
0.84
0.71
0.24
0.53
0.38
0.35
0.27
6.26
0. 02
2.65
4. 58
69. 56
6. 54
2. 19
5.84
0.65
0.79
0.25
0.39
0.44
0.32
0.23
5.84
0. 01
2.37
6. 11
69. 05
4. 80
3.84
5.64
0.48
1. 08
0.30
0.36
0. 50
0.38
0.22
5. 11
0.01
2. 12
6. 50
69. 23
2.99
5. 54
5. 35
0. 44
1. 39
0. 34
0.44
0.59
0.36
0.20
4.39
0.01
2. 23
100. 00
100. 00
100. 00
100. 00
100. 00
100.00
N u m b e r of associations..
ASSETS
Total assets
L I A B I L I T I E S AND C A P I T A L
U. S. Government investment (shares
and deposits)
P r i v a t e repurchasable shares
Mortgage-pledged shares
Deposits a n d investment certificates
Advances from F H L B
Other borrowed money
Loans in process
Advance p a y m e n t s by borrowers
Other liabilities
P e r m a n e n t , reserve, or guaranty stock
Deferred credit t o future operations
Specific reserves
General reserves
Bonus on shares
Undivided profits
Total liabilities a n d capital
July 1941
5.32
67. 91
2. 99
8. 65
4. 23
0.23
1.65
0.32
0.48 1
0.84
0.37
0. 22
4. 57
0.01
2.21
100.00
3.54
71. 07
2.24
9. 21
3.04
0.41
1.77 .
0.37
0.45
0.48
0.49
0.23
4. 18
0.01
2.51
100. 00 1
2. 97
71.68
1. 50
10. 79
3. 33
0. 15
1. 58
0.25
0. 42
0. 53
0.33
0.21
3.34
0. 02
2.90
100. 00
333
REAL-ESTATE TAXES IN THE HOME OWNERS
BUDGET
A recent survey undertaken by the Home Owners' Loan Corporation
has for the first time uncovered broad data on the incidence of realestate taxation on home owners in the various States. The results of
this survey are of particular interest in view of present attempts to
bring about a reform of real-estate taxation.
m
R E D U C I N G the cost of housing has held the
center of discussion during the past few years
whenever housing problems have been touched.
Much emphasis has been placed on the fact that
too few American families can afford the type of
homes currently produced and that adequate housing as well as full recovery of the construction industry will fail to materialize as long as this condition
exists. This is a forceful and accurate statement
as far as it goes, but it may be questioned whether
the concept of low-cost housing has not been limited
too long to the initial outlays for construction,
revolving around the two elements of labor and
materials costs and the prospect of substantial
technical improvements.
To meet the need for low-priced homes it is not
sufficient to cut the initial cost down to a level corresponding to the average American's capacity to
pay. I t is equally important to make certain that
the home for the average family can be operated and
maintained from the owner's income. Any cut in
original building costs will, of course, presumably
reduce the current charges to the owner because
they will be based, for example, on a lower mortgage
loan and on a lower tax assessment (while in the case
of repairs, cheap construction may well result in
higher maintenance costs). However, to produce
maximum effects the problem of housing costs will
have to be attacked both from the point of view of
initial outlays and from the standpoint of monthly
carrying charges.
AN
HOLC
SURVEY
Among the current costs of home ownership,
financial charges have been largely reduced in recent years by the keen competition in the mortgage
market and by improvements in financing arrangements through various agencies of the Federal
Government. Monthly loan payments have been
lowered to a point where they conform more fully
334
with the average borrower's ability to pay. Of the
other component parts of operating costs, real estate
taxes have remained one of the most rigid items in
the home owner's budget and, in contrast to financing
charges, they have been raised considerably over the
past decade irrespective of property values.
This chart illustrates the proportion of gross rentals absorbed by real-estate
taxes for a representative number of properties managed by the HOLC and located in two States and two cities. Each pie represents annual gross rentals.
"Multifamily dwellings" denote houses with 2- to 4-family units.
Federal Home Loan Bank Review
What is the incidence of real-estate taxation on
home owners in the different States? The local
character of real-estate operation and taxation thus
far has precluded the collection of factual material
on a scale broad enough to permit a general picture.
A nation-wide survey by the Home Owners' Loan
Corporation (one of the largest real-estate taxpayers
in the country) has now thrown some light on this
question. This Corporation is in the unique position of operating over the whole Nation, and its loan
and property volume is so large that its experience
may be regarded as typical, at least as far as older
1- to 4-family houses are concerned. The HOLC
has therefore become a veritable laboratory where
the problems of individual home owners can be seen
and analyzed in the light of mass experience.
T A X E S RELATED TO FINANCIAL CHARGES
As one measure of the importance of real estate
taxation in the home owner's budget, the HOLC
through its regional offices has established the ratio
of the real estate tax on borrowers' properties to the
total financial charges including interest and repayment of principal. Some time ago the Corporation
made arrangements by which its borrowers might
make monthly installment payments on taxes and
insurance to avoid the hazards of lump sum annual
payments. More than 400,000 accounts have been
set up on this basis. An analysis of these accounts
covering a period corresponding roughly to the calendar year 1940 shows the results summarized in
Table l. 1
For the United States as a whole, the average
monthly tax installment represents about 33 percent of the average monthly loan payment. However, in four States real estate taxes are equivalent
to 50 percent or more, and in an additional 12 States
they constitute between two-fifths and one-half, of the
loan payment. If the tax bill is related to interest
alone, the average tax is equal to about 80 percent
of the interest portion of the regular loan payment,
and there are 10 States where it actually exceeds the
total interest charges to the borrower.
These findings have an important bearing not only
on the cost of home ownership as such but also on
the financial structure supporting home ownership.
A heavy tax load is, of course, a serious handicap to
the borrower's ability to meet his loan obligations,
and the home owner may feel less incentive to
1
The proportion of insurance in the monthly tax and insurance payments normally is not more than one-tenth to one-fifth. Hence the figures in this section
and in Table 1 reflect primarily the tax burden.
July 1941
Table T.—Ratio of fax and insurance monthly
installments to monthly loan payments
(interest and principal), by States
Percent
State
0-10
Alabama
Arizona
Arkansas
California
Colorado
.
__
...
30-40
40-50 50-601 70-80
X
X
X
X
X
X
X
X
X
.
X
X
.
X
X
X
Kentucky . _.
Louisiana
Maine
Maryland _
Massachusetts ___
X
X
X
X
X
Michigan.
.
Minnesota
Mississippi _ _
Missouri
Montana. . . . _ _ . _ .
Nebraska
N e v a d a . . .__ _
New Hampshire...
New Jersey.., ._
New Mexico
X
X
X
X
X
X
X
. ._
X
X
X
New York
_ ...
North C a r o l i n a . . .
North Dakota . .
Ohio
Oklahoma
.
x
X
X
X
X
Oregon
Pennsylvania
Rhode Island. . . . . . . _
South Carolina
South Dakota . _ _ . . .
Tennessee
Texas...
Utah
Vermont
Virginia
X
X
X
X
X
X
X
X
..
..
Washington
West Virginia
Wisconsin
Wyoming
1
20-30
X
Connecticut _._
District of Columbia
Delaware
Florida
Georgia
Idaho
Illinois
Indiana
Iowa
Kansas
10-20
X
X
X
._
X
X
X
No State reported ratios from 60-70 percent.
liquidate his indebtedness if he knows that he will
still be left with an excessive tax burden when the
mortgage loan is paid off.
T A X LOAD COMPARED W I T H ORIGINAL
MORTGAGE LOAN
As another measure of the incidence of real estate
taxation, the average annual tax bill on HOLC borrowers' properties was related to the average original
mortgage loan made by the Corporation. A direct
comparison of the tax payments in the various States
is of course irrelevant unless consideration is given
to differences in the value of properties in the indi-
335
vidual States. As market values were difficult to
ascertain, the average annual tax was compared with
the average original loan amount as the best common
denominator of "value" available.
In an evaluation of the results of this comparison
it will be well to keep in mind that HOLC loans were
made in the emergency period from 1933 to 1936 and
were permitted to be equal to 80 percent of liberal
appraisals. They were intended to be generous and
may have frequently approached or sometimes exceeded market values at that time. Meanwhile market prices for old properties generally have been on
the decline. The figures presented in Table 2, therefore, understate rather than overstate the annual tax
in relation to present property values.
Table 2.—Ratio of average annual tax to average
original loan amount, by States
Percent
State
0-1
Alabama
Arizona
Arkansas
California
_
_
1-2
2-3
3-4
4-5
5-6
__
X
X
X
X
X
X
X
J
.
_. ___
-
.
_.
X
X
x
X
X
X
X
X
..
Percent
Percent
7.41
5.80
5.70
5.32
5. 17
4.72
4.32
3.81
3.78
3.70
3.69
3.63
3.59
2.97
2.53
2. 23
2. 21
2. 19
2. 04
2.03
2.00
1.89
26.6
27.9
39. 1
32. 1
45. 6
36. 7
55. 1
33.3
86.0
74. 1
74.8
91.0
88.0
89.4
82.5
92.6
96.3
86.0
98.3
94.5
87.0
97.4
X
X
X
TAXATION, FORECLOSURES, AND PROPERTY SALES
X
Nebraska.. _
Nevada
New Hampshire.
New Jer sey
New Mexico.
X
X
X
X
..
New York
North Carolina
North Dakota
Ohio
Oklahoma
X
X
X
. ..
X
X
X
.
X
X
X
_
X
X
Tennessee..
Texas
Utah
Vermont _
Virginia
X
X
X
X
'X
._
...
X
X
X
X
Percentage of
HOLC sales
to properties
acquired
For the country as a whole, the average annual
taxes of Home Owners' Loan Corporation borrowers
represent about 2.7 percent of the average amount of
original loans. Again the various States show substantial differences in the relative tax burden. In
not less than eight States the ratio of the annual tax
bill to the original mortgage loan is 4 percent or
more, and in 12 additional States the ratio ranges
from 3 to 4 percent. Only in 16 States is the average annual tax less than 2 percent of the average
original loan made by the HOLC.
X
Kentucky
Louisiana
Maine
Maryland. _
Massachusetts
336
Jersey City
Newark
Rochester
Buffalo
Boston
Brooklyn (N. Y.)
Bronx "(N. Y.).._„
Queens (N. Y.)_„
New Orleans
Milwaukee
Pittsburgh
St. Paul
Minneapolis
Fort Worth
Indianapolis
Dallas
Atlanta
Tulsa
Salt Lake City__.
Oklahoma City...
Cleveland
San Francisco
Taxes as a
percent of
sales prices
X
X
Idaho
Illinois
Indiana...
Iowa
Kansas
Washington
West Virginia
Wisconsin .
City
X
X
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
[Based on sales during the first six months of 1940J
X
Connecticut
District of Columbia
Delaware
Florida
_
Georgia
Michigan
Minnesota
Mississippi
Missouri.
Montana
Table 3.—Actual tax rates and H O L C property
sales in selected cities
A third result of the HOLC survey gives some insight into the relationship between property acquisitions and sales, on the one hand, and the tax
burden on the other. There are, of course, many
elements influencing the soundness of home-mortgage
loans and of the real estate market, and it is impossible to single out taxes as the determining factor
in HOLC property operations. However, it is
probably more than a coincidence that the HOLC
from the beginning of operation to date has had a
smaller percentage of foreclosures and a better sales
experience in those areas where the average realestate taxes are on a reasonable level. If the States
are classified in four equal groups according to the
average tax burden, the following picture is obtained.
Federal Home Loan Bank Review
TAX LOAD COMPARED WITH PROPERTY ACQUISITIONS AND SALES
BY GROUPS OF STATES
RATIO OF ANNUAL TAX BILL
TO ORIGINAL LOAN
FIRST
SECOND
THIRD
FOURTH
RATIO OF PROPERTY ACQUISITIONS
TO LOANS CLOSED
FIRST
SECOND
THIRD
FOURTH
100
RATIO OF PROPERTY SALES
TO ACQUISITIONS
FIRST
SECOND
THIRD
FOURTH
In the above chart, the 48 States are divided into four equal groups according to the relative tax load, which is expressed as the ratio of annual taxes to the original
mortgage loan (left-hand box). This ratio is compared, for the same groups of States, with the ratio of HOLC property acquisitions to loans closed (center box) and with
the ratio of property sales to acquisitions (right-hand box).
While these results are not entirely consistent they
show by and large that in States in which home
owners are heavily taxed comparatively more loans
had to be foreclosed than in States having a lighter
tax load. On the other hand, the volume of sales in
relation to the number of properties acquired was
higher in the States where reasonable tax levels prevailed. This is confirmed by a study of 24 individual
cities as shown in Table 3.
Other findings which are based on HOLC material
relate the annual tax burden to the gross income
from properties managed by the Corporation. The
examples illustrated in the chart on page 334 are taken
from areas where the HOLC has sufficient concentration of property holdings to warrant reasonable
general observation. They demonstrate that in the
States of New York and New Jersey approximately
one-third of the annual gross income from singlefamily houses is absorbed by the annual real-estate
tax bill, while the tax load on other types of residential properties appears to be somewhat lower.
In Chicago and Kansas City, Missouri, one-fifth and
one-fourth, respectively, of the gross rentals go to
pay for the tax bill.
M E T H O D OF PAYMENT
In addition to the statistical material on the
incidence of real-estate taxation, the HOLC survey
sought to obtain facts as to the methods of payment
prescribed and used in the various States. From
the returns it appears that tax authorities make little
effort to accommodate the taxpayer by spreading the
July 1941
326911—41-
annual taxes over a number of installments. The
annual lump sum payment is still the most common
and prevails in 27 States. Quarterly payments are
made in only a few States. However, in many
jurisdictions the tax collector will accept part payments at any time regardless of the legal provisions
as to the time and period of payment.
Likewise, the taxpayer is rarely given the opportunity to make deposits in order to accumulate funds
for taxes. During the depression several jurisdictions designed "tax-book" plans mainly for payment of delinquent taxes; under these plans, the
taxpayer was permitted to deposit any sums to be
applied to his tax bill, and when the pass book
evidenced that the full amount of the tax had been
accumulated, the book was surrendered for a tax
receipt. However, such plans have largely been
abandoned. I t seems that Baltimore City is one of
the few places where the tax book has had continued
use.
To bridge the gap between the annual tax payment in a lump sum, as required in most jurisdictions,
and the monthly or weekly income payment received
by the overwhelming majority of home owners, an
increasing number of financial institutions is arranging for the monthly collection of tax accruals together
with the periodical collection of loan payments.
Under this procedure, the borrower is paying his
loan installments as well as the pro-rata tax and
insurance charges in one amount each month. In
this fashion, the perils of tax delinquency are being
removed at least in part.
337
SAVINGS AND HOME-FINANCING OPERATIONS
OF BANKS DURING 1940
Insured commercial banks during 1940 added close to
$300,000,000
to their residential mortgage-loan portfolio. This was accompanied
by a 25-percent reduction in their residential real-estate overhang.
Their savings deposits showed an appreciable growth. In contrast,
the mortgage, real-estate, and deposit accounts of mutual savings
banks revealed little change during the past year.
•
C O M M E R C I A L banks, insurance companies,
and mutual savings banks represent the most
important institutional lenders on home mortgages
next to savings and loan associations. At the same
time, these types of financial institutions are among
the great reservoirs of thrift to which the overwhelming proportion of the savings of the people is
entrusted. Observation of current mortgage-lending and savings operations of banks and insurance
companies helps, therefore, to obtain a broad picture
of trends in these fields which are of such paramount
interest to savings and loan executives.
Following the analysis of 1940 operations of life
insurance companies in the M a y issue, this article
takes up significant trends in the mortgage loan,
real-estate, and savings-deposit accounts of commercial banks and mutual savings banks. The
changes revealed in these accounts may be brought
into sharper relief by reference to the 1940 trends in
the combined balance sheet of savings and loan
members of the Bank System, likewise analyzed in
this issue (page 327).
Insured commercial banks enlarged their residential mortgage-loan portfolio by $285,842,000, or 11
percent, during 1940—a much greater gain than in
1939 when the increase was only 7.5 percent. Mortgage loans on residential properties held by these
institutions at the end of 1940 reached an aggregate
of $2,883,000,000. On a "per bank" basis, the
THRIFT AND HOME-FINANCING OPERATIONS OF
INSURED COMMERCIAL BANKS IN 1940
BY FEDERAL HOME LOAN BANK DISTRICTS
0
PERCENT INCREASE 1939-1940
8
12
16
20
4
IN
THE
MORTGAGE
MERCIAL
PORTFOLIO
OF
t-.-.-.v.-.vl RESIDENTIAL MORTGAGE
LiiiiJ
HOLDINGS
2 - NEW YORK
3-PITTSBURGH
•^'•VNV-V:^ : ::::'::V-SV:|
^ 1 1
0.25%
SAVINGS DEPOSITS
H
mm
4 - W I N S T O N SALEM
5-CINCINNATI
:
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6-INDIANAPOLIS
&:.::*1
COM-
BANKS
m&*mmzwmm
8 - D E S MOINES
;
Closely paralleling developments in the savings
and loan membership, operations of commercial
banks last year reflected a continued ample flow of
long-term savings, a highly active mortgage market,
and a considerably improved real estate situation.
This is evident from the consolidated statement of
condition for all insured commercial banks for 1940,
which has recentry been released by the Federal
Deposit Insurance Corporation; and since the 13,438
insured banks represent 94 percent of all commercial
banks in the United States, their activities may be
regarded as indicative of commercial bank operations
in these fields.
338
28
1 - BOSTON
7-CHICAGO
GROWTH
24
9-LITTLE
ROCK
;
:
w^ -: ::' ;'v-v: : :V/:^:: : ^
•v^:-i^-'/:V^V/::V:'-}::}::^:'-/^--'-v::-^>;.|
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UNITED
STATES
;;
-:
;;:
^^:-' ' '':'- :-^:-- :-:-s^-v':v^-Vv'-" . . -/|
•••
Source:- Federal De x>sit Insurance Corporation
There were marked regional differences in trends of thrift and home-financing
operations of insured commercial banks during 1940. Percent increases in residential-mortgage holdings varied between almost 27 percent in the Chicago District and 4 percent in the Boston area. Gains in savings deposits ranged from
almost 10 percent in the Indianapolis region to one-fourth of 1 percent in the
Pittsburgh District.
Federal Home Loan Bank Review
increment during last year was $22,600, and the
average bank portfolio at the year-end contained
residential mortgages in the amount of $214,530.
An analysis by Federal Home Loan Bank Districts reveals considerable regional differences. The
largest percentage growth in the residential mortgage
portfolio was exhibited by insured commercial banks
in the Chicago and Indianapolis regions (27 and 19
percent, respectively), while the Los Angeles area
showed the largest dollar gain—$78,622,000. On
the other hand, banks in the Boston region added
less than 4 percent to their residential mortgage
holdings, the smallest relative increase in any Bank
District.
Basic differences in bank policies as well as differences in local economic conditions and in the rate of
residential construction are indicated by the ratio
the amount of mortgage loans bears to the institutions' total assets and total loans. Compared with
the national averages in which residential mortgages
comprise 16 percent of total loans and little over 4
percent of total assets, the Los Angeles District
showed the greatest variance. Residential-mortgage holdings were over 36 percent of total loans and
almost 14 percent of total bank assets in this region
where commercial banks have long held an unusually
important position in the mortgage-financing field.
At the end of 1940, as much as one-fourth of the
total residential mortgage portfolio of all insured
commercial banks was concentrated in this District.
The smallest ratios of residential mortgages to
total loans and aggregate assets were found in the
Topeka, Little Rock, and New York Districts. In
these regions, insured commercial banks held less
than 2 percent of their combined resources, and only
6 to 9 percent of their total loans, in the form of
mortgages on residential property.
REDUCTION
OF THE R E A L - E S T A T E
25 PERCENT
OVERHANG BY
Again in consonance with similar trends in the
savings and loan industry, insured commercial banks
liquidated a good portion of their total residential
real-estate holdings during 1940. The residential
property owned by them at the end of the year aggregated $139,318,000, as a result of a net decline of
$43,374,000, or nearly one-fourth, during the 12month period. On a "per institution" basis, the
average volume of residential real estate owned
dropped from $16,400 at the end of 1939 to $10,400
at the close of 1940. The downward trend was alJuly 1941
Kesidential real-estate holdings of insured commercial banks, like those of other
financial institutions, are heavily concentrated along the Eastern Seaboard. The
Federal Home Loan Bank Districts of Boston, New York and Pittsburgh account
for over three-fourths of the residential property owned by insured banks.
most universal throughout the country; Iowa and
Nevada, both with small holdings, were the only
States which registered increases.
Despite this general decline of the real-estate overhang, holdings of residential properties by insured
banks remained heavily concentrated in the Boston,
New York, and Pittsburgh Districts. These three
regions accounted for not less than three-fourths of
the total real estate owned by all insured banks. In
the remaining areas the overhang has now reached
more normal proportions.
SAVINGS DEPOSITS IN RELATION TO TOTAL DEPOSITS
Insured commercial banks added almost $440,000,000 to their savings deposits x during 1940—•
about the same amount as in the preceding year but
somewhat less on a 'percentage basis—(3.5 percent
compared with 4.4 percent). All in all the public
had invested $13,062,315,000 in savings accounts
with these banks at the end of 1940, or almost one
million dollars per institution. The largest dollar
and percentage growth was registered by insured
commercial banks in the Indianapolis District, with
the Los Angeles area holding second place in terms
1
The savings deposit figures used in this article refer to the time deposits of
individuals, partnerships, and corporations as evidenced by savings passbooks.
They exclude certificates of deposit, Christmas savings and similar accounts, and
open accounts.
339
of dollar gains. The smallest increase, both dollarand percentage-wise, was in the Pittsburgh region.
Of course, savings deposits constitute only one
portion of the vast amounts held by commercial
banks in the form of deposits. Although the demarcation line between time deposits and demand
deposits may not be all-too-significant, it is still
worth noting that at the end of 1940 savings deposits
comprised only little over 20 percent of the total deposits in insured commercial banks. Again there are
some considerable regional differences in the ratio of
savings deposits to total deposits. The highest ratios
were reported in the Los Angeles Jand Indianapolis
Districts (40 and 33 percent, respectively), and it is
probably more than a coincidence that the same
areas showed the highest ratios of long-term mortgage loans to the total loan portfolio and to aggregate assets. These high ratios are in sharp contrast
to the situation found in the New York and Little
Rock Districts where savings deposits represented
only 11 and 13 percent, respectively, of the aggregate deposits held by insured commercial banks.
STABILITY IN M U T U A L SAVINGS B A N K OPERATIONS
Compared with commercial banks, mutual savings
banks during 1940 showed a more static picture in
their mortgage and real-estate accounts. This may
be explained in part by the geographic concentration
of these institutions in New York, New Jersey, and
the New England States—in brief, in a region where
the rate of residential construction and the recovery
of the real-estate market have until recently been
lagging behind the rest of the country.
Available consolidated reports for mutual savings
banks do not distinguish between residential and
other property in mortgage-loan and real-estate accounts. The following data refer, therefore, to total
mortgage and real-estate holdings and are not directly comparable with the commercial bank figures.
The mortgage portfolio of mutual savings banks
increased only negligibly—less than one-half of one
percent—during 1940. At the end of the year,
these institutions held $4,836,322,000 in mortgage
loans on real estate, 95 percent of which was on the
books of mutual savings banks in the Boston and
New York Districts.
Although many mutual savings banks have made
vigorous efforts to dispose of their real estate, the
liquidation of their property holdings continued at a
relatively slow pace which again may reflect in part
the real-estate situation along the Eastern Seaboard
in which the greater portion of mutual savings
340
Residential mortgage holdings and savings deposits of insured commercial banks, 1940
[Amounts are shown in thousands of dollars]
Residential mortgage
loans
Federal H o m e L o a n B a n k
District and State
U N I T E D STATES
N o . 1—Boston
Connecticut
Maine
Massachusetts
_._
New Hampshire
R h o d e I s l a n d _. _
V e r m o n t . ___
_.
N o . 2—New Y o r k
N e w Jersey
New York
...
Savings deposits
December
31, 1940
Increase
during
1940
$2, 882, 841
$285,842 $13,062, 315
December
31, 1940
Increase
during
1940
$439,990
220, 072
8,387
845, 929
11, 895
56, 414
14, 700
95, 988
7,523
22, 504
22, 943
4,287
442
1,652
372
1,505
3,139
169, 048
106, 518
365, 073
29,166
97, 017
79,107
7,955
599
1,472
190
456
1,223
429, 838
28,044
2,460, 354
44,917
191, 724
238,114
19, 798
8,246
881, 378
1, 578, 976
23, 702
21, 215
337, 763
18, 581
1, 594, 004
3,927
Delaware.. ..
Pennsylvania-..
W e s t Virginia
11, 251
292, 643
33, 869
281
15, 974
2,326
38. 021
1,446,105
109, 878
1,134
1,124
3,917
N o . 4—Winston-Salem
198, 823
25, 888
942, 849
49, 472
12, 221
37,900
14,915
23,110
38, 067
13,951
5,480
53,179
1,852
5,241
1,959
2,387
4,776
1,611
1,127
6,935
93, 256
110, 637
79,904
104, 395
191, 522
90, 305
30, 285
242, 545
5,883
5,844
6,075
6,172
5,468
6,200
2,255
11, 575
No. 3—Pittsburgh
A l a b a m a . . . . . . ._
D i s t r i c t of C o l u m b i a
Florida
Georgia
Maryland
N o r t h Carolina
South Carolina.
Virginia
287, 749
15,166
1,133, 264
35,186
Kentucky
Ohio
Tennessee
27, 070
242, 617
18,062
3,236
16, 806
1, 596
99, 453
902, 964
130, 847
439
31, 307
4,318
N o . 6—Indianapolis....
220,074
35, 322
963,009
83, 750
Indiana...
M ichigan
85, 576
134, 498
15, 036
20, 286
257, 701
705, 308
16,158
67, 592
164, 738
34, 872
1, 372,402
64, 046
104, 572
60,166
22, 078
12, 794
972, 643
399, 759
45, 479
18. 567
146, 245
19, 808
652,364
25, 769
37, 593
36, 427
65, 280
2,449
4,496
6,850
7, 025
4,874
491
568
147,028
230,187
241, 760
16, 571
16, 818
9,843
3,949
9,948
863
1,166
N o . 9—Little Rock
58, 764
7,729
364, 830
13,032
Arkansas
Louisiana
Mississippi.
N e w Mexico
Texas
6,622
17, 033
7,747
3,133
24, 229
880
4,220
1,104
449
1,076
36, 725
96, 387
50, 767
11, 285
169, 666
2,014
4, 518
3,077
1,170
2,253
32, 518
3,853
1, 281
1,276
403
893
209, 234
87, 609
38, 886
33, 577
49,162
3,829
2,417
1,925
1,348
1,861
9,587
2,163
781
194
1,835
4,184
430
413,049
26, 687
32,422
112,840
60, 819
160, 826
19,455
24, 845
6,620
3,437
9,906
15, 543
24, 679
2,866
721, 505
9,412
707,063
5,030
78, 622
2,148
75, 466
1,008
2,106, 516
28, 520
2, 061. 450
16, 546
78, 779
1,211
75,900
1,668
1,701
17
4,511
543
N o . 5—Cincinnati
N o . 7—Chicago
Illinois
Wisconsin
N o . 8—Des M o i n e s
Iowa
Minnesota
Missouri
North Dakota
South Dakota
.
N o . 10—Topeka
Colorado
10, 616
10, 464
3,995
7,443
Nebraska. . . .
Oklahoma..
63, 051
N o . 11—Portland
Idaho
Montana
Oregon
Utah
Washington
Wyoming
...
N o . 12—Los Angeles _.
Arizona..
California
Nevada...
Possessions
.
...
2,536
492
7,314
2,606
10, 506
1,391
Federal Home Loan Bank Review
bank holdings is concentrated. A net reduction of
7 percent during 1940 brought the real-estate account of all mutual savings banks down to $562,169,000 at the end of the 12-month period.
Deposits in mutual savings banks increased
$137,000,000, or over 1 percent, to a total of
$10,617,759,000 at the end of the year. A geographic breakdown shows that in none of the nine
Federal Home Loan Bank Districts in which mutual
savings banks operate did the growth of deposits
exceed 6 percent, with the smallest gain in the
Boston area.
The concentration of mutual savings banks is
reflected in the fact that almost 90 percent of the
total deposits is held by institutions in the Boston
and New York Districts, another 6 percent by
mutual savings banks in the Pittsburgh area, and
the remainder scattered over several States of which
only Maryland, Ohio, Minnesota, and Washington
show any appreciable deposits in this type of institution.
Savings and Loan Accounts Affected by Executive Order
Freezing Foreign Accounts
•
ON June 14, the President of the United
States, by Executive Order, froze all German and Italian assets in this country as well as
the assets of all invaded or occupied European
countries not previously frozen. Included in
this order are "all payments by or to any banking institution within the United States."
Word has been received from the Treasury
Department that savings and loan associations
are " banking institutions'' within the Executive
Order definition. Under this interpretation,
transactions in the accounts of members who
are " nationals" of any of the countries specified
are restricted.
The foreign countries and their "nationals''
covered by the provisions of the Order of June
14 and previous Orders include: Albania,
Andorra, Austria, Belgium, Bulgaria, Czechoslovakia, Danzig, Denmark, Estonia, Finland,
France, Germany, Greece, Hungary, Italy,
Latvia, Liechtenstein, Lithuania, Luxembourg,
The Netherlands, Norway, Poland, Portugal,
Rumania, Russia, San Marino, Spain, Sweden,
Switzerland, and Yugoslavia. Exceptions have
been made in the application of this Order to
certain of these countries and to certain
"nationals" through the medium of general
licenses issued under the authority of the
Secretary of the Treasury.
Associations may direct specific inquiries for
details either to the Treasury Department, to
the nearest Federal Reserve Bank, or to their
own Federal Home Loan Bank.
Savings and Loan Associations A i d
Defense Housing
(Continued from p. 324)
and in excess of the number of publicly financed
housing units under construction contract.
If a like estimate is made for all communities
which ha^e received defense contracts, we find
120,000 new units were permanently financed by
savings and loan members from July 1940 through
April 1941.
With the usual upswing of lending activity in the
spring, with the transition of numerous projects
from the blueprint stage to actual construction, and
with the liberalizing measures recently taken by the
Bank Board 1 coming into full play, the loan volume
of member associations in defense communities will
undoubtedly reach record levels during the current
building season.
Appointment of Federal Home Loan
Bank Director
1
See June REVIEW, page 287.
EDITOR'S NOTE: The estimate of new family units financed by member savings
and loan institutions was derived from association reports which include statistics 6"n the number of loans made. Each loan usually is equivalent to one
dwelling. To obtain the number of family units, these figures had to be adjusted
since savings and loan associations are financing 2-, 3-, and multi-family dwellings
in addition to single-family houses. A factor of 1.25, based onHOLC experience,
was used in computing the number of dwelling units. To this was added onefifth of home-purchase loans, since many associations report the first permanent
financing of a new dwelling as a "home-purchase'' mortgage, if the loan is made
to an individual purchaser immediately after construction.
July 1941
•
T H E Federal Home Loan Bank of Chicago
recently announced the appointment of Mr.
Philip Kinzer as a Public-Interest Director for the
unexpired portion of a 4-year term ending December
31, 1942. Mr. Kinzer is a resident of Milwaukee,
Wisconsin, and is a Vice President and director of
the Carnation Milk Company.
341
RESIDENTIAL
BUILDING
INDEX
ACTIVITY
BY YEARS
300
AND SELECTED INFLUENCING
1935-1939 = 100
FACTORS
BY MONTHS
250
200
-:
(I)
RESIDENTIAL
CONSTRUCTION^
150
-
/ A
^
1
100 \
i
i
^
^s*S£**Z
80
j p '".T
xh BUILDING
X
1
IV-^k
60
1
1 (5) S
FORECLOSURES*
(ALL NONFARM)
SVGS.
a
LOAN
L.ENDIfi jG(&
50 [
MATERIAL
Pf?ir.F<i(3)
\A
\T
70
&&L&
n t
1 ^-.-2
!.<*•••" if fi i
***&*'
90
ARENTS{2)
/
PAYMENTS(4)%*\
INCOME
40
30
20
10
SOURCE : (1)
(2)
(3)
(4)
(5)
(6)
1930
M.LL,oNsLOANS
'31
'32
FEDERAL HOME _OAN
NATIONAL INDUSTRIAL
U. S. DEPARTMENT OF
U. S. DEPARTMENT OF
FEDERAL HOME LOAN
FEDERAL HOME LOAN
'33
'34
BANK BOA RD (U. S Departnlent of L abor rec ards)
CONFERENCE BOARD
LABQR
COMMERCE
BANK BOARD
BANK BOARD
j
.
i
,
'35
'36
BY ALL SAVINGS 6 LOAN ASSNS.
'37
M LLI0NS
'
'38
'39
'40
'41
1939
F.H.L.B. ADVANCES OUTSTANDING
1940
1941
""-L.ONS MORTGAGE RECORDINGS-ALL LENDERS
$500r
FEB.
"*>EX COST OF STANDARD SIX-ROOM HOUSE
INDEX
M A R APR. MAY
WHOLESALE
JUN. JUL. AUG. S E P
COMMODITY
OCT. NOV. DEC.
PRICES
JAN.
FEB. MAR. APR. MAY
J U N . J U L . AUG. S E P
OCT. NOV. DEC.
MANUFACTURING PAYROLLS
I50r
1935-193 9 = 100
r
95 WA
342
L*4' i l n h j -
1
• i 1 i i i . iki^-
Federal Home Loan Bank Review
fC
«
fi
ONTHLY
S U R V E Y
»
>> >>
Highlights
/. New peaks in almost every line of business activfty were reached in May.
A. Approaching boom conditions were indicated by a record-breaking volume of industrial output, an 11-year high of freight
carloadings, and a further expansion of consumer purchases.
B. Prices climbed steadily upward and reached in June a level 16 percent above August 1939, just prior to the outbreak of war.
//. The 9-percent decline in total permits for new urban dwelling units issued during May was in sharp contrast to the usual 4-percent rise
from April to May.
A. The drop was due entirely to the smaller number of permits for public projects: 3,600 in May as against 8,500 in April.
B. Private construction, on the other hand, showed small gains primarily in the multifamily classification.
III. A highly active mortgage market was reflected in May data on lending operations.
A. The volume of new mortgage loans made by all operating savings and loan associations jumped 9 percent from April to almost
$131,000,000.
B. Mortgage recordings of $20,000
or less during May totaled nearly $436,000,000—up
9 percent from April.
Three-fifths
of this increase was registered in the Boston, New York, and Pittsburgh Districts—all highly important defense areas.
However, the cumulative increase during the past year has been substantial enough
IV. Building costs moved but slowly upward in May.
to cause concern.
A. The June index of wholesale building material prices as well as the cost of building the standard house stood about 9 percent
above the level of a year ago.
B. Of the 29 communities currently reporting the costs involved in the construction of the 6-room standard house, 14 reported
price increases of more than $500 since June of last year.
Summary
•
SUCCESSIVE peaks in business activity have
been reached during 1941 as a result of feverish
efforts in supplying armaments and other implements
of national defense. Recovering from a temporary
set-back that occurred as a result of the extensive
series of strikes in April, the Federal Reserve Board's
index of industrial production climbed in May to
149—by far the greatest volume of business recorded
for any one month in American business history.
The need for additional employees in defense
industries has been aggravated beyond all previous
expectations by the intensity of the industrial expansion which has occurred since last autumn, and a
widespread migration of workers and their families
to areas of concentrated activity has inevitably
developed. The social and economic implications
of this population shift are numerous. Adequate
housing of a reasonable standard and cost must be
provided in order to obtain maximum efficiency
from employees in these industries; public utilities
and commercial establishments must be expanded;
and additional educational and recreational facilities
become necessary.
The combined effect of the general recovery in the
housing market and the pressing need of accommodations for defense workers is indicated by the
fact that during the January-May period of this
July 1941
year 152,000 dwelling units have been provided in
urban areas through private financing channels, or
15 percent more than during the same 1940 period.
Another 24,000 units were placed under construction
under the auspices of Government housing agencies
during the 5-month period.
The part that savings and loan associations are
playing in relieving the shortage of housing facilities
in defense areas and in supplying normal demands
for new homes is discussed in the article appearing
on page 322 of this issue. Although a segregation
of loans made during the month of May between
defense housing and other areas is not yet available,
the extremely rapid increase over April in lending
activity of all savings and loan associations indicates
that the effect of emergency needs on financing
[1935-1939=100]
T y p e of index
Residential construction i
Foreclosures (nonfarm) i
R e n t a l index ( N I C B )
B u i l d i n g material prices
Savings a n d loan lending i___
Industrial production i
Manufacturing employment l
M a n u f a c t u r i n g p a y rolls l
May
1941
176.2
38.3
107.9
112.1
173. 2
v 149.0
128.6
164.2
Apr.
1941
Percent
change
' 203.3 - 1 3 . 3
41.1
-6.8
107.6
+0.3
+0.3
111.8
+5.9
163.6
' 140.0 + 6 . 4
' 125. 7 + 2 . 3
' 155.4 + 5 . 7
May
1940
156.7
50.9
106.3
103.3
151.5
114.0
105.8
113.1
Percent
change
+12.4
-24.8
+1.5
+8.5
+ 14.3
+30.7
+21.6
+45.2
T preliminary.
r revised.
Adjusted for n o r m a l seasonal v a r i a t i o n .
1
343
operations of these institutions is cumulative in
nature. Construction, home-purchase, and refinancing loans each contributed substantially to the rise
of 9 percent in total lending activity.
The month of May marked a new post-depression
peak of $436,000,000 in nonfarm mortgage recordings, and each of the types of lending institutions
as well as individual lenders showed the highest
levels attained since detailed recording statistics
were first collected in January 1939.
Loans to business by commercial banks as a
result of the defense program continued to expand.
The total gain during the first five months of 1941
amounted to approximately $650,000,000. This
activity, and other factors such as a smaller inflow
of gold and increased Treasury borrowing, has helped
to reduce excess reserves by more than $800,000,000.
However, as it has been pointed out, excess reserves
still exceed $5,800,000,000—an amount so large that
any practicable reduction over future months can
have little or no influence on interest rates.
General Business Conditions
•
T H R O W I N G off the shackles of managementlabor conflicts which brought about during April
the first pause in industrial expansion in more than a
year, the American economy jumped back into high
gear in May and established several new activity
peaks. The Federal Reserve index of industrial
production soared nine points to a new all-time high
of 149 (1935-1939=100), as compared with 140 in
April and 143 in March.
Freight carlo adings which reflect the combined
activity of industry, commerce, and agriculture,
reached an 11-year high during the week of May 24
when 866,000 car shipments were handled. Economists point to the fact that this volume is not far
below the capacity of railroads on the basis of the
facilities now available and the most efficient operations heretofore achieved. The problem of transportation will become more acute with the approach
of the autumn season of peak traffic demands.
The stimulus of basic industrial expansion on the
volume of consumer purchases is clearly shown in
recent movements of retail sales. In spite of the
highest monthly production of automobiles since
1930, May sales to customers exceeded this volume
and cut further into dealers' stocks. The Department of Commerce reports that among household
goods, such electrical appliances as refrigerators,
ironers, ranges, and washers have been in heavier
demand than ever before.
Information on imports and exports has been
somewhat restricted, but April data recently released
show that the in- and out-flow of goods during that
month were at the highest rate since the war began.
The $376,000,000 of exports consisted primarily of
manufactured products useful in waging war; the
increase in imports, which reached a total of $275,000,000, was mainly the result of larger quantities of
wool, copper, and several foodstuffs, notably sugar
and coffee.
344
P R I C E S CONTINUE TO M O V E H I G H E R
Prices, both retail and wholesale, have increased
considerably since the beginning of this year in nearly
all lines of goods not affected by Federal regulatory
actions. By the end of June, the all-commodity
index of the Department of Labor indicated a 9-percent rise during the past six months in wholesale
prices, and these movements are now being reflected
in higher retail prices paid by consumers. Comparison with the period of August 1939, just prior to the
outbreak of war, reveals a net rise of 16 percent in the
combined wholesale price index during the 22 months.
WHOLESALE PRICES OF BASIC COMMODITIES
PER CENT
THURSDAY
P ER CENT
FIGURES, AUGUST 1939=100
160
160
150
150
/
140
140
/
i
130
^
Ry
120
no
.
V
"** *\
\
'"V'\ 1
"*V
METALS
A
\' \/\
V \r
J
/
A ^^^
-*'
V /-
130
/
TP^
120
W
110
100
100
90
!
•
1939
,
•
,
•
,
1940
90
1941
The establishment of the Office of Price Administration and Civilian Supply (OPACS) has centralized
Federal attempts to regulate and control price movements. The stabilizing effect of maximum prices is
clearly illustrated in the chart in this column prepared by Federal Reserve economists from the
Department of Labor data on basic commodities.
Through Federal action, ceilings were set sometime
ago for several metals. The contrast, then, between
quotations for metals and other commodities shown
in this chart is self-evident. During May and June,
action to limit price advances was extended to several
Federal Home Loan Bank Review
additional types of commodities, but the full effect
of these regulations has not yet been reflected in the
current statistics.
The wholesale prices of building materials, as computed by the Department of Labor, are now at the
highest level in more than 15 years and have increased almost 13 percent since the outbreak of the
war.
Construction costs (or the standard house
[Average month of 1935-1939=100]
Element of cost
Material
Labor
Total
May
1941
Apr.
1941
Percent
change
May
1940
Percent
change
108. 8 108. 7
117.0 116. 1
+ 0 . 1 101. 3
+ 0 . 8 103. 7
+ 7.4
+ 12.8
111.2
+ 0 . 4 102.2
+ 9.2
111.6
Residential Construction
[Tables 1 and 2}
•
PRIVATELY financed building activity in
urban areas of the United States showed a slight
gain in May to a total of over 38,000 units. This
was due principally to an increase in the number of
multifamily dwellings placed under construction
while only a small rise was noted in the single-family
classification.
Contrary to the trend toward expanded activity
on the part of public housing agencies, which has
been apparent since the defense program got under
way last autumn, the number of permits for publicly
financed dwelling units in urban areas dropped from
8,500 in April to only 3,600 in the month of May.
So far this year, however, over 24,000 units have
been supplied by Government funds, or an average
of nearly 5,000 per month.
The net effect of the divergent movements of
building provided through private and public financing channels from April to May brought about
a reduction in the total residential construction
volume of 9 percent. This drop is especially unfavorable in light of the 4-percent rise that normally
occurs during the month of May.
Buildi ng Costs
[Tables 3, 4, and 5]
•
FOR the tenth consecutive month increases have
been shown in both material and labor costs
involved in building a standard 6-room frame house.
The index now stands 12 percent above the average
month of 1935-1939. The cost of material used in
this dwelling, while rising but slightly in May, is
now 9 percent above the average month of 1935-1939
and more than 7 percent higher than in the same
month of last year. Labor costs in connection with
building the standard house rose nearly 1 percent in
May, which places the labor cost index 17 percent
above the 1935-1939 level.
July 1941
A majority of the 29 communities currently reporting costs involved in the construction of a 6-room
frame house show increases, which in 11 cases were at
least $100 during the period from March to June.
Total costs for June in all of the 29 cities were well
above the June 1940 level. Since June 1940, costs
have risen more than $500 in 14 of these cities.
Birmingham, Alabama, Baltimore, Maryland, Atlanta, Georgia, and Columbia, South Carolina, each
reported increases of over $1,000 for this period.
Wholesale building-material prices, as shown by
the U. S. Department of Labor index, moved fractionally upward and in May stood at 112.1 (19351939 = 100), the highest level for any month since
1926.
New Mortgage-Lending Activity of
Savings and Loan Associations
[Tables 6 and 7\
N E W mortgage loans made by operating savings
and loan associations in May soared well above
the previous peak established in April, which in turn
surpassed any month since 1930. New mortgages
originated by these institutions amounted to almost
$131,000,000—an increase of $10,000,000, or 9 percent, from April. The seasonally adjusted index
rose 6 percent to 173.2 (average month 1935-1939 =
100).
•
New mortgage loans distributed by purpose
[Amounts are shown in thousands of dollars]
Purpose
May
1941
Apr.
1941
Construction _ _ __ $40, 975 $38, 686
H o m e purchase
54, 781 48, 311
Refinancing.
18, 506 16, 905
Reconditioning
5,930 6,368
Other p u r p o s e s . _
10, 761 10, 361
Total
Percent
change
May
1940
+ 5 . 9 $36, 956
+ 13.4 42, 049
+ 9 . 5 18, 034
-6.9
6,896
+ 3. 9 10, 607
Percent
change
+ 10.9
+ 30.3
+ 2.6
-14.0
+ 1.5
130, 953 120, 631 + 8.6 114,542 + 1 4 . 3
345
mately two-fifths of total defense contracts awarded
being concentrated in this area.
Recordings of nonfarm mortgages of $20,000 or
less totaled almost $436,000,000 in May—the largest
monthly volume since the series was inaugurated.
Although the total volume of mortgages recorded
by mutual savings banks is relatively low for the
United States as a whole, it is of interest to note that
during the first five months of this year the dollar
volume of such financing was 27 percent above the
same period of 1940—the greatest percentage increase shown by any of the six major lender-classes
for which recording data are compiled. The savings and loan industry, which continues to predominate in the mortgage-financing field, showed a gain
of 18 percent, while the remaining classes of lenders
indicated rises that either approximated or were less
than the national average increase of 17 percent for
the same interval.
Mortgage recordings by type of mortgagee
[Amounts are shown in thousands of dollars]
Type of lender
Mortgage loans for new construction and the purchase of existing dwellings continue to account for a
larger and larger proportion of total new mortgage
investments of savings and loan associations. These
two loan groups accounted for 85 percent of the
April-May increase in new lending and for 73 percent
of the aggregate loan volume in May.
PerPerPerCumula- cent
cent
cent
tive
change
of
of
record- total
from
May
ings
(5
Apr.
record1941
1941 amount months) ings
Savings and loan associations _ __
+ 11. 1
Insurance companies
+10. 3
Banks, trust companies
+ 9.3
Mutual savings banks
+ 16. 7
Individuals. _
+ 6. 3
Others _
+ 7.0
Total_
+ 9. 5
33.0 $567, 870
8. 2 147, 197
24. 6 444, 908
4. 5
75, 202
16. 0 301, 523
13. 7 250, 949
31. 8
8.2
24.9
4. 2
16. 9
14. 0
100.0 1, 787, 649 100. 0
Mortgage Recordings
Foreclosures
[Tables 8 and 9]
I N C R E A S E D mortgage-financing activity from
April was evident in 11 of the 12 Federal Home
Loan Bank Districts. Percentage changes ranged
from a decline of 2 percent in the Los Angeles District to a gain of 28 percent in the New York District. Of further significance is the fact that almost
three-fifths of the April-May increase in recording
activity occurred in the Boston, New York, and
Pittsburgh Bank Districts. This sharp increase in
real-estate financing activity in the three northeastern Bank Districts is largely the outgrowth of
greatly accelerated industrial activity—approxi-
[Table 10]
•
346
•
N O N F A R M foreclosures in the United States
again moved to a lower level bringing the seasonally adjusted index to 38.3 (average 1935-1939 = 100).
With the exception of March, when the drop in foreclosures was temporarily halted, each month so far
in 1941 has displayed reduced foreclosure activity.
The May index stood 13 percent below January of
this year, while during the past 12-month period the
volume of foreclosures has declined 25 percent.
Foreclosure cases for the first five months of this
year numbered approximately 27,000 or about 17
Federal Home Loan Bank Review
percent less than during the same period of 1940.
All four groups by size of community contributed to
this decrease, with the percentage decline being
greater than the national average for the largest
communities, and somewhat less for all other groups.
Geographically, 10 of the Federal Home Loan Bank
Districts showed declines in this J a n u a r y - M a y comparison, ranging from 32 percent for the Boston
District to 13 percent for the Pittsburgh District.
eight times the combined Treasury and HOLC investments.
On May 31, a total of 2,302 associations were insured by the Federal Savings and Loan Insurance
Corporation. These institutionsre presented some
$3,100,000,000 in assets, of which $2,500,000,000
was in the form of first mortgage holdings.
Federal Home Loan Bank System
[Table IS]
Federal Savings and Loan Associations
[Table 12]
U
T H E May increase of 8 percent in new lending
activity of Federal savings and loan associations
brought the loan volume up to a record peak of
$55,000,000 for the month, while the mortgage holdings climbed $29,000,000 over the April balance.
At the close of May, 1,451 savings and loan associations were operating under Federal charter in the
United States. These institutions had combined
assets of some $1,980,000,000.
Progress in number and assets of Federals
[Amounts are shown in thousands of dollars]
Number
Class of association
New__
Converted
Total
Approximate assets
M a y 31, Apr. 30,
1941
1941
638
813
1,451
May 31,
1941
Apr. 30,
1941
637 $608, 032
810 1, 370, 198
$595, 475
1, 351, 568
1, 978, 230
1, 947, 043
1,447
Federal Savings and Loan Insurance
Corporation
•
T H E usual seasonal upswing in Federal Home
Loan Bank advances which was evident during
the last few days of April was continued during May.
Advances during the month totaled $9,100,000—
slightly less than for the same month of 1940 but
nearly 50 percent above the level of May 1939. With
repayments during the month amounting to $5,700,000, the resulting balance of advances outstanding
reached $145,300,000 at the end of May—for the
third successive month $8,000,000 greater than at the
end of the comparable month last year.
All of the Federal Home Loan Banks with the
exception of New York, Winston-Salem, and Little
Rock, reflected increases in their advances outstanding. Advances outstanding in the New York Bank
were practically unchanged; they decreased very
slightly in the Little Rock Bank; and dropped
$558,000 in the Winston-Salem Bank, which brought
the balance of advances outstanding in this District
at the end of May down to 50 percent of the balance
at the beginning of the year.
The admission to membership during the month
of five State-chartered associations, one Federal association and one savings bank was not sufficient to
offset the withdrawal of nine associations, with the
result that the month-end total of 3,839 reflects a
net decrease of two members. However, assets
of member institutions continued to increase, reaching a total of $5,260,365,000 at the end of the month.
INTEREST R A T E S
[Table 12]
•
N E A R L Y $2,400,000,000 in private savings was
invested in insured savings and loan associations
at the end of May. The extent to which accumulations of private capital have been supplementing or
obviating the need for Government investments is
indicated by the 12-to-l relationship that now exists
between the investments of these respective groups.
In M a y 1940, private repurchasable capital was
July 1941
Effective May 15, 1941, the Indianapolis Bank
raised its limitation on short-term advances bearing
a 2K-percent rate from 10 to 15 percent of the borrowing member's share capital. The Los Angeles Bank
adopted a new rate of 2}{ percent on advances collateralized by FHA mortgages, insured subsequent
to December 31, 1940, provided the proceeds of such
advances are used solely for the making of FHA Titles
I I and VI loans.
347
Resolutions of the Board
AMENDMENT
TO RULES AND REGULATIONS
FOR
FED-
E R A L SAVINGS AND LOAN SYSTEM CONCERNING NOTICE
Adopted June 2,
1941; effective June 4, 1941.
The Federal Home Loan Bank Board on June 2
adopted a resolution amending Sections 1 and 3 of
the 1936 prescribed bylaws as set forth in Section
202.9 (b) of the Rules and Regulations for the
Federal Savings and Loan System to read as follows:
OF ANNUAL AND SPECIAL MEETINGS:
1. Annual meetings of members.
T h e a n n u a l meeting
of t h e members of t h e association for t h e election of
directors and for the transaction of any other business
of the association shall be held a t its home office a t 2
o'clock in t h e afternoon on t h e third Wednesday in
J a n u a r y of each year, if n o t a legal holiday, or if a legal holiday then on t h e next succeeding day not a legal
holiday. T h e a n n u a l meeting m a y be held a t such
other t i m e on such day or a t such other place in the
same c o m m u n i t y as t h e board of directors m a y determine. At each a n n u a l meeting, the officers shall m a k e
a full report of t h e financial condition of the association
a n d of its progress for t h e preceding year, and shall
outline a p r o g r a m for t h e succeeding year.
3. Notice of meetings of members.
(a) Notice of each a n n u a l meeting shall be either p u b lished once a week for t h e two successive calendar weeks
(in each instance on a n y day of the week) prior to t h e
d a t e on which such a n n u a l meeting shall convene, in a
newspaper printed in t h e English language and of general circulation in the city or county in which t h e home
office of the association is located, or mailed postage
prepaid a t least 15 days a n d n o t more t h a n 30 days prior
to t h e d a t e on which such a n n u a l meeting shall convene
to each of its members of record a t his last address
appearing on t h e books of the association. Such notice
shall s t a t e t h e n a m e of t h e association, the place of the
a n n u a l meeting and t h e time when it shall convene.
A similar notice shall be posted in a conspicuous place in
each of the offices of t h e association during the 14 days
immediately preceding t h e d a t e on which such a n n u a l
meeting shall convene. If any member, in person or
by a t t o r n e y t h e r e u n t o authorized, shall waive in writing
notice of any annual meeting of members, notice thereof
need not be given to such member.
(b) Notice of each special meeting shah be either
published once a week for t h e two consecutive calendar
weeks (in each instance on any day of t h e week) prior to
the date on which such special meeting shall convene, in a
newspaper printed in t h e English language and of general circulation in t h e city or county in which the home
office of the association is located, or mailed postage prepaid a t least 15 days a n d n o t more t h a n 30 days prior
to the date on which such special meeting shall convene
to each of its members of record a t his last address
appearing on t h e books of t h e association. Such notice
shall s t a t e the n a m e of t h e association, t h e purpose or
purposes for which the meeting is called, the place of
348
the special meeting a n d the time when it shah convene.
A similar notice shall be posted in a conspicuous place
in each of the offices of t h e association during the 14
days immediately preceding the d a t e on which such
special meeting shall convene. If a n y member, in person
or by a t t o r n e y t h e r e u n t o authorized, shall waive in
writing notice of any special meeting of members, notice
thereof need not be given to such member.
On the same date the Board also adopted a resolution permitting Federal savings and loan associations
operating under such prescribed 1936 bylaws to
amend Sections 1 and 3 of their bylaws in the same
manner.
In this connection, the Governor or
Deputy Governor of the Federal Home Loan Bank
System has been authorized to approve for the Federal Home Loan Bank Board any request for approval
of amendments in the above form to the bylaws of
any Federal savings and loan association. Any such
Federal savings and loan association so desiring to
amend its bylaws must mail a copy of the amendment postage prepaid to each member of the association at his last known address appearing on the
books of the association within 30 days after approval
by the Board and an affidavit of such mailing must
be furnished to the Governor of the Federal Home
Loan Bank System within 10 days.
A form of resolution for association use to accomplish this amendment was also adopted. The resolution uses the language of the amendment quoted
above with this introduction:
Resolved, T h a t t h e President a n d Secretary of the association request t h e Federal H o m e Loan B a n k Board for
permission to a m e n d sections 1 a n d 3 of the Bylaws of
this association to read as follows:
and the following closing:
Resolved, T h a t upon w r i t t e n approval by the Federal
H o m e Loan B a n k Board of the proposed a m e n d m e n t s
to t h e Bylaws of this association, such a m e n d m e n t s
shall thereupon become effective.
Directory of Member Institutions
Added during M a y - J u n e
I. I N S T I T U T I O N S A D M I T T E D T O M E M B E R S H I P I N
T H E F E D E R A L H O M E LOAN BANK SYSTEM BET W E E N M A Y 16 A N D J U N E 15, 1941
DISTRICT NO. 1
N E W HAMPSHIRE:
Manchester:
Amoskeag Savings Bank, Amoskeag Bank Building.
DISTRICT NO. 3
PENNSYLVANIA:
Philadelphia:
Corona Savings & Loan Association, 413 West Susquehanna Avenue.
Sewickley:
Sewickley Building & Loan Association, 508 Broad Street.
Federal Home Loan Bank Review
DISTRICT NO. 7
New Housing Funds Requested
ILLINOIS:
Bloomington:
Bloomington Federal Savings & Loan Association, 113 North Center
Street.
Milford:
The Milford Building & Loan Association.
DISTRICT NO. 8
MINNESOTA:
Slay ton:
Slay ton Building & Loan Association.
DISTRICT NO. 12
CALIFORNIA:
Carmel:
Carmel Building & Loan Association, Ocean Avenue.
WITHDRAWALS FROM THE FEDERAL HOME LOAN BANK SYSTEM BETWEEN MAY 16 AND JUNE 15, 1941
N E W JERSEY:
Camden:
Broadway Building & Loan Association, 513 Cooper Street (segregation
and sale of assets).
Jersey City:
The Union Building & Loan Association of Jersey City, 746 Grand Street
(voluntary liquidation).
PENNSYLVANIA:
Braddock:
Community Home Savings & Loan Association, 805 Fourth Street (voluntary liquidation).
Philadelphia:
Banater Building & Loan Association, 1621 North Fifth Street (voluntary
liquidation).
Corona Building & Loan Association, 413 West Susquehanna Avenue
(consolidation with the Compass and Unison Building & Loan Association, resulting in a new association and new member, the Corona
Savings & Loan Association).
Pittsburgh:
The Brighton Building & Loan Association of Allegheny City, 1700
Brighton Road, North Side (member's request).
II. FEDERAL SAVINGS AND LOAN ASSOCIATIONS
CHARTERED BETWEEN MAY 16 AND JUNE 15,
1941
DISTRICT NO. 2
N E W JERSEY:
Roseland:
Roseland Federal Savings & Loan Association, 154 Eagle Rock Avenue
(converted from Roseland Building & Loan Association).
DISTRICT NO. 4
GEORGIA:
Winder:
First Federal Savings & Loan Association of Winder (new association).
DISTRICT NO. 8
MISSOURI:
St. Louis:
Columbia Federal Savings & Loan Association of St. Louis, 1003 Pine
Street (converted from Columbia Savings & Loan Association of St.
Louis).
CANCELATION OF FEDEEAL SAVINGS AND LOAN ASSOCIATION
CHARTER BETWEEN MAY 16 AND JUNE 15, 1941
MARYLAND:
Baltimore:
Sycamora Federal Savings & Loan Association, 1706 East Pratt Street
(merger with Wyman Park Federal Savings & Loan Association,
Baltimore, Maryland).
III. INSTITUTIONS INSURED BY THE FEDERAL
SAVINGS AND LOAN INSURANCE CORPORATION
BETWEEN MAY 16 AND JUNE 15, 1941
DISTRICT NO. 3
PENNSYLVANIA:
Philadelphia:
The Berean Savings & Loan Association, 52 North 52nd Street.
Corona Savings & Loan Association, 413 West Susquehanna Avenue.
DISTRICT NO. 5
OHIO:
Cleveland:
The West Side Savings & Loan Association, 2025 West 25th Street.
DISTRICT NO. 7
ILLINOIS:
Bloomington:
Bloomington Federal Savings & Loan Association, 113 North Center
Street.
DISTRICT NO. 8
IOWA:
Waterloo:
Home Building & Loan Association, 529 Commercial Street.
MISSOURI:
St. Louis:
Columbia Federal Savings & Loan Association of St. Louis, 1003 Pine
Street.
July 1941
I
ON June 26, the President sent a message to
Congress requesting another $300,000,000 to be
authorized for public housing construction needed in
connection with the defense program. This would
double the amount previously appropriated under
the Lanham Act, as amended.
In his message the President said that data presented to him indicate the possibility that the Government should be prepared to undertake the construction of at least 125,000 additional defense homes
between now and July 1, 1942. " I t is thought best,
however, to limit the additional program to $300,000,000 at this time."
rcenewai of F H A I nsurance Authority
•
BY an amendment to the National Housing
Act, the authority of the Federal Housing Administration under Titles I and I I of that Act has
again been broadened and extended.
The new amendment, signed by the President on
June 28 (Public Law 138) extends the FHA authority
to grant Title I insurance to July 1, 1943, and raises
the maximum insurance liability under Title I from
$100,000,000 to $165,000,000. At the same time,
the maximum amounts for Title I loans have been
changed from $2,500 to $3,000 for new construction
and from $2,500 to $5,000 for modernization if the
loan is made for the alteration, repair, or improvement of an existing dwelling designed or to be
designed for more than one family. This latter
provision is intended to promote the conversion of
existing single-family dwellings into several units.
Furthermore, the maximum maturity of Title I
modernization loans has been extended to five years
and 32 days where the amount exceeds $2,500.
In regard to Title I I , the amendment authorizes
the President to increase the maximum principal
amount of Title I I loans from the present $4,000,000,000 to $5,000,000,000 and extends the FHA
authority to insure loans on existing construction to
July 1, 1944. Furthermore, the present 25-percent
limitation on the insurance of existing construction
under Title I I has been changed to 35 percent.
Finally, the present provisions for partial insurance
of foreclosure costs in the case of mortgages insured
under the 90-percent insurance provision of this Title
have been extended to July 1, 1944.
349
Table 7.—Estimated number and valuation of new family dwelling units provided in all urban areas of
the United States, M a y 1941
[Source: U. S. Department of Labor]
[Amounts are shown in thousands of dollars]
Number of family dwelling units
May
1941
May
1940
1941
1940
May
1941
April
1941
May
1940
1941
1940
29, 61329, 55926, 809 116, 697 100, 929 118, 427 118, 653 102, 809 461, 610 382, 472
4,480 24, 460 18,936
6, 023
5,977
2,354 2,355 1,770 9,719 7,722
6, 105 5, 221 4,661 25, 888 24, 252 15, 731 15, 234 12, 119 74, 139 73, 346
1-family dwellings
2-family dwellings *
3- and more-family dwellings 2
Public construction
3,604 8,505 4,704 24, 446 19, 249
11, 324
26, 291
15, 332
76, 474
58, 003
41, 676 45, 64037, 944 176, 750 152, 152 151, 459 166, 201 134, 740 636, 683 532, 757
Total urban construction
1
April
1941
Jan.-May totals
Monthly totals
38, 072 37, 13533, 240 152, 304 132, 903 $140, 135$139, 910 $119, 408$560, 209 $474, 754
Private construction _
2
Jan.-May
totals
Monthly totals
Type of construction
Permit valuation
Includes 1- and 2-family dwellings combined with stores.
Includes multifamily dwellings combined with stores.
Table 2.—Estimated number and valuation of new family dwelling units provided in all urban areas,
in M a y 1 9 4 1 , by Federal Home Loan Bank District and by State
[Source: U. S. Department of Labor]
[Amounts are shown in thousands of dollars]
All residential dwellings
Federal H o m e Loan B a n k
and State
District
UNITED STATES--
May
1940
37, 944 $151,459 $134, 740
31, 967
28, 579 $124, 404 $107, 289
May
1941
May
1940
1,666
7, 870
7,376
_ _
_
_ _ _ _ _ _ _
1, 168
72
1,290
117
159
37
544
106
1, 102
87
185
29
4,474
244
5,293
383
721
162
2, 664
320
4,349
298
773
147
565
72
809
108
159
37
537
92
745
87
176
29
2,649
244
3,726
368
721
162
2, 649
283
3, 244
298
755
147
_ _ _ _
5,373
4,800
21, 301
18? 468
3,069
2,519
13, 815
11,489
2,099
3,274
1,393
3,407
8,418
12, 883
5, 773
12, 695
1, 340
1,729
820
1,699
5,778
8,037
3, 662
7,827
2,732
1,946
11, 309
7, 994
2,238
1,492
9,752
6, 644
34
2,461
237
24
1,674
248
205
10, 216
888
121
6, 886
987
34
1,984
220
24
1,237
231
205
8,700
847
121
5, 590
933
_ _ _ _ _ _
___
__
No. 3—Pittsburgh.
May
1941
1,750
N o . 2—New York
350
May
1940
P e r m i t valuation
8, 551
-
_
_
41, 676
May
1941
N u m b e r of family
dwelling units
11,277
Maine
Delaware
Pennsylvania.
West Virginia _
May
1940
valuation
2,053
Connecticut
N e w Jersey
New York
May
1941
Permit
2,843
N o . 1—Boston
Massachusetts
New H a m p s h i r e
R h o d e I s l a n d . _ __
Vermont _
N u m b e r of family
dwelling units
All p r i v a t e 1- a n d 2-family dwellings
_ _
_ __
=====
fee/era/ Home Loan Bank Review
Table 2.—Estimated number and valuation of new family dwelling units provided in all urban areas
in M a y 1 9 4 1 , by Federal Home Loan Bank District and by State—-Continued
[Amounts are shown in thousands of dollars]
All p r i v a t e 1- a n d 2-family dwellings
All residential dwellings
Federal H o m e Loan B a n k
and State
N u m b e r of family
dwelling units
District
May
1941
May
1940
P e r m i t ^valuation
May
1941
May
1940
N u m b e r of family
dwelling units
May
1941
May
1940
P e r m i t valuation
May
1941
May
1940
$14, 004 1 $12, 879
877
911
1,527
1,389
3,275
3, 183
1,321
1,453
1,953
1,305
1,441
1,629
538
635 ,
2, 505
2,941
7,672
932
1,324
1,037
682
2,033
580
279
805
6,496
1, 806
343
1, 118
643
754
657
363
812
$21, 971
2,397
4,287
3,703
1, 353
4,862
1,496
666
3,207
$19, 735
4,990
1,632
3,803
1,485
2, 160
1,815
924
2,926
4,323
420
241
845
652
666
554
263
682
3,908
399
231
858
615
406
566
226
607
2, 660
319
1,816
525
3, 132
208
2,551
373
11, 116
817
8,969
1,330
12, 033
568
10, 532
933
2,407
315
1,579
513
1,934
200
1,373
361
10, 374
808
8,258
1,308
8, 187
544
6.728
915
N o . 6—Indianapolis.
Indiana
Michigan __ _
3,291
809
2,482
3,564
716
2, 848
14, 594
3, 140
11,454
14, 673
2,459
12, 214
3,246
770
2,476
2,777
698
2,079
14, 371
2,925
11,446
11, 500
2,406
9,094
N o . 7—ChicagoIllinois
Wisconsin
2,203
1,525
678
1,952
1,315
637
11, 176
8,349
2,827
9, 166
6, 565
2,601
2, 127
1,487
640
1,931
1,298
633
10, 903
8,202
2,701
9, 127
6, 536
2, 591
1,802
460
703
504
66
69
2, 139
546
919
535
68
71
7,086
1,805
3,030
1,823
198
230
7,963
2,041
3,530
1,961
222
209
1,670
446
671
432
52
69
2,047
531
878
507
64
67
6, 738
1,754 1"
2,925
1,658
171
230
7,715
1,999
3, 403
1, 900
212
201
3,031
237
403
239
130
2,022
3, 177
244
428
425
133
1,947
7,850
611
1, 160
317
343
5,419
8,049
632
1, 125
726
309
5,257
2,925
221
398
239
121
1,946
2,955
228
418
337
129
1,843
7,647
578
1, 152
317
326
5,274
7, 646
598
1, 106
513
307
5, 122
1,633
577
326
143
587
• 1,487
693
218
149
427
4, 728
1,802
787
563
1,576
4,572
2, 166
628
511
1,267
1,389
376
283
143
587
1,085
319
214
143
409
4, 100
1,231
730
563
1,576
3, 307
974
618
498
1,217
1, 648
118
116
387
298
673
56
1,688
145
226
341
285
630
61
5, 699
386
329
1,254
1,020
2,487
223
5,454
389
626
1,074
959
2, 182
224
1,571
118
112
329
295
661
56
1,529
141
136
330
277
584
61
5,540
386
323
1, 127
1,011
2,470
223
5, 034
377
362
1,044
951
2,076
224
6,788
92
6,629
67
5,510
100
5,346
64
23, 352
269
22, 813
270
18, 082
273
17, 612
197
5,252
87
5, 105
60
4,736
97
4, 599
40
19, 290
259
18, 775
256
16, 385
271
15, 953
161
N o . 4—Winston-Salem. __ _
A l a b a m a __
District of Columbia
__ _
Florida
____
Georgia
Maryland _
N o r t h Carolina
South Carolina
_ _
Virginia _ _ _ _
__
N o . 5—Cincinnati- _
Kentucky. _
_ _
Ohio___ __
_ _- _
Tennessee
N o . 8—Des Moines.
Iowa
_
Minnesota
Missouri
North Dakota _
South D a k o t a
N o . 9—Little Rock
Arkansas
Louisiana
Mississippi- _
New Mexico
Texas
N o . 10—Topeka
Colorado.
Kansas
Nebraska
Oklahoma _
_ _
. _
__
-.
_ ___ _ __
_
N o . 12—Los Angeles _ _
Arizona
_
California _
Nevada
_
_ _ _
_
No. 11—Portland
Idaho
Montana _
OregonU t a h __ . _
Washington _ _
Wyoming
_
July 1941
_ -
_
_________
_
_.
_
_ _ _
35I
Table 2a.—Revised estimates of the number of new family dwelling units provided in all urban areas
during the first three months of 1940 and 1 9 4 1 , by Federal Home Loan Bank District and by State 1
Re s i d e n t i a 1
All
Federal
Home Loan Bank
r
1941
January
UNITED STATES
No.
|
1 — Boston
1,271
15
389
1
[
5,273
3,633
New J e r s e y
Hew York
|
712
4,561
950
2,683
Mo. 3 — P i t t s b u r g h
1
No. 2—Mew York
January
March
February
16 1
58
8
17 1
3,715 I
5 1
1,051
January
32,073
| J8,I9I
Janua ry
March
Februa ry
26,657
12,015
15,681
581
931
513
384
744 .
501
14
436
8
114
211 I
234
15
250
16
58
8
163
2
276
27
40
5
137
10
175
19
39
4
276
14
324
8
114
8
1,350
279
29
465
39
102
17
2,289
1,177
1,698
2,040
996_J
432
918
930
1,359
290
887
302
1,396
735
1,305
27
456
2
56
3
8_J
5,191
4,688
1,685 1
472
502
4,689
813
3,875
689
4,418 I
1940
March
February
17,687
4,890
2,664 1
and 2- F a m i l y D w e l l i r i g s
755 J
1,081
273
10
469
19
39
4
611
2
296
27
40
94^
179
530
39
414
1-
1941
27,480 1 35,227 1 18,920 | 24,891 1
814
981
2,124 T
1,757 J
1,112
214
27
810
2
56
3
Connecticut
Maine
Massachusetts
New Hampsh i r e
Rhode I s l a n d
Vermont
ALL P r i v a t e
1940
March
February
26,727
1
Dwellings
I
,
23,450
2,045 1
352
1,252 1
l,3S4
805
730
1,657
292
680
1,200
23
689
145
15
623
102
33
1,815
197
2
3C9
41
16
1,117
7
1,212
175
19
661
125
15
617
98
33
1,442
182
2
253
37
.16
566
98
7
1,022
171
4.721
6,126
6,168
2,610
4,362
5,339
2,682
2,904
3,690
1,801
2,948
3,762
287
1,329
583
266
813
135
519
285
653
1,596
559
577
567
201
1,688
375
1,449
1,341
483
956
457
481
626
155
300
1,200
226
160
208
150
211
223
628
1,237
624
304
389
204
753
342
523
1,021
914
1,168
572
296
503
287
171
850
303
266
297
125
383
282
117
730
334
452
391
197
401
333
233
818
476
674
433
285
438
135
62
773
210
89
197
150
185
209
227
892
331
304
370
196
419
317
232
920
586
459
499
292
457
No. 5—Cincinnati
1,695
1,392
2,760
573
1,248
1,876
1,197
1,263
1,943
554
764 T
Kentucky
Ohio
Tennessee
123
1,087
480
170
885
336
326
1,950
484
43
407
128
85
646
517
217
1,324
335
128
773
296 j
170
783
310
231
1,245
467
43
387
124
77
502
185
,
1,561
1,924
3,173
663
1,049
2,283
1,554 1
1,912
3,133
355
1,569
666
2,507
98
565
166
P83_
708
1,575
284
1,270
351
1,561
626
2,507
659 1
94 1
990 1
166 1
|
28 7
1,274
565
824
403
1,554
1 1,555
983
1,942
344
608
1,158
847
763
1,323
340 1
596 1
1,109
1 1,316
1,592
350
271
239
810
173
518
90
911
247
627
220
620
143
985
338
271
69
506
90
673
1,339
1,307
283
726
1,195
558
614
1,110
272
579
no
114
225
983
5
12
294
444
504
30
35
50
157
54
10
202
218
295
3
297
304
551
20
23
110
250
176
9
13
114
197
286
5
12
273
398
374
30
35
50
150
54
10
8
•66.
214
288
3
8
258
293
481
20
23
3,288
209
324
264
III
4,092
115
1,137
384
142
3,939
150
1,141
411
161
2,076
2^322
82
365
209
86
1,580
2,211
152
275
272
85
1,427
2,838
201
312
258
104
1,963
1,984
83
234
127
96
1,444
2,294
115
241
257
139
1,542
3,096
144
393
407
161
1,991
857 I
Delaware
Pennsylvania
Ho,
4—Winston-Salem
Alabama
D i s t r i c t of Columbia
Florida
Georgia
f'aryl and
North C a r o l i n a
South Carolina
Virninia
No. 6— Indianapol is
Indiana
M i ch i gan
No. 7—-Chicago
111inois
Wisconsin
789 1
1
No. 8 ~ D e s Koines
lowa_
..
Minnesota
Missouri
_
North Dakota
South Dakota
274
232
9
48
1 2,581
No. 9 — L i t t l e Rock
Arkansas
Louisiana
Mississippi
New Mexico
Texas _
82
413
213
99
1,774
J
2,334
164
278
275
95
1,522
690
1
912
1,270
198
105
40
347
404
142
60
306
821
1,897
62
28
240
83
381
27
47
57
281
127
1,342
43
1 5,188
4,443
77
5,069
76
No. 10—Topeka
Colorado
Nebraska
Ok 1ahoma
1
' No. 11— P o r t l and
1 daho
Montana
Oregon
Utah
Washington
Wyoming
No.l2--Los Angeles
Arizona
California
Nevada
.740 I
._
__
J
42
1
4,328
3
1
I
r
JL^ 1
119 J
73
1
2,380
1
,2
3,007
83
1,092
224
99
1,509
1
8
1 2,314
181
967
314
1.957
883
226
f
1,075
550
685
1,353
666
727
1,168
311
659
1,019
396
246
124
504
265
40
36
209
167
112
43
363
277
250
437
389
180
99
40
347
233
128
60
306
305
242
121
500
70
40
28
173
151
112
43
353
254
230
146
389
1,409
638
836
1,629
733
976
1,363
598
744
1,299
119
90
359
231
558
52
45
20
162
55
341
15
80
42
244
107
345
18
160
334
355
189
524
67
51
28
199
67
361
27
47
49
253
127
461
39
119
87
343
210
552
52
39
20
154
52
318
15
74
42
203
68
339
18
156
98
328
175
478
64
6,026
4,024
4,387
3,656
5,212
123
5,967
68
4,283
48
3,569
39
83
5,080
3,514
69
3,345
69
3,932
23
4,028
80
3,902
46
6,138
83
5,890
4,687
III
53 |
^
[
i These figures may be substituted for Table 6 of the March Statistical Supplement.
352
|
1,462
•
J
36
1
49
3,422
1
23
77
3,233
35
4,528
48
(See June 1941 REVIEW, p. 305.)
federal Home Loan Bank Review
NEW RESIDENTIAL CONSTRUCTION IN ALL URBAN AREAS
ALL
PRIVATELY
FINANCED
I AND 2 FAMILY
DWELLINGS
Source: Federal Home Loan Bank Board. Compiled from Building Permits reported to US- Deportment of Lobor
THOUSANDS
6
FEDERAL HOME LOAN BANK DISTRICTS
5
1 - BOST ON
I
4 -WINSTON
3 -PITTSBURGH
| 1 | ! |
2 - N E W YORK
| j
t
4
r
2
1941-s,
4
\
/TTT
' \^ /" - ° s V /*- >**
"\
+
94
940
»
\
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*
*«0
1941^
"
I. FEB
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^
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1940
^Z
^
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MAR
APR
MAY
JUN.
JUL
AUG
SEP.
I. FEB. MAR.
OCT I
1
MA- •1
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DEC
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JUN.
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1941-.
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EIGHT STATES WITH GREATEST VOLUME DURING MAY
NEW YORr
DEC
1 1 1
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<
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p I N ^JSYLVAfs IA
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1
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6
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NOV.
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1
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OEC
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IL.LI MOIS
1
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1
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A:^
-I9< 0
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^-1940
(
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Ojmm.ni.
July 1941
!. SEP
OCT
NOV.
OEC.
JAN.
^fj !
-,'3 4/
^
FEB
MAR. APR.
MAY
JUN.
JUL.
AUG. SEP.
6>
OCT.
NOV
DEC.
JAN.
fT
</•*"
-/9< • 0
94/
FEB. MAR. APR. MAY
JUN.
JUL.
AUG
SEP
OCT.
NOV DEC.
JAN FEB. MAR. APR.
I
i. JUL. AUG.
SEP.
OCT.
NOV.
DEC.
353
Table 3.—Cost of building the same standard house in representative cities in specific months *
N O T E . — T h e s e figures are subject to correction
[Source: Federal H o m e Loan B a n k Board]
Cubic-foot cost
Federal H o m e Loan B a n k District
a n d city
T o t a l cost
1941
1941
June
1939
June
June
N o . 1—Boston:
Hartford, Conn
New H a v e n , Conn
Portland, Me
Boston, Mass
Manchester, N . H___
Providence, R. I
R u t l a n d , Vt
$0. 276 $0. 251
. 245
.277
. 226 . 219
. 291 .270
. 225
.245
. 265 .253
. 248 . 222
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
Cumberland, Md
Asheville, N . C
Raleigh, N . C
Salisbury, N . C
Columbia, S. C
Richmond, Va
Roanoke, Va
N o . 7—Chicago:
Chicago, 111
Peoria, 111
Springfield, 111
Milwaukee, Wis
Oshkosh, Wis
N o . 10—Topeka:
Denver, Colo
Wichita, K a n
Omaha, N e b r
Oklahoma City, Okla
1940
1940
June
$6, 615
6,650
5,424
6,986
5,882
6, 355
5,940
Mar,
Sept.
•211
239
236
252
203
198
307
304
311
255
251
. 282
.295
. 298
2
. 224
2
. 226
7, 371
7,288
7,463
6, 117
6,029
7,093
7,267
7,463
2
5, 988
2
5, 975
.270
.253
. 263
.273
. 254
. 243
.256
. 255
6,469
6,072
6, 301
6, 552
6, 500
5,790
6, 148
6, 590
6,494 6, 392
6, 173 6,236
6, 152 2 6, 155
6,373 6,550
5, 984 5,846
6, 157 6,088
6,006 6,058
5,708 5,752
5,502 5,478
5, 131 4,716
5, 719 5, 540
5,600 5, 570
5,936 6,021
6,087
6,416
6,027
6,731
5,537
5, 659
5, 832
5, 320
5, 246
4, 493
5, 453
5, 420
5, 714
6,
7,
7,
5,
2
5,
900
158
415
875
814
$6, 019
5, 868
5, 256
6, 484
5, 390
6, 066
5, 327
5,332
071
5,894
735
5,717
673
6, 156
050
4,882
873
4,914 4,750
941
197
536
679
949
6,
7,
7,
2
5,
5,
1937
June
June
$6, 424 &6, 262 $5, 881
6,288 6, 177 5,869
5,369 5,274 5,277
6,760 6,667 6,489
5, 801 5,749 5,421
6,281 6,226 6, 122
5,880 5,443 5,428
. 271
. 257
. 256
. 266
. 249
.257
.250
.238
. 229
. 214
. 238
.233
.247
207
209
203
194
201
217
Dec.
1938
June
4,979
5, 010
4,872
4, 660
4, 819
5, 205
841
110
168
527
431
6, 773
7,082
7, 145
5,369
5,416
$5, 842 $5, 659
5,597 5,616
5,294 5,526
6,286 6,079
5,427 5,392
5,996 5,933
5,427 5,676
5,310
5,655
5, 576
5,795
4,822
4,746
5,539
4,872
4,952
4,670
4,783
4, 936
5, 150
6,068
5,989
5,608
6, 166
5,207
4,739
5,535
5, 194
5,430
4,776
5,249
5,056
$6, 332
5,903
5,711
6,653
5,796
5,927
5,795
6,056
5,968
5,716
6,456
5,311
109
743
240
627
652
873
5,242
5, 135
6, 846 6,904
7,215
6,556 6,695
6,808
6,789 6, 965
6,978
2
5, 300 2 5, 072 2 5, 255
2
5, 498 5, 609 * 5, 651
6, 327 6, 131 6,092 6, 376
5, 716
5, 838 6,021
5, 968 5,914
6, 132 5,778
6,388 6,097 6, 117 5,860
6, 464
5,866
5, 814
5, 840
6,714
5,711
5,964
5,823
* 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-car garage, an unfinished cellar, an unfinished attic,
a fireplace, essential heating, plumbing, and electric wiring equipment, and complete insulation. It does not include wall-paper nor other wall nor ceiling finish on interior
plastered surface, lighting fixtures, refrigerators, water heaters, ranges, screens, weather stripping, nor window shades.
Reported costs include, in addition to material and labor costs, compensation insurance, and allowance for contractor's overhead and transportation of materials,
plus 10 percent for builder's profit.
Reported costs do not include the cost of land nor of surveying the land, the cost of planting the lot, nor of providing walks and driveways; they do not include
architect's fee, cost of building permit, financing charges, nor sales 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,
a Revised.
Table 4.—Index of building costs for the standard house
[Average month of 1 9 3 5 - 1 9 3 9 = 1 0 0 ]
Element of cost
Labor
Total cost
354
May
1941
Apr.
1941
Mar.
1941
Feb.
1941
Jan.
1941
Dec.
1940
Nov.
1940
Oct.
1940
Sept.
1940
Aug.
1940
July
1940
June
1940
May
1940
108.8
117.0
108.7
116.1
108.0
115.3
107.8
115.1
106.6
114.5
105.9
112.5
104.6
109.8
103.4
106.9
101.9
104.8
101.4
103.6
101.2
103.4
101.3
103.5
101.3
103. 7
111. 6
111.2
110.4
110.2
109.3
108. 1
106.4
104.6
102.9
102. 1
102.0
102. 1
102.2
Federal Home Loan Bank Review
Table 5.—Index of wholesale price of building materials in the United States
[1935-1939=100]
[Source: U. S. Department of Labor]
All buildand
ing mate- Brick
tile
rials
Period
Cement
Lumber
Paint and Plumbing Structural
paint ma- and heatsteel
ing
terials
Other
99. 9
100.9
100.4
100. 8
100.3
104.2
103. 5
96.9
1940: May
June
July
August
September
October
November
December
103.3
103.2
103.5
104.4
105.6
109. 2
110.4
110.9
99.3
99.3
99.2
99.2
99.3
99.3
99.3
100.3
99.3
99.4
99.4
99.4
99.4
99.5
99. 7
99.8
106.9
105.6
105.6
109. 6
119.3
127.4
130.8
132.3
105.7
104.7
104.0
103. 5
103.4
104.3
105.4
105.0
105.9
105.8
105.8
105.8
105.8
105.8
105.8
105.8
103. 5
103.5
103.5
103. 5
103.5
103.5
103.5
103.5
99.7
100.6
101.2
101.0
101. 1
101.4
101.9
102.2
1941: January
February
March
April
May
111. 2
110.9
111. 1
111.8
112. 1
100.5
100.6
100.7
100.9
101. 1
99. 7
99.7
99.7
99.9
100. 4
131. 9
130.5
130.0
130.0
130. 1
106. 6
106.5
107.5
109. 1
109.8
105.8
108.0
108.8
109.0
109.0
103.5
103.5
103.5
103.5
103.5
102.6
102.6
103.0
103. 7
104. 1
Change:
1
May 1941-Apr. 1941.
May 1941-May 1940
+i
+ 0. 2%|
+ 1.8%;
+ 0. 5%
+ 1.1%
+ 0. 6%
+ 3.9%
0. 0%,
+ 2.9%
1939: May
-0.3%
+ 0.1 %|
+ 21. 7%
0.0 7 o
0.0%
+ 4. 4 %
Table 6.—Estimated volume of new home-mortgage loans by all savings and loan associations/ by
purpose and class of association
[Thousands of dollars]
Class of association
Purpose of loans
Period
Construc- Home pur- Refinancing
tion
chase
Reconditioning
Loans for
all other
purposes
Total
loans
Federals
State
members
Nonmembers
1939.
$301, 039
$339, 629
$182, 025
$59, 463
$104, 227
$986, 383
$400, 337
$396, 041
$190, 005
Jan.-May__
May
103, 753
26, 646
122, 518
31, 289
70, 242
15; 687
22, 236
6,069
41, 053
9, 432
359, 802
89, 123
142, 761
36, 358
145, 374
35, 426
71, 667
17, 339
1940.
398, 632
426, 151
198, 148
63, 583
113, 065
1, 199, 579
509, 713
483, 499
206, 367
Jan.-May__
May
June
July
August
September..
October
November..
December. _
137, 071
36, 956
35, 523
39, 907
42, 488
39, 417
41, 610
32, 584
30, 032
159.
42,
38,
40,
40,
40,
40,
33,
31,
466
049
402
658
567
947
771
875
465
84,
18,
17,
17,
17,
15,
16,
14,
14,
251
034
147
649
762
483
840
441
575
24, 542
6,896
5,691
6,115
6,079
6,283
5,756
4,869
4,248
46, 047
10, 607
10, 221
9,972
10, 726
9,645
9,423
8,798
8,233
451,377
114, 542
106, 984
114,301
117, 622
111, 775
114,400
94, 567
88, 553
191,
49,
47,
48,
50,
46,
48,
38,
37,
899
287
435
676
305
480
307
896
715
179, 980
45, 803
42, 214
45, 414
46, 807
45, 988
46, 224
40, 143
36, 729
79, 498
19, 452
17, 335
20,211
20, 510
19, 307
19, 869
15, 528
14,109
166,
26,
26,
33,
38,
40,
202,
27,
30,
41,
48,
54,
968
809
283
784
311
781
80,
13,
14,
16,
16,
18,
163
645
204
903
905
506
24, 420
3,784
3,573
4,765
6,368
5, 930
45, 909
8,540
7,787
8,460
10, 361
10, 761
519,516
80, 440
82, 330
105, 162
120, 631
130, 953
222,
34,
35,
45,
51,
55,
137
360
645
365
371
396
218,
33,
35,
43,
50,
54,
78, 733
12, 133
11,384
15, 850
18, 304
21,062
1941
Jan.-May__
January
February...
March
April
Mav
July 1941
056
662
483
250
686
975
646
947
301
947
956
495
355
Table 7.—Estimated volume of new home-mortgage loans by all savings and loan associations, by
Federal Home Loan Bank District and class of association
[Amounts are shown in thousands of dollars]
New loans
Federal H o m e Loan B a n k
District and class of
association
j
Percent
change,
Apr. 1941
to
M a y 1941 April 1941
M a y 1941
New
loans,
M a y 1940
+ 8.6
+ 7.8
+ 6.9
+ 15. 1
$114, 542
49,287
45,803
19,452
Cumulative new loans (5 months)
Percent
change,
M a y 1940
Percent
to
1941
1940
change
M a y 1941
+ 14. 3
+ 12. 4
+ 19.0
+ 8.3
$519, 516 $451,377
222, 137
191, 899
218,646 1 179,980
78,733
79,498
United States:
$130, 953
Total
55,396
Federal
54,495
State member.
21,062
Nonmember. _
$120,631
51,371
50,956
18,304
District No. 1:
Total
Federal
State member_
Nonmember. _
13, 834
4,618
6, 980
2,236
11,517
4, 133
5, 535
1,849
+
+
+
+
20. 1
11.7
26. 1
20. 9
10, 966
3,906
5, 604
1,456
+
+
+
+
26. 2
18.2
24. 6
53.6
50,576
17,438 i
25, 112 :
8,026
37,
13,
17,
6,
District No. 2:
Total
Federal
State m e m b e r .
Nonmember. _
13, 579
3, 746
4,010
5,823
11,378
3,057
3,339
4, 982 |
+
+
+
+
19. 3
22.5
20. 1
16.9
10, 332
3, 153
2,733
4, 446
+
+
+
+
31.4
18.8
46. 7
31.0
47,
13,
14,
20,
802
256
468
078
38, 164
12, 130
10,669
15,365 1
+ 25. 3
+ 9.3
+ 35.6
+ 30.7
District No. 3:
Total
Federal
State m e m b e r .
Nonmember..
10,
3,
2,
4,
949
847
979
123
9, 142
3,418
2,601
3, 123
+
+
+
+
19.8
12.6
14.5
32.0
9,010
3,663
2,265
3,082
+ 21. 5
+ 5. 0
+ 31. 5
+ 33.8
40, 269
15, 112
11,052
14, 105
35, 962 |
13,050
9,045
13, 867
+ 12. 0
+ 15.8
+ 22. 2
+ 1.7
District No. 4:
Total
Federal.
State m e m b e r .
Nonmember..
17,
8,
7,
1,
186
214
406
566
16, 625
7,870
7,216
1,539
+
+
+
+
3.4
4.4
2.6
1.8
17, 636
8, 323
6,496
2,817
-2.6
-1.3
+ 14. 0
-44. 4
71, 139
34, 585
30, 282
6,272
66, 758
31, 196
25, 883
9,679
+ 6.6
+ 10.9
+ 17.0
-35. 2
District No. 5:
Total
Federal
State m e m b e r .
Nonmember. _
22, 684
8, 709 i
11, 305
2,670
21,
8,
10,
2,
+
+
+
+
5.4
7.3
3.4
8.1
18, 994
7,055
9, 409
2,530
+ 19.4
+ 23.4
+ 20.2
+ 5. 5
90,
33,
45,
10,
73,
27,
35,
10,
977
571
978
428
+ 22. 0
+ 22.4
+ 26.6
+ 4. 9
District No. 6:
Total
Federal
State m e m b e r .
Nonmember. _
6,367
3,201
2,913
253
6,080
3, 167
2,733
180
+ 4. 7
+ 1.1
+ 6.6
+ 40. 6
5, 782
2,713
2,701
368
+ 10. 1
+ 18.0
+ 7.8
-31.3
26, 848
13, 658
12, 099
1,091
22, 632
10, 438
10, 676
1,518
+ 18.6
+ 30.8
+ 13.3
-28. 1
District N o .
...
7: T o t a l . __
Federal.
State m e m b e r .
Nonmember. _
13, 210
5,349
6, 163
1, 698
13, 346
5,224
6,450
1,672
-1.0
+ 2. 4
-4. 4
+ 1.6
11, 358
4, 570
5,279
1, 509
+
+
+
+
16. 3
17.0
16. 7
12. 5
53, 710
20, 823
25, 404
7,483
47, 329
18, 619
20, 448
8,262
+ 13.5
+ 11. 8
+ 24. 2
-9.4
District No.
8 Total
...
Federal _
State m e m b e r .
Nonmember. _
7,281
3,739
2,410
1, 132
6,856
3,435
2,312
1, 109
District No.
9 Total
Federal.
State m e m b e r .
Nonmember. _
6,053
2,538
3,378
137
District No. 10 Total
Federal
State member.
Nonmember. _
521
116
934
471
219
735
541
943
520
065
916
539
+ 15. 1
+ 15.8
+ 21.5
-1.0
+
+
+
+
34. 8
33.5
40. 2
22. 7
6. 2
8.9
4. 2
2. 1
7,048
3, 679
1,926
1,443
+ 3. 3
+ 1.6
+ 25. 1
-21. 6
27, 614
13, 803
9,357
4,454
27, 609
12, 751
8,679
6, 179
+ 0.0
+ 8.3
+ 7.8
-27.9
5,452
2,349
3,000
103
+ 11.0
+ 8.0
+ 12. 6
+ 33.0
5,744
2,236
3,284
224
+ 5. 4
+ 13. 5
+ 2.9
-38.8
25, 989
10, 982
14, 499
508
24, 812
10, 107
13, 667
1,038
+ 4.
+ 8.
+ 6.
-51.
5,657
3, 325
1, 135
1, 197
4,776
2,680
1,061
1,035
+ 18.4
+ 24. 1
+ 7.0
+ 15.7
4,815
2,568
1, 118
1, 129
+ 17.5
+ 29. 5
+ 1.5
+ 6.0
21, 674
12, 026
4,989
4, 659
20, 607
11,022
4, 690
4,895
+ 5. 2
+ 9. 1
+ 6.4
-4.8
District No. 11 T o t a l
F e d e r a l . _ ._ _
State member.
Nonmember. _
4, 862
3, 219
1, 490
153
4,506
2,888
1,477
141
+ 7.9
+ 11. 5
+ 0. 9
+ 8. 5
4, 199
2,551
1,489
159
+15. 8
+ 26. 2
+ 0. 1
-3.8
20, 068
13, 446
6,064
558
16, 805
10, 373
5,725
707
+ 19.4
+ 29. 6
+ 5.9
-21. 1
District N o . 12 T o t a l
Federal
State m e m b e r .
Nonmember. _ 1
9, 291
4, 891
4, 326
74
9,432
5,034
4,298
100
-1. 5
-2.8
+ 0.7
-26.0
8,658
4,870
3,499
289
+ 7.3
+ 0.4
+ 23. 6
-74.4
43, 608
23, 273
19, 779
556
39, 202
21, 577
16, 604
1,021
+ 11. 2
+ 7. 9
+ 19. 1
-45.5
356
+
+
+
+
1
7
7
1
1
Federal Home Loan Bank Review
Table 8.—Summary of estimated nonfarm mortgage recordings,1 $20,000 and under, during M a y 1941
(A n o u n t s
F e d e r a l Home L o a n
Bank
District
and
State
UNITED STATES
No. 2--New York
No. 4—Winston-Salem
Alabama
in
thousands
c f
dollars)
Numbe r Amount
Number Amount
52,802 $143,770
7,190 $35,635 32,148 $107,151 5,258 $19,70 5 35,175 $69,836
Mutual
B a n k s and
t r u s t companies savings banks
Number
Amount
Indiv duals
Number Amount Number Amount
Amount
Amount
per
capita
( n o n f a rm)
17,769 $59,864 150,342 $435,961
$ 4.72
Other
mortgagees
Number Amount
Total
Number
14344
181
1,008
1,289
4,606 2,824
9,695
2,809
6,364
707 .
2,359 12,138
38,376
386 1,537
174
355
3,359 11,308
129
248
20I
744
79
152
122
24
30
692
101
196
5
19
394
179
420
123
97
76
632
1,764
427
224
1,599 1,575
26 G 174
112
387
107
163
2,484
408
5,559
539
364
331
639
263
1,601
99
146
61
1,623
292
3,888
148
322
91
388
35
215
13
48
8
1,388
73
669
•50
148
31
2,561
899
7,200
538
609
331
9,488
1,656
23,229
1,251
1,984
768
3,2PE 1 1,108
491
2,631
2,471
10,266 1,667
7,445
4,132
10,033
1,562
3,864
7,244
247
244
1,279
1,352
1,419
1,052
5,955
92
567
4,311 r ,575 6,878
1,510
2,622
3,769
6,264
693
869
3,922 10,128
449
2,167
3,172
10,712
250
822
2,347
5,429
1,024
74
8,913
1,141
28
345
75
156
1,646
365
60
2,487
625
258
9,118
1,336
18
219
13
75
741
7
67
1,911
369
142
4,600
687
16
871
137
7,303 19,314
51
196
5,595
9,935
3,160
625
448
1,049
763
523
677
702
808
927
1,383
2,476
977
1,170
789
712
r ,501
388
162
509
380
220
397
315
789
I,I53
2,122
Delaware
are
Insurance
companies
4,328
New Hampshire
shown
S a v i n g s & Loan
associ ations
23
3,383
516
353
681
702
1,125
1,426
1,416
557
1,043
1,183
5,489
3,072
3,386
627
4,079
1,987
1,802
3,716
3,582
1,186
2,335
119
119
434
120
34
140
85
132
470
827
1,786
596
187
694
358
571
358
105
443
550
306
220
396
694
765
730
1,003
1,155
1,011
977
510
2,235
6,345 13,608
6.24
2.64
5.63
3.11
2.96
3.11
47,828 1
5,124
8,484
29,936 1
3,727 11,164
32,986 1
41
3,374
312
212
9,217
1,735
746
28,392
3,848
7,054 20,364
50,374
2,458
3,887
795
852
1,437
1,009
758
558
413
1,232
17,892
1,843
1,515
3,137
2,938
2,560
2,850
2,055
3,466
3,584
7,871
8,689
5,539
7,038
6,600
3,179
7,874
51
196
162
609
2,442
4,361
1,750
5,540 17,799
52,727
332
3,644
385
138
806
806
480 2,325
3,030 13,155
2,030 2,319
5,759
41,141
5,827j
3.89
3.24
3.01
2.74
16.18
7.31
3.72
5.05
4.20
3.87
5.35
8,841 25,809
855
4,315
3,749
12,093
Kentucky
Ohio
1,299 3,009
7, IG4 21,920
880
378
168
488
199
667
2,918
730
506
2,604
639
1,271
9,02(
1,802
162
609
214
1,931
297
3,856
8,068
742
3,577
3,603
9,738
32
56
1,381
2,619
862
3,171 10,476
27,229
Ind i ana
2,642
1,214
5,020
3,048
340
402
1,568
2,009
1,205
2,398
3,30$
6,42*
32
56
518
863
908
1,711
268
594
821
2,350
11,682 1
15,547
13
I owa
North Dakota
No, 9
L i t t l e Rock
No. I I—PortlandIdaho
Utahtoyom ipg
5,005
5,471
23
2,545
5,777
2,013
9,183 12,330
41,307
13
23
f,5IO
1,035
3,687
2,090
1,720
293
8,052
1,131
8,883
3,447
31,525
9,782
43
142
2,783
4,627
1,779
5,477 12,246
30,908
467
986
1,1 57
63
110
644
1,933
1,794
141
115
214
296
1,219
27
23
590
888
3,941
33
25
2,565
3,919
5,000
379
383
5,678
10,115
13,451
875
789
2,638
2,354
4,351
1,707
5,637
8,823
24,226
216
440
311
260
1,411
290
430
290
47
1,297
454
730
438
122
2,607
62
474
143
14
1,014
104
1,363
285
20
3,865
820
2,017
844
201
4,941
1,525
5,908
1,619
612
14,562
967
2,427
1,640
2,533
927
2,978
7,064
16,258
151
327
135
354
367
857
335
868
654
242
215
529
1,159
373
344
657
311
180
115
320
1,091
567
392
928
1,539
1,859
1,349
2,317
3,809
4,291
3,114
5,044
1,276
1,577
4,303
1,417 ~ ~2^29T
910
3,214
6,665
17,098
52
75
562
131
456
126
76
208
397
721
49
463
174
531
1,175
1,837
123
230
136
483
124
329
115
276
288
688
194
607
238
58
44
210
61
507
30
146
576
f 16
431
754 1,594
139
859
1,959 2,919
100
286
650
3,957
6,315
25,643
5,730
11,516
1,368
5,179 17,665
56,644
10
638
2
30
150
3,920 •6,131
34
7
528
24,998
117
306
5,356
68
576
10,812
128
23
1,340
5
43
583
5,126 16,952
10
130
1,438
54,886
320
5,047 14,925
560
2,870
2,152
8,529
3,850 11,468
1,197 3,457
428
132
2,257
613
1,375
777
6,061
2,468
4,042
9,542
705
3,310
2,894
7,810
929
1,581
1,268
191
73
1,938
4,056
2,930
481
137
134
278
234
13
46
583
1,282
1,239
61
145
821
735
1,122
85
131
1,923
1,814
3,547
159
367
3,094
295
832
205
63
1,699
7,850
507
2,703
359
200
4,081
781
3,750
887
61
136
57
4
523
244
672
226
10
2,598
112
145
149
73
408
3,252
7,035
278
1,285
389
1,039
772
1,052
1,007
2,246
1,528
2,254
34
71
III
62
185
248
515
337
2,230
5,298
315
154
162
552
241
1,029
92
332
356
1,415
638
2,301
255
8
13
123
36
135
3,602 10,349
261
94
3,487 10,030
21
58
43
216
142
716
18
61
198
655
4.58
2.52
4.00
4,30
4.16
4.82
3.83
4.75
*4.75
3.80
6.05
5.35
3.09
2.61
2.07
4.65
2.50
2.31
4.19
5.06
3.66
39.3
3.68
1,269 1
1,009
4,012
2,277
7,815
716 1
4.94
3.03
5.49
5.81
6.21
4.70
4.27
10.85
1
4.29
1
Based upon county reports s ubmitted through the cooperation of savings and loan associations, the U. S. Savings and Loan League, the Mortgage
Bankers Association and the Amer ican Titl e Assoc iat ion.
July 1941
357
Table 9.—Estimated volume of nonfarm mortgages recorded, by type of mortgagee
[Amounts are shown in thousands of dollars]
Savings and
loan associations
Insurance
companies
Mutual
savings
banks
Banks and
trust
companies
Individuals
Other
mortgagees
All
mortgagees
Period
Total
Percent
49,
45,
46,
46,
45,
48,
39,
37,
36.3
36.0
35.3
34.7
35.5
34.8
33.5
32.8
5,887
5,922
6,228
6,525
6,091
6,977
5,816
5,736
34, 459 3 1 . 4
1941: January
34, 909 3 2 . 6
February..
42, 496 3 4 . 2
March
48, 266 3 4 . 6
April
52, 802 35. 1
May
Amount:
$123, 485 33. 1
1940: M a y .
116,595 3 2 . 8
June
118,914 3 2 . 4
July
121, 979 3 2 . 4
August
September. 117, 928 3 3 . 0
125, 009 3 2 . 2
October
November . 102, 267 3 1 . 2
98, 765 3 0 . 2
December.
5,523
4,753
5,651
6,583
7, 190
Number:
1940: May
June
July
August
September.
October
NovemberDecember..
1941: January
February..
March
April
M a y __. _
166
564
667
706
595
145
180
984
89, 996
91,182
113,574
129, 348
143, 770
29.3
30.7
32.6
32.5
33. 0
Total
Percent
Total
Percent
Total
Percent
Combined
total
Percent
3.0
3.3
3.3
3.2
3.4
3.3
3.4
3.3
30,
27,
29,
30,
28,
30,
27,
27,
704
896
689
858
164
635
507
823
22.7
22.0
22.4
22.9
21.9
22. 1
23. 6
24.0
17,
16,
16,
17,
16,
16,
14,
14,
219
126
837
178
391
975
239
680
12.7
12.7
12.7
12.8
12.8
12.3
12. 2
12.7
135,582
126, 731
132, 260
134, 702
128, 422
138, 482
116,754
115,907
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
3,392
2,985
3,571
4,512
5,258
3. 1
2.8
2.9
3.2
3.5
28,
27,
30,
33,
35,
494
483
990
794
175
26.0
25.7
25.0
24.2
23. 4
13,
13,
14,
16,
17,
617
303
666
305
769
12.4 109, 689 100.0
1 2 . 4 107, 144 1 0 0 . 0
1 1 . 8 124, 194 1 0 0 . 0
11.7 139, 525 100.0
11.8 150, 342 100.0
$58, 372
52, 973
55, 191
56, 770
52, 936
59,124
51, 504
51, 964
15.7
14.9
15.0
15. 1
14.8
15.2
15.7
15.9
$54,
52,
53,
56,
52,
55,
47,
48,
981
941
622
394
636
734
621
885
14.8
14.9
14. 6
15.0
14.7
14.3
14. 6
15.0
$372,
355,
367,
376,
357,
388,
327,
326,
471
463
054
816
518
973
385
624
100.0
100.0
100.0
100. 0
100.0
100.0
100.0
100.0
17.5
17.7
17. 1
16.5
16. 0
44,
43,
47,
55,
59,
154
335
624
972
864
14.3
14.6
13.6
14. 1
13.7
307,
296,
348,
398,
435,
640
863
880
305
961
100.0
100.0
100.0
100.0
100.0
Total
Percent
4.3
4.7
4.7
4.8
4.7
5.0
5.0
4.9
28, 495
26, 986
28,511
29, 137
27, 924
31, 202
25, 988
25, 837
21.0
21.3
21.6
21.6
21.7
22.5
22.3
22.3
4,111
4,237
4,328
4,298
4,257
4,548
4,024
3,847
5.0
4.4
4.5
4.7
4.8
24, 204
23,711
26, 820
30, 065
32, 148
22. 1
22.1
21.6
21.6
21. 4
Total
Percent
$29,
28,
30,
31,
29,
33,
27,
28,
075
909
602
839
401
818
900
666
7 . 8 $91, 164 2 4 . 5 $15, 394
8 . 1 87, 552 2 4 . 6 16, 493
8 . 3 92, 658 2 5 . 3 16, 067
8 . 4 93, 931 2 4 . 9 15, 903
8 . 2 89, 051 2 4 . 9 15, 566
8 . 7 98, 462 2 5 . 3 16, 826
8 . 5 82, 971 2 5 . 4 15, 122
8 . 8 83, 426 2 5 . 5 14,918
4. 1
4.7
4.4
4.2
4.4
4.3
4.6
4.6
27,
23,
27,
32,
35,
691
716
842
313
635
9.0
8.0
8.0
8. 1
8. 2
12, 931
11, 662
14,016
16, 888
19, 705
4.2
3.9
4.0
4. 2
4.5
78,
74,
86,
98,
107,
977
526
178
076
151
Table 70.—Estimated nonfarm real estate foreclosures, by size of county
25.7
25.1
24.7
24. 6
24. 6
Table
53,
52,
59,
65,
69,
891
442
646
708
836
77.—Property operations of the H ome
Owners' Loan Corporation
C o u n t y size (dwellings)
Period
U.S.
total
Less
than
5,000
5,00019,999
20,00059,999
60,000
and
over
Period
1940: J a n . - M a y
May
_ _
June
_
July
August.
September
October
November
December
32, 222 3,319
712
7,138
709
6,597
667
6,293
595
6, 128
539
6,294
618
6,305
603
5,832
635
5,639
4,803
1,088
1,043
909
835
1,018
897
832
819
6,766
1,539
1,301
1,269
1,338
1,355
1,319
1,343
1,103
17, 334
3,799
3,544
3,448
3,360
3,382
3,471
3,054
3,082
1940: May
June
July
August
September
October _ _
November
December._
1941: J a n . - M a y
January
February
March
April
May _
26, 893 2 , 9 7 1
607
5,474
526
4,950
621
5,650
587
5,445
630
5,374
4, 149
800
789
870
853
837
5,735
1, 180
1, 009
1, 191
1, 119
1,236
14, 038
2,887
2,626
2,968
2, 886
2.671
1941: J a n u a r y
February
March
April
May
1
358
Number
of p r o p erties
acquired 1
_
_
__
_
__
_
__ _
Number
of p r o p erties
sold
Number
of properties
on h a n d a t
end of
month
1,531
1,611
1,694
1,758
1,701
1,719
1,728
1,580
4,720
4,801
3,355
3,691
3,619
3,886
3,253
2,706
65,
62,
60,
58,
56,
54,
52,
51,
326
127
470
524
598
433
878
722
1,638
1,340
1,327
1,226
1,080
2,425
2,223
2,369
2,464
2,458
50,
49,
48,
47,
46,
865
940
856
588
170
Includes reacquisitions of properties previously sold.
Federal Home Loan Bank Review
Table 12.—Progress of institutions insured by the Federal Savings and Loan Insurance Corporation
[Amounts are shown in thousands of dollars]
NumPeriod a n d class ber of
associof association
ations
Total
assets
N e t first
mortgages
held
Private
repurchasable
capital
Government
investment
Federal
Home
Loan
Bank
advances
Operations
N u m b e r of
investors
Newprivate
investments
Private
repurchases
New
mortgage
loans
ALL INSURED
2,170 $ 2 , 3 3 9 , 4 1 1 $ 1 , 7 6 9 , 1 1 2 $1, 657, 859 $260, 451 $127, 062
1939: J u n e
December. 2, 195 2, 506, 944 1, 943, 852 1, 811, 181 250, 725 142, 729
2, 236, 000 $40, 700 $15, 800 $55, 848
2, 386, 000 48, 400 17, 445 49, 516
546
133
909
244
997
700
802
347
2,
2,
2,
2,
2,
2,
2,
2,
560,
591,
610,
634,
664,
695,
706,
772,
900
600
200
300
200
800
300
400
655
626
496
025
203
982
990
586
27,
20,
73,
36,
30,
30,
25,
22,
150
418
111
060
928
286
278
865
70,
67,
70,
72,
68,
71,
57,
56,
990
751
943
214
665
380
686
363
216,485
206, 015
206, 094
206, 078
206, 304
141, 450
129, 437
119,461
115, 372
119, 242
2,
2,
2,
2,
2,
802,
869,
896,
924,
943,
700 127, 490
500 65, 384
100 64, 633
000 65, 947
300 57, 755
75,
37,
39,
39,
35,
228
081
605
194
122
52,
53,
69,
77,
82,
270
765
313
735
443
990, 248
1, 108, 481
217, 026
208, 777
88, 298
105, 870
1, 299, 100
1, 412, 200
27, 000
32, 000
8, 100
9,231
683
933
982
440
489
872
745
838
1,
1,
1,
1,
1,
1,
1,
1,
239,
267,
282,
297,
309,
329,
349,
387,
973
156
590
572
421
364
761
839
196, 933
197, 268
181, 724
181, 256
181, 261
181, 371
181,381
181, 431
74,428
90, 489
95, 175
99, 985
106, 674
110, 583
114,070
127, 255
1,
1,
1,
1,
1,
1,
1,
1,
538,
560,
574,
591,
602,
624,
627,
665,
000
900
000
100
400
800
600
200
31,915
29, 404
60, 489
34, 871
31, 184
37, 309
34, 092
44, 531
16, 124
11,022
49, 244
22, 643
19, 414
18, 583
14, 867
12, 135
49,
47,
48,
50,
46,
48,
38,
37,
287
435
676
305
480
307
896
715
563, 038
577, 498
599, 592
627, 545
656,899
1,
1,
1,
1,
1,
436,
458,
480,
504,
522,
443
840
866
271
675
177,
168,
168,
169,
169,
102,
92,
84,
81,
83,
1,
1,
1,
1,
1,
709,
736,
758,
780,
792,
800
900
400
100
700
87,
45,
44,
45,
38,
49,
23,
23,
23,
20,
34,
35,
45,
51,
55,
360
645
365
371
396
1940: M a y . . ._
June
July
August
September
October...
November
December
2,231
2,235
2,237
2,248
2,259
2,264
2,269
2,276
2,
2,
2,
2,
2,
2,
2,
2,
653,
708,
706,
742,
789,
832,
867,
931,
685
529
259
287
391
083
817
781
2,
2,
2,
2,
2,
2,
2,
2,
089,
129,
167,
208,
250,
291,
317,
342,
761
687
366
016
905
477
292
804
1, 981, 445
2, 019, 809
2, 039, 739
2, 059, 097
2, 085, 410
2,114,831
2, 143, 360
2, 202, 135
236,
236,
220,
220,
220,
220,
220,
220,
1941: J a n u a r y . _
February.
March
April
May.
2,282
2,289
2,292
2,297
2,302
2,
2,
2,
3,
3,
929,
959,
991,
034,
079,
247
330
565
528
396
2,
2,
2,
2,
2,
359,
384,
416,
457,
501,
057
160
680
438
582
2,
2,
2,
2,
2,
692
225
041
239
856
1939: J u n e
December.
1,383
1,397
1, 441, 058
1,574,314
1, 135,511
1, 268, 872
1940: M a y
June.. ...
July
August
September.
October
November
December.
1,415 1 1,685,324
1,421 ! 1,727,337
1,724,821
1,422
1, 750, 870
1,427
1, 775, 555
1,430
1, 804, 397
1,433
1, 829, 939
1,435
1, 872, 691
1,438
1,
1,
1,
1,
1,
1,
1,
1,
375,
403,
430,
461,
487,
514,
532,
545,
1941: J a n u a r y __
February „
March
April *
May 2
1,439
1,441
1,442
1,445
1,447
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
262,
296,
323,
354,
379,
553
913
893
081
569
629
689
789
104,
124,
129,
136,
144,
150,
154,
171,
46,
43,
86,
51,
46,
53,
49,
65,
FEDERAL
872,
890,
915,
945,
977,
744
266
054
949
162
265
873
922
047
247
973
558
810
076
674
950
587
390
058
423
852
131
618
376
582
39, 094
34, 053
STATE
1939: J u n e . __
December.
787
798
898, 353
932, 630
633, 601
674, 980
667,611
702, 700
43, 425
41, 948
38, 764
36, 859
1940: M a y
June.
July
August
September
October..
November
December.
816
814
815
821
829
831
834
838
1,
1,
1,
1,
968,
981,
981,
991,
013,
027,
037,
059,
361
192
438
417
836
686
878
090
714,
725,
736,
746,
763,
776,
784,
796,
078
754
384
576
416
605
547
966
741,
752,
757,
761,
775,
785,
793,
814,
472
653
149
525
989
467
599
296
39,
39,
39,
38,
39,
39,
39,
39,
620
645
169
825
308
258
308
358
30,
33,
34,
36,
38,
40,
40,
44,
118
644
734
259
323
117
732
092
1941: J a n u a r y . _
February _
March__~__
April.
May
843
848
850
852
855
1, 056, 503
1, 069, 064
1,076,511
1, 088, 579
1, 102, 234
796,
806,
817,
829,
844,
019
662
088
893
683
826,
837,
842,
849,
857,
249
385
175
968
181
39,
37,
37,
37,
37,
220
142
172
031
057
38,
36,
34,
34,
35,
477
879
651
296
568
16, 754
15, 463
936, 900
973, 800
13, 700
16, 400
7,700
8,214
1,
1,
1,
1,
1,
1,
1,
1,
022,
030,
036,
043,
061,
071,
078,
107,
900
700
200
200
800
000
700
200
14, 740
14, 222
26, 007
16, 154
15,019
16, 673
15, 898
21, 055
11,026
9,396
23, 867
13, 417
11,514
11,703
10,411
10, 730
21,
20,
22,
21,
22,
23,
18,
18,
703
316
267
909
185
073
790
648
1,
1,
1,
1,
1,
092,
132,
137,
143,
150,
900
600
700
900
600
39,
19,
20,
20,
19,
25, 376
13, 950
15,987
15, 818
14, 540
17,
18,
23,
26,
27,
910
120
948
364
047
540
797
243
889
332
i In addition, 3 converted Federals with assets of $1,110,000 were not insured as of Apr. 30, 1941. However, included in the 1,445 Federals is 1 Federal with assets
of $16,000
whose insurance certificate was outstanding but whose membershiD had been canceled.
2
In addition, 4 converted Federals with assets of $1,068,000 were not insured as of May 31, 1941.
July 1941
359
Table 13.—Lending operations of the Federal
Home Loan Banks
Table 14.—Government investments in savings
and loan associations 1
[Thousands of dollars]
[Amounts are shown in t h o u s a n d s of dollars]
April 1941
M a y 1941
Federal H o m e
Loan Bank
Ad- R e p a y vances m e n t s
Advances
outstandR e p a y - ing, May
Advances m e n t s 31, 1941
Boston.
N e w York
Pittsburgh
Winston-Salem _ _
Cincinnati— _
Indianapolis
Chicago
Des Moines
Little Rock
Topeka
Portland
Los Angeles
$568
644
825
789
1,062
511
1,845
592
126
353
612
1,206
$470
644
709
1,347
590
95
736
438
213
112
181
153
$362
508
556
527
554
328
1,026
93
202
104
318
1,221
$795
1,217
1,011
2,262
603
218
720
1,755
529
212
256
351
$6, 525
15, 912
13, 443
15, 490
14, 725
10, 139
24, 752
12, 018
6,695
7,214
6,045
12, 315
Total
9, 133
5,688
5,799
9,929
145, 273
J a n . - M a y 1941 __ 28, 458 84, 677
6, 186
9,884
M a y 1940
J a n . - M a y 1940__ 25, 630 69, 434
5,572
6,307
M a y 1939
J a n . - M a y 1939__ 19, 043 59, 974
Treasury
Home
Federals 2
Federals
Owners' Loan
Corporation
T v p e of operation
Oct. 1 9 3 5 - M a y 1941:
Applications:
Number _
Amount
.. _ __
Investments:
N u m b e r ._ _ _
Amount
..
Repurchases
N e t o u t s t a n d i n g investments.
157, 911
Total
4, 658
1,862
5,645
987
$50, 401 $208, 571 $65, 506 $274, 077
4, 218
733 $4, 951
1,831
$49, 300 $176, 835 $45, 249 $222, 084
$25, 629 $31, 259 $7, 969 $39, 228
$23, 671 $145, 576 $37, 280 $182, 856
M a y 1941:
Applications:
Number
Amount
Investments:
Number
Amount
Repurchases _
137, 509
State
members
0
0
5
$3, 600
4
$189
9
$3, 789
0
0
0
2
$200
0
1
$26
0
3
$226
0
1
Refers to number of separate investments, not to number of associations in
which
investments are made.
2
Investments in Federals by the Treasury were made between December
1933 and November 1935.
Table 15.—Changes in selected types of private long-term savings
[Amounts are shown in thousands of dollars]
Amounts sold during month
Period
1940: May
June
July..
August
-September
October
_ November
December
1941: January
February
March
April
May
.
Change: Last 6 m o n t h s -
Amounts outstanding at end of month
Insured
U. S. savings
savings
bonds 4
and loans 8
Life insurance l
U.S.
savings
bonds 2
$571,
533,
566,
528,
503,
573,
505,
596,
625
086
061
330
427
504
474
534
$64,
49,
72,
53,
47,
52,
50,
82,
267
600
997
359
122
221
080
207
$46,
43,
86,
51,
46,
53,
49,
65,
655
626
496
025
203
982
990
586
$2,
2,
2,
3,
3,
3,
3,
3,
868,
904,
965,
008,
043,
084,
123,
194,
936
699
940
137
626
021
036
793
522,
537,
598,
597,
604,
762
557
217
203
162
189,
120,
131,
61,
57,
276
680
961
968
744
127,
65,
64,
65,
57,
490
384
633
947
755
3,
3,
3,
3,
3,
371,
480,
598,
647,
758,
135
040
546
249
822
1, 313, 954
1, 317, 794
1, 319, 959
1, 316, 820
3,309,819
+ 28. 3 4 %
+ 0. 8 8 %
1
Life Insurance Sales Kesearch Bureau. Face amount of policies sold, excluding group insurance.
2 U. S. Treasury Daily Statement. Cash sales, including unclassified sales.
From
May 1941: Defense Savings Bonds, Series E.
3
New private investments; amounts paid in as reported to the FHLBB.
* XT. S. Treasury Daily Statement. Current redemption value. From May
1941: Defense Savings Bonds, Series E.
Mutual
savings
banks fl
Insured
commercial
banks 7
Insured
savings
and loans 8
$1,298,508
$1, 981, 445
1, 293, 293 $10, 589, 838 $12, 754, 750 2, 019, 809
1, 296, 722
2, 039, 739
1, 297, 476
2, 059, 097
1, 295, 432
2, 085, 410
1, 295, 859
2, 114,831
1, 298, 429
2, 143, 360
1, 304, 382 10, 617, 759
13, 062, 315 2, 202, 135
2,
2,
2,
2,
2,
+ 0. 26%
+ 2.41%
262,
296,
323,
354,
379,
692
225
041
239
856
+ 11. 0 3 %
5
U. S. Post Office Department. Outstanding principal, represented by certificates of deposit, excluding accrued interest, outstanding savings stamps, and
unclaimed deposits. Figures for the last three months are preliminary.
6
Month's Work. All deposits.
7
FDIC. Time deposits evidenced by savings passbooks.
8
Private repurchasable capital as reported to the F H L B B .
Federal Home Loan Bank Review
360
Postal
savings *
O
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OFFICERS OF FEDERAL HOME L O A N BANKS
BOSTON
CHICAGO
B . J . R O T H W E L L , Chairman; E . H . "WEEKS, Vice Chairman; W . H .
NEAVES,
President;
W I N A N T , Treasurer;
L. E . DONOVAN, Secretary;
C. E . BROUGHTON, C h a i r m a n ; H . G. ZANDER, J R . , Vice C h a i r m a n ; A. R .
FREDERICK
G A R D N E R , P r e s i d e n t ; J . P . D O M E I E R , Vice P r e s i d e n t ; H . C . J O N E S ,
P . A. HENDRICK,
Treasurer; CONSTANCE M . W R I G H T , Secretary; UNGARO & SHERWOOD,
H . N . F A U L K N E R , Vice P r e s i d e n t ;
Counsel.
Counsel.
NEW
YORK
DES
MOINES
Chairman;
C . B . B O B B I N S , C h a i r m a n ; E . J . R U S S E L L , Vice C h a i r m a n ; R . J . R I C H A R D -
N U G E N T F A L L O N , P r e s i d e n t ; R O B E R T G . C L A R K S O N , Vice P r e s i d e n t ;
D E N T O N C . L Y O N , Secretary; H . B . D I F F E N D E R F E R , T r e a s u r e r ; F . G .
SON, President-Secretary; W . H . LOHMAN, Vice President-Treasurer;
J . M . M A R T I N , Assistant Secretary; A. E . M U E L L E R , Assistant Treas-
STICKEL, J R . , General Counsel.
u r e r ; E M M E R T , J A M E S , N E E D H A M & L I N D G R E N , Counsel.
GEORGE
MACDONALD, Chairman;
F . V . D . L L O Y D , Vice
LITTLE ROCK
PITTSBURGH
E . T . T R I G G , C h a i r m a n ; C . S. T I P P E T T S , Vice C h a i r m a n ; R . H . R I C H ARDS, P r e s i d e n t ;
G. R. PARKER,
Vice P r e s i d e n t ;
H. H.
GARBER,
Secretary-Treasurer; R . A. CUNNINGHAM, Counsel.
W . C . J O N E S , J R . , C h a i r m a n ; W . P . G U L L E Y , Vice C h a i r m a n ; B . H .
W O O T E N , President; H . D . W A L L A C E , Vice President-Secretary; J . C .
C O N W A Y , Vice P r e s i d e n t ; W . F . T A R V I N , T r e a s u r e r ; W . H . C L A R K , J R . ,
Counsel.
WINSTON-SALEM
TOPEKA
H . S. H A W O K T H , Chairman; E . C . BALTZ, Vice C h a i r m a n ; O . K . L A R O Q U E , President-Secretary; G. E . W A L S T O N , Vice President-Treasurer;
P . F . GOOD, C h a i r m a n ; R o s s THOMPSON, Vice Chairman; C . A. S T E R L I N G ,
President-Secretary; R . H . B U R T O N , Vice President-Treasurer; J O H N
S. D E A N , J R . , General Counsel.
Jos.
W . H O L T , Assistant S e c r e t a r y ; T . S P R U I L L T H O R N T O N , Counsel.
CINCINNATI
R.
P . DIETZMAN, Chairman;
W M . MEGRUE
PORTLAND
B R O C K , Vice
Chairman;
B E N A . P E R H A M , C h a i r m a n ; B E N H . H A Z E N , Vice C h a i r m a n ; F . H .
W A L T E R D . S H U L T Z , P r e s i d e n t ; W . E . J U L I U S , Vice P r e s i d e n t ; D W I G H T
JOHNSON,
W E B B , J R . , Secretary; A. L . M A D D O X , T r e a s u r e r ; T A F T , S T E T T I N I U S
T r e a s u r e r ; M r s . E . M . J E N N E S S , Assistant S e c r e t a r y ; V E R N E D U S E N -
& HOLLISTER, General Counsel.
B E R Y , Counsel.
INDIANAPOLIS
Los
H . B . W E L L S , Chairman; F . S. C A N N O N , Vice Chairman-Vice President;
F R E D T . G R E E N E , P r e s i d e n t ; G. E . O H M A R T , 2 n d Vice P r e s i d e n t ; J . C .
MORDEN,
Secretary-Treasurer;
D E V A U L T , Counsel.
HAMMOND,
President-Secretary;
BUSCOMANN,
KRIEG
&
IRVING
BOGARDUS,
Vice
President-
ANGELES
D . G . D A V I S , C h a i r m a n ; A . J . E V E R S , Vice C h a i r m a n ; M . M . H U R
FORD, President; C . E . B E R R Y , Vice President; F . C . N O O N , SecretaryTreasurer; V I V I A N SIMPSON, Assistant Secretary.
@FedFRASER