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Vol. 7
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$m*tik
No. 6
FEDERAL
HOME LOAN BANK
REVIEW
MARCH
1941
ISSUED BY
FEDERAL HOME LOAN BANK BOARD
WASHINGTON D . C
Readers of the FEDERAL HOME LOAN BANK
REVIEW will receive with this issue a Statistical
Supplement to the REVIEW. By bringing together
important data on residential construction and
home-financing activities, the Supplement consfitutes the first effort to meet the demand for a
condensed manual which would include current
and historical statistics in these fields. Presented
in a convenient form, it should prove to be ready"
reference material for executives and research
students.
CONTENTS
FEDERAL
HOME
LOAN
FOR
MARCH
1941
ARTICLES
Page
178
D E F E N S E F I N A N C I N G T H R O U G H SAVINGS
Appeal to t h e small saver—Provisions of the "Public Debt Act of
1941"—The experience of 1917-1918—Different conditions of
today.
PROSPECTS
AND R E T R O S P E C T S
I N THE L I G H T OF C E N S U S
RESULTS
.
.
181
.
S u m m a r y of Census results—Effects of our aging population—
More, b u t smaller families—Standstill of urbanization?—37,000,000
dwelling units in t h e United States.
R E P U R C H A S E S OF G O V E R N M E N T I N V E S T M E N T S BY M E M B E R X4SSOCIATIONS .
An instructive record—Execution of t h e Government
Liquidation to d a t e — I n v e s t m e n t s outstanding.
,
188
SUGGESTED RECONDITIONING PRACTICES
BANK
REVIEW
Published Monthly by the
FEDERAL HOME L O A N
BANK BOARD
John H. Fahey, Chairman
T. D. Webb, Vice Chairman
F. W. Catlett
W. H. Husband
F. W. Hancock, Jr,
Extensive i m p r o v e m e n t s — T h e value of decorative reconditioning—
Where reconditioning is not worth while.
MONTHLY SURVEY
Highlights a n d s u m m a r y
193
General business conditions
194
Residential construction
195
Foreclosures
195
Building costs
195
New mortgage-lending activity of savings and loan associations
196
Mortgage recordings
196
Federal Savings a n d Loan System
197
Federal Savings a n d Loan Insurance Corporation
197
Federal Home Loan Bank System
207
STATISTICAL
FEDERAL HOME LOAN
BANK SYSTEM
FEDERAL SAVINGS AND LOAN
ASSOCIATIONS
185
program—
TABLES
New family dwelling units—Building costs—Savings and loan lending—Mortgage
recordings—Total nonfarm foreclosures—HOLC properties—Insured savings
and loan associations—Federal H o m e Loan Bank advances—Government investments in savings and loan associations—Private long-term savings . . 198-206
FEDERAL SAVINGS AND LOAN
INSURANCE CORPORATION
HOME OWNERS' LOAN
CORPORATION
REPORTS
Homes registration for defense workers
Resolution of the Board. r
180
187
Appointment of directors of the Federal H o m e Loan Banks
F r o m t h e m o n t h ' s news
187
191
Directory of member, Federal, and insured institutions added during J a n u a r y February
207
SUBSCRIPTION PRICE OF REVIEW. The FEDERAL HOME LOAN BANK REVIEW is the Board's medium of communication with member
institutions of the Federal Home Loan Bank System and is the only official organ or periodical publication of the Board. The REVIEW
will be sent to all member institutions without charge. To others the annual subscription price, which covers the cost of paper and
printing, is $1. Single copies will be sold at 10 cents. Outside of the United States, Canada, Mexico, and the insular possessions, subscription price is $1.60; single copies, 15 cents. Subscriptions should be sent to and copies ordered from Superintendent of Documents,
Government Printing Office, Washington, D. C.
APPROVED BY THE BUREAU OF THE BUDGET.
296212—41
1
DEFENSE FINANCING THROUGH SAVINGS
The important part which savings will play in the
financing of the national defense program is indicated
by the provisions of the "Public Debt Act of 1941/'
The Act represents the framework for tapping the
thrift resources of the country and will be the basis
of a Nation-wide campaign beginning May 7.
•
W I T H the "Public Debt Act of 1941", which
became effective March 1, the outline of our
financial defense measures has begun to take more
definite shape. The Act not only raises the over-all
limitation on direct Federal obligations to $65,000,000,000 but removes the tax exemption for future
Government issues, including United States savings
bonds sold after March 1. Of greatest interest to
savings and loan associations, however, are.the Act's
provisions for the issuance of modified savings bonds
and certificates because they are designed to tap the
small savings of the average American family for the
purpose of financing the defense program. Although
the sale of large-denomination bonds and notes to
banks, insurance companies, and other institutions
probably will continue to be an important source of
Treasury financing, the Act suggests that increased
emphasis will be placed in the near future on utilizing
the savings of the general public.
to $500, maturing in 7}i years and yielding 3 percent
if held to maturity, and sells war savings stamps in
denominations of 25^.
Methods such as these are motivated not only by
a desire to place the financing of huge Government
expenditures on as broad a basis as possible, but by
other considerations as well. Defense production
generates greatly increased employment, incomes,
and profits, and by appealing to the thrift habits of
consumers it is possible to remove from circulation
a sizable portion of incomes which, if freely spent,
would add to the demand for goods and would tend
to raise prices. Also, the utilization of current
savings is believed to be preferable to unrestricted
sales of Government bonds to commercial banks
because such sales cause heavy increases in bank
deposits with an attendant danger of potential
inflation.
PROVISIONS OF THE " P U B L I C D E B T A C T OF
APPEAL TO THE SMALL SAVER
In fact, such emphasis has been common in all
countries during emergency periods. In World War
I, the United States issued not only billions of dollars
of Liberty Bonds which were for the most part absorbed by financial institutions and larger investors,
but also millions of dollars of Treasury (war) savings
certificates in small denominations, thrift stamps,
and war savings stamps, suited to the small investor.
In the present war England is making great efforts
to direct small savings into war financing. National
savings certificates are being issued in denominations of 15 shillings (approximately $3.00) maturing
to 20 shillings, 6 pence in 10 years and yielding a
3.17-percent cumulative rate of return. Savings
stamps are sold in small denominations so they may
be accumulated for eventual conversion into these
certificates. In addition, small war bonds, bearing
3-percent interest, are issued in multiples of 5
pounds. Similarly, the Canadian Government issues
war savings certificates in denominations from $5
178
1941"
The "Public Debt Act of 1941" does no more than
lay the groundwork for the defense financing to come.
The Act replaces the authority under which the
so-called "baby bonds" had hitherto been sold with
new broad powers vested in the Secretary of the
Treasury. Its provisions give the defense financing
program a great degree of flexibility. For example,
"baby bonds" had been issued solely on a discount
basis, with a maturity of 10 years. The new savings
bonds and savings certificates may be issued in three
types: on an interest-bearing basis, on a discount
basis, and on a combination interest-bearing and
discount basis. As to maturity, the new Act permits a wide range of issues by stipulating only a
maximum of 20 years for savings bonds and 10
years for savings certificates. The Act also removes
the $25 minimum denomination for savings bonds
and the $10,000 maximum which any one person
may purchase during any calendar year. These
matters are now left to the discretion of the Secretary of the Treasury.
Federal Home Loan Bank Review
The Act revives the stamp plans developed in 1917
by authorizing the Secretary of the Treasury to issue
stamps or to "provide any other means to evidence
payments for or on account of the savings bonds and
savings certificates" authorized under the new law.
He may also make provision for the exchange of
savings certificates into savings bonds.
The yield on savings bonds and certificates to be
issued under this Act will be of considerable importance to financial institutions because of the possible
effects upon the existing interest rate structure.
However, the Act itself sets only a ceiling by fixing
the maximum yield which the investor may obtain
at 3 percent per year, compounded semiannually.
This compares with the 2.9-percent yield on "baby
bonds" if held to maturity.
In contrast to the savings certificates floated in
the last war, when a maximum of $4,000,000,000 was
prescribed, the Act imposes no limitation on the
amount of savings bonds or savings certificates
which may be issued—except for the over-all debt
ceiling of $65,000,000,000.
THE
EXPERIENCE OF 1917-1918
How will thrift and home-financing institutions
be affected by the greater reliance on savings in the
defense program? To answer this vexing question,
savings and loan executives are likely to search the
records for precedents of 24 years ago, but the experience of the last war is instructive only if at the
SALES OF U.S. TREASURY (WAR) SAVINGS CERTIFICATES
December 1917 through December 1919
I fliiiiB
M
n r;
M
_J |lill!il|[lllii*J
|
g^aBBWBWBBWWBBHu
I ! ! I—J
Mil I P
Source: Annual Report of the Secretory of the Treasury for the fiscal year 1924
Monthly cash receipts from the sale cf Treasury savings certificates increased
from $10,000,000 in December 1917 to a peak of $211,000,000 in July 1918, fell off
gradually in subsequent months, and ranged from $5,000,000 to $10,000,000 after
spring of 1919. Sales in 1917-1918 aggregated $972,000,000, but were reduced to an
annual total of $160,000,000 in 1919. The sale of these certificates was continued
through October 1924 and yielded another $500,000,000 from 1920 to 1924.
same time the fundamental differences in underlying
conditions are kept in mind.
In order of magnitude the prospective demands
of the Treasury on the country's financial resources,
based on defense appropriations to date, are similar
to the requirements during 1917-1918. In those
years a total of $17,000,000,000 was raised by the
issuance of Liberty Bonds, and another $1,000,000,000 was obtained by the sale of war savings
certificates. However, not all of this was paid for
by real savings as a large portion of the Liberty
Number and assets of savings and loan associations in the United States, and share capital of associations in five selected States, 1914-1920
[Amounts are shown in millions of dollars]
All associations 1
California
Year
Number
1914
1915
1916
1917
1918
1919
1920
1
2
3
Share capital in savings and loan associations 2
PerAssets cent increase
6,616 $1, 358
6,806 1,484
7,072 1,599
7,269 1,769
7,484 1,898
7,788 2,127
8,633 2,534
+9
+8
+ 11
+ 7
+ 12
+ 19
Illinois
Massachusetts
Ohio
Pennsylvania
PerPerPerPerPerAmount cent in- Amount cent in- Amount cent in- Amount cent in- Amount cent increase
crease
crease
crease
crease
$26
27
29
31
33
34
41
+4
+7
+ 10
+4
+4
+ 20
$65
70
74
76
80
85
96
+7
+6
+4
+ 5
+6
+ 13
$140
$91
100
109
118
130
+ 10
+9
+8
+ 10
156
180
199
210
246
3+11
+ 15
+ 10
+6
+ 17
$237
256
278
301
323
357
414
+8
+9
+8
+ 7
+ 10
+ 16
Source: U. S. Savings and Loan League.
Source: Annual reports of State supervisory authorities.
Percent increase over preceding 18-month period.
March 1941
179
Bonds was actually financed by credit expansion
through financial institutions.
For the country as a whole, savings in all types of
financial institutions continued to increase throughout the war and in the immediate post-war period.
I t appears that the general stimulation of business
activity by the war was sufficient to carry the Treasury program as well as normal savings processes.
Total resources of savings and loan associations
mounted steadily although at a somewhat lower
rate during 1918. Combined statements for savings and loan associations in a number of representative States show private capital on the increase
but indicate some slowing down during the period
of actual warfare. Evidently the associations had
little need for larger borrowings. New thrift and
home-financing institutions were formed in substantial numbers.
D I F F E R E N T CONDITIONS OF TODAY
The most striking difference from conditions in the
last war exists in the interest rate structure. Liberty
Bonds were issued at interest rates ranging from 3}£
percent for the first series, floated in June 1917, to
4 percent for the second series, offered in November
of the same year, and 4Y4 percent for the third and
fourth series, issued in May and October 1918,
respectively. The treasury (war) savings certificates yielded for the most part 4 percent. The return
on long-term savings paid by financial institutions
generally was more or less above that level. Today
the whole level of interest rates is lower, and there
have been considerable shifts in rate differentials.
Long-term Treasury bonds during the week endingFebruary 22 yielded 2.12 percent. If the yield on
" b a b y bonds" of 2.9 percent is taken as a standard for
the return to small investors, some types of institutions are now paying interest at rates considerably
lower, while the rate in other types of institutions is
above this standard. War issues of 1917-1918 were
tax exempt. In contrast, the present defense program will be financed through the medium of taxable
securities.
In the savers' evaluation of relative security,
insurance of accounts has introduced a factor unknown in the last war. On the other hand, the
successful operation of the "baby-bond" plan which
has directed resources of more than two million
savers into Treasury coffers undoubtedly has helped
to make the individual small investor more "bondminded."
180
Generally, defense financing by savings may now
serve to absorb first the large amount of unemployed
funds piled up in various segments of our financial
structure. In 1917 when our economy was operating
near capacity, this condition did not exist. Lastly,
as in 1917-1918, increasing employment and incomes may expand the volume of private savings to
such an extent that, at least in the near future, full
support of the defense program will be possible along
with the maintenance of the present pattern of
operations by existing reservoirs of thrift.
Homes Registration for Defense
Workers
•
IN order to muster all of the available housing
facilities in vital defense areas, a Homes Registration Division has been established within the
Division of Defense Housing Coordination, according
to a recent announcement.
A homes registration service was organized during
World War I and helped to house more than 100,000
workers in existing dwellings. Essentially, it is a
local activity. The core of the operation will be a
complete file of both vacant rooms and family
dwelling units broken down by type, location, rent,
and condition. This file will be set up and maintained by local committees and will serve as a central
bureau for the listing of available accommodations.
This registry will cooperate with realtors in referring
applicants for dwelling accommodations to vacant
units.
The registries will furnish information to the
local defense councils and to other appropriate
agencies for proper local action in the development
of every dwelling place that can be made available
either for temporary or for permanent use. They
will also furnish regular reports to the office of the
Defense Housing Coordinator through the Division
of Homes Registration so that necessary action can
be taken to assure the speedy construction of additional dwelling units where new accommodations
are essential.
The Homes Registration Division in Washington
will aid the local programs by providing a manual
for the organization and operation of homes registration offices, by assisting localities in the organization and operation of local offices, by supplying
all basic forms, and by suggesting appropriate
publicity programs.
Federal Home Loan Bank Review
PROSPECTS A N D RETROSPECTS IN THE LIGHT OF
CENSUS RESULTS
Recently released results of the 1940 Census uncover important trends
affecting the demand for homes. The "aging" of our population, a projected increase in marriages during the '40s, changes in the degree of
urbanization, and statistics on the number of existing dwelling units are
findings of great consequence to home-financing institutions.
•
IN T H E S E days of swift changes, brought to
home-financing institutions by the national
emergency, it is well to keep in mind the long-term
factors which at all times have a determining influence on residential real estate, housing, and home
finance. In the long run the basic demand for shelter
will continue to be vitally affected by trends in
population, households, and size of families. The
degree of urbanization and the changing age structure of the Nation will remain decisive elements in
the satisfaction of our housing needs.
SUMMARY OF CENSUS
RESULTS
From this standpoint the continuously broadening
flow of information emanating from the 1940 Census
deserves careful observation by all those concerned
with mortgage finance and housing. Results of the
Decennial Census reveal not only what happened
during the preceding decade but permit, at least in
part, pertinent projections into the future. Also, the
1940 Census has been expanded to include an unprecedented volume of data on dwellings, tenure, mortgage indebtedness, and methods and sources of home
financing—affording a real opportunity for analysis
and practical application of hitherto unknown facts.
Census results to date include the following findings of importance to home-financing institutions: *
(1) For the next 10 years we may expect an increased potential demand for homes as the number
of persons in marriageable ages will be considerably
larger than in the past decade.
(2) The types of housing units required will be
affected by the phenomenon of an "aging populat i o n / ' that is, of a population containing a growing
proportion of older people and a smaller proportion
of younger people.
1
See also the article ''American Cities—Ten Years of Growth and Decline"
in the November 1940 issue, and vacancy data published in the issue of December
1940 (page 76), January 1941 (page 115), and the current issue (page 208)
March 1941
(3) From 1930 to 1940 the number of families in
the United States increased more than twice as fast
as the total population, accompanied by a considerable reduction in the average family size.
(4) The proportion of urban population to total
population, increasing rapidly until 1930, remained
static in the past decade. Continued urbanization
in some areas was offset by de-urbanization in other
regions.
(5) A net addition of over 3,000,000 occupied
dwelling units in urban areas during the past decade*
suggests that the housing supply through new construction was supplemented by the extensive conversion of large dwellings into smaller units—a factorusually neglected in current statistics.
E F F E C T S OF OUR AGING POPULATION ON THE
DEMAND FOR H O M E S
The age structure of our population is conducive
to an increased demand for homes within the '40s.
New marriages have a most important bearing on
PERCENT CHANGE IN POPULATION, BY AGE GROUPS
UNITED STATES, 1940 OVER 1930
Source- Bureau of the Census
Based on preliminary Census results, this chart shows the percentage changes
in the number of persons belonging to the various age groups for the decade from
1930 to 1940. In the latter year, the number of children under 14 years of age was
almost 8 percent below the number in 1930. On the other extreme, the number of
persons in the age group of 65 years and over increased 35 percent during the
decade.
! 31
the housing need, and although they usually are postponed during depressions and accelerated during
prosperous times, marriages in the long run are
largely determined by the number of persons in
marriageable ages. According to preliminary Census
data, the number of persons most likely to marry in
the early years of the present decade—persons in the
age group from 20 to 24 years—numbered 11,560,000
(both sexes) in 1940. This compares with 10,870,000
persons in the same age group in 1930. The number
of persons most likely to marry in the latter part of
the present decade—persons who were 14 to 19
years old in 1940—numbered 14,760,000 as against
13,930,000 in the same age group listed in the preceding Census.
After 1950, however, the aging of our population
will have an adverse effect on the demand for homes
because a progressively smaller number of persons
will reach marriageable ages—a result of the declining birth rate. Children under 14 years of age
numbered 30,700,000 in 1940 against 33,670,000 in
1930.
The gradual aging of our population, due to both
lower birth rates and improving mortality rates,
will undoubtedly have important effects on the types
of living quarters required. Unless the combination
of two families in one household—retired parents
living with their children—becomes more frequent
than it is today, we may expect a rising demand for
small dwelling units to house the older people. The
number of retired persons seeking accommodations
away from the hustle of the city, in areas of favorable
climate and low living costs, will vastly increase.
This in itself will tend to restrict the growth of
cities and to hasten the development of resort areas.
The number of persons of 65 years and over was
8,960,000, or 6.8 percent of the total population, in
1940 against 6,630,000, or 5.4 percent of the total, in
1930. Further age statistics show that the number
of persons approaching retirement age will continue
to grow. The 1940 Census lists almost 26,000,000
persons in the age group of 45 to 64 years compared
with 21,410,000 in 1930. In a more general way, the
aging of the American people is illustrated by the
preceding bar chart which shows the median age of
our population for each Census year from 1890 to
1940.
During the past decade, both the total population and the number of families
increased at a lower rate than during the '20s. However, the trend for families
was more favorable than the population trend, in the United States as a whole
as well as in urban areas.
MORE,
BUT SMALLER
FAMILIES
On April 1, 1940, the number of private households
in the United States was 34,860,000 of which 20,600,000, or 59.1 percent, were in urban areas. 1 During
From 1890 to 1940, the median age of our population has increased from 21.4 to
28,9 years. The greatest relative increase was in the decade from 1930 to 1940.
These figures are preliminary, based on a 5-percent cross-section of the 1940
Census returns.
182
* The Bureau of the Census arrived at this figure by the count of occupied
dwelling units which, according to its definition, represent "the living quarters
occupied by oDe family or household." Consequently the number of private
households in 1940 may be compared roughly with the number of private families
shown in the Census reports for 1930.
Federal Home Loan Bank Review
AVERAGE SIZE OF FAMILY
(PERSONS
PER
FAMILY)
United States 1890-1940
iliii iliii Uiii
IM Mil Ilii
1890
1920
Source: Bureau
our families, this tendency toward smaller households is an important factor to be considered in home
construction and home-financing activities. I t is
one of the reasons why the market for larger singlefamily homes dating from earlier periods is so
narrow today.
4.93
4.34
1930
4.10
1940
3.80
of the Census
From 1890 to 1940, the average number of persons per family declined 23 percent, representing more than one full person. In 1940 the average population
per private family was 3.8 persons as against 4.1 in 1930 and 4.3 in 1920. For
urban families, the drop during the past decades was even more pronounced:
from 4.2 persons in 1920 to 4.0 in 1930 and 3.6 in 1940.
the past decade, the net gain in the number of families was almost 5,000,000 as against over 5,500,000
during the '20s. For the urban areas, however, the
net increase from 1930 to 1940 was only 3,226,000
compared with 4,570,000 in the period from 1920 to
1930. This reflects the slowing down in the migration of families from farms during the past decade
when economic conditions offered no incentive to
move into cities, and the postponement of marriages
in urban areas, due to protracted unemployment.
In a previous article l the R E V I E W emphasized the
fact that our present relatively small population
gains need not be a matter of immediate concern to
home-financing institutions as the number of households—the true indicator of the housing need—is
growing at a much faster rate than the total population. This is confirmed by complete Census data
now available. The number of private households in
the United States increased 16.6 percent during the
past decade against a population gain of only 7.2
percent. In view of the large number of persons
who will reach marriageable ages within the next 10
years, it is only reasonable to expect that the number
of families will continue to grow at a faster rate than
the total population.
However, the average size of family is likely to
decline further. The drop in the average family size,
although by no means a new phenomenon, was
unusually large during the '30s and the decreasing
birth rate forebodes a further reduction. As the size
of houses in demand and the number of rooms normally needed are determined by the typical size of
i "American Cities—Ten Years of Growth and Decline," FEDERAL HOME
LOAN BANK REVIEW, November 1940.
MorcA 1941
STANDSTILL OF URBANIZATION?
For the first time in a hundred years, the '30s
appear to have brought a halt in the progress of
urbanization which had accompanied our great
industrial expansion in the past. From 1820 to
1930 the proportion of urban population to the total
had increased steadily from 7.2 to 56.2 percent. In
the past decade, this proportion was raised to only
56.5 percent—a negligible gain compared with
preceding periods. 2
URBAN POPULATION IN THE UNITED STATES AS A PERCENT OF TOTAL POPULATION
PERCENT
1820-1940
90
80
70
60
^^^^^H
50
40
30
20
10
o
mn in1
1820
1630
1840
1850
Source:- Bureau of the Census
18 60
1870
1880
1
1890
1900
. 1•
1910
1920
III
1930
1940
This chart illustrates the negligible gain in urbanization during the past decade
in contrast to the rapid progress through 1930. The proportion of the urban
population to the total increased from 56.2 to 56.5 percent compared with a rise
from 51.2 to 56.2 percent in the preceding 10-year period.
These national figures are the net result of widely
varying trends in the different regions and States.
I t appears that during the '30s the older and more
heavily urbanized areas have gone through a process
of relative de-urbanization; the proportion of urban
population to the total declined in all New England
States except Maine and Vermont, and in such
States as New York, New Jersey, Pennsylvania,
Ohio, and Michigan. On the other hand the less
heavily urbanized States continued to make considerable progress in urbanization. This reflects in
large measure the industrialization of the South and
2
This small gain may be due in part to the fact that there were large population
increases from 1930 to 1940 in unincorporated communities on the rim of metropolitan areas—in communities which, although urban in character, are not
classified as "urban" by the Bureau of the Census. "Urban population" includes
all incorporated places having 2,500 inhabitants or more.
183
of some of the western States or, as in the case of
North and South Dakota, the migration of families
away from unproductive dust-bowl farms to urban
communities.
Among the Federal Home Loan Bank Districts,
the Winston-Salem, Des Moines, Little Rock, and
Topeka areas registered gains in urbanization. The
Boston, New York, Pittsburgh, Cincinnati, Indianapolis, and Los Angeles Districts showed opposite
trends. In the Chicago and Portland areas the
degree of urbanization remained practically unchanged.
THIRTY-SEVEN M I L L I O N DWELLING U N I T S
IN THE U N I T E D STATES
For the first time the Census counts undertaken
in 1940 included all existing dwelling units, whether
occupied or unoccupied. The following table shows
the principal results of these counts for the country
as a whole, for all urban areas, and for rural territory.
On April 1, 1940, there were 37,300,000 dwelling
units in the United States, of which 21,600,000, or
nearly 58 percent, were in urban places. Vacant
units for sale or rent were equivalent to 4.3 percent
of the total in urban areas.
Number of dwelling units in the United States,
April 1 , 1940
I n u r b a n places
Item
Total
Number
Percent
of total
In rural
territory
37, 336,890
21, 621,985
57.9
15, 714,905
Occupied dwelling u n i t s ___ 34, 861, 625
1, 884,016
V a c a n t , for sale or r e n t .
5.0
P e r c e n t of t o t a L
591,249
Vacant, n o t for sale or r e n t *__
20, 598, 506
923, 235
4.3
100, 244
59.1
49.0
14,263,119
960, 781
6.1
491,005
All dwelling u n i t s
17.0
i Mainly vacant dwelling units (largely seasonal) held for absent households,
together with a few dwelling units occupied by nonresident households.
The R E V I E W does not divulge any secret by stating
that these figures have somewhat baffled statisticians
working in the field of real estate and residential
construction. Comparing the number of existing
occupied dwelling units in urban areas for 1940 with
similar data which give the number of households
for 1930, we find that there was a net addition of
approximately 3,226,000 occupied family units during the past decade. The gross addition undoubtedly
was in excess of this figure as it is estimated that each
year about 50,000 family units in urban areas are
withdrawn from use by demolition, fire, flood,
tornado, or other catastrophes. This would mean
that during the decade about 3,750,000 homes were
184
added to the number of occupied dwelling units in
urban areas. However, total new construction in
these areas during the '30s yielded only 1,700,000
units, according to building permit figures. The
difference of about 2,000,000 units probably is due
to three main factors:
(1) Urban vacancies in 1940 were far lower than
10 years before when the overbuilding of the late
'20s had led to an oversupply of dwellings and when
the beginning depression resulted in considerable
doubling-up. If we estimate conservatively that
the vacancy ratio in 1930 was about 9 percent compared with the Census figure of 4.3 percent in 1940,
this itself would explain an increase in the number of
occupied homes by 800,000 not to be accounted for by
new residential construction activity during the
past decade.
(2) The supply of new dwelling units probably
was supplemented by an unusually large number of
conversions of single-family homes into 2- to 4-family
homes, and by the subdivision of large apartments
into smaller apartments. For the '20s the net
increase in dwelling units by this process averaged
about 50,000 per year. Economic conditions during
the '30s certainly forced many owners into conversion
as the only means of obtaining some income from
their property, and there is good reason to believe
that conversion activity was even greater than during
the '20s—yielding perhaps upward of 600,000 units
for the decade as a whole. Unfortunately there
exist no national statistics on the number of conversions and subdivisions of apartments but local
examples are abundant. 1
(3) The increase in urban dwelling units is also
partly explained by the reclassification of smaller
communities from " r u r a l " to " u r b a n " groups.
This comes about as the population of such communities grows beyond the 2,500 limit which marks the
dividing line between urban and rural places.
Together these three factors may well be responsible for the increase in the number of occupied dwelling units over and above the supply added by new
residential building during the past decade. On the
whole, the Census findings are a reminder that, in
addition to construction data which are currently
available, statistics on vacancies and conversions
are indispensable for a correct gauge of the demand
and supply situation in residential real estate.
1
For example, inventories taken for Denver, Colorado, show that 1,354 of the
7,777 family units added to the net supply from 1930 to 1940 were due to conversions. (University of Denver Reports, November 1940.) In large cities such as
New York and Chicago, conversion activity appears to have been much larger
than in smaller communities.
Fee/era/ Home Loan Bank Review
REPURCHASES OF GOVERNMENT INVESTMENTS
BY SAVINGS AND LOAN ASSOCIATIONS
By the end of February, savings and loan members of the
Federal Home Loan Bank System had repurchased almost
one-fourth of the investments made by the U. S. Treasury
and the Home Owners' Loan Corporation, The extent of
voluntary repurchases ahead of schedule is an indication
of the progress of the savings and loan industry.
•
FOLLOWING upon the dividend date of December 31, 1940, member savings and loan associations repurchased U. S. Treasury investments in
the amount of $3,077,000 and investments of the
HOLC in the amount of $11,809,000. These repurchases brought the balance of Treasury and
HOLC investments outstanding down to $206,238,000 compared with $271,000,000 originally
invested by these two Government bodies in savings
and loan associations.
the equally important task of reviving residential
construction by making additional funds available
to thrift and home-financing institutions. The
Home Owners' Loan Act and subsequent appropriations provided Treasury funds to the extent of
$49,300,000 for investment in Federal savings and
loan associations, the organization of which had
been authorized by the same Act. A later amendment broadened the basis of the program by permitting the Home Owners' Loan Corporation to
invest up to $300,000,000 in the shares of savings
A N INSTRUCTIVE RECORD
The rapid progress in the liquidation of Government investments in thrift and home-financing institutions demonstrates that under a carefully drawn-up
plan and under supervised administration, temporary Government investments in private industry
need not lead necessarily to permanent Government
assistance. In line with the long-term savings and
lending operations of thrift and home-financing institutions, the investment program envisaged a gradual
retirement of the Government funds at the rate of
10 percent per year, after a lapse of five years
following upon each investment. The actual record
to date has exceeded all expectations. The large
volume of private savings received by home-financing
institutions during the past few years has enabled
them to return the Government money at a much
faster rate than was anticipated at the time when
the program was formulated.
In addition to accomplishing its general economic
purpose—the revival of home construction through
increased lending operations of home-financing institutions—the Government investment program was
profitable to the public treasury.
The origin of the program dates back to 1933 when
the Home Owners' Loan Corporation was established
to rescue hundreds of thousands of distressed home
owners. At that time, the Government undertook
March 1941
296212-41-
U.S. TREASURY AND H.O.L.C. INVESTMENTS IN
MEMBER SAVINGS AND LOAN ASSOCIATIONS
STATUS AS OF FEBRUARY 28,1941
U.S. TREASURY
H.O.L.C.
As of February 28,1941, member savings and loan associations had repurchased
24 percent of the gross amounts invested in these associations by the U. S Treasury and the HOLC. The above pie chart represents the total of these investments
and shows the proportion of repurchases and amounts now outstanding.
185
and loan associations which were members of the
Bank System or which were insured by the Federal
Savings and Loan Insurance Corporation. The
Federal Home Loan Bank Board was charged with
the responsibility of carrying out this program.
EXECUTION OF THE INVESTMENT PROGRAM
The accompanying table shows the pace at which
the program of Government investments was executed. The bulk of Treasury investments in
Federals was made in 1934 and 1935, and at the end
of the latter year the funds provided by this source
were exhausted. Investments by the Home Owners'
Loan Corporation were begun in the latter part of
1935 but were concentrated in the years 1936 and
1937. Since then new HOLC investments have
become smaller each year.
By 1938 the flow of private money into active
savings and loan associations reached such proportions that local funds were sufficient to meet the
home-financing needs in most communities, and only
in rare instances did supplemental HOLC investments seem warranted. In the past three years, the
Federal Home Loan Bank Board has restricted new
HOLC investments to special cases, primarily in
connection with reorganizations of individual associations and local rehabilitation projects. At present,
approximately $78,000,000 of the $300,000,000 maximum authorized for HOLC investments in savings
and loan associations is still available.
Gross investments made by the Treasury and the
H O L C in member savings and loan associations
Calendar year
1933
1934
1935
1936
1937_
1938-.
1939__
1940
1941 i
1
Treasury
investments
$18, 000
10, 707, 400
38, 574, 600
H O L C investments
$19,
105,
80,
8,
4,
1,
846,
774,
998,
921,
385,
719,
112,
500
800
270
740
000
400
500
Total
10,
58,
105,
80,
8,
4,
1,
$18,
707,
421,
774,
998,
921,
385,
719,
112,
000
400
100
800
270
740
000
400
500
January and February.
Treasury investments were made in 661 Federal
savings and loan associations, or less than one-half
the number of Federals now in existence. HOLC
investments went to 1,346 Federal and Statechartered associations, or about 35 percent of the
186
present number of savings and loan members of the
Federal Home Loan Bank System.
LIQUIDATION T O D A T E
As was mentioned before, the investment program
provided for the gradual retirement of Government
investments by the associations. Under the terms
of the Home Owners' Loan Act, neither the Treasury
nor the HOLC may request the retirement of their
investments for a period of five years from the date
of the investment, and thereafter requests may be
made at the discretion of the Federal Home Loan
Bank Board, but in no event in an amount exceeding
(in any one year) 10 percent of the total amount
invested in shares of any association by the Treasury
or the HOLC.
Repurchases of Treasury and H O L C investments
by member savings and loan associations
Treasury
Period
1935: 2nd half
1936: 1st half __ 2nd half
1937: 1st half
2nd half
1938: 1st half
2nd half
1939: 1st half
2nd half
1940: 1st half
2nd half
1941: 1st half
1
1
1
1
$27, 500
49, 500
232, 000
807, 300
133, 000
248, 000
749, 500
3, 061, 500
4, 313, 000
5, 541, 600
7, 389, 100
3, 077, 100
HOLC
2
$12,
132,
126,
469,
1, 951,
5, 782,
9, 191,
9, 717,
11, 849,
000
500
500
000
000
000
000
900
250
Total
1,
5,
10,
14,
17,
14,
$27,
49,
232,
819,
265,
374,
218,
012,
095,
732,
107,
926,
500
500
000
300
500
500
500
500
000
600
000
350
1
T h e following a m o u n t s were retired a t t h e request of t h e
Federal H o m e Loan Bank Board in accordance with t h e
H o m e Owners' Loan Act: $56,100 in t h e 2nd half of 1939;
$615,700 in t h e 1st half of 1940; $974,000 in t h e 2nd half of
1940; $1,114,000 in t h e 1st half of 1941.
2
Of this a m o u n t , $1,194,350 was called for retirement by
t h e Federal H o m e Loan B a n k Board in accordance with t h e
H o m e Owners' Loan Act.
Under these terms the first repurchase requests by
the Treasury were due on July 1, 1939/ and the first
call for retirement of HOLC money became effective
January 1, 1941. Long before these dates, however,
numerous associations holding Government investments applied for voluntary repurchases and the
Federal Home Loan Bank Board approved these
requests whenever it found, after review of the
financial condition of the institution, that this was
compatible with sound operating policies. The
1
To permit the receipt of full dividends by the U. S. Treasury and the HOLC,
and as a matter of convenience, repurchases (either voluntary or by request) are
scheduled to follow dividend dates which, in most cases, are June 30 and December 31.
Federal Home Loan Bank Review
table immediately preceding this paragraph shows
the amounts retired, by half-year periods.
Of the total retirements to date, only $3,954,150
was retired at the request of the Federal Home Loan
Bank Board as prescribed by law, and $60,866,100
represented voluntary repurchases. In other words,
voluntary repurchases were about 15 times as large
as retirements by request.
While many associations retiring Government investments have made partial repurchases, a substantial number of institutions have been able
within a few years to retire these investments in full.
At the end of February 1941, the number of Federals
holding Treasury investments was reduced to 345
compared with the 661 associations receiving such
investments, and the number of Federal and Statechartered institutions holding HOLC investments
was down to 1,104 as against 1,346 which had obtained share investments of the Corporation.
INVESTMENTS OUTSTANDING
Due to the large voluntary repurchases in the past
few years, Treasury investments outstanding are
now less than one-half the gross amount originally
invested, while the balance of HOLC investments
has been reduced by about 18 percent of the gross
amount. For both types of Government investments combined, the reduction of the gross amount
invested is almost one-quarter.
Net amounts of Treasury and H O L C investments
outstanding
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Feb.
Date
Treasury
investments
31,
31,
31,
31,
31,
31,
31,
31,
28,
10,
49,
48,
48,
47,
39,
26,
23,
1933__
1934. _
1935__
1936_.
1937..
1938__
1939-_
1940__
1941 __
$18,
725,
272,
991,
050,
053,
678,
748,
670,
000
400
500
000
700
200
700
000
900
HOLC
investments
$19, 846, 500
125, 621, 300
206, 475, 070
214, 801, 310
211,453,310
194,263,810
182, 567, 060
Resolution of the Board
PROPOSED
AMENDMENT
P R O P O S E D A M E N D M E N T TO R U L E S AND R E G U L A T I O N S
FOR
THE
FEDERAL
HOME
R E L A T I V E TO I N T E R B A N K
LOAN
BANK
SYSTEM,
DEPOSITS
On February 21, 1941, the Federal Home Loan
Bank Board adopted a resolution proposing to amend
paragraph (e) of Section 4.1 of the Bank System
Regulations. The purpose of this proposed amendment is to eliminate existing restrictions in connection with interbank borrowing which unnecessarily
hamper the flow of funds between the Banks. This
action is in line with a recommendation of the Bank
Presidents at their last conference that such restrictions be removed. The amendment would make
paragraph (e) read:
par. e. Transfer of funds between Banks. Interbank
borrowing shall be through the medium of unsecured deposits.
Unless otherwise directed by the Governor such deposits
shall be payable on demand. Arrangements for such deposits
and the repayment thereof shall be made through the Board's
Comptroller. Such deposits shall bear interest at rates
established by the Board.
This proposed revision will not be approved by
the Board until at least 30 days after the mailing
date to the Advisory Council.
Total
$18, 000
10, 725, 400
69, 119, 000
174, 612, 300
254, 525, 770
261, 854, 510
251, 132, 010
221,011,810
206, 237, 960
For both the U. S. Treasury and the Home Owners'
Loan Corporation, investments in savings and loan
associations have been the source of considerable
earnings. Through the end of 1940 the Treasury
has received dividends in the amount of $8,883,741
and the Home Owners' Loan Corporation $29,688,594,
for a total of $38,572,335. The average yield on share
March 1941
investments was in excess of the cost of money to
both the Treasury and the HOLC. Losses thus far
have been negligible, amounting to $1,428 in the
case of one liquidating association.
FHLB
Directors
•
T H E Federal Home Loan Bank Board recently
announced the appointment of R. A. Stevens as
Class C Director for the Federal Home Loan Bank
of Cincinnati for a term expiring December 31, 1941.
Mr. Stevens is Secretary of the Dyer County Federal
Savings and L o a n A s s o c i a t i o n in D y e r s b u r g ,
Tennessee.
The resignation of George W. Pardy, Class B
Director for the Federal Home Loan Bank of Los
Angeles, was also recently announced. His successor is Harold B. Starkey, Executive Vice President
of the First Federal Savings and Loan Association
of San Diego, San Diego, California.
187
SUGGESTED RECONDITIONING PRACTICES
Despite their progress in disposing of owned real estate, mortgage lenders
are still confronted with the problem of profitably handling their less
desirable properties. Because of its success in reconditioning just such
properties, some of the methods used by the Home Owners' Loan Corporation are of interest to savings and loan executives.
•
ALTHOUGH savings and loan associations have
made great progress in the disposition of their
owned real estate, there is still a considerable volume
of unsold properties on their books. Naturally the
more desirable properties have been the easiest to
sell. Those at the "bottom of the barrel" generally
need considerable doctoring before they are marketable.
Pertinent ideas to aid savings and loan executives
in disposing of their less desirable properties may be
found in a booklet entitled "Approved Reconditioning Methods," recently issued by the Dallas Regional
Office of the Home Owners' Loan Corporation to its
field force. For this reason, some of the suggested
practices included in the booklet are outlined in the
following paragraphs.
E X T E N S I V E IMPROVEMENTS
Roofs: Staining a wood-shingle roof not only
freshens up a property but prolongs the life of the
roof. On the other hand, a new roof may be less
costly in the long run than repairs which extend the
life of the old roof not more than a year or two.
In some instances a different kind of roof may be
more in keeping with those on better properties in
the neighborhood. When a new roof is to be applied, it is better construction practice to remove the
old one.
Porches: Large, obsolete porches are often expensive to repair. An attractive and economical
way to replace them is with neat, modern covered
entrances or stock colonial entrances and doors.
To freshen up discolored cement porches and steps,
a good cement paint should be applied to the entire
surface. Cement or brick terraces can often be
improved by installing iron banisters.
In determining whether extensive reconditioning
is justified, the location, neighborhood, and type of
surrounding property are as important as the house
itself.
Foundations: In some areas unusual soil conditions
often cause foundations to be faulty. These faults
should be corrected before bids are taken on the
remainder of the job, for additional unforeseen repairs
may result from work on the foundation.
Structural repairs frequently do not show and
regardless of their necessity have little effect on the
saleability of a dwelling. Most purchasers are more
influenced by decorative reconditioning such as new
paint, styles, and fixtures.
Painting: Trends in exterior color schemes for
different localities and sections may be determined
Before
After
188
T H E VALUE OF DECORATIVE
RECONDITIONING
Federal Home Loan Bank Review
of the entire house. Swatches containing wallpaper
suggestions for each room as well as ensembles for an
entire house can be easily obtained.
Floors: Machine sanding is necessary on hardwood
floors showing signs of age, cupping, or heavy wear.
Pine floors in less expensive properties should be
thoroughly cleaned and painted. In most instances,
it is impractical to refinish only a portion of the
floors in a house because the displeasing contrast
between the old and the refinished floors creates a
definite sales resistance.
Kitchens and bathrooms: Since the housewife spends
much of her time in the kitchen, its wall and floor
coverings should be gay and vivid. Painting the
inside of cupboards and drawers a bright color in
contrast to the walls creates an appealing effect.
Wooden or other unsatisfactory drainboards should
be replaced with metal-bound battleship linoleum or
tile drainboards. When needed, new cabinets should
be installed. Ample and conveniently placed electric service outlets take care of the many electrical
appliances used by the modern housewife.
Before
by inspecting the newly built homes in those areas.
Although white or light cream as an exterior color is
preferred in most sections of the Dallas Region,
more practical colors can be used in areas affected
by smoke or dust. Muddy or somber-colored
masonry or stucco residences may be made appealing
with light-color masonry paint which also helps to
create an impression of spaciousness. Dark masonry
residences, on which the brickwork has been noticeably pointed up, can be improved by painting the
exterior masonry, and touching up any paintsmeared brickwork with a liquid mortar-color
solution.
The selection and use of interior painting and wallpaper are important factors in the saleability of a
house. In rooms not having running water, the
most popular colors for interior trim are ivory and
milk white, while white enamel is preferred in
kitchens and baths. In every room, the trim and
wall covering should contrast with the floor covering.
Wallpaper: Important—even one room with poorly
selected paper and trim can spoil the color harmony
March 1941
189
The bathroom can be made gay and cheerful by
colorful wall decoration. Its appearance can be
further improved by replacing the old and tarnished
fittings on plumbing fixtures with new chromium
ones, and, if the type of property justifies it, by replacing an old leg-tub with a built-in tub and a wallhung lavatory with a pedestal one. A medicine
cabinet is essential in all properties, with better
homes having one of metal and recessed in the wall.
Electrical fixtures: The uses of electricity are so
varied today t h a t ample and conveniently located
service outlets must be provided in every house.
Dropcords in almost every case should be replaced
by wall switches and soiled or discolored fixtures
should be painted or replated.
Yards and landscaping: The expenditure on landscaping, shrubbery, etc., depends on the location
and character of the property. However, a practical gauge is: $20 on properties the sales price of
which is under $3,000; $25 on those between $3,000
and $4,000; and $5 more for each additional $1,000.
Planting should be done at the start of the reconditioning program in order that it may be cared for
while construction work is in progress. Before approving and accepting a reconditioning contract as
complete, all trash and debris must have been removed from the site and the premises thoroughly
cleaned.
W H E R E RECONDITIONING I S N O T WORTHWHILE
Knowing when not to recondition is equally as
important as knowing how to recondition. In
numerous cases it is wiser in the long run to accept
a loss and either sell the property " a s is" or make
only the barest possible preservative repairs, for
modernization does not always increase the sales
price of real estate. The type of architecture, the
structural condition of the house, the neighborhood,
location, or general economic conditions in the community may be such that the house could not be
sold at a higher price even after reconditioning.
For example, in the following two cases the Home
Owners' Loan Corporation limited its reconditioning
program to necessary repairs of a preservative
nature. I n the first case, real estate values in the
town in which the property is located are declining
due to the removal of its industry and the migration
of employees. The 38-year old frame cottage, consisting of four rooms and bath, is cheaply constructed,
close to and on the undesirable side of the railroad
tracks, and within a mixed neighborhood.
190
Another case, is the 2-story, stone and woodshingle residence shown below. Built more than 50
years ago, the design is obsolete and unattractive
and the mere cost of reconditioning would be exorbitant. However, there are other factors which
make expenditures impractical. The property is
located only six blocks from the center of the business district and in a neighborhood of similar houses
which have been converted into cheap rooming
houses and apartments. A definite lack of pride of
ownership is apparent from the rundown condition
of the majority of neighboring properties. I t is
believed that eventually these structures will be
replaced by second-rate business establishments,
and therefore their chief value is in the land.
The Home Owners' Loan Corporation has not
attempted to lay down hard-and-fast rules to be
applied to all its properties. I t must be remembered
that each piece of real estate be considered on its
own merits, and then only good judgment can determine the extent and nature of reconditioning
that is economically sound.
Federal Home Loan Bank Review
«
«
«
FROM THE MONTH'S NEWS »
STATE SUPERVISION: ". . . five States
have a separate building and loan department under a separate building and loan
supervisor; 26 have put building and loan
supervision under the bank department,
and 11 others have it under some other
department/'
"Building and Loan Associa- j
tions", Research Report 9,
(Maryland Legislative Coun- |
cil). American Savings and
Loan News, February 1941.
VARIABLE INTEREST RATES: "The experience of most associations which are
following the variable interest rate plan |
is that the average return on the mortgage I
portfolio will range between one-half of 1
percent to 1 percent higher than the
minimum rate established/'
Fred T. Green, President,
Federal Home Loan Bank of
Indianapolis, before Illinois
Federal .Savings and Loan
Council.
FORECASTS: "Rents will climb, some
650,000 houses will be built, interest rates
will stay about the same, and more existing houses will change hands than in the
past 12 years . . . savings, building and
loan associations and cooperative banks
will lend $1,500,000,000 with a larger
percentage of it in construction loans than
the past year."
»
»
No conflict needed
"There should never be any conflict between banks and savings
and loan associations. They are both extremely necessary to the
well-being and progress of any community. One takes care of the
business and the other, the home and thrift needs of the people of the
Nation. The sphere of each is well defined and together they take
care of every financial requirement of the average man—his money,
his business, his home, and his savings. Every man has to have a
place to keep his money and to finance his business and every man
has to have it made possible for him to save for the future and to
acquire a shelter to live in. The two types of institutions complement each other and in a complex civilization like ours it is hard to
get along without either/ 7
Frederic C. Morse, The American
Banker, Feb. 6, 1941.
Make it a business
" Savings and loan people don't have to worry about competition.
They can make the competition. Operating on the cooperative
principle, specialists in their field, with more than a century of
experience, they can in this modern age operate their institutions on
such an effective, efficient, business-like basis that they can dominate the entire thrift and home-financing field. Let's stop trying to
fit the customer to a particular bookkeeping system. Let's fit this
business to the needs and conveniences of the public! Let's call it a
business—and, even more important—let's make it a business!"
George L. Bliss, President, Railroadmen's Federal Savings and
Loan Association, New York City.
Morton Bodfish, news release
of the United States Savings
and Loan League, Jan. 4,1941.
NAREB SURVEY: "By far the majority
of the cities answering market forecast
questions predict that in 1941 real estate
will see a higher volume of market activity; rise in prices for residential property;
increased demand for home sites; a greater
volume of residential construction; higher
rents for dwellings; financing costs still
dropping in 17 percent of the cities."
PERCENT OF URBAN DWELLING UNITS VACANT AND FOR SALE OR RENT
APRIL I. 1940
Freehold, January 1941.
DEFENSE HOUSING: "Housing is a problem of coordinated planning embracing the
elements of education, recreation, health,
traffic, services, and business—as well as
shelter. The mere assemblage of dwelling
units does not solve the problem. New
environments should be so planned that
they do not impose burdens on the services
of the communities in which they are
built. Defense housing presents a challenge to local interests 'to shape community futures' while meeting emergency
needs."
Pencil Points, February 1941.
March 1941
Source: Bureau of the Census
The above chart illustrates the regional pattern of urban vacancies as of Apr. 1, 1940. High vacancy
ratios were concentrated in New York, New Jersey, Florida, and on the West and South West Coast.
Low vacancy ratios prevailed in the South East and in the North Central region.
Buieau of the Census.
I9I
RESIDENTIAL BUILDING ACTIVITY AND SELECTED INFLUENCING FACTORS
1935-1939*100
BY YEARS
BY
INDEX
MONTHS
300
250
f\l
200
j
r-A
150
-
1 _ir*^*'*_
100
90
80
^ ^
70
60
50
40
30
20
SOURCE: (I)
(2)
(3)
(4)
(5)
10
FEDERAL HOME LOAN BANK BOARD (U.S. Deportment of Labor records)
NATIONAL INDUSTRIAL CONFERENCE BOARD
U. S. DEPARTMENT OF LABOR
U. S. DEPARTMENT OF COMMERCE
FEDERAL HOME LOAN BANK BOARD
Monthly data for FORECLOSURES and RESIDENTIAL
CONSTRUCTION are adjusted for seasonal variation
! ! 1 1 1 1 1 1 1 I ], !., L.xJ_L_l_i_J__L_L_L_J_
1930 '31
'32
'33
'34
'35
'36
M.LL.ONS LOANS BY ALL SAVINGS ft LOAN ASSNS.
$l20r
1 A/\
TOTAL LOANS+tw
100]
'37
'38
MILLIONS
'39
'40
'41
F.H.L.B. ADVANCES
1939
OUTSTANDING
$240r
j
80
200
60,
180
.40|
160
CONST RUCTION
sy^\
19 4 0 X^--
°K
-*111939
/ i r f T
300] atf*"*
j
120
1
i
, 1 1 . , I 1 l i l ,J ,
1
,
i
:
i
:
!
•.
i
* COST OF STANDARD SIX-ROOM HOUSE
NDEX
I50r
|
|
0
JAN. FEB. MAR. APR. MAY
WHOLESALE
JUN. JUL. AUG. SEP OCT. NOV.
DEC.
JUN. JUL. AUG. SEP OCT. NOV. DEC.
COMMODITY
PRICES
INDEX
INDUSTRIAL
160
1935-19
140
120
100
PRODUCTION
39=100
X\rJ
J
-y
f
/
^Vr
--^' •. i , , i • •
1
" ^*I93" 9^
100
.
JAN. FEB. MAR APR. MAY
192
2x\ V
200
i
140
100
INDE
i i
i
LOA/V
20
0
i
|
400
i
10
1941
MILLIONS MORTGAGE RECORDINGS-ALL LENDERS
$500r
j
\
220
1940
• • 1 • • 1 • • h / .
Federal Home Loan Bank Review
«
«
«
MONTHLY
SURVEY
Highlights
/. Residential construction activity in January was somewhat be/ow the December level, but 46 percent above the opening month of
A. Privately financed building in urban areas rose 12 percent from December.
B. Public construction in these areas declined over 5 0 percent.
1940.
II. Continued price increases were reflected in the index measuring the cost of constructing the standard house.
A. The January index showed a rise of almost 7 percent over the corresponding month of last year, with labor costs up 10 percent
and material costs up 5 percent.
B. Wholesale building material prices leveled off; and lumber prices which had exhibited the greatest increase in the preceding
six months recorded a small decline in January.
III. Mortgage-financing activity showed the usual seasonal drop accompanying the smaller volume of winter construction.
A. The total volume of recordings for nonfarm mortgages under $20,000
was 6 percent below December, and each type of lending institution participated in the decline.
B. New loans made by savings and loan associations were 9 percent lower than in the preceding month, but 20 percent above
the level of January 1940.
IV. Nonfarm real estate foreclosures declined 3 percent from December—less than the customary reduction for this period of the year.
V. Economic activity in January was marked by the absence of the usual post-holiday let-down, and output in many industries reached
new peaks.
Summary
•
T H E sharp rise of wholesale building material
prices during the final quarter of last year was
viewed with concern by builders, mortgage-financing
institutions, and economists in the field of housing.
During January the combined index of wholesale
material prices increased only fractionally, and more
recently prices have been tapering off. Lumber
prices which had contributed most heavily to the
rise in material costs during the latter part of 1940
have declined gradually since December.
In contrast to wholesale material prices, both the
material and labor elements of the cost of building
the standard house moved upward at an abated pace
in January; labor costs advanced by nearly 2 percent
and material costs by almost 1 percent.
Although still considerably below the high level
established in the fall of last year, the volume of
privately financed residential construction in urban
areas increased by 12 percent from December to
January. However, this rise was offset by a drop
in the number of units placed under construction by
Government housing agencies.
Despite the development of new building techniques, which provide for inexpensive methods of
preventing damage by freezing to construction
projects, home-building activity still remains at a
relatively low ebb during the winter, and this in
March 1941
turn is reflected each year from November through
February in low construction lending volumes.
Largely as a result of deep-rooted traditions,
standard spring and autumn moving dates still prevail in most sections of the country, and all phases
of residential mortgage financing still tend to revolve
about these dates, so that more new and old homes
are bought, more repairs and alterations made, and
more loans refinanced during these periods. The
advantages to financing institutions in attempting
to smooth out these seasonal peak-load periods were
set forth in an article, "Seasonal Variations in the
Residential Construction Index", which appeared in
the R E V I E W of October 1938.
All classes of mortgagees, with the exception of
individual lenders, reflected the seasonal slowingdown in recording activity from December. This
[1935-1939=100]
1
Jan.
1941
Dec.
1940
233.5
44.0
107.4
111.2
139.0
121.4
144.0
118.0
234.7
42.2
107.2
110.9
138.0
119.5
141.0
117.2
Percent
change
-0.1
+4.3
+0.2
+0.3
+0.7
+1.6
+2.1
+0.7
Jan.
1940
147.9
52.1
106.1
104.3
122.0
107.0
118.1
110.7
Percent
change
+57.9
-15.5
+1.2
+6.6
+13.9
+13.5
+21.9
+6.6
Adjusted for normal seasonal variation.
193
Attention of R E V I E W readers is directed to two major changes in the presentation of statistical
data published regularly in the R E V I E W .
Base period for indexes: Beginning with this issue, the index numbers appearing in the statistical
section of the R E V I E W will be based on the average of the years 1935-1939. The general use of this
period was recommended last year by the Central Statistical Board in an effort to place the indexes
computed by various agencies on a standard basis which would facilitate comparisons. I n the
meantime, a number of agencies have converted their index numbers to the new base. In the interest
of uniformity, the Division of Research and Statistics likewise has recomputed the indexes published
in the R E V I E W on the basis 1935-1939 = 100. This, it is hoped, will improve considerably their
usability. Indexes presented in the summary charts on page 192 are also on the new basis.
Coverage of residential construction data: The monthly statistics on the number and estimated
cost of new family dwelling units presented in Tables 1 and 2 are now based on a broader coverage.
Hitherto they had been limited to reports from cities of 10,000 population or over. The Bureau of
Labor Statistics of the U. S. Department of Labor is now supplying data covering all urban areas
which include cities and communities having a population of 2,500 persons or more. Since an appreciable portion of residential construction is taking place in the smaller urban communities, this
represents a welcome improvement of current building statistics.
downward seasonal tendency was widespread geographically, with the great majority of States reflecting lower volumes of mortgage financing in January.
In the savings and loan field, new construction and
home-purchase lending activities suffered their
usually heavy seasonal declines, with each of these
groups showing a reduction in excess of 9 percent
from December. The miscellaneous loan classification was the only group to register a rise.
General Business Conditions
•
I N SHARP contrast to the business pattern of
January 1940 which was marked by a recession
from an extremely high level of year-end activity, the
first month of this year showed little regard for the
usual post-holiday declines and witnessed new peaks
in many industries. With defense industries taking
the lead, the gradual spread of the preparedness
program over all phases of business was evident.
The seasonally adjusted industrial production index
of the Federal Reserve Board (1935-1939 = 100)
established its fourth consecutive monthly high (139)
as the volume of manufacturing declined less than
normally expected. Steel output was estimated at
98 percent of capacity during January and activity
in industries making machinery, aircraft, ships, and
similar products was also at near capacity rates.
The constantly increasing volume of defense
construction resulted in a contraseasonal gain in
194
lumber production, and according to the Department of Commerce, the January output was close to
that of the peak seasonal months last fall and, on a
seasonally adjusted basis, was higher than at any
time since 1929.
The Federal Reserve index of department store
sales in January was 10 percent above the corresponding month of 1940. This reflects the gradual
growth in consumer purchasing power which will
continue to exert an increasing pressure upon our
productive facilities in addition to the constant
demand for the creation of armaments. Automobile
sales to consumers during January were the highest
on record for that month, and February production
is expected to exceed 500,000 units—also a new
record for that month. Much of this increased
activity is believed to be in anticipation of possible
priorities or work on defense orders which may curtail ordinary automobile production later in the
year.
Employment during January reached the highest
levels on record for that month, according to the
Department of Labor. The total of 36,343,000 nonagricultural workers employed in January was
1,100,000 more than in January 1929, and 1,868,000
greater than in the corresponding month of last
year. Employment on construction projects was
considerably above last year's level as more than
600,000 additional workers were on jobs in this
industry.
Federal Home Loan Bank Review
M O N E Y M A R K E T CONDITIONS
The gradual decline in the yield on long-term
U. S. Treasury obligations, which has been in process
with only minor interruptions since 1932, seems to
have reached another bottom in December when
the monthly average was 1.89 percent. Beginning
with the week of December 21, the average yield on
these bonds of 12 or more years maturity has risen
steadily for 10 successive weeks to a level of 2.12
percent in the week ending February 15. This
cancels all of the decline from last October through
the December low.
Of additional interest to institutions operating in
the field of long-term thrift is the recent announcement by the Secretary of the Treasury t h a t all " b a b y
bonds" sold after March 1 will be subject to Federal
taxes. This action is taken under the provisions of
the new defense financing law which was signed by
the President on February 19, and which authorizes
the Secretary of the Treasury, among other things,
to issue various types of savings bonds for the
financing of the defense program. The Act also
provides that all Treasury bonds, notes, and bills
issued in the future must be taxable.
Residential Construction
[Tables 1 and 2}
•
T H E volume of residential construction which
is now being reported on a broader basis comprising all urban areas (cities and communities of
2,500 and over) showed a decline from December
but was substantially higher than in January of
last year.
Privately financed construction, as reported by
the U. S. Department of Labor, rose 12 percent from
December 1940 to January 1941. All types of
dwellings shared in this rise, with multifamily units
reporting a 33-percent gain over December. In
contrast, public residential construction in urban
areas declined over 50 percent; however, a number
of defense housing projects reported in January
were outside the urban areas and were thus not
included in these totals.
Higher building activity was widespread geographically with 39 States and the District of Columbia
showing increased volume in comparison with January of last year. For the country as a whole,
January construction was 46 percent above the
opening month of 1940.
MorcA 1941
The seasonally adjusted index of residential construction in cities of 10,000 population and over, as
compiled by the Federal Home Loan Bank Board
from reports of the U. S. Department of Labor,
decreased fractionally from December, and stood
133.5 percent above the average month of 19351939.
Foreclosures
[Table 10]
•
T H E decline of 3 percent in nonfarm real estate
foreclosures during the month of January was
somewhat unfavorable compared with the customary
seasonal drop of 7 percent during this period of the
year. However, the 5,474 cases estimated for January were substantially below the 6,483 cases estimated for the same month a year earlier.
Geographically, the foreclosure pattern during
January was very uneven. Five of the 12 Federal
Home Loan Bank Districts and 25 States including
the District of Columbia showed increases in foreclosure activity and 7 Bank Districts and 24 States
registered declines or no change.
The January foreclosure rate on an annual basis
was 3.5 cases for each 1,000 nonfarm dwellings.
The only Federal Home Loan Bank Districts having
a rate in excess of that for the United States were
the Boston, New York, and Pittsburgh Districts.
Superseding the index of foreclosures in metropolitan communities, an index of all nonfarm
foreclosures (average month of 1935-1939 = 100) is
introduced in the index table on page 193. This
seasonally adjusted index rose from 42.2 for December
to 44.0 in January.
Building Costs
[Tables 3, 4, and 5]
•
KISING costs for the construction of the standard 6-room frame house were recorded for the
past quarter by a majority of the communities reporting currently. Of the 25 cities which reported
changes from November 1940 to February 1941,
14 indicated a rise of at least $100 and four showed
increases of $500 or more. Only six cities reported
declines, and these were less than $100 each.
The January index for the total cost of constructing the standard house was 7 percent higher than in
January 1940. Labor costs have risen 11 percent
since July 1940 and in January were nearly 15 percent
195
Construction costs for the standard house
[Average month of 1935-1939=100]
E l e m e n t of cost
Material .
Labor
Total
Jan.
1940
Percent
change
Jan.
1941
Dec.
1940
106. 6
114. 5
1
105. 9 i + 0 . 7
112.5 + 1 . 8
101. 4
104.0
+ 5. 1
+ 10. 1
109.3
108. 1
102. 3
4-6. 8
Percent
change
+ 1. 1
above the average month of 1935-1939. Dealers'
prices for materials were about 5 percent higher than
in July 1940 and 7 percent higher than the 19351939 average.
The wholesale prices of building materials as
reported by the U. S. Department of Labor showed
a tendency to level off, with the combined index in
January being only fractionally higher than a month
previous. Lumber prices, which had been rising
rapidly in the preceding six months, registered a
decline from December b u t were still 25 percent
higher than in July 1940.
Each of the five loan-purpose groups, with the
exception of the miscellaneous classification, fell in
volume below December. Comparing January activity with the corresponding month of 1939, sharp
rises have occurred over the past tw^o years in the
volume of construction and home-purchase lending,
while in the remaining classes the rate of growth has
been much slower.
As a result of these shifts construction loans,
which comprised 29 percent of all loans made in
January 1939, currently account for about 33 percent of the total; likewise, home-purchase loans have
become somewhat more important, having expanded
from 32 to 35 percent in the 2-year interval.
TOTAL
LOANS
MADE BY ALL SAVINGS AND LOAN ASSOCIATIONS
UNITED S T A T E S - B Y
BY
TYPE
OF ASSOCIATION
MONTHS
New Mortgage-Lending Activity of
Savings and Loan Associations
SEP.
OEC
[Tables 6 and 7]
CUMULATIVE - AS OF JANUARY 31 EACH YEAR
•
A SEASONAL reversal in the volume of new
mortgage loans made by savings and loan
associatious during January brought the total for
the month down $8,100,000, or 9 percent, under the
December figure; however, the $80,400,000 in new
loans for January was 20 percent higher than for
the same month of 1940, and was 45 percent above
the January 1939 level.
New mortgage loans distributed by purpose
1939
1 9 4 0 1941
STATE-CHARTERED MEMBERS
[Amounts are shown in thousands of dollars]
Purpose
Jan.
1941
Dec
P e r
i94o! r
"
n t
Jan.
1940
Total
196
$26, 662 $30, 032
27, 809 31, 465
13, 645 14, 575
3,784
4, 248
8,540
8,233
- 1 1 . 2 $19, 488
- 1 1 . 6 22, 039
- 6 . 4 13, 999
- 1 0 . 9 3,455
+ 3. 7 7, 963
80, 440 88, 553 - 9 . 2
+ 36. 8
+ 26. 2
-2. 5
+ 9. 5
+ 7.2
66, 944 + 2 0 . 2
1939
1940 1941
NONMEMBERS
Mortgage Recordings
Percent
change
[Tables 8 and 9]
ichange
Construction
H o m e purchase
Refinancing
Reconditioning
Other purposes
III
•
ALL types of lending institutions participated
in the December-to-January decline from $327,000,000 to $308,000,000 in the volume of mortgage
recordings of $20,000 or less; decreases ranged from
13 percent for mutual savings banks to 3 percent for
life insurance companies. Individual lenders, on the
Federal Home Loan Bank Review
Mortgage recordings by type of mortgagee
[Amounts are shown in thousands of dollars]
T y p e of lender
PerPerPercent
J
a
n
cent
cent
change,
change of J a n . u a r v
Jan.
1941
from
19401941
Dec. a m o u n t a m o u n t
Jan.
1940
1941
Savings and loan associations _
-8.9
-3.4
Insurance companies
-5. 3
Banks, t r u s t companies
-13.3
M u t u a l savings banks
+ 3. 7
Individuals
-9.7
Others
Total
-5.8
29.3
9.0
25.7
4.2
17.5
14.3
$89,
27,
78,
12,
53,
44,
996
691
977
931
891
154
+ 20. 5
+ 25.9
+ 19.0
+ 22. 9
+ 12. 2
+ 7.4
100.0 307, 640 + 17. 1
other hand, financed 4 percent more mortgages than
in the closing month of 1940.
The relatively good showing made by individual
lenders during the month of January is, in all probability, temporary in nature. The long-time trend has
been definitely toward the increased use of specialized
home-financing institutions at the expense of individuals, as is indicated by the fact that during 1940
recordings by the latter group showed less rise than
did any single class of institution. This trend has
been accentuated by the more widespread use of
home-mortgage insurance under the National Housing Act, which does not provide for insurance of
loans made by individuals.
All types of mortgagees experienced greater activity than in January of last year. Life insurance
companies led in the rise from January 1940, showing
a 26-percent larger volume of recordings.
Savings and loan associations recorded 20 percent
more loans in January than in the same month of
1940. The average gain for total recordings was
17 percent.
Federal Savings and Loan System
[Table 12]
•
P R I V A T E share capital in Federal savings and
loan associations grew by about $50,000,000
during January, to a total of over $1,437,000,000
at the end of the month. This large increase was
due principally to the usual semiannual dividend
credits (most of which was reflected in January'!.
Federal associations indicated on their monthly
March 1941
reports an aggregate of $88,000,000 in new share
investments as against repurchases of $50,000,000.
Capital investments are always received and paid
out to shareholders in great volumes immediately
following upon dividend payments; however, January marked a distinct all-time high in new investments obtained by Federals, whereas withdrawals
were only fractionally more than the previous record
set afte'r the June 30, 1940 closing date. In addition,
however, large amounts of Treasury and HOLC
investments were repurchased by Federals during
January.
Mortgage holdings of all Federals increased by
less than $20,000,000 in January. The rapid growth
of $50,000,000 in capital for the month was, therefore, greatly in excess of mortgage-loan requirements,
and Federals were able to reduce their borrowings
from the Federal Home Loan Banks by over
$24,000,000.
Progress in number and assets of Federals
[Amounts are shown in thousands of dollars]
Number
Class of
association
Jan. 3 1 ,
1941
Approximate assets
Dec. 31, J a n . 3 1 ,
1941
1940
Dec. 31,
1940
New _
Converted _
635
807
635 $567, 852 $567, 372
806 1, 306, 668 1, 305, 978
Total
1,442
1,441 1, 874, 520 1, 873, 350
Federal Savings and Loan Insurance
Corporation
[Table 12]
•
TOTAL resources of associations insured by the
Federal Savings and Loan Insurance Corporation were slightly lower on January 31 than at the
close of December, despite the net addition of six
insured associations during the month. The principal causes for this decline were the payment of
dividends and interest charges immediately following
the year-end, the seasonal repayment of Federal
Home Loan Bank advances which caused a net
decline of nearly $30,000,000 in the amount outstanding in insured associations, and substantial
repurchases of Government investments.
(Continued on p. 207)
197
Table 1.—Estimated number and valuation of new family dwelling units provided in all urban areas of
the United States, January 1941
[Source: U. S. Department of Labor]
[Amounts are shown in thousands of dollars]
Number of family dwelling units
Year
Monthly totals
Type of construction
Permit valuation
Monthly totals
Year
Jan.
1941
Dec.
1940
Jan.
1940
23, 423 20, 940 15, 539321, 624 286, 654
$84, 445
$77, 206
$57, 099 $1, 162, 329$1, 038, 517
1-family dwellings
.._ _ 16, 117 15, 249 10, 658252, 117212, 135
2-family dwellings 1 _ .. 2 1,313 1, 186 972 19, 785 14, 697
3-and more-family dwellings . 5,993 4,505 3,909 49, 722 59, 822
63, 222
3, 137
18, 086
61, 069
3,072
13, 065
40, 100
2,226
14, 773
968, 747
49, 514
144, 068
810, 730
37, 322
190, 465
3,576 8,043 2,935 65, 334 55, 452
11, 223
24, 312
8,316
200, 123
181, 199
26, 999 28, 983 18, 474 386, 958342, 106
95, 668
101,518
Jan.
1941
Private construction
Public construction_
_ _. _
Total urban construction
1
2
Dec.
1940
Jan.
1940
1940
1939
1940
1939
65, 415 1, 362, 452 1, 219, 716
Includes 1- and 2-f amily with stores.
Includes multi-family with stores.
Table 2.—Estimated number and valuation of new family dwelling units provided in all urban areas,
January 1 9 4 1 , by Federal Home Loan Bank District and by State
[Source: U. S. Department of Labor]
[Amounts are shown in thousands of dollars]
All residential dwellings
Number of family
dwelling units
Federal Home Loan Bank District
and State
UNITED STATES __
_
No. 1—Boston
Connecticut _
Maine
M assachusetts _
New Hampshire
Rhode Island
Vermont
_
.. ..
No. 2—New York
New Jersey
New York
.
.
_
_._
No. 3—Pittsburgh
Delaware. _ .
Pennsylvania
. _
West Virginia _
__ _
198
_ .
All private 1- and 2-family dwellings
Number of family
dwelling units
Permit
valuation
Permit
valuation
Jan.
1941
Jan.
1940
Jan.
1941
Jan.
1940
Jan.
1941
Jan.
1940
Jan.
1941
Jan.
1940
26, 999
18, 474
$95, 668
$65, 416
17, 430
11,630
$66, 357
$42, 327
1,395
977
5,744
3,928
738
509
3,383
2,466
229
25
1,073
5
60
3
610
2
293
27
40
5
1,208
93
4,146
18
265
14
2,323
2
1,311
103
172
17
226
25
419
5
60
3
162
2
273
27
40
5
1,200
93
1,793
18
265
14
907
2
1,265
103
172
17
5,206
4,877
18,219
19, 654
1,613
1,164
6,956
5,334
683
4,523
465
4,412
2,526
15, 693
2, 047
17, 607
660 1
953 J
283
881
2,472
4,484
1,359
3,975
864
345
4,108
1, 628
825 j
285
3,996
1,435
18
726
120
1
305
39
89
3,611
408
4
1,491
133
141
707
104 1
i
249
35
77
3,551
368
4
1,307
124
1
I
•
;
Federal Home Loan Bank Review
Table 2.—Estimated number and valuation of new family dwelling units provided in all urban areas,
January 1 9 4 1 , by Federal Home Loan Bank District and by State—Contd.
[Amounts are shown in thousands of dollars]
All p r i v a t e 1- a n d 2-family dwellings
All residential dwellings
N u m b e r of family
dwelling units
Federal H o m e Loan B a n k District
and State
Alabama. _
District of Columbia
Florida
Georgia _ _ _ _
__
Maryland _ _
N o r t h Carolina
_ _
South CarolinaVirginia. _
No. 5—Cincinnati _
K e n t u c k y _ __
Ohio.
Tennessee
No. 7—Chicago
Illinois
Wisconsin _ _
Jan.
1940
Jan.
1941
$14, 252
482
3,550
4,320
1,366
714
2,160
328
1,332
$6, 836
322
887
3,671
452
329
434
286
455
2,433
245
171
783
322
225
3Q2
115
270
1,874
132
62
749
199
75
193
143
121
$7, 713
482
885
2,766
726
714
777
303
1,060
$5, 149
300
401
2,605
433
287
423
286
414
539
43
370
126
7,626
268
5,391
1,967
2,425
105
1,999
321
1, 127
105
738
284
515
43
350
122
5,213
268
4,097
848
2,362
105
1,942
315
1,507
277
1,230
661
97
564
6,760
1, 118
5,642
3, 116
365
2,751
1,503
277
1,226
657
93
564
6,750
1, 118
5,632
3, 114
363
2,751
1,486
1,274
212
325
253
72
6,715
5,769
946
1,721
1,409
312
787
588
199
321
253
68
4,538
3,624
914
1,711
1,409
302
686
103
291
234
10
48
278
50
156
51
10
11
2,654
405
1,279
789
20
161
1,048
180
667
162
8
31
566
103
267
173
10
13
267
50
149
51
10
7
2,320
405
1,225
637
20
33
1,017
180
646
162
8
21
_
3,037
77
361
220
113
2,266
2,953
82
1,088
220
82
1,481
8,261
181
1, 133
427
304
6,216
8,550
195
3,573
454
218
4, 110
2,231
77
323
166
100
1,565
1,931
82
230
123
79
1,417
6, 177
181
999
267
280
4,450
5,240
195
639
218
214
3,974
.
687
189
128
37
333
546
265
40
34
207
2, 182
587
329
137
1,129
1,669
858
103
109
599
663
171
122
37
333
307
70
40
26
171
2, 128
539
323
137
1, 129
900
215
103
92
490
777
53
27
230
69
374
24
605
42
17
154
50
328
14
2,528
121
68
752
193
1,304
90
1,981
89
36
535
140
1, 124
57
692
42
27
192
53
354
24
565
36
17
146
47
305
14
2,402
100
68
682
175
1,287
90
1, 874
79
36
517
133
1,052
57
5,047
80
4,922
45
3,939
68
3,848
23
16, 619
252
16, 210
157
12, 860
222
12,557
4,252
71
4, 142
39
81 1
3,435
68
3, 344
23
_ __
->
_ __
__
__ _
> __ __
__ __ _
N o . 8—Des Moines__
.._
Iowa
__
Minnesota __ _
_
Missouri- _ _ _
_
_____
North Dakota
__
___
South D a k o t a _ _
. _
N o . 9—Little Rock
Arkansas
Louisiana __
Mississippi
New Mexico
Texas
_
__
__
N o . 10—Topeka
__
_
Colorado
_ __ _
Kansas _
_
Nebraska
_
Oklahoma _
_
___
No. 11—Portland
Idaho _
_ _
Montana
_ _ _
Oregon
_ _ .
Utah
Washington _
Wyoming _ _
_
No. 12—Los Angeles
Arizona
California
Nevada .
March 1941
_
____
____
_
_
Jan.
1940
Jan.
1941
__
No. 6—Indianapolis
Indiana
Michigan
Permit
valuation
Jan.
1940
__ _
_
N u m b e r of family
dwelling units
Permit
valuation
_ _ _
Jan.
1941
Jan.
1940
Jan.
1941
4,456
245
789
1,348
602
225
822
125
390
2,429
152
300
1, 176
215
92
204
143
147
1,761
105
1,056
600
14, 781
236
14, 395
150 |
11, 725
222
11, 422
81
199
Table 3.—Cost of building the same standard house in representative cities in specific months *
NOTE.—These figures are subject to correction
[Source: Federal Home Loan Bank Board]
T o t a l cost
Cubic-foot cost
Federal H o m e Loan Bank
District a n d city
1941
1941
Feb.
1940
1939
1938
1937
Feb.
Feb.
Feb.
1940
Feb.
Feb.
Nov.
Aug.
May
Feb. *
i
No. 3 — P i t t s b u r g h :
Wilmington, Del __
Harrisburg, Pa _
Philadelphia, Pa_
Pittsburgh, Pa
Charleston, W. Va _
Wheeling, W. Va
2
032 $5,217
554 i 5. 916
309 1 5,816
6, 155
434
5,808
963
525
6,071
$5, 231
5, 873
5,676
6, 134
5,855
6,343
$5, 389
5,882
5,595
6,254
5,843
6,323
$5, 762
5,711
5,392
6,458
5,864
6, 193
$5, 914
5, 817
5,531
6,512
6,218
5,483
5,444
5,743
6,949
5,912
5,585
5,298
5, 574
5,423
5,564
6,888
5,754
5,350
4,883
5,659
5,447
5,512
6,693
5,800
5,394
4,946
5,905
5,408
5,525
6,794
5,799
5,400
4,980
5,671
5,239
5,502
6,426
5,684
5,451
5, 082
5,392
5,272
5,957
6,569
5,687
5,314
5, 144
5, 193
6,081
6,065
6,977
6,622
6,621
6,573
5,215
6,021
5,925
6,762
6,022
2
6, 501
5,835
5, 137
5,702
6,084
6,262
5,417
5,681
5,479
5, 169
5,763
6,084
6,212
5,412
5,902
5,497
5, 180
5,829
6,033
6,260
5,414
5,927
5,590
5, 195
5,688
6,017
6,516
5,628
5,903
5,882
5, 164
5,950
6,061
6,586
5,981
6,099
5, 195
5,545
5,621
6,452
5, 903
5,927
5,830
6,898
5, 514
6,071
6,363
7,003
6, 774
5,504
6, 103
6,352
6,739
6. 199
5,254
5, 320
6,250
6,777
6, 199
5, 250
5,311
6,289
6,777
6, 199
5,256
5,419
6,308
6,745
6,157
5,410
5,783
6, 393
6,573
6,695
5,874
6, 098
6,363
6,634
6,053
5,800
6, 137
6, 280
6, 360
$0. 261
. 281
_ _|
.263
. 282
__
. 256
.268
$0. 225
. 245
. 233
.261
. 243
.263
$6, 260
6,737
6,304
6,775
6, 133
6,428
No. 5—Cincinnati:
Lexington, Ky_
Louisville, K y
Cincinnati, Ohio
Cleveland, Ohio ...
Columbus, Ohio
Memphis, T e n n
Nashville, T e n n
.231
.262
.239
.287
. 249
.255
.231
.246
.225
.230
.283
. 242
. 225
.207
5,555
6,285
5,732
6,877
5,965
6, 109
5,537
No. 9—Little R o c k :
Little Rock, Ark .
New Orleans, La_
Jackson, Miss
Albuquerque, N . Mex
Dallas, Tex
_
Houston, Tex
San Antonio, Tex__ .
.216
. 253
.253
. 291
.276
.276
.274
.216
.243
. 251
.261
.226
. 247
.233
No. 12—Los Angeles:
Phoenix, Ariz
Los Angeles, Calif. _
San Diego, Calif
San Francisco, Calif _ _ __
Reno, Nev_ __
.287
.230
.253
. 265
.292
.258
. 219
. 226
.263
. 281
$6,
6,
6,
6,
5,
6,
$5, 500
5, 765
5,524
6, 356
5,652
5,894
5,686
6,320
5, 938
5, 436
5, 281
i The house on which costs are reported is a detached 6-room home of 24,000 cubic feet volume. Living room, dining room, kitchen, and lavatory on first floor; three
bedrooms and bath on second floor. Exterior is wide-board siding with brick and stucco as features of design. Best quality materials and workmanship are used
throughout.
The house is not completed ready for occupancy. It includes all fundamental structural elements, an attached 1-car garage, an unfinished cellar, an unfinished attic,
a fireplace, essential heating, plumbing, and electric wiring equipment, and complete insulation. It does not. include wall-paper nor other wall nor ceiling finish on interior
plastered surface, lighting fixtures, refrigerators, water heaters, ranges, screens, weather stripping, nor window shades.
Reported costs include, in addition to material and labor costs, compensation insurance, and allowance for contractor's overhead and transportation of materials,
pius 10 percent for builder's profit.
Reported costs do not include the cost of land nor of surveying the land, the cost of planting the lot, nor of providing walks and driveways; they do not include
architect's fee, cost of building permit, financing charges, nor sales costs.
In figuring costs, current prices on the same building materials list are obtained every three months from the same dealers, and current wage rates are obtained from
the same
reputable contractors and operative builders.
2
Revised.
Table 4.—Index of building costs for the standard house
[Average month of 1935-1939=100]
, E l e m e n t of cost
Material
Labor
T o t a l cost
200
._
Jan.
1941
Dec.
1940
Nov.
1940
Oct.
1940
Sept.
1940
Aug.
1940
July
1940
June
1940
May
1940
April
1940
Mar.
1940
Feb.
1940
Jan.
1940
106.6
114. 5
105.9
112.5
104.6
109.8
103.4
106.9
101.9
104.8
101.4
103. 6
101.2
103. 4
101.3
103.5
101. 3
103. 7
101.2
103.8
101.4
104. 1
101.5
104.2
101.4
104.0
109.3
108. 1
106.4
104.6
102. 9
102. 1
102.0
102. 1
102. 2
102. 1
102.3
102.4
102.3
Federal Home Loan Bank Review
Table 5.—Index of wholesale price of building materials in the United States
[1935-1939=100]
[Source: U. S. D e p a r t m e n t of Labor]
Paint and
paint materials
Plumbing
a n d heating
Structural
steel
101. 9
99. 6
103.4
103.5
100.3
100. 3
100. 1
99. 1
99.3
99. 4
99.4
99.4
99. 4
99.5
99. 7
99.8
109. 9
108. 8
108. 5
107.7
106. 9
105.6
105. 6
109.6
119.3
127.4
130. 8
132. 3
107. 2
106. 7
107. 2
106. 6
105. 7
104. 7
104. 0
103.5
103.4
104.3
105. 4
105.0
104. 2
103. 9
106.4
106.3
105. 9
105. 8
105.8
105.8
105.8
105. 8
105. 8
105.8
103.5
103.5
103. 5
103.5
103. 5
103. 5
103.5
103.5
103. 5
103. 5
103.5
103.5
100.
100.
100.
99.
99.
100.
8
5
2
8
7
6
101.
101.
101.
101.
101.
2
0
1
4
9
100. 5
99. 7
131.9
106.6
105.8
103.5
102. 6
+ 0.2%
-0.3%
-0.1%
-0.6%
-0.3%
+ 29.4%
+ 1.5%
- 0 . 6%
0.0%
+ 1.5%
0.0%
0.0%
All building m a t e rials
Brick a n d
tile
Cement
99.9
101. 7
99.4
1940: J a n u a r y
February
March
April
May
June
July
August
September
October
November
December
104.3
104. 1
104.2
103. 3
103.3
103. 2
103. 5
104. 4
105. 6
109.2
110.4
110.9
100. 8
100.4
99. 5
99.3
99. 3
99. 3
99.2
99.2
99. 3
99.3
99. 3
100. 3
1941: J a n u a r y
111.2
Period
1939: J a n u a r y
Change:
Jan. 1941-Dec. 1940___
J a n . 1941-Jan. 1940-—
+ 0. 3%
+ 6.6%
Lumber
Other
96. 9
102. 2
+ 1.8%
Table 6.—Estimated volume of new home-mortgage loans by all savings and loan associations, by
purpose and class of association
[Thousands of dollars!
Purpose of loans
Class of association
Period
1939
January
1940
January
February
March
April
May
June
July
August
September
October
November
December
Construc- Home pur- Refinancing
chase
tion
Reconditioning
Loans for
all other
purposes
Total
loans
Federals
State
members
Nonmembers
$301, 039
$339, 629
$182, 025
$59, 463
$104, 227
$986, 383
$400,337
$396, 041
$190,005
16, 099
17, 503
11,749
3, 389
6,827
55, 567
20, 894.
23, 071
11, 602
398, 632
426, 151
198, 148
63, 583
113,065
1,199,579
509, 713
483, 499
206, 367
19, 488
20, 152
26, 711
33, 764
36, 956
35, 523
39, 907
42, 488
39, 417
41, 610
32, 584
30, 032
22, 039
25, 389
32, 168
37, 821
42, 049
38, 402
40, 658
40, 567
40, 947
40, 771
33, 875
31, 465
13, 999
14, 590
16, 769
20, 859
18, 034
17, 147
17, 649
17, 762
15, 483
16, 840
14, 441
14, 575
3,455
3,437
4,657
6,097
6,896
5,691
6,115
6,079
6,283
5,756
4,869
4,248
7,963
7,954
10,063
9,460
10,607
10,221
9,972
10,726
9,645
9,423
8, 798
8,233
66,944
71,522
90, 368
108,001
114, 542
106, 984
114,301
117,622
111, 775
114,400
94,567
88,553
28, 008
29, 786
38, 241
46, 577
49, 287
47, 435
48, 676
50, 305
46, 480
48, 307
38, 896
37, 715
25, 737
28, 941
36, 484
43, 015
45, 803
42, 214
45, 414
46, 807
45, 988
46, 224
40, 143
36, 729
13, 199
12, 795
15, 643
18, 409
19, 452
17, 335
20, 211
20, 510
19, 307
19, 869
15, 528
14, 109
26, 662
27, 809
13, 645
3,784
8, 540
80, 440
34, 360
33, 947
12, 133
1941
January
Marc* 1947
20!
Table 7.—Estimated volume of new home-mortgage loans by all savings and loan associations, by
Federal Home Loan Bank District and class of association
[Amounts are shown in t h o u s a n d s of dollars]
Percent
change,
Dec.
J a n u a r y Decem- 1940 to
Jan.
ber 1940
1941
1941
New loans
Federal H o m e Loan B a n k District a n d clas s of association
United
States: Total
Federal
State member
Nonmember..
$80,
34,
33,
12,
440 $88, 553
360 37, 715
947 36, 729
133 14, 109
9.2
-8.9
-7.6
-14.0
New
loans,
Jan.
1940
$66,
28,
25,
13,
Percent
change, i
Jan.
1940 to
Jan. 1
1941
944
008
737
199
9, 685
3, 395
4,728
1,562
-14. 8
-21.7
-8.8
-17.9
5,862
2,206
2,695
961
+
+
+
+
7,424
2,299
2, 293
2,832
8,492
2,571
2,837
3,084
-12.6
-10.6
-19.2
-8.2
6,979
2,547
1,671
2,761
5,666
2,414
1,591
1,661
7,162
3,038
1,735
2,389
-20.9
-20.5
-8.3
-30.5
District N o . 4 : T o t a l . _
FederaL
State member. _
Nonmember
11,551
5,268
5, 223
1,060
13, 782
6, 159
5,655
1,968
District N o . 5: T o t a l _
Federal __
State member
Nonmember
12, 904
4,861
6, 181
1,862
_
District N o . 2 : T o t a l
Federal
State member
Nonmember..
J
District N o . 3 : T o t a l __
FederaL
State member
Nonmember
1940.
1939
1938
1937
+ 2 0 . 2 $1, 199, 579 $986,383 $797,996 $896, 579
+ 22. 7
509,713 400, 337 2 8 6 , 8 9 9
307, 278
483, 499 396,041
+ 31. 9
333,470 1 379, 286
206, 367 190, 005 177, 627 210,015
-8. 1
8,254
2,657
4,314
1,283
District N o . 1: T o t a l
Federal
State member
Nonmember
T o t a l new loans
115,
39,
56,
19,
289
680
561
048
90,379
28,013
43,800
18,566
74,
20,
36,
17,
733
744
096
893
85,
20,
39,
25,
627
902
113
612
+ 6.4
-9.7
+ 37.2
+ 2. 6
115,
33,
32,
48,
475
579
936
960
96,233
36, 890
22, 602
36, 741
77,
22,
19,
34,
617
807
999
811
83,
20,
22,
40,
335
961
072
502
5,402
1,756
1,358
2,288
+ 4. 9
+ 37. 5
+ 17.2
-27.4
93,
36,
23,
32,
084
563
538
983
79,
22,
20,
35,
284
726
597
961
62,
12,
17,
31,
561
981
842
738
67,
12,
19,
36,
781
438
102
241
-16. 2
-14.5
-7.6
-46. 1
10, 297
4,563
4, 137
1,597
+ 12. 2
+ 15.5
+ 26.3
-33. 6
174,
84,
69,
20,
909
895
195
819
138,
57,
59,
22,
817
368
287
162
111,
39,
52,
19,
104
102
197
805
112,
40,
52,
19,
307
377
673
257
13, 020
5,056
6,333
1,631
-0.9
-3.9
-2.4
+ 14.2
9,525
3,726
4, 132
1,667
+
+
+
+
35. 5
30.5
49.6
11.7
198,
73,
96,
29,
767
462
111
194
156,
62,
75,
19,
944
054
059
831
121,
47,
55,
18,
652
212
556
884
166,
57,
80,
28,
270
278
096
896
40.8
20.4
60. 1
33.5
!
District N o .
_ __
6: T o t a l _
Federal
State m e m b e r
Nonmember
4,357
2,287
1,851
219
4,674
2,379
2,092
203
-6.8
-3.9
-11.5
+ 7.9
3,338
1,601
1,480
257
+ 30.5
+ 42.8
+ 25. 1
-14.8
62,
31,
28,
3,
889
318
103
468
48, 310
22, 734
22, 258
3,318
35, 617
16, 520
16, 021
3,076
41, 032
18, 900
18, 026
4,106
District No.
7: T o t a l
Federal _ _ __
State member
Nonmember
8,080
2,849
3,718
1,513
8,946
3,650
4,061
1,235
-9.7
-21.9
-8.4
+ 22.5
6,881
2,409
3,011
1,461
+ 17.4
+ 18.3
+ 23. 5
+ 3. 6
121,
47,
55,
18,
842
992
428
422
98,
34,
43,
20,
382
286
685
411
78,
26,
33,
18,
865
519
709
637
93,
28,
45,
19,
037
474
194
369
District No.
8. T o t a l __
FederaL
State member
Nonmember.. _
3,679
2,003
1, 182
494
4,317
2, 115
1,358
844
-14.8
-5.3
-13.0
-41. 5
3,742
1,526
1, 165
1,051
-1.7
+ 31. 3
+ 1.5
-53.0
71,
34,
21,
14,
461
999
885
577
61,
29,
18,
13,
776
301
841
634
48,
20,
16,
11,
239
251
102
886
49,
21,
15,
12,
211
224
980
007
District No.
_ _ _
9 Total
Federal
State m e m b e r
Nonmember
4,407
1,842
2,419
146
4,722
1, 735
2, 792
195
-6.7
+ 6.2
-13.4
-25. 1
3,809
1,564
2, 114
131
+
+
+
+
15. 7
17.8
14.4
11.5
59,
23,
34,
2,
951
754
063
134
56,
23,
31,
2,
917
029
796
092
48,
18,
27,
2,
699
778
591
330
45, 081
16, 186
25, 950
2,945
+ 3.1
-3.2
+ 1.9
+ 21.4
2,905
1,437
697
771
+
+
+
+
20. 1
26.7
15.9
11.7 i
51, 052
26, 818
11, 960
12,274
47,
23,
12,
12,
505
340
162
003 |
41,
18,
12,
10,
148
116
290
742
46,
18,
12,
15,
476
979
421
076
+ 7.4
+ 6.1
+ 13.5
-22.4
2, 271 1 +31.4 !
1, 422 i + 3 4 . 2
+ 32.4 ;
756
93
-18. 3 !
41,275
25, 615
13,800
1, 860
34,
20,
12,
2,
673
550
028
095
28,
15,
9,
2,
007
426
608
973
33,
19,
12,
1,
839
755
266
818
District N o . 10: T o t a l
FederaL
State member
Nonmember..
District N o . 11 T o t a l
FederaL
State member
Nonmember
District N o . 12: T o t a L
Federal
State m e m b e r
Nonmember..
202
3, 384
3,490
1,821 1 1, 882
808 |
793
709
861 '
i
2 , 9 8 5 | 2,779
1,908 ! 1,799
882
1, 001 !
98
76 ;
1
7, 643 ! 7, 590
4, 151 ! 3,936
3,366 ! 3,463
126 !
191 1
5, 933
+ 0.7
3, 251
+ 5.5
- 2 . 8 1 2, 521
161 1
-34.0
+ 28.8 !
+ 27. 7
+ 33. 5
-21. 7
72, 583
77, 163
69, 754
93, 585
32, 004
28, 443
40, 046
51, 038
36, 459
36, 393
33, 926
39, 919
4, 852 1
4, 186
2, 628 1
3, 191 1
Federal Home Loan Bank Review
Table 8.—Summary of estimated nonfarm mortgage recordings,1 $20,000 and under,
during January 1941
Federal
Home
Loan
Savings & loan
associ ations
Bank
Number
Amount
Insu ranee
comp anies
( A m o u n t s s h o w n are i n t h o u s a n d s of dolJ a r s )
Other
Bank s and
Mut ual
Indi viduals
mortgagees
t rust c ampanies saving 3 banks
Numbe r Amount
Number
Amount
34,459 $89,996 5,523 $27,691 24,204 $78,977
UNITED STATES _.
Number
Amount Number
Amount
Number
Amount
Total
Number
Amount
3,392 $12,931 28,494 $53,891 13,617 $44,154 109,689 $307,640
2,660
9,001
135
807
871
3,411
1,866
6,768
1,893
4,479
511
1,810
7,936
26,276
Connect icut
Maine
Massachusetts
New Hampshire
Rhode Island
235
205
1,823
114
213
70
869
517
6,424
228
823
140
98
3
21
626
10
115
13
56
342
129
275
24
86
15
1,476
313
1,093
130
319
80
393
204
902
166
99
102
1,611
568
3,164
678
330
417
393
246
1,075
45
106
28
963
421
2,657
93
288
57
271
25
151
7
53
4
2,002
6,360
348
1,916
1,809
6,887
1,099
4,542
2,624
6,297
1,404
1,732
812
4,247
356
570
219
9,285
6,604
1,885
13,954
1,134
2,002
697
No. 2 — N e w York__
1,059
56
501
5
186
3
5,622
31,624
New Jersey
New York
827
1,175
2,594
3,766
179
169
937
979
1,137
672
4,490
2,397
64
1,035
369
4,173
985
1,639
2,425
3,872
620
784
2,253
3,359
3,812
5,474
13,078
18,546
2,373
6,105
315
1,582
2,086
6,827
151
595 1,662
3,751
921
3,036
7,508
21,896
31
1,989
353
113
5,'279
713
14
244
57
91
1,216
275
51
1,469
566
239
5,381
1 ,207
12
130
9
25
565
5
68
1,274
320
151
3,064
536
19
706
196
54
2,706
276
195
5,812
1,501
673
18,211
3,012
5,622
13,631
745
3,542
2,723
7,308
33
137 4,827
8,295
1,813
4,744 15,763
37,657
153
405
553
729
891
1,636
348
907 ,
244
2,120
1,458
1,216
2,353
3,334
731
2,175
65
74
278
76
36
121
27
68
289
567
1,171
363
201
525
116
310
252
118
332
448
264
532
272
505
612
805
782
861
897
1,397
478
1,476
33
137
321
289
796
827
369
876
606
743
552
876
1,520
1,130
880
1,075
572
1,690
161
179
387
282
118
299
114
273
952
1,065
2,346
2,362
1,711
3,464
1,367
2,496
2,010
5,299
5,813
4,271
4,779
7,108
2,047
6,330
5,073
14,727
664
3,520
2,495
8,681
73
360 1,772
3,323
1,223
3,548 11,300
34,139
846
4,021
206
1,876
12,385
466
130
345
189
570
2,264
686
420
1,685
390
1,235
6,180
1,246
73
III
1,224
437
189
2,462
672
97
487
639
295
1,894
1,359
1,604
7,835
1,861
4,165
25,545
4,429
2,627
5,632
812
3,748
2,654
7,253
23
37 1,233
2,591
872
3,081
8,221
22,342
1,841
786
3,413
2,219
375
437
1,656
2,092
926
1,728
2,552
4,701
23
37
736
1,855
280
592
764
2,317
3,884
4,337
9,158
13,184
No. I—Boston
No. 3—Pittsburgh
Delaware
Pennsylvania
West Virginia
_
No. 4—Winston-Salem__
_
Maryland
North Carolina
Kentucky
Ohio
Tennessee
No. 6—Indianapolis
Amount
.'per
capita
(nonfarm)
360
439
794
313
931
882
701
311
777
150
679
$3.33
4.34
3.01
3.38
2.82
2.98
2.83
3.34
1.56
3.51
2.08
2.35
1 .54
10.89
4.89
2.87
3.43
4.53
2.49
4.30
2.90
4.53
3.16
3.78
3.25
3,159
9,047
369
1,870
1,552
5,666
4
II 2,002
4,355
1,484
6,210
8,570
27,159
111inois
Wisconsin
2,499
660
7,262
1,785
259
110
1,390
480
1,039
513
4,107
1,559
4
1,144
858
2,603
1,752
1,295
189
5,602
608
6,236
2,334
20,964
6,195
Ho. 8 — D e s Moines
2,400
5,221
474
2,287
1,931
4,956
23
86 2,064
3,632
1,181
3,432
8,073
19,614
595
842
823
82
58
1,104
1,967
1,896
173
81
91
173
147
24
39
445
786
885
54
117
510
529
794
37
61
1,216
1,166
2,368
45
161
406
835
700
66
57
633
1,741
1,095
110
53
132
155
870
19
5
289
450
2,652
32
9
1,734
2,557
3,334
228
220
3,687
6,196
8,896
414
421
2.47
3.71
3.54
1.46
1.39
2,289
271
544
134
61
1,279
5,358
390
1,721
201
139
2,907
739
3,354
216
512
ISO
33
2,433
900
51
108
37
10
533
150
76
131
120
413
2,687
364
192
309
395
1,427
2,131
223
380
172
91
1,265
3,717
328
699
279
143
2,268
1,312
101
247
83
22
859
4,163
271
701
185
41
2,965
7,371
806
1,355
557
304
4,349
19,279
1,569
3,82^
1,134
751
12,000
2.13
3.01
1 .75
2.84
3.46
2,002
4,081
193
910
712
1,643
1,589
2,379
792
2,110
5,288
11,123
233
560
430
779
571
1,002
810
1,698
33
34
65
61
105
156
313
326
III
250
97
254
250
524
294
575
584
205
187
613
1,024
300
274
781
238
149
73
332
735
382
171
822
1,199
1,198
852
2,039
2,685
2,374
1,862
4,202
1,412
3,091
253
888 1,083
2,758
120
395 1,151
1,727
618
1,897
4,637
10,756
126
101
352
115
664
54
225
283
826
278
1,315
164
8
20
86
26
112
1
42
85
332
81
346
2
56
50
169
235
503
70
174
173
412
725
1,025
249
7
24
113
371
148
125
415
106
288
69
287
232
517
150
411
120
66
29
130
55
306
32
240
56
398
85
1,019
99
404
325
1,159
, 537
1,936
226
968
829
2,509
1,329
4,487
634
No.12—Los Anaeles
2,840
7,742
476
3,267
5,388
20,920
5,546
9,345
1,486
4,501 15,736
45,775
Ar izona
California
Nevada
70
2,755
15
209
7,487
46
10
464
2
83
3,166
18
106
5,258
24
388
20,446
86
234
5,260
52
533
8,693
119
45
1,431
10
465
112
4,364 15,168
103
25
1,325
44,156
294
No. 7 — C h icago
Iowa
North Dakota
South Dakota__.i
No. 9—Little Rock
Lou isiana
No.I0--Topeka
Colorado
Kansas
Nebraska
Oklahoma
_
No. I I—Portland.._
Idaho
Montana
Oregon
Utah...
Washinaton
Wyoming
_
23
II
86
3.16
3.01
3.57
2.02
2.35
3.06
3.77
2.49
3.44
3 39
3.56
4J6
3 94
8 73
3.94
l!
3ased UDon county reports s ubmitted through the cooperation of savings and loan associations, the U. S. Savings and Loan League, the Mortgage
Bankers Association, and the American Title Association.
March 1941
203
Table 9.—Estimated volume of nonfarm mortgages recorded, by type of mortgagee
[Amounts are shown in thousands of dollars]
Savings and
loan associations
Insurance
companies
Mutual
savings
banks
Banks and
trust
companies
Individuals
Other
mortgagees
All
mortgagees
Period
Number:
1940: J a n u a r y
February. _
March
April
M a y . . __
June
July
August
September.
October
November..
December. _
1941: J a n u a r y
Amount:
1940: J a n u a r y
February _ .
March
April
May
June
July
August
September.
October
November _
December.
1941: J a n u a r y
Total
Percent
30, 005
31,015
38, 734
44, 188
49, 166
45, 564
46, 667
46, 706
45, 595
48, 145
39, 180
37, 984
31. 3
32.8
34.7
35.4
36.3
36.0
35.3
34.7
35.5
34.8
33. 5
32.8
4,392
4,240
4,631
5,484
5,887
5,922
6,228
6,525
6,091
6,977
5,816
5, 73P
34, 459 3 1 . 4
5, 523
$74,711
76, 944
96, 244
110, 787
123, 485
116,595
118,914
121, 979
117,928
125, 009
102, 267
98, 765
Total
2 8 . 4 $21,
30. 1 21,
3 2 . 0 23,
3 2 . 5 27,
33. 1 29,
3 2 . 8 28,
3 2 . 4 30,
32. 4 31,
3 3 . 0 29,
3 2 . 2 33,
31. 2 27,
3 0 . 2 28,
989
350
084
091
075
909
602
839
401
818
900
666
89, 996 29. 3 27, 691
^al 1 ££ T o t a l
Percent
Total
Percent
25. 9
25.6
24.7
23.7
22. 7
22.0
22. 4
22.9
21. 9
22. 1
23. 6
24.0
12, 844
12, 548
13, 655
15, 341
17,219
16, 126
16, 837
17, 178
16, 391
16, 975
14, 239
14, 680
13.4
13.2
12. 2
12.3
12.7
12.7
12.7
12.8
12. 8
12.3
12. 2
12.7
Combined
total
Total
Percent
4. 6
4.5
4.2
4. 4
4.3
4.7
4.7
4.8
4.7
5.0
5. 0
4.9
21,061
20, 110
24, 288
26,711
28, 495
26, 986
28,511
29, 137
27, 924
31, 202
25, 988
25, 837
22. 0
21.2
21.7
21.4
21.0
21.3
21. 6
21.6
21.7
22. 5
22. 3
22.3
2, 675
2,548
2,823
3,465
4, 111
4,237
4,328
4,298
4,257
4,548
4,024
3,847
2. 8
2.7
2.5
2.8
3.0
3.3
3.3
3.2
3.4
3.3
3.4
3. 3
5.0
24, 204 22. 1
3, 392!
3. 1 28, 494 26. 0 13, 617 12. 4 109, 689 100.0
Percent
8.4 $66,
8 . 4 62,
7 . 7 75,
8 . 0 82,
7 . 8 91,
8. 1 87,
8 . 3 92,
8.4 93,
8.2 89,
8.7 98,
8. 5 82,
8.8 83,
9.0
342
065
650
569
164
552
658
931
051
462
971
426
25. 3 $10, 520
9,485
24.3
2 5 . 2 10, 543
2 4 . 3 13, 122
2 4 . 5 15, 394
2 4 . 6 16, 493
2 5 . 3 16, 067
2 4 . 9 15, 903
2 4 . 9 15, 566
2 5 . 3 16, 826
25. 4 15, 122
2 5 . 5 14, 918
78, 977 25. 7| 12, 931 !
4. 0 $48,
3 . 7 45,
3 . 5 51,
3 . 9 56,
4. 1 58,
4. 7 52,
4. 4 55,
4. 2 56,
4 . 4 52,
4 . 3 59,
4. 6 51,
4 . 6 51,
4. 2
1
Table 70.—Estimated nonfarm real estate foreclosures, by size of county
24,
24,
27,
29,
30,
27,
29,
30,
28,
30,
27,
27,
884
193
658
532
704
896
689
858
164
635
507
823
026
333
596
561
372
973
191
770
936
124
504
964
18. 3 $41,
17.7 40,
1 7 . 2 43,
16.6 50,
15.7 54,
14.9 52,
15.0 53,
15. 1 56,
14. 8 52,
15. 2 55,
15.7 47,
15. 9 48,
095
451
303
203
981
941
622
394
636
734
621
885
95, 861
94, 654
111,789
124, 721
135, 582
126, 731
132, 260
134, 702
128,422
138, 482
116, 754
115,907
15. 6 $262,
1 5 . 8 255,
14. 4 300,
1 4 . 7 340,
1 4 . 8 372,
14. 9 355,
14. 6 367,
1 5 . 0 376,
1 4 . 7 357,
1 4 . 3 388,
14. 6 327,
15.0 326,
U. S.
total
Table
I
6,483!
5,818|
6,379j
6, 404!
7,138!
6,5971
6, 293!
6, 128|
6, 294!
6,305!
5, 832|
5,639
708
633:
608
6581
712
709
667
595
539
618
603
635
966
860
941
948
1,088
1,043
909
835
1,018
897
832
819
1941: J a n u a r y .
5,474!
6071
800
1
!
1,307
1,212
1,395
1,313
1,539
1,301
1,269
1,338
1,355
1,319
1,343
1, 103
3,502
3, 113
3,435
3, 485
3, 799
3, 544
3,448
3,360
3,382
3,471
3,054
3,082
1, 180 2 , 8 8 7
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
11.—Property operations of the H ome
Owners1 Loan Corporation
Number
of properties
acquired 1
Number
of properties
sold
Number
of p r o p erties
on h a n d a t
end of
month
1940: J a n u a r y . _ _
February
March
April. _
_
May.
June
_
July
August
September
October
November. _ .
December _
1,619
1,344
1,697
1,388
1,531
1, 611
1,694
1, 758
1, 701
1, 719
1,728
1,580
3,046
2,994
3,980
4, 654
4,720
4,801
3,355
3,691
3,619
3,886
3, 253
2,706
75,
74,
71,
68,
65,
62,
60,
58,
56,
54,
52,
51,
1941: J a n u a r y
1,638
2, 425
50, 865
1
204
683
628
420
333
471
463
054
816
518
973
385
624
53,891 1 7 . 5 44, 154 1 4 . 3 307, 640 100.0
Period
60,000
}h^
i 5,000- 20,000- and
59,999
1 9 9
over
5,000 !
' "
i
1940: J a n u a r y . . .
February.. _
March . . .
April
M a y . . . _ __
June.. _
July
August.. _
September
October
November
December
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100. 0
100.0
!
C o u n t y size (dwellings)
Period
Percent
._ _
796
113
821
535
326
127
470
524
598
433
878
722
Includes reacquistions of properties previously sold.
Federal Home Loan Bank Review
Table 12.—Progress of institutions insured by the Federal Savings and Loan Insurance Corporation
[Amounts are shown in thousands of dollars]
Period and class
of association
Number of
associations
Total
assets
N e t first
mortgages
held
Private
repurchasable
capital
Government
investment
Federal
Home
Loan
Bank
advances
Operations
N u m b e r of
investors
New
private
investments
Private
repurchases
Newmortgage
loans
ALL INSURED
2, 170 $ 2 , 3 3 9 , 4 1 1 $1,769, 112 $1, 657, 859 $260, 451 $127, 062
1939: June
December- 2, 195 2, 506, 944 1, 943, 852 1, 811, 181 250, 725 142, 729
1940: J a n u a r y . _
February.
March
April. —
May.
._
JuneJuly
August—
September
October..
November
December
2,205
2,211
2,216
2,225
2,231
2,235
2,237
2,248
2,259
2,264
2,269
2,276
1941: J a n u a r y . _ 2,282
2,
2,
2,
2,
2,
2,
2,
2,
2,
2,
2,
2,
2, 236, 000 $40, 700 $15, 800 $55, 848
2, 386, 000 48, 400 17, 445 49, 516
121, 271
111,277
104, 993
101, 569
104, 546
124, 133
129, 909
136, 244
144, 997
150, 700
154, 802
171, 347
2,
2,
2,
2,
2,
2,
2,
2,
2,
2,
2,
2,
2, 262, 692
216, 485
141, 450
2, 802, 700 127, 490
1, 959, 678
1, 980, 887
2,011,281
2, 050, 052
2, 089, 761
2, 129, 687
2, 167, 366
2, 208, 016
2, 250, 905
2, 291, 477
2, 317, 292
2, 342, 804
1,
1,
1,
1,
1,
2,
2,
2,
2,
2,
2,
2,
2, 929, 247
2, 359, 057
868, 736
901, 162
928, 835
958, 417
981, 445
019, 809
039, 739
059, 097
085, 410
114,831
143, 360
202, 135
238,
236,
236,
236,
236,
236,
220,
220,
220,
220,
220,
220,
461,
504,
528,
546,
560,
591,
610,
634,
664,
695,
706,
772,
000 102, 571
000 55, 332
200 51, 377
800 55, 809
900 46, 655
600 43, 626
200 86, 496
300 51, 025
200 46, 203
800 53, 982
300 49, 990
400 65, 586
496
854
714
508
553
913
893
081
569
629
689
789
513, 765
543, 417
576, 885
615, 190
653, 685
708, 529
706, 259
742, 287
789, 391
832, 083
867, 817
931, 781
57,
28,
27,
28,
27,
20,
73,
36,
30,
30,
25,
22,
096
042
195
123
150
418
111
060
928
286
278
865
40,
43,
56,
68,
70,
67,
70,
72,
68,
71,
57,
56,
342
950
270
034
990
751
943
214
665
380
686
363
75, 228
52, 270
FEDERAL
1939: June
December.
1,383
1,397
1, 441, 058
1, 574, 314
1, 135, 511
1, 268, 872
990, 248
1, 108, 481
217, 026
208, 777
88, 298
105, 870
1,299, 100
1, 412, 200
27, 000
32, 000
8, 100
9,231
39, 094
34, 053
1940: J a n u a r y _._
February..
March
April
May
June__ - .
July
September.
October....
November
December1
1,400
1,403
1,408
1,411
1,415
1,421
1,422
1,427
1,430
1,433
1,435
1,438
1, 574,
1, 597,
1, 623,
1, 655,
1, 685,
1, 727,
1, 724,
1, 750,
1, 775,
1, 804,
1, 829,
1, 872,
268
550
767
179
324
337
821
870
555
397
939
691
1, 279, 803
1, 296, 198
1, 317, 641
1, 346, 608
1, 375, 683
1, 403, 933
1, 430, 982
1, 461, 440
1, 487, 489
1, 514, 872
1,532,745
1, 545, 838
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
410
480
882
025
973
156
590
572
421
364
761
839
197, 751
196, 701
196, 619
196, 813
196, 933
197, 268
181, 724
181, 256
181, 261
181, 371
181,381
181, 431
87, 592
79, 391
74, 495
71, 577
74, 428
90, 489
95, 175
99, 985
106, 674
110,583
114,070
127, 255
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
700
100
000
500
000
900
000
100
400
800
600
200
71, 367
36, 951
35, 500
39, 329
31,915
29, 404
60, 489
34, 871
31, 184
37, 309
34, 092
44, 531
37, 689
15, 942
16, 200
16, 679
16, 124
11,022
49, 244
22, 643
19, 414
18, 583
14, 867
12, 135
28, 008
29, 786
38, 241
46, 577
49, 287
47, 435
48, 676
50, 305
46, 480
48, 307
38, 896
37,715
1941: J a n u a r y 2 -
1,439
1, 872, 744
1, 563, 038
1, 436, 443
177, 265
102, 973
1, 709, 800
87, 950
49, 852
34, 360
1939: J u n e
December.
787
798
898, 353
932, 630
633, 601
674, 980
667,611
702, 700
43, 425
41, 948
38, 764
36, 859
936, 900
973, 800
13, 700
16, 400
7,700
8,214
16, 754
15, 463
1940: J a n u a r y . _
February.
March
April
May .
June
July
August
September
October. _
November
December.
805
808
808
814
816
814
815
821
829
831
834
838
1,
1,
1,
1,
939,
945,
953,
960,
968,
981,
981,
991,
013,
027,
037,
059,
679,
684,
693,
703,
714,
725,
736,
746,
763,
776,
784,
796,
719,
725,
730,
736,
741,
752,
757,
761,
775,
785,
793,
814,
40,
40,
40,
39,
39,
39,
39,
38,
39,
39,
39,
39,
33,
31,
30,
29,
30,
33,
34,
36,
38,
40,
40,
44,
998,
007,
013,
017,
022,
030,
036,
043,
061,
071,
078,
107,
31,
18,
15,
16,
14,
14,
26,
16,
15,
16,
15,
21,
1941: J a n u a r y . _
843
1, 056, 503
August
149,
175,
197,
222,
239,
267,
282,
297,
309,
329,
349,
387,
462,
496,
515,
529,
538,
560,
574,
591,
602,
624,
627,
665,
STATE
497
867
118
011
361
192
438
417
836
686
878
090
875
689
640
444
078
754
384
576
416
605
547
966
796, 019
326
682
953
392
472
653
149
525
989
467
599
296
826, 249
745
153
095
695
620
645
169
825
308
258
308
358
39, 220
679
886
498
992
118
644
734
259
323
117
732
092
38, 477
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
1,
300
900
200
300
900
700
200
200
800
000
700
200
1, 092, 900
204
381
877
480
740
222
007
154
019
673
898
055
19, 407
12, 100
10, 995
11, 444
11,026
9,396
23, 867
13, 417
11,514
11,703
10,411
10, 730
12,
14,
18,
21,
21,
20,
22,
21,
22,
23,
18,
18,
334
164
029
457
703
316
267
909
185
073
790
648
39, 540
25, 376
17, 910
1
In addition, 4 Federals with assets of $675,000 had been approved for conversion but had not been insured as of Dec. 31, 1940. However, included in the 1,438
Federals
is 1 Federal with assets of $16,000 whose insurance certificate was outstanding but whose membership had been canceled.
2
In addition, 4 Federals with assets of $1,792,000 had been approved for conversion but had not been insured as of Tan. 31, 1941. However, included in the 1,439
Federals is 1 Federal with assets of $16,000 whose insurance certificate was outstanding but whose membership had been canceled.
March 1941
205
Table 13.—Lending operations of the Federal
Home Loan Banks
Table 14.—Government investments in savings
and loan associationsl
[Thousands of dollars]
[Amounts are shown in thousands of dollars]
January
1941
Federal H o m e
Loan B a n k
Advances
Boston
N e w York
Pittsburgh.
Winston-Salem
Cincinnati _
Indianapolis _ _
Chicago
Des Moines _
Little Rock__
Topeka_ _
P o r t l a n d __
Los Angeles
Total
Repayments
Treasury
December
1940
Advances
Advances
outstanding,
Repay- Jan. 31,
1941
ments
$376 $2, 329 $1, 663 $523
1, 143
744
558 2 , 7 6 6
764
386 2, 198 1,263
824
4,199
486 7,145
415
1,784
622 2 , 7 7 2
226
1,506
1,648
223
3 , 1 9 3 1,845
3,996
944
721
1,890
43 2 , 9 3 0
138
1,489
2,005
1,796
290
804
1, 184
296
157
1,619
287 2 , 2 6 6
841
126 5,547 2 , 8 8 0
6, 143 36, 786 23, 433 7,488
T y p e of operation
Federals 2
$8, 758
18, 951
15, 574
23, 542
16, 595
10, 355
26, 806
16, 342
7,878
9,008
5,495
11, 545
170, 849
Oct. 1935-Jan. 1941:
Applications:
Number
Amount.
_
Investments:
Number.
Amount
Repurchases _.. .._
N e t outstanding investments ..
J a n u a r y 1941:
Applications:
Number
Amount
Investments:
Number- _
A m o u n t - __
Repurchases ... ...
State
members
Federals
Total
1,862
4, 645
977
5, 622
$50, 401 $203, 901 $64, 737 $268, 638
4, 214
1,831
731
4, 945
$49, 300 $176, 465 $45, 293 $221, 758
$24, 166 $24,334 $5, 850 $30, 184
$25, 134 $152, 131 $39, 443 $191, 574
0
0
0
0
$1, 614
1
2
$450
3
$262
5
$712
0
4
$112
$250
4
$112
$2, 802
$2, 552
1
Refers to number of separate investments, not to number
of 2associations in which investments are made.
Investments in Federals by the Treasury were made
between December 1933 and November 1935.
156, 788
178, 851
J a n u a r y 1940 __ _ 4 , 3 8 6 2 8 , 9 1 1
J a n u a r y 1939
2 , 9 2 3 22, 914
H o m e Owners' Loan
Corporation
Table 15.—Changes in selected types of private long-term savings
[Amounts are shown in thousands of dollars]
A m o u n t s o u t s t a n d i n g a t end of m o n t h
A m o u n t s sold during m o n t h
Period
Life insurance 1
U. S.
savings
bonds 2
$517, 622 $273,044
1940: J a n u a r y
506, 212 144, 665
February _
_ _
567, 872 105, 992
March
April
574, 453 121, 504
64, 267
571, 625
May
49, 600
533, 086
June
72, 997
566, 061
July53, 359
528, 330
August
47, 122
503,427
September. _
52, 221
573, 504
October
_ _
505, 474
50, 080
November
596, 534
82, 207
December
1941: J a n u a r y
Change: Last 6 months-
522, 762 189, 276
Insured
U. S. savings
savings
bonds 4
and l o a n s 3
$102,571
55, 332
51, 377
55, 809
46, 655
43, 626
86, 496
51, 025
46, 203
53, 982
49, 990
65, 586
127, 490
$2,
2,
2,
2,
2,
2,
2,
3,
3,
3,
3,
3,
115
148
582
950
936
699
940
137
626
021
036
793
Mutual
savings
banks 6
Insured
commercial
banks 7
Insured
savings
and loans8
$1, 289, 617
$1, 868, 736
1, 297, 324
1, 901, 162
1, 301, 304
1, 928, 835
1, 302, 552
1, 958, 417
1, 298, 508
1, 981, 445
1, 293, 293 $10, 589, 838 $12, 754, 750 2, 019, 809
1, 296, 722
2, 039, 739
1, 297, 476
2, 059, 097
1, 295, 432
2, 085, 410
1, 295, 859
2, 114,831
1,298,412
2, 143, 360
1, 304, 357 10, 617, 759
2, 202, 135
3, 371, 135
1, 313, 895
+ 13.66%
+ 1.32%
i Life Insurance Sales Research Bureau. Face amount of policies sold, excluding1 group insurance.
U. S. Treasury Daily Statement. Cash sales, including unclassified sales.
3
New private investments; amounts paid in as reported to the FHLBB.
4
V. S. Treasury Daily Statement. Current redemption value.
206
473,
610,
706,
817,
868,
904,
965,
008,
043,
084,
123,
194,
Postal
savings 5
2, 262, 692
+ 0. 2 6 %
+ 10.93%
•U.S. Post Office Department. Outstanding principal, represented by certificates of deposit, excluding accrued interest, outstanding savings stamps, and
unclaimed deposits. Figures for the last three months are preliminary.
• Month's Work. All deposits.
' FDIC. Time deposits evidenced by savings passbooks.
1
Private repurchasable capital as reported to the FHLBB.
Federal Home Loan Bank Review
Directory of Member Institutions
I. INSTITUTIONS ADMITTED TO M E M B E R S H I P ^
T H E FEDERAL HOME LOAN BANK SYSTEM
BETWEEN JANUARY 16 AND FEBRUARY 15, 1941
DISTRICT NO. 5
OHIO:
Cadiz:
The Third Equitable Building & Loan Company, Main & Market
Streets.
Dayton:
The Homestead Loan & Savings Association, 21 East Third Street.
DISTRICT NO. 6
INDIANA:
Salem:
Salem Building Loan Fund & Savings Association, 56 West Side Public
Square.
DISTRICT NO. 7
DISTRICT NO. 1
MAINE:
Old Town:
Old Town Loan & Building Association, 138 Center Street.
DISTRICT NO. 2
N E W JERSEY:
Manasquan:
Mutual Aid Building & Loan Association, Main Street.
Paterson:
Irving Savings & Loan Association, 264 Main Street.
DISTRICT NO. 3
ILLINOIS:
Chicago:
Douglas Savings & Loan Association, 2244^Marshall Boulevard.
WISCONSIN:
Merrill:
Merrill Federal Savings & Loan Association, 927 East Main Street.
DISTRICT NO. 8
MISSOURI:
St. Louis:
Hamiltonian Federal Savings & Loan Association of'St. Louis, 3142
South Grand Boulevard.
PENNSYLVANIA:
Philadelphia:
The Haddington Building & Loan Association, 306 South Fifty-second
Street.
Peirce School Building & Loan Association, 1214 Locust Street.
Insurance Corporation
WITHDRAWALS FROM THE FEDERAL HOME LOAN BANK SYSTEM BETWEEN JANUARY 16 AND FEBRUARY 15, 1941
(Continued from p. 197)
ILLINOIS:
Belleville:
Belleville Security Building & Loan Association, Commercial Building
(voluntary withdrawal).
MARYLAND:
Baltimore:
Samuel Ready Building Association of Baltimore City, 1701 Harford
Road (voluntary withdrawal).
N E W JERSEY:
Beach Haven:
Long Beach Building & Loan Association, 214 Bay Avenue (voluntary
withdrawal).
Newark:
Centre Market Building & Loan Association, 79 Halsey Street (voluntary
liquidation).
Sea Bright:
Sea Bright-Rumson Building & Loan Association, 1096 Ocean Avenue
(voluntary liquidation).
Weehawken:
Fidelity Building & Loan Association of Weehawken, 4220 Park Avenue
(voluntary liquidation).
These reductions in resources more than offset the
$60,000,000 increase in private share capital during
the month.
Insurance of accounts had been extended, by the
close of January, to 2,800,000 investors in 2,282
insured savings and loan associations. The average
capital investment per account was slightly more
than $800, and 98 percent of all accounts in insured
associations were $5,000 or less each.
PENNSYLVANIA:
Pittsburgh:
Bloomfield Building & Loan Association No. 4, 4750 Liberty Avenue
(merger with, and transfer of 15 shares of Bank stock to, Standard Savings & Loan Association of Wilkinsburg, Pa.)
The Merchants' Building & Loan Association of Pittsburgh, Box 743
(merger with, and transfer of 15 shares of Bank stock to, Standard Savings & Loan Association of Wilkinsburg, Pa.)
Fed eral Home Loan Bank System
[Table 13]
W E S T VIRGINIA:
Kingwood:
Kingwood Building & Loan Association (voluntary withdrawal).
II. FEDERAL SAVINGS AND LOAN ASSOCIATIONS
CHARTERED BETWEEN JANUARY 16 AND FEBRUARY 15, 1941
DISTRICT NO. 3
PENNSYLVANIA:
Bristol:
Townsite Federal Savings & Loan Association, 118 Mill Street (converted
from Townsite Building & Loan Association).
Hatboro:
Hatboro Federal Savings & Loan Association, 110 South York Road (new
association).
CANCELATION OF FEDERAL SAVINGS AND LOAN ASSOCIATION CHARTER BETWEEN JANUARY 16 AND FEBRUARY
15, 1941
PENNSYLVANIA:
Philadelphia:
Manufacturers Federal Savings & Loan Association, Broad Street &
German Avenue (merger with, and under name of, Germantown
Federal Savings & Loan Association, Philadelphia, Pennsylvania).
III. INSTITUTIONS INSURED BY THE FEDERAL
SAVINGS AND LOAN INSURANCE CORPORATION
BETWEEN JANUARY 16 AND FEBRUARY 15, 1941
DISTRICT NO. 1
N E W HAMPSHIRE:
Laconia:
Laconia Building & Loan Association, 653 Main Street.
March 1941
•
I N L I N E with the usual seasonal decline at the
beginning of the year, Federal Home Loan Bank
advances outstanding were reduced by $30,643,000
during January, leaving a balance of $170,849,000 at
the end of the month. This was $14,000,000 greater
than the balance outstanding on January 31, 1940.
Repayments of $36,786,000 exceeded any month
since the beginning of operations. New advances
amounting to $6,143,000 represented the second
largest volume of advances ever recorded for the
month of January.
All of the 12 Federal Home Loan Banks reported
lower advances outstanding than in the previous
month. The largest percentage decline was in the
Los Angeles District (32 percent) and the largest
dollar decline was in the Winston-Salem area. The
Federal Home Loan Bank of Little Rock, which
made more new advances in January than in December, registered only a 2.6-percent reduction in the
volume of advances outstanding.
207
The number of members in the Federal Home
Loan Bank System continued to drop as a net result
of 11 withdrawals and six admissions. Of the withdrawals, one was due to the merger of two Federals
and seven were occasioned by liquidation of Statechartered institutions. Aggregate assets of the 3,859
members at the end of January were $5,061,000,000.
TRANSFER OF FEDERAL H O M E LOAN BANK STOCK
On February 24, the Federal Home Loan Bank
stock held by the U. S. Treasury in the amount of
$124,741,000 was transferred to the Keconstruction
Finance Corporation. This transaction was authorized by Act of Congress, Public No. 664, 76th Congress, approved June 25, 1940, and was executed in
accord with the program of recapturing approximately $700,000,000 from the capital funds of various
Government agencies. The transfer of the stock did
not involve any change in the capital structure of
the Federal Home Loan Banks.
Vacancy ratios on Apr. 1 , 1940
[Number of unoccupied dwelling units held for sale or rent as a percent of total
dwelling units]
Ratio
for all
urban
places
State
Alabama
Arkansas
.
2.0
3.1
5.9
California
Colorado
4.0
C onnecticut
2.7
District of Columbia
5.4
F lorida
9.4
Georgia
...
2.4
3.0
...
Indiana
.
2.3
2.3
4.2
3.7
3.1
4.3
3.5
Kentuckv
Maine
Maryland
The Small-Loan Business in 1940
Massachusetts
4.5
Michigan
LOANS extended to consumers by personal
finance or regulated small-loan companies in
the United States during 1940 totaled $869,000,000,
according to a report of the U. S. Department of
Commerce. This figure, which includes loan renewals, exceeded by 15 percent the previous alltime high of 1939.
Consumer repayments to personal finance companies (including theoretical collections on renewed
balances) aggregated $805,400,000 during 1940.
This represents an increase of 16 percent over the
preceding year. Obligations outstanding at the end
of 1940 reached an all-time peak of $473,400,000.
3.2
•
Minnesota
2.6
Mississippi
Nebraska
New Mexico
_
North Carolina
Ohio
Oklahoma
W h a t the Housing Census Reveals . . .
Oregon
Pennsylvania
•
F U R T H E R results of the vacancy counts
undertaken on occasion of the 1940 Housing
Census have been released in recent weeks. Following upon figures for 12 States published in the
November and December issues of the R E V I E W ,
final data are summarized in the accompanying
table for another 36 States and the District of
Columbia. This completes the presentation of
Census results on urban vacancies. For a graphic
illustration of vacancy ratios in the different States,
see the chart on page 191.
208
South Carolina
Tennessee
.
Texas
Virginia
Washington
West Virginia
Wisconsin.
.
-..
...
.
_ _. _
Ratio
Birmingham
Little R o c k . . . .
[Los Angeles..
< Oakland -.
[San Francisco _.
....
Denver
[Bridgeport
_ _
-{Hartford
[New Haven
[Jacksonville
\\Miami, _.
[Tampa
Atlanta
[Chicago
\Peoria
__. __
(Fort Wayne
iGary
I Indianapolis
(South Bend
[Cedar Rapids
IDes Moines
/Kansas C i t y . - .
IWichita
.
Louisville
[New Orleans
IShreveport
Portland
Baltimore
[Boston _._
sNew Bedford
["Worcester
_
[Detroit
1 Flint
[Grand Rapids
[Duluth
•(Minneapolis
.
__
.
.
.
.
_
1st. Paul
Jackson .
[Kansas City
5.7 \St. Louis
Omaha
4.4
[Camden
...
5.8 •{Jersey City
[Newark
5.0
Santa Fe
[Buffalo ..
Bronx Borough
6.4 1 Brooklyn Borough
[Manhattan Borough
Queens Borough
._
[Rochester
...
(Asheville..
.
.
.
.
2.3 \ Charlotte
(Akron
Cincinnati
_
2.9 < Cleveland
Columbus
[Toledo
City. _
5.2 /Oklahoma
\Tulsa
5.6
Portland
(Erie
Philadelphia
2.8 J[Pittsburgh
(Scranton.
_. .
2.1 Charleston
(Chattanooga
.
_ .
...
2.6 [Knoxville.
jMemphis... . _.
[Nashville
(Austin
1 Dallas
4.8 [Fort
Worth
[Houston...
[Norfolk
2.9 (.Richmond
. ...
(Seattle
5.7 <Spokane . . .
iTacoma
2.4 [Charleston
(.Huntington
_
2.6 Milwaukee
1.9
New Jersey
Individual cities
24
2.9
6.4
3.9
6.9
41
2.1
1.8
3.5
3.3
10 5
4.0
31
3.8
2.4
2.4
1.4
3.6
2.0
2.2
3.2
3.1
4.4
43
3.5
3.8
8 1
37
6.4
29
2.1
3.5
25
3.0
2.9
30
3.0
1 l
8.1
6.5
54
3.0
59
3.8
68
3.4
4.2
5.8
10.8
7.5
3.8
4.1
1.7
2.0
5.7
29
3.4
37
7.7
59
5.8
2.0
4.7
2. 4
1.8
29
2.6
3.2
2.5
3.4
5.2
5.9
5.1
5.0
3.0
2.7
5.8
6.5
4.8
3.0
2. 6
3.1
Federal Home Loan Bank Review
FEDERAL HOME LOAN BANK DISTRICTS
^
•
_
BOUNDARIES
•
OF FEDERAL
HOME LOAN BANK
FEDERAL HOME LOAN BANK
DISTRICTS.
CITIES.
OFFICERS OF FEDERAL HOME LOAN BANKS
BOSTON
B.
J.
R O T H WELL,
Chairman; E .
H.
CHICAGO
WEEKS,
NEAVES,
President;
H.
N.
FAULKNER,
WINANT,
Treasurer;
L.
E.
DONOVAN,
Vice
Vice
Chairman; W .
President;
Secretary; P .
A.
H.
FREDERICK
GARDNER,
HENDRICK,
Treasurer; CONSTANCE M . W R I G H T , Secretary; U N C A R O & S H E R W O O D ,
Counsel.
MACDONALD,
ROBERT
President; J. P . D O M E I E R , Vice President; H . C .
JONES,
Counsel.
NEW
GEORGE
C. E . BROUGHTON, Chairman; H . G. ZANDER, JR., Vice Chairman; A. R*
G.
Secretary;
C. B . B O B B I N S , Chairman;'E. J. R U S S E L L , Vice Chairman; R . J. R I C H A R D -
CLARKSON, E x e c u t i v e Vice President; D E N T O N C . L Y O N ,
SON, President-Secretary; W . H . LOHMAN, Vice President-Treasurer;
J. M . M A R T I N , Assistant Secretary; A. E . MUELLER, Assistant Treasurer;
B.
F.
DIFFENDERFER,
V.
D E S MOINES
Chairman;
H.
Chairman;
YORK
D.
LLOYD,
Treasurer;
F.
Vice
G.
STTCKEL, J R . ,
General Counsel.
E M M E R T , JAMES, N E E D H A M & L I N D G R E N , Counsel.
PITTSBURGH
LITTLE KOCK
E.
T . T R I G G , Chairman; C. S. T I P P E T T S , Vice Chairman; R . H .
ARDS,
President;
G.
R.
PARKER,
Vice
President;
H.
H.
RICH-
GARBER,
Secretary-Treasurer; R. A. CUNNINGHAM, Counsel.
W. C . JONES, J R . , Chairman; W . P . GULLEY, Vice Chairman; B . H .
WOOTEN, President; H . D . WALLACE, Vice President-Secretary; J. C.
C O N W A Y , Vice President; W . F . T A R V I N , Treasurer; W . H . CLARK, J R . ,
Counsel.
WINSTON -SALEM
H. S. H A WORTH, Chairman; E . C. BALTZ, Vice "Chairman; O. K .
L A R O Q U E , President-Secretary; G. E . WALSTON, Vice President-Treasurer; Jos. W. HOLT, Assistant Secretary; T . SPRUILL THORNTON, Counsel.
TOPEKA
P . F . GOOD, Chairman; R o s s THOMPSON, Vice Chairman; C. A. STERLING,
President-Secretary; R . H . BURTON, Vice President-Treasurer; JOHN
S. D E A N , JR., General Counsel.
CINCINNATI
PORTLAND
R.
P.
DTETZHAN,
Chairman;
W M . MEGRUE
BROCK,
Vice
Chairman;
W A L T E R D . SHULTZ, President; W . E . J U L I U S , Vice President; D W I G H T
WEBB,
J R . , Secretary; A. L.
MADDOX,
Treasurer; T A F T ,
STETTINIUS
& HOLLISTER, General Counsel.
B K N A . PEBHAM, Chairman; B E N H . H A Z B N , Vice Chairman; F . H .
JOHNSON,
President-Secretary;
IRVING
BOGARDUS,
Vice
President-
Treasurer; Mrs. E . M . J E N N E S S , Assistant Secretary; V E R N E
DUSEN-
BERRY, Counsel.
INDIANAPOLIS
H . B . W E L L S , Chairman; F. S. CANNON, Vice Chairman-Vice President;
F R E D T . G R E E N E , President; G. E . OHMART, 2nd Vice President; J. C.
M O R D E N , Secretary-Treasurer; J O N E S , HAMMOND, B U S C H M A N N & G A R D -
NER, Counsel.
Los
ANGELES
D . G. D A V I S , Chairman; A . J. E V E R S , Vice Chairman; M . M . H U R FORD, President; C. E . BERRY, Vice President; F. C. N O O N , SecretaryTreasurer; VIVIAN SIMPSON, Assistant Secretary,
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