Full text of Federal Home Loan Bank Review : June 1936, Vol. 2 No. 9

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Vol. 2

SSKjS^.

No. 9

FEDERAL

HOME LOAN BANK

REVIEW
JUNE
1936

ISSUED BY
FEDERAL HOME LOAN BANK BOARD
WASHINGTON D.C.




Federal Home Loan Bank Review

TABLE OF CONTENTS
Page

Current housing progress in England and Wales

313

Boston Federal Home Loan Bank and architects cooperate to provide a home-building service

320

Variable interest rates based on reduction of principal

322

Understandable balance sheets

327

Monthly lending activity of savings and loan associations

330

Residential construction activity in the United States

332

Indexes of small-house building costs

336

Combined statement of condition of the Federal Home Loan Banks

338

Growth and lending operations of the Federal Home Loan Banks

340

Interest rates on advances to member institutions

340

Federal Savings and Loan System

341

Federal Savings and Loan Insurance Corporation

343

Home Owners' Loan Corporation

346

Subscriptions to shares of savings and loan associations

346

Applications received and loans closed, by months

346

Summary of operations of the Reconditioning Division

346

Foreclosures authorized and property acquired

347

Foreclosures in large urban counties

347

Resolution of the Board

348

Directory of member, Federal, and insured institutions added during April-May...

348

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APPROVED BY THE BUREAU OF THE BUDGET

Federal Home Loan Bank Board
JOHN H. FAHEY, Chairman
WILLIAM F. STEVENSON

T. D. WEBB, Vice Chairman
F. W. CATLETT

H. E. HOAGLAND

OFFICERS OF FEDERAL HOME LOAN BANKS
BOSTON:

B. J. ROTHWELL, Chairman; W. H. NEAVES, President; H. N. FAULKNER, Vice President;
FREDERICK WINANT, JR., Secretary-Treasurer.

NEW YORK:
GEORGE MACDONALD, Chairman; G. L. BLISS, President; F. G. STICKEL, JR., Vice PresidentGeneral Counsel; ROBERT G. CLARKSON, Vice President-Secretary; DENTON C. LYON, Treasurer.
PITTSBURGH:

E. T. TRIGG, Chairman; R. H. RICHARDS, President; G. R. PARKER, Vice President; H. H. GARBER,

Secretary-Treasurer.
WINSTON-SALEM :
IVAN ALLEN, Chairman; O* K. LAROQUE, President-Secretary; G. E. WALSTON, Vice President-

Treasurer.
CINCINNATI:

H. S. KISSELL, Chairman; W. D. SHULTZ, President; W. E. JULIUS, Vice President; A. L. MADDOX,
Treasurer; T. DWIGHT WEBB, JR., Secretary.
INDIANAPOLIS:

F. S. CANNON, Chairman-Vice President; Fred T. GREENE, President; B. F. BURTLESS, SecretaryTreasurer.
CHICAGO:

H. G. ZANDER, Chairman; A. R. GARDNER, President; HAROLD WILSON, Vice President; E. H.
BURGESS, Treasurer; CONSTANCE M. WRIGHT, Secretary.
DES MOINES:

C. B. BOBBINS, Chairman; R. J. RICHARDSON, President-Secretary; W. H. LOHMAN, Vice Pres-

ident-Treasurer; J. M. MARTIN, Assistant Secretary; A. E. MUELLER, Assistant Treasurer.
LITTLE R O C K :

J. GILBERT LEIGH, Chairman; B. H. WOOTEN, President; H. D. WALLACE, Vice President-Treas-

urer; J. C. CONWAY, Secretary.
TOPEKA:

C. B. MERRIAM, Chairman; C. A. STERLING, President-Secretary; R. H. BURTON, Vice President-

Treasurer.
PORTLAND:

F. S. MCWILLIAMS, Chairman; C. H. STEWART, President; IRVING BOGARDUS, Vice President-

Treasurer; W. H. CAMPBELL, Secretary; MRS. E. M. SOOYSMITH, Assistant Secretary.
Los ANGELES:
C. H. WADE, Chairman; M. M. HURFORD, President; F. C. NOON, Secretary-Treasurer.




Current Housing Progress in England and
Wales

F

ROM the Armistice in November 1918
to September 30, 1935, England and
Wales provided new dwellings for more
than one quarter of their population. This
unprecedented volume of home building
has in large part brought about the economic recovery of Great Britain. It has
largely overcome the housing shortage
caused by the cessation of building during
the World W a r and by a rapid increase in
the number of families in relation to population. Finally, it has freed the Government's energies for the most determined
attack on slums and overcrowding in British history.
TABLE

Among the influential factors contributing to this home-building boom, general
recognition is given the following: a welldefined and comprehensive governmentalhousing program including subsidies for
both middle- and low-cost housing; an
adequate supply of home-financing funds
provided mainly by building societies; and
a downward trend in building costs and
interest rates. Supplementing these favorable elements, as recently emphasized by
the London Economist, a general reduction
in the cost of living has provided a "free"
margin of purchasing power to potential
home builders (table 5).

1.—Number of houses built in England and Waks between 1930 and 1935l
[Source: Report of the Minister of Health]

Number of houses provided by—
Local authorities

Years ending Sept. 30

With State
aid
1930
1931
1932
1933
1934
1935
Total
2

Total—Nov. 1918 to Sept. 30, 1935 . . .

Without
State aid

Private enterprise
With State
aid

Total

Without
State aid

49, 052
60,169
66, 434
47, 977
49, 679
32, 682

2,965
3,119
2,056
1,236
3,422
8,451

2,272
1,866
2,656
2,456
2,581
230

107, 410
129, 790
130, 830
166,644
257, 746
275, 002

161, 699
194, 944
201, 976
218, 313
313, 428
316, 365

305, 993

21, 249

12, 061

1, 067, 422

1,406, 725

809, 260

21, 249

422, 732

1, 551, 647

2, 804, 888

1

All houses over £78 ratable value (£105 in London area) are excluded.
Attention is called to the fact that thefiguresgiven are not for the calendar year but cover the period from September
30 of the previous year to September 30 of the year indicated. In a similar table published in the REVIEW for January
1935,2 the figures were for years ending March 31, so that they do not agree with these published here.
These totals do not include 14,766 dwellings for rehousing after slum clearance under legislation prior to the Housing
Act of 1930; they do include 59,826 houses completed under the Housing Act of 1930.

June 1936




313

SUMMARY OF POST-WAR HOUSING ACTIVITIES

1

to recent reports, the number of
dwellings constructed from November 1918
to September 30, 1935, totaled 2,804,888, of
which 1,974,379 were provided by private
enterprise and 830,509 by local authorities
(local governments). It is particularly
noteworthy that 442,732 of the houses initiated by private enterprise benefited by
grants from the Government (table 1). Of
the total post-War production of houses by
local authorities and private enterprise
combined, nearly 45 percent received governmental assistance.
Faced with an acute housing shortage,
demoralized building industries, high interest rates and building costs, and a pressing
public demand for adequate housing, the
post-War British Governments had no
choice but to subsidize the building of
houses. The Addison Act of 1919, the
Chamberlain Act of 1923, and the Wheatley Act of 1924 all authorized the granting
of subsidies by both the Central and local
governments. While there is sharp difference of opinion regarding the effect of the
post-War housing subsidies upon building
costs and upon the building activity of private enterprise, it cannot be denied that the
subsidy program attained its major objective, which was to relieve the physical
shortage of houses. It is estimated that
the Central Government has contributed
about 80 percent of total subsidies against
20 percent by local authorities.
By 1930 the Government was able to turn
from the quantitative aspects to the more
qualitative aspects of the housing situation,
and the Housing Act of that year provided
subsidies for slum clearance and the rehousing of displaced slum-dwellers. In
1933 all subsidies other than for slum clearance and rehousing were abolished on the
ACCORDING

^ o r a more detailed discussion of legislation, achievement, and the effects of subsidies see FEDERAL HOME LOAN

BANK REVIEW, Vol. I, No. 4, pages 103-110. See, also, "Subsidized Urban Housing in England" by Coleman Woodbury,
pages 163-190, Housing Officials Yearbook 1936. Published
by the National Association of Housing Officials, Chicago.

314




theory that building costs and interest
rates had fallen to a point where unassisted
private enterprise could take care of
normal housing demands. The Housing
Act of 1933 also established a new scheme
which aimed to enlist the cooperation of
building societies in the production of
working-class houses, to which reference is
made below. The most recent advance in
British housing legislation is the Housing
Act of 1935, which has as its primary objective the abatement and prevention of
overcrowding.
Thus, the present housing program of
the Government is supported by legislation
to deal with three broad aspects of the
problem: (1) slum clearance and the rehousing of displaced slum-dwellers, (2) the
abatement or prevention of overcrowding,
and (3) the production of additional working-class houses to meet normal demands
apart from those arising in slum clearance
and the relief of overcrowding. The ultimate responsibility for the attainment of
these objectives rests primarily with the
local authorities.
SLUM CLEARANCE PROGRAM

the post-War housing legislation
reflects considerable experimentation and
change in many respects, governmental
policy in regard to slum clearance has shown
remarkable consistency and has been well
supported by public opinion. That policy
is based on the principle that slums cannot be tolerated and that it is a proper
responsibility of the Government to clear
slums and provide for rehousing. A slumclearance campaign was virtually launched
in April 1933, when the Minister of Health
called upon all local authorities to adopt
a plan for the clearance or improvement
of all unhealthy areas within the following
five years. The result of this drive was the
adoption of a national program contemplating the clearance, within the 5-year
period from 1934 to 1938, of over 280,000
insanitary houses and the erection of nearly
300,000 new houses for their direct replaceWHILE

Federal Home Loan Bank

Review

m e n t . At the p r e s e n t time, the w o r k is b e ing c a r r i e d out u n d e r the Act of 1930, w h i c h
provides for a fixed a n n u a l g r a n t b a s e d on
the n u m b e r of displaced p e r s o n s r e h o u s e d
in n e w dwellings b y the local authority.
T h e a m o u n t of the E x c h e q u e r g r a n t is norm a l l y £2 5s ( a p p r o x i m a t e l y $11.25) p e r
y e a r p e r displaced p e r s o n a n d the contribution from local taxes is a n a m o u n t equivalent to £3 15s ( a p p r o x i m a t e l y $18.75) p e r
house p e r year, b o t h g r a n t s to b e p a y a b l e
for a p e r i o d of 40 years.
W h i l e the slum-clearance p r o g r a m authorized by the Act of 1930 h a s b e e n slow
...
,
xi
.
p
in getting u n d e r way, the r a t e of progress
h a s shown steady gains in the last two
y e a r s (table 2 ) . T h e Minister of Health
h a s r e p o r t e d t h a t u p to S e p t e m b e r 30, 1935,
a total of 68,632 houses h a d been demolished, closed, o r declared unfit for h u m a n
h a b i t a t i o n ; 112,776 houses h a d b e e n m a d e
fit for h u m a n h a b i t a t i o n ; 59,826 houses h a d
,
i . i
i Afx ™o
1
been c o m p l e t e d ; a n d 40,093 w e r e Under
construction. It is clear t h a t the gains
m u s t continue if the p r o g r a m is to be completed by 1938.
OVERCROWDING

y e a r the G o v e r n m e n t e n t e r e d the seco n d stage of its p r e s e n t housing p r o g r a m
w i t h a direct attack u p o n overcrowding of
dwellings. T h e Housing Act of 1935 sets
u p , for the first time in the history of British h o u s i n g legislation, a definite s t a n d a r d
of overcrowding by limiting the n u m b e r
LAST

of p e r s o n s w h o m a y occupy a n y dwelling,
T h e scale of occupancy b e y o n d w h i c h
p u n i s h a b l e o v e r c r o w d i n g commences is to
be d e t e r m i n e d by the following s c h e d u l e :
W h e r e a dwelling consists of:
1 room

2

persons

2 r ooms^""7/_"_"."."_"._"___-_.-.^

3 persons
3 rooms
5 persons
4 rooms
71^ persons
5 rooms
10 persons
(2 additional persons for each room in excess
of 5)
W h e r e the floor a r e a of a r o o m i s :
TT ,
Under 50 sq. ft
0 person

50 sq

ft

a n d u n d e r 70 s q

ft

%

person

70 sq. ft. and under 90 sq. ft
1 person
90 sq. ft. and under 110 sq. ft
1% persons
HO sq. ft. and over
2 persons
(The effective scale is the one which shows the
lesser number of persons permitted. Thus, in a
3-room dwelling, if the number of occupants ex£ e e d s flve> " i s overcrowded; and if the aggregate
floor
space of all rooms is less than 90 square feet,
0 nly one occupant is permissible. No account is
taken of a child under one year old, and any child
over one year and under ten is considered as onehalf person.)
T h e Minister of H e a l t h is to establish the
effective date of the law, w h i c h will v a r y
a m o n g districts, a n d thereafter violation of
the s t a n d a r d by either occupants or o w n e r s
becomes a legal offense p u n i s h a b l e by fine,
However, legal proceedings m a y not be
t a k e n until the local a u t h o r i t y h a s first offered "suitable alternative a c c o m m o d a t i o n "
to the s u r p l u s occupants. Occupants m a y

TABLE 2.—Slum clearance since October 1933 under the Housing Act of 1930
[Source: Report of the Minister of Health]

Number of houses during each 6-month period
Half years ending

Mar. 31, 1934
Sept. 30, 1934
Mar. 31, 1935
Sept. 30, 1935
1

June

In areas
marked for
clearance
21, 456
22, 811
24,195
26,176

Demolished
or closedl

8,019
10,178
14, 095
16, 795

Completed

5,701
9,345
14, 317
18, 567

Under
construction
10, 512
19, 301
24, 898
40, 093

Or declared unfit for human habitation.

1936




315

become subject to fine if they fail to accept
new quarters offered them. Landlords are
deemed to have caused or permitted overcrowding if, after being notified that overcrowding exists, they fail to make a reasonable effort toward improving the existing
conditions.
The duty of enforcing the standard in
each district is placed upon the local
authority. The Minister of Health has
stated that he is confident that "local authorities can be relied upon to use their
powers of prosecution with due discretion",
and that, "the normal procedure, even
when overcrowing constitutes an offense,
will doubtless be to assist the overcrowded
family to find other and more suitable
accommodations and, if persuasion fails,
to secure an order for their eviction."
Thus, the problem of eliminating overcrowding under the new Act hinges mainly
upon the provision of "suitable alternative
accommodations". To encourage local authorities to build additional houses for
the tenants removed from overcrowded
dwellings, the Act provides for subsidies
from the Central Government based on the
number of dwellings furnished and the
character of the rehousing. Assistance by
the Central Government is mandatory
where the alternative housing consists of
flats of not less than three stories, built on
sites costing more than £1,500 per acre when
developed. Contributions are payable annually for a period of 40 years for each flat
approved according to the following
schedule:
(In May 1936, the pound was valued at
approximately $5.)
Cost per acre

Contribution
per flat

£1,500 and under £4,000
4,000 and under 5,000
5,000 and under 6,000
6,000 and over
(Additional contribution of £1 for each £2,000
part thereof over £6,000.)

£6
7
8
8
or

When the rehousing consists of cottages
on less expensive sites, subsidies may be
given, in the discretion of the Minister of
316




Health, if it is found that the entire expense
of furnishing rehousing accommodation
would be unduly burdensome to the local
authority. Such optional subsidies may not
exceed £5 annually during a period of not
more than 20 years for each house provided. In this connection, it is worthy of
note that the overwhelming proportion of
houses built since the War, both subsidized
and unassisted, has been what the English
call the cottage type, usually 2-story, group
houses.
In order further to reduce rents charged
on the dwellings provided and to insure
responsibility on the part of the local authorities, the Act stipulates that these local
governments must contribute an amount
equivalent to one half of the subsidy
granted by the Central Government, payable in equal annual instalments for
a period at least equal to that of the
Exchequer subsidy but not to exceed 60
years. The rents charged are limited to
the amounts necessary to meet all expenses
after allowance has been made for the
grants by the Central and local governments.
REDEVELOPMENT AREAS

T H E Act of 1935 also imposes important
duties and powers on local authorities for
the redevelopment of overcrowded areas,
including those which may not require
complete clearance but are badly in need
of rehabilitation. If a local authority
finds, after inspection, that any area contains 50 or more working-class houses of
which one third are overcrowded or unfit
for human habitation; that the industrial
and social conditions are such that the area
should be used to a substantial extent for
rehousing; and that it is expedient in connection with the provision of housing that
the area should be redeveloped as a whole;
it is the duty of the local authority to declare this a "redevelopment area". The
local authority must then submit to the
Minister of Health a redevelopment plan
and, after public hearing and approval, put
Federal Home Loan Bank

Review

it into effect. Local authorities are given
power to buy land by agreement with the
owners or by condemnation proceedings if
necessary in accordance with a schedule
established by the law. This applies to
land within the redevelopment area and
also to outside land which may be required
for rehousing purposes.
Owners wishing to redevelop or recondition properties for working-class occupancy may do so, if, in the opinion of the
local authority, the improvement and continued maintenance will make the dwellings fit for habitation for a period of at
least five years. If such reconditioning is
satisfactory, the local authority will certify
to the owners that the properties will not
be demolished during the 5-year period.
MISCELLANEOUS PROVISIONS OF THE ACT OF

1935
T H E Housing Act of 1935 contains several
provisions relating to housing administration. It provides for the establishment of
a Central Housing Advisory Committee,
composed of representatives of various
groups interested in housing, to aid the
Minister of Health. Local authorities are
given power to delegate to "Housing Associations" (similar to limited-dividend corporations in the United States) the task of
building and managing housing for displaced tenants and to transfer to such organizations the subsidies granted by the
Central Government. With a view to securing continuity of management policy
and extending the scope of professional
housing management, local authorities are
given power to delegate to "Housing Management Commissions" the control and
management of any or all of their properties. To eliminate administrative difficulties which had arisen as a result of diverse
conditions governing the rent of houses constructed under different subsidy schemes,
local authorities are required to consolidate their housing contributions and accounts. This pooling arrangement will give
local authorities greater- freedom to deal
June 1936




with their houses as a whole and to adjust
rents and subsidies for all of their dwellings to meet local conditions.
HOUSING FOR THE LOWER-INCOME GROUPS
NOTWITHSTANDING the increased output of
houses during the last few years there is
in many sections of the country a decided
shortage of modern dwellings available for
rent within the means of the lower-paid
wage-earners. This aspect of the housing
problem, has been concisely stated by Mr.
Walter Harvey, Manager of the Burnley
Building Society (Building Societies Gazette, September 1935) as follows: "There
can be no doubt that the housing need of
the country, at the present time, is the
small home to let at relatively low rental,
not costing the occupier more than onefifth of his wages in rent and rates (taxes).
. . . There is a great deal of forced buying, because there is a scarcity of houses to
let in many areas, and a consequent inducement, especially to some people, to become
owners of new houses without fully realizing the long-term contract and burdens
involved."
When the general housing subsidies were
abolished in 1933, it was anticipated that
unassisted private enterprise would be able
to provide adequate housing for the lowerincome groups. As an aid in this direction, the Housing Act of 1933 sought to enlist the cooperation of building societies in
the production of working-class houses.
Under this Act, if building societies will
lend up to 90 percent of the cost or value
of a house for a period of 30 years at a rate
1 percent lower than the general rate of
interest, the Central Government and local
authorities will jointly guarantee two thirds
of the investment above the normal loan,
whatever that percentage may be. However, to receive such a guaranty, the advance must be given for the purpose of
building or acquiring houses for rent to
working-class tenants. So far this scheme
has not fulfilled the hopes of its sponsors.
Up to March 31,1935, only 5,537 houses had

317

been completed under its provisions. The
building societies look with favor upon the
plan but assert that the initiative for its
operation rests with private builders.
Despite the relative failure of the guaranty provisions of the Act of 1933, unassisted private enterprise is making an increasing contribution to the provision of
working-class houses. Of the houses built
by unassisted private enterprise during the
year ending March 31, 1935, approximately
37 percent were in a price range within the
means of the lower-paid workers. Approximately one third of this number were
built for renting.
The Minister of Health has emphasized
upon several occasions that it is the statutory obligation and duty of local authorities
to provide adequate housing for the lowerpaid workers, if private enterprise fails to
do so. It is noteworthy that building by
local governments unsubsidized by the Central Government, although of little importance in relation to total housing production, more than doubled in 1935 over 1934.
THE

ROLE OF PRIVATE ENTERPRISE AND
BUILDING SOCIETIES

T H E reliance which governmental housing
policy has placed upon private enterprise
seems to have been substantially justified.
Undoubtedly, the salient feature of housing
development in the last few years has been
the increasing activity of unassisted private
TABLE

enterprise, which in 1935 provided approximately 87 percent of a record total production.
An adequate supply of mortgage funds on
favorable terms has done much to make
possible the phenomenal performance of
private enterprise. British building societies (which correspond to savings and loan
associations in the United States) are the
dominant institutions in the home-financing field. Sir Harold Bellman, Chairman
of the Council of the National Association
of Building Societies, has estimated that
the societies have financed the purchase of
three fourths of the houses built by private
enterprise since the War. Their tremendous growth in assets following the W a r
has continued throughout the depression,
rising from £312,000,000 in 1929 to over
£555,000,000 in 1934 (table 3). During the
same period, the trend has been toward
fewer and larger institutions. Thus, although the average institution had assets
of only £551,000 in 1934, 55 percent of the
combined assets of all societies were held
by the 11 societies with assets of over £10,000,000 each.
The societies have confined their loans
mainly to owner-occupied properties and
recently to homes valued at £1,000 and
under. A special study made by the London Economist covering 98 large societies
indicated that in 1935, 44 percent of their
total outstanding mortgages were under

3.—Activities of building societies in Great Britain between 1928 and 193U
[Source: Building Societies Year Book]

End of year

1928
1929
1930
1931
1932
1933
1934

Number of
societies
1,035
1,026
1,026
1,013
1,014
1,013
1,007

Number of
shareholders l

1,130, 066
1,265, 329
1,449,432
1, 577, 905
1, 692,167
1, 747, 980
1, 856, 491

Mortgage
assets (£)

227, 532, 832
268,141, 456
316, 313, 559
360,176, 859
388, 377, 535
423, 513, 027
475, 693, 283

Total assets (£)

Amount advanced
on mortgages
during year (£)

268, 464, 781
312, 745, 883
371,164, 961
419,185, 370
469, 334, 048
501, 069, 594
555, 028, 811

58, 664, 684
74, 718, 748
88, 767, 426
90, 253,133
82,142,116
103,195, 663
124, 214, 655

1

Does not include depositors. At the end of 1934 the building societies had 694,042 depositors.
NOTE.—In May 1936 the pound was valued at approximately $5.

318




Federal Home Loan Bank

Review

£500 and an additional 41 percent, between
£500 and £1,000. Building societies normally lend from 75 percent to 80 percent
of the appraised value for a period of 20
years. However, where the purchaser cannot furnish a down payment of 20 or 25
percent, private builders have to an increasing extent guaranteed to the society
that part of a loan in excess of the usual
ratio. The mortgage interest rates charged
by building societies have been drifting
steadily downward since 1929. The study
made by the London Economist and published as a supplement to the issue of April
11, 1936, indicated that from 1929 to 1935
the average effective rate of interest on
mortgages declined from 5.78 percent to 5.20
percent.
The recent expansion and the growing
diversity of structure have brought the
building-society movement many new problems. Repayments on mortgages in addition to new money invested in both shares
and deposits have forced societies to reduce
the interest rate paid investors and to place
limitations on the amount of individual accounts. If the present rate of residential
construction declines, many societies will
face the necessity either of further restricting the inflow of new money or of entering a wider field of activity, such as the
financing of lower working-class dwellings,
urban blocks of flats, and commercial properties. Whether the home-building boom
has reached its peak is a subject of wide
discussion. Many forecasters predict that
the present rate of building will not con-

June 1936
70418—36

tinue much longer and point to a decreased
demand for medium-priced houses and to
increasing building costs during 1935
(table 4).
TABLE

4.—Index of building costsx
(1924=100)

[Source: London Economist, Feb. 15, 1936]

Year

Index
94.0
91.2
91.2
89.9
85.9
83.0
82.7
83.6

1928
1929
1930
1931
1932
1933
1934
1935

1
A composite, unweighted index of labor and building
material costs of houses in London and Manchester.

TABLE

5.—Index of cost of living in the United
Kingdom between 1929 and 1935 1
(July 1914=100)
[Source: Ministry of Labour Gazette]

Monthly average for

1929
1930
1931
1932
1933
1934
1935
1936

Index

2

164
158
148
144
140
141
143
146

1
A composite index with weights based upon pre-War
working-class family expenditures for food, rent, clothing,
fuel, and light. Retail price quotations are taken from a
large number of towns and villages in the United Kingdom,
exclusive
of the Irish Free State.
2
Monthly average of first four months.

319
2




Boston Federal Hor ie Loan Bank and
Architects Cooperate to Provide a HomeBuilding Service

I

EADERSHIP in the development of a
j home-building service plan for its
member institutions has been taken by the
Federal Home Loan Bank of Boston in cooperation with a distinguished group of
Boston architects. The latter have organized as The Small House Architectural
Associates of Massachusetts and have been
approved by the American Institute of
Architects and its Boston Chapter. A first
group of 20 small-house stock plans have
been included in a brochure printed by the
Boston Bank for distribution to its members. Through the Federal Home Loan
Bank, contacts have been made for this
architectural group with several member
cooperative banks in the Boston area. At
this writing, three institutions are installing
the service and four more contemplating
the step.
The relationship between the architectural group and the lending institution, as
well as the nature and cost of the service,
are made clear in the following statements
prepared by Architectural Associates :
PROGRAM FOR A SMALL HOUSE ARCHITECTURAL
SERVICE THROUGH COOPERATION BETWEEN M E M BER BANKS 1 OF T H E FEDERAL HOME LOAN B A N K
SYSTEM AND T H E SMALL HOUSE ARCHITECTURAL
ASSOCIATES OF MASSACHUSETTS

A.—The Small House Architectural Associates of
Massachusetts, hereinafter referred to as the Association, will organize and make available to the
banks architects of experience in small-house
w o r k and ready to provide the bank's customers
with architectural service suited to the needs of
small-house builders, whether owners or developers.
The service will consist of a special limited
architectural service, based upon stock designs,
1
The term "bank" used throughout the statement refers
to "cooperative bank" which is the usual title for savings
and loan associations in New England.

320




conferences and inspections at stated lump-sum
fees, all as outlined more in detail in appended
"Schedules of Service and Fees" for use in connection with houses costing not over $7,500.
Architects will be assigned to the service of the
bank according to the location of the building
sites involved so as to permit reasonable economy
of time and effort in providing the service, without w h i c h reasonable minimum fees cannot be
established.
The Architects will arrange to visit the bank
in order to interview clients a t such times as
the development of the service makes reasonably
desirable.
The aim of the service is to protect both the
bank and the owner or developer by insuring the
suitability of the design to the site and its neighborhood, and the adequacy of its construction,
thus reducing the cost of repairs, and maintaining a maximum resale value.
The stock plans will be made available at first
from existing sources as approved by the Association through its Design Committee. The members of the Association will later develop n e w
designs as they may be required for the reasonable service of the bank's customers, such new
designs being the property of the Association and
available through any of its members, together
with supervision.
B.—The member bank of the Federal Home Loan
Bank System, herein referred to as the bank, will
provide space at the bank for the display of
material and the conference between customers
and the architect.
The bank will arrange for the first consultation with the architect upon its approval of the
customer as to credit and character.
The bank will include in its appraised value of
the property the cost of the architect's service
and will naturally recognize the value of such
service in the terms and consideration offered to
owners or developers using this service.
The bank will act as fiscal agent for the owner
for the payment of all construction costs and
architect's fees. The scale of fees is based upon
their being paid for all services rendered, regardless of any later abandonment of the work, if
such occurs, assurance of payment being necessary to permit the naming of reasonable minimum fees.

Federal Home Loan Bank

Review

SMALL HOUSE ARCHITECTURAL ASSOCIATES OF MASSACHUSETTS—SCHEDULE OF SERVICE, DESIGNS,
CONFERENCES, AND INSPECTIONS

A.—A preliminary inspection of the site and one
2-hour conference for selection of a stock design.
This service to be rendered upon notification
from the bank that the customer has been approved for credit and character. (Covered by
1st payment on the fee.)
B.—Two 2-hour conferences in connection with
preparation of plans and specifications for bids
at the settling of contract with selected bidder.
(Covered by 2nd payment on the fee.)
C.—During construction one 2-hour conference
in connection with selection of colors, papers,
electric fixtures and other details.
Seven visits of inspection at or about the following times:
1. Soil inspection and layout of batter
boards.
2. Excavations and foundations.
3. Framing and house boarded in.
4. Ready to plaster.
5. Interior finish and floors.
6. Interior painting.
7. Final inspection for acceptance.
Reports
After each inspection a report is to be made to
the bank, indicating progress and confirming any
instructions given the builder either as to work
needing correction or as to any changes found
necessary or desirable in the plans or specifications.
D.—Designs. The Association will provide a
group of stock designs adapted to different costs
and requirements, and sufficient in number and
variety to provide reasonable freedom of choice
to clients. It cannot provide unlimited choice
and the designs must be such as are adaptable
to repeated use under average conditions. Abnormal requirements of an owner or conditions
of site, which cannot be met by minor changes
in a stock design, will require special designs.
SMALL HOUSE ARCHITECTURAL ASSOCIATES OF
MASSACHUSETTS—SCHEDULE OF FEES

Based upon the Program and Schedule of Services approved by the Association
1. First payment
Covering item A of the Schedule of
Service. This fee is to be paid by
the bank from application fee collected from owner or builder to
cover preliminary appraisal on which
security committee will act, and is to
be paid whether or not the loan is
approved
$10. 00

June 1936




2. Second
payment
Covering item B of the Schedule of
Service. This element of the fee is
to be paid on submission of bids to
the bank, the lowest bid being not
more than 10 percent in excess of
the architect's preliminary estimate,
according to the following schedule:
Cost of Construction

Fee

Under $4,500
$60.00
4,500-5,500
70. 00
5,500-6,500
80. 00
6,500-7,500
90. 00
3. Final payment
Covering item C of the Schedule of
Service. This element of the fee is to
!
be paid upon submission to the bank
of final report covering the final inspection and acceptance, according
to the following schedule:
Cost

of Construction

Fee

Under $4,500
4,500-5,500
5,500-6,500
6,500-7,500
4. Summary of payments
Cost of Construction
1st p a y m e n t
2nd payment
3rd payment
-

Under
$4,500
$10
60
45

Total fee

115

-

$45.00
50. 00
60. 00
75.00
$4,500- $5,500$5,500
$6,500
$10
$10
70
80
50
60
130

150

$6,500$7,500
$10
90
75
175

NOTE.—In each case the architect pays to the
Association a fee of $10 upon his receipt of his
second payment.
5. Extra services
Changes required in the stock designs will be
made on a time basis at the rate of $2.50 per
hour. Extra conferences or inspections desired
by the bank or the builder will be subject
to an extra charge of $5 for each such conference or inspection taking not over two hours.
6. Multiple
operations
When more than one house is built simultaneously by the same owner or builder in adjacent
locations, the total standard fee will be reduced
2 percent for each additional house up to but
not exceeding a total of 15 additional houses,
for all work exceeding 16 houses the reduction
being 30 percent.
7. Special Designs
If a special design is required by unusual conditions of site or the owner's requirements or
desires, the total fee, based upon the conferences
and inspections as provided in items A and C
of the Schedule of Services, will be 6 percent of
the total cost of construction. The excess of this
fee over the standard fee provided in the Schedule will be paid as part of the Second Payment.

321

Variable Interest Rates Based on
Reduction of Principal

T

HE gilt-edged assets of a home-financing institution are those mortgages on
which the original principal has been substantially reduced by regular and prompt
payments over the first four or five years.
These investments have given the surest
proof of certain income at minimum servicing costs and their safety increases with
every payment. These are the loans an
institution desires to keep, yet in the past
many savings and loan associations have
lost them to competitors. It has been common for borrowers from these associations
to refinance with other lenders when they
have reduced their loans to the point where
they could secure a lower rate of interest.
Obviously, the source of the trouble has
been the practice followed by savings and
loan associations of charging the same interest rate on all loans—a rate necessarily
gauged to fit the highest risks. As was
pointed out in an article on variable interest rates in the May issue of the REVIEW,
increasing competition and fair treatment
of all borrowers seem bound to bring about
the use of several different rates to fit
different degrees of risk and different
servicing costs. The adoption of such a
plan will automatically solve the problem of retaining within the association
the best quality loans. Instead of refinancing elsewhere to get the benefit of a
lower rate, the borrower who has paid off a
substantial portion of his original principal
will get the lower rate from his own association. That is, a borrower who obtains a
loan representing 75 percent of the appraised value of his home at an interest
rate, let us say, of 6 percent, will, when he
gets his principal reduced to 60 percent of
322




the appraised value, automatically have
his interest rate cut to 5y2 percent; and he
may get still further cuts as the balance outstanding and the risk are reduced.
Moreover, the borrower will know in advance that he can expect these lower terms
and so will have a powerful incentive to
reduce his loan as rapidly as possible.
Proper advertising of the plan should attract the thriftiest and most desirable type
of borrowers to the association. The retention of their loans will assure to the association a solid nucleus of grade-A investments.
How REDUCING RATES OPERATE

which adopt this plan of reducing the interest rate as the outstanding
principal of the loan is reduced will naturally be interested in the effect such reductions will have upon the rate of return and
the maturity of their loans. The accompanying tables have been constructed to
throw some light upon these questions. In
all the tables a loan of $1,000, repayable
under the direct-reduction plan by equal
monthly instalments of $8.50 is assumed.
In table 1, the loan is assumed to be
originally 75 percent of the appraised
value of the property. Each of the three
sections (A, B, and C) into which the table
is divided assumes a different interest rate
at the beginning of the loan, namely, 6, 6y2,
and 7 percent. In each section the rate is
reduced y2 percent when the outstanding
loan is reduced to 60 percent; another y2
percent when it is reduced to 50 percent;
and a final y2 percent when it reaches 40
percent. Section A contains a skeleton outline illustrating in some detail the amortization process from the first to the last
ASSOCIATIONS

Federal Home Loan Bank

Review

monthly payment. This outline is followed
by a summary statement showing the status
of the loan at the end of each interest-rate
period. Sections B and C contain only the
summary statement, as the amortization
process is the same in all three illustrations.
It will be observed in the summary statement of section A that it takes 51 months at

6-percent interest to reduce the outstanding principal of the loan from 75 percent to
60 percent of the original appraised value;
it requires 26 additional months with interest at 5y2 percent to further reduce the
principal to 50 percent of the original
value; it takes another 22 months with
interest at 5 percent to reduce the outstand-

1.—Three schedules showing the amortization of a mortgage of $1,000, secured by property appraised
at $1,333% and
paid off by equal monthly instalments of $8.50 per month (including both principal
and interest)1

TABLE

The annual rate of interest is based upon an original loan of 75 percent and is reduced as the loan is retired:
(a) When the outstanding indebtedness is reduced to 60 percent of the original appraised value, the annual rate of interest is reduced one half of 1
percent.
(b) When the outstanding indebtedness is reduced to 50 percent of the original appraised value, the annual rate of interest is reduced another
one half of 1 percent.
(c) When the outstanding indebtedness is reduced to 40 percent of the original appraised value, the annual rate of interest is reduced another
one half of 1 percent.

A.—Original annual interest rate at 6 percent, which is reduced progressively to 5% percent, 5 percent, and 4>% percent
Principal due at end of
month

Interest
Monthly
payment

Month

Credit to
principal
Rate
(percent)

Beginning of term
1st
2d

Charge

Amount

Percent of
O. A. V.»

6
6

$5.00
4.98

$3.50
3.52

$1, 000. 00
996. 50
992. 98

75

$8.50
8.50

51st
52d

8.50
8.50

6

4.01
3.66

4.49
4.84

797. 25
792. 41

60

77th
78th

8.50
8.50

3.07
2.76

5.43
5.74

663. 77
658. 03

50

5

99th
100th

8.50
8.50

5
4^

2.24
1.99

6.26
6.51

531. 94
525.43

40

170th
171st

8.50
3.88

4K

0.05
0.02

8.45
3.86

3.86
0

Total of monthly
payments

4>y2

Total credits
to principal
Number

Amount

Beginning of term
1st to 51st
52dto77th
78th to 99th
100th to 171st

51
26
22
72

$433. 50
221. 00
187. 00
607. 38

Grand total

171

1. 448. 88

1

Principal due at end of
period

Interest

Loan period (months)

1

0

Rate
(percent)

6
5#
5
4Ji

Total
charges

Amount

$230. 75
87.52
55.17
75.44

$202. 75
133. 48
131. 83
531. 94

448. 88

1. 000. 00

$1, 000. 00
797.25
663. 77
531. 94
0

Percent of
O. A. V.2
75
60
50
40
0

In this and the following tables the monthly direct-reduction plan of repayment is used.
O. A. V.—Original appraised value of property.

June 1936




323

1.—Three schedules showing the amortization of a mortgage of $1,000, secured by property appraised
at $1,333% and paid off by equal monthly instalments of $8.50 per month (including both principal
and interest)—Continued

TABLE

B.—Original annual interest rate at 6% percent, which is reduced progressively to 6 percent, 5l/2 percent, and 5 percent
Total of monthly
payments

Principal due at end of
period

Interest

Loan period (months)
Number

Amount

Beginning of term
1st to 56th
57th to 84th
85th to 107th
108th to 180th

56
28
23
73

$476. 00
238. 00
195. 50
617. 45

Grand total

180

1, 526. 95

Rate
(percent)

6H
6
5/2
5

Total
charges

Total credits
to principal
Amount

$274. 92
102. 95
63.45
85.63

$201. 08
135. 05
132. 05
531. 82

526. 95

1, 000. 00

Percent of
O. A. V.2
75
60
50
40
0

$1, 000. 00
798. 92
663. 87
531. 82
0

G.—Original annual interest rate at 7 percent, which is reduced progressively to 6% percent, 6 percent, and 5}£ percent
Total of monthly
payments

Principal due at end of
period

Interest

Loan period (months)

1st to 63d
64th to 92d
93d to 117th
118th to 191st
Grand total
2

Number

Amount

Rate
(percent)

63
29
25
74

$535. 50
246. 50
212. 50
625. 09

7
6H
6
5^

191

1, 619. 59

Total
charges

Total credits
to principal
Amount

$333.18
115. 64
75.30
95.47

$202. 32
130. 86
137. 20
529. 62

619. 59

1, 000. 00

Percent of
O. A. V.2

$1, 000. 00
797. 68
666. 82
529. 62
0

75
60
50
40
0

O. A. V.—Original appraised value of property.

ing principal to 40 percent; and it takes a
final 72 months with interest at 4% percent
to retire the loan.
Since the monthly payment is always the
same, it follows naturally that the higher
the rate of interest charged, the more slowly the principal is reduced. Thus, in section A in which the interest rate is reduced
successively from 6 percent to 4y2 percent,
the loan is fully retired in 171 months and
the total payment is $1,448.88. In section
B, with interest rate declining from 6y2
percent to 5 percent, the loan is retired in
180 months and the total amount paid is
$1,526.95. In section C, with the rate

324




dropping from 7 percent to 5y2 percent,
the time required is 191 months and the
amount is $1,619.59.
MATURITY AND RATE OF RETURN

2 shows the weighted average rate
of interest the association would receive
from each combination of reducing interest
rates illustrated in table 1. (The average
rate, it should be noted, is not a simple
arithmetic average of the different rates
used, but is a "weighted" average; that is,
allowance is made for the length of time
each rate is in effect and the amount of
the principal to which it applies.)
TABLE

Federal Home Loan Bank

Review

The significance of these weighted average rates appears when they are compared
with constant interest rates. Thus, when,
as in table 1, section A, the rate begins at
6 percent and drops successively to 4y2 percent, the weighted average return to the
lender is 5.56 percent. In other words, although the borrower is enjoying a rate of
4y2 percent during the last 72 months of his
loan, the average return to the institution
over the life of the loan is better than 5y2
percent. Where the rate drops from 6y2
percent to 5 percent, the weighted average
return is 6.10 percent. Where the rate begins at 7 percent and drops to 5y2 percent,
the average return is 6.63 percent. It
seems unnecessary to emphasize how slight
is this cost to the institution in reduced returns in comparison with the strong appeal
which the decreasing rates must make to
the borrower.
Tables 1 and 2 are based on an assumed
loan of 75 percent of the appraised value.
TABLE

Table 3 shows the results of reducing the
interest rate where the percentages of appraised value originally loaned vary from
80 percent to 40 percent. The rate schedule used is the same as that in table 1, section A, beginning with 6 percent and dropping successively to 4y2 percent. The number of months during which each interest
rate is in effect is shown for each loan.
In the last two columns are given the total
number of months required to liquidate
each loan, the total amount paid, and the
weighted average rate of interest.
Experience with the use of variable interest rates has not yet been extensive enough
to prove what the bases of variation should
be. The variable rate schedules used in
this discussion are not necessarily the best.
They are intended merely as illustrations
of the manner in which reducing rates
work. Each association will adopt the
schedule required by competition and
money rates in its territory.

2.—Summary of duration of loans and weighted average interest rates resulting from the use
different interest-rate schedules

A loan of 75 percent of the original appraised value of the property is assumed, with equal monthly payments under the monthly direct-reduction
plan of $8.50 per $1,000. The variable interest-rate schedules are the same as in table 1.

Interest-rate schedule

Variable interest rates:
1. 6—5)4—5—4}i percent
2. 6}f—6—5}£—5 percent
3. 7—6K—6—5^ percent
Constant interest rates:
4. 5^ percent
5. 6 percent
6. 6% percent
7. 7 percent

June 1936




Total number
of monthly
payments

Weighted
average rate
of interest

171
180
191

Percent
5.56
6.10
6.63

170
178
188
200

5.50
6.00
6.50
7.00

325

TABLE

3.—Summary of the amortization of loans of different percentages of the original appraised value
when the interest rate varies with these percentages
NOTE.— O. A. V.—Original appraised value of property.

In each case the amount of the loan is $1,000 which is paid off under the monthly direct-reduction plan by equal payments of $8.50 per month.

Loan (percent of appraised value)

Period during which principal
Original
appraised More
value of than 60
60-50
50-40
property percent
of percent of
of percent
0. A. V. 0. A. V. 0. A. V.

$1, 250. 00
80-percent loan
$1, 000. 00
Principal due at beginning of period....
80%
Percent of 0. A. V.."... .*
6. 00%
Interest rate
62
Principal due at beginning of period....
Percent of O. A. V.."... .*
Interest rate

Principal due at beginning of period....
Percent of O. A. V

Principal due at beginning of period....
Percent of O. A. V

Principal due at beginning of period....
Percent of 0. A. V

Principal due at beginning of period....
Percent of O. A. V.."... .*
Interest rate
Number of monthly payments

$1, 333. 33

$1,428. 57

|$1, 538.46

1
$1, 666. 67

|$1, 818.18

|$2, 000. 00
50-percent loan
Principal due at beginning of period....
Percent of 0. A. V
Interest rate
Number of monthly payments
$2, 222. 22
45-percent loan
Principal due at beginning of period....
Percent of 0. A. V
Interest rate
Number of monthly payments
$2, 500. 00
40-percent loan
Principal due at beginning of period....
Percent of 0. A. V.."... .*
Interest rate
Number of monthly payments
1

due is—
Total
Weighted
average
40 per- monthly
paycent or ments * interest
rate
less of
0. A. V.
$1, 459. 21

$746. 34 $623. 43
50%
60%
5. 50% 5. 00%
20
23

$500. 59
40%
4. 50%
67

$1, 000. 00
75%
6. 00%
51

$797. 25
60%
5. 50%
26

$663. 77
50%
5.00%
22

$531. 94
40%
4. 50%
72

$1, 000. 00
70%
6. 00%
38

$853. 93 $712. 03
50%
60%
5. 50% 5. 00%
25
29

$566. 56
40%
4. 50%
77

|$1, 000. 00
65%
6. 00%
21

$922. 71 $765. 96 $614. 59
60%
50%
40%
4. 50%
5. 50%1 5.00%
34 1
85
27

172

$833.16 $661. 41
50%
40%
5. 00%i 4.50%
32
93

$1, 000. 00
55%
5. 50%
22

$909. 56
50%
5. 00%
36

$727. 02
40%
4. 50%
104

|$1, 000. 00
50%
5. 00%
43

$796. 39
40%
4. 50%
116

$i, 666.66

$886. 07
40%
4. 50%
133

45%
5.00%
25

$1, 000. 00
40%
4. 50%
156

5.64

$1, 448. 88

$1, 000. 00
60%
5. 50%
!
39

i
.

Percent

5.56
171
$1, 435.16
5.46
169
$1, 415. 24

167

5.31

$1, 387. 03

164

5.08

$1, 371. 30

162

4.95

$1, 348. 50
4.75
159
$1, 338. 42

158

4.66

$1, 321. 50

156

4.50

The last payment is a partial one in all cases.

326




Federal Home Loan Bank

Review

Understandable Balance Sheets

T

HE statements of condition of two savings and loan associations reproduced
on the following pages were submitted to
the REVIEW in response to an article in the
May issue on the value of understandable
balance sheets. They illustrate the possibilities of making reports to shareholders
clear and even interesting. In the belief
that such balance sheets inspire confidence
and attract desirable business, the REVIEW
is undertaking to bring them to the attention of the savings and loan business. The
REVIEW, of course, does not recommend any
specific form nor does it necessarily approve every feature of statements reproduced. What it seeks to do is merely to
illustrate desirable simplicity, clarity, and
comprehensiveness.
A noteworthy feature of the accompanying statement of the Wisconsin association
is the expression of each item as a percentage of the total. Thus, it is obviously more
significant to know that real estate owned
represents 9.22 percent of an institution's
assets than that it is carried on the books
at $65,456.
This balance sheet is further distinguished by the inclusion of a statement of
net profits showing the earnings, expenses,
profits, and their distribution. This is followed by a memorandum giving some of
the more significant ratios to be noted in
analyzing the condition of the association,
such as the ratio of reserves to capital
stock, of assets to outstanding liabilities,
and of liquid assets to capital stock. On
the reverse side of the statement, which is
not reproduced here, is given a detailed report of receipts and disbursements together
with statistics on the number of members
and the number of shares outstanding.
70418—36

June 1936




Under the item Total Capital Stock in
the Wisconsin association's statement appears this explanation: "This is the total
amount that the association owes to its
shareholders." It would appear more exact to say: "This is the total amount that
the association has credited to all share
accounts."
Special attention is called to the completeness of this association's statement.
At best a balance sheet gives simply a picture of the condition of an institution on a
given day. It tells nothing as to whether
the institution is currently prospering or
suffering reverses. For this reason, information on receipts, disbursements, and
profits are essential to a complete understanding of the condition of any financial
institution.
The balance sheet of the Massachusetts
cooperative bank also gives the reader
much more than bare accounting data. It
transforms the usually mysterious financial
statement into an interesting and understandable presentation both of the institution's financial condition and of its
policies and practices. For example, the
explanatory statement under "Loans on
Real Estate" indicates how the institution
makes its loans and who benefits by them.
Incidentally, it is noteworthy that this section reveals the growing popularity of the
association's newly adopted direct-reduction plan of loan amortization.
The institution's policies with regard to
such matters of personal interest to members as loans to shareholders and payment
of taxes and insurance for borrowers in
case of need are also made clear in its
statement.
On the reverse side of the statement
which is not shown here a table gives the

3

327

CO

A SIMPLE AND UNDERSTANDABLE BALANCE SHEET

OFFICERS AND DIRECTORS
J. E. McAdam* —
G. H7 Hafemetster
E. G. Hubb
Wallace Thauer —
L. A. Knick
George Scheele —
F. C. Jaeger ,
F. G. Keck
Walter C. Block —

President
-.Vice-President
J.Secretary-Treasurer
Attorney
Director
Director
Director
Director
:
Director

STATEMENT OF NET PROFITS
For the year ended December 31, 1935
Undivided profits on/january 1,';1935^
Earnings
u+—
$43,90628
Expenses
,;..',:
10,808.76
Net earnings for ithe year
.Other profits
.

$10,000.00

33,097.52
. 1,277.28

Total profits $6*'the year.^-T

. 34,374.80

Total

. 44,374.80

—

a.

1
«^*

&3
©

3
o

_100.0%

Total

The Association has loaned this amount on
first mortgages on 221 properties, principally
homes, located in Watertown and vicinity.
These loans are repaid in monthly installments of principal and interest.
31,513.00

4.44%

15,953.21

2.25%

65,456.08

922%

These loans have been made to members of the
Association, and are secured by ( h e i r certificates. Stock loans are made up to 90%
of the withdrawal value of certificates.

JUDGMENTS

FURNITURE AND FIXTURES

3.08%

' For the year ended December 31, 1935

1,000.00

.14%

1,670.80

23%

788.99

HOME OWNERS' LOAN CORPORATION
50,000.00
BONDS

.11%

7.04%

These bonds bear interest at 2#% per annum,
payable semi-annually, and were received from
Home Owners' Loan Corporation in exchange
for judgments of foreclosure and distressed
mortgages.

ACCRUED INTEREST ON HOLC
BONDS

Total
Amount withdrawn during the year _

_ 28,311.20
-. 3,915.07

CASH ON HAND AND IN BANKS

Amount in fund on December 31, 1935-

^$24,396.13

$672,949.13 94.75%

INCOMPLETE MORTGAGE LOANS-

1441.44

.16%

359.56

.05%

DUE HOLDERS OF FORFEITED STOCK 369.20

.05?*,

BORROWERS' FUNDS

amount to one
making monthly
stock certificate,
is not known.

RESERVE FOR DEPRECIATION
ON BONDS

This is a reserve that places a net value of
$98.00 per $100.00 on $50,000.00 of Home Owners* Loan Corporation 2#% .bonds. The market price on December 31, 1935 was $99.68.

CONTINGENT LOSS FUND

572.92

.08%

7,388.26

1.04%

This is the accrued interest on $50*000.00 of
Home Owners' Loan Corporation 2#%_ bonds
as of December 31, 1935.

TOTAL ASSETS

10.10%

This is the total amount that the Association owes to its shareholders.

The Association owes this
member who has discontinued
payments on his installment
and whose place of residence

T h i s amount was advanced for borrowers
temporarily.

„$19,414.64
_ . 8,896.56

71,747.33

PAID-UP STOCK
1
. 331,700.00 46.70%
This is the amount paid to* the Association
by 305 members holding 3,317 paid-up
shares, which are issued in multiples of
$1(0.09. Dividends on paid-up shares are paid
by check on June 30 and December 31, the rate
during 1935 being 4% per annum.

This amount was received from borrowers and
is to be disbursed for loan expenses, taxes
and insurance.

This is the amount of tax certificates purchased hy the Association in connection with
mortgage loans.

Amount in fund on January 1, 1935 .
Amount added during the year

INSTAXLMENT STOCK D I V I D E N D S
This is the accumulated earnings that have
been credited on 9,876 installment shares
outstanding. Dividends on installment shares
are credited twice each year, the rate during 1935 being 4% per annum.

This is the amount due on three mortgage
loans, and will be disbursed upon request
of the borrowers!.

This is the value of office equipment, as carried on the books of the Association. Depreciation for use is charged off each year.

OTHER ADVANCES

(What the Association owes to others and its earned surplus)
Per cent
of total
INSTALLMENT STOCK D U E S
7 ~ _ $269,501.80 37.95%
This is the amount paid to the Association by
4731 members holding installment shares on
which regular payments are made each month.

TOTAL CAPITAL STOCK
21,894.91

TAXES ADVANCED

-$661,901.93
Average capital stock during the year
Total profits for the year in per cent per annum
5.19%
Capital stock on December 31, 1935
672,949.13
Reserves
*_:
35,396.13
Ratio of reserves to capital stock
:
5.26%
Outstanding liabilities
"
674,819.33
Dollars of assets to $100 of outstanding liabilities 105.25
Liquid assets
57,961.18
Ratio of liquid assets to capital stock
8.61%




..$513,977.29 72.37%

MORTGAGE LOANS

This is the balance due on six properties that
have been sold on land contracts* payable
monthly.

MEMORANDUM:

S

LIABILITIES

ASSETS
(What the* Association owns and what others owe it) Per cent
of total

LAND CONTRACTS

S&temerit of Contingent Loss Fund

ft

For the year ended December 31, 1935

The Association owns seventeen properties
that are carried on the books at present market values.

34,374.80

Association

SIXTEENTH ANNUAL STATEMENT

REAL ESTATE OWNED

-$10,000.00

&* Loan

WATERTOWT^ WISCONSIN

This is the amount due the Association on
three mortgages that are being foreclosed.

Depreciation on furniture and
.$ 309.00
.9%
fixtures
Reserve for depreciation
37.41
on bonds
Added to contingent loss fund 7,438.40 21.7%
Installment stock dividends
credited at 4% p/sr annum _ 14,653.71 42.6%.
Paid-up stock dividends paid
at 4%- per annum
11,936.28 34.7%

Undivided profits on December 31, .1935 .

Building

STOCK LOANS

Distribution o£ total profits:

"53

Watertown

.14%

24,396.13

3.44%

10,000.00

1.41%

This is a reserve fund that increases the
safety and strength of the Association, and
is to be used for the payment of any loss,
if sustained. 5% of the net earnings are added
to this fund twice each year. During 1935 a
substantial amount was added in addition
to the legal requirement.

UNDIVIDED PROFITS

...$710,215.46 100.00%

1,000.00

This »is the amount of earnings left over after
meeting all requirements.

TOTAL LIABILITIES

.$710,215.46 100.00%

number of shares, the date issued, the dues
paid, the total profits, the present value,
and the withdrawal value per share of all
outstanding series. Such a table illustrates vividly to a prospective shareholder

the manner in which his savings accumulate
over the years. There is also a brief statement by the board of directors commenting
upon the important developments of the
past year.

A SIMPLE AND UNDERSTANDABLE BALANCE SHEET

Qondensed Statement of Condition of The Needbam Co-operative Bank April
I
RESOURCES
LIABILITIES
Cash on Hand and In Banks
$259,531.86
Dues Capital

Includes cash held by tellers to meet our every-day business, cash deposited in commercial banks payable on demand, revenue stamps
*' to $100.00 convertible into cash, and also a reserve deposit
of $50,636.80
" at the
" Co-operative
~
• Central
~ tralBank.

United States Government Securities

20,000.00

These bonds are instantly convertible into cash at a present market
value of $21,120.00. There are no safer investments.

Home Owner's Loan Corporation Bonds
These bonds are the 2%% bonds received by the bank in exchange for
mortgages which were taken over by the governmental mortgage
relief agency. These bonds are guaranteed by the U. S. government,
both as to principal and interest Present market value of these bonds
is $488,279.60.

Loans on Real Estate

491,400.00

4.852,732.95

Representing conservative FIRST mortgages held largely on Needham
Real Estate, thus aiding over 1500 different families to own and pay for
their own homes. Practically all of these mortgages are being reduced
under the Co-operative Bank plan whereby the loan is entirely repaid
by monthly payments in about 12 # years under present rates of dividends. Under the new Direct Reduction Plan many other loans are
being
written
which16amortize
generally
ly i*
not over
years. the loan over varying periods running
"
, These
loans
include monthly tax payments.
Real Estat<
Estate
Loans""
are carried
under
six headings:
Cooperative Bank Form Mortgages.
.$4,005,279.72
184,150.00
Dues Temporarily Suspended Mortgages.... 284,150.00
3. Converted Common Form Mortgages..,
70,926.47
Common Form Mortgages
163,238.04
Direct Reductions Mortgages
324,250.80
Direct Reduction Mortgages under
Title No. 2 F.H.A.....,
4\887.92
$4,852,73235

Loans to Share Holders

Share Insurance Fund
Property Held by Bank Under Foreclosure

Banking House and Equipment

June 1936




396,77497

Prollts Capital
Representing profits or interest accumulated to the credit of the shareholders holding serial shares. A distribution of the profits of the Bank
ismade in May and November of each year. The last dividend declared
was at the rate of 4% and the rate of dividend paid by our Bank has
uniformly been at a higher rate than that paid by other types of banking
institutions. This is due to low cost of management and the high yield of
interest on mortgages which represents practicallyall of our investments.

2^30,400.00

587,800.00

Paid Up Share Certificates

52,485.00

These shares are similar to Matured Shares with the exception that they
may be sold by the payment of $200 per share, and need not have been
held as serial shares. The amount of these shares which may be sold is
fixed by law and few are available at the present time at our bank.

Dividends on Matured and Paid Up
Certlllcates

54,31154

Representing the last dividend of 3)4% declared on these classes of
shares and payable to the holder thereof on May 13,1936.

Other Funds Due Shareholders
10,149.09

SUSPENDED SHARES ACCOUNT
$ L95&83
Funds of serial shareholders whose address is unkown.
PERSONAL ACCOUNTS
.20,745.04
Representing partial credits of monthly payment to Bank
by many shareholders. To aid many people we have
taken partial payments during this trying period.

37,136.54

DUE ON UNCOMPLETED LOANS

85,677.72

6Z.97&85

Amount due borrower on houses in process of construction. Money is advanced on Construction Loans at
certain periods during the construction of the house.

260,525.07

Naturally during a period such as has been experienced, some people
have been obliged to give up their- homes, and the bank has had to take
over these properties. Our community has been more forttmate than
many others in this respect however, as the percentage of property held
by our bank as compared to our assets is about 4% while the average
for the entire state is around 8%. All of these properties are in good
repair, many are profitably rented and the total assessed valuation of
our properties amounting to $348,025.00 is much larger than the amount
we carry this asset on our books as is shown above. This item is substantially less than thefigureof a year ago.
This item represents our banking home and other equipment owned by
the Bank necessary for the conduct of its business, and represents a
substantially less amount than either the cost, replacement value or
assesssed value. The assessed value of the building and land alone
is $31,850.00.

$2,016,238.00

This item represents the total amount paid in by shareholders on the
purchase of the serial shares of the Bank.. This type of shares art
payable in monthly installments of $1.00 per share per month, until the
amount accumulated together with interest totals $20000. An individual maypayfrom$1.00to $40.00 a month and joint accounts may
pay up to $80 a month.

Matured Share Certificates

Thisfigurerepresents cash advanced by the bank for the purpose of
paying taxes and insurance on properties mortgaged to the Bank. This
money is being repaid to the bank in most cases in regular installments
plus interest. This item is V3 less than the total of last year, which is
an encouraging sign.
This item represents your bank's share invested with the Co-operative
Central Bank for the purpose of guaranteeing the full payment of shares
of any Massachusetts Co-operative Bank in the event of forced or voluntary liquidation. It provides another measure of safety for your funds.

1936

This item represents serial shares which have been fully paid and the
funds then left with the bank for investment This type of shares may
often be. secured when some certificate holder wishes to dispose of
same. Dividends are declared semi-annually, the last dividend being
at the rate of 3 # # .

These loans represent funds loaned to shareholders with the shares of
the borrower pledged as collateral security for the loan. 9 0 $ of the
value of the shares pledged is the maximum amount which the bank is
allowed to loan on this class of-loans.. There are three classes of
such loans:
1. Loans on Serial Shares
$34,975.00
2. Loans on Matured Shares
13,295.00
3. Loans on Paid-up Shares....,
4,215.00
$52,485.00

Taxes and Insurance Paid

St

20,000.00
$6,003,960.51

GUARANTY FUND
SURPLUS FUND
RESERVE FUND

$5,671,202^3
202,105.93
110,000.00
20,652.35

The above three items, totalling $332,75&28, represents the amount
accumulated over a period of years and placed in these accounts after
the payment of generous dividends by the directors of the Bank for the
purpose of protecting the investment of the individual shareholder.
The percentage of these funds to our total assets is over 5% which
is somewhat larger than the averagfe for the entire State of banks our
size. These funds, together with the care and conservatism which the
directors and officers have always observed in handling funds entrusted
to their care guarantees the absolute safety of the money invested in
the shares of the Needham Cooperative Bank.

$6,003,960.51

329

Monthly Lending Activity of Savings
and Loan Associations

D

URING April, 2,494 savings and loan
associations representing every State
reported total loans for all purposes of
$34,640,900. The number of associations
actually making loans during the month
was 1,926 while 568 reported no loans made.
The combined assets of all reporting associations as of April 30, 1936, were $2,135,920,800.

The accompanying table breaks down by
States and by Federal Home Loan Bank
Districts the number and volume of loans
and the purposes for which they were
made. It will be seen that for the United
States as a whole the reporting associations
made mortgage loans on 1- to 4-f amily nonfarm homes of $30,930,600. These loans
were made to 14,197 borrowers.
Analyzing the loans on nonfarm homes
according to the purposes for which they
were made, we find 25.4 percent in dollar
volume were for new construction; 30.7
percent for the purchase of homes; 35.1 percent for refinancing; and 8.8 percent for
reconditioning.
Because not all associations reported for
both months, it is impossible to make a
comparison of lending activities between
April and March. However, it is interesting to note that the 1,869 associations which
reported making loans in March advanced
$25,414,000 on 1- to 4-family nonfarm
homes.
Comparison of the number and volume
of construction loans made by States with
the number and cost of dwelling units for
which permits were granted in April (see
table, page 334) affords some suggestive information. Thus, California which leads
the country in rate of new home construc330




tion, granted permits for 1,792 1- and 2family dwelling units in cities of 10,000
population and over during April. The
estimated cost of these units was $6,759,300.
From the accompanying table it will be
seen that during April the savings and loan
associations reporting from California
made 571 construction loans totaling
$1,912,000. In other jurisdictions of high
building activity, including particularly the
District of Columbia, Florida, Ohio, and
Texas, the proportion of construction loans
made by savings and loan associations was
also high.
These monthly reports from savings and
loan associations on their lending activities were first requested by the Federal
Home Loan Bank Board in January. The
number of associations from which reports
have been solicited has varied from 8,500
to over 10,000, including building and loan,
savings and loan, and homestead associations, and cooperative banks operating under State charter, and Federal savings and
loan associations. The response to date
from State-chartered institutions has been
relatively small. Because of the great
value of these reports to the savings and
loan business in making it possible to present the public with a concrete figure of
business done, all associations are urgently
requested to cooperate in making a full
monthly return possible. It should again
be emphasized that reports are valuable
even if no loans are made in any one
month. Specific reports eliminate the necessity for estimates which are bound to
contain some element of error. The reporting form has been made as simple as
possible to reduce to a minimum the effort
involved in filling it out.
Federal Home Loan Bank

Review

Monthly lending activity, total assets, and mortgages held, as reported by 2,494 building and loan associations
in April 1936
[Source: Monthly reports from building and loan associations to the Federal Home Loan Bank Board]
(Dollar amounts are shown in thousands of dollars)
Loans made in April according to purpose
Mortgage loans on 1- to 4-family nonfarm homes

'Number of associations
Federal Home Loan
Banks Districts and
States

UNITED

i

r

o
a

Construction

Home purchase

Refinancing

Repairs and
reconditioning

©
CO

1

Total loans all
purposes

Total

ID®

.a *

la

£

]

£

I

fc

i

fc

%

! fc '

1

3
o

a
<

j

I

I

STATES

2,494 568 1,926 2,559 $7,847.4 3,944 $9,498.3 4,501 $10,847.5 3,193 $2,737.4 14,197 $30,930.6 16, 613 $34,640.9 $2,135,920. 8
150 22 128 112 393.3 241 678.1 ~~167
52577 ~ 2 5 9 234.4
931 2, 020. 3 223, 528. 4
779 1, 831. 5
22
25 1 3
40.7
13
32
116.0
287.1
145
46
18.0
39 112.4
297.6
130
13, 408.4
5
16
11
13
28.8
13
1
20.4
55.6
54
10
0.5
63.4
5.9
37
3, 973. 9
86 11
75
69
45 210.8 138 371.2
958.2
236.6 134 139.6
445
1,084.7
171, 077. 4
386
New Hampshire...
1
12
8
26
15
11
146.3
21
11.6
65.7
50.5
83
159. 2
18.5
8, 887. 3
70
0
4
37 134.4
23
283.2
37
4
15
43.2
60.2
153
307. 9
45.4
22, 573. 2
112
7
2
14
15
4 _ 14. ?
101.1
11
42.0
51
5
37.3
107. 5
7.0
3, 608. 2
44
No. 2—New York.... 288 "132 156 232 651.6 204 701.3 405 1, 503. 8 156 189.1
997 3, 045. 8 1,187 3, 435.7 354, 284.4
396 1,496.9 i 156,939.1
173 110
63 1 25 157. 3 1 39 127.4 233
915.6
21
26.0
318 1, 226. 3
New York
115 22
791 1 1, 938. 8S 197,345.3
93 207 494.3 165 573.9 172
588.2 135 163.1
679 1, 819. 5
572 1,159.7 111, 950.1
99775
39775 ~105 121.7
No. 3—Pittsburgh... 256 1 0 7 ~TA9 | 45 119.8 "175 358.5 ^ 5 8
483
3
53
12
18.2
45.6
36.6
5
9
8
3.7
9
5.7
5
9.0
5,100 1
27
385
221 100 121
734.7
26
862. 9
69
99.9
287. 8
70.2 124 276.8 114
95, 031. 2
333
4
134
42
23
226.2
14
28
18.1
19
63.5
100. 7
251. 2
43.9
39
11, 818. 8
123
N o . 4—W i n s t o n 241 34 207 412 1, 241. 8 614 1, 726. 0 407 1, 043. 9 421 331.7 1,854 4, 343. 4 2,107 4, 690. 5 i 182,314.6
14
1
26
24.7
130. 5 1 12, 829. 6
113. 3
118
18
13
18.4
46
59.1
19
11.1
109
District of Colum0
480
12
325. 7
1,
896. 0
84
57.7
82, 312. 6
1,
861.9
12
71 438.4 236 1, 040.1
65
456
8
302 1 791.3
47
57
87.2
10, 222. 6
723. 9
Florida
39
88 342.5
62
52 132.3
161.9
259
2
198
38
312.
4
54
8, 541. 7
290.3
36.2
36
34
51
38
78.2
120.1
55.8
177
113
37 13
254. 4 1 22t 481. 4
12 i 11.8
24
18
23
47
98.4
61.0
100 j 244.1
72.9
1
399
35
634.1
87
506.
6
North Carolina
34
82 141.2
68
1
64.5
84 159.6
21, 357. 8
141.3
321
4
242
32
348. 4
56 I 32.1
326. 9
28
73 140. 7
49
32
8, 584. 5
63.6
90.5
210
South Carolina....
5
255
26
323. 4
53
276. 4
21
20
43
15, 984. 4
31.1
84.3
222
31.9 106 129.1
No. 5—Cincinnati.... ~~350
~~273 ~~231 820.9 827 2,120. 7 ~ 6 5 2 1, 538. 8 556 609. 6 2, 266 | 5, 090. 0L2,610 j 5,52570 374,277.1
628. 3
38, 862. 8
567. 3
85.0 I 317
254.1 100
50 12
26
38
54.7
79 173.5 112
391
Ohio
267 63 204 145 659.6 710 1, 886. 8 393 1, 032. 4 409 483.0 1, 657 4, 061. 8 1, 919 4, 428. 4 327, 542. 5
2
468. 3
460. 9
41.6
7, 871. 8
47
252.3
33
38
60.4 147
31
60 106. 6
292
300
No. 6—Indianapolis.. """151 ~ 2 5 ~T26
57975 """407 234.1 1, 073 1,433.5 1,261 1,696.9 155,957.1
76 233. 0 ~ 2 4 7 386.9 343
983 I 1,095.2 105, 761. 4
990. 5
106 17
27
435.9 351 193.1
846
Indiana
61.2 197 300.3 271
89
278 |
601.7
8
50,195. 7
443. 0
41.0
143. 6
56
86.6
50
227
37
_ 45
49 171.8
72
265 ~1*8 ~~207 ~~T26 396.8 " 3 3 5 879.5 ~~457 1,365.1 "~252 267.1 1,164 2,908.5 1, 321 3,193. 3 205,129.8
872 2,220.2 1, 004 2,449.9 134, 702. 2
Illinois
57 196.6 249 684.4 373 1,140. 5 193 198. 7
189 45 144
317
743. 4 1 70, 427. 6
224.6
688. 3
84
59 1 68.4
86 195.1
292
76 13
63 200.2
63
96875 252 107. 9 1,012 2, 018. 8 1,177 2,179.8 105, 393. 2
No. 8—Des Moines... ~~178 ~~32 ~T46 ~~151 467.7 ~~222 474.7 ""387
276
431. 0
408. 8
54
22.8
98
192.2
63 100.5
20, 592. 4
245
51 11
30
93.3
40
662. 7
19, 559.4
620.7 ! 292
55
35.9
337.3
42 11
47 118.6 110
250
38 128.9
31
569 1,033.6
62, 528. 8
937. 6
43.1
423.3 133
72
74 234.6 100 236.6 172
479
66
6
18
28.8
29.1
1, 690.9
3
10.5 1
3.9
13.0
North Dakota
1
8
17 |
5
1.4
4
5
9
22 |
1, 021. 7
23.4 i
5.2
22.9
5
2._2
4
8
6.0
21
4
4
9.5
0
South Dakota
4
87, 008. 8
896.1 169 157. 3 1,248 2,180.3 1,421 2,515.7
No. 9—Little Rock... 217 "~39 "~178 243 623.0 250 503.9 586
194
253.1 !
208. 4
73.2
29.9
44.5
50
148
39
Arkansas.
37
60.8
7, 085. 2
36
30
29
1
342
923. 5
718.6
T/miriana, ,
218.5
40, 648. 2
60.4
63
39
42
279
34
66 182.6 111 257.1
8
51
2, 655.9
66.3
49.6 1
5.6
9.4
4
15
12.1
23
37
7
16
22.5
7
11
21
688. 3
36.9
36.8
4.7
14.7
6
1.7
7
10
20
2
15.7
2
8
5
813 1,235.9
35, 931. 2
584.1
70 1 52.9
105 21
764 1,166.9
84 131 341.4 101 188.5 462
49673 "~275 224. 2 1,038 1,880.6 i 1,320 2, 351. 7 127, 054. 8
No. 10—Topeka
~ l 6 5 ~ 2 4 ~~l41 ~ 1 6 2 469.5 ~"358 690. 6 243
125
228. 4
195.4
14.0
59.4
15
30
93
32
52.1
28
16
69.9
Colorado
4
24
8, 432. 4
329
606. 9
527.5
60.1
115. 0
56
55
30, 242.1
273
Kansas
63 16
55 155.5 107 196.9
47
404
649. 0
537.8
95.1
83
171. 7 127
326
43, 859. 3
78 136.6
Nebraska
31
38 134.4
1
30
462
867. 4
619.9
75
55.0
346
150. 2 I 77
44, 521. 0
43
53 127.5 141 287.2
3
40
69, 582. 2
621.4 "Trl 138.3
883 1, 629.1 1,112 2, 001. 7
No. 11—Portland
98 "~T98 486.1 205 383.3 ~ 3 0 9
~ 1 0 9 ~Ti
138
181.5
216.9
20.1
69.4
25
48.8
33
111
28
3, 458. 2
Idaho
25
43.2
0
9
9
101
152.4
179.1
[
16.2
32.3
18
52.4
19
8, 324. 3
81
25
19
51.5
Montana
0 r 9
T9
260
319.5
472.1
41
36.7
83.3
45
101. 9
15, 915. 8
177
48
Oregon
43
97.6
2 T21
f23
54
98.4
7
91.1
5.7
19.0
13
32.8
5, 460. 2
45
10
15
33.6
Utah
2 t 7
9
537
976. 3
35, 639. 4
75
835.7
50.5
88 166.3 197
381. 2
448
88 237.7
5
51
46
784.3
22
58.9
5
48.9
13.5
2
6
3J
9.1
21
8
22.5
2
6
* 8
9 l O 170 122.0 1, 400 3, 571. 6 1,594 3, 870. 6 139, 440. 3
No. 12—Los Angeles. "~124
"~1T7 577 1, 943. 9 ~~266 594.8 ~~387
46.1
17
45.1
0.0
25.4
0
16
13
0.0
3
0
371.7
Arizona
2
19.7
1
1
868.3 168 120.3 1,363 3, 461. 8 1,554 3, 759. 4 137, 664. 7
119
California
6 113 571 1, 912. 0 255 561.2 369
2.8
2
2.8
0.0
0
144.9
0.0
2
2.8
0
0
0
2
0.0
£ Nevada
1
1
62.3
21
1.7
61.9
2
17.2
30.8
5
1, 259. 0
19
0
12.2
3
Hawaii
2
2
9

June 1936




331

Residential Construction Activity in the
United States

W

ITH 12,098 family-dwelling units authorized by permits in all cities of
10,000 and more population, April was the
best month in home construction since
May 1931 when permits were granted for
14,283 dwelling units (chart 1 and table 1).
Compared with April 1935, the number of
dwelling units authorized jumped 73.1 percent and the estimated cost rose 96.7 percent. Chart 1 reveals that the rate of increase in both number and cost of units
provided continued to rise sharply.
A striking feature of the month's activity
was the continuation of the high proportion of 1- and 2-family type dwellings authorized. They accounted for 80 percent
of all units, while 3- or more-family structures accounted for only 20 percent. In
April 1935, on the other hand, the 1- and 2family units accounted for only 67 percent.

The average cost of 1-family units authorized in April was $4,459 compared with
$3,758 in April 1935. This was a rise of
18.7 percent and may be contrasted with a
12.9 percent drop in the cost of units in multifamily dwellings during the same period.
BUILDING ACTIVITY BY FEDERAL HOME LOAN
BANK DISTRICTS
CHART 2 and table 2 reveal in what Federal
Home Loan Bank Districts the heavy activity in residential building is taking place.
The Los Angeles District continues to be
well out in front with a rate of 51 units per
100,000 population. It is followed by the
Winston-Salem District with a rate of 32
units. Other Districts which are above the
national average are Little Rock, Topeka,
Portland, and New York. Compared with
March, only the Little Rock District showed

CHART I.—NUMBER AND COST OF FAMILY DWELLING UNITS FOR WHICH PERMITS WERE GRANTED. BY MONTHS
Cities of 10,000 or more population: 1936 compared with selected periods
[Source: Federal Home Loan Bank Board. Compiled from residential building permits reported to U. S. Department of Labor]

NUMBEIH OF UNITS
12

J N 1 T S

OF UNITS

PROVIDED

60.000

7
—'

COST

PROVIDED

J936, I

10
1w

9

\

I

\

^

50000

iass

50000

i

40.000

40.000

!

O

\

1!£
30.000

• * * *

o

>**'\

X

<

W r*-j<9

I

T H O U !

j.

s

x ^

//

/

m>T*

y*

'N

AW

}1

\

V

N

*,
20,000

.-.-, .+'*

X

—
lOjOOO

«

L_

^f'

•«...

0 j * - I4

30.000

20.000

<

10,000

t-

AVG.

L*^

**'

t

'

\

1

ft

332




Federal Home Loan Bank

Review

a recession in rate of building and every
District registered rates of activity above
those of April 1935.
The attention of member institutions is
again called to the detailed figures in table
2 on number and cost of dwelling units au-

thorized in each State. A monthly study
of the number of 1- and 2-family dwelling
units for which permits are granted in their
States should give lending institutions an
idea as to whether they are getting their
share of home-construction loans.

CHART 2.—RATE OF RESIDENTIAL BUILDING IN THE UNITED STATES AND IN EACH FEDERAL HOME LOAN
BANK DISTRICT BY MONTHS
Represents the estimated number of family dwelling units provided per 100,000 population, based upon building permit records for
all cities of 10,000 or more inhabitants
[Source: Federal Home Loan Bank Board. Compiled from reports to U. S. Department of Labor]
- L E G E N D 1936
1935
—
U.S. AVERAGE 1936.
OISTRICT 3-PITTSBURGH
DISTRICT 4-WINSTON SALEM
DISTRICT 2-NEW YORK
DISTRICT \ - BOSTON
60

60

50

50

40

40

1936

30

1936

20
10

1

-J~V

30

^ 7

1

^1935 M 2 0

r--' I5i§

&

1933

0

M933 H

—3=J
«.
'JFMAMJJASOND

DISTRICT 5-CINCINNATI

0

JFMAMJJASOND

JFMAMJJASOND

JFMAMJJASOND

DISTRICT 6 - INDIANAPOLIS

DISTRICT 7-CHICAGO

OISTRICT 8 - P E S MOINES

60

60

50

50

40

40

30

30

20
10
0

m

r

20
L' I93fi

10

-1933

0

JFMAMJJASOND

JFMAMJJASOND

JFMAMJJASOND

JFMAMJJASOND

DISTRICT 9-LITTLE ROCK

DISTRICT IO-TOPEKA

DISTRICT 11-PORTLAND

DISTRICT 12-LOS ANGELES
60

60
1936

to
*

50

50

40

40

30

-T^-FT

30

4936

p/l/^

20

Mn-^^^ J
"JFMAMJJASOND

June 1936



JFMAMJJASOND

20
10

JFMAMJJASOND

JFMAMJJASOND

333

TABLE

1.—Number and estimated cost of new family-dwelling units provided in all cities of 10,000
population or over in the United States in April 19361

[Source: Federal Home Loan Bank Board. Compiled from residential building permits reported to U. S. Department of Labor]

Total cost of units (thousands
of dollars)

Number of family units
provided

Average cost of family units

Type of structure
Apr.
1936
All housekeeping dwellings... 12,098
Total 1- and 2-family dwell9,684
ings
8,822
1-family dwellings
790
2-family dwellings
72
Joint home and business 2
2,414

Apr.
1936

Apr.
1935

+96.7

$4, 016

$3, 533

+ 13.7

17,197.1 + 143.0
16,032.1 + 145.4
996.1 + 119.4
168.9 +53.1
-9.4
7, 500. 5

4,315
4,459
2,767
3,592
2,815

3,682
3,758
2,782
3,672
3,233

+ 17.2
+ 18.7
—0.5
-2.2
-12.9

Apr.
1935

Percent Apr. 1936 Apr. 1935 Percent
change
change

6,990

+73.1 $48, 580. 2 $24, 697. 6

4,670 + 107.4
4,266 + 106.8
358 + 120.7
46 +56.5
+4.1
2,320

41, 785. 8
39, 341. 6
2,185. 6
258.6
6, 794. 4

Percent
change

1
Estimate is based on reports from communites having approximately 95 percent of the population of alTcitiesjarith
population of 10,000 or over.
* Includes 1- and 2-family dwellings with business property attached.

2.—Number and estimated cost of new family-dwelling units provided in all cities of 10,000
population or over, in April 1936, by Federal Home Loan Bank Districts and by States

TABLE

[Source: Federal Home Loan Bank Board.

Compiled from residential building permits reported to U. S. Department of Labor]

All residential dwellings
Federal Home Loan Bank
Districts and States

Number of familydwelling units
April
1936
12, 098

April
1935

All 1- and 2-family dwellings

Estimated cost
(thousands of dollars)
April
1936

April
1935

Number of familyEstimated cost
dwelling units
(thousands of dollars)
April
1936

6,990 $48, 580. 2 $24, 697. 6

9,684

April
1935

April
1936

April
1935

4,670 $41, 785. 8 $17,197.1

674

383

3, 374. 0

1, 718. 6

579

380

3,153. 8

1, 711.1

121
33
369
20
126
5

73
43
175
14
67
11

598.6
100.9
2,128. 2
59.6
453.7
33.0

339.7
122.8
937.2
34.3
243.1
41.5

121
26
315
20
92
5

73
43
172
14
67
11

598.6
97.3
1, 981. 6
59.6
383.7
33.0

339.7
122.8
929.7
34 3
243.1
41.5

2,698

1,957

10, 821.1

7, 339. 6

1,268

667

6, 303. 9

2, 586. 4

312
2,386

115
1,842

2, 021. 7
8, 799.4

627.2
6, 712. 4

312
956

108
559

2, 021. 7
4, 282. 2

602.0
1, 984. 4

No. 3—Pittsburgh

769

262

4, 245. 8

1,195. 3

747

201

4, 213. 7

1, 005. 7

Delaware
Pennsylvania
West Virginia

14
680
75

8
176
78

89.9
3, 865.4
290.5

35.0
930.6
229.7

14
668
65

8
163
30

89.9
3, 850.4
273.4

35 0
851 1
119 6

1,607

1,485

5, 500.1

4,428.1

1,219

659

4, 554.4

2,181.4

57
531
357
108
122
179

26
238
152
764
58
104

91.8
2,189. 6
1, 037. 6
284.5
478.2
577.9

46.8
941.1
367.6
2, 201. 0
203.9
267.3

57
234
309
108
122
167

26
115
146
89
52
100

91.8
1, 464. 8
952.3
284.5
478.2
557.9

46 8
706.6
362 6
217 0
201 6
264.4

No. 1—Boston
Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont
No. 2—New York
New Jersey
New York

Alabama
District of Columbia
Florida
Georgia
Maryland

334




Federal Home Loan Bank

Review

2.—Number and estimated cost of new family-dwelling units provided in all cities of 10,000
population or over, in April 1936, by Federal Home Loan Bank Districts and by States—Continued

TABLE

All residential dwellings
Number of familydwelling units

Federal Home Loan Bank
Districts and States

April
1936

All 1- and 2-family dwellings

Estimated cost
(thousands of dollars)

April
1935

April
1936

April
1935

Number of familyEstimated cost
dwelling units
(thousands of dollars)
April
1936

!

April
1935

April
1936

!

April
1935

No. 4—Winston-Salem—Con.
South Carolina
Virginia

85
168

58
85

$234.1
606.4

$116. 7
283.7

72
150

47
84

$180.1
544.8

$98.7
283.7

No. 5—Cincinnati

517

218

2, 789. 7

1, 009.1

484

211

2, 689. 9

976.3

Kentucky
Ohio
Tennessee

80
356
81

46
125
47

273.7
2, 292. 3
223.7

168.2
727.3
113.6

80
326
78

42
122
47

273.7
2,193. 8
222.4

156.8
705.9
113.6

No. 6—Indianapolis

707

263

3, 650. 4

1, 273. 9

701

258

3, 635. 4

1, 268.2

95
612

58
205

378.0
3, 272.4

200.3
1, 073. 6

95
606

53
205

378.0
3, 257. 4

194.6
1, 073. 6

524

209

2, 828.4

1, 034. 7

519

209

2, 810. 4

1, 034. 7

Illinois
Wisconsin

273
251

101
108

1, 720. 9
1,107. 5

569.8
464.9

273
246

101
108

1, 720. 9
1, 089. 5

569.8
464 9

No. 8—Des Moines

653

436

2, 250.4

1, 414. 9

609

436

2,160. 4

1, 414. 9

134
192
275
9
43 i

104
111 1
183
22
16

428. 8
717.9
994. 6
24.2
84.9

237.2
381.5
697.6
66.6
32.0

129
170
258
9
43

104
111
183
22
16

422.9
681.9
946.5
24.2
84.9

237 2
381.5
697.6
66.6
32.0

917

551

2, 640.4

1, 203. 0

901

512

2, 606.4

1,132. 2

679

13
54
11
3
470

66.5
298. 5
181. 2
100. 6
1, 993. 6

67.1
96.3
26.3
6.5
1, 006. 8

33
97
70
38
663

9
37
11
3
452

66.5
298.5
181.2
100.6
1, 959. 6

61.0
57.0
26.3
6.5
981.4

498

214

1, 689. 0

690.3

490

183

1, 670. 3

630.3

108
104
72
214

75
56
25
58

426.
333.
268.
660.

291.1
155. 4 i
92.6
151.2

104
104
72
210

48
56
25
54

410.8
333.8
268.2
657.5

236.1
155. 4
92.6
146.2

401

218

1,186. 6

590. 5

339

190

1, 087. 9

511.7

31
65
66 !
40
179 1
20

13
19
29
11
140
6

30.3
39.8
109. 3

343.8
20.5

20
53
66
34
154
12

13
19
25
11
116
6

61.3
161. 9
254.2
106.8
457.9
45.8

30.3
39.8
97.3
46.8
277.0
20.5

Indiana
Michigan
No. 7—Chicago

Iowa
Minnesota
Missouri
North Dakota
South Dakota
No. 9—Little Rock
Arkansas
Louisiana
Mississippi
New Mexico
Texas

I

1

No. io—Topeka
Colorado
Kansas
Nebraska
Oklahoma
No. ii—Portland
Idaho
Montana
Oregon
Utah
Washington
Wyoming
N o . 12—Los Angeles
Arizona
California

June 1936




i

33
97
70 |

38

8
8
2
2

79.5
172. 9
254. 2
124. 8 1
487. 9 i
67.3

46.8

2,133

794

1 7,604.3

2, 799. 6

1, 828

764

6, 899. 3

2, 744. 2

26
2,097
10

6
784
4

95.0
7, 464. 3
45.0

22.6
2, 763. 5
13.5

26
1, 792
10

6
754
4

95.0
6, 759. 3
45.0

22.6
2, 708.1
13.5

335

Indexes of Small-House Building Costs

T

HE June costs of building the same
typical 6-room house in the group of
cities which first reported in March are published in the accompanying table. Comparison with the revised figures for March
gives a preliminary indication of the movement of costs in each city. Attention is
called to the revisions in the preliminary
March cost figures which were published
in the March REVIEW. The greatest change
is that for Philadelphia, Pennsylvania, for
which a revised cost of $4,661 supplants
the preliminary report of $5,494. For San
Antonio, Texas, the revised March figure is
$5,392, replacing a preliminary figure of
$5,958. This revision brings the San Antonio costs in line with those reported for
June in Dallas and Houston.
A revision downward of $286 from the
preliminary figure reported in March for
San Diego brings the corrected figure for
that city to $5,234. This, coupled with an
upward revision to $5,302 of the preliminary costs for Los Angeles, brings the costs
reported by these two neighboring cities
very close together.
As was foreseen and pointed out in the
initial articles on the building-cost indexes,
the revised figures show some changes from
the preliminary figures published in March
for every city. The inevitable complexity
of the reporting system and the difficulties
of defining exactly the quality of materials
on which prices are asked can only be overcome by time and intensive instruction. It
is believed that the major errors have been
eliminated and that with the third report
from this group of cities (due in Septem-

336




ber) the figures may be accepted with some
finality.
Turning now to the costs reported for
June, we find that Reno, Nevada, reporting
a cost of $6,193, or 25.8 cents per cubic foot
occupies the high position. It is closely
followed by Phoenix, Arizona, and Albuquerque, New Mexico, in the Mountain-State
section. The second highest costs in these
four Federal Home Loan Bank Districts,
however, are reported by Cleveland, Ohio,
where costs for June rose to $6,123. The
rise of $177 reported for this city between
March and June is due to an advance in
hourly wages of building labor.
The city in the June group reporting the
lowest cost is Philadelphia, with $4,925, or
20.5 cents per cubic foot. These low figures
are in line with costs reported in April by
Washington, Baltimore, and other Coastal
cities to the south.
Comparing movements in costs from
March to June, the major trend seems upward. Of the 21 cities reporting for both
months, 11 registered an increase, 6 remained substantially unchanged, and only
4 showed a drop. Los Angeles was the only
city reporting a drop in the 3-month period
of more than $100. This was accounted for
by a decline in lumber costs.
In an attempt to give as wide a geographical distribution of different cost areas
as possible, the REVIEW has dropped some
of the cities from which reports were asked
in March and added certain new cities. The
notable additions are Pittsburgh, Pennsylvania; Cincinnati, Ohio; Dallas and Houston, Texas; and San Francisco, California.

Federal Home Loan Bank

Review

Total costs and cubic-foot costs of building the same standard house in representative cities in March and
June 1936
NOTE.—It must be understood that these figures are subject to correction.
These figures do not represent the cost of a completed house, but only the cost of the basic elements that go into a house.
[Source: Federal Home Loan Bank Board]

Total building cost

Cubic-foot cost

Federal Home Loan Bank Districts, States, and cities
June
No. 3—Pittsburgh:
Delaware:
Wilmington..
Pennsylvania:
Harrisburg...
Philadelphia.
Pittsburgh...
West Virginia:
Charleston...
No. 5—Cincinnati:
Kentucky:
Lexington.
Louisville..
Ohio:
Cincinnati.
Cleveland.
Columbus.
Tennessee:
Memphis..
Nashville..
No. 9—Little Rock:
Arkansas:
Little Rock..
Louisiana:
New Orleans.
Mississippi:
Jackson
New Mexico:
Albuquerque.
Texas:
Dallas
Houston.....
San Antonio.
No. 12—Los Angeles:
Arizona:
Phoenix
California:
Los Angeles...
San Diego....
San Francisco.
Nevada:
Reno

June 1936




March

June

$5, 295

$5, 286

$0. 221

5,472
4,925
5,706

5,405
4,661
5,512

.228
.205
.238

5,484

5,476

.228

5,079
5,414

4,963
5,455

.212
.226

5,600
6,123
5,529

5,639
5,946
5,522

.233
.255
.230

5,177
5,124

4,820
5,048

.216
.214

5,176

5,176

.216

5,332

5,332

.222

5,333

5,319

.222

5,982

5,982

.249

5,512
5,746
5,459

5,392

.230
.239
.227

6,108

6,051

.254

5,182
5,208
5,756

5,302
5,234

.216
.217
.240

6,193

5,943

.258

337

FEDERAL HOME
Combined statement of
Combined

Boston

New York

Pittsburgh

Winston-Salem

ASSETS

Cash:
On deposit with U. S. Treasurer
On deposit with U. S. Treasurer, members' demand
On deposit with other Federal Home Loan Banks

Loans outstanding:
Other

Accrued interest receivable:

Deferred charges:

Other assets:

$16, 575. 90
8, 752, 572.12

$500. 00
57, 252.18

0
$2, 067, 980. 87

1, 404, 817. 09
2, 900, 000. 00
2, 720, 950. 34

0
200, 000. 00
733, 864. 50

0
0
84, 956. 22

$1, 000. 00
86, 531. 89
0
0
87, 483. 70

15, 794, 915. 45

991, 616. 68

2,152, 937. 09

175, 015. 59

105,968,539.73
3, 808. 23

3,196, 940.16
0

15, 505, 831. 75 1 11,840,088.67
0
0

7,457,211.01
0

105, 972, 347. 96

3,196, 940.16

15, 505, 831. 75

11,840,088.67

7,457,211.01 1

333, 558. 30
4, 961. 74
91, 831. 40
958. 33

7, 608. 62
0
26, 224. 65
0

62, 980. 73
0
2,189. 60
0

40, 256. 94
0
553. 86
0

$10.00
2,336,265.58
0
100,000.00
10,883.43

2,447,159.01 1

31,713.80
32.79
708.63
0
32,455.22 |

431, 309. 77

33, 833. 27

65,170. 33

40, 810. 80

16, 340,133. 25
414, 465. 00

4, 350, 000. 00
41, 875. 00

205, 985. 94
24, 075. 00

143, 202. 51
18, 100. 00

103,203.39
23,025.00

7, 438. 50
10, 432. 25
3, 798. 91

1, 423. 83
808.15
0

0
1, 228. 60
1, 937. 50

0
863. 94
0

2,513.83
507.50
85.50

21, 669. 66

2, 231. 98

3, 166.10

863. 94

3,106.83 1

3, 963. 38
1,150. 98

0
0

0
0

1, 726. 08
0

651.83
400.00 1

1, 726. 08

1,051.83 1

5,114. 36

0

0

138, 979, 955. 45

8, 616, 497. 09

17, 957, 166. 21

3, 715, 843. 25
4, 333, 898. 04
156, 874. 87
2, 900, 000. 00
167, 228. 57

1, 022, 363. 06
0
250. 00
0
0

1,445, 000. 00
20, 000. 00
16, 024. 87
0
0

94, 712. 69
0
21,300.00
300, 000. 00
14,865.95

182,600.00

15, 972. 77
1, 377. 04
1,163. 51

3, 021. 37
0
0

5, 056. 59
0
0

389.01
1,377.04
0

1,175.74

11, 292, 358. 05

1, 025, 634. 43

1, 486, 081. 46

432,644.69

12, 219, 807. 59 10,067,212.29

LIABILITIES AND CAPITAL

liabilities:
Deposits:

Accrued interest:

Total liabilities
Capital:
Capital stock, issued and outstanding:
Fully paid:
U. S. Government:

Partially paid:

Surplus:
Reserves: ^
Surplus, unallocated

10,875.000
0

0

194,650.74 1

25,153, 500. 00

2, 070, 400. 00

3, 445, 500. 00

1, 827, 200. 00

2,142,900.00

124, 741, 000. 00
26,199, 000. 00

12, 467, 500. 00
7,167, 500. 00

18, 963, 200. 00
6, 463, 200. 00

11,146, 300. 00
1, 546, 300. 00

9,208,200.00
1,708,200.00

98, 542, 000. 00

5, 300, 000. 00

12, 500, 000. 00

9, 600, 000. 00

7,500,000.00

782, 400. 00

87,100. 00

62,100. 00

35, 900. 00

124, 477, 900. 00

7, 457, 500. 00

16, 007, 600. 00

11, 463,100. 00

1, 389, 307. 61
1, 820, 389. 79

67, 843. 94
65, 518. 72

194, 400. 20
269, 084. 55

146,609.47
177, 453. 43

42,400.00
9,685,300.00 |

100,015.02
87,246.53

Total surplus

3, 209, 697. 40

133, 362. 66

463, 484. 75

324, 062. 90

187,261.55 1

Total capital

127,687,597.40

7,590,862.66

16, 471, 084. 75

11, 787,162. 90

9,872,561.55 |

Total liabilities and capital

138,979,955.45

8, 616, 497. 09

17, 957,166. 21

12, 219, 807. 59 10,067,212.29

338




Federal Home Loan Bank

Review

LOAN BANKS
condition as at Apr. 30, 1936
Cincinnati

j

Indianapolis

$14, 180. 90
368, 637. 76

0
$649, 457. 65

562, 828.10

205, 228. 47
600, 000. 00
358, 663. 51

253, 492. 04

Des Moines

Chicago

$25. 00
1, 259, 439. 32

$300. 00
956, 482. 41
0
0
960,183. 34

Topeka

Little Rock

0
0
36, 615. 76

Portland

Los Angeles

$25. 00
229, 950. 76

$25. 00
177, 050. 75

0
$177, 634. 48

$510. 00
385, 888. 47

130, 591. 92
0
0

71, 815. 57
0
8, 702. 80

155, 838.92
2, 000, 000. 00
59, 750.00

278, 514.11
0
126, 355. 04

257, 594. 12

2, 393, 223. 40

791, 267. 62

1,199,138. 80

1, 813, 349. 63

1, 916, 965. 75

1, 296, 080. 08

360, 567. 68

18, 612, 893.14
0

4, 596, 875. 00
0

17, 970, 508. 89
0

5, 722, 492. 01
0

7, 762, 908.18
0

5, 318, 072. 47
0

2, 960, 461. 70
0

5, 024, 256. 75
3, 808. 23

j 18, 612, 893.14

4, 596, 875. 00

17, 970, 508. 89

5, 722, 492. 01

7, 762, 908.18

5, 318, 072. 47

2, 960, 461. 70

5, 028, 064. 98

23, 832. 07
0
9, 320. 68
0

11, 566. 29
0
7, 625. 00
0

9, 881. 84
3, 448. 08
8, 645. 03
0

10, 988. 79
0
3, 796. 62
0

1

60, 343. 57

0

j

15, 822. 92
0
76,166. 49
3, 030, 804. 70
118, 575. 00

14, 271.16
0

48,175. 45
0
1, 945. 33
0

11, 939. 04
1,480. 87
11, 093. 82
958. 33
25, 472. 06

3, 905. 26
0
18,176. 42

50,120. 78

2, 051, 937. 00
36, 850. 00

1, 060, 397.14
2, 925. 00

156, 611.18
83, 875. 00

33,152. 75
2, 416, 725. 00
7, 425. 00

19,191. 29
1, 050, 000. 00
17, 225. 00

21, 974. 95
1, 099, 575. 00
2, 940. 00

14, 785. 41
671, 691. 39
37, 575. 00

1, 666. 66

0
704.18
0

3, 500. 84
1, 291. 01
0

0
717. 49

1

0
966.13
0

0
791. 60
0

0
758. 35
0

0
822. 30
109. 25

1

2, 639. 66

704.18

4, 791. 85

717. 49

966.13

791. 60

758. 35

931. 55

o

253. 45
1.00

9.00
0

0
0

973. 00

11
'

157. 95

100. 60

°
157.95

15. 81

23, 040, 375. 74

695, 000. 00
812, 828.10
22, 375. 00
2, 300, 000. 00
152, 362. 62
566. 67

1
1

°
3, 983, 132. 39

116. 41

734.17

8,^525, 304. 28

0

1

20, 183, 607. 62

1

21,167. 50
205, 228. 47 1
14, 600. 00
0
0
0
0
0
240, 995. 97

o

i
2, 659, 080. 95
8, 500. 00
0
0

°

254. 45

8,100, 788. 14

10, 581, 999.19

240, 000. 00
0
8, 850. 00
0
0

0
130, 591. 92
4,100. 00
0
0

5, 227. 76
0
0

520. 88

2, 672, 808. 71

249, 370. 88

0

0
0
0
134, 691. 92

9.00
6, 662, 883. 48

15, 000. 00
71, 815. 57
900. 00
0
0
14.75
0
0
87, 730. 32

0
6, 478, 933. 40

0
155, 838. 92
125. 00
0
0
0
0
0
155, 963. 92

1, 064. 47
0
1, 064. 47
6, 545, 380. 42

0
278, 514.11
48, 975. 00
300, 000. 00
0
0
0
1,163. 51
628, 652. 62

5, 429, 300. 00

1, 990, 400. 00

2, 752, 200. 00

1,180, 300. 00

1, 420, 400. 00

1, 091, 600. 00

12, 775, 700. 00

6, 577, 400. 00
577, 400. 00

14,173, 900. 00
0 1

7, 394, 900. 00
894, 900. 00

8, 772, 400. 00
0

7, 333, 600. 00
2, 033, 600. 00

5, 960, 000. 00
300, 000. 00

9, 967, 900. 00
5, 507, 900. 00

6, 000, 000. 00

14, 173, 900. 00

6, 500, 000. 00

8, 772, 400. 00

5, 300, 000. 00

5, 660, 000. 00

4, 460, 000. 00

1 12, 775, 700.°00
223, 200. 00
1 18, 428, 200. 00

277, 528. 27
351, 515. 08

1

0
734.17

629, 043. 35

68, 900. 00
8, 059, 300. 00

108, 966. 28
116, 042. 03

5, 400. 00

16, 600. 00

17, 046, 300. 00

7, 685, 700. 00

10, 209, 400. 00

191, 361. 62
273,137. 29

69, 305. 97
96, 411. 29

102, 362.17
135, 545.10

31, 700. 00
6, 423, 300. 00

49, 250.17
102, 602. 99

5, 800. 00 1
6, 231, 700. 00

37, 345. 98
53, 923. 50

1, 237, 400. 00

83,100. 00
5, 780, 500. 00

44, 318. 52
91, 909. 28

464, 498. 91

165, 717. 26

237, 907. 27

151, 853.16

1 19, 057, 243. 35

8, 284, 308. 31

17, 510, 798. 91

7, 851, 417. 26

10, 447, 307. 27

6, 575,153.16

6, 322, 969. 48

5, 916, 727. 80

23, 040, 375. 74

8, 525, 304. 28

20,183, 607. 62

8,100, 788.14

10, 581, 999.19

6, 662, 883. 48

6, 478, 933. 40

6, 545, 380. 42

June 1936




225, 008. 31

120, 200. 00

565, 900. 00

91, 269. 48

136, 227. 80

339

Growth and Lending Operations of the
Federal Home Loan Banks

T

HE net balance of advances outstanding from the 12 Federal Home Loan
Banks to member institutions increased by
$2,614,000 during April to a total of $105,972,000 at the end of the month.
During April, 44 members were added to
the Federal Home Loan Bank System,
bringing the total number of member institutions to 3,587. As of April 30, the combined assets of member institutions were
approximately $3,234,130,000.
There were no changes during May in the

interest rates on advances from the Federal
Home Loan Banks, but the Des Moines Bank
announced a change to go into effect on
July 1. Interest on all advances outstanding at that date will be collected at 3y2 percent even though the written rate exceeds
that amount. On all advances made after
July 1, the written and collectible interest
rate shall be 3y2 percent. Further, if the
balance of loans outstanding to any one
member equals or exceeds $1,000,000, the
interest thereon shall be at the rate of 3
percent.

Interest rates, Federal Home Loan Banks: rates on advances to member institutions
Federal Home Loan
Bank

Rate in
effect on
June 1

Type of loan

Percent
All advances.
3
3Ji All advances for 1 year or less.
3% All advances for more than 1 year shall be written at 4 percent, but interest collected
at 3% percent during 1936. This rate shall be applicable to balances outstanding
on Jan. 1, 1936.
3.
3# All advances for 1 year or less. All advances for more than 1 year are to be written
at 4 percent, but until further notice credit will be given on all outstanding
advances for the difference between the written rates of 5, 4J^, or 4 percent and
3M per centum per annum.
4. Winston-Salem....
VA All advances, with the provision that the interest rate may be increased to not
more than 4J^ percent after 30-days written notice.
3
All advances.
5.
3
6.
All secured advances for 1 year or less.
3)4 All unsecured advances, none of which may be made for more than 6 months.
3# All secured advances for more than 1 year.
7, Chicago
3
All secured advances are to be written at 3J^ percent, but interest collected at 3
percent.
3}4 All unsecured advances.
8. Des Moines
3H All advances for 1 year or less.
2
3^-4
All advances for more than 1 year shall bear an interest rate of 3J^ percent for the
first year, and 4 percent for subsequent years, but interest will be collected at
33^ percent so long as this rate is in effect on short-term advances.
All advances.
9. Little Rock
1
3
Do.
10. Topeka
11 Portland
3
All advances to members secured by mortgages insured under Title II of National
Housing Act.
3H All advances for 1 year or less. All advances for more than 1 year to be written at
4 percent, but interest collected at 3J^ percent so long as short-term advances
carry this rate.
All advances.
12. Los Angeles
3
1. Boston
2. New York

1
On May 29, 1935, the Board passed a resolution to the effect that all advances to nonmember institutions upon
the security of insured mortgages, insured under Title II of the National Housing Act, "shall bear interest at rates of
interest
one half of 1 percentum in excess of the current rates of interest prevailing for member institutions."
2
Note changes referred to in text, to become effective July 1.

340




Federal Home Loan Bank

Review

Federal Savings and Loan System

T

HE 980. new and converted Federal
savings and loan associations reporting for the two months made 18.9 percent
more loans during April than March of this
year as compared to an April increase of
11.6 percent reported by 572 Federal associations in 1935. The combined total of
mortgage loans made by the 980 associations during April was $16,521,242. As a
result of this great volume of activity, the
associations made a net gain of 3.1 percent
in balance of loans outstanding on their
books at the end of the month.
TABLE

Loans made in April were distributed
according to purpose as follows: new construction and reconditioning, 36.5 percent;
purchase of homes, 22.8 percent; refinancing, 32.4 percent; and other purposes, 8.3
percent (table 1). During April, 2.7 percent less of the total loans made went for
refinancing than during March. Last year
at that time 55 percent of all loans made by
reporting Federals were allocated to refinancing.
The Federal Home Loan Bank advances
outstanding to the 980 Federal associations

1.—Federal Savings and Loan System—Combined summary of operations for April 1936 as
compared with March 1936 for associations reporting in both months
416 converted associations

564 new associations

April

Share liability at end of month:
Private share accounts (number)..

89, 893

March

Change
March
to April

88, 228

Paid on private subscriptions
$38, 383,197 $36, 082,164
Treasury and H. 0. L. C. subscriptions
39, 502, 700 37, 404, 400
Total
Average paid on private subscriptions..
Repurchases during month
Mortgage loans made during month:
a. Reconditioning
b. New construction
c. Refinancing
d. Purchase of homes
e. Other purposes
Total for month
Borrowed money as of end of month:
From Federal Home Loan Banks..
From other sources
Total

June 1936




April

March

Change
March
to April

430, 506

Percent
-.4

+ 6 . 4 $306, 823, 898 $305, 802, 815

+.3

Percent
+ 1.9 !

428, 627

+ 5.6

44, 033, 900

42, 056, 900

+4.7

77, 885, 897

73, 486, 564

+ 6.0

350, 857, 798

347, 859, 715

+.9

427
532, 413

408
638,184

+4.6
-16.6

716
4, 064, 038

710
4, 665, 750

+ .9
-12.9

325, 244
2, 248, 889
2,104, 542
1, 209, 382 1
380, 402

+ 39.0
+ 20.8
+ 11.2
+16.4
+5.9

645, 296
2, 216,189
3, 016, 331
2, 355, 482
968, 022

550,130
1, 694, 282
2, 802, 847
1, 802, 690 1
872, 583

+ 17.3
+30. 8
+ 7.6
+30.6
+ 10.9

452, 065
| 2, 718, 601
2, 339, 062
1, 407, 206
402, 988

7, 722, 532
9, 201, 320
296, 337, 250 I 291,490,616

+ 19.1

7, 319, 922
81,499,238

6, 268, 459
74, 914, 626

+ 16.8
+ 8.8

8, 900, 339
72, 950

8, 210, 357
123, 612

+ 8.4
-40. 9

22, 823, 872
2, 452, 698

22,187, 587
2, 231, 059

+2.9
+9.9

8, 973, 289

8,333,969

+ 7.7

25, 276, 570

24, 418, 646

+ 3.5

J

+1.7

341

increased by $1,326,267 in April. This figure represents 50 percent of the month's
net increase in total Federal Home Loan
Bank advances to all member institutions.
As of April 30, outstanding advances to the
980 reporting Federals constituted 29.9 percent of the total outstanding advances to
all members.
A further source of funds was provided
by the Home Owner's Loan Corporation
which subscribed to an additional $4,075,300 of shares in the 980 associations, bringing the total of Treasury and Corporation
subscriptions to $83,536,600. Private investments also increased $3,322,116—70 percent
TABLE

of which were investments in the 564 new
associations. As of the end of April, total
share subscriptions in the 980 associations
were $428,743,695. Accompanying this increase in new investments was a reduction
of 13.3 percent in repurchases for April
over March.
During the month of April the number of
savings and loan associations under Federal charter increased by 24, bringing the
total Federal associations to 1,102 with
combined assets of $570,351,261. Of this
number, 6 were newly organized associations and 18 were converted from established State-chartered institutions.

2.—Progress in number and assets of the Federal Savings and Loan System
Assets

Number

Number at 6-month intervals

Dec. 31, June 30, Dec. 31, June 30, Dec. 31, Mar. 31, Apr. 30, Mar. 31,1936 Apr. 30,1936
1936
1934
1934
1936
1933
1935
1935
New
Converted
Total

342




57
2

321
49

481
158

554
297

605
418

623
455

629
473

$75, 230, 371
462, 261, 567

$91, 660, 794
478, 690, 467

59

370

639

851

1,023

1,078

1,102

537, 491, 938

570, 351, 261

Federal Home Loan Bank

Review

Federal Savings and Loan Insurance
Corporation

T

HE period April 18 to May 15 saw 47
additional associations granted insurance by the Federal Savings and Loan Insurance Corporation. Furthermore, this
figure does not tell the complete story of
the month's activity, since, beginning May
15, 1936, only those associations that have
actually remitted their initial insurance
premiums are listed as insured. Figures
for earlier periods included all applications which had been approved by the
Board. Due to the change inaugurated in
the figures for May 15, seventeen associations that had received the Board's approval but had not yet remitted their initial
premiums are not included.
Of the 47 associations added during the
month, 17 were State-chartered, 22 were
converted from State to Federal charter,
and 8 were newly organized Federal
associations. During the April 18-May 15
period, 42 additional applications were received, bringing the total of all applications
to 1,616. The combined assets (as of date
of application) of these applicants were
$1,194,904,318.
A further revision has been made in the
accompanying table on associations insured in that the number of shareholders,
assets, and share and creditor liabilities of
insured associations are of the most recent
date obtainable. In previous monthly reports these figures have been as of the date
of insurance. Henceforth, they will be
brought up-to-date at least semiannually.
The revised assets of the 1,277 associations
as of May 15 were $836,633,708 and the share
and creditor liabilities were $763,846,890.
The individual holdings of the 943,201
shareholders of these associations are each
insured up to $5,000.
June 1936




REPORTS FROM INSURED ASSOCIATIONS

of the value of share insurance in restoring public confidence in and reviving
the flow of savings into savings and loan
associations accumulates with each additional institution insured. The extracts
quoted below from letters written by insured associations indicate that the investing public in all sections of the country
want the safety of insurance.
From a State-chartered association in
New York which was insured January 4,
1936:
PROOF

We immediately notified all of our members of
the insurance feature and inserted an announcement in our local papers. During the first ten
days of January, we opened many new and substantial Income Share accounts, and receipts
were larger by far than in any like period since
1929. We are continually receiving new accounts
and our cash on hand is much greater than it has
been for a number of years.
Our Association had always met all demands
for withdrawals and had never had a waiting
list. Withdrawals have practically ceased since
insurance became effective and it is quite evident
from the attitude of our members that they really
appreciate the added protection to their savings.

From a Federal savings and loan association in Pennsylvania which represents the
consolidation of four associations formerly
under State charters:
Prior to receiving the Federal charter, and of
course the Federal Insurance, many of our stockholders were decidedly uneasy about their investments as a consequence of the losses sustained by themselves, or by their friends in other
associations. There was a fairly large list of
withdrawals and perhaps $60,000 of unpaid maturities, for which the stockholders were clamoring. It was found that those most insistent for
their money immediately deposited their checks
in a Saving Fund account. Then, too, there were
no new shares, no money to take care of loans

343

and consequently the association was virtually in
the process of orderly liquidation.
With the advent of insurance, however, withdrawals slackened materially and confidence was
in the major part restored. A little sales talk
about the advantage of Federal Insurance resulted in the conversion of approximately 80 percent of unpaid maturities into optional or fullpaid income shares.
This Association, since it began operation on
February 3, 1936, has passed new mortgage loans
aggregating $30,000 and has sold 400 new shares
of stock. Besides this, about $40,000 has been
received in optional or full-paid shares. It has
not yet been necessary to make a Treasury call
for funds from the United States Government.
Considered solely from an advertising standpoint, the premium we have paid for insurance
has been a splendid investment. The protection
to stockholders magnifies greatly the return from
the premiums paid. . . .

From a State-chartered association in
Indiana:
In order that you may understand the situation more fully may we say that we were the
only one of three associations in our community
operating under a general license from the Department of Financial Institutions and that we
had an unbroken line of dividend payments and
no withdrawal list on file. However, we were
not receiving or seeking any new money due to
lack of confidence generally in the community
regarding the future of building and loan associations and naturally we had been in a process
of slow liquidation.
We procured share insurance less than 60 days
ago and we can now say that the tide of liquidation has been stemmed. The chief benefit we
have received to date is the strengthening of the
morale of our officers and loyal shareholders, who
can now recommend with certainty investment
in our association.

From a State-chartered association in
Kansas:
Since receiving our certificate of insurance we
have been advertising and talking this fact and
we have received more new money so far this
year than we did in all of 1935.
Our shareholders seem to be pleased over the
fact that their investments are now insured.
It is a great deal of satisfaction to an officer
in talking about the shares of his association to
know that he has the insurance feature backing

344




up the management and strength of his association. We have been receiving ample funds to
meet all demands for new loans and have made
a substantial payment on our advance from the
Federal Home Loan Bank.

From a State-chartered association in
North Carolina, insured on December 3,
1935:
While the association has not been on notice
for withdrawals for more than two years, new
money had not found its way into our treasury
in sufficient amounts to permit any loan activities.
For the 11 months ended November 30, 1935
the association's average monthly income was
$23,000. For the month of December 1935 the
income amounted to $58,900, and the income for
January 1936 amounted to $59,500.
There seems to be a steady flow of new money
that is unquestionably due to the fact that our
shares are now insured up to $5,000. Many of
the new shareholders are known to have had
former savings connection with the association,
but continued to carry their saving accounts with
insured banks, or other places, until the insurance feature was announced.
Until the present time the association's income was only in a sufficient amount to pay
operating expenses, meet withdrawal and maturity demands and make required payments
upon borrowed money. Since insuring our
shares we have again become active in the lending field, have retired some $30,000 of borrowed
money and at this writing have approximately
$100,000 in cash and H. O. L. G. bonds on hand,
and advertising for loans.

From a converted Federal savings and
loan association in California:
We converted and secured insurance about
simultaneously. Since, it has been like old
times—only more so. Our public's apprehensions
seem to have subsided entirely and whereas we
have been paying out more than we have taken
in for several years—and have been in the habit
of calculating new savings per month in tens of
dollars, we have since the first of 1936 following conversion and insurance, taken nearly $10,000 of new savings in addition to receiving
$75,000 of H. O. L. G. savings,—made over $50,000 of new loans. This without any effort to
build business—and being simply an appetizer
for what we know we can get when we shortly
recapture our long since depleted office force—
and really go out after the business.

Federal Home Loan Bank

Review

Progress of the Federal Savings and Loan Insurance Corporation—Applications received and institutions
insured
APPLICATIONS RECEIVED
Number at 6-month
intervals

Assets (as of date of application)

Number

Dec. 31, June 30, Dec. 31, Apr. 18, May 15,
1935
1934
1936
1935
1936
State-chartered associations
Converted F. S. and L. A
New F. S. and L. A
Total

188
360
517

351
480
575

454
508
612

471
527
618

$667, 757, 875
496,178, 508
13, 480, 701

$672, 749, 208
508, 625, 494
13, 529, 616

580

1,065

1,406

1,574

1,616

1,177, 417, 084

1,194, 904, 318

Number at 6-month
intervals

Number

Dec. 31, June 30, Dec. 31, Apr. 18, May 15,
1934
1935
1936
1935
1936

Total

May 15, 1936

53
134
393

INSTITUTIONS INSURED

State-chartered associations
Converted F. S. and L. A.
New F. S. and L. A

Apr. 18, 1936

I

Number of
shareholders

Assets

Share and
creditor
liabilities

May 15,
1936

May 15, 1936

May 15, 1936

4
108
339

45
283
512

136
406
572

192
439
599

209
461
607

362, 297
496, 681
84, 223

$307, 571, 736
455, 614, 785
73, 447,187

$272,421, 035
419, 661, 442
71, 764, 413

451

840

1,114

1,230

1,277

943, 201

836, 633, 708

763, 846, 890

1
Beginning May 15,figureson number of associations insured include only those associations which have remitted
premiums. Earlier figures include all associations approved by the Board for insurance.
Number of shareholders, assets, and share and creditor liabilities of insured associations are as of latest obtainable
date and will be brought up-to-date after June 30 and December 31 each year.

June 1936




345

Home Owners' Loan Corporation
TABLE

1.—H. 0. L. C. subscriptions to shares of savings and loan
associations—Requests and subscriptions *
Uninsured Statechartered members
of the F. H. L. B.
System
Number
(cumulative)

Requests:
Dec. 31, 1935
Apr. 30, 1936
May 20, 1936 . .
Subscriptions:
Dec. 31, 1935, , .
Apr. 30, 1936. . .
May 20, 1936 . .
1

Amount
(cumulative)

Insured Statechartered associations
Number
(cumulative)

Federal savings and
loan associations

Amount
(cumulative)

27
52
56

$1,131, 700
2, 432, 700
2,542,700

33
88
95

$2,480, 000
7, 077, 500
7,685,100

2
18
19

100, 000
1,055, 000
990,000

24
73
84

1, 980,000
5, 985, 000
6,890,000

Number
(cumulative)

Amount
(cumulative)

553 $21,139, 000
1,119 40, 560,100
1,218 45,989,100

613
1,259
1,369

$24, 750, 700
50, 070, 300
56,216,900

474
1,056
1,126

500
1,147
1,229

19, 846, 500
45,161, 600
48,292,600

17, 766, 500
38,121, 600
40,412,600

2.—Applications received and loans closed, by months *
Applications
received
(number)

Period

1933
From date of opening through Dec. 3 1 . .
1934
From Jan. 1 through Dec. 31
1935
From Jan. 1 through Dec. 31
1936
From Jan. 1 through April 30
May 1 to May 14
Grand total to May 14, 1936.
2

Number
(cumulative)

Amount
(cumulative)

Refers to number of separate investments, not to number of associations in which investments made.
TABLE

1

Total

Loans closed
Number

Amount

722, 796

37, 249

$105, 920, 343

a 1, 020,132

688, 992

2, 091, 067, 465

143, 640

245, 549

743, 041, 243

38, 279
2,873

119, 999, 634
9, 679, 969

1, 012, 942

3, 069, 708, 654

1, 886, 568

These figures are subject to adjustment.
Receipt of applications stopped Nov. 13, 1934, and was resumed for a 30-day period beginning May 28, 1935.

TABLE

3.—Reconditioning Division—Summary of all reconditioning operations through May 14, 1936

Period

June 1, 1934 through Apr. 16, 1936 l
Apr. 17, 1936 through May 14, 1936
Grand total through May 14, 1936

Number of
applications
received for
reconditioning loans

Total contracts executed
Number

Amount

Total jobs completed
Number

Amount

673, 506
694

348, 208 $67, 947, 910
5,448
1, 327, 269

309, 881
7,373

$57, 964, 718
1, 769, 254

674, 200

353, 656

317, 254

59, 733, 972

69, 275,179

1

The figures for this period are subject to correction.
NOTE.—Prior to the organization of the Reconditioning Division on June 1,1934, the Corporation had completed 52,269
reconditioning jobs amounting to approximately $6,800,000.

346




Federal Home Loan Bank

Review

TABLE

4.—Foreclosures authorized and properties acquired by the Home Owners' Loan Corporation
Foreclosures
authorized

Period
Prior to 1935.

Properties acForeclosures
quired by voll
stopped untary deed and
foreclosure2

30

Jan. 1 through June 30.
July 1 through Dec. 31.

1935
1936

January..
February.
March
April

Grand total to Apr. 30, 1936.

536
3,904

7
190

72
1,115

1,281
1,544
3,190
4,367

27
49
60
88

334
450
516
669

14, 852

421

3,152

1
2

Due to payment of delinquencies by borrowers after foreclosure proceedings had been entered.
Does not include 1,001 properties bought in by H. O. L. G. at foreclosure sale but awaiting expiration of the redemption period before title and possession can be obtained.
In addition to the total of 3,152 completed cases, 17 properties were sold at foreclosure sale to parties other than
H. O. L. G.

Foreclosures in Large Urban Counties

F

ORECLOSURES continued to show
little change during April. The preliminary index for the month stood at 297
percent of the 1926 base as compared with
302 percent in March. This was a normal
decline of approximately 2 percent.

Compared with April 1935, when the index was 398, the April 1936 figure represents a drop of 25 percent. For the first
four months of 1936, the index averaged 28
percent lower than in the same period in
1935.

Index of number of foreclosures in 78 large urban counties with populations over 1009000 1
[1926-100]
[Source: Federal Home Loan Bank Board. Compiled from reports received from county officials and others]

Period
1926.
1927.
1928.
1929.
1930.
1931.
1932.
1933.
1934
January...
February..
March
April
May
June
July
August
September.
October...
November.
December.
1
2

Period

Index
100
137
180
212
235
300
382
395
370
359
323
368
357
375
376
371
370
378
389
399
377

1935.

January...
February..
March
April
May
June
July
August....
September.
October...
November.
December.
1936.
January..
February.
March...
April

Index
366
431
352
412
398
405
395
368
365
337
333
297
304
287
266
302
»297

Combined population of reporting counties is approximately 42,450,000 (1930 Census).
Preliminary figure.

June 1936




347

Resolution of the Board
AMENDING THE RULES AND REGULATIONS FOR INSURANCE OF ACCOUNTS CONCERNING DETERMINATION OF THE AMOUNT OF EACH
INSURED ACCOUNT IN EVENT OF
DEFAULT BY AN INSURED INSTITUTION
On October 3, 1935, the Board amended
the Rules and Regulations for the Insurance of Accounts by inserting after the first
sentence of Section 18 (b) the following:
"The amount of each insured account will be
determined from the books and records of the
association and the evidence of the account held
by the insured member without regard to the
value of the assets of the insured institutions."

On April 30, 1936, the Board further
amended this section by the passage of the
following resolution:
Be it resolved, That pursuant to the authority
vested in the Board of Trustees by Sections 402
(a) and 403 (b) of the National Housing Act, (48
Stat. 1246, 1256, 1257), as amended, Section 18
(b) of the Rules and Regulations for the Insurance of Accounts is hereby amended by striking
the second sentence and substituting in lieu
thereof the following:
"The amount of each insured account will be
determined from the books and records of the
insured institution and from the security contract without regard to the actual value of the
assets of the insured institution and without regard to provisions of the security contract which
authorize the insured institution to retain or deduct in the event of voluntary withdrawal or
repurchase any amount on account of premature
withdrawal or repurchase."

Directory of Member, Federal, and Insured Institutions
Added during April-May
I. INSTITUTIONS ADMITTED TO MEMBERSHIP IN THE FEDERAL HOME LOAN BANK
SYSTEM BETWEEN APRIL 20, 1936, AND
MAY 16, 19346 *
(Listed b y F e d e r a l Home L o a n B a n k Districts, States, a n d
cities)

ALABAMA:
DISTRICT N O . 4
Birmingham:
W o o d l a w n B u i l d i n g & L o a n Association, 404 N o r t h
Twenty-first Street.
GEORGIA :

Decatur:
Decatur B u i l d i n g & L o a n Association, 107 Sycamore
Street.
VIRGINIA :

Martinsville:
Mutual Building & L o a n Association of M a r t i n s ville, Virginia, I n c o r p o r a t e d .

DISTRICT NO. 2
NEW

YORK:

Richmond Hill:
Savings & L o a n Association of R i c h m o n d Hill,
111-06 L i b e r t y Avenue.
Rochester:
Profit Savings & L o a n Association, 251 P o w e r s
Building.
DISTRICT NO. 3

PENNSYLVANIA:

Millvale:
Shaler B u i l d i n g & Loan Association of Shaler
T o w n s h i p , 1427 Evergreen Avenue.
Pittsburgh:
H a r m o n y B u i l d i n g & L o a n Association No. 2, Sixth
W a r d , P i t t s b u r g h , P a . , 1349 F i f t h Avenue.
S h e r a d e n B u i l d i n g & L o a n Association, 2829 Chartiers Avenue.
Springdale:
Springdale B u i l d i n g & Loan Association, 911 P i t t s b u r g h Street.
1
D u r i n g t h i s p e r i o d 7 F e d e r a l savings a n d loan associat i o n s w e r e a d m i t t e d to m e m b e r s h i p i n t h e System.

348




^

DISTRICT NO. 5

OHIO:

Cleveland:
P a r k View Savings & L o a n Association, 3199 E a s t
N i n e t y - t h i r d Street (restoration d u e t o cancelat i o n of F e d e r a l c h a r t e r ) .
Fremont:
Citizens Savings & L o a n C o m p a n y , 420 Croghan
Street.
IND.ANA:
DISTRICT N O . 6
Connersville:
Fayette Savings & L o a n Association.
Huntington:
People's Savings & L o a n Association, 450 N o r t h
Jefferson Street.
Indianapolis:
I n s u r a n c e Savings & L o a n Association, 505 I n d i a n a
T r u s t Building.
Lawrenceburg:
Progressive B u i l d i n g & L o a n Association, 236 F i r s t
Street.

Federal Home Loan Bank

Review

DISTRICT NO. 7

MARYLAND :

Baltimore:
Uncle Sam Loan & Savings Company, 2013-15 F r e d erick Avenue (association l i q u i d a t i n g ) .

ILLINOIS:

Nashville:
T r u s t Building & L o a n Association of N a s h v i l l e , 111.
Watseka:
Iroquois B u i l d i n g & L o a n Association.

PENNSYLVANIA:

Mahanoy C i t y :
H o m e Building & L o a n Association of
City, 35 South Main Street.

WISCONSIN :

Nekoosa:
Nekoosa-Port E d w a r d s B u i l d i n g & L o a n Association, Market Street.
Wisconsin R a p i d s :
W i s c o n s i n R a p i d s Building & L o a n Association,
130 F i r s t Street, N o r t h .

II. FEDERAL SAVINGS AND LOAN ASSOCIATIONS CHARTERED BETWEEN APRIL 20,
1936, AND MAY 16, 1936

DISTRICT NO. 9

DISTRICT NO. 1

ARKANSAS:

Little R o c k :
P y r a m i d Life I n s u r a n c e Company, 317-319 W e s t
Second Street.

CONNECTICUT :

New B r i t a i n :
Co-operative F e d e r a l Savings & L o a n Association,
24 Washington Street (converted f r o m New Brita i n Co-operative Savings & L o a n Association).

LOUISIANA :

Ruston:
Ruston Building & L o a n Association, 100 N o r t h
Vienna Street.

MAINE :

Caribou:
Aroostook County F e d e r a l Savings & L o a n Association.

TEXAS:

Plainview:
Home Building & L o a n Association of P l a i n v i e w ,
Texas.
DISTRICT NO. 10

MASSACHUSETTS :

Boston:
Second F e d e r a l Savings & Loan Association of Boston, 44 School Street (converted f r o m A u s o n i a Cooperative B a n k ) .

KANSAS:

Pratt:
W h e a t Belt Building & L o a n Association.
Topeka:
State Savings & L o a n Association, 931 K a n s a s
Avenue.
Wichita:
Commercial Savings & Loan Association, 108 N o r t h
Topeka Avenue.
NEBRASKA :

Lincoln:
Lincoln Savings & Loan Association, 117
Twelfth Street.
DISTRICT NO'. 11

Mahanoy

DISTRICT NO. 2
NEW

YORK:

East Rochester:
E a s t Rochester F e d e r a l Savings & L o a n Association,
2 Eyer Building (converted f r o m Despatch Cooperative Savings & L o a n A s s o c i a t i o n ) .
New Y o r k :
Knickerbocker F e d e r a l Savings & L o a n Association,
120 B r o a d w a y .

South
DISTRICT NO. 4
ALABAMA :

UTAH:

Logan:
N o r t h e r n B u i l d i n g L o a n Society, T h a t c h e r Building,
South Main Street.
DISTRICT NO. 12
CALIFORNIA :

Los Angeles:
I n v e s t m e n t B u i l d i n g & L o a n Association, 1037
South B r o a d w a y .
Los Angeles Mutual B u i l d i n g & L o a n Association,
740 South Spring Street.
Railway Mutual Building & Loan Association, 202
Pacific Electric Building.

Gadsden:
F i r s t F e d e r a l Savings & Loan Association of G a d s den.
GEORGIA :

Atlanta:
Southern F e d e r a l Savings & L o a n Association of
Atlanta, 534 H u r t Building.
Pelham :
P e l h a m F e d e r a l Savings & Loan Association, West
R a i l r o a d Street (converted from Mitchell County
Building & Loan Association).
Quitman:
Q u i t m a n F e d e r a l Savings & L o a n Association.
DISTRICT NO. 5

WITHDRAWALS FROM THE FEDERAL HOME LOAN
BANK SYSTEM BETWEEN APRIL 20, 1936,
AND
MAY 16, 1936
ARIZONA :

Prescott:
Y a v a p i County Savings Bank, 108 N o r t h
Street.

Cortez

COLORADO:

Denver:
Colorado Building & Loan Association, 1608 Welton
Street (consolidated w i t h Colorado F e d e r a l Savings & L o a n Association).
Neighborhood Building & L o a n Association, 430
University Building (consolidated w i t h F i r s t F e d eral Savings & Loan Association of D e n v e r ) .

June 1936




OHIO:

Akron:
F i r s t F e d e r a l Savings & L o a n Association of
Akron, 122 South Main Street (converted f r o m
Society Savings & L o a n C o m p a n y ) .
Columbus:
H u b F e d e r a l Savings & L o a n Association, Main &
Fifth Streets (converted f r o m H u b Building &
Loan Company).
DISTRICT NO. 6
INDIANA :

Auburn:
A u b u r n F e d e r a l Savings & Loan Association, 101
W e s t Seventh Street (converted f r o m A u b u r n
Building & Loan Association).

349

INDIANA—Continued.
Elwood:
Elwood Federal Savings & Loan Association (converted from Elwood Rural Savings & Loan Association).
Tell City:
Tell City Federal Savings & Loan Association, 601
Main Street (converted from The Building Loan
Fund & Savings Association of Tell City).
Vincennes:
North Side Federal Savings & Loan Association of
Vincennes, 215 Busseron Street (converted from
North Side Building & Loan Association of Vincennes, Indiana).
DISTRICT NO. 7
ILLINOIS :

Monmouth:
Security Federal Savings & Loan Association of
Monmouth, 1 Elks Building (converted from Security Building & Loan Association).
Sparta:
First Federal Savings & Loan Association of Sparta,
123 West Broadway (converted from Southern
Illinois Improvement & Loan Association of
Sparta, Illinois).
DISTRICT NO. 11
UTAH:

Logan:
Northern Federal Savings & Loan Association of
Logan, Thatcher Building, South Main Street
(converted from Northern Building Loan Society).
DISTRICT NO. 12
CALIFORNIA :

Los Angeles:
Investment Federal Savings & Loan Association,
1037 South Broadway (converted from Investment
Building & Loan Association).
Railway Federal Savings & Loan Association, 202
Pacific Electric Building (converted from Railway Mutual Building & Loan Association).
Standard Federal Savings & Loan Association, 544
South Grand Avenue (converted from Insurance
Plan Building & Loan Association).
San Pedro:
First Federal Savings & Loan Association of San
Pedro.
Tulare:
First Federal Savings & Loan Association of Tulare
County, 141 North K Street (converted from
Tulare Building & Loan Association).
CANCELATIONS OF FEDERAL SAVINGS
ASSOCIATION CHARTERS BETWEEN
1936, AND MAY 16, 1936

AND LOAN
APRIL
20,

CALIFORNIA :

Rialto:
Rialto Federal Savings & Loan Association, 102
North Riverside Avenue (consolidated with Orange Belt Federal Savings & Loan Association,
Colton, California).
MASSACHUSETTS :

Holyoke:
First Federal Savings & Loan Association of Holyoke, 129 Chestnut Street (failure to complete
organization).
OHIO:

Cleveland:
Park View Federal Savings & Loan Association of
Cleveland, 3199 East Ninety-third Street.
Lakewood:
First Federal Savings & Loan Association of Lakewood (No. 2), 14806 Detroit Avenue.

350




III. INSTITUTIONS INSURED BY THE FEDERAL SAVINGS AND LOAN INSURANCE
CORPORATION BETWEEN APRIL 20, 1936,
AND MAY 16, 1936 x
NEW YORK:

DISTRICT NO. 2

Brooklyn:
South Brooklyn Savings & Loan Association, 44
Willoughby Street.
New York:
North New York Savings & Loan Association, 344
East One Hundred and Forty-ninth Street.
Rochester:
Profit Savings & Loan Association, 251 Powers
Building.
DISTRICT NO. 4
DISTRICT OF COLUMBIA:

Washington:
Interstate Building Association, Washington Building.
DISTRICT NO. 6

INDIANA :

Lawrenceburg:
Progressive Building & Loan Association, 236 First
Street.
Marion:
Marion Building & Loan Association, 114 West
Fourth Street.
Richmond:
Peoples Home & Savings Association of Richmond,
Indiana, 29 North Eighth Street.
Tell City:
Peoples Building & Loan Association of Tell City,
Indiana, Corner Main & Humboldt Streets.
Terre Haute:
Merchants Loan & Savings Association, 23 South
Sixth Street.
Vincennes:
Vincennes Savings & Loan Association of Vincennes, Indiana, 401-403 American Bank Building.
WISCONSIN :

DISTRICT NO. 7

Milwaukee:
Standard Building & Loan Association, 2012-14
North Farwell Avenue.
DISTRICT NO. 8

MISSOURI :

Lebanon:
Lebanon Building & Loan Association, 102 East
Commercial Street.
ARKANSAS :

DISTRICT NO. 9

Little Rock:
Peoples Building & Loan Association, 905 Boyle
Building.
TEXAS:

Sequin:
Sequin Building & Loan Association.
Tyler:
Cooperative Building & Loan Association, Tyler's
Citizens Bank Building.
KANSAS:

D I S T R I C T

NO

"

10

Horton:
Horton Building, Loan & Savings Association, 921
Central Avenue.
Russell:
Russell County Building & Loan Association, Seventh & Main Streets.
Topeka:
Aetna Building & Loan Association, 112 West Seventh Street.
1
During this period 32 Federal savings and loan associations were insured.

Federal Home Loan Bank Review
U. S. GOVERNMENT PRINTING OFFICE: I93S

FEDERAL HOME LOAN BANK DISTRICTS

M M BOUNDARIES Of FEDERAL HOME LOAN BANK DISTRICTS.
•
FEOERAL HOME LOAN BANK CITIES.




WPPf