The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Vol. 6
SflUKz.
NO. 9
FEDERAL
HOME LOAN BANK
REVIEW
JUNE
1940
ISSUED BY
FEDERAL HOME LOAN BANK BOARD
WASHINGTON D.C.
CONTENTS
FEDERAL
HOME
FOR
SPECIAL
JUNE
1940
ARTICLES
Page
Waverly: A demonstration of neighborhood conservation
The third annual "Hunt for Facts"—Part 3
Mortgage recordings during the first quarters of 1939 and 1940
Registered homes: A stimulus to building
The effect of the war upon British building societies—Part 2
290
294
299
302
304
LOAN
STATISTICS
BANK
REVIEW
Published Monthly by the
FEDERAL HOME LOAN
BANK BOARD
John H. Fahey, Chairman
T. D. Webb, Vice Chairman
F. W. Catlett
W. H. Husband
F. W, Hancock, Jr.
FEDERAL HOME LOAN
BANK SYSTEM
FEDERAL SAVINGS AND LOAN
ASSOCIATIONS
Residential construction and home-financing activity
General business conditions
Foreclosures
Residential construction
Small-house building costs
Mortgage recordings
New mortgage-lending activity of savings and loan associations
Federal Savings and Loan System
Federal Home Loan Bank System
Federal Savings and Loan Insurance Corporation
Statistical tables:
Nos. 1, 2: Number and estimated cost of new family dwelling units . . .
No. 3: Small-house building costs
Nos. 4, 5: Estimated lending activity of all savings and loan associations .
No. 6: Index of wholesale price of building materials
No. 7: Monthly operations of Federal and State-chartered insured associations
No. 8: Institutions insured by the Federal Savings and Loan Insurance
Corporation
No. 9: Lending operations of the Federal Home Loan Banks
No. 10: Government investments in savings and loan associations
Nos. 11, 12: Home Owners' Loan Corporation
Nos. 13, 14: Mortgage recordings
306
308
308
308
309
309
310
310
311
311
312
314
316
317
318
318
319
319
319
320
FEDERAL SAVINGS AND LOAN
INSURANCE CORPORATION
HOME OWNERS' LOAN
CORPORATION
w
REPORTS
From the month's news
Directory of member, Federal, and insured institutions added during April-May.
298
321
SUBSCRIPTION P R I C E OF REVIEW. T h e FEDERAL H O M E LOAN BANK REVIEW is t h e Board's medium of communication w i t h member
institutions of t h e Federal Home Loan Bank System and is the only official organ or periodical publication of t h e Board. T h e R E V I E W
will be s e n t to all member institutions w i t h o u t charge.
To others the a n n u a l subscription price, which covers t h e cost of paper a n d
printing, is $ 1 . Single copies will be sold a t 10 cents. Outside of t h e United States, Canada, Mexico, and t h e insular possessions, subscription price is $ 1 . 6 0 ; single copies, 15 cents. Subscriptions should be s e n t t o a n d copies ordered from Superintendent of Documents,
Government P r i n t i n g Office, Washington, D. C.
A P P R O V E D BY T H E BUREAU OF T H E BUDGET.
233702—40
1
WAVERLY: A DEMONSTRATION OF
NEIGHBORHOOD CONSERVATION
The most comprehensive analysis of a residential neighborhood
ever undertaken shows that prevention can halt neighborhood
decay. In the Waverly area in Baltimore, where individuals
have been powerless to check the spread of blight, a coordinated
program has been developed to accomplish an effective cure.
•
U L T I M A T E social and economic decay, requiring a surgical operation in the form of
demolition, is not necessarily the last chapter in the
history of every urban residential neighborhood.
This is the conclusion drawn by technical experts
who have studied the Waverly area in Baltimore, a
residential district which shows marked evidence of
depreciation in usefulness and property values.
Their analysis shows that a coordinated and sustained neighborhood conservation program will
usually provide a practical preventive remedy for
community corrosion.
The Federal Home Loan Bank Board has been
concerned for many years with the national problem
of neighborhood disintegration—the process which
leads to slums. Its agencies and their member institutions have a direct financial stake approximating seven billions of dollars in the preservation of real
estate values in urban communities. I t was a paradox that the Nation's slums had aroused the attention
of many, b u t t h a t the blight within residential areas
which leads to slums and which may start with the
obsolescence or neglect of a single property was
spreading without any semblance of control. I t
was true that diseased spots could be cured by the
costly process of demolition and reconstruction under
Government sponsorship, but only the cooperation
of property owners themselves could preserve their
own equities and halt obsolescence of neighborhoods
before they reached the slum stage, where all values
are lost and total demolition is the only solution.
In seeking a preventive program which would
safeguard values continuously, under the leadership
of the home owners themselves, the Board authorized
active participation in a survey and planning program in the Waverly district of Baltimore, Maryland.
A report to the Board l on the broad community
i "Waverly—A Study in Neighborhood Conservation" was prepared by
Arthur Goodwillie, as Economic Assistant, under the direction of Donald
H. McNeal, Deputy General Manager of the Home Owners' Loan Corporation,
and may be ordered when published from the Superintendent of Documents,
Government Printing Office, Washington, D. O.
290
conservation plan t h a t has been developed there
shows that the major underlying causes of urban
blight are the same, its economic and social effectis the same, and its remedial treatment is virtually
identical, in all communities. The Waverly area is
only one of hundreds of similar districts to be found
in the cities throughout our country; it is part of
the national problem of urban decay.
In this report, a pattern is laid down by which all
communities may guard and stabilize the gigantic
investments in residential properties of the type
which in years past have vanished through neglect
and decay. I t is the story of Waverly from the time
of settlement to the present day—its development, its
true values, its partial disintegration, its problems,
and their solution. I t is not only a record of the
survey and planning phase of the project, but also a
guide for urban communities which, aware t h a t prevention can halt neighborhood decay, are seeking a
program to adopt and follow. I n the files of the
Board—gathered through the operations of the
HOLC—are studies of more than 200 cities. Compiled through access to confidential information, supplemented by careful investigations and analyses by
competent technicians, they show the fate t h a t lies
before scores of residential neighborhoods. Yet the
residents of these neighborhoods would be the first
to reject the suggestion that their equities will be
menaced in the immediate future.
I t is to awaken communities to such problems as
these—as well as to provide a pattern by which to
solve them—that the Federal Home Loan Bank
Board is publishing this Survey Report.
In this article, we are concerned with the background of the growth and decline of Waverly, for its
story is a description of the usual genesis, direction,
and result of neighborhood decay in American cities.
Then, having clearly isolated the infection, later
articles will tell the story of the technical findings, of
the Master Plan based on this survey, and of the
organization of the local neighborhood machinery
Federal Home Loan Bank Review
WAVERLY AREA
SLUM DISTRICTS
THE WAVERLY AREA
BALTIMORE, MARYLAND
SHOWING SURROUNDING TERRITORY
AND SLUM DISTRICTS
HOUSING AUTHORITY OF CITY OF BALTIMORE I
The Waverly District, sketched in solid black in this map of Baltimore, is one of the oldest subdivisions in the city, and is surrounded by newer and more
modern developments, except on the south, where its contact with the downtown districts exposes it to the infiltration of sub-standard influences. To the west
and northwest lies one of the finest residential districts in the city; to the north and east are new, high-class neighborhoods; at its southwest corner, across the
protective barrier of Greenmount Avenue, is a comparatively small dilapidated district which affords an excellent example of that blight and corrosion from
which the Conservation Program intends to protect Waverly. To the south is a fully developed, though not congested, slum district, which definitely threatens
the Waverly area by its contiguity and by actual infiltration. At one point, the two virtually adjoin, being separated only by a wedge-shaped tract, improved
with modern homes in an excellent state of repair. The slum's pressure to cross this sharply defined barrier is steady and definite, and has been successfully
resisted only by means of the high neighborhood standards which have been maintained within this triangular section.
June 1940
291
that will supply the leadership for the actual execution of the conservation program in coming months.
execution of that Plan would be a task for the community itself.
T H E WAVERLY DISTRICT
T H E L I F E CYCLE OF A NEIGHBORHOOD
Waverly is an essentially sound residential district, menaced both from within its own boundary
and from without by conditions which demand
planned cooperation by property owners and the
pooling of their interests to halt the present decline
of property values. One of the oldest subdivisions
in Baltimore, it is surrounded by newer and more
modern developments, except on the south, where its
contact with the downtown districts exposes it to the
infiltration of substandard influences. The area
contains 38 square blocks of residential property,
including approximately 1,515 residences and a number of scattered retail, commercial, and industrial
establishments.
The Waverly neighborhood started to grow about
1850 without any specific plan. Structures of all
types and shapes sprang up as the need for housing
increased. New streets followed the lines of old
wagon trails. Only a few streets followed through
connections to others and most are now too narrow
to care for present-day traffic. As the years went
by, row-housing developments appeared in the
neighborhood. The increase in population called
for more shopping facilities, which were often established in the most undesirable places. Lack of
schools and playgrounds and the unsatisfactory
traffic situation created serious problems.
Most of the residents of Waverly are either
original owners or their descendants. The owners
and tenants are people of substantial character,
with considerable evidence of social and civic pride.
Civic and social organizations provide the nucleus
for a strong, well-knit neighborhood organization to
dedicate itself to a long-range program of conservation.
This is the setting for the careful Survey and Planning Study which has been conducted in Waverly.
In this Test Conservation Program, the Baltimore
Housing Authority acted as official sponsor; the
Works Progress Administration furnished a staff to
conduct a survey of conditions and needs; and the
United States Housing Authority and the Home
Owners' Loan Corporation contributed the essential
technical services. Municipal authorities and civic
leaders cooperated in every step of the project, in
the realization t h a t the Government's part was only
one of direction until a Plan could be evolved. The
How do these " Waverly districts" arise? We can
trace the life cycle of many a residential area in
terms of the early history of population growth. I n
1800, 211,000 persons—4 percent of the Nation's
entire population—dwelt in the six American cities
which then had a population of 8,000 or more. By
1920, there were 46,000,000 people—44 percent of
the inhabitants of this country—living in the 924
American urban centers having a population greater
than 8,000.
Urban development—the remarkable increase in
the number of cities and the constantly accelerated
rate of their population growth—was often forced,
as it strove to meet the equally rapidly expanding
requirements of our national economy. This made
exceedingly difficult the production of any orderly
plan for the extension of the physical and social
patterns of our cities. The conservation of existing
physical resources was frequently ignored or wholly
forgotten in the haste to develop new wealth and
novel amenities of life. As wealth increased, standards of living changed rapidly, and swifter and more
comfortable forms of urban and interurban transportation and communication were developed. All
of these invited increasing migration to the fringe of
the urban settlement, and as advancing age and
comparative obsolescence began to set their mark on
formerly desirable neighborhoods, they were quickly
and lightly abandoned to those economically less
able to command all that was most desirable in the
location and quality of their homes.
Thus began the decline which so frequently produced urban blight—for while America was growing,
it was also wasting away.
More recently, another factor—the slackening rate
of increase in population growth—has tended to
hasten the development of depressed urban areas.
For the first time in our national history, net city
and suburban population is not increasing rapidly
and such growth as exists is at the urban rim.
The capital loss occasioned by community disintegration is apparent to the most casual observer.
Once decay sets in, property values gradually decline.
Nor does the shrinkage in investment values represent all of the loss. The cost of necessary municipal
services, the cost of educational, health and hospital
services for slum dwellers and the cost of delinquency,
292
Federal Home Loan Bank Review
immorality and crime, are out of all proportion to
the contribution of these areas to the general support
of government. They therefore entail an enormous
net public revenue loss to the community as a whole.
The heavy cost of urban blight, in the form of
shrinking taxes, on the one hand, and increased
expenditures, on the other, is the channel through
which a considerable portion of the income of almost
every city in the United States, over 50 years old,
is being drained away. (For a blighted Cleveland
district, municipal income was $225,000, but the cost
of maintaining that area was $1,900,000. A square
mile in Chicago, during a recent 3-year period,
returned $586,000 in taxes, while the city's outlay for
public services was $3,200,000).
In its life cycle, the neighborhood begins with the
need of a growing city for additional homes; thus is
developed a new area reflecting all that is modern in
construction, sanitation, and mechanical equipment.
I t then passes through a considerable and often comparatively long period of normal use, marked by
reasonable maintenance. I t next begins to suffer
from advancing age, accelerating obsolescence, and
structural neglect. As the process of decay continues, investment and rent values gradually fall.
Since these values no longer justify proper maintenance, repairs are progressively scaled down or are
wholly neglected. One by one, individual residential
units—and presently the district as a whole—show
marked evidence of serious deterioration. Finally,
the district emerges as a slum area.
Why have we permitted our urban areas to decline
in this way, almost unchecked? One reason is that
we have always considered the constantly accelerating disintegration of the urban neighborhood to be
an inescapable process which more or less superficial
repair, at increasing intervals, might momentarily
delay but could not long halt. Then, too, sporadic
and unrelated individual effort can never stop the
gradual decay of an older neighborhood. Once it
commences to decline, home owners with growing
incomes and increasing families gradually surrender
it to those who must live on a relatively lower
economic scale. The number of old housing units
throughout the country which each year thus crosses
the line into the substandard class greatly exceeds
the number of new units constructed during the same
period. As a result, one sixth of the urban dwelling
units in the United States have reached that condition
of aggravated obsolescence that puts them beyond
any reasonable program of rehabilitation.
June 1940
A SURGICAL OPERATION OR A PREVENTIVE REMEDY?
Whatever the eventual remedy for the malady of
fully developed urban decay, the cure will necessarily
be exceedingly slow, involving first, the equivalent
of a costly major surgical operation to remove these
diseased areas from the body of our urban communities and second, a tremendous rebuilding program. No program would be complete, however,
which leaves untouched the preservation of existing
standard housing.
The history of our American cities shows little or no
effective effort to delay, in its intermediate period,
what has too generally been considered the inevitable cycle of growth and decay. First, because
property owners have not been aware that neighborhood decay can be definitely arrested and even
reversed; second, because funds and technical advice
required to produce a pattern for that purpose have
not been readily available to them.
The greatest cause for regret is the fact that the
costly major surgical operation which must presently
be performed on so many urban communities could
frequently have been avoided by the earlier application of a comparatively inexpensive preventive
remedy. I t is not a remedy which will serve to
rejuvenate or perpetuate a district where physical
structures and equipment are in so advanced a stage
of deterioration as to be unfit for normal use. Usually, the only cure for an area of that type is complete demolition and subsequent replanning.
The proposed preventive treatment is designed
for those older neighborhoods which have not yet
approached slum status, but in which the sinister
effects of age and obsolescence are beginning to gain
so disruptive a momentum that they will be eventually carried below the limit of normal usefulness
and beyond rescue, by either individual or collective
effort, unless steps are taken to control these trends.
Rarely does a residential district develop into a slum
because of factors beyond the control of those who
live in it. Decay is usually due to the fatalistic
attitude of the whole body of property owners themselves. I t begins with one house, and halts if and
when all home owners concerned, each for his own
best interest, determine that blight shall extend no
farther. Coordinated neighborhood action cannot
check forever the tendency of neighborhoods to
decline in attractiveness and economic value, but
trends can be controlled and general disintegration
can be almost indefinitely postponed.
{Continued on p. 324)
293
THE THIRD ANNUAL "HUNT FOR FACTS"
PART 3
Many savings and loan executives and boards of directors will meet this month to determine advertising
budgets and promotional programs for the last half of
1940,
To furnish auxiliary material for their discussions, the REVIEW presents a detailed analysis of the
replies by income groups and by geographic location.
•
HOW much do other savings and loan associations spend for their business promotional programs? How do they use these funds? These are
two of the questions which many boards of directors
will ask of their managing officers as they gather
around conference tables this month to determine
and approve advertising budgets and public relations
programs for the last half of this year. To furnish
answers to these queries, a special analysis has been
prepared of the returns to the third annual " H u n t
for F a c t s " questionnaire distributed by the Public
Relations Department of the Federal Home Loan
Bank Board.
I n the following discussion, savings and loan association executives will find reference material which
will give them a yardstick to measure the business
promotion efforts of their own institutions. A managing officer will be able to compare his institution's
promotional activity in 1939 with the record of other
associations of similar size in his own District, in
neighboring Districts, and in the country as a whole.
This article tells how much associations of different
sizes spent for business development last year, showing the average amount of business promotion expenditure and its relation to gross operating income,
to assets, and to the volume of new business which
they obtained.
To permit more accurate local comparisons, a
number of tables and charts are shown which indicate
first, how the amount of money spent varied in the
different Bank Districts and with associations of
different gross operating incomes, and second, how
the media used were influenced by these same factors
of location and size. Finally, basic variations in the
business promotion programs of the three classes of
associations have been computed revealing the disbursements of Federal, insured State-chartered, and
uninsured member associations, also classified by
their gross operating income volume.
294
EXPENDITURE BY SIZE OF ASSOCIATION
To study the importance of the size factor in the
volume of savings and loan expenditures for business
promotion, the schedules of reporting associations
were sorted into nine gross operating income sizebrackets as well as by the Federal Home Loan Bank
District in which they were located. There were
1,087 institutions which had indicated their gross
operating income, year-end assets, total business
promotion expenditures, and the amount of new
mortgage loans and new private share capital
received during 1939. With these basic data, ratios
were established to determine the pattern for the
different size groups.
Table 1 shows the national picture for these relationships at each of the gross operating income levels.
I t is clear that there is no consistent tie-up between
the amount of promotional expenditure and association size. For all except the largest institutions,
however, the totals fell in the range of 2.4 to 3.0
percent of gross operating income. I n examining the
relationship of business development spendings to
the assets at the end of the year, it was still not possible to establish a regular pattern. If any conclusion
can be drawn, it is that associations with average
assets ranging from $702,000 to $4,658,000 tended
to spend a greater proportion for acquiring new customers than did either the smallest or largest organizations.
It elating the amount of "new business" to association promotional expenditures is a relatively recent
development in these " H u n t for F a c t s " analyses.
This statistic is derived by adding together the
amount of new private share capital reported as
received during the year and the volume of new
mortgage loans. By dividing this sum into the
amount of money spent, it is possible to arrive at
an estimate of the cost of obtaining this additional
Federal Home Loan Bank Review
RATIO OF BUSINESS PROMOTIONAL EXPENSE
TO GROSS OPERATING INCOME
BY CLASS OF ASSOCIATION AND INCOME
5
W
f*
•
ASSOCIATIONS^^
^
^
t
GROSS
SL-ALL
INCOME
y\y FEDERALS
*
- STATE-INSURED
i
w
1
JS^
^ STATE-UNINSUREL •
1 *\ N r 1
1
/ #
/ i
f
1
r\
i
$
#
/
#
j
PERCENT OF
^w
OF GROSS INCOME
'
|
GROUPINGS
5
PERCENT
activity. I n terms, then, of new business obtained,
the smallest associations were apparently spending
the least per dollar of additional private capital and
new mortgage loans: about one-fourth of 1 cent.
Although there are no definite trends indicated, it
does seem that the higher an association's ratio of
business promotion expenditure to gross operating
income, the greater is the cost per dollar of new business. There are a number of exceptions to this
relationship, however, but it projects one thought
which should be uppermost in the minds of savings
and loan executives: it is not the actual dollar amount
expended which is of prime importance, but rather
the effectiveness with which an advertising program
is planned and carried through to its conclusion.
From Table 1, it is apparent that business promotion
expenditures fluctuated from one-quarter of 1 cent
to two-fifths of 1 cent per dollar of new business
obtained. This may denote a wide variation in the
effectiveness and productiveness of the campaigns
themselves.
At the conclusion of this article, additional tables
similar to Table 1 are presented for each Bank
District, enabling a manager to compare his own
institution's 1939 business development program
with the programs of other associations of the same
size in his own section of the country. No attempt is
made to interpret these Bank District tables. They
are not presented as ideal standards, but simply
as promotional programs which were in effect among
institutions in that area during the past year. As such,
they are worthy of careful study and comparison.
i/
//////////// 1
INCOME
GROUPS
The effect of size and geographic location on association business promotion
expenditures are studied in Table 1 and Exhibit A. It is apparent from the
above chart that there are also significant differences depending upon the class
of association. With the exception of the smallest institutions, Federal associations spent the largest share of their gross operating income for business development purposes. Uninsured State-chartered members which replied to the
questionnaire indicated the lowest ratios, with insured State-chartered associations occupying the mid-position.
Table 1.—Business promotion expenditures of 1,087 member associations
[Calendar year 1939J
Gross operating income groups
Over $500,000
$400,000—500,000
$300,000—400,000
$200,000—300,000
$100,000—200,000
$50,000—100,000.
$25,000—50,000-$10,000—25,000- Under $10,000—Total
June 1940
Average
Reporting Average assets, Average
business
gross
associaDec. 31, 1939 operating promotion
tions
expendiincome
ture
Ratio of business promotion
expenditure to—
Gross
operating
income
Assets
Newbusiness
18
7
25
32
121
218
217
266
183
$17, 581, 279
9, 335, 384
6, 980, 878
4, 658, 077
2, 589, 819
1, 360, 543
701, 587
341, 863
145, 994
$925, 787
454, 507
336, 746
242, 544
140, 814
69, 728
36, 178
16, 683
6,380
$17, 397
13, 646
8,103
7,146
4,148
2,017
979
421
182
Percent
1.879
3.002
2.406
2.946
2.946
2.893
2.706
2.524
2.853
Percent
0.099
. 146
.116
. 153
. 160
.148
. 140
. 123
. 125
Percent
0.258
.387
.311
.359
.406
.345
.340
.252
.250
1,087
1, 458, 376
75, 180
1,968
2.618
135
331
295
Table 2.—Percentage distribution of the advertising dollar, by income size groups
o
o
o
go
oo
oo
o~°.
oo
P3§
0&>
THO
oo
oo
o®
oo
coo
6#*0
Newspapers
Publications
Printed material
Radio
Outdoor bulletins
Illuminated outdoor signs
House organs
Office displays
Car and bus cards
Motion pictures
Coin banks
Miscellaneous advertising
47.2
3.0
19.0
10.5
5.0
1.8
3.6
4.3
1. 1
0.3
6.3
7.9
43.0
3.4
10.9
12.6
10.6
1.7
5.2
2.6
0.2
0.0
2.2
7.6
34.8
2.9
9.4
10.5
10.6
0.2
5.3
6.3
4. 1
0. 1
1.4
14.4
48.5
3. 1
7.2
11. 1
4.8
0.8
3.2
3.5
2.0
0.2
9.0
6.6
Total
eeco
1-HO
€/&CNI
50. 1
2. 1
11.5
8.9
5.2
1.0
4.4
2.7
2. 1
0. 1
3.5
8.4
47.4
2.6
8.8
15.8
3.2
1.3
3.5
3.4
0.7
0.2
4.9
8.2
oo
oo
oo
o~d
too
o
<NO
€^»0
T-l I O
50.4
3.9
9.3
7.7
1.9
2.8
2.2
6.0
0.4
0.7
7.8
6.9
47.8
3. 5
8.9
4.3
1.3
3.6
2.4
7.7
0.5
1.3
11.7
7.0
53.3
2.6
12.7
0.5
0.9
5.0
0.5
5.3
0.0
0.9
10.4
7.9
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
100.0
T h a t there were sharp variations in the expenditures of the three different classes of member associations is evident from the line chart on page 295
which shows the ratio of business promotion expense
to gross operating income in each of the nine size
groups of Federal, insured State-chartered, and
uninsured associations. With the exception of a
fractional margin in the smallest institutions, the
Federals consistently spent a greater proportion of
their total income for promotional purposes than
did either of the other two classes. Insured State
members held a position close to the combined
averages, with uninsured State-chartered associations ranking lowest.
DISTRIBUTION OF THE ADVERTISING DOLLAR
The second question which our boards of directors
wanted to know was, "How do other associations
use their business promotional funds?'' The answer
to this question may be found in Tables 2 and 3
which show the distribution of the advertising
dollar for associations of different sizes and for all
associations in each Bank District.
In Table 2, the distribution of the advertising
dollar by size of association shows no apparent correlation and no uniform pattern for the use of newspapers, publications, printed material, car and bus
cards, motion picture theaters, and miscellaneous.
Certain definite tendencies were displayed, however,
by the remaining six media. First, it was evident
that the larger associations laid greater emphasis
upon the use of radio, outdoor bulletins, and house
<NO
oo
oo
©~°.
oo
oo
oo
VARIATION BY CLASS OP ASSOCIATION
296
oo
oo
oo
oo
oo
Media
0~ 0 „
49.3
3.4
7.6
6.9
3.4
2.3
2.9
5.4
1.4
0.4
9. 1
7.9
MO
organs. Second, illuminated outdoor signs, office
displays, and coin banks took a relatively greater
portion of the business promotion expenditure of the
smaller associations than of the larger institutions.
Some of these trends are charted in the bars shown
on the opposite page.
I t is a little more difficult to discern pronounced
variations in the pattern of expenditure when we
compare the distribution of the advertising dollar on
the basis of Bank Districts. For six of the 12 media,
including publications, illuminated outdoor signs,
house organs, car and bus cards, motion picture
theaters, and the miscellaneous classification, there
was no pronounced variation in the relative proportion of the advertising dollar taken.
The use of newspapers showed wide fluctuation,
although they continued to absorb the major portion
of association advertising funds. In the Boston
Bank District, associations spent only 37 cents out
of every dollar for this medium, but in the WinstonSalem area, 58 cents out of every dollar was used for
newspaper advertising. Expenditures for printed
material were above the national average in Boston,
New York, Pittsburgh, Chicago, and Portland, and
were the lowest in Little Rock and Winston-Salem.
Radio was most strongly used in the Midwest and
Southeast (Cincinnati, Little Rock, Topeka, WinstonSalem, Chicago, and Des Moines). Pronounced use
of outdoor bulletins was evident in the Portland
District, while associations in the New York District
showed extensive use of office displays. Coin banks
received the greatest emphasis in the Pittsburgh and
Indianapolis areas, and were used least in Little Rock.
(Continued on p. S22)
Federal Home Loan Bank Review
To illustrate graphically the effect of size and geographic location on the expenditure pattern of savings and loan advertising programs, the above chart has been
drawn from figures in Tables 2 and 3. From this it is apparent that the influence of size is more important than Bank District Identification.
Newspapers attract the major portion of most associations' expenditures, for it should be noted that the scale on their bars is double that of the other four media.
There does not seem to be any geographic trend, but there is a slight tendency for the smaller associations to spend slightly greater amounts for this]type of advertising.
Radio, on the other hand, receives its greatest emphasis from the larger institutions. This is also true of the use of outdoor bulletins, but here we note a geographic
preference in the Southwestern and Far-western areas. Office displays and coin banks become increasingly important in the total picture of the advertising programs
of the smaller associations.
June 1940
297
« FROM THE MONTH'S NEWS
EVILS: "It is not too much to say that
half the evils which cause discontent in
the political world, which cause disease
in the world of health, and which cause
disaster in the world of morals, come from
bad housing."
Viscount Sankey, President,
British Building Societies
Association.
The Building
Societies Gazette, March 1940.
RECONDITIONING: " I question very
much whether there is a city in the United
States today which does not offer a great
field for the wide-awake person who has
the energy, ability, and fortitude to go
into the reconditioning of obsolete properties . . . The greatest market of all is
for single-family homes in the low-price
brackets . . ."
David L. Montonna, release
of National Association of
Eeal Estate Boards, Apr. 19,
1940.
BACK TO THEILAND: "The greatest
boom back to the land is coming in no
time. That's our frontier. It has hardly
been scratched.%There lie our greatest,
our most thrilling potentialities."
The Guaranty Survey, Apr. 29,
1940.
"In the past, city planning for a time was thought of largely as
beautification through parks and playgrounds. In some communities it meant the creation of civic centers. A little later the principal
emphasis was on zoning. Subsequently came planning for vehicular
traffic. More recently city planning has come to be thought of by
many as one phase of the housing problem. . . . Sound city planning must make provision for good residential neighborhoods, where
family life can be encouraged in decent and pleasant surroundings,
and for the protection of these neighborhoods from the intrusion and
consequent dangers of commercialism. It must also make adequate
provision for industry and for business. It must care for the pedestrian as well as for the automobile. It must include provision for a
system of municipal finance and taxation under which owners will
be encouraged to rebuild and rehabilitate their properties as such
action is needed.''
Release of Urban Land Institute,
Apr. 28,1940.
Trends in industrial activity
MANUFACTURING
PRODUCTION
1929
8 , 3 7 0 , 0 0 0 WORKERS
100 PERCENT
O
O
O
G
O
lOOOCK
92
tooo*
1939 o»oo<
1938
71 PERCENT
88 PERCENT
298
WEEKLY PAY ROLLS
$209,500,000
100 PERCENT
&&&&1
PERCENT
• 194,400,000
9 3 PERCENT
&&&i
71 PERCENT
$147,900,000
&&&&
7 , 6 5 0 , 0 0 0 WORKERS
9 1 PERCENT
$172,200,000
82PERCENT
$8,100,000
100 PERCENT
LUMBER
inn
419,000
Release of National Association of Real Estate Boards,
Apr. 14, 1940.
Louis W. Grant, Fifth District
Quarterly, April 1940.
II
QOffiOQ
100 PERCENT
1937
INDUSTRIES
EMPLOYMENT
POPULATION: " In 1880, three-fourths
of the population of the United States
was rural. In 1939, three-fourths of the
population is urban."
CUSHION: "My plea to you is that as a
matter of executive policy you create a
surplus in your institution to provide a
safeguard cushion against unforeseen and
unexpected events. Remember, your institution can always declare a higher
dividend at a later date if you desire to
distribute a part of your earned surplus,
but it cannot reach out in the thin air and
provide a surplus when you need it."
»
City planning
Henry Ford, Forbes, Mar. 1,
1940.
THE WAR AND PRICES: The price level
in this country remains about 5 percent
above the pre-war figure. The wholesale
price level in Great Britain has risen
steadily and is 32 percent higher than
last August. The advance in Canada has
amounted to 15 percent; in the Netherlands, 24 percent; in Switzerland, 20 percent; and in Japan, 17 percent.
»
WORKERS
100 PERCENT
3 2 4 , 0 0 0 WORKERS
G
C
O
C
25.3BILLION BOARD FEET
69PERCENT
2 8 9 , 0 0 0 WORKERS
7 7 PERCENT
6 9 PERCENT
sjyy
15,300,000
65 PERCENT
$ 4,330,000
5 4 PERCENT
$4,740,000
5 9 PERCENT
At the 1939 peak reached in November, manufacturing output was only slightly lower than the busiest
months of 1937 and 1929. For the year as a whole, the output of manufacturing industries was 24 percent
higher than in 1938, but 4 percent lower than in 1937 and 12 percent lower than in 1929.
The quantity of lumber cut in the United States increased substantially in 1939 and almost reached as
high a level as in 1937. In both years, however, the total production of lumber was nearly one-third
smaller than in 1929.
Labor Information Bulletin, March 1940.
Federal Home Loan Bank Review
MORTGAGE RECORDINGS DURING THE
FIRST QUARTERS OF 1939 AND 1940
Year-to-year comparisons of home-financing activity by type of
lender are available for the first time as a result of the Division
of Research and Statistics' study of nonfarm mortgage recordings.
Data in this article reveal not only the changes in the total
activity, but also shifts in the distribution of this business.
M
I N C R E A S I N G more than $90,000,000 over 1939
totals, the dollar volume of nonfarm mortgage recordings of $20,000 or less during the first quarter
of this year amounted to $818,700,000—almost
$11,000,000 for every business day during the period.
With an average mortgage of $2,700, this means that
there were almost 600 mortgages recorded during
every hour the local county offices were open.
This year, for the first time, executives in the field
of home-mortgage finance are able to study comparable year-to-year figures and to analyze changes
in the total volume, as well as the increase or decrease
in the activity of every type of lender, with breakdowns by States, by Federal Home Loan Bank Districts, and for the country as a whole. The analysis
in this article has been prepared from the regular
mortgage-recording tables which appear in the
R E V I E W each month, and although space limitations
prevent a detailed State-by-State presentation,
managing officers and boards of directors will undoubtedly be interested in making similar studies for
their own States, and even their own and neighboring
counties.
CHANGES IN THE TOTAL VOLUME OP ACTIVITY
Each of the first three months of 1940 was substantially above the corresponding month of last
year, with the total recordings for the period exceeding the 1939 levels by 12.6 percent. A consistent
pattern describes the activity of both years: January,
the midpoint, was followed by a decline to a February low, and then a sharp rise to the relatively
high levels of March. This suggests definite seasonal
trends which may be confirmed by future reports.
The largest year-to-year increase was registered during February with a gain of almost 20 percent.
Every Federal Home Loan Bank District, with the
single exception of the New York region, reported a
higher quarterly volume of mortgage recordings than
June 1940
PERCENT CHANGE IN TOTAL MORTGAGE RECORDING ACTIVITY DURING FIRST QUARTER
- 1940 Over 1939 F.HL.B. Oist. Dollar Am't Decrease <\*- Increase
PERCENT
(ooo omitted)5
o
5
10
15
20
25
30
United States$91,755
II
Portland
3
Pittsburgh
7,032
12,272
7
Chicago
13,039
6
Indianapolis
9,418
1
Boston
10,765
5
Cincinnati
13,395
4
Winston Salem
12,910
8
Des Moines
6,585
9
Little Rock
4,087
10
Topeka
1,980
(2
Los Angeles
3,384
2
^^^^^^^^L^^^x
EHZH
3,112
New York
in the same months of 1939. Five of the Bank
Districts (Boston, Pittsburgh, Winston-Salem, Cincinnati, and Chicago) indicated gains of more than
$10,000,000 each. The percentage increase or decrease for each District and for the United States as
a whole is illustrated in the accompanying bar chart
which also shows the dollar changes in the total
volume of recordings.
ANALYSIS BY T Y P E OF MORTGAGEE
Savings and loan associations: Mortgage recordings
by these mutual home-financing institutions were the
largest single factor in the improvement over last
year, and indicated that the savings and loan share
of the total mortgage activity was increasing. Their
$44,000,000 gain was equal to almost half of the
aggregate expansion registered by all mortgagees, and
raised their proportion of the recording volume from
28.1 percent during the first quarter of 1939, to 30.3
percent in 1940.
299
On a Bank District basis, associations in the Cincinnati and Chicago regions reported the most
substantial amounts of new business, with both
Districts indicating increases of more than 40 percent. Although there were no areas which reported
a lower volume of recordings than during the same
period of last year, the gains in the New York and
Los Angeles Districts were slight.
Banks and trust companies: Activity by this classification of lender claims second place in the volume
of recordings again this year, but their proportionate
share of the total decreased from 26.5 percent during
the first three months of last year, to 24.9 percent
for the first quarter of 1940. The $11,600,000 increase of bank and trust company recordings indicated a 6-percent improvement over a year ago.
Geographically, institutions of this type in the
Pittsburgh and Indianapolis Federal Home Loan
Bank Districts ran considerably ahead of the
national average with gains of 29 percent and 25
percent, respectively. There were three regions,
Savings and loan associations, mutual savings banks, and the "other" mortgagee classification indicated a larger share of the total mortgage recording volume
during the first quarter of this year than in the same 1939 period. Banks and
trust companies dropped 1.6 percentage points, while the decreases of insurance
companies and individual lenders were fractional.
300
however, in which this year's volume of nonfarm
mortgages of $20,000 or less fell behind that of a
year ago (New York, Little Rock, and Los Angeles).
Individuals: Ranking third in a percentage distribution of the recording volume, individuals continue
to furnish an important source of funds for homefinancing in this country. Of the dollar volume of
mortgages tabulated during the first quarter of this
year, individual lenders accounted for 17.7 percent
of the total as compared with 18.6 percent in 1939.
With a $10,000,000 increase over last year, these
lenders raised their recording volume to almost
$145,000,000 (up 7.5 percent). All but two Federal
Home Loan Bank Districts (New York and Cincinnati) reported a greater volume of mortgages by
individual mortgagees, with the rise in the Portland
region amounting to as much as 42 percent.
Other mortgagees: The $14,400,000 rise in the
recordings by this miscellaneous classification of
mortgage lenders was the second largest dollar increase reported, and was equivalent to a gain of 13
percent over last year. Their proportionate share
of the total recordings showed a fractional improvement and amounted to slightly more than 15 percent
in both years.
In the Portland region, mortgage registrations by
these lenders were more than half again as large as
during the first quarter of 1939, while the dollar
volume in Pittsburgh and Los Angeles was about
one-third greater than a year ago. A 2-percent
decrease was reported in the Boston District, and a
10-percent drop was noted in the Cincinnati area.
Insurance companies: Slightly less than one-twelfth
of the total volume of mortgage recordings is
accounted for by the activity of insurance companies
which this year reported a total of more than
$66,000,000 during the first quarter—an increase of
about 10 percent over the same 1939 period. The
fact that their portion of the business remained
relatively unchanged indicates that these institutions
are keeping pace with the expansion of activity.
Insurance companies appear to have made greatest
gains in the Midwestern and Southwestern sections of
the country, for the Indianapolis, Chicago, Des
Moines, and Little Rock regions each reported
advances of more than 20 percent above last year.
Declines were shown in two Districts: New York
and Cincinnati.
Mutual savings banks: The largest percentage
gains over 1939 were registered by mutual savings
banks (up 22.4 percent). Although the contribution
(Continued on p. 824)
Federal Home Loan Bank Review
A N A L Y S I S OP C H A R T
To facilitate a study of shifts in the sources of home-mortgage financing funds, this chart indicates the proportion of the total volume of recordings accounted for by
each type of mortgage lender in all of the 12 Federal Home Loan Bank Districts, during the first quarters of 1939 and 1940
From this it may be seen that savings and loan associations have increased their participation in eight of the 12 Bank Districts, with the most substantial gains being
shown in the Cincinnati, Boston, and Chicago regions. Decreases were registered in the Indianapolis, Des Moines, Topeka, and Portland areas. Insurance companies
posted smaller percentages during the first quarter of 1940 in seven Districts, with a larger proportion of the total business in four others, and no change in the Topeka
District. Banks and trust companies reflected almost this same pattern also having increased percentages in four areas, but showing a smaller representation in the remaining eight. The percentage of the total mortgage recordings in the New York Bank District attributable to mutual savings banks rose 3.5 percentage points, but all
other District movements were fractional. The individual lenders' shares of the total recordings exhibited eight declines and three increases, while changes in the proportion of the total business done by other mortgagees were evenly divided.
Jum 1940
301
REGISTERED HOMES—A STIMULUS TO BUILDING
Cooperation between home-financing institutions and representatives of the building trades in a program of supervised
construction provides incentive to building in Fargo and
Moorhead.
•
W I T H the stimulus of a trial program of supervised construction, the adjoining cities of Fargo,
North Dakota, and Moorhead, Minnesota, made
1939 the best residential building year since 1927.
More than twice as many dwellings were constructed
last year in these two cities as were constructed in
1938 and nearly four times as many as in 1937.
I t is agreed generally that this stimulus to building
was created by the Federal Home Building Service
Plan's "registered home" campaign, co-sponsored by
the Federal Home Loan Bank Board, the Producers'
Council and the American Institute of Architects,
and inaugurated locally last spring. Prior to the
adoption of this program, no method of arousing
interest in the low-cost field—the field in which the
Plan is designed to operate—had proved successful
although the need had long been felt.
The first step in establishing the program of
supervised construction in this locality was taken
early in 1939. Support and cooperation were obtained from businesses devoted to the financing,
construction, and equipment of homes, including
savings and loan associations, lumber companies,
contractors, decorators, etc. This group united to
form the Fargo-Moorhead Better Homes Association,
a nonprofit organization designed to assist the smallhome buyer and to promote the building of better
homes in these two communities. The executive
vice president of the First Federal Savings and Loan
Association of Fargo was elected chairman.
The next step was the selection of a capable
architect to make recommendations as to approval
of designs, and to render a modified advisory and
construction supervisory service. Thus, there was
made available to the local small-home seeker the
"registered home" benefits of the Federal Home
Building Service Plan.
Next came the development of an advertising
campaign. A 3-month schedule was worked out with
the Fargo newspaper at a cost of $500 which was
raised by the savings and loan group. After three
weeks of advertising, the chairman of the Better
302
Homes Association reported that 25 persons had
called on him expressing a definite interest in building and asking for further details about the Plan.
So successful was this 3-month campaign that it was
extended for an additional six weeks.
The first home built under the Home Building
Service Plan in Fargo was completed in October 1939.
By the first of May of this year, 10 houses had
received certificates of registration and five more
which will receive registration certificates upon completion were practically finished.
Despite the normal slackening of building activity
during the winter and early spring months, permits
for the construction of 31 dwellings to cost $87,325
and 15 to cost $60,500 had been issued in Fargo and
Moorhead, respectively, during the first four months
of 1940. Comparing these statistics with the 1939
figures for the same period—six residences costing
$17,200 in Fargo and nine costing $20,300 in Moorhead—it is evident that even greater gains will be
shown during the present year.
The high level of building activity since the inauguration of the "registered home" program of the
Better Homes Association is shown in the following
comparative figures. During 1939, 87 dwellings
were constructed in the North Dakota city for a
total building permit valuation of $475,000—almost
three times the number and cost of those constructed
during 1937 and 1938. I n the small city of Moorhead,
98 dwellings costing $311,950 were erected last year
compared with only 16 ($61,000) in 1937 and 45
($129,000) in 1938.
1940
ADVERTISING PROGRAM
Starting out as a small cooperative project, the
value to the communities of this increased home
building activity has been generally recognized.
The advertising program in 1940 is being supported
not only by the savings and loan associations but
by lumber dealers, contractors, plumbers, electricians,
and other members of the building trades. More
than $1,000 is expected to be raised for the campaign.
Federal Home Loan Bank Review
For the coming summer, the advertising program
will be focused around a demonstration registered
home which is now under construction, sponsored
by the Fargo Builders' and Traders' Exchange. The
plans for this house were designed by a Fargo architect and construction is being supervised and inspected regularly. When it has been completed, a
sign will be erected on the site stating that the
house will be duplicated by any contractor who is
a member of the Builders' and Traders' Exchange
for the same cost as the demonstration house—
$3,870 not including the lot.
The public is invited to inspect the construction
of the model home which will contain a large living
You can BUILD AND OWN this
TRADE-MARK REGISTERED
HOME
Under The Fargo-Moorhead Better Homes Ass'n. Plan
ARCHITECTURAL ADVISORY & CONSTRUCTION
SERVICE Was Formerly Available Only to Those
Building Costly Homes.
• Few individuals are experienced to cope -with tha
complexities of home building..
• The Fargo-Moorhead Better Homes Association in
co-operation with local Architects and Contractors
and Building and Loan Associations in Fargo are
ready and willing to offer help and guidance to
those intending to build this year.
• By means of this service, builders of small homes
are afforded the building safeguards usually restricted to large homes costing $10,000 or more.
1. Economical-to-build home plans, designed by registered Architects.
2. Guidance in selecting the plan best suited to your
family and your poeketbook.
tl. Competent supervision to assure that plans and materials specifications will be translated into a well
built structure.
4. Low first cost, lasting satisfaction and economy in
maintenance.'
5. A one mortgage, pay-out-of-income financing plan
suited to your individual requirements.
FARGO-MOORHEAD
Better Homes Association
Local newspaper advertising has been one of the principal means of keeping the
drive for' 'registered homes'' before the populace of these two communities. Ads,
similar to the one above, have been run each week by the Fargo-Moorhead Better
Homes Association accompanied by illustrated news stories recounting the
progress of the model home being constructed.
June 1940
room, two bedrooms, kitchen, dining alcove, bath,
and full basement. The basement not only makes
for a better home b u t is consistent with the Fargo
building code which requires foundations to go below
the frost line. Walls of the basement will be of
poured concrete re-enforced with steel rods.
Both the Fargo and Moorhead newspapers are
participating in the advertising program by publishing a news story and picture of house plans
approved for registration each week.
The communities' response has been expressed in
a recent editorial in the Fargo newspaper in which
it said:
"Fargo is one of about 25 cities in America where
an intensified campaign for the construction of small
homes under a 'trade-mark' plan is to be carried
on. . . .
"The man with ample funds can afford to employ
an architect to plan his home, to advise him about
the contractor, the types of material to be used and
the various details of construction which insure that
his home is well and properly built. B u t the man
who constructs a low-cost home can ill afford to pay
the fees which a competent architect must have if he
designs a home, and supervises its construction.
"Planning and building a modern home—especially
in this northern clime where it must be insulated
and well-built to withstand the rigors of winter—is a
job for an expert. There are many intricate and perplexing problems to be decided. . . . "
The editorial pointed out that the Federal Home
Building Service Plan, however, affords small-home
seekers the essentials of an adequate architectural
advisory and construction supervisory service a t a
fee well within their limited budgets, and ended by
saying: " I t is a commendable program, and as cost
of financing is now a t a record low figure in Fargo,
may be expected to give a great stimulus to the home
construction business here this year."
The methods adopted by local construction and
home-financing factors in Fargo and Moorhead to
organize and promote the use of better planning,
design and materials, and the construction of
"registered homes" are, in many respects, unique.
The Fargo-Moorhead approach to successful operation of the Plan is through the participation of all
elements of the local construction industry, since it
is recognized that the only lasting basis for an everincreasing volume of home building is that the home
buyer be given good design and layout, good quality
of materials and sound construction.
303
THE EFFECT OF THE WAR ON BRITISH
BUILDING SOCIETIES—PART 2
What changes have been necessary in the operating policies
of these societies? The answers to this question are found
in this second and concluding article discussing the significant
aspects of nine months of operations under war conditions.
•
W I T H the cost of prosecuting the war running
into the millions of dollars each day, it is inevitable
t h a t an increasing burden of taxation is the motivating force behind many changes in the operating
policies of all business organizations in Great Britain. Higher taxes have a direct effect upon building
societies for they pay the income tax which is levied
on dividends credited to the savings accounts in their
institutions. While providing an attractive inducement to new members in the form of tax-free investments, this extra charge upon the societies' income
presents a definite challenge to the ability of management to cope with its effect upon dividend rates,
interest rates, and reserves and undivided profits.
In the 5-year period from 1935-1940, the tax load
rose approximately 67 percent, the rate ranging from
about 8 percent of the total dividends paid on shares
and deposits to nearly 14 percent at the start of this
year. Moreover, the agreement covering certain
exemptions which were in force during that period
came to an end during the first week in April. Although there is no information available as yet on
the current negotiations for new arrangements, the
proposed flat rate for the new tax is not only higher,
b u t the allowable deductions are likely to be reduced
and other changes are contemplated which will make
this source of Government revenue more productive
of funds for war purposes.
I n addition to this levy on the dividends paid to
shareholders and depositors, the societies also contribute to the National Defence Fund through a tax
on their gross incomes. A study of the profit and
loss statements of a number of institutions reveals
t h a t as a general rule the combined total of these
taxes exceeds the amount spent for management
expenses. I n many organizations, from 12 to 16
percent of the gross operating income must be appropriated for tax payments. To assimilate these taxes
and further increases which may be ahead, it is essential t h a t management maintain a sufficient spread
between interest and dividend rates.
304
INTEREST RATES
Several years ago, when the average interest rate
on mortgages in England ranged from 5 to 6 percent,
many building societies agreed to lower their rates
to 4K percent in line with the trend toward lower
money rates. In some instances this was accomplished by rewriting the old instrument and setting up
the new interest charges in the contract. Many institutions, feeling t h a t the downward movement of
investment yields was only temporary, met the competition by accepting payments at the old rate and
then granting rebates at the end of the year.
Now that the country is at war and the societies
are required to carry this heavier tax-load, it is
natural that they should begin to look about for ways
to offset these new charges. The restoration of
interest rates to their former level appeared to many
to be one solution to this problem. I n those cases
where rebates were extended, it was a comparatively
simple procedure to withhold these refunds. I t has
not been as easy, however, to raise rates on mortgages
with lower interest written in the contract.
Although the only legislation passed thus far
which specifically forbids the raising of rates applies
only to other than owner-occupied dwellings, laws
have been put into effect which place a definite bar
to such action on the part of the mortgagees. The
Court (Emergency Powers) Act, 1939 provides that
if a borrower refuses to submit to an increase in his
interest charges, he has a right to a hearing in court
before the holder of the mortgage can complete foreclosure. The courts, it has been shown, are extremely hesitant to allow such an increase especially
if the borrower can demonstrate that his inability
to meet the added obHgation is a result of the war
through increased cost of living or reduced income.
There are no restrictions on the rate which can be
charged on mortgages made after September 1,
1939, and according to individual building society
reports most new^contracts are being made at 5 perFederal Home Loan Bank Review
cent. The volume of new mortgages is so slight,
however, that the added funds available from these
loans is negligible.
DIVIDEND R A T E S
A second approach to the problem of increasing
the operating margin of these societies lies in a reduction of the dividends paid on the share accounts and
deposits. This would have a double effect: widening the spread between interest and dividend rates
and decreasing the liability for income taxes levied
on these payments.
Dividend distributions of the building societies
would appear to be quite liberal in view of the taxexempt features which they offer investors. Generally speaking, these institutions have been paying
from 3 to 3K percent to their shareholders and 2% to
3 percent to their depositors.
When allowance is
made for the payment of the income tax, these rates
are equivalent to approximately a 5-percent return
to those who are liable for the full amount of the tax
on any portion of their income.
Those opposed to this method of raising the societies' revenue point to the fact that these shares and
deposits are withdrawable on notice and that if his
dividend is decreased, the investor might take his
funds elsewhere—thus imposing a further drain upon
liquidity. Proponents of the plan, on the other hand,
contend that the building societies would continue to
attract funds in spite of a reduction in yield. They
argue that there are few investment outlets which
offer an equal protection of principal, a comparable
degree of availability, and a similar rate of return.
R E S E R V E S AND LIQUIDITY
There is scarcely a published report of these
institutions which has not emphasized the necessity
for maintaining a reasonable degree of liquidity and
adequate backlogs of reserves. The importance of
these factors is never more significant than when
business or financial organizations are operating
under extraordinary conditions. With the increase
of withdrawals during the last few months, many
societies have an even keener appreciation of these
requirements. Although there is no central reserve
credit system similar to the Federal Home Loan
Bank System, borrowings from banks to obtain cash
have been rare, but management is concentrating
now on retaining new savings investments and loan
repayments to improve the liquidity position.
The annual reports which have been released re-
T H E E F F E C T OF THE W A R ON O F F I C E R O U T I N E
Aside from the direct effect of the war upon the
financial operations of these societies, their normal
everyday office routines have been completely
changed. Because of the danger of air raids, most
of the establishments with headquarters in the heart
of the larger cities, or near military objectives, have
initiated mass decentralization plans. While maintaining skeleton forces in the cities to handle loan
repayments, withdrawals, and new investments, the
records together with the bulk of the personnel have
been moved to the country.
When war came, the entire accounting staff (approximately 150) of one of the larger societies was
transferred from London to a country estate which
had been purchased previously for just such an
emergency. I t had been completely remodeled, redecorated, and camouflaged for use as an office.
Fourteen dormitory huts were built for sleeping accommodations ; a large kitchen and dining room were
equipped; and now the entire staff is living as well as
working on the premises.
Air-raid precautions, of course, played a prominent part in the reconditioning, and a bombproof
shelter was constructed approximately 100 feet below
the ground level, and 300 yards in size. This is
primarily for the safe storage of deeds, securities,
and duplicate accounting records, but it is also available for staff protection in event of air attack.
Air-raid precautions, bombproof shelters, duplicate records, blackout measures, and sand-bag protection have added tremendously to the operating
expenses of all British societies. In addition, a substantial portion of the regular personnel have been
called for military and national service, and experienced replacements are difficult to obtain. Efforts are being made to obtain a "reserved occupation" rating for employees of building societies above
a certain age limit similar to that which has been
granted to insurance company, commercial bank,
and Friendly Society personnel. This, it is believed,
would help temporarily to solve the problem of
further reductions in office staffs.
305
June 1940
233702—40
cently indicate that the accumulation of reserves has
been accelerated greatly since the outbreak of the
war. This is logical in view of the increased opportunities for losses either through loan defaults or
damage resulting from air raids. As pointed out
previously, this is another reason behind the efforts
of these institutions to widen their operating margins.
3
SUMMARY OF RESIDENTIAL CONSTRUCTION
AND HOME-FINANCING ACTIVITY
L With new loans of $108,000,000
more than 10 years.
A. All purpose classifications
during April,
reflected
the same month of last
B. Federal
III. April residential
of this year.
A.
IV.
construction
this improvement,
reached
and refinancing
the highest monthly volume in
loans showed the greatest gains over
members established
new monthly
lending
peaks.
recordings: January-April,
1940: $1,159,000,000.
January-April,
gain in 1940, savings and loan associations accounted for almost
showed a 40-percent
The net increase for the year-to-date
maintained its anticipated
pace.
Building costs continued
remain above August
but construction
activity
year.
and State-chartered
II. Cumulative nonfarm mortgage
A. Of this $150,000,000
savings and loan mortgage-financing
improvement
1939:
$1,007,000,000.
$70,000,000.
over the same month of last year, and an 18-percent
(four months) of 12 percent
would
have been even larger
a gradual downward movement, with declines in both material
1939 levels in most communities reporting for May.
and labor
gain over
if the USHA program had
costs in some areas.
V. Two successive monthly increases have brought the index of metropolitan
foreclosures back to the levels at the beginning
Cumulative activity for the first four months of 1940, however, is 28 percent below the same 1939
period.
VI. General business showed signs of improvement,
of industrial
production.
but no immediate
RESIDENTIAL BUILDING ACTIVITY
reversal of recent trends is indicated,
March
Total costs
of the
year.
nor any marked change in rate
AND SELECTED INFLUENCING FACTORS
1926-100
1
600
r
A/%JL
500
400
t\*
^^"
300
"
-z^FORECLOSL
into
-
"ITTTllTTTirilllllllllllllllllll
" [j |I 1 1 1 1 I 1 1 1 | 1 I I I 1 1 1 1 1 I 1 1 1 I1
^N^^-v 1
200
Ml
£WILDING MA WERIAL PRJ CESQ
100
N
U^^M*t*S!°:sS»«e«e«aftw__
^-v^
60 f
50
40 \
b-
. .S
*T"***"
/
•s^.^^ / \ ^
M/lAilirAf!TI
IDIMG
DAVOrtl
t * j. (2)
id 30
W /^'!l|
o
N
20
^
^P
SOURCE: (1)
(2)
(3)
(4)
inn
306
NtolUtN TIAL
n..~™*.
COfl/STnuof/i/n
(ADJUSTED FOR SEASONAL VARIATION)
(4)
MllHUly
Dec. 1937 through' July 1938 T 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
includes correction for New 1
1
York City because of irreg1 1M i l
ulor conditions arising from 1 M 1 1 1 1 1 1 1 I I 1 1 1 1
1III
FE.DERAL HOME LO m BANK BOARD ! County Reports)
U. S. DEPARTMENT C F LABOR (Converted to 1926 Base)
W \TI0NAL INDUSTR AL CONFERENCE BOARD (Converted to 1926 Base)
FE.DERAL HOME LO/IN BANK BOARD ( U.S.Department of Labor records)
1 1 1 1 1 1 11 11 11 1II1 l l
1929
1930
1931
c> >0 3
*" "' " ^WlJJJJj ri 11—11 i 1 r11 i I riffiiSiTTTTI
»*^»»«««*»*»*******\*"^'7***»vr»****urffi
1 1
^ssS*^-—- v
M^iiiixiiiriiiiiiiiiiiiiiin
2fr^**s2r^
T..;...g'^fcfrr*-*'
^ 10
- / USING RENTALS ' h l T i m M I l i T I W A N T I
|
*1
K^Jf-**-****^^
i s g y ^
80
I'll I I^IJLI
milium
1 1 1 1
1932
!I.I.1.|ILLLJ.±
1933
mill iiiiiiiiii
DIVISION OF RESEARCH AND STATISTICS
FEDERAL HOME LOAN BANK BOARD
1 1 1 1 1 1 1 1 11 11 i1 1 1 1 1 1 11 11 11 1 1 1 1 1 1 1 1
1934
1935
1936
i
1
i i i i1937
i i m i i i i i i i1938
i i i m ii 11 i1939
l l III 11 111 I1LLI
1940
Federal Home Loan Bank Review
RESIDENTIAL CONSTRUCTION and HOME-FINANCING ACTIVITY
•
ALL types of lenders shared in an acceleration
in home-mortgage financing volume during
April. This upswing resulted in a total volume of
mortgages recorded in the first four months of this
year 15 percent higher than in the comparable
period of 1939.
Mutual savings banks together with savings and
loan associations have been the leaders in the rise in
the volume of mortgages recorded in nonfarm areas
during the first four months of 1940, as compared with
the corresponding months of last year. The article,
" Mortgage Recordings during the First Quarters of
1939 and 1940," appearing on page 299 of this issue,
reveals in detail the extent to which various mortgagees are sharing in the total mortgage-lending
transactions, according to quarterly totals.
Improvement in new mortgage-lending activity
was general throughout the savings and loan indusESTIMATED
try, bringing the April total to the highest level for
any month since the early 1930's. Among the various classes of associations, new record levels were
attained by Federal and State-chartered members of
the Federal Home Loan Bank System.
Construction loans made by savings and loans rose
in the month of April by over 26 percent, in line
with the increase registered in the estimated dollar
volume of new homes built during this period.
Loans for new home construction, as well as most
other classes, reached new heights in April. Savings
and loan associations in all sections of the country
reported greater total lending activity than in March.
Total residential construction during the JanuaryApril period was 12 percent above the corresponding
1939 months. Hence, up to the present time in
1940, the record is more favorable than was previously forecast for the year as a whole. Conser-
NUMBER AND COST OF FAMILY DWELLING UNITS PROVIDED IN ALL CITIES OF 10,000 OR MORE POPULATION
Source: Federal Home Loan Bank Board Compiled from residential building permits reported to US Dept of Labor
MILLIONS
OF DOLLARST
FEB
MAR
APR
MAY
JUN.
JUL.
AUG.
CONSTRUCTION LOANS MADE BY ALL SAVINGS 8
SEP
OCT.
JAN.
NOV.
APR.
MAY
JUL.
AUG.
SEP
OCT.
NOV
DEC.
FEOERAL HOME LOAN BANKS
ADVANCES OUTSTANDING AT END OF
MILLIONS
OF DC1LLARS
MONTH
220
30
1939-
ty/
200
25
^>
^,94C
) M
20
y
'V»
*'*'*'
\
\
/
/
+"
180
X
3$
Jrl9s 18
„+**
—
•^^ «.«•*•*'' \
/
S v A 1939
0
160 - f \
]
140 \94i
10
>
^
120
5
[ft
MAR.
LOAN ASSOCIATIONS
MILLIONS
OF DCH.LARS
15
FEB
100
.C
JAN
FEB
MAR
June 1940
APR.
MAY
JUN
JUL
AUG.
SEP
OCT.
NOV
fj
OE
DE C
JAN
FEB
MAR
APR
MAY
~JUN.
JUL
~AUG.
SEP
OCT.
~N0V ^ D EC.
307
[1926=100]
Type of index
Residential construction i
Foreclosures (metro, cities)..
Rental index (NICB)
Building material prices
Industrial production*
Manufacturing employment
Manufacturing pay rolls
Average wage per employee
1
__
Apr.
1940
Mar.
1940
Percent
change
47.8
108.0
85.6
92.5
94.5
98.3
92.5
94.1
45.8
104.0
85.5
93.3
96.4
99.2
94.2
95.0
+4.4
+3.8
+0.1
-0.9
-2.0
-0.9
-1.8
-0.9
Apr.
1939
34.3
141. 0
85.1
89.6
85.3
92.6
82.0
88.6
Percent
change
+39.4
-23.4
+0.6
+3.2
+10.8
+6.2
+12.8
+6.2
Corrected for normal seasonal variation.
vative opinions advanced at the turn of the year
indicated little change in volume in 1940 from 1939,
and were largely toned by the anticipated depressing
effect of the European conflict on home building
through the diversion of labor and materials to the
war industries with possible accompanying inflation
of building costs.
Such increases in costs have not yet occurred. In
fact, current indicators show declines in both material
and labor costs in many areas. Since the housing
rental index has shown relatively little change in
recent months, there is some additional incentive
provided for new construction in these areas of price
decline. The possibilities that subsequent developments in our foreign or domestic situation may still
cancel this advantage before the close of the year
must not be ruled out, however.
General Business Conditions
•
A L T H O U G H the expansion of manufacturers'
inventories, which has been a major factor in
the domestic business situation since the outbreak
of war, was definitely halted in March, according to
Department of Commerce reports, no immediate
reversal of recent business trends was indicated on
the basis of April and early May activity. The
decline in business during April was slight in comparison with the 20-percent drop during the first
three months of 1940, but the trend of the month
as a whole was definitely downward. Best available
evidence indicated that monthly income payments,
which receded sharply during the first three months
of the year, probably continued to decline.
There were some indications in early May "that
the general decline in business activity may have
come to an end, although a broad upturn is not yet
in evidence", according to the Survey of Current
Business, and for M a y as a whole the rate of
industrial production rose slightly. Signs of improvement had been increases in new orders to
manufacturers, strengthening commodity prices, and
an upturn in commercial borrowing.
308
Exports, which were strong in the opening months
of 1940, declined in April, reflecting the closing of
Scandinavian markets and the extension of the area
of combat in Europe. Although exports to Allied
belligerents, to the British Dominions, and to France,
increased in April, exports to virtually all European
neutrals declined, the Department of Commerce
reported.
Salient event of the month of M a y was the sharp
break in stock and bond prices with the expansion
of war in Europe. Yields on long-term U. S. bonds,
which had ranged mainly from 2.2 to 2.3 percent
since the beginning of 1940, rose sharply from 2.28
percent on M a y 11 to 2.47 percent on M a y 25.
Foreclosures
•
REAL estate foreclosure activity in metropolitan
communities was 4 percent greater in April
than in the preceding month, counter to a customary
seasonal March-April decline of 1 percent. This
current rise is probably largely due to unusual
declines earlier in the year. The April index of 108
(1926 = 100) brings this series to the level of January
1940 following two successive monthly increases.
The April volume of foreclosures was 23 percent less
than in the corresponding month of last year.
Cumulative activity in these communities during the
first four months of this year was 28 percent below
the same period of 1939.
Of the 86 communities reporting for both March
and April, 45 showed increases and 35 decreases,
while six indicated no change from the earlier month.
Residential Construction
[Tables 1 and 2}
•
N E A R L Y 30,000 family dwelling units were constructed during April in cities of 10,000 population
or over, representing the highest level in terms of
actual units since May of last year. The rise of 18
percent over the number of units placed under construction in March was chiefly due to seasonal
influences; hence, the seasonally adjusted index of
residential construction activity rose only 4 percent
during the month.
Building activity in the multifamily group rose
less from March to April than did homes of the 1and 2-family types. The Government-sponsored
slum-clearance program has not yet expanded to
the high levels anticipated by officials of the United
Federal Home Loan Bank Review
States Housing Authority; however, during the first
four months of this year over 13,000 dwelling units
have been built to replace demolished substandard
units—nearly double the volume of the same period
of 1939.
April construction volume was nearly 40 percent
higher than in the corresponding month of last year;
this rise was shared by all Federal Home Loan Bank
Districts with the exception of Little Rock where a
decline in multifamily units in the State of Louisiana
effected a reduction in the residential building volume
for the District as a whole.
By degrees the cost of labor used in constructing
the standard house has been receding since the first
quarter of last year. In April this slow but steady
sagging continued, but the cumulative effect of this
trend has not offset the greatest part of the rise from
the 1936-1938 period. Whereas the material element
of the cost of building the standard house stood in
April 4 percent above the average month of 1936, the
labor element stood 10 percent higher than the 1936
level.
Small House Building Costs
[Tables IS and 1J]
•
[Tables 3 and 6]
•
COSTS involved in the construction of a standard 6-room frame house showed reductions of
over $100 during the preceding quarter-year in five
widely scattered cities of the total of 25 communities
reporting as of May 1940. On the whole, the remaining cities also showed downward trends (Table
3, page 314). Total costs in most of the reporting
communities, however, were still above the August
1939 levels.
Material prices charged by dealers receded fractionally during April for the country as a whole to a
level still 2 percent above the index for August 1939.
The index of wholesale price of building materials,
which is based upon costs of materials used in all
classes of buildings, non-residential as well as residential, fell nearly 1 percent during the month of
April. After reaching the lowest level of the year
on April 13, when the index stood at 92.8 percent of
the 1926 base, the index of wholesale price of building materials fell further during the last two weeks
of April and the first two weeks of May, then turned
upward to 92.6 percent for the week ending May 25.
Lumber and cement products accounted for the
greatest part of the decrease in the building material
price level.
Construction costs for the standard house
[Average month of 1936 = 100]
Element of
cost
Material
Labor
Total
June 1940
Mortgage Recordings
April
1940
March
1940
Percent
change
April
1939
104.3
110.0
104.4
110.3
-0. 1
-0.3
102.9
111.9
+ 1.4
-1. 7
106.2
106.4
-0.2
105. 9
+0.3
Percent
change
TOTAL nonfarm mortgages of $20,000 or less
recorded in April exceeded by $60,000,000 (21
percent) the volume of mortgage-financing activity
in the corresponding month of 1939. Excluding
individuals, it is significant that savings and loan
associations accounted for almost 50 percent of the
Mortgage recordings by type of mortgagee
[Amounts are shown in thousands of dollars]
Percent Percent Cumulachange of April tive re- Percent
total
from
cordings of
1940
recordMarch amount
(four
ings
1940
months)
Type of lender
Savings and loan associations
Insurance c o m p a n i e s Banks, trust companiesMutual savings banks _
Individuals
Others
Total
+ 15. 1
+ 17.4
+ 9.1
+ 24.5
+ 9.6
+ 15.9
. + 13.3
32.5 $358, 686
8.0
93, 514
24.3 286, 626
3.9
43, 670
16.6 201, 516
14.7 175, 052
30. 9
8. 1
24.7
3.8
17.4
15. 1
100.0 1, 159,064 j 100.0
increase in the volume of mortgages recorded by all
institutional lenders. Between April 1939 and 1940
some interesting shifts have occurred in the relative
share of the total mortgage business accounted for
by the various types of lenders. Insurance companies, mutual savings banks, and miscellaneous
lenders accounted for about the same proportion of
total mortgage financing in April of this year as in
April 1939. Individuals, as well as banks and trust
companies, suffered a reduction in their share of the
mortgage business, while savings and loan associations accounted for 32 percent of all nonfarm mortgages recorded in April 1940 as compared with 30
percent in April 1939.
309
Almost 125,000 nonfarm mortgages amounting to
$340,333,000 were recorded during April 1940, an
increase of 13 percent over mortgage financing in
the previous month. This expansion in recording
activity prevailed generally throughout the country
with all types of mortgage lenders participating in
the April gain. The increases from March to April
among various types of lenders ranged from 9 percent for banks and trust companies to 24 percent for
mutual savings banks. Savings and loan association recordings increased 15 percent, accounting for
$14,500,000 (36 percent) of the March to April rise.
^ The cumulative total of nonfarm mortgage recordings amounted to more than $1,159,000,000
during the first four months of this year—a gain of
more than $150,000,000 over mortgage activity in
the corresponding period of 1939. All types of
lenders participated in this increase with savings and
loan associations accounting for almost $70,000,000
out of the total gain reported by all lenders.
New Mortgage-Lending Activity of
Savings and Loan Associations
[Tables 4 and 5]
•
SAVINGS and loan association lending activity
during April reached the highest monthly volume
in more than 10 years. Loans of $108,000,000 were
made in t h a t month, or nearly $13,000,000 more
than at the preceding high point of August 1939.
All classes of loans other than the miscellaneous
classification swelled in volume to new record levels,
while the $9,500,000 in the " o t h e r " loan group was
exceeded only by those made in the preceding month.
As shown in the following table, construction and
refinancing loans led all other classes in the increase
over April 1939.
Federal and State-chartered member savings and
New mortgage loans distributed by purpose
loan associations participated in this rise to new
monthly peaks; nonmembers approached their total
for the June 1939 high, but as these associations
become members of the Federal Home Loan Bank
System, the opportunity for setting new nonmember
peaks is lessened.
The April increase in lending operations throughout all areas of the country represented a continuation of the trend shown in the first quarter of this
year; totals for the first four months were above the
same period of last year in each of the 12 Federal
Home Loan Bank Districts. The Chicago and
Portland Districts led in the rise during the first
four months of this year over last.
[Amounts are shown in thousands of dollars]
Purpose
Apr.
1940
Mar.
1940
Percent
change
Apr.
1939
Federal Savings and Loan System
Percent
change
[Table 7]
•
$33, 764 $26, 711
Construction
Home purchase.. 37, 821 32, 168
20, 859 16, 769
Refinancing
Reconditioning. _ 6,097 4,657
Other purposes. _ 9,460 10, 063
Total
310
108, 001 90, 368
+ 2 6 . 4 $23, 727
+ 17.6 29, 903
+ 2 4 . 4 15, 384
+ 3 0 . 9 4,974
- 6 . 0 9,437
+42.3
+ 26.5
+ 35.6
+ 22. 6
+0.2
+ 19.5 83, 425 + 29.5
MORTGAGE portfolios of Federal savings and
loan associations grew in April at a rate greatly
in excess of the current receipt of new share capital
less repurchases. However, the reports of a comparable group of 1,368 Federals, which displayed an
excess of effective demand for loans over inflow of
funds amounting to nearly $5,100,000 during April,
Federal Home Loan Bank Review
also showed a curtailment of borrowings by $3,500,000 during that month (Table 7, page 318).
A total of 1,418 Federals were operating at the
end of April, holding assets of $1,657,000,000. A net
increase of eight associations occurred during the
month. The assets of newly converted associations,
plus growth in the remaining institutions, caused a
total rise of nearly $33,000,000 in assets during April.
Progress in number and assets of Federal savings
and loan associations
[Amounts are shown in thousands of dollars]
Number
Type of association
New_ _ _
Converted. __ _
Total
Approximate assets
Apr.
30,
1940
Mar.
31,
1940
632
786
632
778
$478, 647
1, 178, 574
$465, 319
1, 158, 934
1,418
1,410
1, 657, 221
1, 624, 253
Apr. 30,
1940
Mar. 31,
1940
Federal Home Loan Bank System
report advances greater than repayments, while the
Chicago Bank reported no substantial change. New
York and Winston-Salem were the only Banks to
have advances outstanding greater on April 30, 1940,
than on the same date last year. On April 30, longterm advances amounted to $106,000,000, or 79.2
percent of the advances outstanding.
Advances outstanding of the Federal Home Loan
Banks at the end of April 1940 constituted 79.2 percent of the average of monthly advances outstanding
for the year 1939. The New York Bank again is
the only Bank to have advances outstanding greater
than its 1939 average, although the balance has been
steadily decreasing since February of this year.
However, advances to members in the States of
Rhode Island, New York, Mississippi, Wyoming,
and Arizona at the end of April exceeded the 1939
averages.
A net increase of four members during the month
brought the total membership of the Federal Home
Loan Bank System up to 3,916 at the end of April.
Ten associations [9 State-chartered and 1 Federal]
were admitted to membership during the month, while
five State-chartered associations and one insurance
company withdrew.
[Table 9]
Federal Savings and Loan Insurance
AT the end of April 1940, the balance of advances outstanding of the 12 Federal Home
Loan Banks again reflected a decrease. However,
the decrease during April was approximately only
half of that reported in the previous month. Advances during the month amounted to $5,000,000,
repayments to $8,800,000, resulting in a decrease of
$3,800,000, which brought the balance of advances
outstanding at the end of the month to $133,800,000.
Although this is considerably below the balance of
advances outstanding reported at the end of April
1939, the current dollar volumes of lending operations
are higher this year. Advances during the first
four months of 1940 totaled $15,700,000—$3,000,000
greater than those made during the same period of
1939. Repayments during this 4-month period
totaled $63,200,000 this year as compared with
$54,400,000 in the previous year.
The amount of advances made during April was
nearly $1,500,000 greater than the volume made in
April of last year. Seven of the Banks reported
larger advances in April than in March and eight
Banks reported a smaller volume of repayments.
Portland and Los Angeles were the only Banks to
Corporation
•
June 1940
[Tables 7 and 8]
•
OPERATIONS of State-chartered savings and
loan associations followed in April a pattern
similar to that of Federals. The increase in the
mortgage-loan account was substantially greater
than the increase in private repurchasable capital
on the books. Net repayments of borrowed money
were reported. Total assets of these institutions
aggregated $2,615,000,000 at the end of April.
Applications were received during the month
from 28 associations, 25 from State-chartered applicants with assets at the time of their applications of
$10,615,000, and three from Federal savings and
loan associations with assets at the time of their
applications of $483,000.
Over $1,958,000,000 in private repurchasable capital was invested in the accounts of 2,547,000 shareholders in insured savings and loan associations at
the end of April. The insured group of institutions
has grown in number to 2,225 since the inception of
the Insurance Corporation nearly six years ago.
3II
Table 7.—Number and estimated cost of new family dwelling units provided in all cities of 10,000
population or over in the United States *
[Source: Federal Home Loan Bank Board. Compiled from residential building permits reported to U. S. Department of Labor]
[Amounts are shown in thousands of dollars]
Total cost of units
Number of family units provided
Apr.
1940
1-family dwellings.
2-family dwellings
Joint home and business 2
3-and-more family dwellings
Total residential
Jan.-Apr.
totals
Monthly totals
Type of dwelling
Mar.
1940
Apr.
1939
1940
1939
Monthly totals
Apr.
1940
Jan.-Apr. totals
Apr.
1939
Mar.
1940
1940
1939
_ 19, 749 16, 283 14, 272 55, 083 47, 756 $76, 531. 6 $61, 500. 3 $55, 487. 3 $211, 644. 3 $186, 383. 7
1,508 1, 154 1,082 4,428 3,544 3, 687. 9 2, 720. 1 2, 619. 3 10, 497. 5
8, 869. 2
1, 012. 8
66
293.3
215.4
249
61
42
914.8
250.0
213
8,500 7,780 6,027 31, 819 29, 951 24, 659. 2 24, 082. 6 19, 374. 6 99, 182. 7 94, 603. 3
29, 823 25, 259 21, 442 91, 543 81, 500 105, 128. 7 88, 518. 4 77, 774. 5 322, 239. 3 290, 869. 0
1
Estimate is based on reports from communities having approximately 95 percent of the population of all cities with population 2of 10,000 or over.
Includes 1- and 2-family dwellings with business property attached.
Table 2.—Number and estimated cost of new family dwelling units provided in all cities of 10,000
population or over, in April 1940, by Federal Home Loan Bank District and by State
[Source: Federal Home Loan Bank Board.
Compiled from residential building permits reported to U. S. Department of Labor]
[Amounts are shown in thousands of dollars]
All 1- and 2-family dwellings
All residential dwellings
Number of family
dwelling units
Federal Home Loan Bank District
and State
Apr.
1940
Apr.
1939
Estimated cost
Apr.
1940
Apr.
1939
Number of family
dwelling units
Apr.
1939
Apr.
1940
Estimated cost
Apr.
1940
15, 415 $80, 469. 5
Apr.
1939
$58, 399. 9
21, 442 $105,128.7 $77, 774. 5
21, 323
5, 410, 8
3, 804. 4
1,130
792
5, 117. 5
3, 493. 8
380
45
533
73
209
11
292
63
434
31
125
16
1, 542. 8
169. 2
2, 384. 7
233.4
1, 043. 3
37.4
994.7
178.0
1, 917. 3
94.9
524.3
95.2
298
38
506
73
204
11
176
63
381
31
125
16
1,347.8
151.0
2, 316. 1
233.4
1, 031. 8
37.4
814.7
178.0
1, 786. 7
94.9
524.3
95.2
No. 2—New York _.
5,457
4,069
20, 104. 8
16, 213. 7
1,934
1,519
8, 604. 0
6, 730. 9
New Jersey
860
4,597
762
3,307
3, 204. 9
16, 899. 9
3, 016. 1
13, 197. 6
431
1,503
1, 968. 2
6, 635. 8
1, 590. 3
5, 140. 6
833~
5, 134. 9
3, 438. 8
982~
342
1,177
714
4, 522. 1
3, 103. 4
152
841
151
5
697
131
626.5
3, 764. 4
744.0
20.5
2, 999. 7
418.6
20
819
143
5
606
103
104.5
3, 705. 6
712.0
20.5
2, 750. 3
332.6
5,502
2,878
16, 302. 4
8, 931. 6
2,572
1,960
8, 214. 5
6, 618. 9
147
906
1,144
143
378
916
319.4
3, 126. 3
3, 418. 0
309.9
1, 642. 4
3, 002. 9
147
145
649
139
193
556
319.4
1, 000. 3
2, 219. 6
297.4
1, 194. 6
1, 975. 9
29, 823
UNITED STATES
1,251
961
Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont
No. 1'—Boston
No. 3-—Pittsburgh
Delaware
Pennsylvania
No. 4—Winston-Salem
Alabama -- - District of Columbia
Florida
312
-
1,144
Federal Home Loan Bank Review
Table 2.—Number and estimated cost of new family dwelling units provided in all cities of 10,000
population or over, in April 1940, by Federal Home Loan Bank District and by State—Contd.
[Amounts are shown in thousands of dollars]
All 1- and 2-family dwellings
All residential dwellings
Number of family
dwelling units
Federal Home Loan Bank District
and State
! Apr.
1940
No. 4—Winston-Salem—Contd.
Georgia.
__
Maryland. _
North Carolina
South Carolina
Virginia
_
-_
1
No. 5—Cincinnati.Kentucky
Ohio
Tennessee.
_
No. 6—Indianapolis
Indiana
Michigan
No. 7—Chicago
_ .
No. 8—Des Moines
Iowa
Minnesota
Missouri
North Dakota
South Dakota
_
No. 9—Little Rock
Arkansas
Louisiana
Mississippi
New Mexico
Texas
.
_
No. 10—Topeka
Colorado
Kansas
Nebraska
Oklahoma
__
Idaho
Montana
Oregon
Utah
Washington
Wyoming
_
_
i
No. 12—Los Angeles
Arizona.
California
Nevada
J
Apr.
1939
$559. 0
793. 3
868. 7
269. 5
1, 485. 9 [
Apr.
1940
Apr.
1939
Estimated cost
312
349
435
157
378
199
263
309
114
187
$590. 0
1, 138. 4
1, 298. 9
361. 2
1, 286. 7
$535. 9
780. 5
746.8
269.5
818.3
1, 369
844
5, 720. 0
. 1
3, 731.
361. 5
4, 688. 5
670. 0
172 I
330.8
2, 933. 0
467.3
1, 768
919
6, 920. 1 i 3, 983. 3
465
1,047
256
110
637
172
1, 248. 9
5, 001. 2
670.0
330. 8
3, 185. 2
467.3
162
951
256 I
2,562
1,434
10, 960. 2
6, 344. 8
2,485 |
1,434
10,752.3
604
1,958
329
1, 105
2, 216. 2
8, 744. 0
1, 153. 4
5, 191. 4
329
575 !
1,910
1, 105
2, 172. 3
8, 580. 0
407 |
$2,167. 5
3, 914. 9
1, 611. 5
387.2
1, 357. 6
Apr.
1939
Apr.
1940
210
270
361
114
486
110
562
.
6, 344. 8
1, 153. 4
5, 191. 4
3, 828. 5
785~
6, 090. 2
3,85575
1,261
770~
5, 939. 9
838
491
477
308
4, 256. 8
1, 833. 4
2, 610. 7
1, 244. 8
474
296
4, 248. 8
1, 691. 1
1,387
1,234
5, 176. 0
4, 527. 7
834
427
1,272
936
4, 942. 4
2, 604 7
1, 223. 8
3, 488. 9
395
432
434
49
77
307
573
282
30
42
1, 522. 0
1, 854. 6
1, 465. 0
120.4
214. 0
1, 107. 9
2, 245. 9
1, 002. 5
70.6
100.8
381
421
356
41
73
288
337
250
19
42
1, 479. 0
1, 824. 3
1, 320. 5
114.4
204.2
1, 052. 3
1, 365. 9
914.5
55.4
100.8
2,469
2,754
6, 305. 5
8, 539. 3
2,347
1,817
6, 052. 9
4, 939. 9
93
311
284
92
1,689
84
202.4
751.6
938
451.3
171 1
233.4
51
4, 666. 8
1, 510
200.0
3, 034. 7
303. 8
140. 6
4, 860. 2
93
304
277
60
1,613
906~
84
208
171
39
1,315
202.4
736.1
436. 1
153. 1
4, 525. 2
200.0
545.8
303.8
115.8
3, 774. 5
2, 414. 5
959~
838~
3, 098. 6
2, 599. (f
273
214
129
343
289
146
95
308
899. 2
560. 5
482. 2
1, 156. 7
761. 6 1
420. 8
355. 2
1, 061. 4
737~
4, 107. 1 |
2, 523. 6
14
54
170
135
337
27
141. 1
266. 3
846. 8
779. 6
1, 967. 8
105. 5
42.0
146. 9
605. 5
548. 8
1, 058. 5
121. 9
1, 182
No. 11—Portland
Apr.
1940
Number of family
dwelling units
932
1, 226
566
174
1,329
__
Illinois
Wisconsin.
Apr.
1939
Estimated cost
45
112
245
211
547
22
265
181
122
338
1, 124
41 1
104
218
211
528
22
718~
3, 035. 0
178
141
91
308
695~
894. 2
525. 5 1
467. 2
1, 148. 1
591. 1_
416.8
345.2
1, 061. 4
3, 969. 5
2, 430. 1
10
54
145
126
333
27
131. 5
243. 3
778. 8
779. 6
1, 930. 8
105. 5
32.5
146.9
541.0
532.8
1, 055. 0
121.9
4, 813 |
4, 000 J 15, 518. 1
13, 012. 8 1 3,941
3, 216 1 13, 599. 4 1~ 11, 275. 1
102
4, 684
27
74
3,906
20
212. 0
12, 717. 0
83.8
64
3, 132
20
294. 2
15, 031. 9
192. 0
95
3, 819
27
284.9
13, 122. 5
192. 0
200.5
10, 990. 8
83.8
1
June 1940
3I3
Table 3.—Cost of building the same standard house in representative cities in specific months1
NOTE.—These figures are subject to correction
[Source: Federal Home Loan Bank Board]
Total cost
Cubic-foot cost
Federal Home Loan Bank
District and city
1940
1940
May
1939
May
1939
May
Feb.
Nov.
Aug.
May
1938
May
1937
May
1936
May
No. 3—Pittsburgh:
Wilmington, Del _
Harrisburg, Pa
_
Philadelphia, P a .
Pittsburgh, Pa
_
Charleston, W. Va
Wheeling, W. Va
$0. 218
.243
.236
.256
.244
.264
$0. 233
.238
.226
.267
.244
.262
$5, 231
5,839
5,676
6,134
5,855
6,343
$5, 389
5,882
5,595
6,254
5,843
6,323
$5, 389
6, 105
5,583
6,398
5,843
6,346
$5, 416
5,724
5,485
6,440
5,813
6,314
$5, 593
5,724
5,422
6,415
5,848
6,299
$5, 914
5,839
5,560
6,718
5,951
6,287
$5, 782
5,995
5,972
6,745
5,875
$5, 340
5,421
4,886
5,787
5,370
No. 5—Cincinnati:
Lexington, Ky__ _ _ _
Louisville, Ky __
__
Cincinnati, Ohio
Cleveland, Ohio_ _
Columbus, Ohio __
Memphis, Tenn__
__
Nashville, Tenn_
.238
.227
.229
.279
.242
.225
.206
.235
. 219
.230
.270
.235
.222
.208
5,715
5,447
5,507
6,693
5,800
5,394
4,946
5,905
5,408
5,525
6,794
5,799
5,400
4,980
5,912
5,402
5,564
6,836
5,774
5,415
5,022
5,715
5,230
5,500
6,492
5,618
5,269
4,956
5,650
5,250
5,520
6,477
5,645
5,339
4,995
5,322
5,133
5,688
5,330
5,024
5,597
5,599
5,949
6,756
6,237
5,531
5,421
5, 103
5,024
5,562
6, 147
5,433
5,032
5,098
No. 9—Little Rock:
Little Rock, Ark __
New Orleans, La _
Jackson, Miss_
Albuquerque, N. Mex
Dallas, Tex
Houston, Tex
San Antonio, Tex
.215
.240
.254
.259
.226
.246
.229
.218
.235
.246
.267
.228
.246
.245
5,169
5,763
6,084
6,212
5,412
5,902
5,497
5,180
5,829
6,033
6,260
5,414
5,927
5,590
5,183
5,860
6,015
6,316
5,335
5,866
5,688
5,225
5,641
5,894
6,398
5,431
5,882
5,867
5,236
5,631
5,911
6,407
5,464
5,910
5,878
5,164
5,962
6, 111
6,611
5,801
5,888
6,058
5,285
5,738
5,881
6,659
6,070
6,204
6,231
5,184
5,004
5,339
6,016
5,578
5,693
5,535
No. 12—Los Angeles:
Phoenix, Ariz_
__ _ __
Los Angeles, Calif
San Diego, Calif
_
San Francisco, Calif
Reno, Nev
.258
. 219
.221
.262
.282
.252
.220
.238
.265
.273
6,199
5,250
5,311
6,289
6, 777
6,199
5,256
5,419
6,308
6,745
6,223
5,303
5,471
6,301
6,701
6,129
5,231
5,605
6,314
6,574
6, 043
5,287
5,721
6,352
6,563
6,567
5,723
5,855
6,345
6,550
6,737
6,002
6,097
6,407
6, 629
6,065
5,223
5,381
5,875
6,324
1
The house on which costs are reported is a detached 6-room home of 24,000 cubic feet volume. Living room, dining
room, kitchen, and lavatory on first floor; three bedrooms and bath on second floor. Exterior is wide-board siding with brick
and stucco as features of design. Best quality materials and workmanship are used throughout.
The house is not completed ready for occupancy. It includes all fundamental structural elements, an attached 1-car
garage, an unfinished cellar, an unfinished attic, a fireplace, essential heating, plumbing, and electric wiring equipment, and
complete insulation. It does not include wall-paper nor other wall nor ceiling finish on interior plastered surface, lighting fixtures,
refrigerators, water heaters, ranges, screens, weather stripping, nor window shades.
Reported costs include, in addition to material and labor costs, compensation insurance, and allowance for contractor's
overhead and transportation of materials, plus 10 percent for builder's profit.
Reported costs do not include the cost of land nor of surveying the land, the cost of planting the lot, nor of providing walks
and driveways; they do not include architect's fee, cost of building permit, financing charges, nor sales costs.
In figuring costs, current prices on the same building materials list are obtained every three months from the same dealers,
and current wage rates are obtained from the same reputable contractors and operative builders.
3)4
Federal Home Loan Bank Review
RATE OF RESIDENTIAL BUILDING IN ALL CITIES OF 10,000 OR MORE POPULATION
REPRESENTS
THE ESTIMATED
NUMBER
OF PRIVATELY
Source-. Federol Home Loon Bonk Boord.
FEDERAL
FINANCED
FAMILY
DWELLING
UNITS
PROVIDED
PER 100,000
POPULATION
Compiled from Building Permits reported to U S Department of Labor
HOME
LOAN
BANK
DISTRICTS
DISTRICT I
BOSTON
1940^
H—U"
f"""
\i^-l940
»93/-35 AVG/
I FEB MAR APR. MAY .
H. FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
^1931-35 AVG.
£
. AUG SEP OCT NOV C
' JUN
JUL AUG SEP OCT NOV
JAN FEB K
OEC.
I JUL AUG SEP OCT NOV
DEC
DISTRICT 8
DES MOINES
DISTRICT 7
CHICAGO
DISTRICT 6
INDIANAPOLIS
DISTRICT 5
CINCINNATI
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
DISTRICT 9
LITTLE ROCK
1940-^
DISTRICT 10
TOPEKA
fef
xn:
l
J940-*
IT9
|
1
.
Jr 1
/•I93/-35 AVG
A93\ -35 AVG
F» APR MAY JUN JUL AUG SEP OCT NOV OEC
<l. FEB MAR APR MAY JUN JUL AUG SEP OCT NOV OEC
UNITED
H FEB MAR APR MAY JUN JUL AUG SEP OCT NOV OEC
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
STATES AVERAGE
1931 - 1 9 4 0
^p4^
H50
1931
1932
1933
1934
1935
1936
1937
1938
1939
V
1940
5=4P
-j40
-Uo
EXCLUDING NEW YORK CITY—
JUN.
June 1940
SEP
SEP
OEC
SEP
OEC
_!
»R
1
I
1
JUN.
I
I
'
SEP
'
OEC
315
Table 4.—Estimated volume of new mortgage lending activity of savings and loan associations classified
by District and type of association
[Amounts are shown in thousands of dollars]
New loans
Federal Home Loan Bank District and
type of association
Percent
Percent
change,
New
change,
Mar. 1940 loans, Apr. 1939
to Apr. Apr. 1939 to Apr.
1940
1940
Cumulative new loans
(four months)
April
1940
March
1940
TotalFederal-State member
Nonmember
$108,001
46, 577
43,015
18,409
$90, 368
38,241
36, 484
15, 643
+
+
+
+
19.5
21. 8
17.9
17.7
$83,425
33, 400
32, 562
17,463
District No. 1: Total
Federal.State member
Nonmember
8, 474
2,812
3,882
1, 780 J
6,063
2,062
2,945
1,056
+
+
+
+
39. 8
36. 4
31. 8
68. 6
6,404
1,970
3, 194
1, 240
+
+
+
+
32.3
42.7
21. 5
43. 5
26, 554
9, 159
12, 312
+ 26.
+ 49.
+ 21.
+ 6.
District No. 2: Total
Federal
State member
Nonmember
__
8, 668
2,913
2,595
3,160
6,491
1,859
2,001
2,631
+
+
+
+
33. 5
56. 7
29. 7
20. 1
8, 829
3, 474
1, 852
3, 503
-1.8
-16. 1
+ 40. 1
27, 832
8, 977
7, 936
+ 10. 8
+ 1. 7
+ 32. 3
+ 5. 9
__
8,047
2,674
2,323
3,050
7,231
2,916
1,767
2,548
+ 11.3
-8.3
+ 31. 5 !
+ 19.7
8, 243
1,701 1
1,969
4,573
-2.4
26, 952
+ 57.2
9, 387
+ 18.0 !
6, 780 ]
-33. 3
10, 785
22, 726 '
5,128
6,099
11, 499
+ 18. 6
+ 83. 1
+ 11. 2
-6.2
District No. 4: Total
Federal
State member
Nonmember
15, 134
6,923
5,985
2, 226
13, 643
6,374
5,421
1,848
+ 10.9
+ 8.6
+ 10.4
+ 20.5
10, 630
4,102
4,989
1,539
+
+
+
+
42.4
68.8
20.0
44.6
49, 122
22, 873
19, 387
6,862
36, 844
14, 252
16, 160
6,432
+ 33.3
+ 60. 5
+ 20.0
+ 6.7
District No. 5: Total
Federal
State member
Nonmember
18, 192
6,976
8,711
2,505
15, 627
5,647
7,824
2,156
+
+
+
+
16.4
23.5
11.3
16.2
13, 054
5,185
6, 166
1,703
+
+
+
+
39.4
34.5
41.3
47. 1
54, 983
20, 516
26, 569
7,898
44, 001
17, 217
20, 933
5,851
+25.0
+ 19. 2
+ 26.9
+ 35.0
District No. 6: Total
Federal
State member
Nonmember
5,407
2,476
2,525
406
4,227
1,836
2,179
212
+ 27.9
+ 34.9
+ 15.9
+91.5
3,903
1,920
1,722
261
16, 850
7,725
7,975
1,150
12, 868
6,134
5,943
791
+
+
+
+
30.9
25. 9
34.2
45.4
District No. 7: Total
Federal
State member
Nonmember
11, 841
5, 246
4,784
1,811
10, 096
3,695
4,165
2,236
+ 17.3
+ 42.0
+ 14.9
-19.0
8,505
2,869
3,743
1,893
+ 38.5
+ 29. 0
+ 46.6
+ 55.6
+ 39.2
+ 82.9
+27.8
-4.3
35, 971
14, 049
15, 169
6,753
25, 903
8,739
11, 404
5,760
+
+
+
+
38.9
60.8
33.0
17.2
7, 768
3,297
2,854
1, 617
5,232
2,444
1,508
1,280
+
+
+
+
48.5
34.9
89. 3
26. 3
5,116
2,383
1,522
1,211
+
+
+
+
51.8
38.4
87.5
33.5
20, 561
9,072
6,753
4,736
15, 345
6,981
4,965
3,399
District No. 9: Total
Federal
State member
Nonmember
5, 711
2, 413
3, 070
228
5, 300 '
2, 276
2, 812
212
+7.8
+ 6.0
+ 9.2
+ 7.5
5,180
2,555
2,467
158
+ 10.3
-5.6
+24.4
+ 44.3
19, 068
7,871
10, 383
814
18, 357
8,009
9,523
825
District No. 10 . Total
Federal
State member
Nonmember
5, 035
2, 764
1, 120
4, 526
2, 505
973
+ 11.2
+ 10.3
+ 15.1
3, 699
1,830
885
984 1
+ 36. 1
+ 51. 0
+ 26. 6
15, 792
8,454
3,572
3, 766
13, 797 1 +14.5
6,647
+27. 2
3,709
-3.7
3, 441 1 +9.4
District No. 11 : Total
Federal
State member
Nonmember
4, 154
2, 523
1, 409
222 1
3, 604
2, 234
1, 182
+ 15.3
+ 12.9 !
+ 19.2
2, 909 1 +42. 8 I! 12,606 |
7,822 |
1,835 : + 3 7 . 5
4, 236
969 ' + 4 5 . 4
548
105 + 111.4
District No. 12 : Total
Federal
State member
Nonmember
9, 570
5, 560
3, 757
. 253
8, 328
4, 393
3, 707
228
+ 14.9
+ 26. 6
+ 1.3 !
+ 11.0 f
+ 37.6
6,953
+ 55. 5
3, 576
3,084 1 + 2 1 . 8
-13.7
293
United States:
District No. 3: Total
Federal
State member
Nonmember
District No. 8: Total
Federal
State member
Nonmember
316
1
1
1
,
1, 151 1
1,048 1
+9.8
188 1 +18.1
1940
1939
Percent
change
+
+
+
+
+ 29. 5 $336, 835 $270, 679
+ 39. 5 142,612 106,403
+ 32. 1 134, 177 109,948
+ 5.4
54,328
60, 046
-9.8 J
+17.0
20, 980
6, 118
10, 105
5, 083 1 4, 757
25, 129
8,823
5, 998
10, 919 J 10, 308
30, 544
16, 707
13, 105
732
24. 4
34. 0
22. 0
10. 5
6
7
8
9
+ 34.0
+ 30.0
+ 36.0
+ 39.3
+ 3.9
-1.7
+ 9.0
!
-1.3
9,265
5,590
3, 232
443 1
25, 464
12, 765
11, 877
822
+ 36. 1
+ 39. 9
+ 31. 1
+23.7
+ 19.9
+30. 9
+ 10.3
-10.9
Federal Home Loan Bank Review
Table 5.—Estimated volume of new loans by all savings and loan associations, classified according to
purpose and type of association l
[Thousands of dollars]
Type of association
Purpose of loans
Total
loans
Mortgage loans on homes
Period
Construc- Home pur- Refinancing
chase
tion
Reconditioning
$286, 899
$333, 470
$177, 627
101, 025
30, 238
52, 931
16, 962
986, 383
270, 679
83, 425
89, 123
94, 154
85, 172
95, 038
89, 732
93, 297
86, 076
83, 112
400, 337
16, 167
4,974
6,069
5,802
5,133
5,909
5, 544
5,784
4,720
4,335
31, 061
8,648
104, 227
31, 621
9,437
9,432
9,082
8, 183
9,979
8,946
9,040
8,870
9,074
83, 764
26, 107
403
400
358
094
055
645
090
854
785
053
396, 041
109, 948
32, 562
35, 426
36, 465
34, 146
37, 340
36, 989
37, 847
34, 671
33, 209
190, 005
54, 328
17, 463
17, 339
18, 595
16, 971
17, 053
15, 653
17, 596
16, 620
15, 850
217
17, 646
35, 440
336, 835
142, 612
134, 177
60, 046
13, 999
14, 590
16,769
20, 859
3,455
3,437
4,657
6,097
7,963
7,954
10, 063
9,460
66, 944
71, 522
90, 368
108, 001
25, 737
28, 941
36, 484
43, 015
13, 199
12, 795
15, 643
18, 409
52, 790
15, 772
182, 025
54, 555
15, 384
15, 687
17, 123
15, 353
17, 005
16, 021
15, 835
15, 445
15, 001
17, 707
5,683
301, 039
77, 107
23, 727
26, 646
29, 919
26, 865
29, 863
27, 854
29, 255
26, 607
26, 923
339,
91,
29,
31,
32,
29,
32,
31,
33,
30,
27,
100, 115
117,417
22, 039
25,389
32, 168
37, 821
629
229
903
289
228
638
282
367
383
434
779
Nonmembers
237, 720
73, 307
$58, 623
1939Jan.-April...
April
May
June
July
August
September..
October
November..
December
State
members
$797, 996
$160, 167
77, 563
25, 494
$220, 458
58, 599
17, 710
Federals
$93, 263
$265, 485
1938.
Jan.-ApriL
April
Loans for
all other
purposes
59, 463
106,
33,
36,
39,
34,
40,
37,
37,
34,
34,
1940
Jan.-ApriL .
January..
February.
March
April
1
19, 488
20, 152
26,711
33, 764
28,
29,
38,
46,
008
786
241
577
Revised figures for 1936, 1937, and for the first 10 months of 1938 appear on p. 93 of the December 1938 issue.
Table 6.—Index of wholesale price of building materials in the United States
[1926=100]
[Source: U. S. Department of Labor]
Period
1938: April
All build- Brick and
ing matetile
rials
Cement l
Lumber
Paint and Plumbing Structural
paint ma- and heatsteel
ing
terials
Other
91.2
89. 6
89.5
89.5
89.7
89.6
90. 9
92.8
93.0
93.0
90.4
93.0
91.7
91. 1
90.6
90.5
91.0
91. 5
91. 6
91.6
89.9
91.5
91.5
91.5
91.5
91.3
91.3
91.3
91.3
91.3
91. 1
91.5
91.2
90.7
91.8
91.8
93.7
98.0
98.3
97.8
81.4
77.2
114.9
1939: April
May
June
July
August
September.
October
November.
December..
81.3
81.6
82. 4
82. 2
82. 1
84.7
85.7
84.9
85.5
79.3
79.3
79.3
79.3
79.3
79.3
79.3
79.3
79.3
107.3
107.3
107.3
107.3
107.3
107.3
107.3
107.3
107.3
89.7
89.6
89.5
89. 6
89.5
90.3
91.9
92.9
92.7
1940: January..
February _
March
April
93.4
93.2
93.3
92.5
91.6
91.2
90.4
90.2
91.4
91.4
91.2
90.3
97. 6
97.6
97.8
96. 1
87.2
86.8
87.2
86.7
79.3
79. 1
81.0
80.9
107.3
107.3
107.3
107.3
93.2
92.9
92.7
92.3
- 0 . 9%
-f 3. 2%
-0. 2 %
-3. 0 %
1.0%
1.3%
-1.7%
+ 5. 0%
- 0 . 6%
+ 6.6%
Change:
Apr. 1940-Mar. 1940.
Apr. 1940-Apr. 1939-
94.8
0.0%
-0.4%
-0.1%
0.0%
4-2. 9%
+ 2. 0%
1
Based on delivered prices at 48 cities and introduced into the calculation of the Bureau's general indexes of wholesale
prices beginning with March 1939.
June 1940
3I7
Table 7.—Monthly operations of 1,368 identical Federal and 732 identical insured State-chartered
savings and loan associations reporting during March and April 1940 1
[Amounts are shown in thousands of dollars]
1,368 Federals
732 insured State members
Type of operation
Change
March
to April
April
1, 495, 184
Percent
+ 0.9
967, 989
$1, 201, 479. 9 $1, 178, 962. 1
193, 847. 8
193, 847. 8
+ 1.9
0.0
April
Share liability at end of month:
Private share accounts (number)
1, 507, 928
Paid on private subscriptions
Treasury and HOLC subscriptions
March
Change
March
to April
March
963, 534
Percent
+ 0. 5
$704, 560. 7 $699,
557. 9
2 37, 819. 0 2 37, 819. 0
+0. 7
0.0
1, 395, 327. 7
1, 372, 809. 9
+ 1.6
742, 379. 7
737, 376. 9
+ 0. 7
Private share investments during month
Repurchases during month
38, 831. 7
16, 291. 0
35, 077. 8
15, 958. 5
+ 10.7
+ 2.1
15, 673. 0
10, 916. 5
14, 940. 0
10, 337. 0
+ 4.9
+5. 6
Mortgage loans made during month:
a. New construction
b. Purchase of homes
c. Refinancing
_
d. Reconditioning
e. Other purposes
18, 035. 2
14, 211. 8
8, 852. 1
1, 837. 3
2, 999. 7
14, 339. 3
11,267.8
7, 529. 4
1, 472. 3
2, 998. 2
+ 25.8
+ 26. 1
+ 17.6
+ 24.8
+ 0.1
6, 150. 3
6, 788. 3
4, 449. 3
1, 129. 1
1, 874. 3
5, 196. 1
5, 974. 3
3, 376. 9
850.7
1, 925. 3
+ 18. 4
+ 13. 6
+ 31. 8
+ 32. 7
— 2. 6
45, 936. 1
1, 324, 457. 3
37, 607. 0
1, 296, 846. 8
+ 22. 1
+ 2.1
20, 391. 3
671, 152. 3
17, 323. 3
661, 236. 9
+ 17.7
+ 1.5
70, 278. 6
3, 060. 4
73, 513. 3
3, 336. 8
-4.4
-8.3
28, 426. 2
2, 966. 8
29, 500. 6
2, 705. 6
— 3. 6
+9. 7
73, 339. 0
76, 850. 1
-4.6
31, 393. 0
32, 206. 2
— 2. 5
1, 627, 068. 8
1, 597, 970. 7
+ 1.8
913, 683. 7
906, 921. 2
+ 0. 7
Total
Total
-_
Mortgage loans outstanding end of month
Borrowed money as of end of month:
From Federal Home Loan Banks
From other sources
__
Total., __-
_-
Total assets, end of month
1
9
The total of 2,100 associations represents 95 percent of all insured institutions operating during March.
Includes only HOLC subscriptions.
Table 8.—Institutions insured by the Federal Savings and Loan Insurance Corporation
[Amounts are shown in thousands of dollars]
Cumulative number at specified dates
Number of
private
investors
in repurchasable
shares *
Assets
Private
repurchasable
capital
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Mar. 31, Apr. 30,
1940
1940
1937
1938
1939
1936
Apr. 30,
1940
Apr. 30,
1940
Apr. 30,
1940
Type of association
State-chartered associations
Converted Federals
_ __
New Federals
Total
__ _ -._
382
560
634
566
672
641
737
723
637
799
763
634
1, 576
1,879
2,097
2,196
2
808
777
632
2,217
814 1, 017, 300 $960, 011
779 1, 105, 500 1, 176, 532
424, 000
478, 647
632
$736, 392
901, 552
320, 473
2,225 2, 546, 800 2, 615, 190
1, 958, 417
3
1
This series revised to agree with schedules submitted each month by insured institutions. Private investors in repurchasable
shares in insured State-chartered members numbered 931,600 in June 1939; no other association type revised.
2
In addition, 1 Federal with assets of $259,000 had been approved for conversion but had not been insured as of Mar. 31.
8
In addition, 7 Federals with assets of $2,042,000 had been approved for conversion but had not been insured as of Apr. 30.
318
Federal Home Loan Bank Review
Table 9.—Lending operations of the Federal
Home Loan Banks
Table 10.—Government investments in savings
and loan associations 1
[Thousands of dollars]
[Amounts are shown in thousands of dollars]
April 1940
Federal Home
Loan Bank
Boston
New York
Pittsburgh.
Winston-Salem _ _
Cincinnati
Indianapolis
Chicago
Des Moines
Little Rock
Topeka
Portland
Los Angeles
Total
March 1940
Ad- Repay- Ad- Repay30,
vances ments vances ments Apr.
1940
$247
639
477
597
352
220
604
199
120
237
539
742
$379
1,376
617
1,093
862
918
602
1,199
874
263
233
389
4,973
8,805
$539
1,102
781
1,381
1,471
980
1,417
1,195
451
662
149
1,120
$4, 705
17, 864
13, 690
11, 639
13, 397
8,057
21, 396
11,681
6,292
8,449
4,609
12, 032
4,375 11, 248
133, 811
$64
553
336
633
213
686
239
232
210
116
335
758
Jan.-Apr. 1940. _ 15, 745 63, 248
3,581 8,018
April 1939
Jan.-Apr. 1939.- 12, 736 54, 402
6,089 5,465
April 1938
Jan.-Apr. 1938— 18, 783 35, 128
Treas- 1 Home Owners' Loan Corporation
ury
Advances
outstand-
157, 176
Type of operation
Federals 2
Oct. 1935-Apr. 1940:
Applications:
Number
Amount
Investments:
Number-_
Amount
Repurchases
Net outstanding investments
State
members
Federals
Total
965
5,579
1,862
6, 614
$50, 401 $200, 992 $62, 719 $263, 711
719
4,915
4, 196
1, 831
$49, 300| $175, 835 $44, 348 $220, 183
$15, 163 $13, 159 $4, 396 $17, 555
$34, 137 $162, 676 $39, 952 $202, 628
April 1940:
Applications:
Number
Amount
Investments:
Number
__ _
Amount
-_
Repurchases.
0
0
0
$5
2
$80
2
$80
1
$100
$325
1
$100
$326
183, 750
$1
Refers to number of separate investments, not to number
of 2associations in which investments are made.
Investments in Federals by the Treasury were made between December 1933 and November 1935.
7a6/e 11.—Summary of operations of H O L C
Reconditioning Division through Apr. 3 0 , 1 9 4 0 l
Table 12.—Properties acquired by H O L C through
foreclosure and voluntary deed *
Apr. 1,
June 1, 1934
1940
Type of operation
through
through
Mar. 31, 1940 Apr. 30,
1940
Cases received
2
1, 192, 156
6, 154
1
Period
Cumulative
through
Apr. 30, 1940
1, 198, 310
Contracts awarded:
Number
787, 906
792, 234
4,328
$155, 632, 027 $1, 120, 084 $156, 752, 111
Amount
Contracts completed:
Number
782, 939
4,341
787, 280
Amount
$153, 451, 862 $1, 194, 975 $154, 646, 837
Prior to 1935
1935: Jan. 1 through Dec. 31
1936: Jan. 1 through Dec. 31
1937: Jan. 1 through Dec. 31
1938: Jan. 1 through Dec. 31
1939: Jan. 1 through June 30
July
August
September
October
November
December
1940: January
February
March
April
Grand total to Apr. 30, 1940
Number
9
1,097
20, 324
50, 206
50, 919
19, 509
2,773
2,857
2,590
2,445
2,356
1,800
1,567
1,311
1,657
1,323
162, 743
1
All figures are subject to adjustment. Figures do not
include 52,269 reconditioning cases, amounting to approximately $6,800,000, completed by the Corporation prior to
the organization of the Reconditioning Division on June 1,
1934.
2
Includes all property management, advance, insurance,
and loan cases referred to the Reconditioning Division which
were not withdrawn prior to preliminary inspection or cost
estimate prior to Apr. 15, 1937.
June 1940
1
Does not include 9,073 properties bought in by HOLC a t
foreclosure sale but awaiting expiration of the redemption
period before title in absolute fee can be obtained,
In addition to the 162,743 completed cases 946 properties
were sold at foreclosure sale to parties other than the HOLC
and 25,171 cases have been withdrawn due to payment of
delinquencies by borrowers after foreclosure proceedings were
authorized.
3I9
Table 13.—Summary of estimated nonfarm mortgage recordings,1 $20,000 and under, during April 1940
( Amo ur t s s ho wn a re i n t h o u s a n c s o f d o l 1 a rs )
1
Mutu al
Oth er
Insurance
J Banks and
Savings & loan
Indivi duals
Tot al
associations
companies
t r u s t co mpanies savings banks
mortga gees
jdumber] Amount Number Amount | Number [ Amount | Numberj Amount Number Amount Number Amount Number Amount
F e d e r a l Home Loan Bank
D i s t r i c t and S t a t e
44,188 $110,787 5,484
UNITED STATES
836
3,122
1,809
6,156
1,646
3,595
1,018
2,808
8,699
26,630
351
55
742
63
54
39
297|
139
277
36
65
22
lf229
358
1,113
125
220
77
385
221
958
94
93
58
1,454
347
3,561
311
292
191
455
149
809
79
106
48
1,047
304
1,796
169
175
104
290
66
514
48
70
30
896
106
1,366
127
235
78
1,735
898
4,794
461
528
283
5,976
1,772
15,086
1,367
1,589
840
1,679
874
6,442
3,686
2,756
6,972
2,759
4,213
2,345
4,122
9,827
3,614
6,213
34,054
1,053
1,792
1,518
610
908
6,467
55
l»M7
5,377
258
5,119
2,845
129
130
1,639
701
938
7,044
328
1,552
2,250
7,305
1,875
4,285
1,012
3,663
8,401
24,393
37
250
41
204
1,176
172
68
1,691
491
320
6,061
9241
165
30
125
10
544
183
5,998
863
114
425
5
124
1,471
280
236
3,577
472
28
863
121
137
3,299
227
356
6,680
1,365
1,194
20,536
2,663
6,740
15,595
792
3,714
31
96
4,650
8,191
2,318
5,931
17,005
40,017
D i s t r i c t of Columbia
Florida
Georgia
_
Maryland
North Carolina
South Carolina
Virginia
548
2,168
2,729
1,292
2,969
3,023
741
2,125
102
53
236
71
53
153
40
84
425
323
1,004
357
243
735
264
363
2,474
250
81
325
401
285
334
229
569
6,490
392
446
830
816
1,259
1,576
412
1,009
610
261
972
524
363
702
477
741
824
712
2,370
770
933
692
641
1,249
263
289
453
188
145
386
168
426
642
1,349
1,281
347
412
753
191
956
1,617
1,130
2,816
2,000
2,136
3,151
1,326
2,829
3,037
5,012
8,216
3,804
5,576
5,942
2,175
6,255
5—Cincinnati
7,189
19,602
717
3,583
2,931
8,947
1,156
5,729
304
2,524
16,397
681
138
383
196
587
2,337
659
472
2,040
419
1,073
6,450
1,424
3,232
6,388
625
2,868
2,994
2,355
877
4,108
2,280
261
364
1,074
1,794
1,057
1,937
1—Boston
_
3,149
9,645
241 I
262
307
2,089
191
183
117
999
602
6,508
572
613
351
46 |
16
147
13
II
8
2,354
7,157
259
New J e r s e y . . .
New York
893
| 1,461
2,736
4,421
3— Pittsburgh
2,771
Delaware
Pennsylvania.
West V i r g i n i a
69
2,280
422
4—Winston-Salem...
Connecticut
Maine
Massachusetts
New Hampshire
Rhode I s l a n d .
Vermont
No.
No.
No.
$ 2 7 , 0 9 l | 2 6 , 7 M | $82,569) 3 , 4 6 5 | $13,122 29,532 $56,561 15,341 $50,203 124,721 $340,333
1,304
No.
__
-
—
2—New York
No.
Kentucky
Ohio..
Tennessee
.
No. 6—Indianapol i s _
Indiana
Michigan
_
71
335
1,996
3,405
1,707
4,757
14,611
40,629
71
335
251
1,486
259
381
2,690
334
157
779
771
338
2,902
1,517
2,174
10,488
1,949
4,903
31,111
4,615
7,635
29
42
1,164
1,972
751 ^ 2 , 6 3 3
8,795
21,538
2,568
5,067
29
42
461
703
686
1,286
290
461
843
1,790
4,453
4,342
9,321
12,217
II
25
1,676
3,672
1,170
5,537
8,211
26,586
1,967
1,705
982
188
4,951
586
5,567
2,644
19,798
6,788
325
1,814
1,521
5,617
7,654
2,267
251
74
1,419
395
921
600
3,807
1,810
II
25
760
916
3,297
7,179
513
2,106
2,166
4,588
31
80
2,753
4,832
1,359
4,144
10,119
22,929
866
1,168
1,005
163
95
1,695
3,054
1,911
374
145
95
236
122
18
42
370
968
576
67
125
650
519
808
48
141
1,369
879
2,020
92
228
401
752
1,475
54
71
719
1,305
2,609
97
102
180
229
887
52
II
413
852
2,759
2,192
2,935
4,297
335
360
4,566
7,138
9,875
740
610
9 — L i t t l e Rock
3,126
7,188
715
3,319
918
2,36 3
2,102
3,958
1,669
8,530
21,851
Arkansas
Lou i s i an a
Mi s s i ssippi
New Mexico
Texas
357
858
238
142
1,531
633
2,373
374
284
3,524
41
30
45
6
593
183
162 !
193
24
2,757
131
119
121
64
483
233
345
264
216
1,305
214
355
261
144
1,128
248
665
340
240
2,465
148
439
130
39
913
5,023
268
1,159
288
120
3,188
891
1,801
795
395
4,648
1,565
4,704
1,459
884
13,239
2,785
6,025
219
928
P 869
.
Iowa
Minnesota. .
Mi ssouri
North Dakota
Sout/i Dakota
__
_
_ _
10—Topeka
Colorado
Kansas
Nebraska
Oklahoma
II—Portland
Idaho
Montana
Oregon
Utah
Washington
Wyoming
No.
96
9,921
No. 8—Des Moines
No,
31
3,508
.
Illinois
Wisconsin
No,
598
460
832
1,038
923
739
338
1,562
12,485
21,569
2,653
855
No. 7—Chicago
No,
8051
1 U72
______
.
12—Los Angeles
Arizona
Ca)ifornia
Nevada
1
_
__
_
126
183
348
271 | _
386
715
729
955
883
1,307
1,561 1
2,274 1
19
46
77
77
2,003
4,352 !
241
876
345
329
855
566
Z,054
203
6
II
72
29
122
II
42
267
98
453
51
159
146
403
242
975
78
1
4,034 10,691 1
110
309
3,900 10,313
69
24 1
1
1
509
7
500
2
!
31
80
no
10
2,135
1,882
2,844
881
2,428
6,636
14,360
162
323
74
310
425
725
172
813
764
273
251
594
1,397
312
388
747
243
170
96
372
832
429
268
899
1,574
1,527
1,227
2,308
3,663
2,956
2,737
5,004
1,485
3,466
467
1,309
1,973
796
2,644
5,980
13,778
113
65
180
266
802
28
86
118
381
194
120
458
89
353
95
247
209
695
105
540
177
56
20
226
30
438
26
165
46
835
41
1,453
104
528
362
1,367
656
2,808
259
1,088
805
3,072
1,501
6,708
604
1,142
39
1,094
9
4,168
79
4,071
18
17,907
53,568
655
17,106
146
1,703
51,486
379
146
59
320
179
334
691
1,827
115
3,388j ~ 6 , 5 8 8
24,459 !
5,634
10,862
24
3,359
5
558
23,777
124
312
5,253
I
69
733
9,966
163
187
6,359
1—
42
Amount
per
capita
(nonf a rm)
$ 3.69
3.93
2.83
3.66
3.40
2.37
3.40
3.19
1.82
6.22
2.34
2.08
2.33
10.30
6.91
2.55
4.00
3.78
2.65
4.25
3.41
5,52
3.29
3.84
3.01
2.99
3.30
3.06
4.28
3.93
2.61
2.02
2.13
3.70
2.26
3.34
3.81
4.86
2.52
3.45
3.65
4.24
2.42
4.21
3.83
5.33
3.96
5.06
10.18
5.08
Based upon county reports submitted through the cooperation of savings and loan associations, the U. S. Savings and Loan League, the Mortgage
Bankers Association, and the American Title Association.
320
Federal Home Loan Bank Review
Table 14.—Estimated volume of nonfarm mortgages recorded, by type of mortgagee
[Amounts are shown in thousands of dollars]
Savings and
loan associations
Insurance
companies
Mutual
savings
banks
Banks and
trust
companies
Individuals
All
mortgagees
Other
mortgagees
Period
Number:
1939: April 1
May
June
-_
July
August
September. .
October
November. _
December
1940: January 1 x
February __
March
April
Total
Percent
35, 098
43, 648
43, 655
41, 048
44, 224
41, 946
42, 091
38, 671
38, 018
30, 005
31,015
38, 734
44, 188
33.8
34.8
34. 1
34.6
35.3
35.6
34.6
33.3
33.6
31.3
32.8
34.7
35.4
Amount:
$84, 565
1939: April 1
May
109, 652
June
113, 479
July
105, 890
August
112, 516
September. . 104, 548
105, 229
October
November. _ 98, 889
December-_. 95, 724
1940: January 1 1
74, 711
February . . 76, 944
March
96, 244
April
110, 787
Total
Percent
Total
Percent
Total
Percent
Total
Percent
Total
Percent
Combined
total
Percent
25.3
24.6
24.0
25.4
24.9
24.7
24.3
24. 1
23.9
25.9
25.6
24.7
23.7
13, 012
15, 560
17, 002
14, 693
15, 339
14, 009
15, 195
15, 336
14, 370
12, 844
12, 548
13, 655
15, 341
12.5
12.4
13.3
12.4
12.2
11.9
12.5
13.2
12.7
13.4
13.2
12.2
12.3
103, 906
125, 604
128, 005
118, 665
125, 409
117, 913
121, 806
115, 993
113, 241
95, 861
94, 654
111, 789
124, 721
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
15.4 $280, 486
15.1 349, 454
15.7 360, 868
14.4 329, 983
14.3 345, 580
13.7 317, 156
14.3 333, 079
15.6 325, 112
15.0 316, 541
15.6 262, 683
15.8 255, 628
14.4 300, 420
14.7 340, 333
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
4,375
6,009
6,335
5,946
6,014
5,352
5,636
5,443
5,694
4,392
4,240
4,631
5,484
4.2
4.8
4.9
5.0
4.8
4.5
4.6
4.7
5.0
4.6
4.5
4.2
4.4
22, 412
25, 658
26, 779
22, 860
24, 750
23, 627
25, 589
24, 594
24, 433
21, 061
20, 110
24, 288
26, 711
21.6
20.4
20.9
19.3
19.7
20.0
21.0
21.2
21.6
22.0
21.2
21.7
21.4
2,727
3,825
3,524
3,909
3,908
3,924
3,718
3,994
3,692
2,675
2,548
2,823
3,465
2.6
3.0
2.8
3.3
3. 1
3.3
3.0
3.5
3.2
2.8
2.7
2.5
2.8
26, 282
30, 904
30, 710
30, 209
31, 174
29, 055
29, 577
27, 955
27, 034
24, 884
24, 193
27, 658
29, 532
30.2 $22, 228
31.4 29, 922
31.5 30, 017
32. 1 29, 777
32.6 30, 796
33.0 28, 086
31.6 28, 503
30.4 28, 286
30.2 28, 990
28.4 21, 989
30. 1 21, 350
32.0 23, 084
32.5 27, 091
7.9
8.6
8.3
9.0
8.9
8.9
8.6
8.7
9.2
8.4
8.4
7.7
8.0
$70, 980
85, 417
89, 563
74, 960
80, 049
74, 577
84, 678
80, 484
80, 971
66, 342
62, 065
75, 650
82, 569
25.3
24.4
24.8
22.7
23.2
23.5
25.4
24.7
25. 6
25.3
24.3
25.2
24.3
$9, 954
12, 195
12, 048
13, 679
13, 844
13, 470
12, 966
14, 571
13, 550
10, 520
9,485
10, 543
13, 122
3.5
3.5
3.3
4.2
4.0
4.2
3.9
4.5
4.3
4.0
3.7
3.5
3.9
$49, 598
59, 453
58, 967
58, 056
58, 826
53, 018
53, 909
52,183
49, 677
48, 026
45, 333
51, 596
56, 561
17.7 $43, 161
17.0 52, 815
16.4 56, 794
17.6 47,621
17.0 49, 549
16.7 43, 457
16.2 47, 794
16.1 50, 699
15.7 47, 629
18.3 41, 095
17.7 40, 451
17.2 43, 303
16.6 50, 203
Revised.
Directory of Member, Federal, and
Insured Institutions
I. INSTITUTIONS ADMITTED TO MEMBERSHIP IN
THE FEDERAL HOME LOAN BANK SYSTEM
BETWEEN APRIL 16 AND MAY 15, 1940*
(Listed by Federal Home Loan Bank Districts, States, and cities)
D I S T R I C T NO. 3
PENNSYLVANIA:
Altoona:
Reliance Building & Loan Association of Altoona, Pennsylvania.
DISTRICT NO. 4
SOUTH CAROLINA:
Seneca:
The Seneca Building & Loan Association, 203 Main Street.
D I S T R I C T NO. 5
KENTUCKY:
Campbellsville:
Taylor County Building & Loan Association.
OHIO:
Massillon:
The Peoples Building & Loan Company, Lincoln Way & Erie Street.
* During this period 2 Federal savings and loan associations were admitted to
membership in the System.
June 1940
D I S T R I C T NO. 7
ILLINOIS:
Chicago:
Twenty-Sixth Street Savings & Loan Association, 4048 West 26th Street.
Highland Park:
The Highland Park Building, Loan & Homestead Association, 21 North
Sheridan Road.
WITHDRAWALS FROM THE FEDERAL HOME
SYSTEM BETWEEN APRIL 16 AND MAY 15,
LOAN
1940
BANK
MARYLAND:
Baltimore:
Title Permanent Building & Loan Association, Inc., 447 East 25th Street
(voluntary withdrawal).
MISSISSIPPI:
Jackson:
Standard Life Insurance Company of the South, North Congress Street
(voluntary withdrawal).
MISSOURI:
St. Joseph:
Buchanan Building & Loan Association, 213 North 7th Street (voluntary
withdrawal).
N E W JERSEY:
Passaic:
Greater Passaic Building & Loan Association, 663 Main Avenue (sale of
assets and transfer of 15 shares of Bank stock to North Jersey Building
& Loan Association).
NORTH CAROLINA:
Mooresville:
The Mooresville Building & Loan Association (voluntary withdrawal).
PENNSYLVANIA:
Philadelphia:
Orinoka Building & Loan Association, 2510 East Allegheny Avenue
(voluntary withdrawal).
321
II. FEDERAL SAVINGS AND LOAN ASSOCIATIONS
CHARTERED BETWEEN APRIL 16 AND MAY 15,
1940
III. INSTITUTIONS INSURED BY T H E FEDERAL
SAVINGS AND LOAN INSURANCE CORPORATION
BETWEEN APRIL 16 AND MAY 15, 1940
DISTRICT NO. 2
DISTRICT NO. 2
N E W JERSEY:
N E W JERSEY:
Paterson:
First Federal Savings & Loan Association of Paterson, 7 Colt Street
(converted from Financial-Regent Building & Loan Association).
Glen Ridge:
Glen Ridge Building & Loan Association, 227 Ridgewood Avenue.
DISTRICT NO. 3
PENNSYLVANIA:
D I S T R I C T NO. 3
Philadelphia:
First Philadelphia Savings & Loan Association, 1700 Samson Street.
PENNSYLVANIA:
W E S T VIRGINIA:
Philadelphia:
Cayuga Federal Savings & Loan Association of Philadelphia, 1816
Girard Trust Building (converted from Cayuga Building & Loan
Association of Philadelphia).
Beckley:
Beckley Federal Savings & Loan Association, 58 Main Street.
D I S T R I C T NO. 4
NORTH CAROLINA:
Charlotte:
First Federal Savings & Loan Association of Charlotte, 119 West 4th
Street.
D I S T R I C T NO. 5
D I S T R I C T NO. 5
KENTUCKY:
Elizabethtown:
First Federal Savings & Loan Association of Elizabethtown, 102 West
Dixie Street (converted from Elizabethtown Building & Loan
Association).
OHIO:
Blue Ash:
The Blue Ash Building & Loan Company, Cooper Avenue.
Hamilton:
The Butler Building & Loan Company, 11 South Front Street.
D I S T R I C T NO. 7
WISCONSIN:
Milwaukee:
Kinnickinnic Federal Savings & Loan Association, 2252 South Kinnickinnic Avenue (converted from Kinnickinnic Mutual Loan & Building
Association).
D I S T R I C T NO. 7
ILLINOIS:
Chicago:
First Savings & Loan Association of Hegewisch, 3150 East 133rd Street.
Third Annual Hunt For Facts
(Continued from p. 296)
motion and advertising. I n many instances, it is
apparent that the benefits of using established
techniques of predetermining objectives, of planning
programs in advance, of testing media, and of measuring results are being reaped in the form of lower
costs per dollar of new business obtained. For these
institutions, the productive approach to advertising
has a real and significant practical value—saving
money, or at least getting a greater value for the
same expenditure.
T H E PRODUCTIVE APPROACH
The widely varying pattern which characterized
not only the study of the amount of money devoted
to, and the results obtained from, association development programs, b u t also the analysis of the
media for which the funds were used, indicates clearly
t h a t there is a substantial need throughout the
entire savings and loan industry for a careful and
rational approach to the problems of business pro-
Table 3.—Percentage distribution of the advertising d<allar, by Bank Districts
Federal Home Loan Bank Districts
United
States
Media
Newspapers
Publications
Printed material- _
Radio
Outdoor bulletins
Illuminated outdoor signs
House organs
Office displays
Car and bus cards
_
Motion pictures
Coin banks
Miscellaneous advertising
47.2
3.0
9.0
10.5
5.0
1.8
3.6
__ 4.3
1. 1
0.3
6.3
7.9
Total
1
1
2
3
4
5
6
7
8
9
10
11
37.0
3.7
11.0
7.3
7.9
0.2
5.6
4. 1
1.4
37.5
3. 1
14.9
5.8
1.7
0.5
3.0
10.4
1.0
0. 1
9.0
13.0
44.9
4.6
11. 7
4.2
2.0
3.4
1.8
5.3
0.0
0. 5
16.8
4.8
57.9
2.8
4.5
12.4
1.0
0.4
4.4
2.3
1.9
0.4
6.4
5.6
45.9
2.3
8.3
16.0
6.9
1.7
1. 1
3.6
0.5
0. 1
4.4
9.2
50.7
2. 1
5.9
7.3
1. 1
1.6
2.6
5.2
2.0
0.8
14.2
6.5
42.6
3.2
14. 1
11.7
4.6
2.3
3.3
4.9
0.6
0. 1
3.4
9.2
49.4
3.0
5.9
11.0
4.7
0.7
2.9
4.2
2.9
0.3
5.9
9.1
53.3
2.3
3.8
14. 1
7.3
2.6
4.6
3.0
0.5
0.5
1.2
6.8
47.9
2.7
6.9
12.9
4.7
1.6
4.6
4.8
0.6
1.4
5.6
6.3
41.5
3.5
5.4
9.8
11.2
2.9
5.4
5.2
1.3
0.2
8. 1
5.5
C1)
8.0
13.8
100.0 100.0 100.0 100. 0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
12
52.4
3.8
13.8
5.8
3.5
3.3
4.7
3.2
0.9
0. 1
3.9
4.6
100.0
Less than 0.05 percent.
322
Federal Home Loan Bank Review
Exhibit A-Business promotion expenditures of member associations, by Federal Home Loan Bank Districts
District No. 7 - Chicago
District No. 1 - Boston
Reporting
associations
Gross operating
income groups
$100,000-200,000
$25,000-50,000
Under $10,000
All reporting assns. -
Average
assets
Average
business
promotion
expenditure
Average
gross
operating
income
Ratio o f b u s i n e s s promotion
expenditure t o :
Gross
operating
income
Assets
New
business
10
9
9
6
5
6
$9,493,068
2,890,256
1,693,954
809,684
405,907
168,013
$454,937
136,376
73,091
36,480
14,817
8,226
$13,310
2,5a
1,588
817
311
66
2.926
1.863
2.173
2.240
2.099
.302
.140
.088
.094
.101
.077
.039
.345
.447
.209
.270
.190
.073
45
3,201,873
150,598
3,936
2.614
.122
.329
8
3
17
14
19
12
$12,509,719
2,571,813
1,711,710
1,111,949
387,612
223,113
$537,698
123,793
70,663
34,219
17,091
6,549
$9,297
3,185
1,445
1,257
1.729
2.573
2.045
3.673
2.446
3.023
.074
.124
.084
.113
.108
.089
.239
.607
.230
.392
.309
.254
2,226,048
92,556
2.019
.084
.266
Reporting
associations
Gross operating
income groups
$10,000-25,000
A l l reporting a s s n s . -
73
$25,000-50,000
$10,000-25,000
Under $10,000
as
198
1,869
All reporting assns. -
All reporting asens. -
$328,323
131,952
68,753
36,077
16,533
6,655
$12,213
5,287
2,042
921
422
293
3.714
4.007
2.970
2.553
2.552
4.403
.136
.236
.158
.133
.117
.168
.319
.657
.376
.363
.251
.354
A l l reporting a s s n s . •
121
1,098,403
56,313
1,374
3.328
.171
.357
$8,a7,745
2,8a,864
1,178,460
736,304
386,491
123,220
$347,233
127,395
64,434
38,813
17,170
5,791
$15,716
4,507
2,063
1,197
431
146
4.526
3.538
3.202
3.084
2.510
2.521
.187
.159
.175
.163
.112
.118
.465
.373
-
3
5
13
15
26
23
A l l reporting a s s n s . -
85
925,999
43,272
1,518
3.508
.164
.392
2
11
17
U
20
22
$7,768,574
2,848,446
1,333,391
605,485
279,789
115,948
$210,812
Ul,559
67,360
37,447
15,847
6,404
$18,043
4,147
2,034
1,059
380
127
8.559
2.930
3.020
2.828
2.398
1.983
.232
.146
.152
.175
.136
.UO
.284
.331
.296
.238
86
1,002,862
52,628
1,645
3.126
.164
.350
5
4
17
13
20
23
$6,677,451
2,094,133
1,356,994
589,639
272,394
123,348
$374,052
122,9a
69,072
35,5a
16,067
6,234
$9,200
3,592
1,797
633
396
116
2.460
2.922
2.602
1.922
2.465
1.361
.138
.172
.132
.116
.145
.094
.465
.461
.320
.316
.432
82
985,a9
54,427
1,346
2.473
.137
.389
$100,000-200,000
$25,000-50,000
U3,ao
0
$i,a7
2,589
657
436
148
0
1.071
3.772
1.763
2.607
2.359
0
.067
.214
.104
.137
.100
0
.286
.504
.319
.259
.338
99
603,853
33,950
791
2.330
.131
.358
10
12
13
22
25
24
$11,520,445
2,537,018
1,274,057
673,376
375,934
131,474
$672,632
139,910
70,261
34,644
17,709
5,964
$7,980
5,963
2,454
809
477
97
1.186
4.262
3.493
2.335
2.694
1.626
.069
.235
.193
.120
.127
.074
.153
.423
.306
.239
.217
.113
106
1,788,485
100,629
2,031
2.018
.114
.228
19
26
34
30
32
4
$8,525,969
2,488,673
1,371,942
665,938
339,918
286,508
$433,673
ia,430
70,575
35,511
16,920
6,406
$7,578
4,002
1,488
567
289
546
1.747
•2.830
2.108
1.597
1.708
8.523
.089
.161
.108
.085
.085
.191
.262
.381
.263
.237
.200
.500
145
2,105,838
109,993
2,255
2.050
.107
.287
5
7
20
18
19
11
$6,312,217
2,960,943
1,390,515
742,080
323,257
126,801
$318,553
158,470
68,575
39,746
16,809
6,096
$4,998
4,027
2,283
1,214
485
372
1.569
2.5a
3.329
3.054
2.885
6.102
.079
.136
.164
.164
.150
.293
.326
.504
.426
.465
.284
.455
80
1,256,777
64,693
1,675
2.589
•133
.408
$100,000-200,000
$50,000-100,000
-
$10,000-25,000
A l l reporting assns. -
$10,000-25,000
A l l reporting assns. -
$100,000-200,000
-
$25,000-50,000
$10,000-25,000
A l l reporting assns. -
District No. 11 - Portland
$100,000-200,000
-
$25,000-50,000
$10,000-25,000
-
A l l reporting a s s n s . -
$25,000-50,000
$10,000-25,000
Under $10,000
All reporting assns.
-
•
«
*
1
10
13
14
20
9
$2,770,520
1,457,521
658,514
332,550
135,524
$146,317
78,131
34,952
16,179
7,516
$5,328
4,050
1,191
494
146
7.742
2.6a
5.184
3.408
3.053
1.943
.369
.192
.278
.181
.149
.108
.646
.501
.683
.366
.239
.185
67
1,139,705
59,127
2,693
4.555
.236
.516
11
20
24
31
10
2
$5,675,518
2,616,250
1,215,958
661,696
365,584
142,289
$329,974
148,778
69,464
36,884
16,266
7,221
$10,011
4,343
1,526
1,373
544
654
3.034
2.919
2.197
3.722
3.3U
9.057
.176
.166
.125
.207
.149
.460
.386
.385
.248
.430
.250
.651
98
1,718,282
97,387
2,887
2.949
.168
.362
District No. 12 - Los Angeles
District No. 6 - Indianapolis
$100,000-200,000
.345
.249
District No. 10 - Topeka
District No. 5 - Cincinnati
Over $200,000
$100,000-200,000
$50,000-100,000
New
business
$6,549,759
2,240,529
1,296,386
694,755
360,593
174,337
District No. 4 - Winston-Salem
Over $200,000
$100,000-200,000
Assets
District No. 9 - Little Rock
0
$132,259
68,640
37,271
16,727
6,273
17
37
23
Gross
operating
income
D i s t r i c t 1o. 8 - Des Koines
0
$2,102,730
1,211,423
633,608
319,322
U
Ratio of business promotion
expenditure toi
8
6
27
23
33
24
District No. 3 - Pittsburgh
0
8
Over $200,000
$100,000-200,000
Average
business
promotion
expenditure
•
•
•
Over $200,000
$100,000-200,000
$50,000-100,000
District No. 2 - New York
Over $200,000
$100,000-200,000
$50,000-100,000
Average
gross
operating
income
Average
assets
$100,000-200,000
$50,000-100,000
$25,000-50,000
Under $10,000
A l l reporting assns. -
To preserve anonymity, it is necessary to omit the dollar amounts reported by this association.
Mortgage Recordings
(Continued from p. 300)
of these institutions to the mortgage-recording
grand totals is relatively small, they are of significant
importance in the Boston and New York Districts
where their activities are largely concentrated. In
both of these regions, the mutual savings bank share
of the total home-financing business showed an
increase over the 1939 figures.
Three Districts (Winston-Salem, Indianapolis,
and Chicago) reported a lower volume of mortgages
recorded by these institutions. In spite of the fact
that the dollar amounts were low, the Cincinnati and
Des Moines areas indicated substantial gains over the
1939 levels.
INCREASE IN COVERAGE
Evidence of the growth of this study during the
past year is found in the increasing number of
counties from which monthly mortgage-recording
reports are received. In March of this year, tabulations were sent to the Division of Research and
Statistics from 610 local districts which contain
almost two-thirds of the total nonfarm population of
the entire country. This compares with 491 localities and 49.6 percent of the nonf arm population
during the same month of last year.
Waverly
(Continued from p. 293)
An effective solution must be based upon action
undertaken as a united community enterprise, with
a broad program which embraces the district as a
whole and each dwelling in it. If it is to be genuinely
effective, this pattern must be developed under experienced technical guidance, must include detailed
recommendations for the repair by the owners of
all residential units which need rehabilitation or
architectural revision; must directly or indirectly
provide a financing medium, easily and cheaply
available to those who cannot themselves supply the
funds necessary to defray repair and reconstruction
cost; must deal with community problems such as
the opening and closing of streets, the establishment
of recreational areas, and the voluntary acceptance,
by property owners, of those use and ownership
restrictions not related to zoning and not usually
covered by ordinance which have so frequently been
found to constitute actual benefits to the individual
324
owner and his neighborhood; must devise barriers
against infiltration by undesirable residents and encroachment and infection by contiguous substandard
districts; must provide for traffic routing and regulation; must consider necessary extensions of school
equipment and adequacy of public utility and transportation facilities; must plan landscaping for public
and private spaces; and finally, in both its initial
and subsequent stages, must be administered under
sympathetic and continuously energetic leadership.
I t was for the purpose of anticipating and forestalling the conditions which have taken—and promise to continue to take—such a heavy toll from our
cities that the Test Conservation Program in Waverly
was begun. The initial job of making a comprehensive analysis of the neighborhood has been done.
A solution has been proposed. The realization of
that solution, however, depends on the future course
of action of the citizens themselves, with the cooperation of the Home Owners' Loan Corporation
and private mortgage institutions, which have the
same interest in the conservation and rehabilitation
of the property values of the neighborhood as the
individual citizen.
The methods proposed for the conduct of such a
program for united action will be discussed in articles
in the July and August issues of the R E V I E W . The
field survey and planning stage will be described, the
methods followed in the technical analysis will be
outlined broadly, and the Master Plan for the
rehabilitation and safeguarding of this neighborhood
under the direction of concerted neighborhood action
will be presented.
New Ideas
•
S P E A K I N G before the annual meeting of the
American Statistical Association, Dr. Wilson
Compton, of the National Lumber Manufacturers
Association, pointed out t h a t : "The lumber industry
is today experimenting with new ideas, new products,
and new methods of using old and familiar products.
In one of our most popular house designs last year,
we used joistless wood plank floor. This saved 14
percent in quantity of lumber and 26 percent in
installation-labor time. I t increased the insulation
qualities of the floor by 25 percent. I t reduced fire
hazard. The possible cost reduction in the present
basic standard 2-story, 5-room National Small
Demonstration Home from the joistless floor alone
i s W $100."
Federal Home Loan Bank Review
U. S. GOVERNMENT PRINTING OFFICE: 1940
FEDERAL HOME LOAN BANK DISTRICTS
YOB*
k —
$
BOUNDARIES OF FEDERAL HOME LOAN BANK DISTRICTS
FEDERAL HOME LOAN BANK CITIES.
OFFICERS OF FEDERAL HOME LOAN BANKS
BOSTON
CHICAGO
6 . J. ROTHWELL, Chairman; E . H . W E E K S , Vice Chairman; W . H .
C. E . BROUGHTON, Chairman; H . G. ZANDER, JR., Vice Chairman; A. R.
N EAVES, President; H .
N.
FAULKNER,
Vice President;
FREDERICK
G A R D N E R , President; J. P . D O M E I E R ,
Treasurer; CONSTANCE M . W R I G H T , Secretary; UNGARO & SHERWOOD,
Counsel.
Counsel.
NEW
DES
YORK
MOINES
Chairman;
C. B . B O B B I N S , Chairman; E . J. R U S S E L L , Vice Chairman; R. J. R I C H A R D -
G. L. B L I S S , President; F . G. STICKKL, J R . , Vice President-General
SON, President-Secretary; W. H . LOHMAN, Vice President-Treasurer;
J. M. M A R T I N , Assistant Secretary; A. E . MUELLER, Assistant Treasurer;
G GORGE
MACDONALD,
Counsel; R O B E R T
C.
Chairman;
F. V.
G. CLARKSON,
D.
LLOYD,
Vice
Vice President-Secretary;
DENTON
E M M E R T , J A M E S , N E E D H A M & L I N D G R E N , General Counsel,
L Y O N , Treasurer.
LITTLE ROCK
PITTSBURGH
E.
Vice President; H . C . J O N E S ,
W I N A N T , J R . , Treasurer; L. E . D O N O V A N , Secretary; P . A. H E N D R I C K ,
T . T R I G G , Chairman; C. S. T I P P E T T S , Vice Chairman; R. H . R I C H ARDS,
President;
G.
R.
PARKER,
Vice
President;
H.
H.
GABBER,
W. C. JONES, J R . , Chairman; W. P . GULLEY, Vice Chairman; B . H .
WOOTEN, President; H . D . WALLACE, Vice President-Secretary; J. C .
CONWAY, Vice President; W . F . T A R V I N , Treasurer; W. H . CLARK, J R . ,
Secretary-Treasurer; R. A. CUNNINGHAM, Counsel.
Counsel.
WINSTON-SALEM
TOPEKA
E. C. B A L M , Vice Chairman; O. K. L A R O Q U E , President-Secretary; G. E .
WALSTON, Vice President- Treasurer; Jos. W. HOLT, Assistant Secretary;
P . F , GOOD, Chairman; G. E . M C K I N N I S , Vice Chairman; C. A. STERLING,
T . SPRCILL T H O R N T O N ,
Counsel.
President-Secretary; R. H . BURTON, Vice President-Treasurer; JOHN
S. D E A N , J R . , General Counsel.
CINCINNATI
PORTLAND
W M . M E G R U E BROCK, Vice Chairman; WALTER D . S H U L T I , President;
W . E . J U L I U S , Vice President; D W I G H T W E B B , J R . , Secretary; A.
L.
M A D D O X , Treasurer; T A # T , STETTINIUS & HOLLISTER, General Counsel.
F. S. MCWILLIAMS,'Vice Chairman; F. H. JOHNSON, President-Secretary;
IRVING
BOGARDUS,
INDIANAPOLIS
H. B . W E L L S , Chairman; F . S. CANNON, Vice Chairman-Vice President;
F R E D T. G R E E N E , President; G. E . OHM ART, 2nd Vice President; J. C .
Vice President-Treasurer; Mrs. E . M . J E N N E S S ,
Assistant Secretary.
Los ANGELES
D . G. D A V I S , Chairman; A. J. E V E R S , Vice Chairman; M . M . H U R FORD, President; C. E . BERRY, Vice President; F . C. N O O N , Secretary.
M o R D i n , Secretary-Treasurer; J O N E S , HAMMOND, BUSCHMANN & G A R D -
Treasurer;
NER, Counsel.
PATRICK, General Counsel.
VIVIAN
SIMPSON.
Assistant
Secretary;
RICHARD
FITZ-
@FedFRASER