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FEDERAL
HOME
LOAN
BANK
Vol. (3, No. 9
Washington, D. C.
JUNE 1947
IN THIS ISSUE
Supreme Court Decision in Long Beach Case
A n Analysis of Last Year's Trend in Savings
More Controls on Home Building are Dropped
Savings and Mortgage Financing Operations of Insured
Commercial and Mutual Savings Banks
ERRATUM
FEDERAL HOME LOAN BANK REVIEW
JUNE 1947 ISSUE
The caption in heavy "black type introducing FHLBA Bulletin No, 88
on page 275 of the June 1947 issue of the REVIEW should read:
"Amendment to Rules and Regulations for the Federal Home
Loan Eank System relating to the acceptance "by Federal
Home Loan Banks of deposits from their member institutions,"
Monthly publication of the FEDERAL HOME
L O A N BANK REVIEW will be discontinued
with the current issue. This action is taken in
the interest of economy.
Within limitations of available funds, the
statistical series heretofore published in the
REVIEW will be continued and made available
periodically to members of the Federal Home
Loan Bank System, and to others upon request.
ft,
ne f
Supreme Court decision in Long Beach Case
The Supreme Court of the United States on J u n e 23, 1947, unanimously upheld t h e constitutionality of the law a n d the regulations
under which t h e Federal H o m e Loan Bank Administration is empowered to appoint a conservator for a Federal savings and loan association.
T h e full text of t h e decision is reprinted. [Page 259.]
A n analysis of last year's trend in savings
Despite t h e talk a b o u t t h e decline in t h e r a t e of savings growth, t h e
significant fact from t h e point of view of private institutions is t h a t the
volume of long-term savings a c c u m u l a t e d by individuals during 1946
in institutional media was approximately twice t h e a m o u n t p u t aside
in t h e same institutions in 1941.
T h e F H L B A s t u d y of long-term savings in selected media showed
a year-end t o t a l of $134 billion on deposit. T h e increase of $8.6
billion last year was substantially below gains of $18 billion, $20 billion
a n d $15.6 billion the preceding three years b u t still above t h e increase
during prewar 1941.
T h e D e p a r t m e n t of Commerce using a different approach derives
the a m o u n t of savings by subtracting t a x p a y m e n t s and consumer
expenditures from t h e t o t a l of income p a y m e n t s t o individuals. On
such a basis t h e relation of savings in 1946 t o t h e t o t a l income received
by individuals had fallen almost back t o t h e level of t h e t h i r d q u a r t e r
of 1941. [Page 265.]
M o r e controls on home building are dropped
M a n y i m p o r t a n t features of t h e G o v e r n m e n t ' s system of control
over p r i v a t e home building were eliminated on J u n e 1. Federal
housing p e r m i t s are no longer required of anyone who w a n t s to build
a home for himself or for veterans. T h e 1,500 square foot limitation
has been extended t o 2,000 square feet of allowable floor area a n d t h e
limit on t h e n u m b e r of b a t h r o o m fixtures has been eliminated. [Page
269.]
Savings and mortgage financing operations of banks
Increased mortgage loan portfolios a n d record totals of private
savings despite a slow-down in t h e r a t e of growth were characteristic
of t h e 1946 thrift a n d mortgage financing operations of insured commercial and m u t u a l savings b a n k s . Insured commercial b a n k s reported residential real estate loans o u t s t a n d i n g half again as great as
a t t h e close of 1945 bringing t h e t o t a l t o $5 billion, almost two-thirds
above t h e 1941 peak. T h e $33 billion of savings represented an alltime high, although t h e r a t e of increase h a d dropped to 12 percent
from 25 percent t h e year before.
Mortgage holdings of m u t u a l savings banks increased 6 percent—
their first gain since 1941. Almost $1.5 billion was added t o deposits
a n d t h e year-end total of $16.9 billion represented an all-time high.
[Page 27 L]
April highlights
Seasonal resumption of home
building brought a new peak in the
monthly volume of construction
loans ($70 million) made by all savings and loan associations.
Total
lending by these institutions, however, was 9 percent less than in
April 1946.
Building permits for new construction were u p 14 percent from March
a n d provided for almost 70,000
privately financed units.
Building costs continued u p w a r d
b u t t h e pace was slowing down.
Wholesale building material prices
rose t h e smallest a m o u n t since t h e
end of price control.
A 10-percent increase in the
volume of recordings brought total
mortgage financing activity to $941
million—the largest monthly volume
since the all-time peak in October
1946. The n u m b e r of recordings
was below the same m o n t h last year
for the second consecutive m o n t h .
F o r t h e first t i m e this year net
new investments in all savings a n d
loan associations fell below t h e same
1946 period. T h e four-month total
($392 million), however, was 16 percent above January-April 1946.
It is significant that in four of the
past six months the number of nonfarm foreclosures has exceeded the
same period in the prior year. Foreclosures in the first quarter were 6
percent above 1946.
I n d u s t r i a l production,
employm e n t a n d prices showed declines
which, although minor, were nonetheless i m p o r t a n t .
Het gains in Shars Capital
muum
mmr
AH i&*ur«4 A**ec14tfe*«
—>
*
100
50
I I I I, J I I 1 I J 1
J F M A M , i * J A $ O t f 0
PS&UO
7 44861—47
1
257
FEDERAL HOME LOAN BANK
mi
Contents
P
SPECIAL ARTICLES
°**
United States Supreme Court Renders Decision in Long
Vol.13
55 No. 9
JUNE 1947
The Federal H o m e L o a n Bank
Review is published monthly b y
the Federal H o m e L o a n Bank
A d m i n i s t r a t i o n under the direction of a staff editorial committee.
This committee is responsible for
interpretations,
opinions,
summaries and other text, except
that which appears in the form of
official statements and signed
articles.
Communications concerning material which has been printed or
which is desired for publication
should be sent to the Editor of
the Review, Federal H o m e L o a n
Bank Building, Washington 2 5 ,
D. C
*
•
•
The
Federal
Home
Administration
Loan
assumes
Bank
no
re-
Beach Case
259
An Analysis of Last Year's Trend in Savings
265
More Controls on Home Building are Dropped
269
Savings and Mortgage Financing Operations of Insured
Commercial and Mutual Savings Banks
271
FEATURE M A T E R I A L
News notes
Worth repeating
Proposed amendments to Rules and Regulations
Monthly survey
Directory changes of member, Federal and insured institutions
264
270
275
277
281
STATISTICAL D A T A
New family dwelling units
Building costs
Savings and loan lending
Mortgage recordings
Gl lending
F H A activity
Federal Home Loan Banks
Insured savings and loan associations
Share investments and repurchases
Quarterly tables
282-283
283-284
284-285
285-286
286
286
286
287
287
288
sponsibility for material o b t a i n e d
from sources other than itself or
other instrumentalities of the Fed-
Contents of this publication are not copyrighted
eral Government.
•
*
•
NATIONAL HOUSING AGENCY
Raymond M. Foley, Administrator
FEDERAL H O M E L O A N BANK
ADMINISTRATION
John H. Fahey, Commissioner
258
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Federal Home Loan Bank Review
UNITED STATES SUPREME COURT RENDERS
DECISION IN LONG BEACH CASE
•
T H E United States Supreme Court on June
23, 1947 unanimously upheld the constitutionality of the law and the regulations under
which the Federal Home Loan Bank Administration is empowered to appoint a conservator for a
Federal savings and loan association.
The Supreme Court's decision is the culmination of litigation which was begun shortly after
the appointment on M a y 20, 1946 of a conservator for the Long Beach Federal Savings and Loan
Association, Long Beach, California. The case,
begun in the United States District Court in Los
Angeles, was appealed directly to the Supreme
Court of the United States. Oral argument before
the Supreme Court was heard last April 30, with
Oscar H. Davis of the Solicitor General's Office,
Department of Justice, representing the Government.
The opinion is printed below.
SUPREME COURT OF THE U N I T E D STATES
No. 687.—OCTOBER T E R M , 1946
J O H N H. F A H E Y AND A. V. AMMANN, INDIVIDUALLY
AND RESPECTIVELY AS FEDERAL LOAN BANK
COMMISSIONER AND CONSERVATOR FOR THE
LONG BEACH FEDERAL SAVINGS AND LOAN
ASSOCIATION, APPELLANTS,
v.
PAUL MALLONEE, ET AL.
APPEAL FROM THE DISTRICT COURT OF THE
UNITED STATES FOR THE SOUTHERN D I S TRICT OF CALIFORNIA.
[June 23, 1947.]
M R . JUSTICE JACKSON delivered the opinion of
the Court.
A specially constituted three-judge District
Court has summarily, without trial, entered final
judgment ousting a Conservator who, on orders of
the Federal Home Loan Bank Commissioner, had
taken possession of the Long Beach Federal
Savings and Loan Association. I t granted this
and other relief on the principal ground that § 5
(d) of the Home Owners Loan Act of 1933, as
amended, violates Article I, §§ 1 and 8 of the
Constitution.
The Federal Home Loan Administration on
June 1947
May 20, 1946, without notice or hearing, appointed Ammann conservator for the Association and
he at once entered into possession. The grounds
assigned were that the Association was conducting
its affairs in an unlawful, unauthorized and unsafe
manner, that its management was unfit and unsafe, that it was pursuing a course injurious to,
and jeopardizing the interests of, its members,
creditors and the public. Plaintiffs at once
commenced this class action in the right of the
Association against the Conservator and Fahey,
Chairman of the Federal Home Loan Bank
Board, the Association as a nominal defendant,
and several others not important to the issue here.
The complaint alleged that the Conservator and
the Chairman had seized the property without due
process of law, motivated by malice and ill will, and
that the seizure for various reasons was in violation of the Constitution. I t asked return of the
Association to its former management, permanent
injunction against further interference, and other
relief. Other parties in interest intervened.
Temporary restraining orders issued and a threejudge court was duly convened.
Personal service was secured upon Ammann,
the Conservator, but Fahey, the Federal Home
Loan Bank Commissioner, officially an inhabitant
of the District of Columbia, could not be served
in California. A motion for substituted service,
therefore, was granted and process was served
upon him in the District of Columbia. I t was
believed that this was authorized by Judicial
Code, § 57, 28 U. S. C. § 118. Ammann moved
to dismiss the complaint on the ground that it
failed to state a cause of action. Fahey appeared
specially to move dismissal or quashing return
of service on him upon the ground that he could
not, in his official capacity, be sued in California
and had not been served properly with process.
Neither had answered the complaint, nor had
their time to do so expired, when final judgment
was granted against them.
The three-judge court set a variety of pending
motions for argument and, after argument mainly
on the constitutionality of § 5 (d), with only
pleadings and motion papers before it, held the
259
section unconstitutional, ordered removal of the
Conservator, permanently enjoined the authorities
from holding an administrative hearing on the
matter, permanently enjoined an apprehended
merger, restored the institution to its former
management, ordered the Conservator to account
and enjoined these authorities "from ever asserting any claims, right, title or interest" in or to the
Association's property. The case is here on
direct appeal. 50 Stat. 752-53, 28 U. S. C.
§§ 349a, 380a.
I t is manifest that whatever merit there may
be in various subsidiary and collateral questions,
this drastic decree can stand only if the section,
as applied here, is unconstitutional.
Its defect is said to consist of delegation of
legislative functions to the supervising authority
without adequate standards of action or guides to
policy. Section 5 (d) of the Act gives to the
Board "full power to provide in the rules and
regulations herein authorized for the reorganization, consolidation, merger, or liquidation of such
associations, including the power to appoint a
conservator or a receiver to take charge of the
affairs of any such association, and to require an
equitable readjustment of the capital structure of
the same; and to release any such association
from such control and permit its further operation." 48 Stat. 133, 12 U. S. C. § 1464 (d).
This, the District Court held, was unconstitutional
delegation of the congressional function. I t relied
on Panama Refining Co. v. Ryan, 293 U. S. 388.
and Schechter v. United States, 295 U. S. 495.
Both cited cases dealt with delegation of a power
to make federal crimes of acts that never had been
such before and to devise novel rules of law in a
field in which there had been no settled law or
custom. The latter case also involved delegation
to private groups as well as to public authorities.
Chief Justice Hughes emphasized these features,
saying that the Act under examination was not
merely to deal with practices "which offend against
existing law, and could be the subject of judicial
condemnation without further legislation, or to
create administrative machinery for the application of established principles of law to particular
instances of violation. Rather, the purpose is
clearly disclosed to authorize new and controlling
prohibitions through codes of laws which would
embrace what the formulators would propose, and
260
what the President would approve, or prescribe,
as wise and beneficent measures for the government of trades and industries in order to bring
about their rehabilitation, correction and development, according to the general declaration of
policy in section one." Schechter v. United States,
295 U. S. 495, 535.
The savings and loan associations with which
§ 5 (d) deals, on the other hand, are created,
insured and aided by the federal government. I t
may be that explicit standards in the Home Owners
Loan Act would have been a desirable assurance of
responsible administration. But the provisions of
the statute under attack are not penal provisions
as in the case of Lanzetta v. New Jersey, 306 U. S.
451, or United States v. Cohen Grocery Co., 255
U. S. 81. The provisions are regulatory. They
do not deal with unprecedented economic problems
of varied industries. They deal with a single
type of enterprise and with the problems of
insecurity and mismanagement which are as old
as banking enterprise. The remedies which are
authorized are not new ones unknown to existing
law to be invented by the Board in exercise of a
lawless range of power. Banking is one of the
longest regulated and most closely supervised of
public callings. I t is one in which accumulated
experience of supervisors, acting for many states
under various statutes, has established welldefined practices for the appointment of consertors, receivers and liquidators. Corporate management is a field, too, in which courts have
experience and many precedents have crystallized
into well-known and generally acceptable standards. A discretion to make regulations to guide
supervisory action in such matters may be constitutionally permissible while it might not be
allowable to authorize creation of new crimes in
uncharted fields.
The Board adopted rules and regulations
governing appointment of conservators. They
provided the grounds upon which a conservator
might be named, 1 and they are the usual and
conventional grounds found in most state and
1
T h e Rules a n d Regulations for t h e Federal Savings
a n d Loan System provide in p a r t as follows:
P A R T 206.
A P P O I N T M E N T OF C O N S E R V A T O R OR R E C E I V E R .
§ 206.1. Receiver or conservator; appointment,
(a) Whenever, in t h e opinion of t h e Federal H o m e Loan Bank
(Footnote 1 continued on next page.)
Federal Home Loan Bank Review
federal banking statutes. 2 They are sufficiently
explicit, against the background of custom, to be
adequate for proper administration and for judicial review if there should be a proper occasion for it.
I t is complained that these regulations provide
for hearing after the conservator takes possession
instead of before. This is a drastic procedure.
But the delicate nature of the institution and the
impossiblility of preserving credit during an investigation has made it an almost invariable custom
to apply supervisory authority in this summary
manner. It is a heavy responsibility to be exercised with disinterestedness and restraint, but in
the light of the history and customs of banking
we cannot say it is unconstitutional. 3
In this case an administrative hearing was
demanded and specifications were asked as to the
charges against the management of the Association. The hearing was granted and a statement of
complaints against the management was furnished.
2
Bank Conservation Act of M a r c h 9, 1933, § 203, 48
Stat. 2 - 3 , 12 U. S. C. § 203; Banking Act of 1933, § 31,
48 Stat. 194, 12 U. S. C. § 71a; National Housing Act,
§ 406, 48 Stat. 1259-60, 12 U. S. C. § 1729. E. g., New
York Banking Law, § 606, 4 M c K i n n e y ' s Consolidated
Laws of New York 708-709, (pocket part) 125-26; Page's
Ohio General Code Ann., § 687; 1 Deering's California
General Laws, Act 986, § 13.11; Massachusetts Laws Ann.
c. 167, §22; c. 170B, § 4; Jones Illinois Stat. Ann., § 14.40.
3
See note 2.
(Footnote 1—Continued from p. 260.)
ment take possession of t h e association and, a t t h e time
such conservator or receiver shall d e m a n d possession,
such conservator or receiver shall notify t h e officer or
employee of t h e association, if any, who shall be in t h e
home office of t h e association and appear to be in charge
of such office, of t h e action of the Federal H o m e Loan
Bank Administration.
T h e Secretary of t h e Federal
H o m e Loan B a n k Administration shall, forthwith upon
adoption thereof, mail a certified copy of t h e order of
a p p o i n t m e n t t o t h e address of t h e association as it shall
a p p e a r on t h e records of t h e Federal H o m e Loan B a n k
Administration a n d to each director of t h e association,
known by t h e Secretary to be such, a t t h e last address
of each as t h e same shall appear on t h e records of t h e
Federal H o m e Loan Bank Administration.
If such
certified copy of t h e order appointing t h e conservator or
receiver is received a t t h e offices of t h e association after
t h e t a k i n g of possession by t h e conservator or receiver,
such conservator or receiver shall h a n d t h e same to any
officer or director of the association who m a y m a k e dem a n d therefor.
§ 206.2. Hearing on appointment.
Within fourteen d a y s
(Sundays a n d holidays included) after the a p p o i n t m e n t
of a conservator or receiver for a Federal association not
a t the time of such a p p o i n t m e n t in the hands of a conservator, such Federal association, which has not, by its
board of directors, consented to or requested the appointm e n t of a conservator or receiver, m a y file an answer a n d
serve a written d e m a n d for a hearing, authorized by its
board of directors, which demand shall state t h e address
to which notice of hearing shall be sent. Upon receipt
of such answer and written demand for a hearing t h e
Federal H o m e Loau Bank Administration shall issue and
serve a notice of hearing upon the institution by mailing
a copy of the order of hearing to the address stated in t h e
d e m a n d therefor and shall conduct a hearing, a t which
time and place t h e Federal association m a y appear a n d
show cause wiry the conservator or receiver should not h a v e
been appointed and why an order should be entered by
the Federal H o m e Loan Bank Administration discharging
the conservator or receiver. Such hearing shall be held
either in the district of the Federal H o m e Loan Bank
Administration, any Federal savings and loan association:
(1) Is conducting its business in an unlawful, u n a u t h o r ized, or unsafe m a n n e r ;
(2) Is in an unsound or unsafe condition, or has a
m a n a g e m e n t which is unsafe or unfit to manage a Federal
savings a n d loan association;
(3) C a n n o t with safety continue in business;
(4) Is impaired in t h a t its assets do not have an aggregate value (in t h e j u d g m e n t of the Federal H o m e Loan
B a n k Administration) a t least equal to t h e aggregate
a m o u n t of its liabilities to its creditors, members, a n d all
other persons;
(5) Is in imminent danger of becoming impaired;
(6) Is pursuing a course t h a t is jeopardizing or injurious
to t h e interests of its members, creditors, or t h e public;
(7) H a s suspended p a y m e n t of its obligations;
(8) H a s refused to submit its books, papers, records, or
affairs for inspection to any examiner or lawful agent
a p p o i n t e d by t h e Federal H o m e Loan B a n k Administration;
(9) H a s refused by the refusal of any of its officers,
directors, or employees to be examined upon oath by t h e
Federal H o m e Loan B a n k Administration or its representative concerning its affairs; or
(10) H a s refused or failed to observe a lawful order of
the Federal H o m e Loan Bank Administration,
t h e Federal H o m e Loan Bank Administration m a y appoint
t h e Federal Savings a n d Loan Insurance Corporation
receiver for such Federal association, which a p p o i n t m e n t
shall be for the purpose of liquidation, or the Federal
H o m e Loan Bank Administration m a y appoint a conservator for such Federal association t o conserve the
assets of the association pending further disposition of its
affairs. T h e a p p o i n t m e n t shall be by order, which order
shall state on which of t h e above causes t h e a p p o i n t m e n t
is based. Any conservator so appointed shall furnish
bond for himself a n d his employees, in form and a m o u n t
a n d with surety acceptable t o the Governor of the Federal H o m e Loan Bank System, or any D e p u t y or Assistant
Governor, b u t no bond shall be required of t h e Federal
Savings a n d Loan Insurance Corporation as receiver.
T h e conservator or receiver shall forthwith upon appoint-
June 1947
(Continued on p. 262)
261
The causes for the appointment of a conservator
as therein set forth by the Board included withdrawals by the president without proper voucher
therefor; payment of salaries and fees not commensurate with services rendered; a director's unlawful removal of a cashier's check in the amount of
$50,000 during an examination by Federal Home
Loan Bank examiners; leasing properties of the
Association for a twenty-year period on terms which
would not provide adequate consideration to the
Association; use of the Association for personal gain
of one or more officers and directors; failure to
maintain proper accounts and to make proper
reports; and falsification of records. I t also charged
certain manipulations of the affairs of another
institution by the president of this institution.
The plaintiffs nevertheless demanded and
obtained an injunction to prevent the administrative hearing and they have therefore cut off the
making of a record as to whether these charges are
well-founded. Nor did the trial court take evidence on the subject. We must assume that the
supervising authorities would be able to sustain the
statements of fact and to justify the conclusions
in their charges for the purpose of determining
the case without trial. We are therefore unable
to agree with the court below that the section is
invalid and hence that regardless of the charges
the management was free to go on undisciplined
and unchecked.
But even if the section were defective, which
we think it is not in a constitutional sense, another
obstacle stands in the way of ousting this conservator.
The Long Beach Federal Savings and Loan
Association was organized in 1934 under § 5 of
the Home Owners Loan Act of 1933, subsection
(d) of which is now sought to be declared unconstitutional. The present management obtained a
charter which provided that the Association " shall
at all times be subject to the Home Owners' Loan
Act of 1933, providing for Federal savings and loan
associations, and to an}^ amendments thereof, and
to valid rules and regulations made thereunder as
the same may be amended from time to time,"
and that it might be "liquidated, merged, consolidated, or reorganized, as is provided in the rules
and regulations for Federal savings and loan
associations." In 1937, upon the Association's
request, an amended charter was issued which
likewise provided that the Association was to
exercise its powers subject to the Home Owners'
Loan Act and regulations issued thereunder.
This is a stockholder's derivative action in
which plaintiffs sue only in the right of the Association. I t is an elementary rule of constitutional
law that one may not " retain the benefits of the
Act while attacking the constitutionality of one of
its important conditions." United States v. San
Francisco, 310 U. S. 16, 29. As formulated by
Mr. Justice Brandeis, concurring in Ashwander v.
Tennessee Valley Authority, 297 U. S. 288,348.
" T h e Court will not pass upon the constitutionality of a statute at the instance of one who has
availed himself of its benefits."
In the name and right of the Association it is
now being asked that the Act under which it has
(Footnote 1—Continued from page 261.)
§ 206.4. Discharge of conservator or receiver. An order
of the Federal H o m e Loan B a n k Administration discharging a conservator a n d returning t h e association t o its
m a n a g e m e n t shall restore to such Federal association
all iis rights, powers a n d privileges a n d shall restore t h e
rights, powers and privileges of its officers a n d directors,
all as of t h e time specified in such order, except as such
order m a y otherwise provide. An order of t h e F e d e r a l
H o m e L o a n Bank Administration discharging a receiver
a n d returning the association to its m a n a g e m e n t shall by
operation of law and w i t h o u t a n y conveyance or o t h e r
instrument, act or deed, restore to such F e d e r a l association
all its rights, powers and privileges, revest in such Federal
association the title to all its" p r o p e r t y , a n d restore t h e
rights, powers and privileges of its officers a n d directors,
all as of the time specified in such order, except as such
order m a y otherwise provide. 24 C. F . R. Cum. Supp.
§ 206.1 et seq., as amended, 24 C. F . R. 1943 Supp. § 206.1.
of which such F e d e r a l association is a member or in
Washington, D. C , as the Federal H o m e Loan Bank
Administration shall determine, unless the association
otherwise consents in writing. Such hearing m a y be held
before the Federal H o m e Loan B a n k Commissioner or
before a trial examiner or hearing officer, as the Federal
H o m e Loan Bank Administration shall determine. Such
Federal association, which has not, by its board of directors,
consented to or requested t h e a p p o i n t m e n t of a conservator
or receiver, may, within seven days (Sundays a n d holidays
included) of such a p p o i n t m e n t , serve a written or telegraphic demand, authorized by its board of directors, upon
the Federal H o m e Loan B a n k Administration for a more
definite s t a t e m e n t of the cause or causes for the action.
T h e time of service upon the Federal H o m e Loan Bank
Administration for t h e purposes of this Section shall be
the time of receipt by t h e Secretary of the Federal H o m e
Loan Bank Administration.
262
Federal Home Loon Bank Review
its existence be struck down in important particulars, hardly severable from those provisions which
grant its right to exist. Plaintiffs challenge the
constitutional validity of the only provision under
which proceedings may be taken to liquidate or
conserve the Association for the protection of its
members and the public. If it can hold the charter
that it obtained under this Act and strike down
the provision for terminating its powers or conserving its assets, it may perpetually go on, notwithstanding any abuses which its management
may perpetrate. I t would be intolerable that the
Congress should endow an Association with the
right to conduct a public banking business on
certain limitations and that the Court at the
behest of those who took advantage from the privilege should remove the limitations intended for
public protection. I t would be difficult to imagine
a more appropriate situation in which to apply the
doctrine that one who utilizes an Act to gain
advantages of corporate existence is estopped from
questioning the validity of its vital conditions.
We hold that plaintiffs are estopped, as the Association would be, from challenging the provisions
of the Act which authorize the Board to prescribe
the terms and conditions upon which a conservator
may be named.
There are other important and difficult questions raised in the case which it becomes unnecessary to decide.
Objection is made to the administrative hearing
upon the ground that it is before the same authority which has preferred the charges and that
it cannot be expected, therefore, to be fair and
impartial and that the Act does not provide for
judicial review of the Board's determination on
the hearing. We cannot agree that courts should
assume in advance that an administrative hearing may not be fairly conducted. We do not now
decide whether the determination of the Board
in such proceeding is subject to any manner of
judicial review. The absence from the statute of
a provision for court review has sometimes been
held not to foreclose review. Stark v. Wickard
321 U. S. 288; Federal Reserve Board v. Agnew,
329 U. S. 441; Administrative Procedure Act,
5 U. S. C. A. § 1009. Nor do we mean to be understood that if supervising authorities maliciously,
wantonly and without cause destroy the credit of
a financial institution, there are not remedies.
June 1947
One of the allegations of the complaint is that
it was intended that this institution would be
merged with other institutions to the injury of its
shareholders. The allegation seems to be based
on the fact that a different institution with which
the management of the Long Beach institution
was connected was merged by the authorities in a
way that was highly objectionable to some of the
shareholders and aroused concern of the public
authorities. We find no explicit threat to merge
the Long Beach institution and there is no such
finding by the court below. The Government has
assured us at the bar that there is no plan for such
a merger in contemplation. Nevertheless, such a
merger was enjoined. In view of the absence of
a finding of the threat or of evidence to sustain
one, we accept the Government's assurance that
merger will not follow and, hence, we do not consider it necessary to discuss the legality of hypothetical mergers.
Since the judgment that has been rendered
against the Conservator, who was duly served with
process, must be reversed, we find it unnecessary
to decide whether Fahey was an indispensable
party or was properly brought into the case by
substituted service.
I t is obvious that there is more to this litigation
than meets the eye on the pleadings. The plaintiffs7 charges that ill will and malice actuated the
supervising authorities, as well as the charges
of the defendants that the institution has been
mismanaged and that the management is unfit, are
alike undetermined by the courts below, and we
make no determination or intimation concerning
the merits of these issues or as to other remedies
or relief than that in the judgment before us.
Our decision is that it was error in the court
below to hold the section unconstitutional, to
oust the Conservator or to enjoin any of his proceedings or to enjoin the administrative hearing,
and this without prejudice to any other administrative or judicial proceedings which may be warranted by law. The judgment is
Reversed.
M R . JUSTICE DOUGLAS concurs in the result.
M R . JUSTICE RUTLEDGE concurs in the result
and in the Court's opinion insofar as it rests upon
the ground that the controlling statute, § 5 (d)
of the Home Owners' Loan Act of 1933, is not
unconstitutional.
263
^rawpny
New products listed
by Commerce Department
A wide range of new products for
use in construction was featured in
the Construction Industry Report for
May. Among the materials listed,
together with brief statements as to
the performance and merits claimed
by the manufacturers, are: An asphalt-gypsum sheathing panel patterned after a marine board which
proved its worth during the war; a
light-weight concrete wall panel; and
a new type plastic composition
flooring for residences. Termed "the
closest approach to perfect transparency ever attained in a window
glass," a hew vertical drawn sheet
glass is also described, as is a threeply cross-laminated hardwood flooring fabricated from cull-type hardwood logs not ordinarily adapted to
the production of this particular
type flooring.
Because of the widespread interest
in information on these recently
developed products, the report on
them will be made a permanent
feature of this publication of the
Construction Division, Department
of Commerce.
will increase this year's supply by
only 2 percent and next year's by
6 percent.
Two-thirds of the country's plywood—32 million square feet—comes
from the Pacific Northwest but even
out there the lumber yards report
that it is scarce. However, hardwood
plywood, produced in the South, is
said to be getting more plentiful in
some eastern cities. Prices have increased with demand and since the
end of price control last November
have gone up 35 percent.
April construction gain
less than normal
Totaling $846 million, the volume
of new construction put in place
during April showed a less-thannormal seasonal gain of about 8
percent over March. However, the
April figure was about a fifth more
than was reported in the same month
of last year, according to the Construction Division of the Department of Commerce.
Nonfarm residential construction
accounted for $270 million of the
$636 million worth of all privately
financed construction in April. Home
building activity was 3.8 percent
above that recorded in March, but
considerably below the usual gain
for this time of year. Public residential construction for the month
was down to $19 million.
Three production agreements for pigiron
In a move to increase the output
of foundry and malleable grades of
pigiron—the kinds needed for housing-type items—the Office of the
Housing Expediter has recently entered into production agreements
with three producers in the field.
Each of the contracts sets up minimum tonnages, or fractions of total
metal output, which the companies
will produce, and also provides generally for filling specific orders requested by the Housing Expediter,
up to the agreed minimum tonnage.
VETERANS HOME LOANS
GEOGRAPHIC DISTRIBUTION OF LOANS BY VETERANS ADMINISTRATION BRANCH AREA
APRIl 1,1947
Increased plywood
production still too little
More than 10 times the quantity
of plywood is being produced in the
United States now than was made
20 years ago, and still the supply has
far from caught up with the demand.
These facts were highlighted in a
recent survey conducted in lumber
yards of 10 leading cities by The Wall
Street Journal and reported in that
paper on May 15.
The thousand uses to which it can
be put, chiefly in home construction,
account for its meteoric rise in popularity which continues to outstrip the
vastly increased production.
The
survey showed that a slackening in
demand is the only short-term cure
since mills now under construction
264
^ o *
Each figure represents
20,000 approved loans
Federal Home Loan Bank Review
AN ANALYSIS OF LAST YEAR'S TREND
IN SAVINGS
Althoush a slower rate of growth in the Ions-term savings of
individuals was noted last year, the total volume of such funds
increased more than $8 billion to reach a new high level. Significant shifts occurred in the savings pattern, however.
•
ALMOST nobody needs to be told that it
was harder to save money last year than it
had been during the war. Too many things stood
between the average American's dollar and his
favorite savings media. This was true in spite
of the fact that income payments to individuals
were at the all-time high of $165 billion. Prices
were on the " u p " escalator; even though there
was no large-scale unemployment, many people
felt the pinch of reconversion adjustments which
reduced their savings potential; long-wanted
goods became more plentiful; and, with the end
of the war, the psychological pressure to save for
victory was dissipated and there wTas a return to
peacetime income-spending habits. All this added
up to the fact that, whatever technical terms are
used to define and measure savings, 1946 was not
so good a year for adding to the accumulated
backlog as were the preceding four years.
Despite the talk about the decline in the rate
of savings growth and the records cited, these
statistics have a tendency to obscure a significant
fact from the point of view of private institutions.
That is, the volume of long-term savings accumulated during 1946 in institutional media was
approximately twice the amount put aside in
those institutions by individuals in 1941. Some
of the comparisons are quite striking. For example, savings and loan associations in 1941 reported
a net gain in share capital of $380 million compared with $1.1 billion last year. Mutual savings
banks showed a decline of $128 million in their
accounts during 1941 whereas last year they experienced a gain of $1.5 billion. The time deposits
of commercial banks increased $200 million in 1941
bui were up over $3 billion last year. From this
it is apparent that there is a considerable volume
in terms of dollars of new savings flowing into
these institutions which accept the long-term savings of individuals.
June 1947
Of the various ways of measuring savings, two
have been selected for summarization in this
article—the Federal Home Loan Bank Administration's study of individuals' long-term savings
in selected media, and the U. S. Department of
Commerce data on savings. One might be called
the inductive method and the other the deductive,
although the differences are broader than that
inasmuch as these two studies do not attempt to
cover the same ground.
FHLBA study
The FHLBA series is confined to estimates of
the amount of money placed in those channels
most commonly used by individuals for the accumulation of reserves—savings and loan associations, life insurance companies, mutual savings
and insured commercial banks, the postal savings
system, and those Government securities especially designed for the small saver. Thus, the
data are built up from the estimated deposits and
holdings reported.
iitt $&m$ m SAVING mfcmv#rsjfc$TmjTJOi*$
* r
' — — i - "
—
" ' %i
'
—
SAVINGS 8 LOAN ' LIFE INSURANCE , MUTUAL SAVINGS \
INSURED
ASSOCIATIONS
COMPANIES
BANKS
i COMMERCIAL BANKS
J- -
'
I
i
e]
-i—i-
8-
265
diminished progressively to 7 percent, 4 percent,
and in the last half of 1946 to 3 percent.
Turning again to the annual figures, all of the
savings media covered by this study, except
United States and postal savings bonds (the latter
a negligible factor in the study anyway), showed
substantial growth in 1946 although not so great
as during the war years. Savings and loan associations represented the only group which showed
a higher dollar gain in 1946 than in 1945. Their
15-percent increase was the largest for any media
covered. Postal savings and insured commercial
banks were next with gains of 12 percent each,
followed by increments of 10 and 8 percent,
respectively, for mutual savings banks and life
insurance companies.
Despite the fact that the total shown at the
end of the year was the highest on record—$134
billion—the amount which was added during 1946
was less than in any year since 1941. The increase
of $8.6 billion was not to be compared with the
gains of $18 billion, $20 billion and $15.6 billion
in the preceding three years. Even in 1942, as
the full impact of wartime economy and psychology were emerging, the American public had
added $9.1 billion to its accumulation in these
savings media.
A further evidence of the steady decline in the
rate of growth of individual savings is apparent
from an analysis of semi-annual figures for the
last two years. I n the first half of 1945 the increment was 10 percent. From there the gains have
Estimated savings of
individuals
in selected
media
[Millions of dollars]
Savings
a n d loan
associations i.
D e c e m b e r 31
1920
1921-_
1922..
1923..
1924____
1925...
19261927....
1928_.
1929
1930
.
.
.
193619371938
1939....
1940
1941 . .
1942 ._
1932
1944
1945....
1946
_.
.
.
.
Total
Net
increase
during
year
$5
4
3
3
2
2
$761
652
730
373
411
376
$19, 825
21,942
23, 844
26, 241
28, 945
32,808
$2,117
1,902
2,397
2,704
3, 863
4,378
5,027
5,762
6,237
6,296
9,939
11,049
12, 213
13, 238
14,096
7,799
8,352
8,731
8,797
9,384
14, 288
15, 253
15, 304
15,032
14, 286
143
153
158
169
250
3
3
5
7
8
356
245
95
36,906
40,082
42, 268
43,480
44,320
4,098
3,176
2,186
1,212
840
5,916
5,326
' 4,750
' 4,458
' 4,254
14,679
14,858
15,011
16, 052
17, 542
9,939
9,890
9,506
9,670
9,829
12,096
9,341
8,729
9,709
10, 575
613
915
1,229
1,232
1,229
14
30
54
73
104
153
43, 257
40,360
39, 279
21,194
43,686
—1,063
—2,897
— 1,081
1,915
2,492
'4,131
'4,015
r 4, 005
' 4,060
' 4, 272
19,133
20,510
21,858
23,381
25,025
10,013
10,126
10, 235
10,481
10,618
11,491
12,100
12,196
12,622
13,062
1,291
1,303
1,286
1,315
1,342
99
95
92
90
87
475
964
1,442
2,209
3,195
46,633
49.113
51.114
54,158
57,601
2,947
2,480
2,001
3,044
3,443
4,652
4,910
5,494
6,305
7,365
8, 500
27, 393
29,610
31, 256
34,100
37,362
» 40,400
10,490
10,621
11,707
13, 332
15,332
16,813
13, 261
13,916
16,864
21,728
27,830
31,123
1.392
'1,459
1,837
' 2,406
3,013
3,379
85
84
83
82
82
80
4,750
10, 526
19,574
29,153
34,204
33,498
62,023
71,126
86,815
107,106
125,188
133,793
4,422
9,103
15,689
20, 291
18,082
8,605
.
....
5
$166
148
135
135
137
138
.
.
War
savings
securities
a n d U . S.
savings
bonds"
$6, 532
7,457
8,156
9,271
10,822
12, 205
.
.
Postal
savings
$4,806
5,541
5,985
6,484
6,912
7,349
„
.
Insured
commercial
banks 4
$5, 814
6,175
6, 625
7,349
8,048
8,927
.
1931..1932
1933....
1934....
1935
Mutual
savings
banks 3
$1,741
1,965
2,210
2,626
3,153
3, 811
._
.
Lite insurance companies 2
P
1
Estimated private investments in savings and loan associations, including deposits and investment securities., Does not include shares pledged against
mortgage
loans. Source: Federal Home Loan Bank Administration.
2
Estimated accumulations in United States life insurance companies. Data include reserves plus unpaid dividends, dividends left to accumulate and surplus
to policyholders,
minus premium notes, policy loans, and net deferred and unpaid premiums. Source: The Spectator.
3
Deposits. Source: Mutual Savings Banking, published by National Association of Mutual Savings Banks. Prior to 1938 data based on savings deposits
in mutual savings banks as reported by the Comptroller of the Currency. All figures include a small percentage of Christmas savings and other special
accounts
in addition to regular deposits.
4
Deposits evidenced by savings passbooks. For 1933 and prior years data based on Comptroller of the Currency figures for all active banks except mutual
savings banks; for 1934 and subsequent years, figures represent savings deposits in insured commercial banks. Figures for 1942 to date are revised estimates
based
on total time deposits. Source: Federal Deposit Insurance Corporation and Federal Home Loan Bank Administration.
5
Due depositors: outstanding principal and accrued interest on certificates of deposit, outstanding savings stamps, and unclaimed deposits. Source: Post
Office
Department.
6
Excludes such bonds held by the Postal Savings System. Source: Treasury Daily Statements and Post Office Department.
7
Current redemption value. From 1920 to 1928, War Savings Securities; 1935 to May 1, 1941, U. S. Savings Bonds, Series A-D; and May 1,1941 to date,
also rincludes U. S. War Savings Bonds, Series E. Source: Treasury Daily Statements.
Revised.
P Preliminary.
266
Federal Home Loan Bank Review
The outstanding total of U. S. savings bonds
(Series A-E) showed the first decline last year.
Redemptions exceeded sales by $700 million and
the total outstanding dropped 2 percent to $33
billion. In spite of this, they remained second
only to the $40-billion net reserves and dividends
to the credit of life insurance company policyholders.
The $134-billion total of savings in the selected
media at the close of 1946 was two and one-third
times the amount invested at the end of the prewar year 1940. U. S. savings bonds expanded to
more than 10 times the volume outstanding prewar, while private investments in savings and
loan associations, time deposits of insured commercial banks and postal savings doubled in outstanding amount. Individuals' savings in life
insurance companies and mutual banks showed
increases of approximately 60 percent over the
period.
Commerce Department data
Approaching the problem of estimating savings
from a different angle than that taken by the
Bank Administration, the Department of Commerce measures savings on a deductive basis.
Theirs is a "residual" figure arrived at by first
deducting tax payments from total income payments to individuals, the result being disposable
income. This figure, less consumers' expenditures, equals the net amount of money available
for individual savings.
Obviously, therefore, there is no direct correlation between the two series. But the story is the
same—the volume of new savings declined in
1946. This annual study x shows that, not only
has the amount of individual savings undergone a
major change since the war, but that there has
been a shift in composition.
Over a period of time it has been found that,
normally, the volume of savings varies with the
amount of disposable income in the hands of individuals. Consumer expenditure-savings patterns which had prevailed from 1929 through 1940
were disrupted by the war and the volume of
savings rose far above what might have been
expected on the basis of their prewar relationship.
After reaching a peak in the second quarter of
1
"Savings by Individuals," Survey of Current Business, April 1947.
June 1947
1945, they declined precipitously. By the final
quarter of last year they had fallen back almost
to the level of the third quarter of 1941 although
the volume of disposable income had risen by
about two-thirds over the five-year interval. In
reverting to a more normal pattern, the forms of
savings which had expanded most sharply during
the war, as might have been expected, bore the
brunt of the postwar reductions.
Trend in savings bonds
Purchases of U. S. savings bonds in 1946 were
below those in any year since 1941. Sales of E,
F and G bonds totaled $7.4 billion, or $5.5 billion
less than in 1945. Redemptions of $6 billion
brought the net increase during the year down to
$1.4 billion.
Redemptions of E bonds, which yield a higher
return and are far more widely held than the F and
G series, out-stripped purchases in 1946, resulting
in a net decline of $500 million in the amount of
E bonds outstanding.
There are no current data available on the
denominations of E bonds outstanding, but the
percentage distribution of total sales by denomination was used in the Commerce Department survey to indicate the trend in present holdings.
This breakdown, which shows a shift in bond
purchases to higher denominations, suggests that
low income groups have been squeezed out as bond
buyers and have become much less important in
the market for savings bonds than during the war
267
when payroll deductions represented a factor of
greater significance in the sales program for war
savings bonds.
Specifically, the study showed that in February
1947, 16 percent of the value of all E bonds purchased were of the $10 and $25 denomination,
compared with 34 percent a year earlier and 36
percent during 1943. Similarly, the $50 denomination of E bond, which in 1944 had represented
15 percent of total sales dropped to 14 percent in
February 1946 and to 8 percent in that month of
this year. On the other hand, E bonds of $500
and $1,000, which comprised about one-third of
all E bond purchases during the war, had increased
in February 1947 to three-fifths of all savings
bond purchases.
Although data on redemption rates by denomination are not available beyond June 1946, they
indicate that redemption rates of E bonds in the
lower denominations have been greater than
among the higher brackets. Nearly half of the
$25 bonds purchased in 1945 had been redeemed
by June 30 of the following year, compared with
only about a third of the $50 issues, one-fifth of
the $100 bonds and only a tenth of the $500 and
$1,000 bonds. These shifts in the denomination
pattern of sales and redemptions provide evidence
that some groups of investors have been liquidating their holdings while others have continued to
accumulate them.
Pointing to the reversion to traditional means of
savings as the postwar pressure to purchase war
bonds was abated, savings in the form of currency
and bank deposits continued to rise last year.
The rate of increase was about a third below that
of 1945 but it represented a smaller relative
decline than that shown by savings bonds. The
trend in life insurance savings was somewhat
similar, with the record of private institutions
being considerably higher than for Government
insurance which experienced a 30-percent reduction owing to decreased participation in National
Service Life Insurance.
Consumer credit
One of the factors contributing to the decline
in the accumulation of new savings last year was
the appearance of many consumer goods offering
an outlet for spending. The increase in short-term
consumer credit amounted to $2.4 billion,- a greater
268
gain than in any previous year. The Commerce
Department survey showed that the amount
outstanding at the end of 1946 approximated the
previous record for consumer credit which was
established in 1941.
However, because of the remaining credit
restrictions, but even more because of the still
inadequate supply of consumer durable goods,
the total of consumer credit remained far below
what might be expected on the basis of prewar
relationships to income. The Commerce report
stated: "As these shortages are overcome, a considerable rise in the amount of consumer credit
outstanding may be expected. Instalment financing, particularly, is out of line with the prewar
ratio to total short-term credit, representing
two-fifths of the total at the end of 1946, as compared with three-fifths of the total five years ago."
The mortgage debt also showed a marked rise
last year when, by reason of the volume of new
home construction added to the active sales
market, the total outstanding rose to an all-time
high of $24.6 billion.1
This year's prospects
A recent release of the Commerce Department
shows that individual savings in the first quarter
of this year were at an annual rate of 10 percent
compared with rates of 13 and 23 percent during
the two preceding years. This has been the cause
for some concern, which seems particularly valid
in the light of the shift away from savings by small
savers who provide the mass consumer purchasing
power. This fact, brought out in the Commerce
Department Survey, was highlighted in a different form in the Federal Reserve Board study on
savings 2 which showed the greater percentage of
liquid asset holdings concentrated among the
higher income groups rather than being spread
throughout the population.
However, the 10-percent rate has been shown
to be average or better for peacetime years, even
in prosperous times—for example, from 1923 to
1929.
A higher-than-average rate was characteristic during World War I and the current
postwar drop follows the pattern evident at that
time.
1
"Last Year's Trend in the Home Mortgage Debt," FHLB REVIEW,
May 1947, p. 233.
2 "Who Holds the Backlog of Savings?" F H L B REVIEW, July, August
and September 1946.
Federal Home Loan Bank Review
MORE CONTROLS ON HOME BUILDING
ARE DROPPED
Further liberalization of the Federal controls on home building
was recently announced by the Housing Expediter. The permit
system has been eliminated. Restrictions on non-residential construction will be continued at least for the present.
•
SEVERAL important features of the Government's system of control over private home
building were eliminated on June 1 by order of the
Housing Expediter. As of that date, Federal
Housing Permits were no longer required of
anyone who wanted to build a home for himself
or for veterans. The 1,500-square-foot limitation was extended to 2,000 square feet of allowable floor area and the limit on the number of
bathroom fixtures which could be installed in a
new house was removed.
At the same time these changes were announced,
Mr. Creedon emphasized that the controls on
non-residential construction as well as other
controls and aid would be continued until conditions permit further relaxation. The construction limitation order (VHP-1) was described as
" t h e keystone of the housing program." "There
is an enormous backlog of deferrable commercial
and industrial construction which is now held
back by V H P - 1 " he explained. "While the materials situation has been improving steadily—
enough, that is, to permit us to relax the onebathroom and 1,500-square-foot limitations—it
has not improved sufficiently to remove all
controls.
"Without the construction limitation order,
there would be a mad scramble for materials, and
home building would suffer. Prices on scarce
materials would rise even higher they are now,
and the home builder would be squeezed out in
the competition."
Prospect of 750,000 new homes
For the first time since he became Housing
Expediter last December, Mr. Creedon went on
record recently with his estimates on the number
of houses that will be made ready for occupancy
during 1947. At least 1,000,000 dwelling units of
all types, of which about 750,000 will be new
permanent homes, will be completed this year if
June 1947
the remaining controls affecting residential construction are continued for a few more months, he
said.
"During the first five months of this year about
290,000 new permanent homes were completed.
In addition, about 320,000 are now in various
stages of construction. That adds up to 610,000.
In other words, even if not another house is
started this year after June 1, something more than
600,000 new permanent homes will be completed
this year. During all of last year—which was a
good building year—only 450,000 new permanent
homes were completed.
"Up to now we have been talking about known
facts. Now to complete the picture we must do
some estimating. But our estimates are conservative. First, we must estimate that any
house that is started by the middle of August will
be completed by the end of this year. Next, we
estimate the number of new permanent homes
that will be started during June, July, and the
first half of August. If we assume that starts will
continue through that period at the same rate as
in April and May—a reasonable assumption—we
come up with better than 150,000 additional new
permanent starts. Add that to the 600,000-plus
already accounted for up to June 1 and you get
750,000-plus," figured Mr. Creedon.
"Adding the other types of housing, including
conversions, trailers and re-use units, it may be
expected that about a million units will be provided in 1947. This will be an amazing record,"
the Expediter said, "but it will be living off last
year's fat unless we get more starts than we have
to date and it will also mean a fall-off in completions next year."
Among the regulations which are still in effect
is one requiring veterans' preference on all homes
that are built for sale or rent. Unless a new home
is being built for occupancy by the owner it must
(Continued on p. 274)
269
* * * WORTH REPEATING * * *
GUARANTY: "It is characteristic of
the economic chain of cause and
effect that so long as there is a huge
reservoir of savings in the hands of
the public, industry will continue to
program the full-scale production
that in itself is the best guaranty of
the public's continuing ability to save
money. The funds with which goods
are produced are drawn primarily
from existing savings which in our
financial system are converted into
loans, stocks, and bonds.
For
instance, every savings and loan man
knows that the amount of home lending his association can do during the
next few years is dependent almost
entirely upon the amount of funds
placed in the institution by the
community's savers."
George L. Bliss, Railroad Federal Savings and Loan Association, New York, N. Y., Savings
and Loan? News, March 1947.
OUT OF REACH: "Our nation,
with $270 billions of debt, will continue at a high level of income and
relatively cheap dollar. At the same
time, the honest fact is that we are
pricing housing out of the reach of
potential consumers who need it and
who would like to buy or rent it.
Since we cannot confidently look to
major downward adjustments in unit
prices in the immediate future sufficient to bring us back to over-all
housing cost, we must find other
means."
Philip M. Klutznick, Americ a n Community B u i l d e r s ,
Inc., The Mortgage Banker, April
1947.
FUNDAMENTALS: "The legal restrictions on the amount of the mortgage in relation to the appraisal have
little force or meaning without a
standardized appraisal
An uninformed or inaccurate appraisal can
easily make a 50% loan an 80% loan,
or an 80% loan a 100% loan, and has
done so too frequently.
"So, any way you figure it, you
have to depend on the two real fundamentals of mortgage lending, an
accurate and realistic appraisal, accompanied by an appropriate and
collected amortization. Fortunately
270
the latter tends to be a protection
against modest errors of judgment in
the former. These are the basic
standards of mortgage investment."
Joseph M. Dodge, D e t r o i t
Bank, before A. B. A. Eastern
Regional Savings and Mortgage
Conference, New York. N . Y.
NO QUESTION: "Nothing can do
more than good housing to renew the
faith of the masses in American
democracy. Nothing can do more
than bad housing to fertilize the
seeds of other governmental theories . . .
"It is no longer a question whether
decent housing should or can be
provided for all the people. Bad
housing will be eliminated. In the
recent war, our tremendous capacity
for production has been amply
demonstrated, and slum dwellers are
becoming educated to the degree
that they suspect their circumstances
are not inevitable."
Guy T. Hollyday, Mortgage
Bankers of America, in report to
Board.
INDUSTRY CONTROL: "Despite the
almost fatalistic appearance of the
forces causing the sharp cycles in the
industry, and the holding down of
housing standards for the lower rent
families, there appears to be good
reason to believe that the construction industry can change its policies.
Not all the influences causing trouble
are entirely beyond the control of the
industry. Decisions to build at
price levels which match incomes,
and to reduce costs, particularly
as volume rises, for instance, are
decisions which would affect the
volume and stability of house building and which within limits are
subject to conscious control by the
industry itself. If these and other
difficulties are vigorously attacked,
housing markets could be very
decidedly increased, housing standards raised and fluctuations in construction reduced toward the order
of magnitude of those in the consumer goods market."
Robinson Newcomb and H. C.
Kyle, "The Housing Crisis in
a Free Economy," Law and
Contemporary Problems, Duke
University Press, Winter 1947.
ECONOMIC KEY: "Only under rare
and ideal conditions will social need
and effective demand for housing
coincide. The discrepancy between
the two constitutes the 'housing
problem/ a social problem of the
first order, and at the same time a
problem of primary economic significance because of the key importance
of the construction industry in our
economy."
Issues, Philadelphia Housing
Association, March-April 1947.
SKY HIGH: "Present-day costs have
taken the price of new housing far
beyond the ability to pay of the
a v e r a g e veteran-purchaser. . . .
There just isn't any sizable group of
prospective veteran-purchasers that
can carry loans above $6,000."
T. Bertram King, Veterans
Administration, before conference of National Association
of Mutual Savings Banks, Boston, Mass., May 6, 1947.
THE BOOKSHELF
Although inclusion of the title does not
necessarily mean recommendation by the
REVIEW, the following recent publico'
tions will be of interest.
ECONOMIC
ALMANAC
FOR
1946-47.
National
Industrial
Conference
Board, New York. 377 pp. $4 cloth;
$3 paper.
SUMMARY OF THE 1946 HOUSING
YEAR (Bibliography of 1946 Housing
Literature); National Association of
Housing Officials, 1313 E. 60th St.
Chicago 37, 111.
OUR FAIR CITY: Edited by Robert
S. Allen. 1947. The Vanguard
Press, Inc., 424 Madison Avenue,
New York 17, New York. 387 pp.
$3.50
AMERICA'S NEEDS AND RESOURCES:
By J. Frederic Dewhurst and Associates.
The Twentieth Century
Fund, New York. 812 pp. $5.00.
NEW ARCHITECTURE AND CITY PLAN-
NING: A symposium edited by Paul
Zucker. Philosophical Library, In c.
15 East 40th Street, New York, N.Y.,
694 pp. $10.
Federal Home Loan Bank Review
SAVINGS AND MORTGAGE FINANCING
OPERATIONS OF BANKS
The real estate mortgage loan portfolios of both insured commercial banks and mutual savings banks showed marked increases
last year. Private savings deposited in these institutions rose in
dollar amount but the rate of advance was less than during
the war years.
•
A review of 1946 shows that the thrift and
mortgage finance operations of both insured
commercial banks and mutual savings banks were
marked by the same general trends—the chief
differences being in the degree rather than in the
type of experience recorded. The high levels of
construction and real estate activity were reflected
in an increase in mortgage loans secured by real
estate, wiiile the impact of reconversion on peopled
individual finances showed up in the declining
rate of savings which, however, remained relatively high. Not only were these developments
similar as between these two types of banks, they
were also in conformity with trends evident in
savings and loan associations and other comparable
institutional media.
In addition to the increases shown in the volume
of outstanding real estate loans of both insured
commercial and mutual savings banks, the change
in the home mortgage debt * provides a significant
measure ol last year's accelerated mortgage financing activity. In common with all other private
lenders, these banking institutions showed a
greatly expanded volume of new lending, which
despite heavy repayments, resulted in additions
to the total debt outstanding. The amount
carried on the books of commercial banks—$3.9
billion—was half again as large as the 1945 yearend figure and represented an all-time high for
these institutions. Mutual savings banks were
moving in the same upward direction but at a
much slower rate. Their increase amounted to
only 6 percent, bringing their total mortgage
debt to $2.7 billion, approximately back to the
1942 level but still considerably below the high
point reached a decade earlier.
i "Last Year's Trend in the Home Mortgage Debt," FHLB REVIEW,
May 1947, p. 233.
June 1947
Insured commercial banks
Figures in this article are from Federal Deposit
Insurance Corporation reports which cover only
insured institutions. However, since their assets
represented all but 2 percent of the national total
for all active banks in the United States, the
story of these banks is that of the industry as a
whole.
One of the chief effects of reconversion was to
be seen in the influence of the Federal debt
retirement program on the assets of these institutions. Total resources of all insured commercial
banks at the end of 1946 amounted to $147
billion—down 7 percent during the year. Holdings of Government obligations dropped $15 bilPERCENTA6E CHANGE IN TIME DEPOSITS
AND RESIDENTIAL MORTGAGE LOANS
INSURED COMMERCIAL BANKS
T,ME
FEDERAL HOME LOAN
BANK D I S T R I C T S
0
DEPOSITS
RESIDENTIAL MORTGAGE LOANS
PERCENT
PERCENT
10 20 30 40 0
10
20 30 40 50 60 70
•• m
P
•
I"
WMF
•—
Fp
IB
w^
fW/A
[Mp"
f | ™
1946
1945
OVER 1945
OVER 1944
10 ANALYSIS DIVISION
FEDERAL SAVINGS A
271
Residential mortgage holdings a n d time d e posits of insured commercial banks, 1 9 4 6
[Thousands of dollars]
Residential m o r t gage loans
Federal H o m e Loan Bank
District and state
D e c . 31,
1946
..
Connecticut
...
Maine
_ _
Massachusetts .
New Hampshire
Rhode Island _
Vermont-.-
D e c . 31,
1946
Increase
during
1946
$5, 055, 651 $1, 725,385 $32, 742, 297 $3, 465,135
U N I T E D S T A T E S __ _
B o s t o n ___ _
Increase
during
1946
T i m e deposits
__
_
...
_ .
281. 252
58, 530
1, 774, 748
159, 980
_ _.
81,011
23, 290
98,560
13,078
25,304
40,009
17, 694
10.248
18. 560
4,750
3,949
3,329
355, 480
189, 703
801, 695
66, 910
216,251
144,709
15,873
16,614
77, 337
6,687
25, 027
18, 442
__ __
N e w York
670, 581
194, 765
5, 642, 641
616, 149
297,018
373, 563
71, 380
123, 385
1, 949, 948
3, 692, 693
209,137
407, 012
__ _.
491, 614
177, 629
3,072, 226
317, 466
_ _
19,364
413,082
59,168
7,822
144, 205
25, 602
59,169
2, 762,151
250, 906
5,041
287, 474
24, 951
__.
388, 722
159,600
2,457, 215
273, 562
Alabama
...
_ .
D i s t r i c t of C o l u m b i a
_
F l o r i d a . . _ _ _ _ _ ._
Georgia.._
Maryland--,
- . .
N o r t h Carolina
_
S o u t h Carolina
Virginia-
37,009
34,667
26,012
57.170
64,043
36, 718
15,108
117,995
20, 788
4,649
11, 674
24. 991
24,154
17,150
7,789
48, 405
246, 563
222, 697
308,154
306, 755
432, 408
327, 894
82,063
530, 681
20,177
19, 558
48, 238
29, 669
43, 777
45, 274
8,538
58,331
454, 965
155, 258
2, 972,462
282, 996
47, 025
361,004
46, 936
20, 292
110,303
24, 663
206, 390
2, 368, 561
397, 511
17, 242
223, 756
41, 998
453, 898
169, 357
2, 797, 207
266, 220
_
140, 335
313, 563
45, 500
123,857
793,135
2,004,072
86, 584
179,636
- -
345,078
107, 624
3, 692, 574
490,590
_____
214, 856
130, 222
71,153
36,471
2,481,538
1, 211, 036
321, 649
168. 941
D e s M o i n e s . - . . . _. ._
373, 763
121, 669
2,073,417
241,583
75, 985
97, 215
185, 207
5, 557
9,799
28, 271
27. 880
58, 720
2,273
4, 525
488, 358
794,766
621, 724
93, 418
75,151
55,155
109, 218
50, 583
15,943
10, 684
152. 915
79, 683
965, 377
104, 004
16, 272
27, 594
16, 202
12,400
80,447
8,459
13, 522
6,589
5,901
45,212
93, 591
264, 656
127,361
39, 736
440, 033
9, 325
27,417
13, 482
3, 926
49, 854
93, 591
41, 683
592, 927
46, 547
26, 495
28. 637
13,075
25, 384
11, 582
15,042
5,518
9, 541
219,420
137,478
133, 512
102, 517
22, 474
7, 503
11,068
5.502
1,349,272
459, 587
6, 701, 503
666,038
19,566
Arizona
1,134,023
California
.
11,915
Idaho.. .
10, 665
Montana
.
_ . _ .. .
11.193
Nevada..
. _
33, 460
Oregon . . .
______
39,333
Utah
82, 775
Washington _
_______
6, 342
Wyoming
7,419
362, 225
2, 949
5, 843
4.450
19, 418
13, 965
41, 347
1, 971
90, 827
5, 220,085
90,150
91. 527
52. 433
381, 474
165, 614
564, 912
44, 481
11,817
538, 491
9,371
10.312
8, 451
32, 404
9,768
40, 250
5. 174
New Jersey.
_ . __
New York
__. _ . _
Pittsburgh .
D e l a w a r e _. _
P e n n s y l v a n i a __
W e s t Virginia
Winston-Salem
. _
__
Cincinnati-_
K e n t u c k y ._ .
Ohio
Tennessee _ _
Indianapolis .
I n d i a n a __ _ .
Michigan.
Chicago
. _
Illinois _ _
Wisconsin
Iowa
Minnesota. _
Missouri
North Dakota
South D a k o t a .
_
_
.
... . .
Little Rock..
A r k a n s a s __ ___
_ _ _ .
Louisiana
Mississippi _
___ ._
N e w M e x i c o . . _ _ . . _ __
Topeka
Colorado
Kansas
Nebraska
Oklahoma
. . .
San Francisco
272
.
...
__ __.
._ ._
lion which more than offset increases in other
assets—particularly loans of various types. In
this connection, it is significant to note that the
expansion in real estate loans (almost threequarters of which were on residential properties)
was more rapid than in any year since this series
became available. The residential mortgage loans
outstanding at the end of last year represented
one-sixth of total loans compared with one-eighth
the year before.
Improving on their 1945 record, when a 5percent increase was the first shown since 1942,
insured commercial banks last year reported half
again as large a volume of residential real estate
loans outstanding as they had shown at the end
of 1945. The dollar gain of $1.7 billion brought
the year-end total to $5 billion, almost twrothirds more than the previous peak reached in
1941.
In order to provide savings and loan management with information on a basis comparable
to their own regional data, the F D I C state breakdowns have been combined by Federal Home
Loan Bank Districts in this article. This analysis
shows that for the second successive year increases
were general throughout the country but were
marked by a wdde disparity in the rates of gain.
The past year brought some geographical shifts
in the concentrations of real estate activity but
there was little over-all pattern apparent in
either year.
Indicating the great expansion in mortgage financing activity last year was the fact that increases varied from over a fourth in the Boston
District to more than double in the Little Rock
area. This overshadowed the 1945 increments
which ranged from less than 1 percent in the
Pittsburgh and San Francisco regions to slightly
more than a fourth in the Little Rock area.
Reflecting the large gains in West Coast construction and real estate activity, the dollar volume increase in the San Francisco region wras by
far the greatest shown by any Bank District.
The $1.3 billion secured by residential real estate
loans in that area represented slightly more than
a quarter of the national total, twice as much as
the nearest competitor—-the New York region.
This West Coast expansion in residential mortgage loans was based chiefly on the extraordinary
monetary increase shown in California. Follow-
Federal Home Loan Bank Review
ing an $ll-million decrease in 1945, that state
came back with a gain of $362 million last year—
nearly double the dollar increase shown by any
Bank District (except San Francisco, of course).
The dollar volume of these loans in California—
$1.1 billion—was almost three times as much as
that reported in Pennsylvania which ranked
second in the national totals.
Percentagewise, the California gain was moderate (47 percent).
Eight states—Alabama,
South Carolina, Tennessee, Arkansas, Texas,
Kansas, Montana and Oregon—more than doubled their loans on residential properties. Vermont and the District of Columbia were below
most areas in showing increases of less than 20
percent each.
The F D I C reports do not include any breakdown on residential real estate owned. However,
the balance sheet item "real estate owned other
than bank premises" was reduced by over onethird during the year to a total of $20 million.
I n the light of the generally tight housing situation, it is safe to assume that the residential portion of this account showed a pronounced decline.
A somewhat comparable guide in arriving at such
a conclusion is the experience of insured savings
and loan associations whose year-end real estate
owned figure has been estimated to be only onehalf as large as it had been at the close of the previous year.
Time deposits in commercial banks
In common with other institutional savings
media, insured commercial banks closed their
books last year with a record volume of private
savings on deposit—$33 billion. Also conforming to the general trend in savings accumulation,
the rate of increase was down considerably from
that of the previous year—12 percent in 1946
compared with 25 percent the preceding year.
Dollarwise, also, the increase was less than that
shown in 1945—$3.5 billion compared with $6
billion—but it was still more than that in any
other recent year except 1944.
Since no late data are available on individual
savings evidenced by passbooks, the figures used
in this article represent total time deposits of
individuals, partnerships and corporations. However, at the end of June 1945—the most recent
date for which such a segregation of accounts is
lum 1947
available—individual savings represented 94 percent of the total.
Increased time deposits were general throughout the country but on a considerably smaller
scale than during the previous year. In 1946,
the range was between 9 percent in the Topeka
District and 15 percent in the Chicago region,
while the previous year's gains varied from 22
percent in the Boston District to 31 percent in
the Little Rock area. States in the San Francisco
District again showed the largest dollar increase
which kept them in first place on the basis of the
year-end total.
On a state basis, California and New York remained the leaders in total volume of savings
amassed, as well as in the dollar gain over the
preceding 12-month period. Percentagewise, however, the largest increases were reported in
Florida, North Carolina, Wisconsin, Minnesota,
North Dakota, South Dakota and Nevada where
in each case the gain exceeded 15 percent.
Mutual savings banks
The consolidated year-end balance sheet of
mutual savings banks showed that these institutions had increased their assets by one-tenth during 1946, bringing them to an all-time high of
$18.7 billion. The largest single-item gain was
in liquid assets which rose $1.3 billion, with the
greater part—$1.1 billion—representing an addition to the Government bond portfolio. The
Government securities held by mutual savings
banks on December 31, 1946, totaled $11.7 billion
em)*?**
1 n>t mm*
rnmft Am MAL ESTATE omnfmrns
MUTUAL
—
SAVINGS
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BANKS
^^^^^__
- -- --
11!
ill
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ill
6
fREAL
ill
ESTATE MORTGAGE LOANS
4
;
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273
but because the increase in this account practically
equaled that in total assets, the liquidity-asset
ratio remained at approximately 63 percent.
Conversely, the other feature of the 1946 record
of mutual savings banks which deviated from the
pattern shown by insured commercial banks was
the relatively modest gain in mortgage loans.
(Figures available from the National Association
of Mutual Savings Banks include all outstanding
real estate loans, no breakdown of residential properties being available.) Judged in the light of
their own recent experience, 1946 was a good year
for mutual savings banks in this respect, the 6percent increase in their mortgage holdings being
the first gain shown in five years. The total of
$4.5 billion on the books at year-end was back to
within $3 million of the 1941 amount. However,
it represented only 24 percent of assets compared
with 25 percent the year before and 41 percent
in 1941.
On a state-by-state basis, an improved position
of real estate holdings in relation to the asset
structure was apparent in 10 states, with most
of the declines being fractional. In 1945 Vermont
was the only state to show an increased ratio. In
these comparisons it must be remembered that
there are but 531 of these institutions operating
in only 17 states, excluding some of the most
populous and active real estate areas.
Savings
Almost $1.5 billion was added to the total
deposit accounts of mutual savings banks in 1946,
while the number of such accounts increased by
approximately 860,000. These gains brought
both the total volume of savings—$16.8 billion—
and the number—17.8 million—to new high
levels. Over the same period, the average of all
accounts rose from $907 to $947.
After remaining at about $10 billion from 19301942, the deposits of mutual savings banks rose
about 60 percent in the following four years.
During that interval, the number of depositors
increased only about one-fifth. Thus, it is apparent that the large gain in savings during the
war was due more to the growth of old accounts
than to the addition of new depositors.
Last year's rate of gain in dollar volume of
deposits dropped to 10 percent, or two-thirds of
the rate experienced during 1945. The same trend
274
which was characteristic of insured commercial
banks and other private savings media, except
savings and loan associations, was evident—namely, that the increase during the first half of last year
exceeded that shown during the last six months.
All states showed a larger volume of funds on
deposit at the end of 1946 than at the close of the
prior year. In the major states, the most ramd
rate of increase (11 percent) was in New York
and New Hampshire. Gains in other leading
states where these institutions operate were from
6 percent (Rhode Island) to 10 percent (Maine).
Dollarwise, the $880 million increase in New
York brought total deposits to $9.2 billion, while
the next most active state—Massachusetts—
reported new savings amounting to $225 million,
raising the total at the year-end to $3.1 billion.
Both of those gains were considerably below those
shown the year before.
In commenting on savings developments last
year, Mutual Savings Banking
stated: " . . .
Savings habits may have been more severely
tested during 1946 than they will be again for
some time. There were sizable price movements
during the year and wartime restraints on buying
disappeared. Factors of similar force in curbing
savings are nowhere in prospect. This means that
the only other factor likely to produce a material
decline in savings would be a considerable drop
in the amount of income received by individuals."
Building Controls Dropped
(Continued from p. 269)
be held for a veteran. If it is a home for sale, it
must be held for 60 days after completion before
it can be sold to a non-veteran, and if it is for rent
it must be held for at least 30 days after completion
before it can be rented to a non-veteran.
The requirement that houses be built for yearround occupancy was also maintained. The purpose of this ruling is to defer the construction of
summer cottages, winter lodges and similar
structures which would not provide year-round
shelter for a family and thereby help alleviate the
housing shortage.
Increased supplies of building materials and
more equal distribution of stocks were given as the
reasons behind the further relaxation of controls
in line with the policies announced last December.
Federal Home Loan Bank Review
Proposed Amendments to Rules and
Regulations
FHLBA
Bulletin N o . 9 0
Proposed amendment to the Rules and Regulations for the
Federal Savings and Loan System relating to publication of
regulations.
Amendment to paragraph 201.2 (c) (Title 24,
Code of Federal Regulations) was proposed by the
Federal Home Loan Bank Administration on
June 30, 1947. This amendment would be
accomplished by inserting a period alter the
word "Council" in the last sentence and striking
the following from that sentence:
" a n d filed with the editor of t h e Federal H o m e
Loan B a n k Review for publication in the next
available issue of such Review."
This amendment will not be effective until at
least 30 days after publication in The Federal
Register on July 19, 1947.
FHLBA
Bulletin N o . 8 9
Proposed amendment to the Rules and Regulations for the
Federal Home Loan Bank System relating to publication of
regulations.
Amendment to paragraph (c) of Section 8.3
(Title 24, Code of Federal Regulations) was
proposed by the Federal Home Loan Bank
Administration on June 30, 1947. This amendment would be accomplished by striking the last
sentence of paragraph (c) thereof as follows:
"A copy of each proposed a m e n d m e n t or.rule shall be
filed with the Federal H o m e Loan B a n k Review and
shall be published in the next available issue of
such Review."
This amendment will not be effective until at
least 30 days after publication in The Federal
Register on July 19, 1947.
FSLIC
Bulletin N o . 41
Proposed amendment to Rules and Regulations for the Insurance of Accounts relating to publication of regulations.
Amendment to paragraph 301.22 (c) (Title 24,
Code of Federal Regulations) was proposed by
the Federal Home Loan Bank Administration on
June 30, 1947. This amendment would be accomplished by striking the last sentence of paragraph 301.22 (c) thereof as follows:
"A copy of such proposed rule, regulation or amendm e n t shall be filed with t h e editor of t h e Federal
June 1947
H o m e Loan B a n k Review for publication in t h e
next available issue of such Review."
This amendment will not be effective until at
least 30 days after publication in The Federal
Register on July 19, 1947.
Amendment
FHLBA
Bulletin N o . 88
Amendment to Rules and Regulations for the Federal Savings
and Loan System relating to a new type of share account under
Charter K.
The following amendment to Section 4.1,
paragraph (f), (Title 24, CFR) was adopted by
the Federal Home Loan Bank Administration on
June 25, 1947, effective June 28, 1947, upon
filing with The Federal Register:
" p a r . f. Deposits from Members.
(1) Banks m a y
accept d e m a n d deposits from members, b u t no interest
shall be paid thereon. At least 2 5 % of such funds on
deposit shall be reserved in t h e form of cash and/or
U. S. T r e a s u r y Bills. T h e remaining 7 5 % of such
funds on deposit shall be invested within t h e provisions of Section 11 (g) of t h e Act. T h e Governor
may, in his discretion, upon t h e application of a Bank,
waive all or a p a r t of these reserve requirements, subject to the provisions of the Federal H o m e Loan Bank
Act, as now or hereafter amended. I m m e d i a t e withdrawal m a y be p e r m i t t e d in t h e form of t h e check of
t h e B a n k or as otherwise authorized from time to
time by order of t h e Federal H o m e Loan B a n k
Administration.
" (2) Banks m a y accept time deposits from members
b u t shall reserve t h e right to require, in writing, t h i r t y
days' notice of intention to w i t h d r a w such deposits
or a n y p a r t thereof. At least 2 5 % of such funds on
deposit shall be reserved in t h e form of cash and/or
U. S. T r e a s u r y Bills. T h e remaining 7 5 % of such
funds on deposit shall be invested within t h e provisions of Section 11 (g) of t h e Act. T h e Governor
may, in his direction, upon t h e application of a Bank,
waive all or a p a r t of these reserve requirements, subject to the provisions of t h e Federal H o m e Loan B a n k
Act, as now or hereafter amended. T h e rates of
interest to be paid on such deposits as remain unwithd r a w n for periods of t h i r t y days or more m a y be established by the board of directors of each Bank, within the ranges established b y t h e Federal H o m e Loan
Bank Administration. Withdrawals of such deposits
shall be in t h e form of t h e check of t h e Bank, or in
such other m a n n e r as m a y from time to time be
authorized b y order of t h e Federal H o m e Loan B a n k
Administration.
"(3) As used in sub-paragraphs (1) a n d (2) of this
Section, t h e word 'cash' shall not include deposits
if in a n y other Bank.''
275
Index (1935-1939-100)
550
Index (1935-1939-100)
250
© SAVINGS & LOAN LENDING
(FHLBA)
1
500
,
1
(D PR IVATE C ONSTRlJCTION
1 _ l,
Nonform 1 & 2 F"amily Dwell ing Units
(LA 90R DEPT)
AJ
fN
450
-v
X
150
\
100.1 INI IMIII 1
350
Index (1935-1939-100)
200
1942
aJ
100.
h
250
V
200
\ 1
Wl
*
150 V
1
(FED. RESERVE)
200
400
300
INDUSTRIAL
PRODUCTION
\
V
"
"
•
1942
" • "
" • • " " "
1943
"
1943
'
1944
m i I I II.I\{ i i i i i u i l i i
1945
in l i i i i n l
1946
1947
MANUFACTURING
EMPLOYMENT
i
•
1 1 1 1 1
•
194^
Index (1935-1939-100)
300
i
1945
1946
1947
INCOME PAYMENTS
(COMMERCE DEPT.) 1
250
1
1
100
K
50
1
1
1
1
1
i
A. i * - ^ ' '
N/
rJ
1
\
A
150
- v^
i i i i i 1 1 ii ii i
1942
200
100. 11II11IIII1
MM
1943
1944
1945
1946
1942
1947
Index (1935-1939-100)
Millions
200
$1,200
BUILDING COST INDEX
Standard Six-room House
(NHA)
180
III II 1 Mill IIII11IIII1 II 1 1 1 1 II II 1
1943
1944
1945
'
1946
1
1947
MORTGAGE RECORDINGS
All Lenders
t
160
I40|
120
100.
1942
mnirjini
1943
1945
1944
1946
1947
$40011
300
200
1
1943
1944
I20[
FHLB ADVANCES
OUTSTANDING
1945
1946
1947
REPURCHASE RATIO
All Insured S ft L Assns.
All Member S 8 L Assns.
KL r* WJ
100
w^n
II
1942
Percent
Millions
""
m in n i
1942
\/VA
1943
"
1944
[/
sf
„
V
"
1945
" ' ' " • "
1946
lllllllllll
1947
1942
1943
1944
1945
1946
1947
OPERATING ANALYSIS DIVISION
FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION
276
Federal Home Loan Bank Review
((((((MONTHLY
S U R V E Y » >> >>
Production rate
dropped slightly
Minus signs were more evident on the business
horizon during April than in almost any other
month since the end of the war with the exception
of periods of prolonged strikes. Industrial production, employment and prices showed declines,
which, although they were generally minor in
degree, were nonetheless significant.
The industrial output of the country as measured by the Federal Reserve Board's index
dropped three points to 187 percent of the 19351939 average. All three components of the index—
durable and nondurable goods as well as minerals—shared in the slight declines from March to
April. The monthly (Federal Reserve Board
report pointed to the smaller output of communications equipment, of textiles and of coal as being
chiefly responsible for the lower indexes in their
respective fields.
On the other hand, production in most segments
of the economy was being maintained at postwar
peak levels. Automobiles rolled off the assembly
lines at a rate of five million cars per year. Steel
mills were still operating at 94 percent of capacity.
Manufacturing employment, according to the
Bureau of Labor Statistics, dropped nearly 140,000
between March and April—most of which was
concentrated in the so-called "soft goods'' industries. There was an over-all decrease of 358,000 in
the total number of nonagricultural employees.
"Lay-offs and curtailments in some manufacturing
centers, together with a disappointing rise in
construction, point to soft spots in our economy
which will need careful watching," commented the
Commissioner of Labor Statistics in his review
of the employment situation.
The behavior of prices during recent weeks has
been like that of a circus balloon which, after
shooting up to the ceiling and staying there, has
begun to lose some of its buoyancy. At least a
temporary peak in prices seems to have been
reached during March and declines in some segments of the economy brought slight reductions
in the indexes. The BLS index of wholesale
commodity prices fluctuated around a level of 147
percent of the 1926 average during the latter
part of April and May in comparison with 149
in March. Wholesale prices of farm products
and foods displayed the largest reactions; as for
commodities other than farm* products and foods,
there was actually little change. The wholesale
prices of building materials have remained close
to the peak of the week ending April 19.
The total volume of construction "put-in-place"
during April was estimated at $846 million—up
almost 8 percent over March. This was less
than normal for this time of the year, but was
20 percent above the corresponding month of
last year. Private residential construction activity
was only 4 percent higher than the March l e v e l considerably below the usual seasonal rise.
On the basis of preliminary data, the Department of Commerce estimates that the gross
national product—which represents the total
value of all goods and services in the country—•
was at a seasonally adjusted rate of $209 billion
during the first quarter of this year. This represents a gain in the dollar total over the preceding quarter but, because prices were higher, there
was apparently little increase in the volume of
output.
PerPerApril M a r c h cent
April
cent
1947 change 1946 c h a n g e
1947
April building permits
to provide 70,000 units
Permits for home construction in nonfarm areas,
although continuing below the level of a year ago,
increased 14 percent from March to April, a
rise attributable primarily to seasonal factors.
According to statistics complied by the U. S.
Bureau of Labor Statistics, during April 70,100
Index
[1935-1939=100]
H o m e construction (private) 1 .
R e n t a l index ( B L S )
B u i l d i n g material prices
S a v i n g s a n d loan lending i
Industrial production l
Manufacturing employment *
Income payments i
220.5
109.0
199.7
425.4
187.0
155.9
262.1
r Revised.
1
Adjusted for n o r m a l seasonal v a r i a t i o n .
June 1947
• 199. 6 + 1 0 . 5
109. 0
0.0
198.2 + 0 . 8
442. 5 - 3 . 9
190.0 - 1 . 6
157.7 - 1 . 1
264.5 - 0 . 9
225.3
108.4
141.3
465.2
165.0
141.6
236.4
-2.1
+0.6
+41.3
-8.6
+13.3
+10.1
+ 10.9
277
tWrCLLHtS UWTe~?MO»)ft»*BS
$400 r
NEW RESIDENTIAL
CONSTRUCTION
All ponfarm a--eas
(LABOR DEPT)
TOTAL LOANS BY ALL
S S L ASSNS.
By type of Association j
new family dwelling units were covered by building permits issued for privately financed construction and contracts awarded for public construction. Of these units, almost 69,900, or well
over 99 percent, were to be built with private
financing.
Single-family structures continued to account
for the overwhelming proportion of new dwelling
units, although they did not increase as much
proportionately as did two-family dwellings. During April, 62,133, or 89 percent of total private
construction, were of the one-family type. An
additional 5 percent were in two-family structures and 6 percent of the dwelling units were
in structures built to accommodate three or more
families.
The number of one-family dwellings for which
permits were issued in April was 3 percent less
than in April 1946, compared with gains of 21
and 15 percent for two-family and apartment units.
[TABLES 1 and
2.]
Building costs continued
to creep upward
The NHA index of construction costs for the
standard house continued to move upward
although at a slower rate during April. The
increase for this period was less than 2 percent
compared with over 3 percent from February to
March. The index of total costs now stands at
182.5 percent of the 1935-1939 base period.
278
MORTGAGE
RECORDINGS
Percent of total amount, by
type of mortgagee
j
New contracts and higher wage rates advanced
the labor portion of the index to 172.4, a rise of
just over 1 percent from the previous period.
Slightly decreasing lumber prices in the southern
pine areas coupled with moderate rises in other
supplies also caused the material index to advance
less rapidly than in recent months. The materials
index now stands at 188.8—up almost 2 percent
over the preceding month.
Building material prices at the wholesale level
increased further during April, but the month's
gain was less than at any time since the end of
price control. The composite index of the Bureau
of Labor Statistics rose 2 points to reach 199.7
when converted to a 1935-1939 base. The
. paint and paint materials group was the only
component to show a decline, but the additional
increase in other classifications was relativelv
small. [TABLES 3, 4, and 5.]
Construction loans set
new record
The general level of activity in the real estate
market has subsided somewhat from the rapid
pace which prevailed a year ago. By any other
comparison, however, the current level of activity
in most segments of the market stib1 may be
described as definitely high. This is particularly
true with respect to the volume of home mortgage
loans being made by savings and loan associations.
Wholly as the result of a widespread decline in
the demand for loans to finance the purchase of
Federal Home Loan Bank Review
New mortgage loans distributed by purpose
[Dollar amounts are shown in thousands]
April
1947
Purpose
Refinancing
_ _ -_
R e c o n d i t i o n i n g . . __
Total
March
1947
Percent
change
April
1946
Percent
change
$70, 214
176, 395
26,149
10, 788
30, 090
$61, 543
161, 694
25, 916
9,665
29,403
+14.1
+9.1
+0.9
+11.6
+2.3
$53,202
235, 877
24, 882
6,796
22, 242
+32.0
—25.2
+5.1
+58.7
+35.3
313, 636
288,221
+8.8
342, 999
—8.6
existing homes, the total volume of lending by
these institutions during April was 9 percent less
than in the same month of last year; nonetheless
the estimated $314,000,000 of loans made during
the current month was more than two and onethird times as large as the total for the most active
prewar month.
Reflecting the usual springtime revival in home
building and home buying, lending activity of
savings and loan associations increased 9 percent
from March to April, the largest relative gains
being shown by loans for the construction and
repair of homes. The $70,000,000 of construction
loans made during April was the largest monthly
total on record and exceeded by almost one-third
construction loans made in April 1946.
During the first four months of this year, these
institutions made a total of $1,093,000,000 of
mortgage loans, a figure less than 1 percent above
the comparable January-April period of last year.
In this comparison, loans for the purchase of
homes constituted the only type to show a
decline—down 16 percent. Construction, reconditioning and loans in the miscellaneous category
evidenced gains ranging from 45 to 63 percent.
feVMM»
eoo r
Refinancing loans, which represent about 10 percent of the total, are currently running 8 percent
above last year. [TABLES 6 and 7.]
Mortgase recording volume
reached $941 million
A 10-percent increase in the volume of mortgages of $20,000 or less recorded in all nonfarm
areas during April brought the total to $941
million, the largest monthly volume since the alltime peak reached in October 1946, and 6 percent
greater than in April of last year. All types of
mortgagees shared in this March-April gain, with
insurance companies registering both the largest
month-to-month and year-to-year increases.
Mortgage financing activity continued abnormally high during the early months of 1947—the
total amount of mortgages of $20,000 or less recorded during the first four months being 18 percent above the volume in the same period of 1946,
and 116 percent in excess of the corresponding
1945 figure. In terms of the number of mortgages
recorded, activity during the January-April period
of this year was 4 percent greater than in the same
months last year and 63 percent higher than in
the corresponding period of 1945.
For almost four years both the number and
amount of mortgages recorded in each month have
been greater than in the same month of the preceding year. Compared with the same month of
1945, mortgages recorded in July 1946 represented an increase of 109 percent in dollar volume
and 65 percent in number. Since that time the
margin of increase has narrowed from month to
month. By March of this year, the number of
K {t#&M*$»w*9<ft
ISO]
I
PRIVATE SHARE CAPITAL
BUILDING MATERIALS
All Operating Associations
Wholesale Price Index
(LABOR OEPT.)
500
400
£50
200
(V
eoo
150
PAINT 8
-PAINT M A T E R I A L S — ^ - . . p L U M B l N G
I
.;+"*
CHEATING
ft-
200
100
JO0
*«4$
1046
n i l I I L L L L J I I 1, I l.nLlul 1 I'l Ll.lJ I I 1 I Ll I I I
*$4*
194*
**4*
SOI,,],,,! I I I I,l,,l 1 I I |,..|„,l I I L L . U . I I I.. L.I...L. I 1 I I ,)..,l,„lj„ I ,
Mortgage recordings by type of mortgagee
[Dollar amounts are shown in thousands]
April
1947
T y p e of lender
March
1947
Savings a n d loan associations- $299,690 $270, 724
I n s u r a n c e companies _.
58,912
50, 955
B a n k s , t r u s t companies
248.907 229, 862
44, 890
39, 961
M u t u a l savings b a n k s
166,094 157, 802
Individuals _ _ _ _ _
Others
_ _
_
_ _ 122.527 109, 371
Total
_ _ _ . . . . . _ . 941,020
858, 675
Percent
change
April
1946
Percent
change
+ 1 0 . 7 $315,471
33, 974
+15. 6
+ 8 . 3 213, 878
44,855
+12.3
180,318
+5.3
98, 770
+12.0
-5.0
+73.4
+16.4
+0.1
-7.9
+24.1
887, 266
+6 1
+9.6
mortgages recorded had dropped fractionally under the same month of 1946, although the dollar
volume of activity was still up 12 percent. By
April the margin of increase in aggregate value of
recordings had dropped to 6 percent while the
number of instruments was 4 percent below last
year's total.
The consistency of this trend since the middle
of last year suggests that the peak in financing
activity has been passed and that recording totals
for the full year 1947 may well fall short of the
record high reached last year, certainly in number
of instruments recorded if not in dollar amount.
[TABLES 8 and
9.]
Peak April volume in
Bank advances outstanding
After declining in each of the first three months
of the year, Federal Home Loan Bank advances
outstanding rose during April and at month-end
stood at $245 million, the peak volume ever
registered in that month. This represented an
increase of almost $9 million but was confined to
the Winston-Salem, Indianapolis, Little Rock,
Topeka and San Francisco Districts where the
gains more than offset declining volumes in the
other six regions. I n a 12-month comparison,
outstanding advances had increased $89 million
over April 30, 1946.
Current lending activity by member institutions
was reflected in a volume of new advances made
by the 11 Banks in April which was half again as
large as that of March. Totaling $22 million,
they were only 9 percent less than the all-time
high for that month which was reached in 1946.
All b u t the Boston, Pittsburgh and Topeka Banks
participated in the increase during the reporting
month.
Member deposits totaled $86 million, up $1.4
million during April which brought the cumulative
280
gain for 12 months to $36 million. Total assets of
the 11 Banks—$468 million—were $4 million
greater at the end of the reporting month than in
March and $128 million more than at the close of
April last year. [TABLE 12.]
Insured association
assets up $104 million
The uninterrupted growth which has characterized the operations of institutions insured by the
Federal Savings and Loan Insurance Corporation
was continued in April, combined assets rising
$104,000,000 during the month. This expansion
of 1.4 percent during April increased aggregate
resources of these institutions to $7,638,000,000,
or 18 percent above the total reported 12 months
earlier. A net increase of 9 during the month
boosted the number of associations to 2,517.
The primary factor in the substantial growth
evidenced by these institutions over the years has
been the steady inflow of new savings funds, although an increase in the number of insured associations has played a minor role. During the
first four months of this year the private repurchasable capital accounts of these institutions
increased $345,000,000, a record gain which was
20 percent greater than that recorded during the
same four-month period of 1946. I t is noted,
however, that most of this improvement in the
net inflow of savings funds occurred during the
first two months of this year. During April,
total new investments in insured associations
exceeded withdrawals by $67,000,000, compared
with a spread of $76,000,000 in the same month
of last year. [TABLE 13.]
April gain in share capital
below last year
Data for recent months reflect a leveling off in
the volume of new savings flowing into savings
and loan associations. During the first two
months of this year, the net inflow of share capital
was substantially greater than in the opening
months of 1946. Net receipts of funds in March
were only slightly larger than in the same month
a year ago and in April were 13 percent less than
in the corresponding 1946 period.
New investments during April totaled almost a
quarter of a billion dollars ($249 million) which
Federal Home Loan Bank Review
was slightly above the same 1946 figure. Withdrawals amounted to $168 million—up almost 10
percent over last year. As a result the ratio of
withdrawals to new investments for April was
67.6 percent—fractionally higher than for any
other month to date this year—and 4 points
above the corresponding month of last year.
Despite this current trend, the net savings inflow for the entire period January-April 1947
chalked up a new record for volume when compared with any similar period in preceding years.
The estimated net addition of $81,000,000 to the
share capital accounts of these institutions during
April boosted the net inflow figure for the first
four months of this year to a high of $392,000,000,
which represented an increase of 16 percent over
net receipts during the January-April period of
1946. [Table 14.]
MDIRECTORY
\yijj!* CHANGES
April 1947
Key to changes
* Admission to membership i n Bank System
** Termination of membership i n Bank System
# Federal charter granted
<t> Insurance certificate granted
NEW YORK
NEW
DISTRICT
JERSEY:
Hammonton:
0 H a m m o n t o n Savings and Loan Association, 9 Central Ave.
Morristown:
* * M o r r i s t o w n B u i l d i n g and Loan Association, 21 South St.
WINSTON-SALEM
D I S T R I C T OF
DISTRICT
COLUMBIA:
Washington:
First quarter foreclosures
6 percent above last year
After declining persistently for well over a
decade, the level of foreclosure activity has turned
slightly upward during recent months. True,
the rise in the number of foreclosure actions has
been small and the current level of activity is
still very low, with foreclosures during the first
three months of this year being at an annual rate
of only four per county; however, it would seem
logical to attach some significance to the fact that
the low point in the foreclosure curve coincided
very closely in time with the peak in real estate
prices—mid-1946.
I t was particularly true during the war years
that the upward trend in incomes and real estate
prices served to reduce to a very low level the
occasions for foreclosure. To the extent that the
current downward trend in the prices of existing
homes, which has become evident in many areas,
continues and becomes more widespread, the
number of foreclosure actions may be expected to
rise. During the first quarter of this year, there
were approximately 3,300 nonfarm real estate
foreclosures, about 6 percent more than in the
same period of last year. Changes in this comparison were by no means uniform throughout
the country. Increases up to 75 percent were
reported in 8 of the 11 Federal Home Loan Bank
Districts. Declines in the remaining Districts
ranged up to 28 percent. [Table 15.]
June 1947
#0Jefferson Federal Savings and Loan Association, 1631 K St., N W .
GEORGIA:
Atlanta:
^ A t l a n t a M u t u a l Building, Loan and Savings Association, 186 A u b u r n
Ave., N . E.
NORTH
CAROLINA:
Lexington:
0Lexington Perpetual B u i l d i n g and Loan Association, Commercial Bank
of Lexington Building, M a i n St.
INDIANAPOLIS
DISTRICT
INDIANA:
Delphi:
</>People's B u i l d i n g and Loan Association of Delphi, C i t y Clerk's Office,
C i t y Building.
CHICAGO
DISTRICT
ILLINOIS:
Chicago:
* * I I o l l a n d Savings and Loan Association, 90 W . 63rd St.
WISCONSIN:
Kaukauna:
*Kaukauna Savings and Loan Association, 113 W . Second St.
DES M O I N E S
DISTRICT
MISSOURI:
St. Louis:
0American Home Savings and Loan Association, 3542 Gravois Ave.
LITTLE ROCK
DISTRICT
ARKANSAS:
Blytheville:
#Blytheville Federal Savings and Loan Association, 122 W . Ash St.
TEXAS:
San Antonio:
*</>Texas Savings and Loan Association, 123 E. M a r t i n St.
TOPEKA
DISTRICT
COLORADO:
Florence:
0Florence B u i l d i n g and Loan Association, 100 W . M a i n St.
SAN FRANCISCO
DISTRICT
CALIFORNIA:
Lynwood:
* L y n w o o d Savings and Loan Association, 3236 M u l f o r d Ave.
281
Table 1 . — B U I L D I N G A C T I V I T Y — E s t i m a t e d number of new family dwelling units provided
in all urban areas in A p r i l 1947, by Federal Home Loan Bank District and by state
[Source: U . S . Department of Labor]
P r i v a t e residential c o n s t r u c t i o n
P u b l i c residential
construction
T o t a l u r b a n residential
construction
1- a n d 2-family dwellings
Federal H o m e Loan Bank
District and state
Apr.
1947 P
Mar.
1947 »
Apr.
1946 '
Apr.
1947 P
Mar.
1947 '
Apr.
1946
3- a n d more-family dwellings
Apr.
1947 P
Apr.
1946
Mar.
1947
Apr.
1947 P
Mar.
1947
Apr.
1946'
42,474
37, 649
56, 204
38,319
33,063
41,596
4,055
4,095
3,680
2,254
1,602
3,197
2,023
1,599
1,789
231
3
37
1,371
383
151
1,290
108
306
16
264
70
952
44
267
5
494
105
2,233
89
237
39
365
126
1,102
108
306
16
264
67
952
44
267
5
298
99
1,027
89
237
39
18
25
188
3
6
31
1,175
3,243
3,341
4,495
2,317
1,762
3,038
926
1,088
762
1,530
1,713
966
2,375
1,965
2,530
1,174
1,143
810
952
1,007
2,031
356
570
106
982
366
396
1,997
1,237
3,119
1,928
1,100
2,320
69
137
213
586
42
1,593
362
23
1,023
191
43
2,636
440
42
1,524
362
23
886
191
43
1,897
380
69
137
205
8
534
52
6,362
5, 328
618
399
2,051
517
320
713
239
471
6,201
841
217
1,394
860
712
1,150
224
803
5,282
4,747
573
248
1,754
513
316
639
239
465
5.196
775
143
1,276
702
642
715
198
745
980
581
45
151
297
4
4
74
319
753
323
1,812
594
727
917
308
928
28
404
6
58
3, 608
401
2,304
903
2,788
402
1.810
576
4,003
301
3,033
669
3,390
2,809
301
1,853
655
218
8
195
15
381
72
293
16
255
939
393
- 2,109
888
2,407
330
1.517
560
241
14
939
Indianapolis
3,579
1,029
2, 550
3,074
742
2,332
4,228
1,294
2,934
3,465
1,019
2,446
2,911
708
2,203
3,897
1,218
2,679
114
10
104
163
34
129
48
4
44
283
72
211
Chicago
3,430
2, 236
1,194
2,202
1,526
676
3,519
2,126
1,393
2,977
2, 043
934
2,073
1,412
661
2,845
1,841
1,004
453
193
260
129
114
15
114
53
61
560
232
328
Des Moines
Iowa
Minnesota
2,497
462
1,022
752
69
192
1,599
336
568
590
34
71
4,176
1,053
1,734
858
192
339
2,272
459
933
622
69
189
1,523
336
526
556
34
71
3,433
867
1,570
630
183
183
225
76
149
3
89
130
42
34
40
100
9
594
186
124
128
5,890
279
432
395
251
4,533
5,601
267
559
440
228
4,107
7,399
5,779
274
432
392
251
4,430
5,445
253
553
430
228
3,981
5, 516
296
432
357
67
4,364
111
5
3
156
14
6
10
288
12
29
43
103
126
204
1,595
40
1,264
139
20
132
1,591
2,795
853
667
534
741
1,559
318
448
292
501
1,318
226
361
263
468
1,970
602
470
237
661
32
8
4
4
16
141
326
452
296
517
1,459
226
401
271
561
58
21
7
10
20
767
230
190
287
60
8,023
181
5, 731
214
125
101
409
364
824
74
9,418
307
6,791
148
74
190
675
308
874
51
13,072
186
7.979
829
268
370
1,285
673
1,308
174
7,327
163
5,213
199
125
95
365
332
761
74
8,178
148
6,042
148
74
190
547
284
694
51
8,783
138
5,696
349
146
257
768
313
1,025
91
696
18
518
15
1,240
159
749
1,437
2,852
48
1,016
480
108
102
470
332
216
80
Maine
.
.
New Hampshire..
Rhode Island.
....
N e w York . . .
-____.
N e w Jersey
New York
Pittsburgh
. .
-.
_
Winston-Salem
._ ..
D i s t r i c t of C o l u m b i a _ .
Florida
Maryland
__ - .
S o u t h Carolina
Cincinnati
Kentucky
Ohio
_ -
-
___.-__.
- _
South Dakota
Little Rock
Mississippi
Topeka
Kansas
Nebraska
Oklahoma
__
California
Nevada
Oregon
Utah
p Preliminary.
282
_ ._ .
348
J, 725
539
87
4,700
696
120
1,556
590
599
917
280
524
57
203
256
4
28
491
10,928
196
=====
100
74
118
20
49
3
6
44
32
63
100
100
491
695
50
441
592
103
686
66
158
50
386
26
156
40
8
93
128
24
180
1,267
14
11
47
28
67
3
'Revised.
Federal Home Loan Bank Review
Table 2 . — B U I L D I N G ACTIVITY—Estimated number and valuation of new family dwelling units
[Source: U. S. Department of Labor. Dollar amounts are shown in thousands]
N u m b e r of family dwelling u n i t s p r o v i d e d
Permit valuation
P r i v a t e construction
Period
Total
construction
Total
1-family
2-family
P r i v a t e construction
3- a n d
morefamily
Public
Total
construc- construction
tion
Total
1-family
2-family
3- a n d
morefamily
Public
construction
Nonfarm
220, 294
75,159
184, 382
61, 544
153, 648
52,971
9,045
2,850
21, 689
5,723
35, 912
13,615
$639, 939
218, 274
$556, 277
195,172
$21, 476
6,907
$62,186
16,195
$114,430
42,122
265, 900
231,106
206,136
35, 356
3,880
4,749
4,806
5,056
4,096
3,939
4,942
3,498
3,169
286,127
265,465
232, 021
236,105
246,251
224,140
233,066
188,830
139,802
11,141
13,914
9,564
8,593
9,014
9,290
8,590
7,667
4,623
59, 032
14, 710
16,979
18,660
16,017
17, 236
13,833
19,958
15, 927
12,312
93, 346
64,137
60, 552
52, 737
54, 632
55,868
50,981
51, 551
41,296
30, 958
34, 794 1,108,215 1,014, 869
311, 978
13, 262
349,106
296, 358
16, 366
349, 989
260, 245
17, 081
315, 966
260, 715
17,207
316, 230
272, 501
19, 773
337, 352
247, 263
267, 238
8,420
261,614
270, 983
1,708
212, 424
212, 668
122
156, 737
156,812
32
920, 481
70, 738
68, 734
59,819
61, 793
62,027
57,080
58,492
46,478
35,168
8,772
2,721
3,433
2,276
2,105
2,063
2,160
1,999
1,684
1,041
16,198
84,000
85,100
76,900
79,000
81,800
65,500
60. 200
46,600
35, 200
1947: J a n u a r y - A p r i l v
January
February
March r _
April p
217, 200
41,100
44,400
61, 600
70,100
215, 291
39,998
44,400
61,025
69,868
190,979
35,836
39,057
53, 953
62,133
9,168
1,596
1,715
2,577
3,280
15,144
2,566
3,628
4,495
4,455
1,909 1,012,211 1,000,481
1,102
187,194
179, 771
199, 339
199, 339
575
293, 727
291, 463
232
331, 951
329, 908
894, 422
162, 322
178, 046
260, 800
293, 254
38,420
6,667
6,700
11,185
13, 868
10, 782
14, 593
19, 478
22, 786
Urban
1941: J a n u a r y - A p r i l . _
April... . . ..
139, 815
48, 045
116, 310
38, 316
89,103
30, 828
7,430
2,334
19, 777
5,154
23, 505
9,729
501, 256
174, 071
426, 795
143, 877
349,907
122, 928
18, 584
5,928
58, 304
15,021
74, 461
30,194
1946: J a n u a r y - A p r i l ' '
Aprilr
_.
. . . . . .
May
June
July
August
September
October
November
December
181,170
56, 204
58,258
52, 235
52,227
55,407
42, 775
37, 401
28,661
21. 348
150, 686
45, 276
43, 557
38,130
37, 966
38, 660
35,044
36, 067
28, 539
21, 348
126, 695
38, 975
35,825
31, 388
31,170
32. 921
29,335
29,576
23, 747
17,458
8,389
2,621
3,283
2,156
1,980
1,943
2,050
1,899
1,594
971
15, 602
3,680
4.449
4,586
4,816
3,796
3,659
4,592
3,198
2,919
30, 484
10, 928
14,701
14,105
14, 261
16, 747
7, 731
1, 334
122
815,245
254, 579
260,457
228,851
223,182
250,140
190,995
192,148
149, 541
108,130
726, 535
220, 543
211, 540
187, 201
181, 288
193,470
172,678
183,593
149. 297
108,130
635, 307
195, 659
182, 052
160,038
157,833
168, 555
150,795
156,482
126,948
92, 297
34,120
10, 839
13,464
9,204
8,218
8,654
8,960
8,290
7, 397
4,396
57,108
14,045
16,024
17,959
15, 237
16, 261
12,923
18,821
14, 952
11,437
88, 710
34,036
48, 917
41, 650
41,864
56,670
18,317
8,555
244
1947: J a n u a r y - A p r i l p .
January
__ . . .
February
M a r c h »•
April P . .
132,580
130,905
108, 487
8,699
13, 719
1, 675
714, 539
20, 537
22,156
30, 615
35,179
1,496
1,615
2,448
3,140
2,266
3,303
4,095
4, 055
1,084
131,238
138,443
206,511
238, 347
36, 680
6,129
6,375
10, 763
13, 413
62, 630
24, 299
27, 074
37,158
42, 374
704, 726
123,974
138.443
204,925
237, 384
605, 416
25,383
27,074
37, 649
42, 474
9,813
7,264
1941: J a n u a r y - A p r i l
April
_ -
1946: J a n u a r y - A p r i l _
April... .
May
June
July
__
August.September..
October....____
November
December
_
.___
..
$754, 369
260, 396
491
100
108,134
118, 613
176,084
202, 585
67, 639
9.711
13,455
18, 078
21, 386
37,128
53,631
55, 721
55, 515
64,851
19,975
9,369
244
75
11, 730
7,423
2,264
2,043
1, 586
963
' Preliminary.
Table 3 . — B U I L D I N G COSTS—Index of wholesale prices of building materials
[Source: U . S. D e p a r t m e n t of L a b o r .
All b u i l d i n g
materials
Period
Brick a n d
tile
1935-1939=100; converted from 1926 base
Cement
Lumber
Paint and
paint
materials
Plumbing
and
heating
Structural
steel
Other
1945: A p r i l
130.8
121.7
109.1
171.9
130.7
121.4
103.5
112.3
1946: A p r i l . .
May...
June..
July
August
S e p t e m b e r ._
October . . .
November
December
141.3
142.7
145.1
147.5
148.2
149.2
150.5
162.5
176.2
132.0
132.6
133.5
134.8
138.7
140.5
140.7
142.1
143.1
112.4
112.6
112.6
114.1
116.1
116.9
116.9
117.4
117.3
190.9
192.1
196.0
197.4
197.8
198.4
199.2
213.9
253.0
132.8
133.0
133.5
141.3
140.0
143.5
146.6
186.0
191.1
132.4
132.4
139.3
139.3
139.7
140.8
140 8
140.0
151.0
115.9
115.9
115.9
115.9
115.9
115.9
115.9
115.9
115.9
122.0
125.1
128.0
129.7
130.7
131.3
132.5
135.5
142. 5
189.5
195.2
198.2
199.7
145 5
145.6
145.7
148.0
118.9
120.6
123.2
125.1
278.3
293. 5
299.9
304.6
210.5
213.8
216.5
215.8
153.7
153.8
. 154. 9
155.3
123.2
123.2
123. 2
123. 2
150.3
153.0
155.2
155.4
+0.8
+41.3
+ 1.6
+ 12.1
+1.5
+ 11.3
+1.6
+59.6
-0.3
+62.5
+0.3
+17.3
_
_
.
1947: J a n u a r y . . .
February...
March
.
April _ . . .
P e r c e n t change:
A p r i l 1947-March 1947
A p r i l 1947-April 1946
Junz 1947
_
__.
_ _ .
. _..
0.0
+6.3
+0.1
+27.4
283
Table 4 . — B U I L D I N G COSTS—Index of building costs for the standard house
[Source: N a t i o n a l H o u s i n g A g e n c y .
A p r . 1947 M a r . 1947 F e b . 1947 J a n . 1947 D e c . 1946 N o v . 1946 O c t . 1946 Sept. 1946 A u g . 1946 J u l y 1946 J u n e 1946 M a y 1946 A p r . 1946
Element
Material
Labor.__„
A v erage m o n t h of 1935-1939=100]
„._ _
Total
188.8
172.4
185.6
170.2
177.6
168.6
168.2
166.8
158.6
164.8
153.6
163.1
150.3
161.6
148.0
159.3
146.1
157.2
143.7
155.6
141.6
153.8
139.2
152.5
138.0
150.6
182.5
179.6
173.8
167.0
159.8
156.7
154.0
151.8
149.8
147.7
145.7
143.6
142.1
^ Table 5 . — B U I L D I N G COSTS—Index of building costs in representative cities 1
[Source: National Housing Agency. Average month of 1935-1939=100]
1947
1946
1945
1944
1943
1942
1941
May
May
May
May
May
F e d e r a l H o m e L o a n B a n k D i s t r i c t a n d city
Feb.
May
Pittsburgh:
Wilmington, Delaware
___ ._
Philadelphia, Pennsylvania. - .
Pittsburgh, Pennsvlvania
\ C h a r l e s t o n , W e s t Virginia
Cincinnati:
Louisville, K e n t u c k y .
C i n c i n n a t i , Ohio _
Cleveland, Ohio. _
Memphis, Tennessee. _
_
.
Aug.
May
188.6
207.2
184.6
203.3
180.1
199.9
1.77.0
194.3
154.9
187.4
152.7
166.0
143.1
176.5
146.9
157.4
141.6
172.9
140.9
150.5
136.2
151.9
135.2
134.1
134.2
150.0
134.0
132.3
129.2
146.2
133.5
121.3
129.7
137.6
119.5
119.1
111.5
117.5
111.7
110.1
_ __
_-.
- - -_
__
192.0
173.4
191.6
184.1
177.4
170.3
171.6
172.6
152.1
152.2
163.1
154.1
148.9
146.1
159.6
147.3
146.0
141.0
147.0
141.6
136.3
138. 2
147.5
136.9
133. 7
133.9
142.6
134.4
121.2
121.8
128.9
120.1
114.9
113.1
127.1
117.9
106.2
99.4
116.3
108.8
_ __
186.3
204.0
191.9
167.7
185.4
185. 4
201.2
187.1
162.8
167.8
163.1
160.5
156.8
152.2
146.5
154.9
155.2
148.6
148.6
138.1
145.4
150.2
141.7
137.6
135.5
139.0
141.9
139.0
132.0
126.8
137.6
141.2
136. 8
133.9
123.6
134.7
131.3
123.5
117.7
116.2
128.5
128.9
122.7
117.6
116.1
112.7
121.6
117.7
106.8
107.6
_.
. _
_ __
.
..._..
.__
.
Nov.
Little Rock:
Little Rock, Arkansas
N e w Orleans, L o u i s i a n a
._
J a c k s o n , Mississippi
___...
A l b u r q u e r q u e , N e w Mexico _ . .
Houston, Texas
..
_
-
For complete explanation of these data, see 1947 Statistical Supplement to REVIEW.
Table 6 . — M O R T G A G E LENDING—Estimated volume of new home mortgage loans by all
savings and loan associations, by purpose and class of association
[Thousands of dollars]
P u r p o s e of loans
Class of association
Period
1945.
_
April
- _
-
_.„
Januarv-April
April
___
May
June__
July.-..
August
September
October
November...
December...
Home purchase
Refinancing
$180,550
$1,357,555
$196,011
23, 800
January-April.
1946
Construction
_ .
_
.
_._ __
„_„
_
_
_
_ _ _ _ _ _
__
373, 626
57, 413
Reconditioning
$40,736
9,372
L o a n s for
all other
purposes
$137,826
39, 334
Total
loans
Federals
$1,912,678
503, 545
$911,671
State
members
$836,874
237,144
221, 670
Nonmembers
$164,133
44, 731
9,541
113, 684
16, 800
2,951
10, 778
153, 754
71, 375
67, 955
14, 424
615,542
2,356,630
270,235
80, 563
261,522
3,584,492
1,810,374
1, 511, 507
262,611
160, 266
53, 202
62,189
56, 297
59,708
59,377
55,354
60,931
51,187
50,233
738, 433
235,877
243,458
218, 575
216,369
211,804
198,842
207,139
170,162
151,848
90, 299
24,882
24,451
22,402
21,388
22,032
21,546
24,376
21,625
22,116
21,014
6,796
6,954
6,625
7,327
8,481
8,027
9,061
7,034
6,040
75, 511
22, 242
24,246
22,098
21, 256
22,765
26,022
24, 692
21,468
23,464
1,085, 523
342,999
361, 298
325,997
326,048
324,459
309,791
326,199
271,476
253,701
551, 501
174,468
186, 282
107, 552
165,031
165,812
154,105
165,742
131,607
122,742
456, 467
143,114
150,161
136, 296
136,966
134,624
133,758
136,660
116,780
109,795
77, 555
25,417
24,855
22,149
24,051
24,023
21,928
23,797
23,089
21,164
235.625
616, 761
97,193
34, 339
109, 218
1, 093,136
527, 755
472,056
93,325
145,
133,
161,
176,
22, 599
22, 529
25,916
26,149
6,795
7,091
9,665
10, 788
24, 204
25, 521
29, 403
30,090
250,016
241, 263
288, 221
313,636
123,827
115, 503
139,300
149,125
106,358
107,019
123, 222
135,457
19,831
18, 741
25, 699
29, 054
1947
January
February
March
April
284
_"_.__
_ __
__
. __
_ __
. . .
51,145
52,723
61, 543
70, 214
273
399
694
395
Federal Home Loan Bank Review
Table 7.—LENDING—Estimated volume of
new loans by savings and loan associations
J Table
8.—RECORDINGS—Estimated nonfarm mortgage recordings, $20,000 and under
APKIL 1947
[Dollar amounts are shown in thousands]
[Thousands of dollars]
Federal Home
L o a n B a n k District a n d class of
association
UNITED
STATES.._
Federal
State m e m b e r . . .
Nonmember
Boston
_. _
Federal
State member . . .
Nonmember
New York
Federal..
State m e m b e r . . .
Nonmember
Pittsburgh
C u m u l a t i v e new loans
(4 m o n t h s )
N e w loans
April
1947
March
1947
April
1946
1947
1946
S313, 636 $288,221 $342,999 $1,093,136 $1,085,523
149,125 139, 300| 174, 4681
135,457 123, 222 143,114
29, 054 25,699 25, 417
21,672
Percent
change
551, 5011
456,467
77,555
-4.3
+3.4
+20.3
23,098
75, 659
64, 299
+17. 7
6, 6871 10,231
29, 5671
28, 910
5, 822
-14.2
+11.1
+63.1
7,201
11,846
2, 625
10,981
2, 680
10, 866
2,001
25, 374
40, 792
9,493
28, 729
23, 664
35, 522
97, 582;
102, 721
-5.0
10,199
13, 204
5,326
8,214
10,791
4, 659
14, 7231
14,901
5,898
36. 358
45,011
16, 213
40, 952
45, 798
15,971
-11.2
-1.7
+1.5
._
20, 299
19,653
27, 037
74, 505
83,478
-10.7
Federal
State m e m b e r . . .
Nonmember
9,263
6,818
4, 218
9,493|
6.321
3, 839
14, 269
8, 326
4, 442
35,198
24. 537
14, 770
43, 270
25,551
14,657
—18.7
-4.0
+0.8
48,740
45, 256
46, 782
174, 095
150,991
+15. 3
25, 929
17,180
5,631
25,177l 27,104
15, 4001 16, 302
4,679
3,376
91, 003
66,316
16, 776
85, 019
55, 639
10,333
+7.0
+19.2
+62.4
Winston-Salem
Federal .
S t a t e m e m b e r . _.
Nonmember
50, 260
45,357
55,815
167, 270
177, 006
—5.5
Federal _ _ J 22,816
S t a t e m e m b e r . . . 24, 563
Nonmember
2,881
19, 807
22, 863
2,687
25,422
27,457!
2,936
77,192
80, 704
9, 374
80, 747
88,090
8,169
-4.4
-8.4
+14.8
17,370
15, 895
21, 566
62, 655
66, 651
-6.0
9,310
7.242
818
8,776
6,487
632
12, 334
8,782
450
34,185
25, 877
2,593
37, 648
27, 259
1,744
-9.2
-5.1
+48.7
Cincinnati -
..
Indianapolis
Federal
State member
Nonmember
Chicago
-_ _
Federal State member
Nonmember
2S, 323
36, 028
105, 445
112, 069
13, 405
17,165
1, 761
12, 358
14, 529
1,436
16, 964
17, 546
1,518
45, 207
54, 770
5,468
50, 363
56,148
5, 558
-10.2
-2.5
-1.6
32, 331
-5.9
17,263
15,319
21,190
57, 789
65, 740
-12.1
Federal .
_
S t a t e m e m b e r . _.
Nonmember _
9,448
5, 336
2,479
8, 252
5,003
2,064
12, 222
6,816
2,152
30, 766
19,190
7,833
36. 256
22, 344
7,140
—15.1
-14.1
+9.7
Little R o c k . . . . . . . .
16, 277
14, 717
17,081
58, 389
57, 843
+0.9
Federal .
State m e m b e r . - .
Nonmember
7,465
8,628
184
6,387
8,163
167
8,197
8,630
254
25, 786
31, 905
698
29,159
28,080
604
-11.6
+13.6
+15. 6
13, 852
13, 984
16, 262
50, 438
57, 781
-12.7
7,388
4,036
2,428
7,970
3,825
2,189
8, 882
5,301
2,079
29,042
13,550
7,846
32, 866
18, 377
6, 538
-11.6
-26. 3
+20.0
46, 843
45, 705
42, 618
169,309
146, 944
+15.2
26, 701
19, 439
703
26,179
18, 859
667
24,120
18,187
311
97, 644
69, 404
2,261
85, 654
60, 271
1,019
+14.0
+15. 2
+121.9
Des Moines
Topeka ..
Federal _
State m e m b e r . . .
Nonmember
San Francisco
Federal...
State m e m b e r . . .
Nonmember
June 1947
SavInsur- B a n k s
ings
and
and
ance
trust
loan
comcomasso- p a n i e s panies
ciations
Mutual
savings
banks
Individuals
Other
mortgages
Total
+0.7
527, 755
472,056
93, 325
20, 348
Federal H o m e
L o a n B a n k District a n d s t a t e
UNITED STATES..
$299, 690 $58, 912 $248, 907 $44, 890 $166, 094 $122, 527 $941,020
23, 674
3, 394
762
16, 560
1,319
956
52
287
571
2,083
304
24
New York
N e w Jersey
New York _.. .
22, 584
5, 929
16, 655
3, 012
1, 200
1,812
Pittsburgh
23, 927 2, 816
355
157
18, 722 2,293
1, 850|
366
Connecticut....
Maine..
. .
Massachusetts..
New H a m p shire
Rhode Island..
Vermont
Delaware
.
Pennsylvania-.
W e s t Virginia. _
9, 948 21, 578
3,417 4,129
456 1,151
4,156 13, 962
8, 227
2, 554
466
3, 664
4,441
1, 389
84
2, 342
69,187
15, 839
2,971
40, 971
957
987
392
606
687
62
523
41
2,609
5,640
1,157
17, 304 17, 252
5,517 1, 520j
11,787 15, 732
20, 732
5, 548
15,184
8,118
3, 260
4, 858
89,002
22, 974
66, 028
1, 383
128
1, 255
9, 284
6, 724
349
8, 002
933
116
6,333
275
60, 845
1,386
53,513
5,946
770
12,189
1,168
85, 504
6,231
413
1, 336
170
19,711
281
16, 908
2, 522
2501
W i n s t o n - S a l e m _.
A l a b a m a . . . ._
D i s t r i c t of Columbia...__ __
Florida
._
G e o r g i a . ._ . .
Maryland
North Carolina
S o u t h Carolina.
Virginia
...
27, 914
1, 482
7, 568
12,027
1, 005
1,313
25, 006
1, 263
3,791
6,168
3, 210
7,376
560
3,716
150
535
1,469
1, 669
1,991
2, 684
2, 171
12, 039
1,893
2, 2841
2, 548
637
2, 732
800
255
547
901
7751
1, 225
Cincinnati
Kentucky
Ohio
Tennessee
56,611
5,158
49, 632
1,821
6, 027
693
3, 912
1, 422
28,101
2,021
22, 811
3,269
1, 333
8, 944
1, 333
573
7,149
1,222
Indianapolis.- .
Indiana. .. . . .
18, 610
11, 317
7,293
6, 240 21,143
1, 8801 8,288
4, 360 12, 855
33
33
5.810
2,101
3,709
9,844
1,860
7,984
61. 680
25, 479
36, 201
Chicago
Illinois
Wisconsin
34, 306
2, 655'
1,606
1,049
15, 317
9,629
5,688
82
27, 340
6,966
11, 297
6,943
4, 354
14, 791
13,279
1,512
78, 448
58, 797
19, 651
Des Moines
Iowa
Minnesota. _
Missouri... . . .
North DakotaSouth Dakota-
19,194
4, 372
7,575
6,134
759
354
4,100
564
1,022
2,378
55
81
15, 406
4,440
4,775
5, 637
281
273
792
8,227
1,291
2,439
4,126
205
166
8,345
1,009
3,297
3, 937
92
10
56, 064
11,676
19, 900
22, 212
1,392
884
Little R o c k . . .-Arkansas
_ _
Louisiana
Mississippi
New Mexico...
Texas
. .
15,468
1,250
5,092
917
273
7,936
9,074
1,069
953
696
64
6, 292
6,198
1,030
529
787
241
3,611
12, 928
883
2,888
721
448
7,988
13,105
129
1,318
435
112
11,111
56, 773
4,361
10, 780
3,556
1,138
36, 938
Topeka
14, 327
2,585
4,738
1,706
5,298
2,572
7,377
1,839
2,248
1,126
2,164
8,128
4,121
1,162
706
2,139
8,076
162
742
906
762
40,480
10, 385
10, 815
4,709
14, 571
46, 045 13, 529
1, 999
383
30,382 10, 048
1,158
117
672
70
110
336
3, 217 1,005
330
1, 055
6, 693 1,402
64
533
96, 375
2,207
80, 831
974
702
512
2,514
1,895
6,253
487
Colorado
...
Kansas
. .
N e b r a s k a ______
Oklahoma
S a n Francisco
Arizona. _ _ .
California___
.
I d a h o __ _ . . .
Montana
.
Nevada
Oregon
_
Utah
Washington
W y o m i n g . _____
770
1, 226
836
3, 294
82
792
1,667
325
1,342
1, 292! 9,283
4, 798 28, 390
9,421
2,177
571 14, 220
867
634
682
6,342
3,137
8,480
11, 475 112,491
8,773
328
4,816 89, 653
6,331 14, 065
1,678
1,925
265
4,208
47, 511 25, 419 230, 546
2,587
310
7,486
36, 655 17,106 175,022
679
160
3,088
650
2,111
17
642
1,713
113
2, 939
2,334 12,334
399 i
4, 012
333
4, 984 23, 229
2, 555
62
405
1, 551
285
Table 9.—RECORDINGS—Estimated volume of nonfarm mortgages, $20,000 and under
[Dollar a m o u n t s are s h o w n in t h o u s a n d s ]
Savings a n d loan
associations
Insurance
companies
Banks and trust
companies
M u t u a l savings
banks
Individuals
O t h e r mortagees
All mortgagees
Period
Total
Percent
Total
Total
Percent
Percent
Total
Total
Percent
Percent
$3,421,027
32.9
$474,852
4.5 $2,685,061
25.8
$547,977
5.3 $2,023,015
19.4
$1,257,899
1,030, 920
315,471
333,192
308, 226
314,779
310, 723
_. 290, 547
312,055
266,108
254, 477
35.5
35.6
34.6
33.6
32.1
31.1
31.3
31.0
30.6
30.4
118,092
33, 974
38,862
39,890
48,101
46, 527
47,424
48,429
42,979
44, 548
4.0
3.8
4.0
4.3
4.9
4.7
5.1
4.8
4.9
5.3
674, 550
213,878
241,330
245, 624
263. 669
273,093
248, 406
275,769
230,588
232, 032
23.2
24.1
25.0
26.8
26.9
27.3
26.7
27.4
26.5
27.8
128,143
44,855
51,851
50,123
58,020
53,616
51, 978
57,971
49, 334
46,941
4.4
5.1
5.4
5.5
5.9
5.4
5.6
5.8
5.7,
5.6
635, 382
180,318
187,311
168,889
178,128
184,005
173,310
184,511
163,866
147,613
21.9
20.3
19.4
18.4
18.1
18.4
18.7
18.3
18.9
17.6
319,032
98,770
111,892
104,662
118, 490
131, 257
117,213
127, 946
116,614
110,793
1, 051, 624
246,114
235,096
270, 724
299, 690
30.8
29.0
30.5
31.5
31.8
208, 630
52,155
46,608
50, 955
58, 912
6.1
6.2
6.0
5.9
6.3
920. 352
230, 492
211,091
229, 862
248, 907
26.9
27.2
27.4
26.8
26.5
164, 767
44, 761
35,155
39. 961
44, 890
4.8
5.3
4.6
4.7
4.8
628,073
160, 297
143,880
157,802
166, 094
18.4
18.9
18.7
18.4
17.6
443, 387
113,224
98, 265
109, 371
122, 527
1946
January-April
April
M a y _. _
June
July
August _
September
October
November
December - _
Total
Percent
Total
Percent
12.1 $10,409,831
100.0
11.0
11.1
11.6
11.4
12.1
13.1
12.6
12.7
13.4
13.3
2,906,119
887,266
964, 438
917,414
981,187
999, 221
928,878
1,006,681
869, 489
836, 404
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
13.0
13.4
12.8
12.7
13.0
3, 416, 833
847,043
770,095
858, 675
941, 020
100.0
100.0
100.0
100.0
100.0
1947
Januarv-April
January
February
March
April-
_
. ._
Table 1 0 . — G l L E N D I N G — H o m e loans
[Source: V e t e r a n s A d m i n i s t r a t i o n .
Cumulative through
1946: M a y 31
J u n e 28
Julv26
A u g . 30 __
Sept. 27
O c t . 25
N o v . 25
D e c . 25
Table 1 1 . — F H A — H o m e mortgages insured
D c l l a r a m o u n t s are s h o w n in t h o u s a n d s !
[Source: F e d e r a l H o u s i n g A d m i n .
L o a n s processed for
L o a n s reported
N o . of
closing
closed and disbursed
applications a n d
reports
Number Amount Number Amount
__
_._.
1947: J a n . 25
M a r . 25
A p r . 25
M a y 25
209,334
257, 986
305, 503
371,142
420, 960
473,784
524, 428
570, 883
373, 932
426, 699
478,049
523, 067
614,323
655, 962
696, 930
747,759
793,822
565,185
604, 934
643,367
691,583
736, 687
$1,987,982
2,314,515
2, 635,372
2,911,521
133,972
165,737
200, 231
257,471
303, 353
356, 804
409,112
455. 293
$634, 812
804,907
994, 778
1,316,554
1,584,444
1,906,743
2.217,347
2, 494, 547
3,173, 509
3,414,126
3,641,748
3,925,987
4, 207, 035
502, 510
546, 466
585, 441
634,965
676, 781
2, 782,379
3.051,728
3, 287, 663
3, 584, 083
3, 834. 530
P r e m i u m p a y i n g ; t h o u s a n d s of dollars]
T i t l e V I (603)
T i t l e I I (203)
Period
New
Existing
New
Existing
1946: April
May
June
.
July
August
September
October __
November
December
$3, 570
4,406
5, 573
6,374
5,668
5,279
6, 576
5,354
6,631
$24,160
26,389
31, 551
26, 956
20,831
20,713
26, 553
20,175
21, 390
$6, 870
5,988
3,678
4,020
2, 959
2,084
2,475
2,679
5,426
$983
3,712
1,012
572
960
613
1,335
1.164
2,600
1947: January_.__
February.
March
April
7,071
5, 691
5,367
5,702
22, 805
21,311
22, 735
27, 200
5, 585
7,698
9,654
14, 537
2,356
1 935
2,861
3,830
Table 1 2 . — F H L BANKS—Lending operations and principal assets and liabilities
[ T h o u s a n d s of dollars]
L e n d i n g operations,
April 1947
P r i n c i p a l assets, April 30, 1947
C a p i t a l a n d principal liabilities,
A p r i l 30, 1947
Federal H o m e Loan B a n k
Advances
Boston
_.
N e w Y o r k _____
Pittsburgh
Winston-Salem _
C i n c i n n a t i - - __
Indianapolis
Chicago
Des Moines
Little Rock _ _
Topeka
San Francisco
_.
_
__ . . _
$497
1,340
1,406
5,176
1,454
1,652
2,021
907
1,790
1,221
4,891
__
__
_____ _
_ _ ._ __
______
_ _. _
__ __ __ .
. . . _ __
__
..
Repayments
Advances
outstanding
$523
1,350
1,551
1,593
1,663
707
3,153
1,228
464
340
956
$8, 092
18, 260
26, 924
36, 360
17, 654
22, 496
35, 341
22, 230
15,209
13, 221
29, 504
Cash i
Governm e n t securities
Capital2
Consolid a t e d debentures
Member
deposits
Total
assets
April 30,
19471
$3,838
778
2,916
2,624
1,727
1,033
1,739
960
970
1,331
1,683
$20,359
38,628
8,938
4,216
38,840
16, 322
20,098
15, 571
8,215
9,379
21, 325
$21,995
31,017
20, 602
21, 966
30, 019
16,120
26,819
16, 444
13, 725
13,076
28, 736
$9,000
17,000
15,000
12, 000
16, 000
22, 500
15,000
10,000
9,500
14, 000
$1,410
26,783
1,306
4,863
16,421
7,838
7,973
7,403
764
1,423
9,941
$32, 411
57,828
38,924
43, 354
58,484
39,985
57, 335
38,875
24, 496
24,013
52, 695
A p r i l 1947 ( C o m b i n e d total)
22, 355
13, 528
245, 291
19, 589
201, 891
240, 519
140, 000
86,125
468,400
M a r c h i_>47__
. _._ ____ . . . ._ __
14,834
20, 439
236, 464
28,147
198,306
238,447
140,000
84,722
464,110
.___
24,462
21,858
155, 836
21, 303
162, 216
223,078
67, 000
50, 351
340, 569
A p r i l 1946
i I n c l u d e s i n t e r b a n k deposits.
!
C a p i t a l stock, s u r p l u s , a n d u n d i v i d e d profits.
286
Federal Home Loan Bank Review
Table 1 3 . — I N S U R E D A S S O C I A T I O N S — P r o g r e s s of institutions insured by the FSLIC
[Dollar a m o u n t s are s h o w n in t h o u s a n d s ]
Operations
Number
of associations
P e r i o d a n d class
of association
ALL
N e t first
mortgages
held
Total
assets
GovernP r i v a t e rement bond purchasable
holdings
capital
Cash
Government
share
capital
Federal
Home
Loan
New
B a n k admortgage
vances
loans
va7e?nH
vest
mints
P r i v a t e
r
ur
^ '
chases
Repurchase
ratio
INSURED
1946: April
May
June
July
August
September
October
November
December..
1947: J a n u a r y
February
March.
April
_
„.
2,486
2,488
2,490
2,493
2,495
2,497
2,496
2,495
2,496
6,462,376
6,592,552
6,743,121
6,810,626
6,916,472
7,012, 249
7,114,023
7,183,179
7, 318,604
2,500
2,505
2,508
2,517
7,362, 541
7, 453, 733
7, 533, 403
7, 637, 704
1,469
1,471
1,472
1,473
1,473
1,474
1,472
1,471
1,471
4,118,076
4, 204,057
4,311,747
4, 344, 421
4, 411, 389
4, 469,937
4, 537,135
4, 580,447
4,671,503
1,471
1,473
1,472
1,474
4,684,549
4, 742,608
4. 791, 976
4, 857, 242
1,017
1,017
1,018
1,020
1,022
1,023
1,024
1,024
1,025
2, 344, 300
2, 388, 495
2, 431, 374
2, 466, 205
2,505, 083
2, 542, 312
2, 576,888
2,602, 732
2, 647,101
1,029
1,032
1, 036
1,043
2, 677,992
2, 711,125
2, 741, 427
2, 780, 462
4,519,248
347,362
1,641,628
4,922, 400
289,903
1, 566,979
5, 237,560
376,872
1,458, 741
5, 506,154
348, 078
1, 436, 346
2,886, 641
221,431
1,067,943
3,151,813
180,457
1,004, 260
3,357, 582
243, 886
921, 421
3, 525, 984
219, 249
904, 928
1, 632, 607
125,931
573, 685
1, 770, 587
109, 446
562, 719
1, 879, 978
132, 986
537,320
1, 980,170
128,829
531, 418
5, 507,923
5, 589, 795
5,724,893
5, 798,380
5,869, 338
5,922, 507
5, 995, 695
6,056, 207
6,193,342
19,373
19,358
19, 358
16,832
16, 306
16, 306
16,305
16, 305
16,305
145,744
159, 546
189,908
187, 401
196, 495
216,573
233,503
238,907
272,904
268,706
285,613
257,175
254,858
255,273
240,708
254,626
205,776
193,814
198,896
196,973
219,825
296, 710
207,782
185, 754
202,178
172,886
223,646
123,265
116,370
86,017
224,686
140,849
135,114
129, 272
112,127
87,736
62.0
59.1
39.1
75.7
67.8
72.7
63.9
64.9
39.2
6, 317,309
6,391, 613
6,462, 732
6, 539, 723
13, 207
13,166
13,166
13,166
230,766
221, 336
216,118
224.136
191,982
182, 519
218,297
236,084
359,366
196, 576
207, 440
200, 722
238,327
126,006
138, 765
133, 729
66.3
64.1
66.9
66.6
3, 532,406
3, 586, 501
3,677,643
3,716, 445
3,758,827
3,790,634
3,839,002
3,880,142
3,970, 772
14, 539
14, 539
14, 539
12, 380
11,956
11,956
11,956
11,956
11,956
106, 599
115, 009
137, 605
134,376
142, 018
153,096
164,305
165,077
190, 579
174, 468
186, 282
167, 552
165,031
165,812
154,105
165, 742
131, 607
122, 742
132,092
130, 551
144, 470
194,872
136,777
121,872
132,882
113,504
148,106
81, 241
78,013
55, 038
156, 734
95, 328
90,296
84,518
71,952
55,346
61.5
59.8
38.1
80.4
69.7
74.1
63.6
63.4
37.4
4, 042,186
4, 008, 078
4,132, 978
4, 183, 258
9,622
9,622
9,622
9,622
159, 585
152, 534
148, 721
153,112
123,827
115, 503
139, 300
149,125
235,491
130,933
137,018
133, 341
164,607
84, 834
92, 300
86, 993
69.9
64.8
67.4
65.2
1, 975, 517
2,003, 294
2, 047, 250
2,081,935
2,110, 511
2,131,873
2,156,693
2,176,065
2, 222, 570
4,834
4,819
4,819
4,452
4,350
4,350
4,349
4,349
4,349
39,145
44,537
52, 303
53,025
54,477
63, 477
69,198
73,830
82, 325
94, 238
99,331
89,623
89,827
89, 461
86,603
88,884
74,169
71,072
66,804
66,422
75, 355
101,838
71,005
63,882
69, 296
59,382
75, 540
42,024
38, 357
30,979
67, 952
45, 521
44,818
44, 754
40,175
32, 390
62.9
57.7
41.1
66 7
64.1
70.2
64.6
67 7
42.9
2, 275,123
2, 303, 535
2, 329, 754
2, 356, 465
3,585
3,544
3, 544
3, 544
71,181
68, 802
67, 397
71, 024
68,155
67, 016
78, 997
86, 959
123,875
65, 643
70, 422
67, 381
73, 720
41,172
46, 465
46, 736
59.5
62 7
66.0
69.4
FEDERAL
1946: April
May
June
July
August
September.
October
....
D e c e m b e r . . . . __„_
1947: J a n u a r y
February
March
A pril
.
.
STATE
1946: April
May
J u n e ._
July
August
September
October
December
....
1947: J a n u a r y
F e b r u a r y . . ______
March
Table 1 4 . — S A V I N G S - -Savings and loan share investments and repurchases
[Dollar a m o u n t s are s h o w n in t h o u s a n d s )
All associations
Period
New
investments
Repurchases
Net
inflow
I n s u r e d associations
Repurchase
ratio
$3,143,821 $2,004,878 $1,138,943
1946.
January-April
April
May
June
July
August
September
October
November
December..
1,046, 870
709, 357
337, 513
248,077
246, 713
269, 694
356, 936
255, 254
230,023
250, 516
215,171
272, 644
155, 455
147, 675
112,144
271, 568
176,823
169, 863
162,356
142, 445
112, 647
92, 622
99, 038
157, 550
85, 368
78, 431
60,160
88,160
72, 726
159, 997
1,165, 957
421,415
239,014
256, 587
248, 941
774, 625
281, 289
154, 552
170,478
168,306
391, 332
140,126
84,462
86,109
80, 635
New
investments
Repurchases
$2,568,992 $1,612,645
Net
inflow
U n i n s u r e d associations
Repurchase
ratio
$956, 347
:3, 238
580, 474
282, 764
67.2
62.7
59.9
41.6
76.1
69.3
73.8
64.8
66.2
41.3
198, 896
196,973
219, 825
296, 710
207, 782
185, 754
202,178
172,886
223, 646
123,265
116,370
86,017
224,686
140,849
135,114
129, 272
112,127
87, 736
75, 631
80,603
133,808
72,024
66,933
50,640
72,906
60, 759
135,910
62.0
59.1
39.1
75.7
67.8
72.7
63.9
64.9
39.2
66.4
66.7
64.7
66.4
67.6
964,104
359,366
196, 576
207, 440
200, 722
638, 827
238,327
126,006
138, 765
133, 729
327, 277
121, 039
70, 570
68, 675
66, 993
66.1
66.3
64.1
66.9
66.6
New
investments
Repurchases
Net
inflow
$574,829
$392,233
$182, 596
183, 632
128, 883
54, 749
70.2
16, 991
18, 435
23, 742
13,344
11,498
9,520
15, 254
11,967
24,087
65.5
62.9
52.4
77.8
75.8
78.5
68.4
71,7
50.8
64, 055
19,087
13,892
17,434
13,642
68.3
69.2
67.3
64.5
71.7
32,190
31,305
26,127
46,882
35,974
34,749
33,084
30, 318
24,911
Repurchase
ratio
1947
January-April
January
February-___
March
April
201, 853
62, 049
42, 438
49.147
48, 219
137, 798
42, 962
28, 546
31, 713
34,577
Table 1 5.—FORECLOSURES—Estimated
nonfarm real estate foreclosures, by
Federal Home Loan Bank District
Table 1 6 . — S A V I N G S — H e l d by institutions
[Thousands of dollars]
Insured
savings and)
loans1
i
E n d of period
Percent
change
1947
Mar.
1947
Feb.
1947
Jan.
1,238
1,002
1,068
Boston
__.
New York
Pittsburgh
Winston-Salem _.
Cincinnati
Indianapolis
Chicago
Des Moines
Little Rock
Topeka
San Francisco-..
52
257
165
116
84
21
49
31
38
97
92
87
293
297
172
69
36
42
34
34
90
1944: M a r c h
3,308
3,117
193
794
707
434
231
91
139
89
120
263
247
54
244
245
146
78
34
48
24
48
76
71
220
734
661
375
272
84
129
124
69
252
197
2, 580, 505
2, 731, 931
2, 912, 911
3,014, 238
1946: M a r c h
June
September
...
December _ _
5,432,080
5, 724,893
5, 922, 507
6,193, 342
3,126,744
3,119,656
3,297, 702
3,378,900
1947: M a r c h .
6,462, 732
..
+6. 1
-12.3
+8.2
+7.0
+15.7
-15.1
+8.3
+7.8
-28.2
+73.9
+4.4
+25.4
_ .
$1,123,056
$358, 966
$207, 571
27, 864
1944: A p r i l
885, 304
375, 093
55, 456
7, 735
1945: April
678,134
328,846
6,439
1,071
510, 598
496, 662
484, 416
470, 553
458, 878
447, 522
435, 748
425, 956
416, 038
262, 752
256, 498
250, 888
244, 905
239, 683
234, 594
229,153
224, 838
220, 425
769
736
685
638
617
606
516
384
315
147
136
127
122
113
103
89
68
54
405, 495
396, 880
387, 795
378, 583
215,917
212, 034
207, 971
203, 829
208
211
165
138
38
42
33
30
_
_
.
...
1947: J a n u a r v
February
._
- March,... _ . . _
April..
__„ _« __ __ . .
1
16,812,524
32, 761, 111
3,472, 421
Private repurchasable capital as reported to the F H L B Administration.
Mutual Savings Banking. All deposits.
F D I C . Total time deposits of individuals, partnerships and corporations.
4
Balance on deposit to credit of depositors, including unclaimed accounts
and accrued interest.
2
3
Table
1 8 - G O V E R N M E N T SHARES—
Investments in member associations 1
H o m e Owners' Loan Corporation
Treasury
1943: A p r i l
_,
31, 504, 915
1
Properties owned
D u e on
property
sold
. __ _
_- _
16,224,971
[Dollar amounts are shown in thousands]
D u e on
original
loans
..
-.
$1, 957,302
4, 538.426
4, 786. 912 $14,378,413 $26,363,106
4,981.869
5, 219, 910 15,332, 202 29,295,108
[Dollar amounts are shown in thousands]
1946: A p r i l
May
.
June.
.
July
August
September,
October
November
Decern ber.
Postal
savings 4
$3, 710,356
1945: M a r c h .
June
September _
December
Table 1 7 . — H O L C — M o r t g a s e loans outstanding on properties on hand
Month
Insured
commercial
banks 3
Cumulative
(3 months)
Foreclosures
Federal Home Loan Bank
District
UNITED STATES..
Mutual
savings
banks2
T y p e of o p e r a t i o n
Book
value
Number l
2
Federals
October 1935-March 1947:
Applications:
Number
. .
A m o u n t . - __
..
Investments:
Number .
_
Amount.
...
.
Repurchases
. _ .
N e t o u t s t a n d i n g investments
_
F i r s t q u a r t e r 1947:
Applications:
Number
. ...
Amount
_ ._
Investments:
N u m b e r . . . . . __
Amount
._ . .
...
Repurchases
_ . _ .
State
members
Federals
Total
1,862
$50, 401
4,710
$213, 701
995
$66, 495
5,705
$280,196
1,831
$49,300
$38, 362
4,243
$178,401
$169, 680
738
$45, 456
$41,913
4,981
$223, 857
$211, 593
$938
$8, 721
$3, 543
$12, 264
$211
$2,122
$806
$2, 928
1
Refers to number of separate investments made.
2
Investments in Federals by the Treasury were made between December
1933 and November 1935.
Includes re-acquisitions of properties previously sold.
Table 19.—FHLBS- -Membership in the Federal Home Loan Bank System
[©ollar amounts are shown in thousands]
1945
March
T y p e of i n s t i t u t i o n
No.
All m e m b e r s
. . .
. . .
_ -_
Savings a n d loan a s s o c i a t i o n s . .
-
.-
.
Insurance companies
288
___..
-
No.
No.
Assets
!
Assets
|
March
No.
Assets
I
$8,847,878;
3, 696
$7,392, 554
7,870,518
3, 657
6, 541, 038
1,465
996
1,196
3, 237.942
1,892,876
1, 410, 220
.
3.697
$10,259, 646
3,698
$10,049, 758
3,699
3,660
9, 200, 282
3,661
8, 990,394
3,660
1.472
1,032
1,156
4,791,976
2,733,812
1,674,494
1,471
1,021
1,169
4, 671, 503
2, 639, 592
1, 679, 299
1,469 ; 4,050.719
1,012 | 2,302.336 i
1,179 j 1,517,463 j
25
641,197
25
641,197
25
591,546
24
510,230
12
418,167
12
418,167
14 j
385,814
15
341,286
.. .
-
Assets
March
- -
Federal
Uninsured state . , _
December
-- -
Federal Home Loan Bank Review
U. S . GOVERNMENT PRSNTING O F F I C E ; 1 9 4 7
FEDERAL
HOME
LOAN
BANK
DISTRICTS
eosto*
••••
BOUNDARIES OF FEDERAL HOME LOAN BANK DISTRICTS
<g>
FEDERAL HOME LOAN BANK CITIES
•
BRANCH CITIES
OFFICERS OF FEDERAL HOME LOAN BANKS
BOSTON
E. H. WEEKS, Vice Chairman; W. H. NEAVES, President; H. N . FAULKNER,
Vice President and Assistant Treasurer; L. E. DONOVAN, Secretary-Treasurer; BEATRICE
E . HOLLAND, Assistant Secretary; PHILIP A. HENDRICK,
INDIANAPOLIS
H. B. WELLS, Chairman; FERMOR S. CANNON, Vice Chairman and Vice
President; FRED T. QREENE, President-Secretary; G. E . OHMART, Vice
President-Treasurer; SYLVIA F. BROWN, Assistant Secretary; CAROLINE F.
WHITE, Assistant Treasurer; HAMMOND, BUSCHMANN & ROLL, Counsel.
Counsel.
NEW YORK
QEOROE MACDONALD, Chairman; FRANCIS V. D . LLOYD, Vice Chairman;
NUGENT FALLON, President; ROBERT Q. CLARKSON, Senior Vice President;
DENTON C. LYON, Vice President and Secretary; HAROLD B. DIFFENDERFER,
Vice President and Treasurer; JOSEPH F. X. O'SULLIVAN, Assistant Secretary
and Office Attorney.
PITTSBURGH
E. T. TRIGG, Chairman; O. S. TIPPETTS, Vice Chairman; RALPH H. RICHARDS, President; G. R. PARKER, Vice President-Secretary; DALE PARK,
Treasurer; WILLATM S. BENDER, Counsel.
WINSTON-SALEM
H. S. H A WORTH, Chairman; E. C. BALTZ, Vice Chairman; 0 . K. LAROQUE,
President-Secretary; Jos. W. HOLT, Vice President-Treasurer; SPRUILL
THORNTON, Counsel.
CINCINNATI]
HOWARD L. BEVIS, Chairman; W. MEGRUE BROCK, Vice Chairman; W. D .
SHULTZ, President; W. E. JULIUS, Vice President-Treasurer; J. W. WHITTAKER, Vice President; E . T. BERRY,
HOLLISTER, Counsel.
Secretary; TAFT,
STETTINIUS &
CHICAGO
C. E. BROUGHTON, Chairman; H. G. ZANDER, JR., Vice Chairman; A. R.
GARDNER, President; J. P. DOMEIER, Vice President and Treasurer; CONSTANCE M. WRIGHT, Secretary; LAURETTA
GERARD M. UNGARO, Counsel,
DES
QUAM,
Assistant Treasurer;
MOINES
ROBERT E. LEE HILL, Chairman; R. J. RICHARDSON, President and Secretary; W. H. LOHMAN, Vice President and TREASURER; A. E. MUELLER,
Assistant Treasurer; J. M. MARTIN, Assistant Secretary; ROBERT H. BUSH,
Counsel.
LITTLE ROCK
B. H. WOOTEN, Chairman; W. P. GULLEY, Vice Chairman; H. D. WALLACE,
President-Secretary; J. C. CONWAY, Vice President; W. F. TARVTN;
Treasurer.
TOPEKA
W M . M. JARDINE, Chairman; HENRY A. BUBB, Vice Chairman; O. A.
STERLING, President and Secretary; R. H. BURTON, Vice President and
Treasurer; JOHN S. DEAN, Counsel.
SAN FRANCISCO
BEN A. PERHAM, Chairman; W M . A. DAVIS, Vice Chairman; GERRIT
VANDER ENDE, President; GUY E. JAQUES, Vice President: IRVING BOGAR-
DUS, Vice President and Treasurer, E. M. JENNESS, Assistant Secretary;
E. E. PEARSON, Assistant Secretary; KATHLEEN MCCLTMENT, Assistant
Secretary; L. F NOLAN, Assistant Treasurer; G. H. MELANDER, Assistant
Treasurer; VERNE DUSENBERY, Counsel.
@FedFRASER