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FEDERAL
HOME
LOAN
BANK
Washington, March 1942
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4 0 A N iAH K A 0 M I N i l T I Af I O N
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The reaction of REVIEW readers to the first
edition of the Statistical Supplement published last
year was so favorable that continuance of this
service has proved to be desirable. Once again,
therefore, a condensed statistical manual is released with this March issue of the FEDERAL HOME
LOAN BANK REVIEW. The Supplement draws
together pertinent data on residential construction,
home-financing activities, and savings, and presents them in convenient form for reference and
comparative purposes. Various improvements over
last year's issue, it is hoped, will increase the usefulness of the Supplement to executives and research students.
CONTENTS
FOR
M A R C H • 1942
ARTICLES
FEDERAL
S H A R E C A P I T A L T U R N O V E R AND R E P U R C H A S E R A T I O S S H O W
I N C R E A S E I N 1941
HOME
Page
187
T H E N E W FEDERAL SET-UP FOR HOUSING
K3
MODERATE
PLOTTING THE CURVE OF BUILDING COSTS
LOAN
192
Problems before management—Building material prices in t w o
world wars—Official price ceilings—Diverse cost trends in retail
m a r k e t s — W i d e geographic variations—Building material prices in
different communities.
H A W A I I S A V I N G S AND L O A N ASSOCIATIONS U N D E R F I R E
BANK
189
T u r n o v e r r a t e higher during 1941—Ratio of repurchases t o new
investments also higher t h a n in 1940—Geographic variations—
Some basic considerations arise.
196
DESIGNATION OF D E F E N S E - R E N T A L AREAS INITIATES FEDERAL ACTION
ON^RENTS
REVIEW
197
H o w rent control will be applied—Declaration of necessity a n d
recommendations—Local initiative m a y forestall Government action—Clearing u p some false impressions—Local authorities t o provide focal point.
MONTHLY SURVEY
Published Monthly by the
FEDERAL HOME LOAN
BANK ADMINISTRATION
John H. Fahey, Commissioner
Highlights a n d s u m m a r y
General business conditions
Residential construction
Building costs
New mortgage-lending activity of savings a n d loan associations
Foreclosures
Mortgage recordings
Insured savings a n d loan associations
Federal H o m e Loan Bank System
201
202
202
202
203
203
203
203
204
STATISTICAL TABLES
FEDERAL HOME LOAN
BANK SYSTEM
FEDERAL SAVINGS AND LOAN
ASSOCIATIONS
FEDERAL SAVINGS AND LOAN
INSURANCE CORPORATION
HOME OWNERS' LOAN
CORPORATION
w
Vol. 8
New family dwelling units—Building costs—Savings a n d loan lending—Mortgage
recordings—Total nonfarm foreclosures—FHA a c t i v i t y — I n s u r e d savings a n d
loan associations—Federal H o m e Loan Banks—Sales of U. S. defense savings
bonds—Savings in selected financial institutions—Quarterly tables . . . . 206-215
REPORTS
T h e home front
Directory of member, Federal, a n d insured institutions added during J a n u a r y February
A p p o i n t m e n t of Public I n t e r e s t Director
F r o m t h e m o n t h ' s news
Resolution of t h e Board
188
191
195
199
205
No. 6
SUBSCRIPTION P R I C E OF REVIEW. The REVIEW is the Federal Home Loan Bank Administration'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 Administration. The REVIEW will be sent to all member institutions without charge. To others the annual subscription price, which covers the cost of paper and printing, is $1. Single copies will be sold at 10 cents. Outside
of the United States, Canada, Mexico, and the insular possessions, subscription price is $1.60, single copies, 15 cents. Subscriptions should be sent to and copies ordered
from Superintendent of Documents, Government Printing Office, Washington, D. C.
APPROVED BY T H E BUREAU OF T H E B U D G E T .
446314—42
1
00
PATTERN OF GOVERNMENT H O U S I N G ACTIVITIES BEFORE FEBRUARY 2 4 , 1 9 4 2
COORDINATOR
DEFENSE
OF
FEDERAL L O A N
HOUSING
AGENCY
Finding of need and limited
coordination of defense housing
policy, but with no effectiv<
administrative control.
FEDERAL
No powers of any sort on n
defense housing.
H O U S I N G AD-
FEDERAL
HOME LOAN
BANK BOARD
U N I T E D STATES
IHOUS1NG CORPORATION)
DEFENSE
Housing (including defense
ICORPORATlONl
LOAN
CORPORATION
FEDERAL
SAVINGS
AND LOAN ]
INSURANCE
CORPORATION
Defense housing, in
Defense housing, in
addition to assignments
addition to assignments
HOME
LOAN
BANK
SYSTEM
FARM
SECURITY
ADMINISTRATION I
Temporary defense housing ii
Jdition to FWA assignments
under Lanham Act.
Also nonfarm housing.
(for liquidation)
housing) with USHA funds.
LANHAM A N D TEMPORARY
HOME
NAVY
DEPARTMENT
HOMES
MINISTRATION
OWNERS
WAR
DEPARTMENT
F E D E R A L W O R K S AGENCY
UNITED
STATES
HOUSING
AUTHOR^
TY
PUBLIC
| BUILDINGS)
ADMINIS-J
DEFENSE
TRATION
HOUSING
D E F E N S E H O U S I N G ASSIGNED T O :
MUTUAL j
OWNERSHIP
DEFENSE
HOUSING
DIVISION
FARM
WAR
DEPARTMENT
NAVY
[SECURITY!
DEPART-I
MENT
ADMINIS-I
TRATION
N E W ORGANIZATION O F G O V E R N M E N T HOUSING A G E N C I E S
NATIONAL HOUSING AGENCY
Includes present housing functions of:
Federal Loan Administrator
Federal Works Administrator
Coordinator of Defense Housing
FEDERAL HOUSING ADMINISTRATION
(COMMISSIONER)
o
3
FEDERAL HOME LOAN BANK ADMINISTRATION
(COMMISSIONER)
Includes present functions of:
Includes present functions of;
Federal Housing Administration
Federal Home Loan Bank Board
FEDERAL PUBLIC HOUSING AUTHORITY
j
?*TO
<
United States Housing Authority
Federal Home Loan Bank System
Defense Homes Corporation
Nonfarm public housing from Farm
Home Owners' Loan Corporation
United States Housing Corporation,
(for liquidation)
?
Includes present functions of:
Federal Savings and Loan
Insurance Corporation
O
Q
(COMMISSIONER)
*Such defense public housing (except on Army and Navy reservations) has heretofore been divided among the Federal Works Agency, United States Housing Authority, Public
Buildings Administration, Division of Defense Housing, Mutual Ownership Defense Housing Division, War Department, Navy Department, Farm Security Admin
Security Administration
Defense public housing (except on Army
and Navy reservations)*
THE NEW FEDERAL SET-UP FOR HOUSING
•
T H E Federal Home Loan Bank Board, Federal
Savings and Loan Insurance Corporation, and
Home Owners' Loan Corporation, together with their
functions, powers, and duties, were consolidated
into a newly created National Housing Agency
under an Executive Order of the President, dated
February 24, 1942. The Order provides for the
administration of the functions, powers, and duties
of the Federal Home Loan Bank Board and its
members, as well as the Home Owners' Loan Corporation, Federal Savings and Loan Insurance Corporation, and United States Housing Corporation
in the Federal Home Loan Bank Administration,
to be administered by the Chairman of the Federal
Home Loan Bank Board, John H. Fahey, as Federal Home Loan Bank Commissioner.
In this reorganization, the corporate entities of the
Federal Home Loan Banks, the Federal Savings and
Loan Insurance Corporation, and the Home Owners'
Loan Corporation remain intact, and their functions
and purposes continue without change. Likewise,
all outstanding obligations and contracts, orders,
rules, regulations, permits, and privileges continue
in effect.
T H R E E U N I T S U N D E R O N E DIRECTION
The Executive Order is based on the First War
Powers Act, 1941, which gives the President authority to consolidate agencies of the Government toward
the end of swifter and more efficient prosecution of
the present War. Under the Order, the National
Housing Agency includes 16 Government units
operating in the housing and mortgage-financing
field. The organization charts on the facing page,
released with the Executive Order, show the previous
and the present Federal set-ups for housing.
The new Agency consists of three principal units
under the supervision of the National Housing
Administrator who will direct generally all of their
activities, with full power to control action and to
develop a unified comprehensive program. John B.
Blandford, Jr., Assistant Director of the Budget,
has been appointed Administrator of the new Agency.
Each of the three constituent units is headed by a
Commissioner.
One of these units is the Federal Public Housing
Authority which is an amalgamation of all the various
agencies engaged in the construction of housing with
public money, except for accommodations located
on military and naval reservations, posts, or bases
March 1942
which, as in the past, will be handled by the Army
and Navy Departments. Another unit is the Federal
Housing Administration whose function continues
to be the insurance of mortgages under the National
Housing Act. The Federal Home Loan Bank
Administration completes the organization and
includes the functions and agencies previously
administered by the Federal Home Loan Bank
Board, and, in addition, the United States Housing
Corporation.
The U. S. Housing Corporation, created in May
1918 to provide housing for war workers, has been
in liquidation since July 1919. Its principal activities
in the past years have been the collection of mortgage
payments on property sold and the disposition of
property owned.
As a consequence of the Executive Order, the
Division of Defense Housing Coordination in the
Office for Emergency Management is eliminated
and its functions are transferred to the National
Housing Agency. The principal purpose of this
Division was to determine the local needs for defense
housing and to see to it that these needs were met
by private enterprise and Government agencies.
I t was announced that in the new National
Housing Agency will be concentrated the function
of research in housing construction materials and
methods, and also that of general urban-development planning insofar as housing and related
facilities are concerned.
The Federal Loan Agency, under which the Federal
Housing Administration as well as the Federal Home
Loan Bank Board and its agencies had been grouped
with certain other Government bodies, has been
dissolved. Its remaining units have been consolidated into the Department of Commerce, with the
exception of the Defense Homes Corporation which
is taken over by the National Housing Agency to be
administered by the Commissioner of the Federal
Public Housing Authority.
The Executive Order was placed in immediate
effect and will remain in effect so long as Title I of
the First War Powers Act, 1941, is in force. This
Act provides in Section 401 that Title I " shall
remain in force during the continuance of the present
War and for 6 months after the termination of the
War, or until such earlier time as the Congress by
concurrent resolution or the President may designate."
187
Treasury Suggests
War Savings Goals
Characteristics of
Private Defense Housing
Some of the characteristics of privately financed defense housing structures are disclosed by a breakdown of
the units which had been given priority assistance up to December 1, 1941.
Of the 69,470 units approved by that
date, 53,324 were listed as sales units
at an average price of $4,654, while
the remaining 16,146 units were
intended for rentals averaging $42.78
per month. Approximately 75 percent of all units approved for priority
assistance contained between 4 and
5}£ rooms. At the request of WPB, a
survey is being made to determine how
many of the units approved are
actually under construction or completed.
ft ft ft ft ft
Priorities for
Gas-Heating Equipment
The War Production Board recently
announced that the revised Defense
Housing Critical List will require
proof of adequate heating-gas supplies before granting priorities for the
installation of equipment using this
fuel. In several sections of the country heating-gas shortages have developed because of the increased requirements for both war production
and civilian use. In order to assure
adequate supplies for necessary industrial uses, WPB is requiring that particular care be taken in 18 States and
the District of Columbia to determine
the existence of supply before designing defense housing units to utilize
heating equipment operating on these
fuels. Included in the list are Alabama, Arkansas, California, Georgia,
Illinois, Indiana, Kentucky, Maryland,
Michigan, Mississippi, Missouri, New
Jersey, New York, Ohio, Pennsylvania,
Tennessee, Virginia, and West Virginia.
ft
ft
V5r
ft
ft
A communication from the Chief of
the Housing Priorities Branch of the
War Production Board points out that
under the material allocations system
developed during the past few months
for the building industry, priority
188
ratings virtually assure availability of
the materials covered. In the few
instances where this does not prove to
be the case, every effort will be made
to provide the materials covered by
the rating. This message should remove any hesitancy in the planning of
private defense housing.
Simplification of Plumbing
and Heating Equipment
The War Production Board has
issued an order (L-42) requiring simplification of plumbing and heating
parts in which iron, brass, and bronze
are used. The order, effective March
1, includes valves and pipe fittings
manufactured from these products,
and is designed to release substantial
amounts of critical materials. For
example, the number of fittings in
current use will be reduced from 8,500
to 3,000,
Provision is made for the delivery
of any valves and pipe fittings held in
finished form by a producer on March
1, or those which have been processed
in such a manner that their manufacture in conformity with the new schedule would be impractical.
If weekly earnings are—
The United States Treasury recently released a table showing how
savers in the various income groups
may participate in the war effort
through the systematic purchase of
defense savings bonds. The table
which is reproduced below sets an
annual amount of $10,000,000,000, or
about 10 percent of the present national income, as the savings goal.
This, according to Secretary Morgenthau, is the proportion of national
income placed in war savings by the
British last year.
For the individual savers the
schedule suggests that 5 to 17 percent
of earnings be set aside for the purchase of defense bonds, depending on
the income bracket. It is worth
noting that this savings objective is
exclusively in terms of current earnings and omits any reference to the
withdrawal of accumulated savings for
the purchase of defense bonds. This
is in line with the Treasury policy of
obtaining savings from the rising current incomes.
Secretary Morgenthau stated that
the defense savings campaign so far
has reached only about one-seventh
of all income-earners in the Nation
and that "we must have every incomeearner in the country saving regularly
on a week-to-week basis if we are to
finance this war without bringing the
evils of inflation upon us."
And one
saves^each
week—
In 1 year
he will
Number of
Total annual
persons in each
savings
(thousands
income group
(thousands)
of dollars)
$5 to
10 to
15 to
20 to
$10_
15.
20_
30.
$0.25
.50
.75
1.25
$13
26
39
65
10,747
30 to
40 to
SO to
60 to
40.
SO6070.
2.00
4.00
6.00
8.00
104
208
312
416
7,774
5,794
3,007
2,231
808, 496
1, 205, 152
938, 184
928, 096
70 to 80.
80 to 100.
100 to 150.
150 to 200.
Over 200—
10.00
12. 00
20.00
35.00
520
624
,040
,820
1,304
1,489
1,059
298
695
678, 080
929, 136
1, 101, 360
542, 360
2, 000, 000
3,324
4,975
5,470
$43,
129,
213,
698,
212
350
330
555
Federal Home Loan Bank Review
SHARE-CAPITAL TURNOVER AND REPURCHASE
RATIOS SHOW MODERATE INCREASE IN 1941
One year ago the Division of Research and Statistics published its
first study of the behavior of funds invested in savings and loan associations. Recent analysis of 1941 operations substantiates the general
conclusion of the original report and points to the changing pattern
of long-term savings evidenced during the past year.
•
During the past few months there has been a
noticeable change in the flow of savings into
and out of the various types of financial institutions
making up the thrift reservoirs of our country. I n
some instances, the influx of new investment funds
has slowed down; in other cases, the drawing upon
accumulated balances has speeded u p ; but generally
it has been a combination of these factors in varying
degrees.
An unusually heavy volume of Christmas business,
a substantial amount of forward buying in consumption goods likely to be restricted, and the
purchase of defense savings bonds have all combined
to reduce the balance in the savings account of
many an individual.
Evidence of this trend may be found in the current
operating reports of mutual savings banks, commercial banks, and savings and loan associations,
which together account for approximately half of
all private long-term savings in the country. M u tual savings banks reported a decline of more than
$100,000,000 in deposits during the last half of 1941,
as contrasted with a gain of almost $30,000,000 in
the same period of the previous year. Comparable
data for all insured commercial banks are not yet
available, b u t the weekly reports of member banks
of the Federal Reserve System reveal a drop of
nearly $300,000,000 in the time deposits of these
institutions in a 15-week period following November 1.
The pattern for savings and loan associations now
shows signs of following a similar course, if the record
of insured associations may be considered typical.
(Actually, because of the insurance feature, their
record may be somewhat better than the average for
the industry as a whole.) Although the dollar
increase in private share capital invested in insured
associations during 1941 was equal to that of the
previous year, the percentage gain was lower. Further than that, in January of this year repurchases
of private share capital exceeded the new investments
March 1942
made during the month by approximately 12 percent. T h e net effect was to bring about t h e first
monthly decline in total private share investments
in these institutions since 1936—as far back a s comparable data are available.
Some of the factors behind the movement of
savings funds during this recent period are temporary
in character and their effects should therefore be
short-lived. Others, however, such as heavier taxation and greater emphasis on the purchase of defense
savings bonds out of current incomes, are likely to
remain for some time to come. I n view of this,
savings and loan managers find increasing need for
studying the ebb and flow of private share capital
invested in their institutions.
TURNOVER R A T E H I G H E R D U R I N G 1941
The rate of share capital turnover 1 in all insured
savings and loan associations rose from 20.1 percent
during 1940 to 22.5 percent in the past year—the
second successive yearly increase recorded in these
statistics. I t signifies that the average dollar invested in these institutions is now remaining on the
books for a shorter period of time. Although these
declines in the past two years have been relatively
small, they nevertheless have reduced the average
"life" of an invested dollar from 5.2 years to 4.4
years.
In general the current study tends to substantiate
the conclusions reached in the initial attempt to
analyze this information last year 2 : the larger the
association, or the larger the size of the community,
the higher the rate of turnover. The results are
summarized in Table 1 which shows a breakdown of
the data by asset-size group and by the size of community in which the institutions included in this
survey are located.
1
For purposes of this study, the rate of capital turnover is defined as the ratio of
private share repurchases during the year to the average private repurchasable
capital outstanding.
» "Share Capital Turnover"; FEDERAL HOME LOAN BANK REVIEW, May 1941.
189
Table 7.—Rates of capital turnover for all reporting insured savings and loan associations,
by asset and community size group, 1941
NOTE.- -The turnover rate represents private share repurchases as a percent of
average private share capital.
Asset size group
C o m m u n i t y size g r o u p
U n d e r 10,000
10,000-50,000
50,000-250,000
250,000 a n d over
.
$2,500,000
and
over
Total
Less
$250,000
to
than
$250,000 $500,000
$500,000
to
$2,500,000
Percent
22.5
Percent
16.2
Percent
21.0
Percent
21.9
Percent
23.3
19.2
20.5
22.0
25.1
13.8
15.8
23.2
28.8
17.9
18.4
26.6
30.8
19.3
20.3
21.8
25.5
24.5
21. 2
21.9
24.7
Reading across the table to study the effect of
association size, the turnover rate for all insured
institutions varies from 16.2 percent (6 years) for
associations with less than $250,000 in assets to
23.3 percent (4% years) for associations with assets
of more than $2,500,000. This pattern is constant
for all associations in communities of less than 10,000
and from 10,000-50,000 population. As the size of
the town exceeds 50,000 population, there is a
tendency for the funds of smaller associations to
turn over more quickly than those of the larger
institutions.
Reading down the table, it is evident that an
increase in the size of the community brings about a
higher turnover rate. The only exception appears
in associations wTith assets of more than $2,500,000
which are located in communities with less than
10,000 population. A small sample seems to explain
this irregularity, for there are few institutions which
fall into this classification.
Managers and boards of directors may compare
their own association's record with other similar
institutions by matching the size of the community
in which they are located with the asset-size group
into which they would be classified.
alent to 62 cents of every dollar of new money as
compared with 57 cents in the previous year.
Again a breakdown has been prepared by asset and
community size groups and the summary appears in
Table 2. Reading this table horizontally, it is apparent that regardless of the size of community in
which an association is located, its repurchase ratio
is likely to increase as it grows. There is only one
exception to this generalization; the group of institutions in the $250,000-$500,000 range which are
located in the largest cities. I n reading the table
vertically, there is a tendency for repurchase ratios
to increase in the larger communities, although the
pattern is not quite regular for all city classifications.
GEOGRAPHIC VARIATIONS
There continues to be wide local variation in share
capital turnover and repurchase ratios with little or
no geographic pattern. Table 3 shows each of the
ratios for the past 3 years by Federal Home Loan
Bank District and State.
For capital turnover, the Portland District reported the highest rate with the New York region
ranking second; a reversal of their positions for the
previous year. The lowest turnover rate was again
registered in the Little Rock District. Two Federal
Home Loan Bank regions (Pittsburgh and New York)
showed lower turnover rates than in 1940. Among
individual States there were 38 increases (including
the District of Columbia) and 11 decreases.
In analyzing the 1941 repurchase ratios, the Federal Home Loan Bank Districts of Cincinnati and
New York continued to report the highest figures.
The Pittsburgh region has replaced the Des Moines
area for having the smallest repurchase ratio. Only
the Pittsburgh region indicated a lower figure for
Table 2.—Repurchase ratios for all reporting
insured savings and loan associations, by
asset and community si?e group, 1941
NOTE.—The repurchase ratio represents private share repurchases as a percent
of new share investments during the year
Asset size g r o u p
RATIO
OF REPURCHASES
TO N E W INVESTMENTS
ALSO H I G H E R T H A N IN 1940
A survey of the ratio of repurchases to new investments received by insured savings and loan associations complements the story of what happened to
association share capital during the past year, and
the results parallel those of the capital turnover
study. Repurchases increased faster than did the
new investments of these institutions and were equiv190
C o m m u n i t y size g r o u p
All c o m m u n i t i e s
U n d e r 10,000
10,000-50,000
50,000-250,000
250,000 a n d over
...
Total
Less
$250,000
than
to
$250,000 $500,000
$500,000
to
$2,500,000
Percent
62.2
Percent
43.9
Percent
50.7
Percent
55. 4
Percent
70.0
54.3
59.3
65.4
64. 5
40.6
40.1
53.1
58.2
48.8
46. 1
55.9
56.4
55. 5
54.7
57.0
55.2
65.6
72. 1
70.2
69.7
$2,500,000
and
over
Federal Home Loan Bank Review
Table 3.—Rates of capital turnover and repurchase ratios, by Bank District and by State
R a t e of t u r n o v e r
R e p u r c h a s e ratio
Federal H o m e Loan B a n k
District a n d State
1941
1940
1939
1941
1940
1941 than in the previous year, reflecting primarily
the progress of reorganization in Pennsylvania. I n
all, there were 33 States and the District of Columbia
which indicated higher ratios, and 15 States which
showed declines.
1939
SOME BASIC CONSIDERATIONS A R I S E
U N I T E D STATES
N o . 1—Boston
Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island l
Vermontl
._
l
N o . 2—New Y o r k
New Jersey..
New York—
N o . 3—Pittsburgh
22.5
20.1
19.1
62.2
57.2
55.9
15.5
14.0
12.6
49.8
43.8
43.8
21.2
24.7
13.8
16.3
29.7
18.6
20.7
16.5
12.7
13.7
26.2
12.3
22.0
16.2
11.4
11.3
23.7
9.3
39.8
43.2
53.1
67.3
37.0
63.5
40.0
31.7
45.5
44.9
34.0
40.2
39.9
30.3
47.5
31.7
22.5
27.0
28.3
27.0
28.3
71.2
68.7
72.4
25.1
29.2
26.3
27.1
36.6
26.6
68.6
71.9
87.7
65.0
155.3
62.9
17.7
19.6
16.4
43.5
44.7
38.3
4.6
40.2
27.7
Delaware *
Pennsylvania
W e s t Virginia
21.7
18.3
13.0
16.5
20.8
12.5
3.5
17.7
10.1
68.6
43.8
40.6
49.5
45.7
36.6
N o . 4—Winston-Salem
24.3
23.9
21.8
51.7
47.8
42.8
38.0
61.2
57.4
39.5
48.3
49.3
51.5
48.7
33.2
48.7
54.8
42.8
49.1
43.0
50.1
36.6
36.9
48.9
45.2
38.7
46.2
32.8
53.9
29.5
Alabama
D i s t r i c t of C o l u m b i a . __
Florida
Georgia
Maryland
N o r t h Carolina.South Carolina._
Virginia
N o . 5—Cincinnati
Kentucky.. _
Ohio
1
T e n n e s s e e __
-
N o . 6—Indianapolis
Indiana
Michigan
__
N o . 7—Chicago
Illinois
Wisconsin
N o 8—Des M o i n e s
Iowa
Minnesota
Missouri _
North Dakota
South Dakota
_.
- __
N o . 9—Little R o c k
Arkansas
Louisiana
Mississippi
N e w Mexico
Texas
N o . 10—Topeka
15.1
30.0
35.9
18.8
21.0
24.2
17.9
15.8
14.6
22.3
40.8
19.9
20.2
20.8
20.5
14.2
14.7
20.7
35.6
19.2
19.8
16.8
21.9
12.6
27.8
23.7
22.1
75.8
72.5
68.5
12.5
30.4
17.5
11.7
25.7
19.3
9.2
24.1
16.8
63.9
78.5
42.6
65.3
74.6
45.2
44.6
72.7
33.6
18.1
15.3
13.9
68.6
57.0
57.9
16.2
21.3
14.4
17.0
13.1
17.4
64.8
74.1
59.5
53.8
59.5
55.5
23.3
20.1
18.3
63.3
53.4
46.9
25.6
16.8
20.8
18.1
18.0
19.3
61.1
75.1
48.5
79.1
42.0
72.7
19.3
16.3
16.1
52.2
43.7-
41.9
16.6
25.7
15.6
16.9
20.6
14.5
21.3
13.6
13.0
22.0
14.5
22.0
13.7
13.0
18.0
41.2
56.1
54.1
39.0
58.0
31.6
39.8
55.6
34.0
66.0
27.7
37.4
52.8
42.0
53.7
13.0
12.3
11.8
55.2
51.6
48.6
13.2
13.3
9.9
15.2
12.9
JO. 9
11.7
11.1
12.4
13.1
9.7
11.0
11.1
13.8
12.9
48.1
70.3
27.2
56.5
49.4
39.5
68.7
31.7
41.1
45.8
28.2
62.3
34.7
46.0
44.1
16.1
13.7
12.6
57.1
55.6
54.5
Colorado
Kansas
Nebraska
Oklahoma
17.8
19.1
16.1
13.5
16.8
15.1
13.6
11.3
14.4
14.1
15.3
10.4
53.2
57.8
56.7
59.1
55.9
65.6
46.0
50.2
51.3
68.0
48.4
48.0
N o . 11—Portland
29.2
27.0
25.9
60.9
59.6
56.5
27.1
18.5
26.4
26.2
32.5
23.6
26.9
19.8
26.0
24.3
29.1
21.2
27.0
16.9
25.1
24.0
28.4
15.6
63.8
66.2
54.3
59.0
63.0
42.4
56.2
76.1
50.5
60.0
61.9
36.1
61.8
63.9
46.0
69.6
57.3
23.0
Idaho...
Montana
Oregon
Utah
Washington
Wyoming
_
__
N o . 12—Los Angeles
Arizona*
California
Nevada l
«...
21.8
18.0
18.3
60.8
52.0
57.9
37.8
21.6
16.7
33.5
17.8
12.7
31.3
18.1
51.4
61.5
48.4
49.3
52.4
31.1
38.2
58.2
i Less than five insured associations are located in these States.
March 1942
The trends evidenced by this study give rise to
some basic considerations for savings and loan management. I t must be remembered, however, that
many of the factors underlying these changes are
directly the result of unusual circumstances and,
therefore, m a y not be of permanent consequence.
If capital turnover rates and repurchase ratios
should continue to rise, important changes in operating policies m a y be necessary to meet these new
conditions, including greater emphasis on securing
a higher proportion of share investments with longterm characteristics.
Liquidity positions are vitally affected by the
performance of private share capital accounts. Cash
requirements of an association with a high turnover
rate are likely to be much higher than those in an
institution with a low turnover rate and the same is
true for variations in repurchase ratios.
The problem is essentially one which is greatly
influenced by the experience of the individual association, and one which requires careful analysis of
local conditions. Executives and boards of directors
should find these national, regional, and State data
helpful in evaluating the results of their own
operations.
Directory of Member, Federal, and
Insured Institutions
Added during January-February
I. INSTITUTIONS ADMITTED TO MEMBERSHIP I N
THE FEDERAL HOME LOAN BANK SYSTEM
BETWEEN JANUARY 16 AND FEBRUARY 15, 1942
DISTRICT NO. 2
N E W JERSEY;
Newark:
Bradford Savings and Loan Association, 487 Orange Street (a newlyorganized State-chartered association resulting from the segregation
and sale of assets of the Eleventh Ward Building and Loan Association,
Newark).
D I S T R I C T NO. 3
PENNSYLVANIA:
Shillington:
Shillington Building and Loan Association, 6 Philadelphia Avenue.
D I S T R I C T NO. 5
OHIO:
Minerva:
The United Counties Savings and Loan Company, 210 North Market
Street.
D I S T R I C T NO. 6
MICHIGAN:
Iron River:
Iron Savings and Loan Association, 425 Third Street.
(Continued on p. 205)
I9I
PLOTTING THE CURVE OF BUILDING COSTS
The sharp increase in building costs causes mortgage lenders to keep
a watchful eye on their appraisal and mortgage lending standards.
Despite the general character of price advances, analysis shows a
large variance of trends for the different building materials as well
as considerable local variations.
This serves to emphasize the need
for thorough study before changes in lending standards are made.
•
WARS have always boosted prices, and among
the more spectacular price increases usually has
been the cost of building. During World War I
wholesale prices for building materials rose over 50
percent even before the United States became a
belligerent, and when peace returned prices were
almost twice as high as in the summer of 1914. The
27 months before this country's entry into the present war saw building material costs climb about 20
percent, and prices have continued to move upward
since December 7.
PROBLEMS B E F O R E MANAGEMENT
Building-cost increases of such magnitude confront mortgage-lending institutions with a host of
problems. Higher levels of construction costs, if
they are sustained over a period of time, have a
bearing on the prices of existing properties as well
as of new houses, and prospective mortgage borrowers generally expect the lending institution to
take proper recognition of this fact. But will the
wartime price increases be sustained, or will the tide
recede after the emergency? Should mortgage lenders "follow the market" and accept the new cost
level as a basis for appraisals and loan ratios in order
that they may maintain business volume? Or should
they ignore the effect of rising building costs on property prices, at the risk of losing business? With
priority assistance limited to $6,000 homes for defense workers and with prices on the upgrade, will
it be possible to provide permanent and well-built
houses which will be adequate security for long-term
loans? And will the risks which private enterprise
assumes in the financing of defense housing be magnified by cost increases the permanency, of which is
none too certain?
The solution of these knotty problems requires
sound judgment and managerial skill, and many of
the answers will differ from locality to locality. In
formulating its policies, however, management will
be assisted by an analysis of the facts in regard to
the nature, rapidity, and diversification of recent
192
building cost increases. Also, a comparison of price
trends in the two World Wars reveals information
of value to an understanding of the underlying
conditions.
BUILDING MATERIAL P R I C E S IN T w o
WORLD W A R S
The accompanying chart indicates that prices for
all building materials so far have advanced at a
slower rate than they did in a comparable period of
the previous war. However, even more important
than this observation is the completely different behavior of prices for the various building materials.
In the first World War the sharpest increase by
far was for structural steel which doubled its price
within less than 2 years. Next in order were paint
materials, which rose almost 60 percent within 28
months, and cement (plus 24 percent). In the past
2 years, steel and cement have shown practically no
price advances. On the other hand, lumber exhibited only a moderate price increase of 15 percent
in the first 28 months of World War I. In the present emergency, the steep rise in lumber prices has
been the largest single factor in the general increase
of building costs. Prices for paint and paint materials rose considerably, but not as far nor as fast as
they did in a comparable span of time during World
War I. In both periods, brick and tile prices increased at a slower pace than did the composite
index for all building materials.
The Bureau of Labor Statistics, in an analysis of
general price movements in the two World Wars,
ascribes this contrast partly to the fact that "concentrated industries with limited numbers of producers, as in steel and cement manufacture, have
shown a tendency to avoid price increases at this
time, a restraint which was conspicuously absent in
1915 and 1916." Also, prices for steel and similar
basic industrial products were successfully stabilized
shortly after the inception of the defense program.
"The much more numerous and scattered lumber
producers, on the other hand, raised prices as quickly
as demand expanded . . ."
Federal Home Loan Bank Review
The rapid increase in lumber prices occurred when
huge orders for cantonments in 1940 coincided with
a heavy demand for residential construction purposes.
In the last war there was no comparable cantonment
program before 1917, at a relatively late stage of the
emergency, and residential building activity at that
time was considerably lower than in the past 2 years.
The completion of the 1940 cantonment program
and stabilization efforts by the Office of Price Administration resulted in a temporary leveling off of
lumber prices in the first few months of 1941, followed by a renewed upsurge in the latter part of the
year. Additional cantonment orders incident to the
expansion of our military forces, coupled with transportation difficulties, were reported to be partly instrumental in this renewed price advance.
The Office of Price Administration has taken
various steps to stabilize costs for building materials
in wholesale markets, extending from voluntary stabilization agreements to formal price ceiling orders.
Price ceiling orders for building materials
Price
schedule
Date issued
J
Product
13
19
26
40
Aug.
Aug.
Sept.
Nov.
1,
16,
11,
13,
1941
1941
1941
1941
44
45
54
94
96
97
100
Nov.
Nov.
Dec.
Feb.
Feb.
Feb.
Feb.
27,
29,
12,
3,
4,
4,
5,
1941
1941
1941
1942
1942
1942
1942
Douglas-fir peeler logs and plywood.
Southern pine lumber.
Douglas-fir lumber.
Builders' hardware and insect
screen cloth.
Douglas-fir doors.
Asphalt or tarred roofing
products.
Douglas-fir peeler logs.2
Western pine lumber.
Domestic fuel-oil storage tanks.
Southern hardwood lumber.
Cast-iron soil pipe and fittings.
1
Date of original order which, in several cases, was amended.
2
Supersedes Price Schedule Number 13 by establishing maximum prices in
dollars and cents.
In addition to the ceilings tabulated above, structural steel prices have been stabilized by an over-all
price ceiling for iron and steel products.
BUILDING MATERIAL PRICES IN TWO WORLD WARS
INDEXES OF WHOLESALE PRICES OF BUILDING MATERIALS
INDEX
iNDEX-
1
1
i
1
1 INDEXA
s+n
CEMENT
ALL BUILDING MATERIALS
•
-J
"
"'
160
160
220,
"
LUMBER
/-W
..>•
2001
140
140
180
120
120
160
A
/-
140
120
INDEX-
<
^PRESENT
WORLD WAR__
(AUGUST 1939 = 100)
too
80
;llf .',.,,:',
nnlni
IN0EJ
280
1
PAINT
240
180
180
160
160
140
140
/..'"*
120
120
/"
100
a o !• 11 t i l • 11111 • • 11 t l . i f • 11«n ii 11 > > i, 1. 11.111
iQie
iQii
•I,,I.
80 Ll.,1.,1.,
*•••••
MJ
/
•••..•••••••J
i
200
/
180
:
160
:
140
$
i
120
~Jl^
•
Mlnlnln
\
r
>**
•+'
Ri
J\
i
:
200
1
. JUM. . _
S407.82
280
240
200
IQIK
,.l
..I..IHIMI..I,.I..I,.
STRUC rURAL S TEEL
260
220
tatJk
:
INDE X
260
220
nlfftfn
80
\m PAIN T MATEI HALS
BRICK AND TILE
too
].•••'•...*••*
100
JLn.
• i.,i.J.
80
Sy
**m^J
#—i
100
Ss/"
FIRST WORLD WAR'
(AUGUST 1914=100) \ /
."*
/"
STATISTICS H
FEDERAL HOME LOAN BANK ADM.
1
100
HIMIMIM
,.,,.!..,,
80
1
I„.„llT...,l,M„
..IMIMIM
..IMI.,1,,
in!,J
The original indexes underlying this chart are compiled by the Bureau of Labor Statistics and have been converted to comparable bases by the Division of Research
and Statistics of the Federal Home Loan Bank Administration. In the interest of simplicity, August 1914 is taken as the base period for World War I and August
1939 as the base period for World War II although the former began in July 1914 and the latter in September 1939. This makes it possible to see at a glance the increase
of building material prices in this War compared with the rise in the first World War.
March 7942
446314—42-
193
indexes of retail prices for all materials as well as
for the eight principal subgroups going into the 6room standard frame house for which the Division
of Research and Statistics compiles cost data, for
the period from April 1938.
Again, unfinished lumber exhibited the sharpest
price rise from the beginning of the present World
War—33 percent, or more than twice as much as
the average for all building materials (16 percent).
The cost increase for finished lumber corresponded
more nearly to the average, and millwork showed a
comparatively moderate advance. Of the nonlumber items, the cost of heating equipment and
painters' materials registered the largest increases,
followed by hardware, plumbing installations, and
masonry materials. Cost advances for each of the
last three commodity groups were below the average
for all building materials.
With the exception of lumber and heating equipment, increases in retail prices became hardly
noticeable before the Spring of 1941. On the whole,
the more substantial cost advances occurred during
the past year and practically within one building
season.
W I D E GEOGRAPHIC VARIATIONS
The indexes plotted on this chart^are based on reports on the cost of building
the standard 6-room frame house, compiled by the Division of Research and
Statistics. The indexes are shown for half-year periods from April 1938 to October
1941 and for January 1942. Cost data reflect dealers' prices as distinguished
from manufacturers' prices which underlie the wholesale price indexes of the
Bureau of Labor Statistics.
D I V E R S E COST T R E N D S IN R E T A I L M A R K E T S
As would be expected, the diverse movement of
wholesale prices for the various building materials
is reflected in retail prices in which the average
builder and the home-financing institution are more
directly interested. The chart in this column shows
194
Building costs have always shown considerable
local variations, 1 and an analysis of recent price
movements city by city emphasizes the wide differences which exist between the various regions and
communities—differences which are too easily blurred
in nation-wide statistics.
The following table indicates the percentage rise
in the cost of building the standard house in 32
selected cities in all sections of the country, for total
cost, labor, and materials. Since the reports from
which these figures were computed are staggered—
the cities being divided into three groups reporting
once every 3 months—September, October, and
November of 1939 have been used as bases for this
special compilation which is carried through last
November, December, and January.
The wide range of cost trends is indicated by the
two extremes in this list of cities: Dallas which shows
an over-all increase of 41 percent, and Little Rock
where total costs rose only little over 2 percent. The
range is even wider for labor costs—from an increase
of 67 percent for Dallas to a small decline in Chicago.
Generally, cities which register large gains in labor
costs show also steep rises in material costs, but
i See "Regional Variations in Building Material Prices," FEDERAL HOME
LOAN BANK REVIEW, November 1941, p. 48.
Federal Home Loan Bank Review
there are some notable cases where advances in labor
costs outstripped by far those in the cost of materials
as, for example, in Baltimore, Memphis, Indianapolis, Washington, D . C , and New Orleans. For the
country as a whole, the increase in labor costs was
21 percent, material costs 16 percent, and total cost
17 percent for the period from October 1939 to
January 1942.
BUILDING M A T E R I A L P R I C E S IN
COST OF MATERIALS FOR BUILDING THE STANDARD HOUSE
IN FOUR SELECTED CITIES
PERCENT CHANGE OCTOBER 1939-JANUARY 194i FOR INDIANAPOLIS, SEATTLE
AND ALBANY; SEPTEMBER 1939-DECEMBER 1940 FOR TAMPA
INDIANAPOLIS
-10
Total
Labor
Materials
Dallas, Tex
B i r m i n g h a m , Ala
San Antonio, Tex
Baltimore, Md
Camden, N. J
III
I
III
I
II
41. 1
36. 1
33.9
33.4
32. 5
66. 7
54. 1
59.4
59. 5
39.4
30. 5
27.9
25. 8
21. 4
29. 1
O k l a h o m a City, Okla
Louisville, K y
A t l a n t a , Ga
Newark, N . J
Philadelphia, P a
I
III
I
II
III
31.
30.
29.
29.
28.
9
6
3
2
7
47. 6
32. 9
36. 1
32. 3
39.3
24.
29.
26.
27.
23.
San Diego, Calif
New H a v e n , Conn
H a r t f o r d , Conn
Albany, N . Y
Indianapolis, I n d
III
I
I
II
II
27. 1
26.4
23. 4
22. 3
19. 4
39.8
38.4
20. 9
21.2
40. 6
20. 6
20. 6
25. 2
23. 2
9.5
Seattle, W a s h
Memphis, Tenn
Chicago, 111
D e t r o i t , Mich
Boston, Mass
II
III
I
II
I
18.
16.
16.
16.
16.
5
4
2
1
1
13. 8
30. 7
0. 1
12.4
11. 6
22. 6
9.3
32. 2
18.8
20. 4
Pittsburgh, Pa
Cincinnati, Ohio
San Francisco, Calif.
Tampa, Fla
Washington, D . C
III
III
III
I
I
14.0
14.0
11.7
11. 7
11.5
15. 6
16. 1
4.0
10. 5
13.4
13. 0
18. 1
12. 0
0.7
Wheeling, W. Va
D e n v e r , Colo
Cleveland, Ohio
N e w Orleans, L a
D u l u t h , Minn_,_
III
I
III
III
II
9.2
8. 8
8. 7
8.6
8.3
9.0
7. 5
12. 3
42.0
8.3
9.5
10. 0
6.9
-4. 6
8.6
St. Louis, M o
L i t t l e Rock, Ark
II
III
8.0
2.4
13. 7
3. 1
5.2
1. 8
32.9 1
6
7
1
9
0
i Reporting periods: Group I, September 1939 through December 1941; Group
II, October 1939 through January 1942; Group III, November 1939 through
November 1941.
More/? 1942
Hardware, misc.
1
-10
PERCENT
+10 +20 +30 +40 +50 +60 +7
•
•1
0
PERCENT
+10 +20 +30 +40 +60 +60 +70
.. \
^_
Lumber, unfinished
Millwork
Lumber, finished
Masons' materials
Hardware, misc.
Painters' materials
Heating
Plumbing
Li
-10
ALBANY
0
PERCENT
1
410 +20 +30 +40 +50 +60 +70 |
N
r
W////////
LU
TT
mk_
•
W///////A
Total
Percent increase in the cost of building the standard 6-room house in selected cities
Fall 1939 to Winter 1941
1
1
0
H
SEATTLE
As a last illustration of the variance in the behavior
of building material prices since the fall of 1939, the
chart on this page shows the percentage change in
the cost of selected materials for building the standard house in four cities.
ing
group
TAMPA
D
m&
Totol
Lumber, unfinished
Millwork
Lumber, finished
Masons' maferials
Heating
Plumbing
COMMUNITIES
City
PERCENT
+10 +20 +30 +40 +50 +60 +7
Painters' materials
DIFFERENT
Report-
O
mm m •
mm•
This chart illustrates the wide local variations in trends of building material
prices since the outbreak of War in the Fall of 1939. In Indianapolis, the increase
in the over-all index was due mainly to plumbing and painters' materials. In
Tampa, which reported about the same average rise in building material costs
indicated for Indianapolis, unfinished lumber, painters' materials, and heating
equipment were principal contributing factors. In Seattle, hardware and
plumbing showed the largest increases in addition to lumber. In Albany, on
the other hand, costs for all material groups registered considerable advances,
with paint heading the list.
Differences in local supply conditions, geographic
relationships to production and distribution centers,
dislocations by sudden spurts in defense construction demand, and the various price policies adopted
by local dealers go a long way toward explaining the
variation of cost trends for the same groups of building materials.
On the whole, these differences—geographically
and commodity-wise—make it desirable for mortgage-lending institutions to investigate thoroughly
the nature, causes, and extent of building cost increases in their own areas before they formulate their
policies in regard to any revision of appraisal and
lending standards.
Appointment of Public Interest
Director
•
I T was recently announced by the Federal Home
Loan Bank Board that Harry S. Kissell, a
realtor of Springfield, Ohio, was appointed a Public
Interest Director of the Federal Home Loan Bank
of Cincinnati to serve a 4-year term expiring December 31, 1945.
195
HAWAII SAVINGS AND LOAN ASSOCIATIONS
UNDER FIRE
A report from associations operating in a war area has come to
the REVIEW from Hawaii.
Savings and loan executives throughout
the country will be interested in how these institutions are carrying on.
•
T H E attack on Hawaii on December 7 left
unscathed the five member savings and loan
associations and the two Hawaiian branches of
member institutions on the Mainland. There were
of course, unusual withdrawals but they reached no
alarming proportions, and curiously enough the most
pressing problem for management at present is to
find satisfactory outlets for the new investments
and mortgage-loan repayments which continue to
flow into the associations. Savings and loan executives in Hawaii keep in close touch with each other,
and the following information, relayed through the
Federal Home Loan Bank of Los Angeles, is based
on a survey obtained in one of their meetings.
Withdrawals, it was reported, were made primarily for the purchase of defense savings bonds,
the evacuation of families from the Islands, and by
investors residing on the Mainland who had become
unduly concerned over the situation in Hawaii.
Insured associations reported that insurance of
accounts has proved exceedingly helpful in dispelling fears of investors as to the safety of their
savings during the emergency.
Receipts on existing accounts continued at a
normal rate, and all associations reported new
accounts opened in a considerable volume. An
order by the Military Governor restricting to $200
the amount of currency in the possession of any one
individual resulted in the placement of $7,000,000
in savings and loan associations and the various other
financial institutions. While this cash strengthens
the liquidity position of the institutions and gives
evidence of the confidence the populace has placed
i n t h e m , it has created the problem of how to employ
the funds.
Home-mortgage lending on new construction has
been completely stopped due to the freezing of
stocks of building materials by Governmental
authorities. At the same time, applications for
loans on existing structures have fallen off considerably because of a slow real estate market.
Every association reported a few instances of
reductions in the amount of monthly payments on
196
mortgage loans. In these cases, family heads were
called into active service either under the Selective
Service Act or as reserve officers; incomes decreased
due to the loss of jobs as in the case of automobile
salesmen; rentals on mortgaged apartment houses
declined; or homes were disrupted by the evacuation
of women and children. I n other instances, enemy
aliens who were taken into custody either suspended
or reduced their mortgage payments.
Hawaiian associations have been the first to be
confronted with the need for protecting their
records against destruction from bombing, and
arrangements are now under discussion for the
safekeeping of duplicate records on the Mainland.
There are no idle moments in Hawaii—one executive reported that aside from performing his managerial duties, he is a member of the Morale Division
of the Office of Civilian Defense, a volunteer Fire
Warden, and a member of the Business Men's
Training Corps. Despite the vast changes brought
to Hawaii, however, savings and loan associations
in this outpost are carrying on.
Dept. of Interior photo.
FORT STREET, HONOLULU, FROM ALOHA T O W E R
Federal Home Loan Bank Review
DESIGNATION OF DEFENSE-RENTAL AREAS
INITIATES FEDERAL ACTION ON RENTS
Passage of the price-control legislation late in January provided the
framework for regulation of residential rents on a nation-wide basis.
The Price Administrator is now taking steps to establish maximum
rents within specified key defense areas.
•
FORMAL designation of the first group of 20
"defense-rental areas" by Federal Price Administrator Leon Henderson on March 2 marks the
initial action in rent regulation under the Emergency Price-Control Act which was passed late in
January. Housing conditions in each of these communities have been greatly affected by the impact of
the defense and War programs which are upsetting
the normal functioning of the local real-estate market. The need for additional dwelling units outstripped the existing supply of vacancies and of newly
constructed or planned projects. In order to prevent
abnormal increases in rents, the Price Administrator
has now set the administrative wheels in motion with
formal declarations of necessity and recommendations for the stabilization or reduction of rents in
these areas.
involved. This may be restricted to the boundaries
of a single city or town or may include an entire
county or group of cities and towns. The mere
designation of a defense-rental area is in itself an
indication that rents in this region are under close
observation and local officials are thereby put "on
notice" as to the imminence of Government action.
(PUBLIC LAW 421—77TH CONGRESS}
[CHAPTER 26—2D SESSION]
[H. R. 5990]
AN ACT
To further the national defense and security by checking speculative and excessive
price rises, price dislocations, and inflationary tendencies, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled^
TITLE I—GENERAL PROVISIONS AND AUTHORITY
PURPOSES; TIME LIMIT; APPLICABILITY
How
R E N T CONTROL W I L L B E APPLIED
Months of continuous effort to gather accurate information on all areas affected by the War program
lie behind this first move to initiate regulatory action.
Field representatives of the OPA and local Fair
Rent Committees have provided local information,
and the Washington office of OPA is in constant
touch with all available sources of data concerning
war activities, population trends, vacancies, and
other pertinent data affecting rents. Studies by the
Bureau of Labor Statistics of the Department of
Labor of rental changes in a selected group of cities
were augmented by a substantial number of surveys
conducted by the WPA Division of Research and
Statistics. Governors of all States as well as many
municipal officials were requested to offer their
recommendations for problem areas.
Analysis of this information has focused attention
on those communities in which rents have risen or
threatened to rise to an extent inconsistent with the
purpose of this Act outlined in the opening phrases
reproduced in the next column.
Designation of a defense-rental area is limited
primarily to a geographic description of the territory
March 1942
SECTION 1. (a) It is hereby declared to be in the interest of the
national defense and security and necessary to the effective prosecution of the present "war, and the purposes of this Act are, to stabilize
prices and to prevent^speculative, unwarranted, and abnormal
increases in prices and |rents\ to eliminate and prevent profiteering,
hoarding, manipulation^spwulation, and other disruptive practices
resulting from abnormal market conditions orscarcities caused by or
contributing to the national emergency; to assure that defense appropriations are not dissipated by excessive prices; to protect persons
with relatively fixed and limited incomes, consumers, wage earners,
investors, and persons dependent on life insurance, annuities, and
pensions, from undue impairment of their standard of living; to
prevent hardships to persons engaged in business, to schools, universities, and other institutions, and to the Federal, State, and local
governments, which would result from abnormal increases in prices;
assist insecuring adequate production of commodities and facilicollai^eof values' to stabilize
DECLARATION OF NECESSITY AND RECOMMENDATIONS
Depending upon the circumstances in individual
communities, the second administrative step—the
declaration of necessity and recommendations—may
be taken simultaneously with the designation, as was
the case in the areas designated on March 2, or may
follow at a later date. The Act provides that "whenever in the judgment of the Administrator such
action is necessary or proper in order to effectuate
the purposes of this Act, he shall issue a declaration
setting forth the necessity for, and recommendation
with reference to, the stabilization or reduction of
rents for any defense-area housing accommodations
within a particular defense-rental area." Rec197
ommendations made in the first 20 declarations are
quite specific in outlining the extent of control
necessary to reduce rents to an acceptable level.
A suggested maximum rent date was included to
serve as an additional guide to local or State regulatory bodies empowered to correct existing conditions. (See page 216 for definition of prevailing rent
date.) Distinctions are also being made for the application of control measures to various types of
housing where these become important and controlling factors.
Copies of the declarations and recommendations
have been printed in the Federal Register and mailed
to the Governors of the States as well as to the mayors
of all principal cities involved.
LOCAL INITIATIVE
MAY
FORESTALL
GOVERNMENT
ACTION
Following the designation of a "defense-rental
area" and the issuance of a declaration of necessity
and recommendation in regard to this area, a period
of 60 days must elapse before further Federal action
may be taken. This waiting period provides an
opportunity for State or local regulations to be
adopted which would put into force the suggestions
of the Price Administrator. If within 60 days rents
have not been reduced and stabilized by State or
local regulation or otherwise, in accordance with the
recommendations, then the Administrator may establish maximum rents which " i n his judgment will be
generally fair and will effectuate the purposes of this
Act." Further, these maximum rents may be below
the prevailing level of rents for housing accommodations at the time the regulations are issued.
Administrative procedures, which will be followed
in the event it becomes necessary to take this third
and final step, have not as yet been issued. I t is
certain, however, that the officials who will be
carrying out the Act in the individual communities
will be appointed as agents of the Federal Government with all the authority necessary to achieve
adequate control over local rents.
CLEARING UP SOME F A L S E IMPRESSIONS
Contrary to a general impression, the provisions
for rent control do not in any way "freeze" or
stabilize all rents as of a given date. Even in the
districts designated as defense-rental areas, only
rents for housing accomodations are affected in contrast to a rent control program now being operated in Canada which is more comprehensive in
covering various types of real-estate property.
198
Defense-rental areas announced March 3
Defense r e n t a l area 3
Maximum
rent date
Bridgeport, Conn
Hartford-New Britain, Conn
W a t e r b u r y , Conn
Schenectady, N . Y
Birmingham, Ala
Mobile, Ala
Columbus, Ga
Wilmington, N . C
H a m p t o n Roads, Va., a r e a _ .
Detroit, Mich
Akron, Ohio
C a n t o n , Ohio
Cleveland, Ohio
R a v e n n a , Ohio
Youngstown-Warren, O h i o . .
S o u t h Bend, I n d
Burlington, Iowa
Wichita, K a n s
San Diego, Calif
P u g e t Sound, Wash., area__
i Each area extends beyond the municipal limits of the principal city
or cities within it and includes many surrounding communities where
rents have been affected by war production or military activity. For
example, Detroit, Mich., includes the counties of Wayne, Oakland and
Macomb in their entireties.
Confusion arising over the extent of rent regulations on new construction has also been widespread
and has added to the hesitancy of contractors and
speculative builders to erect privately financed
rental projects. Officials of the Office of Price
Administration, however, have already expressed
their intention to provide prospective builders with
at least a general idea of the returns which may be
expected from renting the proposed dwellings before
actual construction operations are begun.
LOCAL AUTHORITIES TO PROVIDE FOCAL P O I N T
Virtually every phase of the Price-Control Act
regarding the regulation of rents provides an opportunity for local authorities to assume the initiative
in bringing rent conditions under control.
The ground work laid by local Fair Kent Committees, which have been operating successfully in
many communities during the past several months,
will now be the basis for more concerted local action.
The work of these committees should be greatly
strengthened now that it is known that if the local
authorities cannot control the situation, the Federal
Government will take a hand. Local groups such
as the Fair Rent Committees will be extremely useful
in obtaining information on the rent situationin their
own communities.
{Continued on p. 216)
Federal Home Loan Bank Review
«
FROM THE MONTH'S NEWS
«
SAVINGS EFFORT: ". . . it seems to
me, our major effort now must be directed
particularly at those in all walks of life
who receive regular pay from wages and
salaries. Inflation feeds on current income, rather than on the money that
now rests in the vaults of savings banks."
Secretary of the Treasury Morgenthau, Dec. 17, 1941.
READY MONEY: "Compared with the
problem which industry is called upon to
solve, the financial problem is secondary
There is no doubt whatever that the
money needed for this immense national
undertaking will be ready when called
f or "
Winthrop W. Aldrich, annual
report to shareholders of The
Chase National Bank, Investment Dealers Digest, Jan. 19,
1942.
OWNED REAL ESTATE: "As far as institutional ownership is concerned it is
difficult, therefore, to see any reason for
changing the current policy of orderly
liquidation of owned real estate. Instead of raising prices, the prudent policy
today would seem rather to seek larger
down payments and better terms, which
may be obtainable as a result of the war."
»
»
»
Construction on a war footing
"The construction industry during 1942 will be strictly a war
business. Its job will be to expand the Nation's war industries and
provide housing facilities for workers in those industries.
"The residential field will be completely dominated by the war
program . . . it is estimated t h a t the total number of new dwelling
units built this year may better 450,000. (1941 estimated total,
615,000 units) . . . All signs point to a continuation of the upward
trend (in building costs) which has been in effect for the past year or
more. The advance this year, however, should be slower than in
1941."
Wall Street Journal, Annual Business Survey, Jan. 5, 1942.
Decentralization in reverse
"For the duration of the war at least, the scarcity of new automobiles and tires may slow down—and, in some instances, reverse—
the migration of city dwellers to the suburbs.
"We're just beginning to realize t h a t we may have to change a lot
of our habits. B u t there may be basic changes, too. Will people
turn their 'installment buying' toward acquiring homes when they
can't get autos? I think a great many will and I believe transportation restrictions may bring a movement to stay 'close to town 7 ."
The Mortgage Banker, Jan. 1,
1942.
Fred. W. Catlett, Jan. 17, 1942.
WIN OR LOSE: "These are times in
which battles and wars are won or lost
by business many months before they
are fought out by soldiers."
Business Bulletin, The Cleveland Trust Co., Dec. 15, 1941.
SUCCESS AND FAILURE: "The difference
between success and failure in the defense
program of this Nation may depend in
large degree upon the health and morale
of its people . . . Safeguarding men in
uniform when they are on leave and defense workers and their families against
conditions harmful to health and morale,
is therefore an integral part of our defense
effort "
*
Paul v
* M c N u t t , Federal Security Administrator, Architectural Record, December
1941.
POSTWAR REBUILDING: "With approximately one-fourth of our urban areas
now blighted, the housing problem becomes merely an incident in that larger
problem of replanning and rebuilding our
cities, which must be the major activity
of the post-war (defense) period. . . .
Nothing else is big enough to replace
armament production in our economy."
Herbert U. Nelson, Freehold,
December 1941.
March 1942
JLAl Ju-ju.I,I„I I.IJ-JUJ-I I,.I,1 i t ' l l .
4V f
*
A « J
*940
Source: federal Reserve Board
The chart illustrates the sharp decline in time deposits held by weekly reporting member banks of the
Federal Reserve System during the past few months. By January this decline had wiped out the entire
gain over the 2 preceding years. Weekly reporting member banks are located in 101 cities and account
for approximately 45 percent of the time deposits of all Federal Reserve members and 35 percent of the
time deposits of all insured commercial banks.
I99
RESIDENTIAL BUILDING ACTIVITY AND SELECTED INFLUENCING FACTORS
1935-1939= 100
BY YEARS
BY MONTHS
INDEX
280
INDEX
280
i
'
>
i
i
«
i
ADJUSTED FOR SEASONAL VARIATION
260
I
1 1 1 11
RESIDENTIAL CONSTRUCTION-^
2401
220
200 j
A.
I80|
RESIDENTIAL
160J
\
V.
CONSTRUCTION^
•**
<U. S. DEPT OF LAB OR RECORDS)
v
140
Y \
/*•.,..•••*
a LOAN LENDING]
<av\*<?.
g\
120
AjrSVGS.
r\
a LOAN LENDING | V
L _ J \ (FEDERAL HOME LOAN BANK AOMIN.)
100
60
..••"-•£•/"' ••*'
\/f~
/
80
3
y /
%
*'*
- w .
1 1 ^N
NONFARM
I\
i
FORECLOSURES-*^ \ ^ ^
/ I
X l F E D E R A L HOME LOAN BANK ADMIN.)
40
L^
NONFARM
—s~V1
1
s -
1
runc.isi.uounco
1
1
I
^
20
1
0
140
1
1
BUILDING MATERIAL PRICES^
|(U. S. DEPARTMENT OF L A B O R )
1
I
i
i
_ j£_
i
i
i
I
i,
1 1
BUILDING MATERIAL PRICESX - ,
1.
i
|
t>~
i
j
«nwssn5tnn<m3!E!*r
"REt
120
100
i
__
80
(NATIONAL INDUSTRIAL CONFERENCE BOARD)
J
60 •A^200
|
I
L
'
-V-1
-^V
i
i
i
i
_L_i_
i
1
i
1
1
1
i
1
i
1
1
1
i
1 1, , 1
i
1
"^
1
1
i
, ,
-^
i
ADJUSTED FOR SEASONAL VARIATION
180
-INL USTi ?/41 PRnnur.TinN^
160
?• ***
---T"
11 / 1
1 ...~„'
y A**
""^ >
140
INDUSTRIAL PRODUCTION
120
(FEDERAL RESERVE BOARD).
'•.,
V-
......-••
^L^
i~ ***••"'
INCCWE / 'ArmENTS
ioo
80
60 ^ V
1930
—&..*<*'31 '32 '33 '34 '35 '36 '37 '38 '39 '40
INDEX COST OF STANDARD SIX-ROOM HOUSE
135
1935-1939 = 100
LLV
7-A/J
'4|
1 ,
i i
WHOLESALE COMMODITY PRICES
_ j L_
i
i
_J L_
1941
i
i
i
1942
^LUONS F K L . B . ADVANCES OUTSTANDING
INDUSTRIAL
^
200
1 |
$240
1935-1939=100
^ALL
, ,
1940
FEB. MAR. APR. MAY
Federal
JUN. JUL. AUG. SEP OCT NOV. DEC.
Home
Loan Bank Review
MONTHLY
SURVEY
HIGHLIGHTS
/. A continued high level of consumers' purchases, on the one hand, and a peak volume of defense bond sales, on the other, began to
show effects on the funds in private financial institutions.
A. Data for insured institutions indicate that savings and loan associations experienced a slight decline in private repurchasable
capital during January,
B. Federal Home Loan Bank advances to member institutions decreased less than normally expected at this time of the year,
with over $206,000,000
outstanding on January 31.
II. Residential construction activity showed little change from December to January, and the seasonally adjusted index advanced 8 percent—the first increase since June 1941*
A. The total volume of new building was well maintained through increased defense housing by public agencies.
B. Privately financed construction of single-family dwellings declined in line with the seasonal trend, and a sharp drop in permit
valuations reflected the preponderance of the small and inexpensive house in current building operations.
III. Building material prices continued to advance, with the sharpest rises noted for plumbing and heating equipment as well as for paint
and paint materials.
IV. Mortgage-financing activity fell more sharply than usually expected at this season.
A. The dollar volume of nonfarm mortgages of $20,000
or less recorded during January was 18 percent below the December
figure though somewhat higher than in the same month of 1941.
B. New mortgage loans made by savings and loan associations during January totaled $79,500,000—a
2-percent reduction
from the volume reported for the opening month of 1941.
V. A further drop in foreclosures in nonfarm areas reflected improving real-estate conditions in most sections of the country.
SUMMARY
While industrial production in January climbed to
new highs under the stimulation of the War program,
savings and loan associations began to feel the pinch
of war-time operations. As a result of large repurchases of private investments after the year-end
and of the payment of dividends, insured savings and
loan associations experienced a decline in assets and
in private repurchasable capital—the first drop since
the establishment of the Federal Savings and Loan
Insurance Corporation in 1934. The seasonally adjusted index of mortgage-lending activity by all savings and loan associations showed a reduction in
excess of the normal seasonal decrease during
January.
The volume of residential construction was somewhat better maintained than in the past few months
but this was due to increased activity on the part of
public agencies engaged in defense housing. Privately
financed building of 1-family units sustained the normal seasonal decline, and there was a notable drop in
the average permit valuation per dwelling unit, indicating that new building activity is being limited
more and more to the small inexpensive house. This
tendency is one of the reasons why the dollar amount
of construction loans made by savings and loan
associations has been falling off.
The decline in private repurchasable capital held
by savings and loan associations and similar trends
March 1942
in other types of financial institutions must be viewed
in the light of the progress of the war savings campaign.
During January the Treasury received
$1,060,547,000 from the proceeds of national defense
bond sales, of which $667,411,000 was from the sales
of Series E. As is customary, February sales were
lower—$703,200,000, of which almost $400,000,000
was in Series E. Yet, these figures by far exceeded
any monthly sales volume prior to January.
The increasing effectiveness with which savings
and loan associations cooperate in the campaign is
indicated by the fact that they sold $26,600,000 in
defense bonds and stamps during January—more
than three times the December volume. Cumulative
sales through savings and loan associations by the
end of January approximated $50,000,000.
[1935-1939=100]
Jan.
Dec.
1942
1941
Percent
change
Jan.
1941
143.7
32.3
110.4
122.0
162.3
p 170. 0
v 138.4
*207.3
* 150.3
132.7
32.4
110.2
120.4
r 169.8
' 167.0
r 136. 9
r 194.6
r 148.8
+8.3
-0.3
+0.2
+1.3
-4.4
+1.8
+1.1
+6.5
+1.0
192.7
44.0
107.4
111.2
164.2
140.0
120.6
144.4
121.3
Percent
change
-25.4
-26.6
+2.8
+9.7
-1.2
+21.4
+14.8
+43.6
+23.9
p preliminary.
r revised.
i Adjusted for normal seasonal variation.
201
BUSINESS C O N D I T I O N S - S h a r p rise
in retail sales
As industry and trade are placed on a war-time
basis, the seasonal movements observed in normal
times are more and more obliterated. Thus, the
index of industrial output during January continued
to increase to 170 (average month of 1935-1939—100)
compared with 167 the month before, on a seasonally adjusted basis.
Production of steel and nonferrous metals continued near capacity and lumber production, which
usually falls off at this season, was sustained. The
output of passenger cars and light trucks was at
about the December rate; in February, however,
production for civilian use was halted and the automobile plants were shut down for conversion to
armament production.
The volume of retail sales also showed further rises
in contrast to the normal decline. This was due not
only to increasing purchasing power in the hands of
consumers but also to a continued purchase spree in
anticipation of supply restrictions and higher prices.
Department store sales in January were slightly
higher than in December, which usually is a peak
month, and 38 percent in excess of the volume of
January 1941.
Wholesale prices continued their broad advance
and by the middle of February the over-all index of
the Bureau of Labor Statistics, including farm products and food, reached a level almost 20 percent
above the level of a year ago. The Emergency
Price-Control Act became effective January 30 and
former maximum price schedules remained in force
under its terms.
Financial developments in January were characterized by further increases in loans and investments by commercial banks, and by sharp rises in
deposits and currency in circulation. Excess reserves
of Federal Reserve members continued close to
$3,500,000,000.
BUILDING ACTIVITY-Downward
trend halted in January
Building activity recovered slightly in January
from the sweeping downward movement which has
been felt since mid-year 1941. Although there is
normally a reduction of 7 percent in home building
in the December-to-January interval, 1942 began
with an increase of 1 percent; hence the seasonally
adjusted index was advanced 8 percent over the
close of last year.
202
However, this was due entirely to publicly financed
housing. Of the privately financed units, only twoand multifamily dwellings showed increases while
one-family dwellings were down in line with the 6percent decline customarily sustained by residential
construction as a whole. I t may be noted that detached homes have always in the past faced greater
handicaps than other types of dwellings during the
colder months due to the relative difficulty of installing devices for the prevention of freezing in concrete
and mortar.
The effects of priority restrictions are revealed by
a comparison of December-January movements in
the number and permit valuation of new privately
financed dwelling units. The number declined from
17,598 to 17,072 units, or 3 percent. The combined
permit valuation decreased from $65,183,000 to
$58,754,000, or almost 10 percent. This undoubtedly
reflects the concentration of new construction activity on small and inexpensive units suitable for defense
workers and keeping within the cost limits set under
priority rules. [TABLES 1 and 2.]
BUILDING COSTS-Advance
continued unabated
Building costs for both material and labor continued to rise through the month of January. The
Federal Home Loan Bank Administration's index
of the cost for constructing a standard 6-room frame
house rose almost 1 percent to a new high of 120.6,
nearly 21 percent over the average of 1935-1939.
Charges for materials used in the construction of
this house showed a gain of nearly 1 percent for the
month and now stand 11 percent above January of
last year. Labor prices advanced fractionally, and
the index for January was 9 percent higher than in
the same month of 1941.
An analysis of individual cities reveals that during
the period from November to February, costs involved in the construction of a standard 6-room
frame house rose in nearly all of the 24 reporting
communities. I n 12 cities, a rise of a t least $100 in
total costs was indicated.
Continued rises in wholesale prices of building
materials, which usually precede changes in retail
prices reflected in the standard-house index, were
evident throughout January and February. Plumbing and heating materials registered the sharpest
increase in January—5 percent—with paint and
paint materials showing the second largest rise of
3 percent.
[TABLES 3, 4, and 5.]
Federal Home Loan Bank Review
Construction costs for the standard house
drop in January
[Average month of 1935-1939=1001
i
Element of cost
J a n . i Dec.
1942
1941
Percent
change
Jan.
1941
Percent
change
.1
Material
Labor
Total
118. 6
124. 5
117. 7
124. 2
+ 0.8
+ 0.2
106. 6
114. 5
+ 11.3
+ 8.7
120. 6
119.9
+ 0.6
109.3
+ 10.3
M O R T G A G E L E N D I N G — A c t i v i t y declined
below January 1941 level
Total volume of new mortgage lending of savings
and loan associations receded rapidly during the
winter months, and in January of this year only
$79,500,000 was disbursed for new loans, or 1 percent less than in the opening month of 1941. Thus,
for the first time since the close of 1938, total loans
dropped below the corresponding figure for the preceding year. In each month of 1941, loan totals
had been at least 10 percent in excess of 1940.
In the latter half of 1941, a substantial improvement in the volume of home-purchase loans offset
in large part the decline in construction loans and
was the principal sustaining factor in mortgagelending activity. This seems to have been checked
somewhat at the turn of the year and may explain
the drop in total loan volume registered during
January.
MORTGAGE RECORDINGS—18 percent
[TABLES 6 and 7.]
The $321,400,000 in mortgages of $20,000 or less
recorded during January represents a reduction of 18
percent from the previous month. Although this
drop was greater than that during the first month
of 1939, 1940, and 1941, mortgage recordings have
shown a rather strong resistance to those negative
housing-market factors which have been brought into
play in the latter half of last year. As a result, the
January dollar volume was still 5 percent higher than
a year previous, and 22 percent above the level of
January 1940.
Among the various classes of lenders, mutual savings banks revealed the greatest declines in mortgage
financing during the December-January interval—
30 percent during the month. Next in magnitude of
decrease were commercial banks, which were down
22 percent, and savings and loan associations which
experienced a 20-percent contraction. Mortgages
recorded in the name of individuals constituted the
only group to recede less than 10 percent.
Comparing January recordings for 1942 with 1941,
each class of lender with the exception of commercial
banks revealed higher volumes ranging from 12 percent for insurance companies and miscellaneous mortgagees down to less than 1 percent for savings and
loan associations. [TABLES 8 and 9.]
Mortgage recordings by type of mortgagee
[Amounts are shown in thousands of dollars]
FORECLOSURES—Decline
in most areas
T y p e of lender
Foreclosure activity in nonfarm areas declined
somewhat during January, thus continuing the downward trend which has been evident over a period of
eight years. The seasonally adjusted index of foreclosures stood at 32.3 for January, the equivalent of
a decline of more than 67 percent from the average
level of the 1935-1939 base period. However, the
decline from December to January was only small.
Geographically, 8 of the 12 Federal Home Loan
Bank Districts joined in the decline of foreclosures
from December to January. A higher foreclosure
volume was noted in the New York, Pittsburgh, and
Little Rock Districts, and no change was reported
in the Los Angeles area. Compared with January
1941, foreclosure actions were lower in all sections of
the country.
[TABLE 10.]
Morcft 1942
Savings a n d loan associations.
Insurance companies
Banks, t r u s t companies _
M u t u a l savings b a n k s - __
Individuals
Others _ _ _
Total
January
1942
amount
Percent
change,
Jan.
1941Jan.
1942
-19.7
-16.5
-22. 3
-29. 8
-8. 5
-15.7
28. 2 $90, 572
9.7
31,062
24. 1 77, 631
4.2
13, 523
18.4
59, 033
15. 4 49, 575
-f-0. 6
+ 12. 2
-1.7
+ 4.6
+ 9. 5
+ 12 3
-18. 1
100.0 321, 396
+ 4. 5
Percent
change
from
Dec.
1941
Percent of
Jan.
1942
amount
INSURED ASSOCIATIONS-Slight
decline in assets
As a result of substantial repurchases of private
capital coupled with year-end cash payment of
dividends from undivided profits, the total assets of
203
all insured savings and loan associations dropped
nearly 2 percent from the close of 1941 to $3,312,000,000 as of January 31.
Insured associations experienced repurchases in
the amount of $119,000,000 during January, an
all-time high. On the other hand, new investments
in this same month totaled some $106,000,000,
considerably below the January 1941 volume of
$127,000,000 but slightly higher than the $103,000,000 reported in January 1940. Hence, for the first
time since 1936 when comprehensive records were
begun on this item, repurchases exceeded new
investments as the new year got under way.
This must not be interpreted as a definite indication
that savings and loan associations are entering into
a period of shrinkage. The seasonal and other
factors, which combined in January to effect a
decline in private repurchasable capital, will probably
not continue to operate with the same force in the
months to come. Nevertheless, the experience
during January seems to presage the retrenchment
necessary during the war emergency.
In line with the trend indicated for all insured
institutions, Federal savings and loan associations
registered a decline in assets from $2,173,700,000 at
the end of last year to $2,132,200,000 on January 31.
During the month, the number of Federals increased
from 1,462 to 1,464. [TABLE 12.]
Progress in number and assets of Federals
[Amounts are shown in thousands of dollars]
Number
Class of
association
New
_
Converted _ _ __
Total
Approximate assets
J a n . 31, Dec. 31,
1942
1941
641
823
1, 464
J a n . 31,
1942 P
640 $669, 819
822 1, 462, 375
1,462
2, 132, 194
Dec. 3 1 ,
1941
$684, 427
1, 489, 253
2, 173, 680
v Preliminary.
BANK SYSTEM-Hi3h volume
of advances maintained
Reflecting the decline in private capital of savings
and loan associations, discussed elsewhere in this
section, member institutions of the Federal Home
Loan Bank System in January relied more heavily
than normally at that time of the year on the credit
facilities provided by the 12 Banks. Repayments on
204
Beginning with this issue, the scope of information contained in the statistical section of
the R E V I E W has been broadened to present a
more comprehensive picture of trends in homemortgage finance.
Table 11 now provides data on the principal
insurance operations of the Federal Housing
Administration. Table 13 has been amended
to include, in addition to the lending operations
of the Federal Home Loan Banks, important
items from their balance sheets. Tables 14
and 15 present current information on the
progress of the defense savings campaign and
on the volume of savings held by selected
financial institutions.
In addition to these monthly tables, each
quarter the R E V I E W will publish statistics on
other phases of home finance. These statistics
will be found on page 215 of this issue. Table
16 contains data on the principal operations of
the Home Owners' Loan Corporation. Table
17 shows investments of the Treasury and the
HOLC in savings and loan associations. Table
18 provides information on the holdings of
FHA-insured mortgages by the various classes
of lending institutions.
Bank advances during January were below normal
expectations and totaled $22,395,000 compared with
$36,786,000 in January 1941. New advances, on
the other hand, were somewhat in excess of normal
January volumes and aggregated $9,017,000 as
against $6,143,000 in the first month of 1941. As a
result, advances outstanding declined only $13,378,000 from the all-time peak of December 1941 to
$206,068,000—the highest January figure to date.
Each of the 12 Banks reported lower repayments
than in January 1941, and all except Pittsburgh,
Cincinnati, Little Rock, and Topeka advanced more
money during the month than in the corresponding
period of last year.
Table 13, which now includes all pertinent balancesheet items of the Federal Home Loan Banks,
indicates that member institutions drew also on their
deposits with the Banks to improve their immediate
liquidity position. Member deposits dropped approximately $5,470,000 during January. Cash and
Government securities held by the Banks at the end
of the month totaled $95,349,000 compared with
$88,089,000 at the close of 1941, after consolidation.
Federal Home Loan Bank Review
Member institutions on January 31 numbered
3,826 and held aggregate assets of $5,423,437,000.
This reflects an increase of two in the number of
members and a decline of approximately $47,000,000
in resources during the month.
D E B E N T U R E ISSUES
On February 24, Series H X-percent debentures
in the amount of $15,000,000, which had been issued
two months before, fell due and were retired. On
February 26, new Series I %-percent debentures
were floated, amounting to $26,000,000. This issue
is dated, and bears interest from, March 5 and is
due September 1, 1942. As was the case in previous offerings of the Federal Home Loan Banks,
subscriptions to this issue exceeded by far the amount
floated.
[TABLE 13.1
Directory of Member Institutions
(Continued from p. 191)
WITHDRAWALS FROM THE FEDERAL HOME LOAN
SYSTEM BETWEEN JANUARY 16 AND FEBRUARY 15,
BANK
1942
N E W JERSEY:
Newark:
Eleventh Ward Building and Loan Association, 487 Orange Street
(segregation and sale of assets to Bradford Savings and Loan Association, Newark).
Newark:
L. O. O. M. Building and Loan Association of Newark, 1186 Raymond
Boulevard (liquidation).
NORTH CAROLINA:
Statesville:
Mutual Building and Loan Association, South Center (voluntary
liquidation).
PENNSYLVANIA:
Pittsburgh:
Graridview Building and Loan Association, 2995 West Liberty Avenue
(member's request).
TENNESSEE:
Fayette ville:
Home Building and Loan Association of Fayetteville, Public Square and
Elk Avenue (voluntary liquidation).
II. FEDERAL SAVINGS AND LOAN ASSOCIATIONS
CHARTERED BETWEEN JANUARY 16 AND FEBRUARY 15, 1942
DISTRICT NO. 2
N E W JERSEY:
Rahway:
Axia Federal Savings and Loan Association of Rahway, 1599 Irving
Street (converted from Axia Savings and Loan Association of Rahway).
DISTRICT NO. 3
PENNSYLVANIA:
Philadelphia:
Liberty Federal Savings and Loan Association of Philadelphia, 1314
North American Building (converted from First Lithuanian Building
and Loan Association of Philadelphia).
III. INSTITUTIONS INSURED BY THE FEDERAL
SAVINGS AND LOAN INSURANCE CORPORATION
BETWEEN JANUARY 16 AND FEBRUARY 15, 1942
DISTRICT NO. 2
N E W JERSEY:
Newark:
Bradford Savings and Loan Association, 487 Orange Street.
N E W YORK:
Utica:
Cornhill Building and Loan Association, 224 Genessee Street.
DISTRICT NO. 3
PENNSYLVANIA:
Shillington:
Shillington Building and Loan Association, 6 Philadelphia Avenue.
March 1942
DISTRICT NO. 6
MICHIGAN:
Iron River:
Iron Savings and Loan Association, 425 Third Street.
INSURANCE
CERTIFICATE
CANCELED BETWEEN
16 AND FEBRUARY 15,
1942
JANUARY
KANSAS:
Abilene:
The Dickinson County Building and Loan Association (membership
canceled November 6, 1941).
Proposed Resolution of the Board
P R O P O S E D A M E N D M E N T TO T H E R U L E S A N D
REGULA-
T I O N S FOR T H E F E D E R A L S A V I N G S A N D L O A N SYSTEM
LIMITING T H E A U T H O R I T Y OF ASSOCIATIONS TO P U R CHASE A S S E T S , OFFICE B U I L D I N G , OR L A N D T H E R E F O R
W I T H O U T PRIOR BOARD A P P R O V A L
On February 11 the Board proposed an amendment to subsection (b) of Section 203.13 of the
Rules and Regulations for the Federal Savings and
Loan System. This amendment is proposed in lieu
of a similar though less comprehensive one adopted
in October 1941 which was published in the November issue of the R E V I E W .
In addition to the provisions included in the
amendment proposed earlier, the new amendment
stipulates that not only must a Federal association
secure prior Board approval for the purchase of an
office building or land therefor from a director,
officer, or employee, but that it must have the previous approval of the Board before making such purchase from an institution, corporation, or partnership
in which such person is financially interested.
If the present proposal is adopted by the Board,
subsection (b) of section 203.13 will read:
<:
(b) Purchase of assets. Federal associations shall
primarily engage in lending their funds, but may incidentally purchase loans of a type which they are permitted
to make; provided that, no Federal association may purchase any mortgage from an affiliated institution or from
an officer, director, or employee of the association, or of
a type that it is not authorized to make originally,
without the prior approval of the Board. No Federal
association may purchase an office building, or any part
thereof, or land upon which to erect an office building,
from an affiliated institution, from an officer, director, or
employee of the association, or from a corporation or
association in which any officer, director, or employee is
a stockholder or is an officer, director, or employee, or
from a partnership in which any officer, director, or employee is a partner, without the prior approval of the
Board,"
This proposed amendment will not be formally
approved until at least 30 days after it was mailed
to the Federal Savings and Loan Advisory Council
(February 13, 1942).
205
Table 7 . — B U I L D I N G
A C T I V I T Y — E s t i m a t e d number and valuation of new family dwelling
units provided in all urban areas of the United States
[Source: U. S. D e p a r t m e n t of Labor]
[Amounts are shown in t h o u s a n d s of dollars]
N u m b e r of family dwelling units
M o n t h l y totals
T y p e of construction
Jan.
1942
Dec.
1941
P e r m i t valuation
Annual totals
Jan.
1941
1941
Jan.
1942
1940
Jan.
1941
1941
1940
51,911
2, 785
58, 516
2,982
65, 472
3, 177
1,164,161
59,494
1, 007, 934
50, 215
4, 058
3, 685
18, 163
145,328
147, 805
64, 300
10, 069
8, 116
8, 850
228,068
197, 047
T o t a l u r b a n construction
_
20, 149 19, 850 27, 027 434, 416 397, 466
68, 823
73, 299
95, 662
1,597,051
1,403,001
1-family dwellings
13, 878 14, 943 16, 852 292, 397 262, 021
2-family dwellings l
22, 770 19, 966
1, 190 1,339
1,238
3-and more-family dwell2
ings
1,956
1,465
51, 304 51, 179
6,028
Public construction
2
Dec.
1941
17, 072 17, 598 24, 219 366, 471 333, 166 $58, 754 $65, 183 $86, 812 $1,368,983 $1, 205, 954
P r i v a t e construction
1
Annual totals
Monthly totals
_
3,077
2, 252
2,808
67, 945
Includes 1-and 2-family dwellings combined with stores.
Includes multifamily dwellings combined with stores.
Table 2 . — B U I L D I N G A C T I V I T Y — E s t i m a t e d number and valuation of new family dwelling units
provided in all urban areas, in January 1942, by Federal Home Loan Bank District and by State
[Source: U. S. D e p a r t m e n t of Labor]
[Amounts are shown in t h o u s a n d s of dollars]
j
:
All residential dwellings
All p r i v a t e 1- and 2-family dwellings
i
Federal H o m e Loan Bank
District a n d S t a t e
U N I T E D S T A T E S __
__
N o . 1—Boston
Connecticut
_
Maine
_ .
Massachusetts
New Hampshire
- _
R h o d e Island
_ .
Vermont. _
_ _
N o . 2—New York
N e w Jersey__
N e w York
No. 3—Pittsburgh
Delaware
Pennsylvania .
West Virginia _
206
__
N u m b e r of famil}'
dwelling units
Permit valuation
N u m b e r of family
dwelling units
P e r m i t valuation
J a n . 1942
J a n . 1941
J a n . 1942
J a n . 1941
J a n . 1942
J a n . 1941
J a n . 1942
J a n . 1941
17, 072
27, 027
$58, 754
$95, 662
15, 116
18, 191
$54, 696
$68, 649
831
1,412
3,650
5, 788
791
755
3,523
3,427
360
23
360
16
63
9
214
27
1, 110
2
56
3
1,64:8
83
1, 543
54
282
40
1, 110
104
4,308
7
247
12
357
23
323
16
63
9
211
27
456
2
56
3
1,638
84
1,424
54
282
41
1, 102
104
1,956
7
246
12
883
5,273
3,914
18, 473
832
1,685
3,780
7,228
451
432
712
4,561
1,883
2,031
2,674
15, 799
451
381
689
996
1,883
1,897
2,620
4,608
970
857
3,933
3,981
879
805
3,731
3,841
8
813
149
23
689
145
46
3,443
444
105
3, 423
453
8
780
91
19
661
125
46
3,351
334
93
3, 339
409
Federal Home Loan Bank Review
Table 2 . - B U I L D I N G
ACTIVITY-Continued
[Amounts are shown in thousands of dollars]
All private 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 Bank
District a n d S t a t e
Permit \valuation
N u m b e r of family
dwelling units
Permit \valuation
J a n . 1941
J a n . 1942
J a n . 1941
J a n . 1942
J a n . 1941
J a n . 1942
J a n . 1941
J a n . 1942
3,418
4, 721
$8, 766
$15, 058
2, 643
2,682
$7, 326
$8, 715
397
626
457
404
633
282
178
441
287
789
1,329
583
266
813
135
519
585
1, 374
1,498
828
1, 624
823
486
1, 548
617
3, 549
4,291
1,277
862
2, 131
362
1, 969
352
67
408
383
633
250
149
401
287
171
850
303
266
297
125
383
505
270
1,415
810
1,624
795
431
1, 476
617
885
2, 965
636
862
755
337
1, 658
1, 148
1, 695
4, 811
7,226
1, 043
1, 197
4, 533
5, 389
118
818
212
128
1,087
480
216
4, 014
581
332
5, 509
1, 385
111
737
195
128
773
296
205
3,768
560
332
4, 231
826
1, 133
1,561
4, 961
6, 989
1, 128
1,554
4, 946
6, 969
316
817
287
1,274
1, 203
3,758
1, 145
5, 844
311
817
284
1,270
1, 188
3,758
1, 135
5, 834
884
1,555
4,897
6,929
863
847
4.770
4, 723
Illinois.. . - . Wisconsin. _ _
709
175
1,316
239
4, 168
729
5,901
1,028
700
163
627
220
4,073
697
3, 748
975
No. 8—Des Moines.
646
673
2,477
2,685
548
558
2, 259
2,364
164
185
275
8
14
110
274
232
9
48
668
864
883
25
37
435
1,248
825
16
161
161
159
206
8
14
110
250
176
9
13
660
762
775
25
37
435
1, 194
686
16
33
2,645
2,581
6, 980
6,592
2,526
2,322
6,762
6, 091
109
257
159
70
2,050
82
413
213
99
1,774
214
748
219
192
5, 607
186
1, 157
309
270
4,670
109
250
141
70
1,956
82
365
209
86
1, 580
214
733
192
192
5,431
186
1, 008
305
246
4. 346
652
690
1,913
2, 149
590
666
1,819
2. 095
134
165
98
255
198
105
40
347
363
365
341
844
609
261
147
1,132
90
147
98
255
180
99
40
347
292
342
341
844
561
255
147
1, 132
486
821
1,690
2,635
467
733
1,645
2, 510
12
14
122
34
293
11
62
28
240
83
381
27
39
48
415
93
1,063
32
14a
70
758
226
1,338
101
12
14
103
34
293
11
51
28
199
67
361
27
39
48
370
93
1,063
32
122
70
687
208
1 322
101
3,376
5, 188
10, 762
17, 157
2,806
4,387
9,602
15 297
110
3, 151
115
77
5,069
42
273
10, 168
321
241
16, 768
148
97
2,605
104
68
4,283
36
260
9,038
304
225
14 931
141
No. 4—Winston-Salem.
Alabama
District of Columbia
Florida _ _
Georgia
Maryland
N o r t h Carolina
South Carolina
Virginia _
- _
No. 5—Cincinnati. _
Kentucky
Ohio... _
Tennessee. _
N o . 6—Indianapolis
Indiana.
Michigan
No. 7—Chicago
_ __
_
Iowa
Minnesota.
Missouri. __ _
N o r t h D a k o t a _~
South D a k o t a __ ._
No. 9—Little Rock_„
Arkansas _ _
Louisiana
Mississippi _ .
New Mexico
Texas
_
No. 10— Topeka
.
Colorado .
Kansas
Nebraska
Oklahoma-
_ '
__
No. 1 1 — P o r t l a n d . .
Idaho..,
..
M o n t a n a __ __
Oi*egon_..
Utah ._
___
Washington
Wyoming
No. 12—Los Angeles
Arizona.
California.
Nevada
March 1942
__ _
207
Table 3 . — B U I L D I N G C O S T S -Cost of building the same standard house in
cities in specific months *
representative
NOTE.—These figures are subject to correction
[Source: Federal Home Loan Bank Administration]
Cubic foot cost
Federal H o m e Loan B a n k
District a n d city
T o t a l cost
1942
1941
1942
Feb.
Feb.
Feb.
Nov.
Aug.
May
$0. 251
.281
.263
.282
.256
.268
$7,491
7,787
7,352
7,293
6,592
7,057
$7, 030
7, 628
7, 187
7,295
6,525
6,932
$6, 636
7, 050
6,598
7,301
6, 240
6, 655
.261
.301
.265
.312
.276
.271
.258
.231
.262
.239
.287
.249
.253
.231
6,266
7,224
6,349
7,481
6,613
6,511
6,181
6,085
7,057
6,341
7,428
6,606
6,301
6,073
.221
.269
.267
5,314
6,453
6,416
No. 3—Pittsburgh:
Wilmington, Del __
$0. 312
Harris burg, "Pa
.325
Philadelphia, Pa_ _ _ _
.306
Pittsburgh, Pa___
.304
Charleston, W. Va .._ _ _
.275
Wheeling, W. Va
.294
No. 5—Cincinnati:
Lexington, K y _ „ ._
Louisville, Ky_ __
Cincinnati, Ohio
Cleveland, Ohio
Columbus, Ohio
Memphis, T e n n
Nashville, T e n n
No. 9—Little Rock:
Little Rock, Ark
New Orleans, La _
Jackson, Miss .
Albuquerque, N . M__
Dallas, Tex __
Houston, Tex_
_
San Antonio, Tex_
__ _
.320
.323
.320
.216
.253
.253
.291
.276
.276
.274
N o . 12—Los Angeles:
Phoenix, Ariz
Los Angeles, Calif
San Diego, Calif
San Francisco, Calif _ _
Reno, Nev
_
.310
. 260
. 292
.305
.321
. 281
.230
.253
.265
.292
1941
1940
1939
1938
Feb.
Feb.
Feb.
Feb.
$6, 189
6,737
6,304
6,870
6,296
6,612
$6, 033
6,737
6,304
6,775
6, 133
6,428
$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, 931
6, 704
5, 906
7, 249
6, 370
6, 177
5,852
5,673
6,616
5,680
7, 170
6,147
6,008
5,706
5,555
6,285
5,732
6,877
5,965
6,064
5,537
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, 305
6, 359
6, 333
7, 123
6, 821
6,809
6,692
5, 194
6,207
6, 192
7,015
6,713
6,687
6,583
5,193
6,081
6,065
6,977
6,622
6,621
6,573
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
7,689
7,747
7,683
5,305
6,362
6,325
7, 791
7,530
7,503
7,615
5,981
6,099
7,449
6,240 |
7,014
7,327
7, 693
7, 384
6,013
6, 953
7, 041
7, 667
7, 106
5, 812
6, 383
6,916
7, 165
6,793
5, 559
6,088
6,494
7, 155
6,754
5,514
6,071
6,363
7, 003
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
J 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, and unfinished attic,
a fireplace, essential heating, plumbing, and electric wiring equipment, and complete insulation. It does not include wall-paper nor other wall nor ceiling finish on
interior plastered surface, lighting fixtures, refrigerators, water heaters, ranges, screens, weather stripping, nor window shades.
Reported costs include, in addition to material and labor costs, compensation insurance, and allowance for contractor's overhead and transportation of materials
plus 10 percent for builder's profit.
Reported costs do not include the cost of land nor of surveying the land, the cost of planting the lot, nor of providing walks and driveways; they do not include
architect's fee, cost of building permit, financing charges, nor sales costs.
In figuring costs, current prices on the same building materials list are obtained every three months from the same dealers, and current wage rates are obtained from
the same reputable contractors and operative builders.
Table 4.—BUILDING
COSTS—Index of building costs for the standard house
[Average month of 1935-1939== 100]
Jan.
1942
Dec.
1941
Nov.
1941
Oct.
1941
Sept.
1941
Aug.
1941
July
1941
June
1941
May
1941
Apr.
1941
Mar.
1941
Feb.
1941
Jan.
1941
118.6
124.5
117.7
124.2
116.9
123. 9
116.0
123.3
114.4
120.7
112.6
120.0
110.7
119.3
109.2
118. 6
108.8
117.0
108. 7
116. 1
108.0
115.3
107.8
115. 1
106.6
114. 5
Total cost. 120.6
119.9
119.2
118.5
116.5
115. 1
113.6
112.4
111.6
111. 2
110.4
110. 2
109.3
E l e m e n t of cost
Material
Labor
208
Fee/era/ Home Loan Bank Review
Table 5 . — B U I L D I N G C O S T S — I n d e x of wholesale price of building materials in the United States
[1935-1939=100; converted from 1926 base]
[Source: U. S. Department of Labor]
All building materials
Brick and
tile
1940: January
104.3
100.8
100.3
109.9
107.2
104.2
103. 5
100.8
1941: January
February
March
April
May
June
July
August
September
October
,__
November
December
111. 2
110.9
111. 1
111.8
112. 1
112.8
115. 1
117.8
118.8
119.8
120.0
120.4
100. 5
100. 6
100. 7
100. 9
101. 1
101.8
103.7
104.7
105.3
106.3
106. 3
106.4
99. 7
99.7
99. 7
99.9
100.4
100.9
101. 1
101. 1
101. 2
101.7
102.2
102.5
131.9
130.5
130. 0
130.0
130. 1
131.0
136.2
142. 0
143. 8
144. 2
143.3
144. 1
106. 6
106.5
107.5
109. 1
109.8
111.0
112. 6
114. 7
116.4
118.0
117.2
118.6
105.8
108.0
108.8
109.0
109.0
109.2
109.3
114.0
114. 4
115.3
115.5
117. 1
103.5
103.5
103.5
103.5
103. 5
103. 5
103.
103.
103.
103.
103.
103.
102.6
102.6
103.0
103.7
104. 1
104.8
106.4
108.0
108.4
109. 8
111. 6
110.8
1942: January
122.0
106. 6
102. 5
146. 5
121. 8
123.0
103.5
111.5
Percent change:
Jan. 1942-Dec. 1941
Jan. 1942-Jan. 1941
+ 1.3
+ 9.7
+ 0.2
+ 6.1
0.0
+ 2.8
+ 1.7
+ 11.1
+ 2.7
+ 14.3
+ 5.0
+ 16.0
0.0
0.0
+ 0. 6
+ 8.7
Table
LEKDING—Estimated
Period
6.—MORTGAGE
Lumber
Cement
Paint and Plumbing
paint ma- and heat- Structural
steel
ing
terials
Other
volume of new home-mortgage loans by
al
savings and loan associations, by purpose and class of association
[Thousands of dollars]
Class of association
Purpose of loans
Period
Construc- Home pur- Refinancing
chase
tion
1940
January
1941
January
February
March._ _
April
May. June
July
AugustSeptember
October
November
December
_ _
. __
1942
January
* revised.
March 1942
Total
loans
Loans for
all other
purposes
j
Federals
State
members
Nonmembers
$63, 583 $113, 065 $1, 199, 579 $509, 713
$483, 499
$206, 367
Reconditioning
$398, 632 $426, 151
$198, 148
19, 488
22, 039
13, 999
3,455
7,963
66, 944
28, 008
25, 737
13, 199
437, 065
580, 503
190, 573
61, 328
109, 215
1,378,684
584, 220
583, 804
210, 660
26, 662
26, 483
33, 250
38, 686
40, 975
44, 207
44, 918
42, 987
40, 782
37, 722
30, 103
30, 290
27, 809
30, 283
41, 784
48, 311
54, 781
55, 993
55, 682
55, 973
58, 052
59, 874
48, 816
43, 145
13, 645
14, 204
16, 903
16, 905
18, 506
17, 891
16, 816
15, 785
15, 871
16, 283
13, 340
14, 424
3,784
3,573
4,765
6,368
5,930
5,633
6,022
5,571
5,884
5,361
4,267
4,170
34, 360
35, 645
45, 365
51, 371
55,396
57,542
56, 564
57, 592
54, 786
52, 507
41, 910
41, 182
33, 947
35, 301
43, 947
50, 956
54, 495
54, 857
55, 676
54, 542
54, 303
54, 930
46, 890
43, 960
12, 133
11,384
15, 850
18, 304
21, 062
21, 241
20, 732
17, 593
20, 845
20, 501
15, 949
15, 066
22, 791
34, 127
12, 854
3, 190 i
8, 540 1
7, 787
8, 460
10,361
10, 761
9, 916
9, 534
9,411
9, 345
8, 698
8, 223
8, 179
6. 571
r
80, 440
82, 330
105, 162
120, 631
130, 953 1
133, 640 |
132, 972 1
129, 727 l
129, 934
127, 938
104, 749
100, 208
79, 533
r
31, 142
r
35, 312
r
13, 079
Table 7 . — M O R T G A G E LENDING—Estimated volume of new home-mortgage loans by
savings and loan associations, by Federal Home Loan Bank District and class of association
all
[Amounts are shown in t h o u s a n d s of dollars]
New loans
Federal H o m e Loan B a n k
District a n d class of association
United States: Total _
Federal
S t a t e m e m b e r , ___
Nonmember
December 1941
$100,
41,
43,
15,
Percent
change,
November
1941 t o
November 1941 December
1941
208 $104, 749
182
41,910
960
46, 890
066
15, 949
-4.3
-1. 7
-6. 2
-5.5
New
loans,
December
1940
$88,
37,
36,
14,
553
715
729
109
Percent
change,
December
1940 t o
December
1941
C u m u l a t i v e new loans
(12 months)
1941
1940
+ 1 3 . 2 $1, 378, 684 $1, 199, 579
509, 713
+ 9.2
584, 220
483, 499
+ 19.7
583, 804
206, 367
+ 6.6
210, 660
152
939
562
651
115,
39,
56,
19,
289
680
561
048
+
+
+
+
26.8
25. 9
31. 8
13. 7
138,
41,
43,
53,
375
134
374
867
115,475
33, 579
32, 936
48, 960
+
+
+
+
19.8
22. 5
31. 7
10.0
19. 9
16.2
24.4
20. 8
9,856
3,598
4,833
1,425
11, 951
3,419
6,619
1,913
-17.5
+ 5.2
-27.0
-25. 5
9,685
3,395
4,728
1,562
New Y o r k : T o t a l
Federal
State member
Nonmember
11,272
3,434
3,694
4, 144
11, 562
3,534
3,775
4,253
-2.5
-2.8
-2. 1
-2. 6
8, 492
2, 571
2,837
3,084
+
+
+
+
Pittsburgh: Total
Federal
State member
Nonmember
8,717
3,305
2,451
2,961
9,075
3,278
2, 641
3, 156
-3.9
+ 0. 8
-7.2
-6.2
7, 162
3,038
1, 735
2, 389
+ 21.7
+ 8.8
+ 41. 3
+ 23.9
111,619
42, 491
29, 276
39, 852
Winston-Salem: T o t a l
Federal
State member
Nonmember
15, 531
6,812
7,218
1,501
15, 511
7,276
6,880
1, 355
+ 0.1
-6.4
+ 4.9
+ 10.8
13, 782
6, 159
5, 655
1,968
+ 12.7
+ 10. 6
+ 27.6
-23.7
191,
92,
82,
17,
Cincinnati: T o t a l
Federal
State member
Nonmember
16, 414
5,840
8,752
1,822
18, 076
6,514
9,724
1,838
-9. 2
-10. 3
-10.0
-0.9
13, 020
5,056
6, 333
1,631
+
+
+
+
Indianapolis: T o t a l
Federal
State member
Nonmember
5,297
2,631
2, 503
163
5,210
2,483
2, 419
308
+ 1.7
+ 6.0
+ 3. 5
-47. 1
Chicago: Total
Federal
State member
Nonmember
9,477
3,934
4,656
887
9,306
3,440
4,593
1,273
Des M o i n e s : T o t a l . .
Federal
State member
Nonmember
4,772
2,205
1,552
1,015
Little R o c k : T o t a l . __
Federal
State member
Nonmember
T o p e k a : Total
Federal
State member
Nonmember
32.7
33. 6
30.2
34.4
+ 14.9
+ 14. 6
+ 20.7
+ 2. 1
146,
49,
74,
21,
Boston: Total
Federal
State member
Nonmember
+ 1.8
+ 6.0
+ 2. 2
-8.8
Percent
change
93,
36,
23,
32,
084
563
538
983
+
+
+
+
587
350
133
104
174,
84,
69,
20,
909
895
195
819
+ 9. 5
+ 8.8
+ 18.7
-17. 8
26. 1
15.5
38. 2
11.7
234, 588
86, 988
118,263
29, 337
198,
73,
96,
29,
767
462
111
194
+ 18.0
+ 18.4
+ 23. 0
+ 0. 5
4, 674
2,379
2,092
203
+ 13.3
+10. 6
+19. 6
-19.7
70, 602
35, 508
32, 313
2,781
62, 889
31,318
28, 103
3,468
+ 12. 3
+ 13.4
+ 15.0
-19. 8
+ 1.8
+ 14.4
+ 1.4
-30. 3
8,946
3, 650
4,061
1,235
+ 5.9
+ 7.8
+14. 7
-28.2
135,
52,
65,
17,
923
818
388
717
121,
47,
55,
18,
842
992
428
422
+ 11. 6
+ 10. 1
+ 18.0
-3.8
5,359
2,705
1,827
827
-11.0
-18.5
-15. 1
+ 22.7
4,317
2, 115
1,358
844
4-10. 5
+ 4.3
+14. 3
+ 20.3
74,
36,
24,
12,
416
953
709
754
71,
34,
21,
14,
461
999
885
577
+ 4.
+ 5.
+ 12.
-12.
4,830
1,976
2,769
85
4,909
2,075
2,776
58
-1. 6
-4.8
-0.3
+ 46.6
4,722
1, 735
2, 792
195
+ 2.3
+ 13.9
-0.8
-56.4
67, 247
28, 328
37, 419
1,500
59,
23,
34,
2,
951
754
063
134
+ 12.2
+ 19. 3
+ 9.9
-29. 7
4,057
2, 143
1, 104
810
3,558
1,889
1,017
652
+ 14.0
+ 13.4
+ 8.6
+ 24.2
3,384
1,882
793
709
+
+
+
+
54,
29,
13,
11,
51,
26,
11,
12,
052
818
960
274
+ 7.0
+ 11.8
+ 12.2
-8.8
Portland: Total
Federal
State member
Nonmember
3, 165
1, 972
1, 025
168
3,338
2,042
1,047
249
-5.2
-3.4
-2. 1
-32.5
2,779
1,799
882
98
+ 13.9
+ 9.6
+ 16.2
+ 71.4
41, 275
25, 615
13, 800
1,860
+ 17. 8
+ 22.3
+ 11. 5
+ 3. 8
Los Angeles: T o t a l
Federal
State member
Nonmember
6, 820
3, 332
3, 403
6,894
3,255
3,572
67
-1. 1
+ 2.4
-4.7
+ 26.9
7,590
3,936
3,463
191
-10. 1
-15.3
-1.7
-55. 5
93, 585
51, 038
39,919
2, 628
+ 12.
+10.
+ 19.
-63.
210
-
1
85
19.9
13.9
39.2
14.2
605
981
424
200
48, 633
31,317
15, 386
1,930
104, 937
56, 413
47, 557 '
967 1
1
6
9
5
1
5
1
2
Federal Home Loan Bank Review
Table 8 . — M O R T G A G E RECORDINGS—Summary of estimated nonfarm mortgage recordings 1
$20,000 and under, during January 1942
(Amou i t s
F e d e r a l Home L o a n
Bank
District
and
State
UNITED STATES
No,
I--80s ton
Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont
No. 2—New York
New Jersey
New York
No. 3—Pittsburgh—
Del a w a r e . . . - « Pennsylvania-.
West Virginia
-
No. 4—Winston-Salem
Maryland
Virginia
Ohio
.
No. 6—Indianapol i s
.... .
No. 8—Oes Moines
Iowa
Minnesota
South Oakota
No. 9 — L i t t l e Rock
Arkansas „
Texas .
No.
10—Topeka
Kansas
Nebraska
No.
II—Portland
Montana.
Oregon
Utah
Washington
Wyoming
rfo. l2--Los Angeles
Saving 5 & Loan
associ ations
1 nsurance
companies
Number Amount
Number
Amount
32,433
$90,572 6,131
s h aw n.
are
in
t h 0 u s a n cs
of
coila
rs
R a n k s and
Trust Companies
Mucu a l
Indivi duals
saving s banks
Number Amount
Number Amount Number Amount
$31,062 23,317 $77,631 3,284 $13,523 28,619 $59,033
Amount
Other
mortgagees
Total
Number Amount
Numbfc r Amount
per
capita
(nonfarm)
14,335 $49,575 108,119 $321,396
2,045
4.915
488
1,903
7,917
27,261
422
105
891
149
82
91
1,800
239
3,375
607
302
373
516
85
1,236
58
114
36
1,245
118
3,084
161
208
99
287
21
134
4
40
2
1,125
60
498
25
179
16
1,999
414
4,514
338
444
208
7,771
934
15,238
1,161
1,441
716
5.11
1.49
3.69
2.88
2.15
2.90
8,548
5,491
3,057
991
106
885
4,630
452
4,178
3,013
1,196
1,817
7.551
2,947
4,604
1,603
892
711
6.086
3,213
2,873
9,991
4,507
5,484
35,640
15,632
20,008
4.00
1.69
2,646
72
2,068
506
9,003
275
7,801
927
270
II
252
7
1,161
44
1,114
3
2,055
81
1,658
316
5,146
201
4,526
419
1,259
37
1,088
134
5,207
114
4,816
277
9,269
295
7,596
1,378
29,662
1,031 j
25,751 !
2.880
5.37
2.93
2.25
4,562
680
624
1,163
754
185
511
274
371
2,331
227
63
285
479
228
399
214
436
6,613
590
409
801
790
804
1,276
501
1,442
55
249
55
249
4,533
425
302
851
656
403
1,032
180
684
8,468
628
910
1,900
910
959
1,239
395
1,527
1,867
223
III
317
308
129
315
93
371
5,039 14,623
575 1,215
702 1,015
906 2,105
664 2,285
355 1,801
605 3,093
295
773
937 2,336
38,016
2,744
5,120
5,976 1
4,322
5,167
6,831
1,988
5,868
2.10
1.05
5.03
2.90
3.71
4.35
2.42
3.99
595
2,944
2,732
8,335
97
388
2,168
3,787
1,480
4,178 12,347
35,448
105
312
178
508
1,771
665
728
1,659
345
1,506
5,963
866
97
388
351
1,405
412
420
2,774
593
60
558
862
145
2,064
1,969
1,966
8,351
2,030
4,198
26,647
4,603
859
325
534
3,909
1,376
2,533
2.683
7,836
9
13
1,273
2.769
959
3.543
8.146
23.227
907
1,776
2,839
4,997
9
13
429
844
840
1,929
256
703
675
2,868
3,469
4,677
8,767
14,460
3.61
3.56
8,492
351
2,002
1,418
5,340
7
15
8,042
1,601
401
881
537
3,740
1,600
2,805
2,189
1,401
1,249
152
6,144
261
90
2,021
1,055
966
4,994
6,555
1,937
5,621
523
5,611
2,431
26,987
20,322
6,665
3.06
3.24
2.148
532
667
830
70
49
5.040
1,046
1,597
2,090
199
108
481
55
217
153
27
29
2.350
233
1,029
885
93
110
1,726
468
333
757
58
110
4,641
1,235
799
2,344
83
180
1,986
342
649
839
82
74
3,172
572
1,105
1,185
175
135
1,312
160
148
947
25
32
3,869
443
515
2,847
19
15
7,676
1,557
2,037
3,526
262
294
19,172
3,529
5,145
9,351
569
578
2.36
3.08
3.72
2.01
1.91
2.538
216
681
124
73
1,444
6.353
431
2,228
222
159
3,313
890
29
168
62
10
621
4.190
III
847
251
34
2,947
875
171
67
126
186
325
3.087
405
150
315
726
1,491
2,170
172
357
189
179
1,273
3.850
204
754
264
26 r
2,367
1.478
98
336
102
23
919
4,997
217
880
251
38
3,611
7.951
686
1,609
603
471
4,582
22,477
1,368
4,859
1,303
1,218
13,729
1.86
3.82
2.01
4.60
3.95
1,927
226
545
518
638
4.357
613
1,210
1,023
1.511
234
28
43
86
77
1,061
121
200
361
379
718
85
255
88
290
1,839
1.243
457
200
133
453
1,806
812
245
179
570
643
221
129
70
223
2.006
700
447
192
667
4,765
1,017
1,172
895
1.681
11.069
2,495
2,746
2,072
3.756
3.31
2.34
2,62
2.74
1,195
62
96
225
140
644
28
2,323
115
211
513
453
1,453
78
253
10
13
87
35
105
3
913
31
49
342
106
362
23
915
33
31
126
190
491
44
2,'325
73
73
266
621
1,180
107
1,203
131
101
460
63
341
57
1,894
259
193
647
136
545
114
785
96
26
192
31
422
18
2,668
246
98
639
60
1,544
81
4,448
382
267
1,096
464
2,089
150
10,894
729
624
2,421
1,376
5,341
2,134
108
2,002
24
6,392
383
5,924
85
4,904 10,681
696
321
4,512 9,830
155
71
1,060
10
1,048
2
9,062
217
1,256
321
3,429
293
115
1,901
104
129
64
1,167
303
6,649
284
484
175
157
II
38
2
7
2
904
59
241
10
34
8
324
77
314
21
72
13
1,530
155
1,391
74
234
45
1,964
802
1,162
7,133
2,695
4,438
299
169
130
1,692
834
858
2,121
1,382
779
2,609
68
2,208
333
6,862
226
5,860
776
430
26
322
82
2,283
171
1,634
478
4,830
174
431
356
695
952
1,231
237
754
13,085 1,007
166
271
108
2,475
296
1,206
147
1,204
34
2,615
116
3,200
49
523
91
1,591
5,275
15,816
722
4,320
233
1,619
13,687
510
2.36 3
1,543
820
5.157
3,024
2,133
2,844
2,165
679
1,740
7
15
23
100
23
100
249
644
317
629
16.635
665
15,917
53
92
271
6
14
86
257
403 1
3,935 12,944
41,543
35
622
1,792
3,892 12,211
39,447
8
304 1
m
L
H a s e d upon county reports submitted through the cooperation of savings and loan associations, the U.S . Savings and Loan League, the Mortgage
Bankers Association, and the American Title Association.
March 1942
$3.48
6,696
2,606
515
6
508
1
3.900
13
3,884
3
4,331
177
4,141
13
2.92
4.73
3.29
2.84
1.87
3.32
3.51
4.24
2.64
5.32
7.80
4.07
2II
Table 9 . — M O R T G A G E RECORDINGS—Estimated volume of nonlarm mortgages recorded
[Amounts are shown in thousands of dollars]
Savings a n d
loan associations
Period
B a n k s and
trust
companies
Insurance
companies
Mutual
savings
banks
Individuals
1942: J a n u a r y
Amount:
1941: J a n u a r y
February _ _
March
April
May
June
July
_
August
September.
October
November _
December. _
1942: J a n u a r y
Total
Percent
34,
34,
42,
48,
52,
50,
51,
50,
49,
49,
40,
39,
31.4
32.6
34.2
34.6
35. 1
36.0
34.4
34.6
33.7
32. 6
32.0
30.9
5, 523
4, 753
5, 65ll
6, 583
7, 190
7, 655
7,602
7,298
7,433
8,271
6,519
7,323
32, 433 3 0 . 0
6,131
$89,
91,
113,
129,
143,
139,
142,
139,
135,
138,
113,
112,
459
909
496
266
802
393
882
057
262
574
423
940
996
182
574
348
770
647
695
156
754
670
353
764
Total
2 9 . 3 $27,
3 0 . 7 23,
32. 6 27,
32. 5 32,
3 3 . 0 35,
3 2 . 4 37,
3 2 . 2 37,
32. 5 35,
3 1 . 9 36,
3 1 . 0 39,
3 0 . 0 32,
2 8 . 7 37,
691
716
842
313
635
372
262
995
250
896
527
185
90, 572 28. 2 31,062
Total
Percent
5.0
4.4
4.5
4.7
4.8
5.2
5.0
5.0
5. 1
5.4
5. 1
5.7
24, 204
23, 711
26, 820
30, 065
32, 148
32, 769
32, 343
30, 731
31,001
32, 3861
27, 225
28, 896
22. 1
22. 1
21.6
21.6
21.4
22. 1
21. 4
21.2
21.2
21.3
21.5
22.4
3,392
2,985
3,571
4,512
5,258
5,437
5,469
4,990
5, 197
5,633
4,769
4,632
5.7
23, 317 2 1 . 6
3,284
Percent
9 . 0 $78, 977
8.0 74, 526
8.0 86, 178
8. 1 98, 076
8.2 107, 151
8.7 107, 827
8.4 108, 555
8.4 105, 153
8 . 5 100,712
8.9 1106, 109
8.6 92,316
9 . 5 99,855
9.7
77, 631 24. 1 13, 523
nonfarm real-estate foreclosures, by size of county
Total
Percent
Total
Percent
Combined
total
Percent
3. 1
2.8
2.9
3.2
3. 5
3.7
3.6
3.5
3. 6
3.7
3.8
3.6
28,
27,
30,
33,
35,
34,
35,
34,
34,
37,
31,
31,
26.0
25.7
25. 0
24.2
23. 4
23.4
23.6
23.6
23.9
24.4
24. 9
24.5
13,
13,
14,
16,
17,
16,
18,
17,
18,
19,
16,
16,
12.4
12.4
11.8
11.7
11.8
11.5
12. o!
12. 1
12.5
12.6
12.7
12.9
109,
107,
124,
139,
150,
147,
151,
144,
146,
152,
126,
129,
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
3.0
28, 619 2 6 . 5
Percent
Total
25.7 $12,931
25. 1 11,662
2 4 . 7 14, 016
2 4 . 6 16, 888
24. 6 19, 705
25. 1 20, 503
24. 5 21, 080
24. 6 19,213 |
23.7 20,802 !
23.7 1 22,788
2 4 . 4 19,653
2 5 . 5 19,253
Table 70.—FORECLOSURES—Estimated
494
483
990
794
175
613
634
161
982
167
504
559
4.2
59,033 1
Table 11.—FHA—Home
U. S.
total
Less
than
5,000
60,000
5,000- 20,000- a n d
19,999 59,999 over
1941: J a n u a r y
February
March
April. _ _
May...
_ _
June
J u l y _ __ _
August
.
September
October _ __
November
December
5,474
4, 950
5,650
5, 445
5, 375
5,047
4,834
4, 251
4, 374
4,408
4,204
4,337
607
526
621
587
630
630
437
399
515
544
448
524
800
789
870
853
837
727
741
668
654
697
705
659
1942: J a n u a r y .
4,018
439
635
1,180
1,009
1,191
1,119
1,236
1,149
959
948
975
945
890
1,028
2,887
2,626
2,968
2,886
2,672
2,541
2,697
2,236
2,230
2,222
2, 161
2, 126
832 2,112
689
144
194
525
342
837
110
747
170
156
475
018
108, 119 100.0
154 1 4 . 3 $307,
335 14. 6 296,
624 13. 6 348,
972 14. 1 398,
864 13.7 435,
487 I 13.4 430,
991 1 14.0 443,
580 13.9 428,
034 | 14.4 424,
636 1 14. 6 447,
810 | 14. 8 377,
774 15.0 392,
640
863
880
305
961
216
039
099
929
990
683
355
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100. 0
100.0
100. 0
100.0
100.0
49 ; 575 15. 4 321, 396 100.0
mortgages insured 1
[Premium-paying; thousands of dollars]
M o n t h l y volume
Period
Period
18. 4
617
303
666
305
769
970
180
510
295
125
035
668
14, 335 13.2
4. 2 $53, 891 17.5 $44,
3. 9 52, 442 17.7 43,
4. 0 59, 646 17. 1 47,
4„ 2 65, 708 1 6 . 5 55,
4. 5 69, 836 16.0 59,
4 . 8 67, 380 15.6 57,
4 . 8 71,456 16. 1 61,
4. 51 69,0021 16. 1 59,
4 . 9i 70, 377 i 1 6 . 6 61,
5. 1 7 4 , 8 9 1 1 6 . 7 65,
5,2 64,024 17. 0 55,
4, 9 64,524 1 6 . 4 58,
C o u n t y size (dwellings)
All
mortgagees
i
Number:
1941: J a n u a r y
February. J
March
J
April
May
June
July
August
September J
October
November _
December._
212
Other
mortgagees
1941: J a n u a r y
February
March . . .
April
May..
_
June
July
August, _
September
October _
November
December
1942: J a n u a r y
Total I
Class 3
.
__
__
_
Title I I Title IV
$2, 004 $78, 785
61, 329
1,395
1, 676 61, 637
1, 608 60, 303
65, 277
427
2
3, 289 74, 809
81, 531
2,809
1, 126 70, 227
1, 552 73, 083
85, 290
1,536
1, 361 76, 920
1, 850 87, 516
1,885
Total
87, 167
a t end of
period
$2,
2,
2,
3,
3,
$230 3,
436 3,
560 3,
1,143 3,
2,190 3,
3, 578 3,
5,294 3,
850,
913,
976,
038,
104,
182,
267,
339,
415,
504,
585,
680,
649
373
686
597
301
629
406
317
095
111
970
630
6 , 5 5 6 3, 776, 238
i Figures represent gross insurance written during the period and do not take
account of principal repayments on previously insured loans.
2 January-June loans insured under February Amendment included in June
total.
Federal Home Loan Bank Review
Table 7 2 . — I N S U R E D A S S O C I A T I O N S — P r o c e s s of institutions insured by the Federal Savings
and Loan Insurance Corporation
[Amounts are shown in thousands of dollars]
Operations
Number of
associations
Period a n d class
of association
Total
assets
N e t first
j mortgages
held
Private
repurchasable
capital
^overnment
investment
Federal
Home
Loan
Bank
advances
New
mortgage
loans
New
private
investments
Private
repurchases
Repurchase
ratio
2 , 2 3 5 $ 2 , 7 0 8 , 5 2 9 $2, 129, 687 $ 2 , 0 1 9 , 8 0 9 $236,913 $124, 133 $67, 751 $43, 626 $20, 418
2,342,804
2, 202, 135 220, 789 171, 347 56, 363 65, 586 22, 865
2,276
2,931,781
46. 8
34.9
ALL INSURED
1940: J u n e
December
2,282
2,289
2,292
2,297
2,302
_ 2,310
2,313
2,319
2,326
2,330
2,339
2,343
1941: J a n u a r y
February
March-.
April. _
May
June__
July
August
September
October
November
December
2,349
1942: J a n u a r y
228
081
605
194
122
779
728
010
800
142
263
728
59.0
56.7
61.3
59.4
60.8
43.6
87.3
77.0
69.6
59.8
54.7
47.8
180, 360 105, 792 118, 666
49, 549
112.2
47, 435
37, 715
29, 404
44, 531
11, 022
12, 135
37.5
27.3
102, 973
92, 558
84, 810
81, 076
83, 674
103, 696
102, 513
106, 624
112,033
116, 723
117,666
144, 049
34,
35,
45,
51,
55,
57,
56,
57,
54,
52,
41,
41,
87,
45,
44,
45,
38,
40,
70,
40,
40,
44,
39,
48,
49,
23,
23,
23,
20,
14,
61,
30,
26,
23,
18,
20,
852
131
618
376
582
530
061
443
765
799
984
400
56.7
50.7
53.2
51.9
53.6
36. 3
86. 9
74.7
66.5
53.7
48.4
41. 7
2,929,247
2,959,330
2,991,565
3, 034, 528
3,079,396
3, 158, 251
3, 154, 228
3, 185, 814
3,222,299
3,261,689
3,301,462
3,361,792
2 , 3 5 9 , 0 5 7 2, 262, 692
2, 384, 160 2, 296, 225
2, 323, 041
2,416,680
2 , 4 5 7 , 4 3 8 2, 354, 239
2, 379, 856
2,501,582
2, 554, 274 2, 433, 513
2, 595, 114 | 2, 449, 807
2, 465, 223
2,636,536
2, 672, 985 2, 486, 992
2, 711, 854 2, 518, 006
2, 737, 015 2, 551, 528
2, 751, 050 2, 597, 373
216,
206,
206,
206,
206,
206,
203,
195,
195,
195,
196,
196,
3, 312, 482
2, 754, 076
2, 589, 466
191, 769
1, 727, 337 1 1, 403, 933
1, 872, 691 1, 545, 838
1, 267, 156
1, 387, 839
197, 268
181,431
90, 489
127, 255
1, 563, 038
1, 577, 498
1, 599, 592
1, 627, 545
1, 656, 899
1, 687, 088
1, 715, 819
1, 749, 214
1, 774, 371
1, 801, 237
1, 814, 477
1, 823, 879
1, 436, 443
1, 458, 840
1, 480, 866
1, 504, 271
1, 522, 675
1, 554, 374
1, 565, 799
1, 579, 671
1,595,119
1, 616, 605
1, 636, 837
1, 688, 372
177,
168,
168,
169,
169,
169,
166,
159,
159,
159,
159,
160,
265
873
922
047
247
247
464
622
614
775
925
060
485
015
094
078
304
301
512
572
584
787
059
240
141, 450
129, 437
119,461
115,372
119,242
114, 331
142, 870
147, 044
153, 897
159, 298
161, 199
193, 275
52,
53,
69,
77,
82,
85,
84,
84,
82,
80,
65,
63,
270 127, 490
765 65, 384
313 64, 633
735 65, 947
443 57, 755
117 61, 448
994 ' 103, 886
794 62, 374
993 61, 495
767 67, 132
241 60, 818
506 74, 801
75,
37,
39,
39,
35,
26,
90,
48,
42,
40,
33,
35,
i
FEDERAL
1940: June___
December
1,421
1,438
1941: J a n u a r y
February
March
April
May__ ___ _
June
July
August
September
October
November1 _ _
December 2 _ _
1, 872, 744
1,439
1, 890, 266
1,441
1, 915, 054
1,442
1, 945, 949
1.445
l', 447 1, 977, 162
1,450
2, 028, 045
1,452
2, 022, 886
1,454 1 2, 049, 184
1,456 I 2, 075, 513
1,457
2, 103, 664
1,457
2, 125, 880
1,459
2, 172, 332
360
645
365
371
396
542
564
592
786
507
910
182
950
587
390
058
423
030
290
730
254
341
212
872
- . 1,462
2, 131, 098
1, 824, 292
1, 658, 966
156, 079
132, 843
70, 962
81, 663
31, 142
115. 1
1940: J u n e
December
814
838
981, 192
1,059,090
725, 754
796, 966
752, 653
814, 296
39, 645
39, 358
33, 644
44, 092
20, 316
18, 648
14, 222
21, 055
9,369
10, 730
66. 1
51.0
1941: J a n u a r y . _
February
March
April __ __
May__
June
July.
August
September
October
November
December
843
848
850
852
855
860
861
865
870
873
882
884
1,056,503
1,069,064
1,076,511
1,088,579
1,102,234
1, 130, 206
1,131,342
1, 136, 630
1, 146, 786
1, 158, 025
1,175,582
1,189,460
I
i
j
1
j
796, 019
806, 662
817, 088
829, 893
844, 683
867, 186
879, 295
887, 322
898, 614
910,617
922,538
927,171
826,
837,
842,
849,
857,
879,
884,
885,
891,
901,
914,
929,
38,
36,
34,
34,
35,
40,
40,
40,
41,
42,
43,
49,
17,
18,
23,
26,
27,
27,
28,
27,
28,
28,
23,
22,
39,
19,
20,
20,
19,
21,
33,
21,
21,
22,
21,
25,
25,
13,
15,
15,
14,
12,
29,
17,
16,
16,
14,
15,
376
950
987
818
540
249
667
567
035
343
279
328
64. 2
70. 5
79.0
75.7
75.2
57.2
88 3
81.2
75. 5
71.7
66. 1
59. 1
1942: J a n u a r y
887
1,181,384 !
929,784
930, 500
18, 407
106.2
1942: J a n u a r v
STATE
249
39, 220
385
37, 142
175
37, 172
968
37, 031
181
37, 057
139
37, 054
008
37, 048
552
35, 950
873
35, 970
401 i 36,012
691
36, 134
001
36, 180
35, 690
477
879
651
296
568
635
357
420
864
575
533
226
47, 517
910
120
948
364
047
575
430
202
207
260
331
324
34, 830
540
797
243
889
332
418
596
644
241
791
606
929
37, 003
2iIn
addition, 3 converted Federals with assets of $1,348,000 were not insured as of December 31,1941.
In addition, 2 converted Federals with assets of $1,096,000 were not insured as of January 31,1942.
March 1942
2I3
Table 73.—FHL B A N K S — L e n d ing operations and principal assets and liabilities of the Federal
Home Loan Banks
[Thousands of dollars]
Principal assets
J a n u a r y 3 1 , 1942
Lending operations
J a n u a r y 1942
Federal H o m e
Loan B a n k
Advances
Repayments
Advances
outstanding
Cash1
Capital a n d principal liabilities
J a n u a r y 3 1 , 1942
Governm e n t securities
Capital2
737
2, 526
290
1,701
610
294
985
135
325
219
370
825
$1, 249
1,647
2,026
2,215
1,721
1,292
3,726
2,008
1,222
812
1,897
2,580
$14, 757
25, 854
16, 067
26, 897
15, 761
12, 783
32, 510
17, 216
10, 607
6,605
7,263
19, 748
$2, 349
2,429
4, 151
2,784
4,644
3,062
9,533
4,052
2,211
3,757
2,546
3,479
$7, 068
6,445
5, 367
1,875
12, 660
8,710
5, 662
3,323
3, 625
3,570
1,880
2, 165
$18, 210
25, 622
15, 597
16, 506
22, 845
10, 862
21,361
11,324
11,993
10, 020
8,087
14, 688
9,017
22, 395
206, 068
44, 997
62, 350
40, 167
9,930
7, 805
7, 157
219, 446
187, 084
35, 336
41, 422
J a n u a r y 1941
6, 143
36, 786
170, 849
J a n u a r y 1940- _
4, 386
28, 911
156, 788
$
Boston
New York
Pittsburgh
Winston-Salem
Cincinnati-_
Indianapolis
Chicago-- Des Moines
Little Rock
Topeka
P o r t l a n d . ,_
Los Angeles..
All b a n k s
December 1941
N o v e m b e r 1941
1
2
Member
deposits
Debentures
Total
assets
Jan. 31,
1942 i
1,000
2, 500
9,500
14, 500
3,500
9,250
21, 000
12, 500
3,000
3,250
3,500
7,000
$2, 030
2,681
501
609
6,790
3,495
5,373
796
1
693
138
1,251
$24,
34,
25,
31,
33,
24,
47,
24,
16,
13,
11,
25,
187, 115
90, 500
24, 358
314, 440
63, 751
62, 004
186, 532
186, 622
90, 500
75, 500
29, 826
25, 217
319, 300
291, 690
76, 314
50, 929
181, 141
90, 500
26, 854
299, 019
47, 691
50, 930
175, 668
48, 500
28, 756
256, 330
$
242
848
686
667
189
643
813
677
505
980
731
459
Includes interbank deposits.
Capital stock, surplus, and undivided profits.
Table 7 4 . — S A V I N G S — S a l e s of U. S. defense
savings bonds 1
Table 7 5 . — S A V I N G S — S a v i n g s held by
selected financial institutions
[Thousands of dollars]
[Thousands of dollars]
Period
1940
Series E
2
Series F
Series G
$1, 064, 982
$1, 064, 982
1941
1, 622, 496 $207, 681 $1, 184, 868
January _
February
March
April .
May__- _June .
July_ _ _August September^-OctoberNovember
December
178,
115,
126,
57,
100,
102,
145,
117,
105,
122,
109,
341,
600
572
340
324
581
517
274
603
241
884
475
085
1942
January
667,411
3, 015, 045
817
876
359
318
099
963
977
272
211,420
183, 134
169, 499
127, 685
108, 987
124, 866
105, 035
154, 242
178, 600
115,572
126, 340
57, 324
349, 818
314, 527
342, 132
265, 606
232, 327
270, 713
233, 487
528, 599
77, 559
315, 577
1, 060, 547
37,
28,
27,
20,
18,
22,
18,
33,
t U. S. Treasury Defense Savings Staff. Actual deposits made to the credit
of 2the U. S. Treasury.
Prior to May 1941: "Baby bonds."
214
Insured
Insured
M u t u a l savsavings a n d ings
2
commercial
b
a
n
k
s
loans *
banks 3
E n d of
period
Total
1939: J a n u a r y
_ .. $ 1 , 8 1 1 , 181 $10, 480, 684 $12, 623, 325
2, 019, 809
2, 202, 135
1940: J u n e
December
1941: J a n u a r y
February
. _
2,
2,
2,
March
April-..
2,
May
__ _ 2,
2,
June
July. _
_ 2,
August
_ _ 2,
2,
September.
October _ _ _ 2,
2,
November
December..._ _ 2,
2,
1942: J a n u a r y
262,
296,
323,
354,
379,
433,
449,
465,
486,
518,
551,
597,
589,
692
225
041
239
856
513
807
223
992
006
528
373
466
10, 589, 838
10, 617, 759
12, 754, 750
13, 062, 315
10, 606, 224
13, 107, 022
10, 489, 679
1
2
Private repurchasable capital as reported to the F H L B Administration.
Month's work. All deposits.
3 FDIC. Time deposits evidenced by savings passbooks.
Federal Home Loan Bank Review
QUARTERLY TABLES
Table 16.—HOLC—Mortgage
loans outstanding and properties on hand
Table
77—GOVERNMENT
SHARES
Investments in member associations 1
[Amounts are shown in thousands of dollars]
[Amounts are shown in thousands of dollars]
E n d of period
1940: J a n u a r v . _
1941: J a n u a r y . - _
February
March
April
May__ ___ _
June
July__ _ _ _
August
September
October- .
November
December
1942: J a n u a r y .
D u e on
original
loans
D u e on
property
sold
T y p e of operation
Book
value
$1, 803, 477 $224, 752 $456, 036
1, 613,
1, 596,
1, 577,
1, 558,
1, 539,
1, 521,
1, 502,
1, 485,
1, 467,
1, 449,
1, 433,
1, 415,
326,
331,
335,
340,
345,
349,
351,
354,
356,
358,
360,
361,
829
768
843
930
907
046
710
558
786
502
186
563
990
379
783
611
009
246
868
377
683
922
318
355
H o m e Owners' Loan
Corporation
Treasury
Properties owned
333,
328,
322,
316,
309,
303,
298,
293,
288,
282,
278,
274,
332
205
714
260
652
029
165
132
116
904
532
608
1,397,411 360, 541 272, 859
75, 796
50,
49,
48,
47,
46,
44,
43,
42,
41,
40,
39,
38,
865
940
850
588
170
922
933
807
697
614
743
957
38, 599
i Includes reacquisitions of properties previously sold.
Oct. 1935-Jan. 1942:
Applications:
Number
Amount
Investments:
Number
Amount
Repurchases
N e t outstanding investments. _ _
J a n u a r y 1942:
Applications:
Number
Amount
I ri v e s t m e n t s :
NumberAmount
I'epurchases _ __
State
members
Federals
Federals 2
Number l
Total
5,687
4, 694
993
1, 862
$50, 401 $211, 724 $66, 360 $278, 084
4,973
4, 235
738
1,831
$49, 300 $177, 528 $45, 731 $223, 259
$28, 990 $41, 759 $9, 830 $51, 589
$20, 310 $135, 769 $35, 901 $171, 670
0
0
0
0
1
$100
1
$100
0
0
0
$3, 082
0
0
$415
0
0
$3, 497
0
$9741
1
Refers to number of separate investments, not to number of associations in
which
investments are made.
2
Investments in Federals by the Treasury were made between December 1933
and November 1935.
Table 7 8 . — F H A — I n s u r e d home mortgages (Title II) held by the various classes of institutions 1
[Thousands of dollars]
Cumulative t h r o u g h end of
month
Total
Commercial
banks
M u t u a l savings banks
Savings and
loan associations
Insurance
companies
Federal
agencies 2
Others
3
1936: December
$365, 157
$221, 946
$14, 345
$55, 601
$41, 358
$4, 648
$27, 259
1937: D e c e m b e r .
771, 115
422, 772
34, 844
110,290
117, 936
32, 129
53, 184
1938: December
1, 198, 675
619, 535
51, 813
148, 798
212, 206
76, 778
89, 545
1939: December _
1, 792, 980
885, 051
88, 641
191, 709
341, 587
152, 716
133, 276
1940: M a r c h
June
_ _
September
December _
1941: M a r c h June
_ __ __
S e p t e m b e r . _ __
December
__
1,
2,
2,
2,
948,
074,
231,
409,
803
739
998
197
953, 771
1, 008, 147
1, 075, 090
1, 142, 949
106, 764
117,851
129, 751
149, 239
200,
208,
216,
224,
884
218
324
328
392,
431,
479,
541,
405
527
623
561
171,
182,
190,
201,
128
327
350
032
123,
126,
140,
150,
851
669
860
089
2,
2,
2,
3,
598,
754,
942,
106,
348
725
196
817
1,
1,
1,
1,
165,
174,
189,
205,
230,
237,
246,
254,
412
056
419
330
606,
668,
721,
789,
052
069
824
446
209,
220,
225,
233,
989
400
076
627
159,
153,
177,
178,
618
760
671
742
226,
300,
381,
445,
856
734
470
105
* Original face amount of mortgages held; does not include terminated mortgages
and cases in transit to or being audited at the Federal Housing Administration.
2 The R F C Mortgage Company, the Federal National Mortgage Association,
and the United States Housing Corporation.
March 1942
421
706
736
567
3
Includes mortgage companies, finance companies, industrial banks, endowed
institutions, private and State benefit funds, etc.
2I5
Defense-Rental Areas
(Continued from p. 198)
In designating defense-rental areas, in prescribing
regulations and orders establishing maximum rents,
and in selecting administrative personnel, the Administrator will be guided as far as practicable by the
recommendations of State and local officials concerned
with housing or rental conditions in these areas. I n
this manner, local authorities will again share the
responsibility for preventing unwarranted rent increases and for suggesting ways and means of combating the factors already at work.
I t now appears t h a t three types of rent-control
programs may well proceed in different areas under
existing legislation: Locally appointed Fair Rent
Committees will undoubtedly continue their present course in many areas, greatly strengthened
by general knowledge on the part of the public
that statutory authority may be quickly imposed
if the Fair Rent Committees are unable to achieve
their desired ends through voluntary means. At
the same time, some States may desire to pass
satisfactory legislation of their own rather than to
have the Federal Government move in. And finally,
as evidenced by the recent actions of the Price
Administrator, Federal control will be quickly instituted in those areas where it becomes apparent t h a t
voluntary measures are ineffective and no local alternatives have been offered.
Because the final form of the Emergency PriceControl Act approved by the President on January 30
varied somewhat from the bill as originally passed
by the House of Representatives and as discussed in
the January issue of the R E V I E W , the accompanying
box presents a summary of the principal provisions
for the control of rents.
PRINCIPAL RENT-CONTROL PROVISIONS OF THE EMERGENCY PRICECONTROL ACT OF 1942
General provisions regarding renting practices:
"Whenever in the judgment of the Administrator such action is necessary or proper in order to effectuate the purposes of this Act, he shall issue
a declaration setting forth the necessity for, and recommendations with
reference to, the stabilization or reduction of rents for any defense-area
housing accommodations within a particular defense-rental area. If
within sixty days after the issuance of any such recommendations rents
for any such accommodations within any such defense-rental area have
not in the judgment of the Administrator been stabilized or reduced by
State or local regulation, or otherwise, in accordance with the recommendations the Administrator may by regulation or order establish such
maximum rent or maximum rents for such accommodations as in his
judgment will be generally fair and equitable and will effectuate the
purposes of this Act. So far as practicable, in establishing any maximum
rent for any defense-area housing accommodations, the Administrator
shall ascertain and give due consideration to the rents prevailing for such
accommodations, or comparable accommodations, on or about April 1,
1941 (or if, prior or subsequent to April 1, 1941, defense activities shall
have resulted or threatened to result in increases in rents for housing
accommodations in such area inconsistent with the purposes of this
Act, then on or about a date (not earlier than April 1,1940), which in the
judgment of the Administrator, does not reflect such increases), and he
shall make adjustments for such relevant factors as he may determine
and deem to be of general applicability in respect of such accommodations,
including increases or decreases in property taxes and other costs. In
designating defense-rental areas, in prescribing regulations and orders
establishing maximum rents for such accommodations, and in selecting
persons to administer such regulations and orders, the Administrator
shall, to such extent as he determines to be practicable, consider any
recommendations which may be made by State and local officials concerned with housing or rental conditions in any defense-rental area."
[Title I, Section 2 (b)]
Level of maximum rents:
"Any regulation or order under this section which establishes a . . .
maximum rent may provide for a maximum . . . rent . . . below the
216
rent or rents prevailing for the defense-area housing accommodations, at
the time of the issuance of such regulation or order." [Title I, Section
2(c)]
"The Administrator . . . may by regulation or order, regulate or
prohibit . . . speculative or manipulative practices or renting or leasing
practices (including practices relating to recovery of the possession) in
connection with any defense-area housing accommodations, which in his
judgment are equivalent to or are likely to result in price or rent increases . . . " [Title I, Section 2 (d)]
Prohibitions:
"It shall be unlawful, regardless of any contract, agreement, lease, or
other obligation heretofore or hereafter entered into . . . to demand or
receive any rent for any defense-area housing accommodations, or otherwise to do or not to do any act, in violation of any regulation or order
under section 2 . . . " [Renting practices outlined above.] [Title I,
Section 4 (a)]
"It shall be unlawful for any person to remove or attempt to remove
from any defense-area housing accommodations the tenant or occupant
thereof or to refuse to renew the lease or agreement for the use of such
accommodations, because such tenant or occupant has taken, or proposes
to take, action authorized or required by this Act or any regulation, order,
or requirement thereunder." [Title I, Section 4 (b)]
Procedure for appeal and review:
"Within a period of sixty days after the issuance of any regulation or
order . . . any person subject to any provision of such regulation,
order, or price schedule may. . . . file a protest specifically setting forth
objections . . . Within a reasonable time after the filing of any protest
. . . the Administrator shall either grant or deny such protest in whole
or in part, notice such protest for hearing, or provide an opportunity to
present further evidence in connection therewith." [Title II, Section
203 (a)]
"Any person who is aggrieved by the denial or partial denial of this
protest, may within thirty days after such denial, file a complaint with
the Emergency Court of Appeals . . . " [Title II, Section 204 (a)]
Federal Home Loan Bank Review
U. S . GOVERNMENT P R I N T I N G O F F I C E : 1 9 4 2
OFFICERS OF FEDERAL HOME LOAN BANKS
BOSTON
CHICAGO
B. J. ROTHWELL, Chairman; E. H. WEEKS, Vice Chairman; W. H.
NEAVES, President; H. N. FAULKNER, Vice President; L. E. DONOVAN,
C. E. BROUGHTON, Chairman; H. G. ZANDER, JR., Vice Chairman;|A. Rj
GARDNER, President; J. P . DOMEIER, Vice President; H. C. JONES,
Secretary-Treasurer; P. A. HENDRICK, Counsel; BEATRICE E. HOLLAND,
Treasurer; CONSTANCE M. WRIGHT, Secretary; UNGARO & SHERWOOD,
Assistant Secretary.
Counsel.
NEW
YORK
GEORGE MACDONALD, Chairman; F. V. D. LLOYD, Vice Chairman;
NUGENT FALLON, President; ROBERT G. CLARKSON, Vice President;
DENTON C LYON, Secretary; H. B. DIFFENDERFER, Treasurer.
PITTSBURGH
E. T. TRIGG, Chairman; C. S. TIPPETTS, Vice Chairman; R. H. RICHARDS, President; G. R. PARKER, Vice President; H. H. GARBER, Secretary-Treasurer; R. A. CUNNINGHAM, Counsel.
WINSTON-SALEM
H. S. HAWORTH, Chairman; E. C. BALTZ, Vice Chairman; O. K. LAROQUE, President-Secretary; G. E. W ALSTON, Vice President-Treasurer;
Jos. W. HOLT, Assistant Secretary; T. SPRUILL|THORNTON, Counsel.
CINCINNATI
R* P. DIETZMAN, Chairman; V M . MEGRUE BROCK, Vice Chairman;
WALTER D. SHULTZ, President; W. E. JULIUS, Vice President; DWIGHT
WEBB, J R . , Secretary; A. L. MADDOX, Treasurer; TAFT, STETTINIUS
& HOLLISTER, General Counsel.
INDIANAPOLIS
H. B. WELLS, Chairman; F. S. CANNON, Vice Chairman-Vice President;
FRED T. GREENE, President; G. E. OHMART, Vice President;
C. RUSSELL PARKER, Secretary-Treasurer; HAMMOND, BUSCHMANN,
KRIEG & DEVAULT, Counsel.
DES
MOINES
C. B. ROBBINS, Chairman; E. J. RUSSELL, Vice Chairman; R. J. RICHARDSON, President-Secretary; W. H. LOHMAN, Vice President-Treasurer;
J. M. MARTIN, Assistant Secretary; A. E. MUELLER, Assistant Treasurer; EMMERT, JAMES, NEEDHAM & LINDGREN, Counsel.
LITTLE ROCK
W. C. JONES, JR., Chairman; W. P . GULLEY, Vice Chairman; B. H.
WOOTEN, President; H. D. WALLACE, Vice President-Secretary; J. C.
CONWAY, Vice President; W. F. TARVIN, Treasurer; W. H. CLARK, JR.,
Counsel.
TOPEKA
P. F. GOOD, Chairman; Ross THOMPSON,Vice Chairman; C. A. STERLING,
President-Secretary; R. H. BURTON, Vice President-Treasurer; JOHN
S. DEAN, JR., General Counsel.
PORTLAND
BEN A. PERHAM, Chairman; E. E. CUSHING, Vice Chairman; F . H*
JOHNSON, President-Secretary; IRVING BOGARDUS, Vice PresidentTreasurer; Mrs. E. M. JENNESS, Assistant Secretary; VERNE DUSENBERY, Counsel.
Los ANGELES
D. G. DAVIS, Chairman; PAUL ENDICOTT, Vice Chairman; M. M.
HURFORD, President; C. E. BERRY, Vice President; F, C. NOON, Secretary-Treasurer; VIVIAN SIMPSON, Assistant Secretary.
@FedFRASER