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FEDERAL HOME LOAN BANK Vol. I I , No. 6 N A T I O N A L HOUSING AGENCY John B, Blandford, Jr., Administrator FEDERAL HOME LOAN BANK ADMINISTRATION Washington, D. C. MARCH 1945 The Dual Functions of Liquidity 167 Recent Lending^Pattern in Selected States 169 Surplus Housing Regulations 173 REGULAR FEATURES John H. Fahey, Commissioner FEDERAL HOME LOAN BANK SYSTEM FEDERAL SAVINGS AND LOAN ASSOCIATIONS FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION HOME OWNERS' LOAN CORPORATION UNITED STATES HOUSING CORPORATION iiLLIiLiJi' Worth Repeating 166 Home Front 172 Directory Changes of Member, Federal, and Insured Institutions 173 War Bond Sales . 174 Monthly Survey 177-180 TABLES New family-dwelling units 181-182 Building costs 182-183 Savings and loan lending 183-184 Mortgage recordings 184-185 Sales of U. S. war savings bonds 185 F H A activity 185 Federal Home Loan Banks 185 Insured savings and loan associations 186 Quarterly fables 187 * * * WORTH REPEATING * * * NEW OBLIGATIONS: "First of all, I believe we m u s t realistically face t h e fact t h a t we h a v e m a n y more m o n t h s of w a r housing ahead of us. N o one can predict t h e course of war with complete confidence a n d we must constantly be prepared for sudden reverses as well as successes. T h e events of t h e past few weeks h a v e proved t h a t . W h a t those events mean in w a r housing is t h e development of new housing needs a t critical points in t h e war production picture and, more generally, a n urgent requirement for extended w a r use of t h e housing t h a t h a s been built. This, of course, is p a r t of t h e new obligations on t h e home front for maxim u m support through increased production a n d increased delivery of w a r supplies t o t h e front lines. Naturally, I have complete confidence t h a t home builders are prepared t o see this job t h r o u g h and t h a t we will have their continued cooperation in utilizing t h e war housing supply a n d in adding t o it where necessary." John B. Blandford, Jr., before National Association of Home Builders, Chicago, Illinois. PROSPERITY: " T h e general idea t h a t prosperity depends upon maintenance of employment a n d a gradually rising national income is generally accepted. The old view t h a t t h e economy needs a periodic deflationary purge has been largely abandoned. I think t h a t if we find a n over-all program t h a t will accomplish t h e results here outlined we shall n o t have fought this war in vain. We shall have good prospects of maintaining over this a n d future generations our form of economic organization a n d our s t a n d a r d s of political and social justice." E. A. Goldenweiser, Federal Reserve Bulletin, February 1945. G. I. BILL: " O n e of t h e outstanding features of this legislation is t h e fact t h a t Congress, in its wisdom, h a s provided t h a t t h e financing of homes (as well as farms a n d business properties) shall b e done b y p r i v a t e enterprise, even t o t h a t portion which is t o be guaranteed b y t h e Administrator. I t is this feature of t h e law which presents t o all p r i v a t e lending institutions not only a n o p p o r t u n i t y b u t a challenge as well—for we m u s t need t o recognize t h a t a social implication 166 will be involved in every loan t h a t is made to a Veteran under t h e provisions of this Act. . . "Clearly, t h e broad purpose a n d scope of this law is such as t o constit u t e a new venture in t h e field of social economics. There is going t o h a v e to be a breaking of much new ground— a period which will call for m u c h p a tience a n d forbearance on t h e p a r t of t h e lending institutions, of t h e Veterans themselves, as well as of t h e Governmental institutions involved a n d t h e public generally." C. H. Ellingson, Executive Vice-President, First Federal Savings and Loan Association, Washington, P . C. LAND VALUES: " I t is too often overlooked t h a t t h e value or worth in terms of dollars which m a y be a t t a c h e d to land is derived from (a) t h e pecuniary income, or (b) t h e service which land is capable of yielding or producing. Stated differently, t h e value of land within a community, a city or metropolis a t a n y given time cannot exceed t h e ability of t h e population served b y t h e land t o p a y w h a t it can afford for t h e land's use. Anticipated uses which are particularly evidenced by t h e capitalization attached t o land for purposes of taxation in m a n y communities through t h e maintaining of fictitious assessments, are n o t per se evidence of fair m a r k e t value. Ultimately land value, like water, finds its own level." Robert H. Armstrong, The Appraisal Journal, January 1945. FOR THE FUTURE: "Build up reserves, clean o u t remaining real estate, adjust dividends to t h e savings a n d loan wartime program, which is admittedly a kind of slow-bell period of husbanding strength, of increasing liquidity, a n d of reinforcing efficiency. I n t h e harsh conditions now prevailing with so heavy an inflow of capital a n d so limited a sound m a r k e t for h o m e mortgages, this program is, in large measure a n involuntary one. O u r institutions, however, I a m sure, will continue to make a virtue of necessity. T h e great strides they have already made in t h a t direction, as evidenced b y t h e impressive statistics which I would not u n d e r t a k e t o include in this short message, b u t which have been p u b - lished a n d a r e readily available, indicate not only t h e powerful s t a t e of present health in our industry, b u t a s t a t e of preparedness for t h e post-war future, when it comes, which will richly justify their prudence a n d patience." James F. Twohy, Savings and Loan Journal, January 1945. POST-WAR BOOKSHELF Although inclusion of title does necessarily mean recommendation REVIEW, the following recent not by the publications will be of interest. DEMOCRACY UNDER PRES- SURE: SPECIAL INTERESTS VS. THE P U B L I C W E L F A R E : by S t u a r t C h a s e ; N u m b e r 4 in a series entitled " W h e n t h e W a r E n d s , " published b y t h e T w e n t i e t h C e n t u r y F u n d . Available a t $1.00 from t h e T w e n t i e t h C e n t u r y F u n d , 330 West 42 Street, N e w York 18, N . Y. POST-WAR NATIONAL INCOME; ITS PROBABLE MAGNITUDE: By Joseph Mayer. 1944. 34 p p . P a m p h l e t N o . 55. Available a t 50$ from T h e Brookings Institution, 722 Jackson Place, N . W., Washington 6, D. C. THE AMERICAN STANDARD SAFETY CODE FOR BUILDING CONSTRUCTION: 19U- Available a t $1.10 from t h e American S t a n d a r d s Association, 70 E a s t 57 St., N e w York 17, N . Y. ABSTRACTS OF SELECTED MATERIAL ON POST-WAR HOUSING AND URBAN DEVELOPMENT: Group V I I I . N o v e m b e r 1944. 35 p p . mimeo. Available free from U r b a n Development Division, Office of t h e Administrator, National Housing Agency, 1600 E y e St., N . W., Washington 25, D . C. NEIGHBORHOOD DESIGN AND CONTROL: An Analysis of the Problems of Planned Subdivisions: By H e n r y S. Churchill a n d Rowlyn I t t l e son. 39 p p . , 1944. Available a t $1.00 from t h e N a t i o n a l Committee on Housing, I n c . , 512 Fifth Avenue, New York 18, N . Y. Federal Home Loan Bank Review THE DUAL FUNCTIONS OF LIQUIDITY Acting in support of the Treasury's wartime borrowing program, savings and loan associations have invested a sizable proportion of their resources in Government securities. These changes in balance-sheet composition place the industry in a strategic position to meet the problems of post-war operations. • W A R T I M E changes in the operation of savings and loan associations have produced few variations in the statements of these institutions as remarkable as the rapid growth of their liquid assets, principally Government securities. This asset item, which constitutes the overwhelming bulk of nonmortgage investments held by associations, has risen in proportionate importance until today it amounts to more than 25 percent of combined member assets. In 1939, when these holdings were reported in the one item, "other investments/' the over-all category constituted but 1.7 percent of resources. Causes As savings and loan management is well aware, the occurrence of this growth simultaneously with the outbreak of war is more than mere coincidence. Certainly the ultimate magnitude is a direct result of wartime conditions. On the other hand, there has come with it a growing realization of the importance of "internal" liquidity and a determination to preserve this product of necessity as an implement for sound post-war operations. Traditionally, the savings and loan industry has identified itself as the custodian of long-term invested savings, consistent with the nature of its lending operations. Funds placed with associations were not in the form of demand accounts which could be carried without interest and at little or no expense. These institutions, in order to compete with other forms of investments and savings depositaries, became acclimated to employing all but a small fraction of their assets in long-term advances on residential properties. What brought about this change in thinking? The long-range causes run back some 15 years, during which time a general downward movement in money costs has prevailed. As measured by their dividend payments, savings and loan associations may seem to have reacted slowly to this general trend, returns paid by other savings media having declined far more rapidly. However, savings and Match 1945 loan associations with portfolios of long-term loans were bound to have reacted with less sensitivity than other institutions, mostly engaged in short-term lending. The earnings on portfolios of long-term obligations are obviously less responsive, the velocity of turnover being slower. This is important since, barring some economic upheaval, no business is likely to dispose of high-yield investments in large scale to acquire others bearing a lower return. As rates on new lending have declined, the spread between mortgage-interest rates and yields on liquid securities has narrowed, thereby diminishing potential earnings which an association must forego to maintain a higher proportion of liquid assets. These are tangible influences that bear upon the ability of savings and loans to develop and preserve a high degree of liquidity. There is another side of the story which has even more bearing upon the matter, namely, greater public emphasis on the security of savings and a corresponding diminution in the importance of the rate of return on its investment. This general change in popular thinking which is particularly evident in savings trends 1 makes "internal" liquidity a factor of far greater importance than was attributed to it in years past. Meaning of Security What does security mean to the individual? To the small savers, who constitute the backbone of the savings and loan shareholders, accessibility is undoubtedly one of the most convincing tests. To these persons, their savings represent funds set aside against a rainy day. If such a day should come with short notice, they may have need for recourse to their accounts immediately. To the extent that emphasis remains upon the accessibility of savings, it seems quite possible that higher liquidity and lower dividend rates may characterize savings and loan operations in the years to come. Naturally, the prospects for continued high liquidity may vary sharply according to the needs of the individual associations and of the i See "What Has War Done to Savings?", F H L B REVIEW, January 1945, p. 107. 167 various regions throughout the country. Therefore, it would seem that this subject should be one of primary importance to the directors and executives of these institutions in the period ahead. While the war was the motivating force behind the growth of liquid assets, it does not seem probable that liquidity will recede to its former dimensions with the removal of this stimulus. Anyone attempting a forecast on this subject, however, is bound to acknowledge that there is more than one side to the issue, for it is apparent that the industry's ability to hold liquidity to pre-determined proportions will depend largely upon trends throughout the duration of the war and upon the success of our economic reconversion afterwards. Dual Functions Cash from conversion of liquid assets will probably flow in two directions. The first of these would be into new loans, while the second would be to meet any possible decline in share capital which might be caused by reconversion, dislocations. In the long run, such a rise in the repurchase ratio during reconversion need not cause a lowering of sights from the industry's long-range goal of vigorous, sound asset growth in the post-war period. On the contrary, the availability of liquid assets to meet demands for repurchases promptly may avert an unnecessary over-ride in the contraction of Share capital. The extent to which future repurchases will create a drain on liquid assets is obviously impossible of projection now. Nevertheless, it would seem only reasonable to assume that in the majority of cases this factor would not necessarily be sufficient to reduce them to pre-war dimensions. The desirable size for a liquidity reserve would seem to be determined first by the reasonably foreseeable needs of each particular association. The feasibility of maintaining such a proportion of liquidity depends largely upon the spread in the rates of return on loans and liquid investments as compared with interest charged on advances by the Federal Home Loan Banks. Thus far, the discussion has centered on the influence of repurchases upon future trends in the volume of liquid assets, the assumption having been that at least during the period of reconversion a sizable decline in employment will occur, accompanied by a steeper drop in income payments. The other factor which will operate to draw away liquid funds will be the demand for new home loans. To the industry, this flow will be needed to rebalance mortgage 168 portfolios against the day when the lean war years will date the seasoned loans. Also there will be the competitive urge to maintain their position as the principal source of home-mortgage credit. These forces will be operative regardless of whether the general economic backdrop is one of inflation or deflation, although their intensity would vary. This point merits special consideration. Post-War Implications What part will the large volume of liquid assets now in the hands of savings and loan associations play when reconversion takes place? First and foremost, they stand as a bulwark against a deflationary threat which may arise as the volume of war expenditures recedes. Here they may act in the dual capacity previously discussed: (1) A cushion to absorb what need not be more than a temporary decline in share investments, and (2) A supply of funds to spark new residential construction, which in itself is generally recognized as a means of immediately sustaining a healthy volume of economic activity and employment. A lack of liquidity has been the crux of every major deflationary movement known. In the early thirties, the means of gaining liquidity was the principal problem facing the nation. In the field of home finance, the inability of institutions to maintain sufficient "internal" liquidity in the face of insurmountable obstacles resulted in the creation of the Federal Home Loan Bank System as a permanent institution to meet their extraordinary needs. The Home Owners' Loan Corporation was another instrumentality set up in part to increase liquidity of lending institutions with a minimum hardship to the borrower. The Federal Housing Administration was created to open lending channels through the assurance of liquidity. Placing conditions as they existed then alongside conditions as they are today illustrates precisely the advantageous position in which associations find themselves as a result of their high ratios of liquid assets. Obviously, the resources of the Bank System stand in readiness to meet demands for extraordinary liquidity. If there be need, for the investor, the Federal Savings and Loan Insurance Corporation guarantees the ultimate solvency of invested savings up to the legal limit of $5,000 on insured accounts. But from an operating point of view these are secondary and tertiary lines of defense, the first being each individual institution's ability to meet demands from (Continued on p. 186) Federal Home Loan Bank Review RECENT LENDING PATTERN IN SELECTED STATES This five-year study of mortgage lending in 13 selected areas supplements information regularly available in the REVIEW. As a companion-piece to the January survey of recording trends, it rounds out the picture of recent significant developments in mortgage financing. • FOR the past three years the Division of Operating statistics has prepared annually a study of mortgage lending in a selected group of 12 states and the District of Columbia. This year, on the basis of 1944 data, a five-year survey is presented to show the trends that have been generated, from post-depression levels through the years of preparation for and fighting a global w^ar. Although no direct comparison can be made between mortgage-lending and mortgage-recording statistics, this survey in conjunction with a study of the latter data published in the January 1945 R E V I E W , 1 gives a broad outline of developments in mortgage finance as indicated by these two standard measures. 1944 Lending Last year's savings and loan lending activity in the selected areas annually chosen for detailed review, reached a volume of $976,067,000. This represented 67 percent of the total volume of lending reported by all savings and loan associations last year, an approximate proportion which has remained relatively constant over the course of these studies. During this period (1939-1944) the various "loan purpose" categories have also maintained a roughly similar relationship to their respective national totals. The 1944 loan volume reported in these regions advanced 25 percent over 1943. I t topped by 9 percent the previous high point of this series— $897,995,000 in 1941—and was half again as large as the 1939 amount. This over-all increase in lending activity has been registered in spite of stringent restrictions on residential building. In 1944, only $64,889,000 was loaned for construction in these 12 states and the District of Columbia—a 9-percent decline from the $70,983,000 reported in 1943. This meant that last year construction lending represented but 7 percent of total lending activity compared with 9 percent during the previous year. In 1939, this type of loan totaled $186,867,000 and constituted 30 percent of the savings and loan lending in these selected areas. * "Mortgage Recording Trends in Perspective," p. 99. March 194S I t is, as all previous indications have shown, in home-purchase lending that the bulk of recent expansion has been centered. Almost three-fourths ($709,909,000) of all loans made last year were to finance the purchase of existing properties. In 1943, home-purchase loans totaled $528,535,000 and made up 67 percent of lending activity. During 1939, they amounted to $223,456,000—slightly more than a third of total loans made in these areas. All remaining types of loans have shown decreases of varying amounts during the five-year period of this study. The greatest proportionate drop has taken place in refinancing activity—from 19 percent of total savings and loan activity in these states in 1939 to 15 percent in 1943 and only 12 percent last year. Reconditioning of properties has been curtailed by the material and manpower situation during the war to the extent that last year loans for this purpose, aggregating $19,073,000, amounted to only 2 percent of total loans. In 1943, although they amounted to slightly less in dollar volume, they represented the same proportion, and in 1939 when $35,516,000 of such loans were written, they accounted for 6 percent of all lending. Miscellaneous loans constituted a fractionally greater percentage of business last year (6.9 percent) than in 1943 (6.6 percent). The proportion of these loans, however, remained substantially below the 10 percent which they represented in 1939. Geographical Breakdown There have been but two exceptions to the general increase in lending activity. During the five-year period under consideration, only North Carolina has failed to show a total gain. Loans made in 1944 aggregated $21,844,000—a decrease of 9 percent from 1939 business. However, this figure indicates substantial progress back to pre-war levels since it constituted a 30-percent increase over 1943. Maryland, on the other hand, showed an opposite trend. Whereas, in 1944, business dropped off 6 percent from the preceding year, the $34,750,000 loaned in 1944 was 51 percent greater than in 1939. 169 Very little over-all pattern is discernible in the rate of growth shown by the 13 areas covered in this study. Ohio, traditionally a strong savings and loan state, did the largest dollar volume of business last year—$220,758,000. California, a center ofwar production and consequently of real-estate activity, was second in dollar amount of business— $136,487,000. These two states, however, were well below the national percentage increase, showing 16 and 20 respectively, compared with 25 percent for all 13 areas. New York led in percentage increase (up 65 percent) while Florida, Wisconsin, Illinois, New Jersey and North Carolina also showed gains greater than the national increase in lending. On a longer-range basis, associations in California showed the greatest expansion in lending activity— up 83 percent since 1939. Six other states—New Jersey, Illinois, Michigan, Ohio, Wisconsin and New loans made by savings and loan associations in selected States—1944, 1943 and 1939 [ T h o u s a n d s of dollars] S t a t e a n d year California: 1944 1943 1939 D i s t r i c t of Columbia: 1944 1943 1939 Florida: 1944 1943 1939 Illinois: 1944 1943 1939 Indiana: 1944 1943 1939 Maryland: 1944 1943 1939 Michigan: 1944 1943 1939 N e w Jersey: 1944 1943 1939 N e w York: 1944_ 1943 1939 N o r t h Carolina: 1944 1943 1939 Ohio: 1944 1943 1939 ..... Pennsylvania: 1944 1943 1939 Wisconsin: 1944 1943 1939 170 Reconditioning Other $30, 387 $84, 215 $12,006 25, 531 69, 531 10,722 37, 447 14,853 13, 279 $1, 233 1,154 2,287 $8, 646 $136,487 6,837 113,775 6,692 74, 558 Construction Home Purchase Refinancing Total 901 3,088 11,941 20, 359 14, 040 5,703 17, 072 13, 942 14, 317 352 583 756 8,151 6,193 7,021 46, 835 37,846 39, 738 996 885 13, 559 8,847 2,568 2, 991 2, 564 2,596 485 421 716 4,443 1,908 2,519 22, 474 14, 625 17,261 96, 422 68,169 25, 917 12, 460 12, 755 19, 698 2,418 2,888 6,113 7,142 5,540 8,666 125, 839 92, 767 74, 745 39, 833 31, 060 10,925 4,509 5,159 5,141 2,787 3,219 3,601 2,448 2,032 3,143 51, 044 42,959 30, 355 25,102 24, 627 14,108 1,559 1,197 2,873 294 358 657 4,779 3,243 1,330 34, 750 37, 016 23,050 18, 464 15, 688 3,728 4,959 4,204 3,235 367 472 1,059 2,276 1,642 2,088 30,154 27, 483 17, 955 215 905 38,843 25, 639 17, 436 9,677 5, 604 671 1,225 1,706 3,591 2,439 1,828 53, 685 41,195 30, 479 292 910 506 65,539 37,200 23, 415 8,616 5,938 8,186 954 822 2,652 2,949 2,231 4,995 79, 350 48,101 65, 754 406 318 »,442 15, 740 11,072 5,765 2,328 2,564 3,456 978 792 2,038 2,392 2,097 3,414 21, 844 16,843 24,115 !, 663 166,872 t, 120 130,141 !, 07.1 55, 790 23, 484 27, 722 23, 655 6,286 4,708 7,916 !, 248 1,660 t, 149 94, 399 72,913 36, 211 12, 876 14,148 12, 504 1,530 1,718 4,202 2,776 2,394 4,578 114,829 94, 833 71, 644 ,430 ,284 ',721 30, 562 19,608 7,037 3,359 3,488 4,148 718 678 1,813 1,949 1,578 2,918 38,018 26, 596 23, 637 15, 453 220, 758 13,233 189,924 13, 654 134, 086 Pennsylvania—reported gains in excess of the 56percent national increase during this period. Construction Pattern Construction lending among the regions under consideration was marked by sharp geographical divergencies during 1944. None of these areas showed anywhere near the volume of loans for this purpose last year that they had in 1939. Decreases during this five-year period ranged from 95 percent in North Carolina and New York to 19 percent in California. As indicated by last year's data on residential building, California was by far the most active of all states in that respect during 1944. This was reflected in a construction-loan volume of $30,387,000, the largest for any of these selected areas. I t represented an increase of 19 percent over 1943 and accounted for 22 percent of savings and loan lending in that state. Illinois more than doubled the volume of construction lending of the preceding year—a rate of gain far in excess of any other area. At that, these loans accounted for only 6 percent of total lending compared with 4 percent in 1943 and 19 percent in 1939. Other states reflecting 1944 gains in this loan type were North Carolina, 28; Florida, 13; and Wisconsin, 11 percent. The states which appeared in the increase column last year are centers of war production or military installations which made them critical housing areas. Decreases in building loans ranged from 1 percent in Indiana to 71 percent in the District of Columbia. Aside from California, where construction lending made up 22 percent of all loans, no state showed more than the 14 percent reported by Michigan. Loans for new construction represented but 2 percent of all New York business—the least for any state. Home-Purchase Loans While construction lending was showing divergent trends, home-purchase loans occupied an increasingly important position in all areas under consideration. Last year, in all but three states and the District of Columbia (the only area where less than half of all business was of this type) loans for the purchase of existing properties constituted almost three-fourths of total lending. The year before, only five states reported an equal proportion, while in 1939, Maryland and Pennsylvania were alone in showing as much as one-half of their lending for this purpose. Ohio associations did by far the greatest dollar volume of lending for the purchase of existing Federal Home Loan Bank Review homes—$166,872,000. The percent increase represented by this amount (28) was nowhere near as large as, for instance, in New York, Wisconsin or Florida where the gains amounted to 76, 56 and 53 percent, respectively. Even in Maryland, where total lending activity declined, home-purchase loans showed a 2-percent increase and constituted 72 percent of business. In a five-year comparison, loans of this type showed an even more remarkable growth. In California and Florida, lending for the purchase of existing homes amounted to almost five times as much last year as it had been in 1939. I n Michigan in 1944, nearly four times as much money was loaned for this purpose, and in the District of Columbia this type of business was almost three times as great as five years ago. New Jersey and Maryland were the only states that did less than double their homepurchase lending during this period. Refinancing—Reconditioning In all but four states—California, North Carolina, Maryland and Florida—refinancing loans ranked second in the proportion of total lending. However, the percentage gains and losses during last year were about evenly divided. Five states and the District of Columbia showed increases over 1943, ranging from 12 to 45 percent, while seven states reported declines varying between 2 and 15 percent. Refinancing appeared to be most common in the District of Columbia where, in 1944, it constituted 36 percent of total lending activity. Only in Michigan and New Jersey did it represent more than 16 percent of business, while in Maryland these loans amounted to only 4 percent of the total. Since 1939, loans for the purpose of refinancing properties have increased in five states and the District of Columbia while they declined in seven states. During that year, aside from the District of Columbia, which reported the largest proportion of loans as going for refinancing purposes, this type of lending was generally third in importance. The same conditions which influenced 1944 trends in construction were generally reflected in reconditioning loans throughout the 13 areas under consideration. Of the eight states which reported decreases in construction lending, only Ohio and New York showed increases in reconditioning loans. In Illinois, on the other hand, where construction activity more than doubled in 1944, reconditioning loans declined 16 percent. The other four states which showed increased construction lending—CaliMarch 194S fornia, North Carolina, Florida and Wisconsin—also recorded a higher volume of loans for reconditioning. That this type of lending was insignificant in proportion to total business in all these areas last year is evident from the fact that Indiana was the only state in which it accounted for as much as 5 percent of savings and loan lending. Five years ago, the highest proportion reported for reconditioning loans was 12 percent in Indiana—although at that time the proportion in most of these areas was somewhat higher than that shown in 1944. "Other" Loans During 1944, miscellaneous loans increased in all 12 states and the District of Columbia, their growth varying from 14 percent in North Carolina to 133 percent in Florida. Pennsylvania and. Florida showed the extremes in relative importance of this loan type. In Pennsylvania, "other" loans amounted to only 2 percent of all lending while in Florida, 20 percent was "miscellaneous". A comparison between miscellaneous lending last year and in 1939 shows that it has increased, except in New York, Pennsylvania, North Carolina, Wisconsin and Illinois. The greatest gain in this respect was shown in Maryland where the volume last year was over two and a half times as great as in 1939. Other increases ranged from 4 in Indiana to 96 percent in New Jersey. Five years ago, "other" loans ranked third in importance only in the District of Columbia: In 11 states they were fourth, and in Indiana miscellaneous lending was the least important category. 171 nrw New housing code in Milwaukee A new approach t o over-all housing s t a n d a r d s will be p u t into effect on M a r c h 31 in Milwaukee, Wisconsin. T h e housing code proposed by t h e H e a l t h Commission a n d adopted by t h e City Council early this year differs from t h e usual t y p e by setting minimum sanitary s t a n d a r d s for all dwellings, whether owner or t e n a n t occupied, without regard to t h e date of construction of t h e residence or to t h e n u m b e r of units which it contains. T h e new ordinance, providing for the prevention of t h e spread of blight a n d t h e elimination of insanitary living conditions, is an a d a p t a t i o n of t h e already existing community police power. "Baby" bonds commencing to mature As Series A—the original Governm e n t " b a b y " savings bonds—began maturing in March, 10 years after their date of sale, t h e U. S. Treasury outlined t h e alternatives open to their owners. These bonds m a y be presented a t almost any b a n k for redemption a t $4 for every $3 originally invested. However, instead of accepting cash, t h e bondholder m a y reinvest all or a p a r t of t h e proceeds in Series E war bonds, t h e successor of Series A, designed for t h e small saver. If these are held until their m a t u r i t y date (10 years from t h e m o n t h of purchase) t h e owner will realize about 77 percent interest on his original investment over t h e 20-year period. If t h e bondholder BILLIONS Of BOABP FEET ESTIMATED QUARTERLY ^ ^ TOTAL 1 S, AND SUPPLY STOCKS^\ 1 1 \ TOTAL STOCK WITHDRAWALS^ TOTAL CON SUMPTION*^ \ y/ *% ,/ V TOTAL NEW SUPPLY'S _J!m ' Z l » 1941 172 1942 1943 1944 N II makes this t r a d e during t h e m o n t h in which t h e Series A bonds m a t u r e , Series E bonds so obtained will be exe m p t from t h e $3,750 annual-investm e n t limit, which is, under ordinary circumstances, imposed on these Government securities. Series A bonds, in $25 to $100 denominations, were sold only from M a r c h 1, 1935 until J a n u a r y 1, 1936. During t h a t time, bonds amounting to $250,000,000 were issued—including interest accruing to date. Of this a m o u n t , $181,000,000 (at present cash value) are still outstanding for redemption. Seasonal rent-control exemptions extended T h e Office of Price Administration, through a m e n d m e n t s effective February 3, 1945, has extended rent control exemption on summer seasonal rental units for t h e period J u n e 1 t h r o u g h September 30, 1945. Properties which were exempt from rent control in t h e summer of 1944 will be exempt again this year. I n order to qualify for exemption, accommodations must be located in a resort c o m m u n i t y ; they m u s t h a v e been occupied or rented on a seasonal basis prior to October 1, 1944; a n d they m u s t not have been rented from November 1, 1943 to F e b r u a r y 29, 1944, inclusive. Any landlord who was eligible for exemption during t h e 1944 summer season and who is now renting his premises is qualified to seek exemption for t h e 1945 season. Those, however, who are now withholding accommodations from t h e rental m a r k e t m a y not apply for exemption unless they can certify t h a t t h e properties involved were unoccupied for t h e similar period of 1943-1944. Unlike last year, landlords are required to report accommodations t o their area rent offices between April 1 and M a y 3 1 , 1945. In this way offices are familiar with properties in defense rental areas which are exempt from rent control, and t h e handling of complaints from t e n a n t s is facilitated. T h e Madison, Wisconsin, defense rental area is not exempted from seasonal r e n t control due t o t h e fact t h a t practically all available housing u n i t s are rented to incoming war workers on a year-round basis. G l loan information distributed F o r m s a n d information necessary t o m a k e t h e three types of loans u n d e r t h e G. I. Bill of Rights h a v e now received general distribution. F o r m s have been furnished t o regional offices a n d e m ployees of t h e V e t e r a n s ' Administration. I n addition, facilities of t h e Federal Reserve System a n d of t r a d e organizations in the financial field h a v e been utilized in order to get this material in t h e h a n d s of t h e great majority of recognized lending agencies throughout t h e country. I n t h e event t h a t information is n o t available in any particular c o m m u n i t y , inquiry should be m a d e of t h e nearest VA office. I n order to t a k e care of t h e increasing volume of G I loan business, four new offices h a v e been opened. This brings to 11 t h e n u m b e r of offices now in operation. These new b r a n c h e s are located in Boston, M a s s a c h u s e t t s ; St. Louis, Missouri; Denver, Colorado; and Seattle, Washington. Temporary housing goes abroad T h e first 340 of 5,000 prefabricated barracks scheduled to be ready for shipment by M a r c h 31 to house dock workers in F r a n c e are ready, only a little more t h a n a m o n t h after arrangements were m a d e between t h e Foreign Economic Administration and t h e F P H A . Contracts for 3,320 of these units have been closed. Of t h e remaining barracks, 500 will be obtained by demounting t e m p o r a r y warhouses not feasible for re-use in this country. Substitutes for lumber are being used wherever possible, a n d standardization of production here p e r m i t s standardized assembly of t h e panelized units abroad. Federal Home Loan Bank Review Surplus Housing Regulations • E V E R since defense housing first became a matter of national concern, it was foreseen that a number of knotty problems would be involved in the final disposition of surplus, Government-owned dwellings. The nature of the housing problem demanded wartime construction in a number of warindustry localities in excess of what was believed to be their normal peacetime needs. Therefore, in drafting the Lanham Act, Congress directed that publicly financed war housing in such places should be constructed with a view to post-war disposition. Permanent housing was provided when materials were available and a post-war need for such housing in the locality could reasonably be anticipated. Temporary housing was built when materials were short or where the housing would be surplus to the community's post-war needs. The Lanham Act provided for the eventual removal of temporary housing from the site. Permanent housing was to be disposed of to private use when no longer needed for war or Government requirements, except for housing which the Congress may specifically authorize for low-rent use after the war. On January 15, 1945, Regulation 60-13 of the National Housing Agency covering the disposition of Federally owned war-housing projects of permanent-type construction developed under Public Laws 849 (Lanham Act) and 781 (76th Congress) and Public Laws 9, 73 and 353 (77th Congress) was made effective. As a matter of general policy, 'permanent warhousing projects or parts thereof "shall be disposed of as expeditiously as is consistent with the furtherance of the war effort and orderly demobilization/' the regulation states. In accordance with the provisions of the Lanham Act, these shall be sold for private residential purposes unless transferred for use by other Federal agencies or unless Congress authorizes their conversion to low-rent housing. Terms and Conditions of Sale The terms and conditions of sale as stated in the regulation will be of particular interest to lending institutions inasmuch as they are to be relied upon to finance these transactions. Where private financing is not available, the Federal Public Housing Authority will establish sales terms in accordance with local financing practice. Where possible, sales will be made for owner occupancy and preference will be given to those occupying the dwellings at the time of disposition. However, March 194S 632875—45 2 among the prospective occupants, preference will be accorded veterans of the armed forces. Only when it is not feasible to sell to occupants will the properties be sold to private investors. "Prior to sales to consumers, prices equal to reasonable market values as established by competent appraisal shall be publicly announced: provided that advantage shall not be taken of scarcity in the market to obtain inflated prices. "Prior to sales to private investors, public notice shall be given and proposals solicited. Sales shall be consummated at prices conforming, so far as practicable to appraisal value, and the highest and best offer obtainable shall be accepted unless it shall be found in the public interest to accept a lower offer." fe DIRECTORY CHANGES JANTJAJRY 1 6 — F E B R U A R Y 15, 1945 Key to Changes * Admission to Membership in Bank System ** Termination of Membership in Bank System # Federal Charter Granted ## Federal Charter Canceled 0 Insurance Certificate Granted 00 Insurance Certificate Canceled DISTRICT N O . 2 N E W JERSEY: Camden: **John Campbell, Jr.—Girard Building and Loan Association, 227 Federa Street. DISTRICT N O . 4 DISTRICT OF COLUMBIA: Washington: * Mutual Building Association of the District of Columbia, 425 Seventh Street, N. W. DISTRICT N O . 5 KENTUCKY: Lexington: *New Union Building Association, 249 West Short Street. OHIO: Ada: **00 The Home Savings and Loan Company, 107 North Main Street. DISTRICT N O . 6 MICHIGAN: Kalamazoo: #Fidelity Federal Savings and Loan Association of Kalamazoo, 315 South Burdick Street. DISTRICT No. 7 ILLINOIS: Chicago: * Crane Building and Loan Association, 2555 West Forth-seventh Street. Elgin: *Elgin Loan and Homestead Association, 14-16 North Spring Street. DISTRICT N O . 8 MISSOURI: Clinton: **00 Henry County Building and Loan Association of Clinton, 122 East Franklin Street. DISTRICT N O . 9 MISSISSIPPI: Jackson: **The Lamar Life Insurance Company. TEXAS: Winnsboro: ** Winnsboro Building and Loan Association, First National Bank Building. DISTRICT No. 10 KANSAS: Horton: 00Horton Building Loan and Savings Association, 104-6 West Eighth Street. 173 PURCHASES AND SALES OF WAR BONDS BY MEMBER INSTITUTIONS I M A R C H 1945 is a memorable month in the history of United States Savings Bonds, for the first of the " b a b y bonds", Series A of 1935, are now maturing. In making this announcement, the Secretary of the Treasury emphasized that "if individuals desire, they may reinvest any part of the proceeds of their Series A bonds, up to such denominational amount as the proceeds will fully cover, in Series E war bonds." Holders of Series A bonds, other than individuals, are not eligible to buy Series E bonds and will not be permitted to reinvest the proceeds of their A bonds in E bonds. Of the Series A issue of 1935, only 27 percent have been redeemed prior to maturity. War Bonds During January, purchases and sales of war bonds and stamps by member institutions amounted to $78,302,000, bringing the total of such activity over the past 25 months (January 1943 through January 1945) to $2,917,000,000. Sales to others aggregated $31,037,000, bringing the cumulative total over the identical period to $995,026,000, while purchases by members for their own accounts in January amounted to $47,265,000, raising the cumulative purchases since the beginning of 1943 to $1,922,000,000. Perhaps the significance of the January level of activity is more apparent when contrasted with the figures reported for August 1944, inasmuch as both are months immediately following war-bond drives. From such a comparison, it will be seen that activity in the first month after the Sixth War Loan was almost three times that of the month following the Fifth War Loan; purchases were about three and one-third times as high and sales were approximately two and one-half times as great as during last August. Holdings of the 2,372 members reporting sales and purchases in January amounted to $1,352,519,000, placing their portfolios of Government securities at 26 percent of assets. The 195 institutions listed below have qualified for mention in the Honor Roll for January by reporting sales to individuals of war bonds and stamps equal to or in excess of 1 percent of association assets. 174 NO. 1—BOSTON Bristol Federal Savings and Loan Association, Bristol, Conn. Windsor Federal Savings and Loan Association, Windsor, Vt. NO. 2—NEW YORK Alfred Mutual Savings and Loan Association, Alfred, N . Y. Berkeley Savings and Loan Association, Newark, N. J. Caldwell Savings and Loan Association, Caldwell, N . J. Colonial Federal Savings and Loan Association, Dongan Hills, Staten Island, N. Y. Cranford Savings and Loan Association, Cranford, N. J. Edison Savings and Loan Association, New York, N. Y. First Federal Savings and Loan Association, Rochester, N. Y. Fourth Federal Savings and Loan Association, New York, N. Y. May wood Savings and Loan Association, May wood, N . J. North Belleville Savings and Loan Association, Belleville, N. J. North Plainfield Building and Loan Association, North Plainfield, N. J. Reliance Federal Savings and Loan Association, Queens Village, N. Y. Westwood Savings and Loan Association, Westwood, N . J. NO. 3—PITTSBURGH Brentwood Federal Savings and Loan Association, Brentwood, Pa. Capital Building and Loan Association, Philadelphia, Pa. Ellwood City Federal Savings and Loan Association, Ellwood City, Pa. First Federal Savings and Loan Association, Logan, W. Va. First Federal Savings and Loan Association, Wilkes-Barre, Pa. Franklin Federal Savings and Loan Association, Pittsburgh, Pa. Friendly City Federal Savings and Loan Association, Johnstown, Pa. Holmesburg Building Association, Philadelphia, Pa. Mid-City Federal Savings and Loan Association, Philadelphia, Pa. Montour Valley Savings, Building and Loan Association, Imperial, Pa. North Philadelphia Federal Savings and Loan Association, Philadelphia, Pa. Peoples Home Building and Loan Association, Pittsburgh, Pa. St. Edmond's Building and Loan Association, Philadelphia, Pa. Third Federal Savings and Loan Association, Philadelphia, Pa. United Federal Savings and Loan Association, Morgantown, W. Va. NO. 4—WINSTON-SALEM Bartow Federal Savings and Loan Association, Bartow, Fla. Brevard Federal Savings and Loan Association, Brevard, N . C. Citizens Federal Savings and Loan Association, Rutherfordton, N . C Clewiston Federal Savings and Loan Association, Clewiston, Fla. First Federal Savings and Loan Association, Andalusia, Ala. First Federal Savings and Loan Association, Anderson, S. C First Federal Savings and Loan Association, Bessemer, Ala. First Federal Savings and Loan Association, Cordele, Ga. First Federal Savings and Loan Association, Decatur, Ala. First Federal Savings and Loan A>sor-iaiion, Forest City, N . C First Federal Savings and Loan Association, Gastonia, N. C First Federal Savings and Loan Association, Greenville, N. C. First Federal Savings and Loan Association, Lancaster, S. C. First Federal Savings and Loan Association, Vero Beach, Fla. Hamlet Building and Loan Association, Hamlet, N. C. Home Building and Loan Association, Easley, S. C. Home Building and Loan Association, Spray, N . C. Home Mutual Building and Loan Association, Washington, D. C. Lexington County Building and Loan Association, West Columbia, S. C. Lithuanian Federal Savings and Loan Association, Baltimore, Md. Mechanics Federal Savings and Loan Association, Rock Hill, S. C. Mutual Building and Loan Association, Danville, Va. Mutual Building and Loan Association, Martinsville, Va. Mutual Building and Savings Association, Pensacola, Fla. Perpetual Building and Loan Association, Anderson, S. C. Raleigh Building and Loan Association, Raleigh, N . C. Standard Building and Loan Association, Columbia, S. C. Stephens Federal Savings and Loan Association, Toccoa, Ga. Tifton Federal Savings and Loan Association, Tifton, Ga. NO. 5—CINCINNATI Anderson Ferry Building and Loan Company, Cincinnati, Ohio Antonio Savings and Loan Company, Cincinnati, Ohio Athens Federal Savings and Loan Association, Athens, Tenn. Bedford Savings and Loan Company, Bedford, Ohio Citizens Federal Savings and Loan Association, Dayton, Ohio Cookeville Federal Savings and Loan Association, Cookeville, Tenn. Dyer County Federal Savings and Loan Association, Dyersburg, Tenn. Fidelity Building Association, Dayton, Ohio First Federal Savings and Loan Association, Greeneville, Tenn. Fulton Building and Loan Association, Fulton, Ky. Hancock Savings and Loan Company, Findlay, Ohio Home Builders Loan and Savings Company, Cincinnati, Ohio Home Federal Savings and Loan Association, Cincinnati, Ohio Linwood Savings and Loan Company, Cincinnati, Ohio McArthur Savings and Loan Company, McArthur, Ohio Oakley Building and Loan Company, Cincinnati, Ohio Orleans Federal Savings and Loan Association, Cleveland, Ohio Federal Home Loan Bank Review NO. 6—INDIANAPOLIS Calumet Federal Savings and Loan Association, Hammond, Ind. First Federal Savings and Loan Association, Detroit, Mich. Logansport Building and Loan Association, Logansport, Ind. Monon Building, Loan and Savings Association, Monon, Ind. Peoples Federal Savings and Loan Association, Detroit, Mich. Peoples Federal Savings and Loan Association, East Chicago, Ind. Peoples Federal Savings and Loan Association, Monroe, Mich. Peoples Federal Savings and Loan Association, Royal Oak, Mich. Peoples Savings and Loan Association, Huntington, Ind. Sault Ste. Marie Federal Savings and Loan Association, Sault Ste. Marie, Mich. Wayne County Federal Savings and Loan Association, Detroit, Mich. NO. 7 - C H I C A G O Abraham Lincoln Savings and Loan Association, Chicago, 111. American Savings and Loan Association, Chicago, 111. Chippewa County Building Loan and Investment Association, Chippewa Falls, Wis. Clintonville Federal Savings and Loan Association, Clintonville, Wis. Colonial Savings and Loan Association, Chicago, 111. Consolidated Savings and Loan Association, Milwaukee, Wis. De Pere Federal Savings and Loan Association, De Pere, Wis. First Federal Savings and Loan Association, Barrington, 111. First Federal Savings and Loan Association, Streator, 111. Grand Crossing Savings and Building Loan Association, Chicago, 111. Harvey Federal Savings and Loan Association, Harvey, 111. Hemlock Savings and Loan Association, Chicago, 111. Home Federal Savings and Loan Association, Chicago, 111. Kinnickinnic Federal Savings and Loan Association, Milwaukee, Wis. Lawndale Savings and Loan Association, Chicago, 111. Lawn Manor Building and Loan Association, Chicago, 111. Lombard Building and Loan Association of Du Page County, Lombard, 111. Mt. Vernon Loan and Building Association, Mt. Vernon, 111. Narodni Savings and Loan Association, Chicago, 111. New City Savings and Loan Association, Chicago, 111. New London Savings and Loan Association, New London, Wis. North Shore Building and Loan Association, North Chicago, 111. Northwestern Bohemian Building and Loan Association, Chicago, 111. Peoples Federal Savings and Loan Association, Peoria, 111. Peoples Savings and Loan Association, Milwaukee, Wis. Prairie State Savings and Loan Association, Chicago, 111. Reliance Building and Loan Association, Milwaukee, Wis. Sacramento Avenue Building and Loan Association, Chicago, 111. Security Federal Savings and Loan Association, Chicago, 111. Security Federal Savings and Loan Association, Springfield, 111. Springfield Building and Loan Association, Springfield, 111. St. Anthony Savings and Loan Association, Cicero, 111. St. Francis Building and Loan Association, St. Francis, Wis. United Savings Association, Taylorville, 111. Uptown Federal Savings and Loan Association, Chicago, 111. NO. 8—DES MOINES Central Savings and Loan Association, Chariton, Iowa Dubuque Building and Loan Association, Dubuque, Iowa Fidelity Building and Loan Association, Winona, Minn. First Federal Savings and Loan Association, Moberly, Mo. Geo. D. Clayton Building and Loan Association, Hannibal, Mo. Higginsville Savings and Loan Association, Higginsville, Mo. Home Building and Loan Association, Joplin, Mo. Independence Savings and Loan Association, Independence, Mo. Northern Federal Savings and Loan Association, St. Paul, Minn. Perry Federal Savings and Loan Association, Perry, Iowa Public Service Company's Savings and Loan Association, Kansas City, Mo. Willmar Federal Savings and Loan Association, Willmar, Minn. Yankton Building and Loan Association, Yankton, S. Dak. NO. 9—LITTLE ROCK Amory Federal Savings and Loan Association, Amory, Miss. Atlanta Federal Savings and Loan Association, Atlanta, Tex. Continental Building and Loan Association, New Orleans, La. Corsicana Federal Savings and Loan Association, Corsicana, Tex. Electra Federal Savings and Loan Association, Electra, Tex. El Paso Federal Savings and Loan Association, El Paso, Tex. Equitable Building and Loan Association, Roswell, N. Mex. First Federal Savings and Loan Association, Belzoni, Miss. First Federal Savings and Loan Association, Big Spring, Tex. First Federal Savings and Loan Association, Helena, Ark. First Federal Savings and Loan Association, Little Rock, Ark. First Federal Savings and Loan Association, Marshall, Tex. First Federal Savings and Loan Association, Paris, Tex. First Homestead and Savings Association, New Orleans, La. Greater New Orleans Homestead Association, New Orleans, La. Guaranty Savings and Homestead Association, New Orleans, La. Home Building and Loan Association, Plainview, Tex. Hope Federal Savings and Loan Association, Hope, Ark. Inter-City Federal Savings and Loan Association, Louisville, Miss. Jennings Federal Savings and Loan Association, Jennings, La. Morrilton Federal Savings and Loan Association, Morrilton, Ark. Mutual Deposit and Loan Company, Austin, Tex. Nashville Federal Savings and Loan Association, Nashville, Ark. Natchez Building and Loan Association, Natchez, Miss. Pocahontas Federal Savings and Loan Association, Pocahontas, Ark. Ponchatoula Homestead Association, Ponchatoula, La. Quanah Federal Savings and Loan Association, Quanah, Tex. Rapides Building and Loan Association, Alexandria, La. Riceland Federal Savings and Loan Association, Stuttgart, Ark. March 194S San Angelo Federal Savings and Loan Association, San Angelo, Tex. Slidell Savings and Homestead Association, Slidell, La. Sulphur Springs Loan and Building Association, Sulphur Springs, Tex. Third District Homestead Association, New Orleans, La. Union Federal Savings and Loan Association, Baton Rouge, La. NO. 10—TOPEKA Bonner Springs Building and Loan Association, Bonner Springs, Kans. Capitol Federal Savings and Loan Association, Topeka, Kans. Cherokee Federal Savings and Loan Association, Cherokee, Okla. Citizens Federal Savings and Loan Association, Wichita, Kans. First Federal Savings and Loan Association, Osawatomie, Kans. First Federal Savings and Loan Association of Sumner County, Wellington Kans. First Federal Savings and Loan Association, WaKeeney, Kans. Hays Building and Loan Association, Hays, Kans. Home Building and Savings Association, McCook, Nebr. Home Federal Savings and Loan Association, Tulsa, Okla. Industrial Federal Savings and Loan Association, Denver, Colo. Peoples Federal Savings and Loan Association, Tulsa, Okla. Valley Federal Savings and Loan Association, Hutchinson, Kans. Wayne Federal Savings and Loan Association, Wayne, Nebr. NO. 11—PORTLAND Big Horn Basin Federal Savings and Loan Association, Greybull, Wyo. First Federal Savings and Loan Association, Everett, Wash. First Federal Savings and Loan Association, Sheridan, Wyo. Portland Federal Savings and Loan Association, Portland, Oreg. NO. 12—LOS ANGELES Albany Federal Savings and Loan Association, Albany, Calif. California Savings and Loan Company, San Francisco, Calif. Central Federal Savings and Loan Association, San Diego, Calif. First Federal Savings and Loan Association, Huntington Park, Calif. Golden Gate Federal Savings and Loan Association, San Francisco, Calif. Marin County Mutual Building and Loan Association, San Rafael, Calif. Nucleus Building and Loan Association, San Jose, Calif. Palo Alto Mutual Building and Loan Association, Palo Alto, Calif. Wartime Savings in Britain • SAVINGS and loan associations have followed with interest the various developments in the building societies' field in Britain during the past few years. Recently the British government released a pamphlet, Statistics Relating to the War Effort of the United Kingdom, which contains, among other things, certain information on [savings during recent years. War in Britain, as elsewhere, has produced sharp gains in personal incomes and taxes as well as savings. With a large number of its population employed or in the armed services and with longer working hours and higher earnings, total personal income before taxes mounted from £4,779,000,000 l in 1938 to £7,708,000,000 in 1943. Income and other direct taxes paid, likewise showed substantial gains. In 1943, these taxes totaled £1,169,000,000, or more than 15 percent of income, compared with 1938 when taxes totaled £472,000,000, slightly less than 10 percent of income. The annual volume of personal savings has shown an even more rapid expansion than that of taxes. Whereas, in 1938 it totaled £169,000,000, about 3.5 percent of income, it has risen steadily. In 1943 the volume amounted to £1,490,000,000, more than 19 percent of income payments. * £1 = approximately $4.00. 175 RESIDENTIAL BUILDING ACTIVITY AND SELECTED INFLUENCING FACTORS 1935-1939=100 BY YEARS BY MONTHS INDEX 1 1 1 1. 1 1 220 200 ( 180 160 / .i / \f IV f / V I00\ L.***« *SV<5S.6 LN. LEA D. l-LD. HOM ELN. BK.AI S % / / f **-/ .PRIVATE CONSTRUCTION r_J 1 a 2 FAMILY DWELL. UNITS \~ ..-'* -/^ ^ ivuivrAww - ^ 40 1 v. FORECLOSURES 1 (FFH HOMF I N RK ADM) 20 0 140 ^-4=- RENTS n U . S . DEPTOF LABC)R) S^ | | 1 %. \ vmm* '*****- ^ D U rn fNONFARM 1 - 1 .. . ... 120 1 , .#<•• .^ — • • • • 1 1 1 i i i i FORECLOSURES 1 - 1 1 1 1 f- - 77 f" ' 1 —1—1—I—1—hri — RENTS 1 1. 1 1 1.. 1.. 1. L. 1 260 1 240 , N _»-" ***" . ++ INDLISTRIAL PRODUCTIO N - ^ 220 FED. nLOC nvc DUMK J i \ / •-——< ''V/A (1 > 180 160 r / 200| f '* INCOME PAYMENTS (U.S. DEPT OF COMMERCE)^} .-*$ >:•, '*: \* •* i i 1 1 1 I I 1 / i/ •'*>(&'' *s *h -1 V 1 f 1 1 1 1 1 1 1 I 1 1 VARIATION 1 I INDUSTRIAL PRODIJCTK)N •^ COMl «^ : PAYMENT s 1 •^ J" MF6. Eh PLO\ fMEN < / /' 140 * i i 1- ,* — ADJUSTED FOR SEASONAL ^ \ 11 II Of f PR/C£• e "PIZ IL.UI (U. 3. DEIn OF LAB( DR) I.. 120 i i -• 2Su M l ' ' 60 280 60 -..'*"x i / ' " a LN. LEND. if 60 80 V'f V \ 80 I00\ A / .* / f^SVGS. 120 80 t\ \ 140 100 ADJUSTED FOR SEASONAL VARIATION 1 I 1 1 1 1/ PRIVATE CONSTRUCTION x I S 2 FAMILY DWELL.UNITS jj (FED. LOANB.BANK A D3M . ) ^ RE CORD" US. CHOME EPT DFLA ••.....•••* TS .£ EMPLOYMENT *% *MFG. (U.S. DEPT OF LABOR) Lu_ _.!_..!_. 1930 '31 '32 '33 '34 '35 '36 '37 '38 '39 '40 '41 '42 '43 '44 CONSUMER •NOEX COST OF STANDARD SIX-RM. HOUSE 150 I 1935-1939*100 i i 1943 CREDIT 1, .1 .., .1 ..I., 1,1 1 1 i i 1 1 1 1 1 1 • -1 1 1944 .NOEXWHOLESALE 180 1945 COMMODITY PRICES 1935-1939-100 ~ LUMBER^J ^/\MATERIAL BUILDING MATERIALS-*, .. \A/rTOTAL INSTALMENT CREDIT ALL INDUSTRIAL' I til III 'll ' 1942 176 ihiluli ,1M! Illllllllll llllllllll • Inl, MMIMII M I I I 1I I II i ill i l n h t h i l l i l n h 1942 1945 ilnlnli miiLiM Federal Home Loan Bank Review . • • MONTHLY SURVEY > » > HIGHLIGHTS /. January 1945 is the first month since 1938 in which no publicly financed urban dwelling units were put under construction. A. Private residential construction in urban areas dropped to the lowest level in almost 11 years. B. Of all permits issued last month, 81 percent were for single-family structures. II. The cost of constructing the standard house increased again in January—up 0.1 percent to 134.6 ( 7 9 3 5 - 7 9 3 9 = 100). An advance of 0.2 percent in material cost was responsible for this gain. III. Lending by all savings and loan associations was at a near all-time high for January despite an 8-percent decline from December figures. IV. A less-than-seasonal drop in nonfarm mortgage recordings of $20,000 or less occurred during January. A. Recordings during the month totaled $355,000,000—a drop of 1.6 percent from December, but 17.4 percent greater than in January 1944. B. Both individuals and savings and loan associations reached record levels for the month of January in the volume of their recordings. V. The inflow of private repurchasable capital continued at a high rate through January and the ratio of repurchases to new investments was 65.5 percent. VI. Reserves of insured associations amounted to 6.5 percent of resources. •& BUSINESS CONDITIONS-Industrial production up slightly Although the seasonally adjusted index of industrial production as measured by the Federal Reserve Board rose 2 points in January to 234 percent of the 1935-1939 average, the activity in munitions industries remained at the December rate. Factory output increased slightly despite severe weather conditions but the gain was chiefly in nondurable goods. That index rose 3 points compared with only 1 point for durables. War production schedules of the Army were raised in February, Undersecretary of War Patterson revealed. The new program calls for a procurement goal of $37,800,000,000—an increase of $1,600,000,000 over the January objective and 19 percent above 1944 deliveries to the Army. A $50,000,000 expansion for the engine-parts industry is part of this plan. During January the number of employees in non-agricultural establishments declined 959,000 to 37,852,000, according to the Bureau of the Census. The same month brought an increase from 239.0 to 241.3 in income payments, as measured by the U. S. Department of Commerce (seasonally adjusted, 1935-1939 = 100). Money in circulation declined in January for the first time in four years, the Commerce Department disclosed. On the 31st of that month, per capita circulation was $181.97 compared with $182.19 on December 31, 1944. March 1945 # £• For the week of February 10, the Federal Reserv Board reported that department store sales had risen to 172 percent of the 1935-1939 average. Tins represented a gain of 27 points since the first week of 1945. During the first seven weeks of this year, sales have been 14 percent above the already high level which was shown during the same period of 1944. Wholesale commodity prices, as measured by the U. S. Department of Labor (1926 = 100, converted to 1935-1939 base) continued the fractional weekly gain noted since February 3. For the week of February 17, they stood at 130.3 which represented an increase of 1.6 percent over the same time a year ago. The Labor Department also reported only a fractional advance during January in the cost of living. On the basis of 1935-1939 = 100, that index stood at 127.1 percent in January compared with 127.0 in December. However, the increase reported since January 1944 is somewhat larger—up almost 3 points from the^ 124.2 which was shown at that time. [1935-1939=100] T y p e of index H o m e c o n s t r u c t i o n (private) i. R e n t a l index (B LS) B u i l d i n g m a t e r i a l prices Savings a n d loan lending i Industrial production 1 Manufacturing employmenti Income payments * Jan. 1945 Dec. 1944 Percent change Jan. 1944 47.0 108.3 130.4 208.8 234. 0 166.1 241.3 47.0 108.3 130.0 188.4 - 232.0 r 164. 3 • 239.0 0.0 0.0 +0.3 +10.8 +0.9 +1.1 +1.0 78.9 108.1 126.7 165.3 243.0 181.8 227.2 Percent change -40.4 +0.2 +2.9 +26.3 -3.7 -8.6 '+6.2 r Revised. i A d j u s t e d for n o r m a l seasonal v a r i a t i o n . 177 BUILDING ACTIVITY—No publicly Construction costs for the standard house financed construction in January [Average month of 1935-1939-100] For the first month since 1938, no publicly financed dwelling units were placed under contract in urban areas during January. As the result of this, total residential construction in these areas dropped to the lowest level in 10 or 11 years. According to data compiled by the Department of Labor, permits were issued during the month for the construction of only 5,046 family dwellings, compared with a total of 8,045 units in December and 11,016 in January 1945. Of the total number of permits issued in January for privately financed units, 81 percent were for single-family dwellings compared with 76 percent in January 1944. Three- and more-family units accounted for 15 percent of all construction started the first month of this year whereas in January 1944 they amounted to 24 percent of total private construction. The seasonally adjusted index of privately financed construction (1- and 2-family dwellings) remained the same in January as it was the previous month— 47.0 percent. In January 1944 this index stood at 78.9. [TABLES 1 and THOUSNEW 2.] RESIDENTIAL CONSTRUCTION 25 i 20 Element of cost Material, Labor__ Total Jan. 1945 PerDec. cent 1944 r change Jan. 1944 Percent change 131.7 140. 3 131.5 + 0.2 0.0 140. 3 127. 8 136. 1 + 3. 1 + 3. 1 134.6 134. 5 + 0.1 130. 6 + 3.1 •"Revised. Compared with January 1944, construction costs have increased 3.1 percent, reflecting equal percentage increases in the cost of materials and labor. During the 12 months preceding Januaiy 1944, however, material costs rose 5.2 percent and labor costs gained 4.0 percent, resulting in a 4.7-percent advance in the total cost index. Wholesale prices of building materials, as reported by the Department of Labor, rose again during January, primarily the result of a 4.8-percent increase in prices of brick and tile. During the last 12 months, the composite index rose 2.9 percent to 130.4. Prices of six of the seven commodities comprising the index rose during this period, increases ranging from less than 1 percent for plumbing and heating supplies and "other" materials to 10 percent for brick and tile. Steel prices remained unchanged throughout the year. [TABLES 3, 4 and 5.] 15 M O R T G A G E LENDING—Near alltime January high 10 New mortgage loans made by all savings and loan associations during January amounted to approximately $102,300,000, an 8-percent decline from the previous month's total of $111,100,000. The January 1945 volume was, however, the highest for any /'MULTI-FAMILY V •%, L±d1111 n 11 r^'iV^lmiTft 11111M11 I 1I I I I 1 I 1942 1943 1944 1945 B U I L D I N G COSTS—Gradual increase continues The index of the cost of constructing the standard frame house continued gradually upward during January, rising from 134.5 to 134.6 percent of the 1935-1939 average. Material costs, which rose 0.2 percent during the month, are now almost 32 percent above base level. Labor costs, which remained unchanged from December, are now up a total of 40 percent. 178 New mortgage loans distributed by purpose [Dollar amounts are shown in thousands] Purpose Jan. 1945 Dec. 1944 Percent change PerJan. cent 1944 change Construction $3, 772 $5, 244 - 2 8 . 1 $7, 872 - 5 2 . 1 Home purchase__ 77, 395 81, 508 - 5 . 0 55, 000 + 40.7 11,267 13, 555 - 1 6 . 9 9, 976 + 12. 9 Refinancing Reconditioning _ _ 1, 868 2, 127 - 1 2 . 2 1, 521 + 22.8 8, 704 - 8 . 1 6,609 + 21. 0 Other purposes _ _ 7, 999 Total 102, 301 111, 138 -8.0 80, 978 + 26. 3 Federal Home Loan Bank Review January since 1929. Federal savings and loan associations and state-member associations each extended over $46,400,000 of new mortgage credit during the first month this year, while nonmembers loaned $9,400,000. Compared with December, Federal activity was 10 percent less, state members decreased 7 percent, and nonmembers dropped 2 percent. Little Rock, Topeka and Portland Bank Districts showed gains of 26, 19, and 6 percent, respectively, for the month. All other regions reported declines. TOTAL LOANS MADE BY ALL SAVINGS AND LOAN ASSOCIATIONS UNITED STATES-BY TYPE OF ASSOCIATION BY MONTHS MILLIONS OF OOLLARS 160 7'OTAL / SSOCIAT (ALL ONS)X uFEDERALS J* *e L &**N> •J 4TE CHARTER MEMBERS ED NONMtMtJERS-^ i i JUN. 1 -F,, ,r ^ , , ~7Tl^TTT~ SEP. DEC. 1943 MAR JUN. 1 DEC. 1 1 MAR. 1944 1 1 JUN. 1 1 1 SEP. 1945 UNITED S T A T E S - B Y PURPOSE OF LOAN BY MONTHS MORTGAGE RECORDINGS—Gain over last year shown The expanding volume of activity throughout most of 1944 showed evidence of continuation in the new year, with the January volume of nonfarm mortgage recordings of $20,000 or less being placed at about $355,000,000. This estimate for the entire country, based on reports from counties having almost two-thirds of the total nonfarm population, indicated a less-than-seasonal decline in January which was 1.6 percent below the preceding month, but 17.4 percent greater than in January 1944. Savings and loan associations, insurance companies and mutual savings banks, which together accounted for approximately 40 percent of the month's recording activity, showed declines of 7.5 percent, 6.8 percent, and 8.5 percent, respectively, from the levels of the preceding month. Increases reported for the other categories ranged from 0.5 percent for banks and trust companies to 4.2 percent for "others". The rising trend in the proportion of recordings by individuals, to which attention has been drawn in preceding months, continued in January, as activity by this type of mortgagee rose to a record high of 28 percent of all nonfarm mortgage recordings of $20,000 or less. Also, the estimated dollar volume of their recordings, $99,200,000, is the highest that they (individuals) have shown for any January since this series was started. Recordings by savings and loan associations in January likewise reached a record high for the first month of a calendar year, totaling an estimated $111,480,000, about 24 percent above the estimate for the corresponding month of 1944. [TABLES 8 and 9.] Mortgage recordings by type of mortgagee [Dollar amounts are shown in thousands] SEP DEC January lending was 26 percent greater than the $81,000,000 loaned in January 1944. With the exception of the Los Angeles District, which decreased 5 percent, all other areas registered gains, with the Des Moines region increasing 65 percent and the Cincinnati District up 11 percent. Each loan-purpose group, except construction, showed decided gains. Home-purchase loans increased 41 percent, reconditioning and "other" loans were up over 20 percent, while those for refinancing increased 13 percent. March 194S [TABLES 6 and 7.] Type of lender Savings and loan associations __ _ Insurance companies-, Banks, trust companies Mutual savings banks Individuals Others Total PerPerPercent cent change cent Jan. change of from 1944 Jan. Jan. amount 1944December 1945 Jan. 1944 amount 1945 -7.5 -6. 8 + 0. 5 -8. 5 + 3.8 + 4.2 31.4 $89, 887 + 24.0 5.0 20, 585 - 1 3 . 1 18.4 62, 180 + 4. 7 9,731 + 28.5 3. 5 28.0 72, 600 + 36. 6 13.7 46, 966 + 3 1 -1. 6 100.0 301, 949 + 17.4 179 F H L B S Y S T E M — A d v a n c e s outstanding reach long-time low The outstanding advances of the 12 Federal Home Loan Banks dropped to the lowest amount shown in any January since 1936. Totaling $105,726,000 on January 31, 1945, they were $24,837,000 less than at the end of 1944 and $8,838,000 below the amount shown in the first month of 1944. Advances of $10,946,000 made during January this year showed a drop of 77 percent from the unusually large volume of December 1944 and stood $18,003,000 below the January 1944 total. The Boston Bank, which advanced almost three times as much money in January this year as during the previous month, was the only Bank to show a gain in advances during that period. Repayments which, in all Bank Districts except Boston, were greater in January than December, brought the total to $35,783,000—the second highest monthly volume since the establishment of the Bank System. Only in January 1941 was this figure exceeded. The amount repaid by member associations during the first month of this year was more than twice the $16,947,000 received by the F H L Banks in December and $11,331,000 greater than the January 1944 amount. [TABLE 12.] Share investments and repurchases, January 1945 chases have also been rising b u t at a considerably slower pace than new investments. The $155,000,000 of share repurchases estimated for January represented an increase of 16 percent above the $134,000,000 repurchased in January of last year. As a result of the more rapid expansion in new investments than in withdrawals, the repurchase ratio has tended downward, from 71.1 percent in January 1944 to 65.5 percent in January of this year. INSURED ASSOCIATIONS—Total resources show new gains Total resources of the 2,464 insured associations were $5,036,000,000 a t the close of January, an increase of $23,000,000 over December. Governmentshare investments were reduced $8,000,000 b y repurchases of Treasury and HOLC shares in the associations during the month, and Federal Home Loan Bank advances outstanding declined over $20,000,000 while other borrowings were also down. However, insured associations increased their private repurchasable capital accounts by $72,000,000 during the month, bringing their capital balance to $4,400,000,000. At the beginning of 1945 these associations had $328,000,000 in their general reserves and undivided profits accounts. These reserve accounts made up 6.5 percent of the total resources. [TABLE 13.] FEDERAL SAVINGS AND L O A N ASSOCIATIONS [Dollar amounts are shown in thousands] Item and period UninAll inNonAll asso- sured as- sured memciations sociations members bers Share investments: January 1945 January 1944 Percent change $236, 567 $195, 077 $25, 004 $16, 486 188, 012 153, 276 21, 888 12, 848 + 27 + 14 '+28 + 26 Repurchases: January 1945 January 1944 _ Percent change.. _. $154, 978 $123, 943 $17, 316 $13, 719 133, 745 104, 839 17, 607 11, 209 + 21 -2 + 18 + 16 Repurchase ratio (percent): January 1945 January 1944. 65.5 71. 1 63.5 68.4 69.3 80.4 83.2 87. 9 A record amount of approximately $237,000,000 was invested by the public in the shares of all savings and loan associations during the opening month of 1945, almost $49,000,000, or 26 percent, more than the $188,000,000 of new private capital invested in the same month of 1944. Share repur- Progress in number and assets of Federals [Dollar amounts are shown in thousands] F L O W OF PRIVATE REPURCHASABLE CAPITAL 180 At the close of January, the 1,464 Federal associations had resources of $3,178,000,000. Private capital accounts were increased $45,500,000 during the month while $6,600,000 of Government-share capital was repurchased and Federal Home Loan Bank advances outstanding were reduced by $18,400,000. General reserves and undivided profits aggregated $184,000,000, or 5.8 percent of total resources. Number Class of association New Converted. _ Total Jan. 31, Dec.31, 1945 1944 633 831 Approximate assets Jan. 31, 1945 Dec. 31, 1944 633 $1, 077, 087 $1, 074, 521 831 2, 101, 045 2, 094, 210 1,464 1,464 3, 178, 132 3, 168, 731 Federal Home Loan Bank Review Table 1 . — B U I L D I N G A C T I V I T Y — E s t i m a t e d number and valuation of new family-dwelling units provided in all urban areas in January 1945, by Federal Home Loan Bank District and by State [Source: U. S. Department of Labor] [Dollar amounts are shown in thousands] All residential s t r u c t u r e s N u m b e r of familydwelling u n i t s Federal H o m e Loan B a n k District and State J a n . 1945 J a n . 1944 J a n . 1945 J a n . 1944 J a n . 1945 5,046 11,016 $14,185 $32,084 4,308 7.234 $12,142 $23,147 20 61 87 142 20 32 87 86 8 36 9 14 39 76 33 32 8 16 39 53 9 14 39 32 39 9 2 Delaware - _ N o . 4—Winston-Salem _ . _ . - - Alabama District of C o l u m b i a Florida -- - Maryland N o r t h Carolina S o u t h Carolina Virginia . - - - - N o . 5—Cincinnati Kentucky Ohio Tennessee _ . .- N o . 6—Indianapolis - - - - - _. Indiana - N o . 7—Chicago - Illinois Wisconsin - - N 0 - 9_Little Rock Arkansas _ Louisiana Mississippi.. N e w Mexico Texas _ _ .. N o . 11—Portland Idaho _ Montana Oregon _ Utah__ Washington Wyoming . - _ . . ... March 1945 . _ . _ 46 89 418 451 114 333 7 5 14 89 23 29 57 333 25 347 60 1,351 25 304 60 1,240 12 13 343 4 36 24 1,347 4 12 13 300 4 36 24 1,236 4 991 559 2,778 1,135 839 461 2, 362 916 91 103 480 95 4 96 37 85 63 55 254 42 39 15 84 91 312 1,473 217 11 319 50 305 78 90 506 43 114 9 2 293 91 23 416 95 4 96 29 85 j 63 1 254 42 39 15 7 40 91 88 1,306 217 11 319 25 305 78 1 506 43 114 9 2 163 165 772 571 2,866 120 683 370 2,291 16 60 89 10 503 259 41 304 226 11 2.148 707 4 35 81 6 418 259 9 159 202 1 1,583 707 277 1,291 1,310 4,976 277 603 1,310 2,895 69 208 108 1,183 258 1,052 309 4,667 69 208 58 545 258 1,052 224 2,671 372 1,069 1,697 - 366 6 998 71 1,671 26 - 91 52 266 145 72 52 230 145 - - 30 31 24 1 5 5 137 46 1 1 78 132 17 2 1 137 1 23 31 16 1 1 5 46 85 132 42 2 5 1,288 90 125 109 56 908 2,666 125 513 216 123 1,689 1, 835 128 211 100 60 1,336 5,750 335 948 423 254 3,790 1,271 90 125 104 56 896 1, 712 119 113 36 3 1,441 1,804 128 211 98 60 1,307 3,811 329 315 10 15 3,142 308 280 24 40 72 144 978 769 65 134 262 308 203 232 598 158 139 83 75 42 33 53 24 40 72 96 627 260 158 139 70 719 65 134 262 258 448 5 103 142 21 170 7 4,018 1,310 103 10 338 44 750 65 1,661 14 240 682 81 630 14 332 .. - . . _ .' 107 211 229 .. _. _ . 176 42 33 57 . .. _ N o . 12—Los Angeles Arizona.. _. California . . . Nevada _. _. . 390 215 14 _ _ . . __ _ _ __. . _ . . . . _. _ _ ... 52 1,700 50 - _ ... .. ... . ... _ .... 103 1,750 _ -- .. 12 1,015 96 N o . 10—Topeka Colorado Kansas Nebraska Oklahoma 447 1,111 . _ 869 387 _. - 135 373 14 . ._ ._ 1 2 318 261 -_ - - _ 1 9 222 39 - - N o . 8—Des M o i n e s 3 J a n . 1944 - - - - -. . _ Iowa __ Minnesota Missouri North Dakota . South Dakota - Permit valuation J a n . 1944 3 N o . 3—Pittsburgh N u m b e r of familydwelling u n i t s P e r m i t ^valuation J a n . 1945 9 N o . 2—New Y o r k All p r i v a t e 1- a n d 2-family structures ' 366 33 7 116 11 186 13 936~ 79 848 9 90 3,813 115 3,010 255 2,726 29 11, 092 ~ 205 10, 661 226 33 7 104 11 164 13 908~| 79 820 9 277 5 3 92 21 149 7 27403"" 42 2,346 15 1 1, 230 103 10 283 44 725 65 2T94T| 1 157 14 8 457 81 583 14 77800 255 2,657 29 91 7 703 6 181 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 of the United States [Source: U. S. Department of Labor] [Dollar amounts are shown in thousands] N u m b e r of family-dwelling u n i t s T y p e of c o n s t r u c t i o n A n n u a l totals M o n t h l y totals J a n . 1945 P r i v a t e construction 1-family dwellings . ... 2-family dwellings * _ ._ _ 3- a n d more-family dwellings 2 _. D e c . 1944 «• J a n . 1944 * 1944 ^ M o n t h l y totals 1943' J a n . 1945 A n n u a l totals D e c . 1944 ' J a n . 1944 r 1944 r 1943' 5,046 4,969 8,222 93,193 119, 714 $14,185 $13, 817 $26, 032 $287, 265 $374, 261 4,095 213 738 3, 953 568 448 6,257 977 988 71, 298 9,908 11. 987 78, 750 16, 234 24, 730 11, 562 580 2,043 11, 291 1,390 1,136 20. 073 3,074 2,885 220, 245 32,134 34,886 260,155 45, 560 68, 546 P u b l i c construction T o t a l u r b a n construction Permit valuation 0 3,076 2,794 21, 622 89, 916 0 7,882 6,052 54, 268 195,666 5,046 8,045 11,016 114, 815 209, 630 14,185 21, 699 32,084 341, 533 569,927 r Revised. 1 Includes 1- and 2-family dwellings combined with stores. 2 Includes multi-family dwellings combined with stores. Table 3. - B U I L D I N G COSTS—Index of building costs for the standard house in representative cities in specific months 1 [Average month of 1935-1939=100] 1944 1945 Federal H o m e Loan Bank District a n d city Feb. No. 3—Pittsburgh: W i l m i n g t o n , Del.* Philadelphia, Pa.*.. Pittsburgh, Pa C h a r l e s t o n , W . Va.* Wheeling, W . Va N o . 5—Cincinnati: Louisville, K y . * C i n c i n n a t i , Ohio Cleveland, Ohio* C o l u m b u s , Ohio Memphis, Tenn.* N a s h v i l l e , Tenn_ . Aug. May Feb. 1942 1941 1940 1939 Feb. Feb. Feb. Feb. Feb. 134.9 149.7 134.2 141.8 134.2 150.0 134.0 140.9 129.7 133.4 148.5 133. 5 122.5 129.7 129.2 138.8 r 130.7 122.0 122.1 131.0 137.1 ' 118.6 116.2 116.4 108.4 118.4 r 110.2 108.7 106.0 97.0 105.8 r 101.7 101.9 104. 3 103.7 102.0 r 105. 0 102.3 102.1 140.2 138.1 140.5 134.6 147.8 127.8 138.0 139.5 133.9 142.6 129.6 138.1 130.6 133.4 131.2 139.5 129.7 138.1 127.9 127.7 r 119. 1 128.3 117.6 126.1 121.4 122.9 111.1 125.1 115.7 124.8 120.4 116.9 100.3 110.5 104.3 116.8 107.9 104.1 96.7 106.9 101.4 103.7 97.0 100.8 96.3 101.1 99,4 104.7 99.0 138.4 141. 9 137.2 127.3 138.5 141.7 137.2 127.3 138.1 141.2 137.2 127.3 126.4 126.8 126.7 137.6 141.2 136.8 130.1 136.0 123.6 137.6 135.4 141.3 132.3 130.0 136.0 123.1 137.8 134.6 131.3 123.4 116.0 129.0 116.2 128.5 127.9 128.5 122.6 115.4 134.3 119.5 132.6 111.8 121.1 113.5 99.8 115.7 106.3 113.4 r 103.9 104.8 105.4 98.6 94.6 101.0 96.4 r 101.6 102.2 105.1 102.6 98.3 100.6 101.5 _ 116.8 155.0 116.5 151.3 116.5 148.9 114.5 148.2 114.9 146.5 111.4 130.9 . __ 132.9 132.9 133.0 127. 5 124.6 119.2 110.3 114.9 124.1 118.9 116.1 103.9 101.6 106.4 103.3 109.0 99.0 95.4 95.0 102.4 105.0 98.3 98.2 101.4 103.8 102.3 . . 134.9 151.4 134.9 151.1 142.5 142.6 130.5 141.0 _ .. __ ... 147.9 ... N o . 9—Little R o c k : L i t t l e R o c k , Ark.* N e w Orleans, La.* Jackson, Miss. * Albuquerque, N. Mex.*._. . . . Dallas, Texas H o u s t o n , Texas* ___ ._ . San A n t o n i o , T e x a s . N o . 12—Los Angeles: P h o e n i x , Ariz.* Los Angeles, Calif.* S a n Diego, Calif San Francisco, Calif Reno, Nevada* Nov. 1943 ... 142.6 138.0 .. _ ... *Indexes of February 1941 and thereafter have been revised in order to use retail material prices collected by the Bureau of Labor Statistics. Revised. 1 This index is designed to measure the changes in the costs of constructing a standard frame house and to provide a basis for the study of the trend of costs within an individual community or in different cities. The various units of materials and labor are selected in accordance with their contribution to the total cost of the completed dwelling. Material costs are based on prices for a limited bill of the more important items. Current prices are furnished by the Bureau of Labor Statistics and are based on information from a group of dealers in each city who report on prices for material delivered to job site, in average quantities, for residential construction. Because of wartime conditions, some of the regular items are not available at times and, therefore, substitutions must be made of similar products which are being sold. Labor costs are based on prevailing rates for residential construction and reflect total earnings, including overtime and bonus pay. Either union or nonunion rates are used according to which prevails in the majority of cases within the community. Figures presented in this table include all revisions up to the present time. Revisions are unavoidable, however, as more complete information is obtained. Cities in F H L B Districts 2, 6,8, and 11 report in January, April, July and October of each year; those in Districts 3, 5, 9 and 12 report in February, May, August and November; and those in Districts 1, 4, 7 and 10 report in March, June, September and December. r 182 Federal Home Loan Bank Review Table 4 . — B U I L D I N G COSTS—Index of building costs for the standard house [Average month of 1935-1939 = 100] J a n . 1945 Dec. 1944 N o v . 1944 Oct. 1944 Sept. 1944 A u g . 1944 J u l y 1944 J u n e 1944 M a y 1944 A p r . 1944 M a r . 1944 F e b . 1944 J a n . 1944 E l e m e n t of Cost Material Labor Total 131.7 140.3 r 131.5 r 140.3 131.5 r 140.1 r 131.3 ' 139.1 131.2 138.5 131.3 137.3 131.0 137.3 130.7 137.5 130.3 137.3 129.7 137.0 129.1 136.8 128.8 136.5 127.8 136.1 134.6 ' 134.5 r 134.4 r 133.9 133.7 133.3 133.1 133.0 132.7 132.2 131.7 131.4 130.6 r Revised. Table 5 . — B U I L D I N G COSTS—Index of wholesale prices of building materials in the United States [1935-1939=100; converted from 1926 base] [Source: U. S. Department of Labor] All b u i l d i n g materials Period 1943: J a n u a r y 1944: J a n u a r y February March.. April... May June.. July.. August September October... November December 1945: J a n u a r y . . . _ _. _____ _ _ _ _.- _ _-_ P e r c e n t change: J a n u a r y 1945-December 1944 ._' J a n u a r y 1945-January 1944 _ .. . _ . _. Brick a n d tile Lumber Cement Paint and paint materials Plumbing and heating Structural steel Other 122.6 108.6 103.4 150.3 123.7 118.8 103.5 110. 5 126.7 126.9 127.5 128.6 129.2 129.4 129.4 129.5 129.5 129.9 130.0 130.0 110.3 110.2 110.4 110.4 110.6 110.7 110.8 110.8 111.7 115.3 115.6 115.9 102.7 102.7 102.7 103.1 105.8 105.8 105.8 105.8 106.3 107.0 107.2 107.0 164.4 165.3 167.8 170.8 171.5 171.5 171.7 171.9 171.5 171.3 171.3 171.3 127.2 127.7 128.4 128.4 128.7 130.0 129.7 129.7 129.7 130.3 130.7 130.7 120.6 120.6 120.6 120.6 121.4 121.4 121.4 121.4 121.4 121.4 121.4 121.4 103.5 103.5 103.5 103.5 103.5 103.5 103.5 103.5 103.5 103.5 103.5 103.5 111.2 111.2 111.2 111.2 111.4 111.4 111.5 111.6 111.7 111.7 111.7 111.7 130.4 121.5 106.9 171.3 130.7 121.4 103.5 111.9 +0.3 +2.9 +4.8 +10.2 -0.1 +4.1 0.0 +4.2 0.0 +2.8 0.0 +0.7 0.0 0.0 +0.2 +0.6 Table 6 . — M O R T G A G E LENDING—Estimated volume of new home-mortgage loans by all savings and loan associations, by purpose and class of association [Thousands of dollars] P u r p o s e of loans Class of association Period 1943 January.- _ _ . . 1944 January February March. April May June July August September October November December 1945 January.- __. __ _ _ .- __ _ _._ MarcA 7945 _ Total loans Construction H o m e purchase Refinancing Reconditioning L o a n s for all other purposes $106,497 $802, 371 $167, 254 $30,441 $77, 398 $1,183,961 $511, 757 $539, 299 7,173 32,820 11,408 1,667 4,788 57,856 23, 390 26,910 7,556 95, 243 1,064, 017 163,813 30, 751 100, 228 1, 454, 052 669, 433 648,670 135,949 7,872 11,195 9,127 13, 484 7,338 9,663 7,078 7,589 5,923 6,095 4,635 5,244 55, COO 66,138 81, 846 85. 568 98, 872 103, 276 93, 232 105, 050 101, 884 101, 461 90,182 81, 508 9,976 11,965 14, 422 13, 491 14, 415 14,963 13, 871 14,152 14, 495 15, 253 13, 265 13, 555 1,521 1,960 2,266 2,679 2, 967 2,957 2,841 3,067 3,160 2,699 2,507 2,127 6,609 6,916 8,469 7,421 8,931 9,850 8,014 8,816 8,993 9,720 7,785 8,704 80, 978 98,164 116,130 122, 643 132, 523 140,709 125,036 138, 674 134, 455 135, 228 118,374 111,138 37,076 44,144 53, 883 57, 045 59, 229 64,474 57,164 64,400 63, 489 61, 965 54,978 51, 586 35,456 44,139 50, 686 54, 212 60,141 63, 851 56, 539 61, 377 59,162 60, 945 52, 241 49,921 8,446 9,881 11 561 11,386 13,153 12, 384 11, 333 12, 897 11,804 12 318 11 155 9,631 3,772 77, 395 11, 267 1,868 7,999 102,301 46,439 46,452 9,410 Federals State members Nonmembers $132,905 183 Table 7.—LENDING—Estimated volume of new loans by savings and loan associations Table 8.—RECORDINGS—Estimated nonfarm mortgage recordings, $20/000 and under [Dollar amounts are shown in thousands] JANUARY 1945 [Thousands of dollars] C u m u l a t i v e n e w loans (12 m o n t h s ) N e w loans Federal H o m e Loan Bank District a n d class of association January 1945 December 1944 January 1944 1944 1943 Percent change F e d e r a l H o m e Savings I n s u r a n d loan ance Loan B a n k associacomD istrict tions panies and S t a t e UNITED $102, 301 $111,138 $80,978 $1, 454,052 $1,183,961 U N I T E D STATES +22.8 46, 439 46, 452 9,410 51, 586 49,921 9,631 37,076 35, 456 8,446 669, 433 648, 670 135,949 511, 757 539,299 132,905 -_ 6,852 8,316 5,571 106,780 98,773 +8.1 FederaL. State member Nonmember 2,447 3,656 749 3,327 4,021 968 1,812 2,678 991 40, 898 52, 504 13, 378 28, 768 54, 266 15, 739 +42.2 -3.2 -15.0 9,483 11, 590 6, 517 133, 035 89, 296 +49.0 3,259 4,555 1,669 4,126 5,971 1,493 •1,654 3,398 1,465 43, 253 68,146 21, 636 22, 961 46, 028 20, 307 +88.4 +48.1 +6.5 8,608 10,104 7,004 123,055 101, 098 +21.7 3,952 3,169 1,487 4,960 3,302 1,842 3,122 2,444 1,438 56,972 41,872 24,211 40, 900 33, 252 26,946 +39.3 +25.9 -10.1 13, 329 13, 702 9,944 171, 441 143,218 +19.7 7,139 5,428 762 6,740 6,141 821 4,984 4,298 662 89,135 71,861 10, 445 72, 997 56, 804 13, 417 +22.1 +26.5 -22.2 15, 071 17, 231 13, 543 249, 679 212, 964 +17.2 6,148 7,814 1,109 7,188 8,752 1,291 5,502 6,861 1,180 104, 716 124, 925 20,038 83,070 113,232 16, 662 +26.1 +10.3 +20.3 Federal State member Nonmember Boston New York Federal .__ State m e m b e r - . . _ Nonmember Pittsburgh . _ Federal State member Nonmember Winston-Salem Federal State m e m b e r . Nonmember Cincinnati- _. __ _ Federal State member Nonmember Indianapolis _ __ __ Federal __ State member Nonmember Chicago Federal State m e m b e r Nonmember. _ Des Moines Federal State member Nonmember Little Rock FederaL State m e m b e r . . N o n m e m b e r . _.:___ Topeka F e d e r a l __ _ _. State member N o n m e m b e r . . . __ Portland Federal ._ S t a t e m e m b e r . __ _ Nonmember Los A n g e l e s . . _ . FederaL State member Nonmember 184 _ +30.8 +20.3 +2.3 STATES... Boston Connecticut Maine Massachusetts.. New HampshireR h o d e I s l a n d - _Vermont New York, . _ - New Jersey... New York Pittsburgh.... 5,616 6,001 4,261 81,198 70, 442 +15.3 2,781 2,517 318 3,244 2,521 236 2,187 1,928 146 40, 339 37,159 3,700 36,149 30, 433 3,860 +11.6 +22.1 -4.1 9,886 12, 349 8,057 163, 857 119, 363 +37.3 3,954 4,982 950 5,239 6,020 1,090 3,186 3,908 963 68, 405 81, 701 13, 751 46, 551 58, 878 13, 934 +46.9 +38.8 -1.3 6,108 6,779 3,711 91, 443 66, 706 +37.1 2,689 2,432 987 3,393 2,489 897 1,991 1,313 407 47, 686 31,989 11, 768 33, 970 23,320 9,416 +40.4 +37.2 +25.0 6,426 5,118 4,624 75, 042 61,133 +22.8 3,195 3,160 71 2,569 2,474 75 2,005 2,569 50 32,940 41,193 909 25, 048 35, 066 1,019 +31.5 +17.5 -10.8 6,213 5,226 3,804 70,149 57, 371 +22.3 3,265 1,900 1,048 3,006 1,520 700 1,882 1,019 903 37, 264 19, 570 13,315 31, 898 16, 672 8,801 +16.8 +17.4 +51.3 3,956 3,745 2,576 47,196 44, 624 +5.8 2,432 1,379 145 2,269 1,355 121 1,727 699 150 30, 422 15,133 1,641 27, 652 15, 059 1,913 +10.0 +0.5 -14.2 10, 753 10,977 11,366 141,177 118, 973 +18.7 5,178 5,460 115 5,525 5,355 97 7,024 4,251 91 77, 403 62, 617 1,157 61, 793 56, 289 891 +25.3 +11.2 +29.9 Banks and trust companies Mutual Indisavings viduals banks 8,363 951 550 5,480 293 914 175 350 269 13 58 10 3,047 1,034 219 1,005 126 594 69 5,935 963 612 3,302 429 375 254 9,030 3,618 5,412 1,463 622 841 5,220 3,049 2,171 8,412 1, 792 98 1,342 352 5,585 2,141 25,421 1,535 515 2,610 305 442 178 701 65 1,052 20 289 14 5,453 1, 974 13, 507 1,183 2,614 690 5,079 548 4,531 12, 642 3,544 9,098 5,390 2,335 3,055 38,824 13,716 25,108 6,293 132 5,019 1,142 383 23 360 5,322 202 4,517 603 2,741 75 2,497 169 24,943 714 21, 244 2,985 103 13,498 822 4,666 298 39, 922 1,238 4,947 1,362 1,256 1,305 715 1,853 563 1,679 485 243 567 282 549 5,540 9,350 4,814 5,782 4,730 1,958 5, 589 4,678 290 3,725 663 3,944 95 1,356 2,493 36, 309 3,365 28,110 4.834 33 33 3,150 1,086 2,064 2,050 712 1,338 19,873 8,494 11, 379 6,378 3,849 2,529 6,913 6,403 510 29,868 22,115 7, 753 4,426 694 1,026 2, 351 180 175 6,760 478 1,354 436 220 4,272 4,799 2,303 621 441 1,434 3,184 177 619 2, 350 18 20 2,722 36 272 112 17 2,285 21,163 3,882 5,637 10, 530 546 568 21, 670 1,402 3,958 1,196 438 14, 676 1,466 542 203 188 533 15,869 4,460 3,435 2,327 5,647 3,668 386 295 1,535 227 1,025 200 28, 294 1, 980 158 44 315 186 1, 240 37 13,601 1,025 691 3,319 1 475 6,546 545 11, 210 89 11, 099 22 67,115 1,966 64,647 502 184 7,509 719 Winston-Salem... 14,013 Alabama District of Columbia Florida Georgia . . . Marvland. North Carolina. South Carolina. Virginia 465 2,164 222 5,478 352 2,626 1,552 1,685 3,267 1,905 362 2,151 216 434 236 128 588 221 119 897 738 1,046 785 365 378 917 103 18,410 1,873 15,999 538 1,399 257 630 512 7,479 399 850 6,001 628 399 5,891 3,606 2,285 2,017 631 1,386 6,732 10,795 967 700 267 4,808 3,053 1,755 7 1,776 121 628 977 26 24 2,523 72 224 99 5,187 1,302 1,049 2, 540 102 194 1,653 299 186 219 75 874 117 . __ Indiana . _ Michigan Chicago Illinois. Wisconsin .. 8,110 2,685 Des Moines.. Iowa.. _ . . . Minnesota Missouri North Dakota. . South D a k o t a . . . L i t t l e Rock Arkansas Louisiana . . . Mississippi N e w Mexico Texas ... .. Topeka Colorado Kansas . _ Nebraska _ Oklahoma Portland Idaho .. Montana .. Oregon Utah Washington Wyoming 6,473 1,588 2,198 2,312 220 155 8,012 517 1,922 330 126 5,117 7,089 Los Angeles Arizona California Nevada . . Total $111,480 $17,882 $65,109 $12, 500 $99, 200 $48,407 $354, 578 D e l a w a r e . ._ . Pennsylvania.._ West Virginia... Cincinnati Kentucky Ohio Tennessee Other mortgagees 1,110 2,034 1,119 2,826 3,720 280 200 1,021 363 1,734 122 11,272 267 10, 919 86 2,128 676 61 94 277 244 433 41 50 138 113 91 2,322 27 2,288 7 2,426 4,306 1,839 444 483 302 610 3,356 160 102 268 586 2,054 186 14,017 405 13, 513 99 7 117 444 42 402 1,178 26, 828 288 2,159 Federal Home Loan Bank Review Table 9 . — M O R T G A G E RECORDINGS—Estimated volume of nonfarm mortgages recorded [Dollar a m o u n t s are shown in t h o u s a n d s ! Savings a n d loan associations Banks and trust companies Insurance companies M u t u a l savings banks Individuals Other mortgagees All mortgagees Period Percent Total 1944 January. February March April _May June . July August. September October November December.. „ -. __ Percent Total Total Total Percent Percent Total Percent Total Total Percent Percent $1,563,678 33.9 $256,173 5.6 $877, 762 19.0 $165, 054 3.6 $1,134,054 24.6 $613,908 13.3 $4, 610, 629 100.0 89, 887 101, 705 121, 210 127,429 139, 748 145,893 138, 762 149, 835 146,151 148,131 134,359 120, 568 29.8 32.8 32.9 34.5 34.5 34.6 33.7 34.8 35.1 35.0 34.1 33.5 20, 585 18, 753 22,660 19, 671 21, 794 22, 215 24, 707 22,646 22,432 20,985 20, 543 19,182 6.8 6.1 6.1 5.3 5.4 5.3 6.0 5.2 5.4 5.0 5.2 5.3 62.180 60, 346 70, 570 72, 438 79,083 79,453 80,858 83,094 77, 000 76.181 71, 752 64, 807 20.6 19.5 19.2 19.6 19.5 18.8 19.7 19.3 18.5 18.0 18.2 18.0 9,731 9,294 11, 255 12, 338 14, 882 15, 536 15,261 15,920 15, 447 16,552 15,176 13, 662 3.2 3.0 3.1 3.4 3.7 3.7 3.7 3.7 3.7 3.9 3.9 3.8 72,600 72, 246 89,136 89, 466 95, 730 99,140 98,194 104,215 104,479 109,767 103,513 95, 568 24.0 23.3 24.2 24.2 23.6 23.5 23.9 24.2 25.1 26.0 26.3 26.5 46,966 47, 300 53, 409 47, 926 53.858 59,394 53, 354 55,066 50, 676 51, 223 48, 296 46, 440 15.6 15.3 14.5 13.0 13.3 14.1 13.0 12.8 12.2 12.1 12.3 12.9 301, 949 309, 644 368, 240 369, 268 405, 095 421,631 411,136 430, 776 416,185 422.839 393,639 360, 227 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 111,480 31.4 17,882 5.0 65,109 18.4 12, £00 3.5 99, 200 28.0 48, 407 13.7 354, 578 100.0 1945 January. _. Toble 10—SAVINGS—Sales of war bondsJ Table 1 1 . — F H A — H o m e mortgages insured x [ T h o u s a n d s of dollars] [ P r e m i u m p a y i n g ; t h o u s a n d s of dollars] Redemptions Series G Total $652,044 $2, 516,065 $9,156,958 $245, 547 10,344,369 745,123 2,639,908 13,729,402 1, 506, 894 12, 379, 891 1,084,637 2,102,345 ' 575,714 March 605,709 April.. 624, 253 May ...... 1,349,794 June_. 1,686, 509 July. 499,357 August.* 590,827 September 598, 570 October November 806,817 1,855, 300 December 772, 767 126,825 157,422 22,933 19,306 15,287 115,119 101,082 17,807 15,953 13,653 42,680 124, 669 2,891, 427 486,942 521,702 110,347 113, 528 111, 088 377,284 337,459 85,272 85, 286 82,871 173,858 405, 880 16, 044,085 1,698,404 2,781,469 709,054 738,543 750, 628 1,842,197 2,125,050 602,436 692, 066 695,094 1,023,355 2, 385, 849 13, 263,168 180, 965 177, 980 261, 649 230,614 271, 597 241, 278 220,145 272,125 277.445 394,846 376,053 358, 572 Period Series E Series E 1942 $5,988,849 1943 Series F Title II Period New 1944 January 1944: J a n u a r y February... March April. May June July August September . October November. _ December... 1945: J a n u a r y Existing Title VI (603) $592 249 250 130 81 81 82 90 79 40 54 31 $18,397 13,795 12, 729 13, 200 18,319 17, 768 18,322 20, 256 19, 967 21,941 21,646 18, 269 $49,003 40, 616 41,620 36,793 37, 739 34, 238 42,322 48,166 42,592 43,354 38,053 36, 573 67 19, 006 38,640 Total insured at end of period l $5,385,115 5,439, 775 5,494, 374 5, 544, 497 5, 600, 636 5,652,723 5, 713, 449 5, 781, 961 5,844,599 5,909,934 5, 969, 687 6,024,560 i, 082, 273 1945 803, 819 January.. 42, 034 » XJ. S. T r e a s u r y W a r Savings Staff. t h e U . S. T r e a s u r y . 228, 327 333,443 1, 074,180 A c t u a l deposits m a d e to t h e credit of i F i g u r e s r e p r e s e n t gross insurance w r i t t e n d u r i n g t h e period a n d d o n o t t a k e account of principal r e p a y m e n t s on previously insured loans. 2 Revised t o exclude a m o u n t s previously carried for T i t l e I , Class 3. C u r r e n t figures are c u m u l a t i v e from t h e origination of Titles s h o w n . Table 12.—FHL BANKS -Lending operations and principal assets and liabilities [ T h o u s a n d s of dollars] L e n d i n g operations J a n u a r y 1945 Principal assets J a n u a r y 31, 1945 C a p i t a l a n d principal liabilities J a n u a r y 31, 1945 Federal Home Loan Bank Repayments Boston New York Pittsburgh W inston-Salem Cincinnati Indianapolis Chicago Des Moines Little Rock Topeka Portland Los Angeles :.__ J a n u a r y 1945 (combined total) March 1945 Government securities Capital $2,391 2,692 3,179 3,436 3,660 1,920 5,193 3,900 1,126 607 1,161 6,518 $9,336 9,765 10, 265 6.460 5,727 8,995 16, 275 8,201 4,800 3,406 2,409 20,087 $2, 449 2,035 4, 353 2,235 2,041 1,463 4,311 1, 269 1,517 1,014 394 2,697 $11,011 29,477 8,772 9,502 26,019 13,240 12,866 13, 268 8,164 7,679 8,899 7,286 $20,043 27, 649 16, 811 17,832 26, 240 14, 721 23,062 13,036 12, 533 10, 717 8,602 16, 276 10, 946 35, 783 105, 726 25, 778 156,183 16, 94^ 130,563 30, 324 144,046 29, 240 148,482 28,949 1 Cashi $5,352 460 532 151 1,107 870 1,259 315 145 105 150 500 D e c e m b e r 1944 J a n u a r y 1944 Advances outstanding I n c l u d e s i n t e r b a n k deposits. 24, 452 2 Debentures $2,000 5,000 5,500 Member deposits Total assets J a n . 31, 19451 2,500 5,000 6,000 8,500 2,000 1,000 2,000 10, 500 $852 8,842 1,184 456 5,310 4,144 4,580 1,316 25 459 1,151 3,376 $22, 896 41,501 23, 511 18, 289 34,059 23,870 33, 650 22,857 14, 560 12,177 11, 755 30,160 207, 522 50,000 31, 695 289, 285 206, 468 66, 500 28,645 199, 708 64, 300 23, 291 ;, 012 C a p i t a l stock, s u r p l u s , a n d u n d i v i d e d profits. 185 Table 13—INSURED A S S O C I A T I O N S Progress of institutions insured by the FSLIC l [Dollar amounts are shown in thousands] Operations Period and class of association Number of associations Total assets New New mortgage private investloans ments Private * £ repur- ! V" 1 chases 'c n a s e ALL INSURED 1944: January February... March April May June July August September . October November.. December. _ 2,451 2,453 2,452 2,453 2,459 2,461 2,463 2,461 2,460 2,462 2,462 2,466 $4,218, 521 4, 287, 788 4, 327, 868 4, 374, 338 4,442,608 4, 583, 568 4, 619, 867 4,667,060 4, 713, 815 4,774,160 4,867,068 5,012,662 1945: January 2,466 5,035,626 76, 215 195,077 123, 943 63.5 1944: January February... March April May June July. August September.. October November.. December.. 1,467 1,467 1,466 1,466 1,466 1,465 1,466 1,465 1,464 1,465 1,464 1,464 2,637,410 2, 685,310 2, 709,897 2, 737,017 % 775,665 2,881,276 2,907,974 2,934,647 2, 961, 860 3,000, 365 3,059, 556 3,168, 731 37,076 44,144 53,883 57,045 59, 229 64,474 57,164 64,400 63, 489 61, 965 54, 978 51,586 100, 496 61, 545 68, 276 68, 549 72, 413 83, 856 101, 500 82,105 79,126 85, 297 75,372 93,400 68,509 37,548 36,182 30, 279 27, 676 25, 969 79, 735 40, 825 35, 570 33,746 32, 665 26,049 68.2 61.0 53.0 44.2 38.2 31.0 78.6 49.7 45.0 39.6 43.3 27.9 1945: January... 1,464 3,178,132 46,439 129,640 84,624 65.3 22, 628 29,020 33, 280 34, 299 38, 225 33, 280 36,141 39, 608 38,169 38, 677 33, 249 31, 822 52, 780 33, 286 36, 218 35,164 36, 636 36, 218 53, 718 44, 536 42.890 44, 641 39, b36 48.891 36, 330 22, 342 20, 511 18,113 16, 727 20, 511 40,614 23, 794 20, 532 20,973 19, 713 19, 936 68.8 67.1 56.6 51.5 45.7 56.6 75.6 53.4 47.9 47.0 49.7 40.8 29, 776 65,437 39, 319 60.1 $59,704 $153, 276 $104, 839 73,164 94, 831 59, 890 87,163 104, 494 56, 693 91, 344 103, 713 48, 392 97,454 109,049 44,403 105, 245 127, 945 46, 560 93, 305 155, 218 120,349 104,008 126,641 64,619 101,658 122,016 56,102 100,642 129,938 54, 719 88, 227 115,008 52,378 83, 408 142, 291 45, 985 68.4 63.2 54.3 46.7 40.7 36.4 77.5 51.0 46.0 42.1 45.5 32.3 FEDERAL STATE 1944: January February... March April May June July August September.. October November.. December.. 997 998 1,002 1,581,111 1,602,478 1,617, 971 1,637,321 1,666,943 1, 617,971 1, 711,893 1, 732, 413 1, 752,015 1, 773, 795 1,807,512 1,843,931 1945: January- 1,002 1,857,494 987 993 997 996 * Balance-sheet items, formerly shown each month, now appear only in the February, May, August and November issues of the REVIEW. Tables 1 4 and 15—now appear quarterly in the February, May, August and November issues of the REVIEW. The Dual Functions of Liquidity (Continued from p. 168) the strength of liquidity. Here rests the issue of public confidence in the security of its savings, insomuch as this is judged by immediate availability. Liquidity offers this the strongest support by allowing over-the-counter service. The second aspect of liquidity /as a counterdeflationary factor (to the[[extent*that it represents 186 a supply of funds available for new lending) carries with it certain other implications: The first of these rests in the basic difference between liquid assets of savings and loan associations and the liquidity reserves of banks, namely that the former do not constitute the basis for a compounding or pyramiding of credit. Thus, liquid assets by directly supplying credit needs lose their liquidity (except as collateral for F H L B advances) by being transferred to loan accounts. Therefore, this money may not serve the dual purposes in the same sense as do bank reserves. This consideration gives food for thought about the contingency of a post-war inflation, which, it is generally agreed, would bring inevitably a serious deflation in its wake. As a corollary to the foregoing thought, it would follow that if liquidity is an antidote in times of deflation, it must be potential dynamite in a period of inflation. Again looking at the record, while liquidity may feed an inflationary spiral, in so doing it is working its own destruction. Therefore, present signs of rising prices in residential realty merit particular concern, not only to avoid losses on current lending but also to scotch such a movement before it becomes completely unmanageable. The seeds of inflation are noticeable now. There is spotty evidence of its spread in all parts of the country. The broadening market for existing properties as revealed by the decline in institutionally held real estate, and gains made in the number of loans closed for the purchase of existing homes are also general indicators of the cumulative inflationary effects of curtailed civilian production. Local and regional surveys by both private and governmental organizations reveal a dangerous four-year increase in urban real-estate prices with indications that the upward trend is continuing in 1945. Price advances for residential property from 1940 to late 1944 vary from as little as 5 to 10 percent in a few communities to 75 to 100 percent in crowded urban centers of war production. I t is generally agreed that a severe post-war inflation would lead only to a calamitous deflationary counter-swing in the ensuing years. A precipitous deflation at any time may do irreparable damage to our entire economic structure. Neither extreme is inevitable, but holding the middle course between these poles will call for clear and steady thinking. [ I n maintaining economic equilibrium, liquidity [is bound to play a crucial role. Federal Home Loan Bank Review Table 17—GOVERNMENT SHARES Tabic 1 6 . — H O L C — M o r t g a g e loans outstanding and properties on hand Investments in member associations [Dollar amounts are shown in thousands] D u e on original loans Period D u e on property sold [Dollar amounts are shown in thousands] Treasury Properties owned B o o k value N u m b e r l Federals $1,803,477 $244, 752 $456,036 75, 796 1,613,830 326,990 333,332 50,863 1942: J a n u a r y 1,397,411 360, 541 272, 859 38, 599 1943: J a n u a r y 1,180, 723 365, 009 218,084 29, 393 939,852 921,987 902,923 885,304 856,889 847,180 828,977 810, 320 792,620 774,179 757,028 741, 656 378,248 377, 518 376,205 375,093 373, 732 373,732 370,059 366, 561 362,874 358, 541 354,117 349, 707 82, 571 73, 789 64,683 55, 456 45, 576 34,890 28, 771 23, 318 19, 009 15,641 12, 660 10, 701 11, 267 10,160 8,955 7,735 6,413 5,042 4,245 3,478 2,863 2,362 1,941 1, 659 724, 306 344, 311 9,157 1,446 1944: J a n u a r y February March, April May JuneJuly August - -. September^ October November . . December _ 1945: J a n u a r y . . . . . 1 H o m e O w n e r s ' L o a n Corporation T y p e of operation 1941: J a n u a r y 1940: J a n u a r y . . l October 1935-December 1944: Applications: Number Amount Investments: Number Amount .... Repurchases N e t o u t s t a n d i n g investments 2 | State members 1 Federals Total 1,862 $50,401 4,710 $213,701 995 $66,495 5,705 $280,196 1,831 $49,300 $45,811 4,243 $178,416 $151,966 738 $45, 441 $37, 340 4,981 $223,857 $189, 306 $3, 489 $26,450 $8,101 $34,551 0 0 0 0 0 0 0 0 0 $15 0 0 $77 0 0 $13 F o u r t h quarter—1944: Applications: Number Amount .. . Investments: Number . . . . . . . . Amount ... Repurchases ... _ o o o $90 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. Includes re-acquisitions of properties previously sold. Table 18.—FHLBS—Membership in the Federal Home Loan Bank System [Dollar amounts are shown in thousands] 1944 December T y p e of i n s t i t u t i o n No. All m e m b e r s Savings a n d loan associations _ Federal Insured state. U n i n s u r e d state . M u t u a l savings b a n k s I n s u r a n c e companies _ September Assets No. Assets 1943 1942 December December No. Assets No. Assets 3,699 $7, 265, 763 3,706 $6,945,108 3,748 $6, 345, 449 3,788 3,659 6,415,119 3,666 6,101, 752 3,705 5, 540,817 3,744 5,040, 521 1,464 998 1,197 3,168, 731 1,837,873 1, 408, 515 1,464 992 1,210 2,961.860 1, 745, 993 1, 393,899 1,466 977 1, 262 2, 617, 431 1, 559,617 1, 363, 769 1,467 927 1,350 2, 299,895 1,346,092 1, 394, 534 22 480, 221 22 473,198 22 441,617 21 398,810 18 370,423 18 370,158 21 363,015 23 326, 246 $5,765,577 Table 19.—FHA—Insured home mortgages (Titles II and V I ) held, by class of institution 1 [Thousands of dollars] Commercial banks M u t u a l savings b a n k s Savings a n d loan associations $2,074,739 2,409,197 $1,008,147 1,142,949 $117,851 149, 239 $208,218 224, 328 $431,527 541, 561 $182 327 201, 032 $126,669 150,089 _. 2, 754, 725 3,115, 616 1, 300, 734 1, 447,101 174,706 205, 748 237, 056 255,296 668,069 791, 617 220,400 233,628 153,760 182, 226 __ 3, 551, 421 3, 795, 519 1,614, 392 1,694,963 242, 619 263, 825 277, 704 288,611 966,441 1, 095,276 245, 206 251,871 205,059 200,973 4, 153,657 4, 308, 362 1,819, 942 1,894,913 301, 058 328, 041 319,147 345,938 1, 231, 638 1, 374, 570 259,495 116, 330 222, 377 248, 570 4, 514, 290 4, 555,672 1,929,054 1,919,999 371, 071 392,643 371, 947 379,482 1, 465, 561 1,495,245 133,042 134, 551 243, 615 233,752 C u m u l a t i v e t h r o u g h e n d of m o n t h Total 1940: J u n e _ December 1941: J u n e December. 1942: J u n e lt| December 1943- J u n e December __ - .. . „ _.. .- 1944: J u n e December _ Insurance companies Federal agencies 2 Others 3 i 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. a Includes mortgage companies, finance companies, industrial banks, endowed institutions, private and state benefit funds, etc. March 194S 187 FEDERAL HOME LOAN BANK DISTRICTS YOS* M _ $ BOUNDARIES OF FEDERAL HOME LOAN BANK DISTRICTS FEDERAL HOME LOAN BANK CITIES. OFFICERS OF FEDERAL HOME LOAN BANKS BOSTON CHICAGO B . J . R O T H W E L L , C h a i r m a n ; E . H . W E E K S , Vice C h a i r m a n ; W . H . N E A V E S , P r e s i d e n t ; H . N . F A U L K N E R , Vice P r e s i d e n t ; L . E . D O N O V A N , S e c r e t a r y - T r e a s u r e r ; P . A. H E N D R I C K , Counsel; B E A T R I C E E . H O L L A N D , Assistant Secretary. NEW C. E . B R O U G H T O N , C h a i r m a n ; H . G. Z A N D E R , J R . , Vice C h a i r m a n ; A. R . G A R D N E R , P r e s i d e n t ; J . P . D O M E I E R , Vice P r e s i d e n t ; L A U R E T T A Q U A M , Assistant T r e a s u r e r ; CONSTANCE M . W R I G H T , Secretary; G E R A R D M . U N G A R O , Counsel. YORK DES G E O R G E M A C D O N A L D , C h a i r m a n ; F . V . D . LLOYD, Vice Chairman; N U G E N T F A L L O N , P r e s i d e n t ; R O B E R T G. C L A R K S O N , Vice President; D E N T O N C. L Y O N , S e c r e t a r y ; H . B . D I F F E N D E R F E R , T r e a s u r e r . MOINES E . J . R U S S E L L , C h a i r m a n ; R . J . RICHARDSON, President-Secretary; W . H . LOHMAN, Vice President-Treasurer; J . M . M A R T I N , Assistant Secretary; A. E . M U E L L E R , Assistant T r e a s u r e r ; E M M E R T , JAMES, NEEDHAM & L I N D G R E N , Counsel. PITTSBURGH LITTLE ROCK E . T . T R I G G , C h a i r m a n ; C . S. T I F P E T T S , Vice C h a i r m a n ; R . H . R I C H ARDS, P r e s i d e n t ; G. R . P A R K E R , Vice President; H . H . G A R B E R , Secr e t a r y - T r e a s u r e r ; W I L L I A M S. B E N D E R , Counsel. WINSTON-SALEM B . H . W O O T E N , C h a i r m a n ; W . P . G U L L E Y , Vice C h a i r m a n ; H . D . W A L L A C E , President; J . C . C O N W A Y , Vice P r e s i d e n t ; R . T . P R Y O R , Secretary; W . F . T A R V I N , Treasurer. TOPEKA H . S. B A W O R T H , C h a i r m a n ; E . C . B A L T Z , Vice C h a i r m a n ; O. K . L A * B O C L E , President-Secretary; J o s . W . E O L T , Vice Preeident-Treasurer. W M . F . J A R D I N E , C h a i r m a n ; A. G. H A R T R O N F T , Vice C h a i r m a n ; C . A. STERLING, President-Secretary; R . H . B U R T O N , Vice President-Treasurer; J O H N S. D E A N , General Counsel. CINCINNATI PORTLAND HARRY S. K I S S E L L . C h a i r m a n ; W i t . MECRUE B R O C K , Vice C h a i r m a n ; W A L T E R D . S H U L T Z , P r e s i d e n t ; W . E . J U L I U S , Vice P r e s i d e n t - T r e a s urer; J . W . W H I T A K E R , Secretary; E . T . B E R R Y , Assistant Treasurer; T A F T , STETTINIUS & HOLI.ISTER, General Counsel. INDIANAPOLIS H . B . W E L L S , C h a i r m a n ; F . S. C A N N O N , Vice Chairman-Vice P r e s i d e n t ; F R E D T . G R E E N E , President-Secretary; G . E . O H M A R T , Vice P r e s i d e n t T r e a s u r e r ; H A M M O N D , B U S C H M A N N , R O L L & A L E X A N D E R , Counsel. B E N A. P E R H A M , C h a i r m a n ; H . R . G R A N T , Vice C h a i r m a n ; F H . J O H N S O N , President-Secretary; I R V I N G BOGARDUS, Vice PresidentT r e a s u r e r ; M r s . E . M . J E N N E S S , Assistant Secretary; V E R N E D U S E N BERY, Counsel. Los ANGELES D . G. D A V I S , C h a i r m a n ; C. A. C A R D E N , Vice C h a i r m a n ; C . E . B E R R Y , Vice P r e s i d e n t ; F . C . N O O N , Secretary-Treasurer; H E L E N F R E D E R I C K S , Attorney. S U B S C R I P T I O N P R I C E OF R E V I E W . 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 memberinstitutions 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 copiesordered from Superintendent of Documents, Government Printing Office, Washington 25, D. C. A P P R O V E D BY T H E BUREAU OF T H E B U D G E T . U. S . GOVERNMENT PRINTING O F F I C E : 1 9 4 5
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