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FEDERAL
HOME
LOAN
BANK
Vol.
13, No. 6
Washington, D. C.
MARCH 1947
IN THIS ISSUE
From the Commissioner
A Progress Report on Operations of the Bank System
A Year-End Statement on the Activities of the FSLIC
A Management Survey on Savings Campaigns
(Pari III)
ne HEVIEW- Brief
From the Commissioner
Commissioner F a h e y participated in a panel discussion of t h e
mortgage financing outlook a t t h e recent National Association of
H o m e Builders' convention in Chicago. He was requested, in advance,
t o express his opinions on two i m p o r t a n t questions of interest to F H L B
m e m b e r s : (1) mortgage interest rates a n d t h e r e t u r n on savings; a n d
(2) t h e sale of mortgages b y associations.
H e said, in p a r t : " I t h i n k present interest rates on home mortgages
are likely to hold during 1947 . . . . [they] are now too low to be
safe. . . . T h e men a n d women who save a few dollars a t a time . . . .
are n o t t o d a y receiving t h e consideration a n d encouragement t h e y
should h a v e . " On t h e sale of mortgages, he a d d e d : " P r e s e n t a u t h o r i t y
to sell u p to 25 percent . . . . is as liberal as it should be . . . . If
as m u c h as half of t h e business of m u t u a l institutions is merely buying
a n d selling mortgages, clearly t h e operation is m u c h different from
the encouragement of savings for which it has been generally assumed
t h e y were organized." [Page 167.]
Progress report on operations of the Bank System
Federal H o m e Loan B a n k System operations resulted in m a n y new
records being set during 1946. Aggregate assets of t h e 3,698 member
institutions passed $10 billion a t t h e year-end, while assets of t h e 11
F H L Banks also reached a n all-time high—$473 million. Increased
financing activity brought t h e balance of advances outstanding to a
peak of $293 million on December 3 1 .
An i m p o r t a n t improvement was m a d e last year in t h e procedure for
financing Bank System operations. T h e new method—Issuing notes
a n d bonds instead of consolidated debentures—permits more flexible
long-term financing a n d widens t h e issuing base. [Page 169.]
Year-end statement on the activities of the FSLIC
T o t a l resources of t h e F S L I C passed $176 million a t t h e end of
December while accumulated reserves a m o u n t e d to $73 million, or
a b o u t $1.16 for each $100 of insured liability.
T h e growth of insured associations in 1946 was greater t h a n in any
year in F S L I C history. Combined assets of these 2,496 institutions
t o t a l e d over $7.3 billion a t last year-end, representing only 40 percent
of t h e n u m b e r of all operating associations b u t 73 percent of their aggregate resources. In t h e past five years no insured association has
been placed in receivership; in two years none has required financial
assistance from t h e Corporation. [Page 173.]
January Highlights
The net gain in savings and loan
share capital ($140 million) was
55 percent above the same month of
last year a n d t h e largest on record
for this particular m o n t h . T h e repurchase ratio also showed a substantial improvement over the same
1946 m o n t h .
The volume of savings and loan
lending declined slightly for t h e
t h i r d successive m o n t h . A drop in
home purchase loans more t h a n offset relatively small increases in other
loan categories.
In contrast, the volume of mortgage activity as evidenced by recordings by all lenders showed a slight
gain from December to January.
T h e savings and loan share of the
total volume dropped below t h e 30percent m a r k for the first t i m e since
t h e same m o n t h in 1944.
Building permits issued for privately financed nonfarm homes were
13 percent higher t h a n in t h e preceding m o n t h .
More 1- a n d 2family units accounted for t h e gain,
as permits for multi-family structures
showed a decline.
Construction cost indexes continued their u p w a r d trends.
The
index for t h e s t a n d a r d frame house
showed t h e largest m o n t h l y gain in
its history, reaching 168 percent of
t h e 1935-1939 average. T h e B L S
index of wholesale building material
prices was up 8 percent.
I n a virtually strike-free m o n t h ,
t h e F R B index of industrial production advanced 6 points to reach a
new peacetime peak.
MHHHHHHHHHI
A management survey on savings campaigns (Part III)
This article, concluding t h e series based on a survey of savings promotion campaigns of over 50 savings a n d loan associations, discusses
some special projects which have proved effective in a t t r a c t i n g new
funds needed for increased home financing activity.
Variations of t h e direct mail method ranked high, with best results
dependent on careful planning in building up lists and in t h e t y p e of
material distributed. An elaborate civic meeting, a payroll deduction
p r o g r a m and paid solicitation of savings featured some programs.
Institutional advertising in t h e form of special services provided by t h e
associations a n d goodwill gift items was also popular. [Page 177.]
733401—47
1
A M 4 a A
O N D >J
1947!
165
FEDERAL HOME LOAN BANK
Contents
Page
F R O M THE COMMISSIONER
167
PROGRESS REPORT O N OPERATIONS O F THE BANK
SYSTEM
Vol.13
169
YEAR-END STATEMENT O F THE ACTIVITIES O F THE
FSLIC
A
MARCH 1947
The Federal Home Loan Bank
Review is published monthly by
the Federal Home Loan Bank
Administration under the direction of a staff editorial committee.
This committee is responsible for
interpretations, opinions, summaries and other text, except
that which appears in the form of
official statements and signed
articles.
Communications concerning material which has been printed or
which is desired for publication
should be sent to the Editor of
the Review, Federal Home Loan
Bank Building, Washington 25,
D. C
•
•
•
The Federal Home Loan Bank
Administration assumes no responsibility for material obtained
from sources other than itself or
other instrumentalities of the Federal Government.
*
*
173
MANAGEMENT
SURVEY O N
SAVINGS C A M -
PAIGNS (PART III)
177
STATISTICAL D A T A
New family dwelling units
Building costs
Savings and loan lending
Mortgage recordings
Gl lending
F H A activity
Federal Home Loan Banks
Insured savings and loan associations
Share investments and repurchases
Quarterly tables
190-191
191-192
192-193
193-194
194
194
194
195
195
196
SPECIAL FEATURES
Directory changes of member, Federal and insured institutions
Proposed Amendment to Rules and Regulations
Worth repeating
News notes
Monthly survey
172
174
176
182
185
•
Contents of this publication are not copyrighted
•
NATIONAL HOUSING AGENCY
Raymond M. Foley, Administrator
FEDERAL H O M E L O A N BANK
ADMINISTRATION
John H. Fahey, Commissioner
SUBSCRIPTION P R I C E OF R E V I E W . — A copy of t h e R E V I E W is sent to each
member and insured institution without charge. To o t h e r s the a n n u a l subscription
price, which covers the cost of paper and printing, is $ 1 . Single copies will be sold
a t 10 cents. Outside of t h e United States, Canada, Mexico, and the insular possessions, subscription price is $1.60 ; single copies, 15 cents. Subscriptions and orders
for individual copies should be sent with remittances to the Superintendent
of
Documents, Government Printing Office, Washington 25, D. G.
APPROVED BY T H E BUREAU OF T H E BUDGET
166
Federal Home Loan Bank Review
FROM THE COMMISSIONER . . .
Commissioner Fahey was recently invited to participate in
a panel discussion
on the
mortgage financing outlook at
the convention of the National
Association of Home Builders
in Chicago. Two of the questions presented to him in advance of the meeting concerning which he was requested to
express his views are of vital
concern to Bank System members: (1) mortgage
interest
rates and the return on savings; and {2) the sale of home
mortgages by associations.
On mortgage interest rates . . .
•
. . . I think present interest rates on home
mortgages are likely to hold during 1947.
There are proposals for reductions on some types
of private rental housing loans. I doubt seriously
the advisability of cutting such rates. They
could easily have the effect of alarming executives
of lending institutions and restricting the amount
of money which would be made available.
Interest rates on long-term amortized home
mortgages, in my opinion, are now too low to be
safe. Management of unquestioned ability and
integrity is vital to the soundness and success of
our savings institutions. The vast majority of
them are managed by men of character who know
their business and who recognize their trustee
responsibility for the protection and conscientious
management of other peoples' money. These
executives are fairly well compensated in most
cases. There are far too many savings institutions of average size, however, which do not have
enough income from their mortgages at present
rates.
They cannot command the services of the kind
of men they need, provide necessary reserves to
cover inevitable losses, and also pay a reasonable
return to the millions of small savers who furnish
the great bulk of the money which builds our
homes. Men and women who save a few dollars
at a time are the owners of nearly all our savings
institutions, and they are not today receiving the
consideration and encouragement they should
have.
March 1947
I n response to public sentiment, Congress fixed
a mortgage rate of 4 percent on homes for veterans,
with a complete guarantee by the Veterans Administration against loss to the lending institution.
The law reflected the intent of the people of the
United States to favor the veteran as compared
with other borrowers and to do everything practicable to enable him to secure a worthwhile
home. We cannot disregard the fact, however,
that in too many cases lending institutions have
relied entirely on the Veterans Administration
guarantee and have not adequately protected
either the veteran or the public interest. Overlending has unquestionably stimulated real estate
speculation and an inflationary market.
I n my opinion it is unsafe and unwise to establish interest rates on long-term amortized mortgages for home owners generally below 5 percent.
As a result of the complete change of the home
mortgage pattern in this country since 1933, influenced by the Home Owners' Loan Corporation
longer-term loan with a flat 5 percent interest
rate, and the Federal Housing Administration insurance plan, the interest cost on home mortgages
to the average family has been nearly cut in half.
Second and third mortgages with their extreme
rates have been practically wiped out. The
resulting annual savings to home owners totals
hundreds of millions of dollars. As yet there has
been no savings to the home purchaser in any
other direction.
Except in unusual cases, like that of the veterans, while the interest on a long-term home loan
should not be less than 5 percent, the mortgage
may fairly include provision for a lower figure
when it has been reduced to 40 percent or 50
percent of the unquestioned value of the property
and there is no doubt as to the credit responsibility
of the borrower.
The great army of savers in the country who
furnish our home mortgage funds are now receiving
b u t 1 percent to about 2% percent on their money.
A limited number of institutions are paying 3
percent but it is a doubtful policy in view of the
low mortgage rates. Compared with the 3% percent to 4K and 5 percent formerly paid, the
present return is far from attractive. I think we
167
are in danger of discouraging thrift in this country
if we do not find a way to compensate our savers
more liberally. I see no prospect that we will
move in that direction in the near future. The
greatest opportunity for reducing the size of the
home mortgage and interest expense lies in making
really good houses available to more families by
cutting out the wastes and excessive costs which
have been so common in the past.
We should discourage attempts to take a few
more pennies out of the pockets of the people who,
through their mutual mortgage lending institutions, lend money to their neighbors and fellow
citizens to finance home ownership. As you know
so well—indeed as you have promised emphatically—price levels on homes can and will be
reduced. They must be if we are going to have the
large, sustained market and the kind of a construction industry we should have for the years ahead.
There never has been such an accumulation of
funds to finance sound construction of all kinds
at defensible prices, but right prices will determine
the rate of the monetary flow and its steady continuance.
On the sale of mortgages . . .
. . . On the question of the sale of home mortgages by Federal savings and loan associations, if
they need money to meet community needs, I
think their present authority to sell up to 25 per-
168
cent of the new mortgages they are making is as
liberal as it should be. When the Congress provided for Federal charters of mutual savings associations it intended that they should be examples
of the soundest methods of managing and protecting savings and making home mortgages. The
legislation did not contemplate that they should
become mortgage-brokerage concerns.
If a local mortgage lending institution is convinced that the mortgage it is making is safe and
sound, in my opinion it should retain it as an
earning asset for the benefit of its shareholders.
If to meet the demonstrated need of its community
it should have more funds than local savers can
provide, it can readily obtain additional money
from its district Federal Home Loan Bank.
If as much as half of the business of mutual
institutions is merely buying and selling mortgages, clearly the operation is much different from
the encouragement of savings for which it has
been generally assumed they were organized.
Among all classes of lending institutions, as
everyone familiar with conditions well knows, too
many doubtful mortgages have been made in
recent years in disregard of the safeguards which
should characterize long-term loans, solely because
the Government was in fact guaranteeing the
lender against loss. I think we need to get away
from that attitude rather than to encourage it
further.
Federal Home Loan Bank Review
A PROGRESS REPORT ON OPERATIONS
OF THE BANK SYSTEM
The assets of all members of the Federal Home Loan Bank System
reached $10 billion last year, as operations expanded to new
record levels. The progress in recent months indicates the increased use of Bank System facilities by member institutions.
•
T H E past year has been the most active one
which the Federal Home Loan Bank System
has experienced. During the year the member
institutions made mortgage loans for the purchase
or financing of homes of $3.3 billion, the Federal
Home Loan Banks made advances to members in
the amount of $329 million and received repayments of $231 million. Since the organization of
the Bank System, the Banks have made loans to
members amounting to approximately $2 billion.
Outstanding advances on December 31 were $293
million.
A significant milestone in the history of the
Federal Home Loan Bank System was passed
during 1946 when the resources of all member institutions passed $10 billion. Aggregate assets of all
members of the System were estimated a t $10.1
billion on last December 31—a gain of approximately a billion and a half dollars during the year.
Although this dollar increase was slightly larger
in amount than in the preceding year, the percentage gain was not quite as great as in 1945. At the
end of 1946 there were 3,698 institutions affiliated
with the Bank System—one more than the 1945
closing figure. These consisted of 3,661 savings
and loan associations, 25 mutual savings banks and
12 insurance companies. A net addition of three
savings and loan associations was partially offset
by the withdrawal of two insurance companies
during the year.
Assets of the 11 Federal Home Loan Banks also
reached a new high of slightly over $473 million.
The year-end total was more than 40 percent
above the same 1945 date.
Outstanding advances near $300 million
The record volume of home financing activity
by member institutions last year was reflected in a
substantial increase in the volume of Federal
Home Loan Bank advances. New advances of
March 1947
$329 million were made—more than those in 1940
and 1941 combined. A t the same time, repayments were also up to a new high of $231 million.
The net effect of these two operations was to
increase the balance of advances outstanding
from $195 million a t the beginning of the year to
$293 million at the year-end. This was the largest
year-to-year jump in outstanding advances in the
14 years of Federal Home Loan Bank System
operations.
Only two Banks (Boston and San Francisco)
had a smaller volume of advances outstanding a t
the end of 1946 than 12 months earlier. The
greatest monetary gain was $22.6 million (133
FEDERAL HOME LOAN BANK ADVANCES,
REPAYMENTS AND ADVANCES OUTSTANDING
ADVANCES OUTSTANDING
$'s Outstanding
IO-TOPEKA
4-WfNSTON-SALEM
16,606
6-INDIANAPOLIS
24,148
3-PITTSBUR6
29,136
8 - D E S MOINES
26,824
2 - N E W YORK
24,3 I 6
STATES
O
40
80
120
160
' ^J-^^LL^J^ ,»,J„
T
39,551
9 - L I T T L E ROCK
UNITED
PERCENT INCREASE 1946 OVER 1945
12-31-46 -40
(Thousands)
12,723
F.H.L.B. Districts
T^T
293,455
5-CINGINNAT!
24,462
7-CHICAGO
50,063
I-BOSTON
12,028
I I - S A N FRANCISCO
33,596
ADVANCES AND REPAYMENTS
UNITED STATES' TOTAL
FEB
MAR APR
MAY JUN
9
JUL AUG SEP OCT NOV
OEC.
OPERATING ANALYSIS DIVISION
FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION
169
Interest rates charged on FHLB advances
JANUARY 1, 1947
Federal Home
Rates *
Loan Bank
Type of advance
Perce,nt\
1H On advances, secured or unsecured, in amounts
not exceeding one-fourth of. member's line of
credit, for periods up to 1 year.
On advances for periods not to exceed 3 years.
2
2H On advances for periods up to 10 years.
New York.
On short-term advances.
On long-term advances for periods up to 5 years.
2
On long-term advances for more than 5 years.
Pittsburgh
On advances not exceeding 1 year; such advances
2
must be collateralized by either mortgages or
Government securities, the latter to be submitted through the custodianship agreement with
the Chase National Bank of New York or a
custodianship arrangement entered into by the
member with some other incorporated financial
institution.
2H On advances from 1 to 5 years, such advances to
be collateralized by either mortgages or Government securities.
On unsecured advances within certain limits.
Winston-Salem.
On all advances.
2
Cincinnati
iy2\ On advances not exceeding 1 year secured by (1)
Obligations of or guaranteed by the Government (2) Other acceptable collateral, advances
so secured not to exceed current redemption
price of Series F and G savings bonds held by
member.
All other advances.
Indianapolis
On advances for 1 year or less.
On advances in excess of 1 year during the first
2 years in which such advances are outstanding,
and 2 ^ % thereafter.
2H See above.
Chicago
On advances for periods up to 1 year.
2
On advances for periods in excess of 1 year and
2
up to 3 years.
2H| On advances for periods in excess of 3 years.
Des Moines__
2
On all advances.
Little Rock__.
2
On all advances.
Topeka
2
On advances not exceeding 5 years.
2H| On advances up to 10 years.
San Francisco
1M On advances not to exceed 3 years, repayable at
least 5% quarterly, the proceeds to be used to
retire HOLC or Treasury funds.
On all other advances.
Boston
members." I t is interesting to note that the
number of borrowers from the various regional
Banks was down about a third from the period
at the beginning of the war (December 1941).
The converse trend in advances outstanding (up
34 percent) during the intervening five years has
resulted in a substantial increase in the average
amount of money borrowed.
A slightly smaller proportion of the advances to
member institutions were on a secured basis at
the end of 1946 than at the close of the preceding
year. Approximately $230 million, or 79 percent,
were advances backed up by mortgages, U. S.
Government obligations, or other approved collateral having a face value of more than $440
million. Unsecured advances, all of which were
on a short-term basis, amounted to $63 million,
or about $1 out of every $5 of the total loans to
member institutions. At the end of 1945, secured
advances accounted for 82 percent of the total
amount outstanding.
The 1946 picture
Last year brought an important improvement
from the previous system of issuing consolidated
debentures for financing the Banks' needs for
additional operating funds. In October the Bank
Interest rates paid on time deposits
JANUARY 1,1947
1
Rates on advances to non-members are M percent higher, except Cincinnati which charges 1 percent more.
Bank
percent) in the Winston-Salem Bank, while the
Topeka Bank's 168-percent ($8 million) was the
largest percentage rise. For 7 of the 11 Banks,
the December 31 total represented the highest
balance for any month since their establishment.
These included the Pittsburgh, Winston-Salem,
Indianapolis, Chicago, Des Moines, Little Kock
and Topeka Banks.
Because the balance of advances outstanding
tends to vary widely over the period of a year,
the weekly average balance perhaps gives a better
indication of the expansion of business volume.
The 1946 weekly average of advances to members
was $206 million compared with slightly under
$100 million in 1945.
On December 31, 1946, about two out of every
five member institutions were making some use of
the credit facilities of the Bank System. At the
end of 1945, only one in four were " borrowing
170
Boston
_New York
Pittsburgh
_
W mston-Salem
Cincinnati
Indianapolis
Chicago __
__ ___
Des Moines
Little Rock
Topeka . San Francisco
Over 30
days
Over 45
days
Over 60
days
Over 90
days
Over 6
months
Percent
Percent
Percent
Percent
Percent
1
1
K
S
A
1
>2
V2
%
%
V2
l
%
Administration formulated a procedure for issuing
consolidated Bank obligations in the form of notes
and bonds—a means which will permit a more
flexible operation for long-term financing as well as
widen the issuing base. The first flotation—$140
million—was a non-callable series of IK percent
consolidated bonds to mature in 18 months, on
April 15, 1948. In addition, during December the
Banks issued a total of $29 million in consolidated
63-day notes at 1.10 percent, which were retired
on February 17, 1947.
Federal Home Loan Bank Review
Through the issuance of consolidated Federal
Home Loan Bank bonds and notes on the basis of
not over 12 times the present total of paid-in
capital stock and reserves under Section 16 of the
Bank Act, it would now be possible to borrow $2.5
billion if necessary to finance Bank operations. A
doubling of the Banks' capital through additional
investments therein by member institutions would
raise the amount of consolidated bonds which
could be issued and sold to $5 billion, thus demonstrating the advantage of the new procedure of
providing funds for the Banks over the past
procedure of issuing debentures for such purpose.
As a result of the year's operations, there was
a net increase of $100 million in consolidated
obligations outstanding, largely a reflection of
increased borrowing by the members.
The
year-end total amounted to $169 million.
Earned operating income of the 11 regional
Banks totaled $6.2 million last year—up $1.2
million from the 1945 level. The higher volume of
loans to members accounted for this increase, as
interest on advances was more than doubled,
reaching $3.6 million. Interest received during
the year on securities held by the Banks amounted
to $2.6 million compared with $3.3 million received
from this source in 1945. This was the first year
since 1942 that interest income from advances to
members exceeded the return on the Banks'
investment portfolio.
Statement of condition of the Federal Home Loan Banks as of December 3 1 , 1 9 4 6
Balance sheet items
Consolidated
ASSETS
Cash
Investments
Advances outstanding
Accrued interest receivable
Deferred charges
Other assets
TOTAL ASSETS
Combined
Boston
New York
Pittsburgh
Winston-Salem
Cincinnati
$33, 214, 400. 63
145, 091, 594. 83
293, 454, 766. 74
896,158. 30
309, 530. 39
96, 445. 55
.-
$39, 714, 400. 63
145,091, 594. 83
293, 454, 766. 74
896, 824. 05
309, 530. 39
96, 445. 55
$2, 333, 321. 23
16, 946,125. 32
12,028, 356. 00
78, 850. 66
19, 858, 04
301.00
$4, 876, 462. 46
24,123, 223, 56
24,316,452.90
158, 973. 98
1, 403. 80
4,182. 26
$2, 672, 950. 31
10, 442, 662. 29
29,136, 452. 92
106, 620. 50
37, 064.01
740.14
$2, 555, 787. 00
4,118, 228.18
39, 551, 037. 50
94, 831. 76
32, 963.14
11, 375. 94
$4, 805. 091. 39
27, 207, 525.98
24, 462, 294. 59
126,278.12
26, 928. 30
76, 509. 73
473,062, 896. 44
479, 563, 562.19
31, 406, 812. 25
53, 480, 698. 96
42, 396, 490.17
46, 364, 223. 52
56, 704, 628.11
70, 298, 921. 20
408, 368. 68
1, 363, 569. 77
17,139. 61
169, 000,000.00
76, 798, 921. 20
409, 034. 43
1, 363, 569. 77
17,139. 61
169,000,000.00
947, 057. 95
25, 674. 06
97, 482. 77
19, 935, 091. 78
1, 604.18
9, 000,000. 00
4, 240. 70
3, 500, 000. 00
1, 331,550. 99
47, 634.19
244, 408. 46
450. 00
21,000, 000.00
7, 867,475. 00
42, 903. 28
174, 849. 53
678.60
17, 500, 000.00
15,078, 506. 78
32, 872.37
198, 648.16
9, 527.98
12,000,000.00
241, 087, 999. 26
247, 588, 665.01
10, 070, 214. 78
23, 440, 936. 66
22, 624,043. 64
25, 585, 906.41
27, 319, 555. 29
209, 479, 300.00
22, 495, 597.18
209, 479, 300. 00
22, 495, 597.18
19, 789, 900. 00
1, 546, 697. 47
27, 282, 900.00
2, 756, 862. 30
17, 843, 500. 00
1, 928, 946. 53
18, 372, 700. 00
2, 405, 617.11
26,668, 700.00
2, 716, 372.82
_ _
LIABILITIES AND CAPITAL
Deposits
__
Accrued interest payable
Dividends payable
Accounts payable _.
Consolidated obligations 1
TOTAL LIABILITIES-
Capital stock—paid-in
Surplus—earned
TOTAL CAPITAL
-
_ __
__
--
TOTAL LIABILITIES AND CAPITAL
ASSETS
Cash
_
Investments
Advances outstanding
Accrued interest receivable
Deferred charges
Other assets
_
__
TOTAL ASSETS
231, 974, 897.18
231, 974, 897.18
21. 336, 597. 47
30, 039, 762. 30
19, 772, 446. 53
20, 778, 317.11
29, 385, 072. 82
473,062, 896.44
479, 563, 562.19
31, 406, 812. 25
53, 480, 698. 96
42, 396, 490.17
46, 364, 223. 52
56,704,628.11
Consolidated
Indianapolis
Des Moines
Little Rock
$33, 214, 400. 63
145,091, 594. 83
293, 454, 766. 74
896,158. 30
309, 530. 39
96, 445. 55
$5, 859,661.14
14, 231, 670. 29
24,148,112.01
81, 289. 68
34, 876.46
767. 75
$7, 017, 306. 03
8, 472,127. 74
50,062, 737.00
43, 528. 38
49, 556. 48
601. 00
$922,001. 92
8, 942,411. 52
26, 824, 481. 25
46, 642. 47
32, 555. 95
260. 22
$1, 351,063. 87
8, 617, 722. 40
16, 605, 704. 00
65,190.49
22, 090. 36
413. 60
$2, 441, 773. 23
9, 037, 873.12
12, 722, 838.00
45,041.40
21, 037.17
1.00
$4, 878, 982.05
12, 952, 024.43
33, 596, 300. 57
49, 576. 61
31,196. 68
1, 292. 91
473, 062, 896. 44
44, 356, 377. 33
65, 645, 856. 63
36, 768, 353. 33
26, 662,184. 72
24, 268, 563. 92
51, 509, 373. 25
70, 298, 921. 20
~~ 368.68
1, 363. 569. 77
139. 61
17, 000.
00
169, 000,
241,087, 999. 26
8,018, 527. 32
48, 324. 79
108, 485. 77
437. 86
20, 000, 000.00
9,429, 267.81
64,177.11
174, 393. 93
165, 200.00
29,127. 43
89,038. 91
477. 90
13, 000,000.00
957,;
, 337. 64
26,., (025. 89
51,i
, 010. 48
472. 60
11, 500, 000.00
9, 597,
i 78
', 821.
50,:
i, 244. 23
123,t, (092. 68
414. 37
30, 000,000.00
3, 471,084.15
40, 446. 90
102,159. 08
439. 60
17, 500, 000.00
14,000. 000.00
28,175, 775. 74
39,667, 838.85
21,114.129. 73
13, 283, 844. 24
12, 534, 846. 61
23, 771, 573.06
209, 479, 300.00
22, 495, 597.18
14,698,100.00
1, 482,501.59
23, 585, 600.00
2, 392, 417. 78
13,987, 600.00
1,666. 623.60
12,002, 400.00
1, 375, 940. 48
10, 431, 700.00
1, 302,017. 31
24, 816, 200. 00
2, 921, 600.19
Chicago
Topeka
San Francisco
LIABILITIES AND CAPITAL
Deposits
Accrued interest payable
Dividends payable
Accounts payable...
Consolidated obligations l
.
__
.
TOTAL L I A B I L I T I E S - .
Capital stock—paid-in
Surplus—earned
TOTAL CAPITAL
TOTAL LIABILITIES AND C A P I T A L - .
231,974,897.18
16,180, 601. 59
25,978,017.78
15, 654, 223. 60
13, 378, 340.48
11, 733, 717. 31
27, 737,800.19
473, 062, 896. 44
44, 356, 377. 33
65, 645, 856.63
6, 768, 353. 33
26, 662,184. 72
24, 268, 563. 92
51,509, 373. 25
i Consolidated Federal Home Loan Bank obligations issued by the Federal Home Loan Bank Administration and now outstanding, are the joint and
several obligations of all Federal Home Loan Banks.
March 1947
171
Operating expenses of the Banks were also
higher last year. The primary factor in this
increase was the greater amount of interest which
was paid for the larger volume of outstanding
consolidated obligations. After deducting operating charges of $2.8 million, the net operating
income of the Banks amounted to $3.4 million.
This was almost a half-million dollars, or 17 percent, greater than in 1945.
Year-end dividends declared by the 11 Banks
varied from 1 to 1.5 percent. Following the
usual practice, declarations of the Pittsburgh and
Winston-Salem Banks were on an annual basis.
Two Banks—Cincinnati and Little Rock—changed
their rates in 1946, both raising them to 1.5 percent on December 31.
The Banks paid dividends of $2.5 million during
1946, of which almost 40 percent, or $992,000,
went to member institutions while the remaining
$1.5 million was paid to the R F C .
As of the end of 1946, the highest interest rate
charged on F H L B advances to members was 2.5
percent in six Banks; in four of the other five
Banks which charged 2 percent, that rate applied
to all advances. Since the end of 1945, the Des
Moines Bank has abolished its 1.5- and 2.5-percent
rates, and the Pittsburgh and Chicago Banks
dropped their 1.5- and 3-percent rates. On advances up to five years, the New York and Topeka
Banks established a rate of 2 percent.
Deposits of cash by member associations with
their regional F H L Banks also showed an increase
during the past year. The total rose from just
under $46 million to more than $70 million.
Dividends declared by the
Federa H o m e Loan Banks during 1 9 4 6
Federal Home
Loan Bank
Boston,
New York
_
Pittsburgh- __
Winston-Salem
Cincinnati
Indianapolis... . .
ChicagoDes Moines
Little Rock
_.
Topeka
_
San Francisco
Total
_.
Rate per
annum i
Percent
1.0
1.0
1.5
1.0
1. 25-1. 5
1.5
1.5
1.5
1. 0-1. 5
1.0
1.0
Members
R . F . C.
Total
Jcfe DIRECTORY
P CHANGES
January 1947
Key to changes
*Admission to membership in Bank System.
**Termination of membership in Bank System.
#Federal charter granted.
01nsurance certificate granted.
001nsurance certificate canceled.
NEW YORK DISTRICT
N E W JERSEY:
Boonton:
**Ogden Building and Loan Association, 210 Main St.
East Orange:
00Brick Church Savings and Loan Association, 29 Washington PI.
East Paterson:
0First Savings and Loan Association of East Paterson, 24 Grove St.
N E W YORK:
Maspeth:
*Maspeth Federal Savings and Loan Association, 56-18 69th St.
P I T T S B U R G H DISTRICT
PENNSYLVANIA:
East Stroudsburg:
*0East Stroudsburg Savings, Building and Loan Association, 5 South
Crystal St.
Malvern:
*0Malvern and Duflryn Mawr Building and Loan Association, 3 West
King St.
WINSTON-SALEM D I S T R I C T
GEORGIA:
Covington:
#0Newton Federal Savings and Loan Association, Public Sq.
CINCINNATI D I S T R I C T
KENTUCKY:
Louisville:
#0Equitable Federal Savings and Loan Association, 604 West Jefferson
St.
St. Matthews:
*# St. Matthews Federal Savings and Loan Association, 3830 Frankfort
Ave.
INDIANAPOLIS DISTRICT
MICHIGAN :
Detroit:
#Home Federal Savings and Loan Association of Detroit, 301 East
Warren Ave.
CHICAGO DISTRICT
ILLINOIS:
Peoria:
* South Side Savings and Loan Association, 2228 South Adams St.
$68,415.39
77,431.06
77, 213.96
82,767. 53
191,091.43
126, 592.13
129,476.52
90,165. 33
37,472. 08
26, 903. 72
84,090.42
$124, 675. 00
189, 632.00
167,194. 50
92,082. 00
171,133. 88
87, 258.00
212, 608. 50
110,923. 50
109, 655. 00
73,336. 00
159, 279. 00
$193, 090. 39
267,063. 06
244,408. 46
174, 849. 53
362, 225. 31
213,850.13
342,085. 02
201,088.83
147,127. 08
100, 239. 72
243,369.42
991, 619. 57
1,497, 777.38
2,489, 396.95
SAN FRANCISCO DISTRICT
CALIFORNIA:
Bakersfield:
**Kern County Mutual Building and Loan Association, 803 Baker St.
La Mesa:
*0La Mesa-El Cajon Savings and Loan Association, 8247 La Mesa
Blvd.
San Jose:
001ndependent Savings and Loan Association, 16 East San Antonio St.
OREGON:
1
Rates apply to dividends declared on both a semi-annual and an annual
basis. Only Pittsburgh and Winston-Salem Banks declared dividends on
an annual basis on December 31,1946.
172
Marshfield:
**West Coast Federal Savings and Loan Association, 160 West Anderson
St.
Federal Home Loan Bank Review
YEAR-END STATEMENT OF THE ACTIVITIES
OF THE FEDERAL SAVINGS AND LOAN
INSURANCE CORPORATION
A n outstanding feature of 1946 operations of savings and loan
associations insured by the FSLIC was the $1.5-billion increase
in their mortgage portfolio. By the end of the year the combined assets of these institutions had reached $7.3 billion.
•
FOR the past five years no insured association
has been placed in receivership and during the
past two years none has required financial assistance by the Federal Savings and Loan Insurance
Corporation. One insured association experienced
difficulty during 1946 but no financial assistance
was needed.
Of the 39 insured associations which have
experienced difficulties since 1934, 28 have been
assisted through cash grants by the Corporation,
7 have been placed in liquidation and 4 have
continued operations without financial assistance.
Record growth in 1946
The growth of insured associations in 1946 was
greater than in any other year in the history of
the FSLIC. The combined assets of the 2,496
insured associations totaled over $7.3 billion at
the end of 1946, an increase of $1.2 billion during
the year. The Corporation now protects the
savings accounts of nearly 4,900,000 private investors in these associations. The sharp rise in
first mortgage holdings was the most outstanding
development of the year. Compared with an
increase of $1 billion during the four-year period
1942-1945, mortgage holdings rose $1.5 billion
during 1946 and on December 31 aggregated $5.2
billion. This increase in the mortgage portfolio
was accompanied by a decline in the liquid assets.
From the peak of $2.1 billion in cash and U. S.
Government bonds at the end of 1945, liquid
assets declined to $1.8 billion by the year-end.
During the year, 33 savings and loan associations with assets of $17 million were granted insurance by the Corporation. Certificates of 12
previously insured associations were canceled due
to the sale of assets, merger or consolidation with
173
March 1947
733401—47
other insured associations, or voluntary termination of insurance. At the end of December, approximately 40 percent of all operating savings
and loan associations, with 73 percent of the
aggregate resources, were insured.
The combined total of about 4,900,000 savers
and investors in insured associations hold average
accounts of $1,275, compared with an $835 average
before the war. Although the insurance is limited
to $5,000 per investor, nearly 96 percent of all
savings accounts are safeguarded in full since they
do not exceed that figure. Over 94 percent of
the dollar amount of savings in these associations
is completely covered by insurance.
Total resources of the Federal Savings and Loan
Insurance Corporation reached over $176 million
at the end of December, an expansion of $11
million over a year ago. Since its organization in
1934, the Corporation has accumulated reserves
of $73 million, an amount equal to $1.16 for each
$100 of insured liability of the Corporation as of
December 31, 1946. During the year, gross in-
2
Federal Savings and Loan Insurance Corporation Statement of Condition as of December 3 1 , 1 9 4 6
ASSETS
LIABILITIES AND CAPITAL
Cash
$1, 586, 253. 92
All funds of the Corporation are held
in the United States Treasury until
they are invested or required for
other purposes.
Accounts Receivable
1, 984, 046. 49
This item consists principally of insurance premiums payable after
December 31, 1946, by insured institutions.
Investments
172, 674, 517. 89
Cash not required for current operations has been invested in obligations
of the United States Government.
Subrogated Accounts
97, 055. 80
Represents subrogated shares received or to be received from payment of insurance on accounts in
institutions in default, less liquidating dividends and allowance for
losses.
Deferred Charges
45, 241. 50
Prepaid expenses which are amortized over the fiscal year.
Liabilities
Includes current liabilities and commitments of the Corporation plus
the amount of accounts in institutions in default pending settlement
of insurance.
$125, 297. 28
Deferred Income
Premiums for insurance of accounts
are taken into earnings over the
insurance year of each institution.
3,640, 679.43
Capital Stock
100, 000, 000. 00
The total authorized stock of the
Corporation is held by the Home
Owners' Loan Corporation in accordance with section 402(b) of the
National Housing Act.
Reserves
72, 621, 138. 89
This sum represents a legal reserve
as required by law, a special reserve
for contingencies, and the unallocated income for the past six months.
TOTAL LIABILITIES AND CAPITAL
TOTAL ASSETS
come from operations amounted to nearly $11
million, while operating expenses totaled slightly
more than one-half million dollars—5.2 percent of
gross income.
Since its creation, the FSLIC has benefited
over 66,000 investors in 39 insured associations
which have experienced difficulties. I n giving
this protection, the Corporation made net disbursements of over $5 million in the rehabilitation
of 28 of these associations. I n further detail, 19
of the 28 associations receiving cash grants continued operations as separate units, 6 merged with
other insured institutions, and 3 subsequently
liquidated voluntarily, paying all investors in full.
At the close of the year, investors in the seven
associations which had been placed in liquidation
had received new accounts in other insured
associations totaling $6.7 million and cash and
debentures of $13,200. As of the end of 1946,
the Corporation had recovered 94 percent of the
funds disbursed in the payment of insurance. I t
is estimated t h a t an additional 1 percent will be
recovered from those associations where liquidation has not been fully completed.
174
$176,387,115.60
$176, 387, 115. 60
Proposed Amendment to Rules and
Regulations
FHLBA
Bulletin N o . 8 6
Proposed amendment to rules and regulations for the Federal
Savings and Loan System relating to a new type of share account
under Charter K.
The F H L B Administration has proposed to
amend Section 202.9 (d) (Title 24, Code of Federal Regulations) b y adding a new subparagraph
5 to provide a Charter K amendment for use in
the acceptance of Christmas, tax, vacation or other
special accounts to be repurchased within 12
months. Crediting of dividends to these accounts
would not be required.
5. Amendment of the fourth sentence of Section 6 by
striking the period at the end thereof and adding the
following:
"or, if to be repurchased within 12 months, as shortterm savings share accounts.''
and amendment of the tenth sentence of Section 9 by
striking the period at the end thereof and adding :
"and short-term savings share accounts."
Notice of this proposed amendment, was published in The Federal Register on March 15, 1947.
Federal Home Loan Bank Review
Increase in Home
Savings Forecast
0^ e
Wo*
lv^ s
^V*
*"** ^Vl
0
tf?^
<A^
'f3*i
in A' ^ '
fcC^
- "
s
A big increase in home savings!
in 1947 is forecast by Raymond P. I
T a l b e r j ^ E E s a ^ a * of the Pittsburgh I
H o m e Savings!
& Loan Assn.
"Savings volume and the
i number of accounts have increased greatly
[at our associat i o n in the last
the Phuaael- WPQW w e e k S ) » M r >
their
s a i d
Loan a s.sociations
s o c v a u " - - in
their total
* ° ^ J«albert
;-e
area w»L"t.
$225,000 ; 000.-| It i n d i c a t e s
hia
e lv
LimateW
^
liable lor resio
tt^ ^c& ° l ; o o n
ic
HA
7
%^.s« c *
^\\\K>
"SSS.SSS
_are | ?
yes- bg to start to
lave
their
3.-IT
T S a n n o u n c e; emmwn .n i-l -a ^—^ d u n iunit
havefc
t I p •e persons
r S o n s have
^ . 2 1 T h - e ^nr>d table d i s c u ^ ° ^ „ a l M - | the associa-1.
k\o»>^e
V . v
3_,C»3M.e r
matenals
o:^.vvo- *
c
o<
a^
Savings and Loan Associations in the News
•
W I T H savings and loan operations hitting an
all-time high in 1946, news stories like those
in the accompanying illustration have become
every-day reading matter. The over-all account
of industry progress presented in the February
R E V I E W was the result of the combined success
stories of thousands of associations like these
which have just closed their books on a peak year.
The financial statements on which these stories
are based are, in themselves, prominent among the
paid advertising media used by savings and loan
associations. However, since more people will
read a news story than will study a financial
report, the former method undoubtedly gives
wider circulation to the savings and loan story.
At a time when the consensus of the industry is
that competition in the fields of both thrift and
mortgage financing is bound to be stiffer, making
the most of previous facts and future plans
represents one of the soundest means of keeping
the public informed of savings and loan prospects
and services.
Examples
The accompanying bird's eye view of recent
press coverage tells the story of individual associMarch 1947
ation participation in a year of record home
financing activity. The thrift side of operations,
also a bright spot, is played up while an all-time
high in total assets provides another good talkingpoint.
As shown by this cross-section, these associations
in common with many others, do not expect just
to coast along in 1947 on the gains made last year.
Funds will be needed even in addition to the large
volume already on hand, as the increasing tempo of
home construction keeps the demand for mortgage
money at a high level. With this in mind, these
associations give a preview of their plans for
stimulating thrift, as well as an account of their
present lending potential.
In looking into the future, one official stresses
the need for precaution against inflated values in
making high-percentage GI loans during the
coming year. The increasing need for " packaged"
mortgages to streamline financing operations for
both the borrower and the lender was one of the
" coming events" mentioned by two of the associations covered by these stories. News releases of
this type can be handled either on the basis of
individual institutions or groups of associations
through trade organization channels.
175
* * * WORTH REPEATING * * *
H O U S I N G J O B : ". . . briefly t h e
housing job before t h e i n d u s t r y for
1947 is . . . more t h a n placing a
million family dwelling units under
construction; more t h a n completing
a million u n i t s ; more t h a n planning
a n d launching a large r e n t a l construction program.
" I t is a challenge of cost—a challenge of lower r e n t s a n d lower sale
prices. E v e n though difficulties still
remain, t h e y m u s t be a t t a c k e d with
t h e basic task constantly in m i n d —
provision of decent housing for t h e
American people t h r o u g h t h e channels of private enterprise a t prices,
r e n t or sale, t h a t their incomes will
p e r m i t t h e m to p a y . "
Raymond M. Foley, NHA
Administrator, before annual
convention of the National
Association of Home Builders,
Chicago, 111., Feb. 25, 1947.
PROBLEM: " T h e real housing p r o b lem . . . involves a general raising
of s t a n d a r d s and, particularly, t h e
elimination of unsafe a n d u n s a n i t a r y
conditions found in city a n d rural
slums. Because of its m a g n i t u d e , it
cannot be solved quickly. Nor is
t h e r e one simple formula which can
be followed blindly to a sure a n d safe
conclusion.''
Business Action, February 14,
1947.
RESISTANCE: " T h e need for housing
increases b u t t h e public has learned
to wait until its d e m a n d is m e t . T h e
d e m a n d for well built homes a t a price
t h a t can be afforded a n d which will
permit t h e home t o be a good investm e n t has taken t h e form of quiet resistance t h a t is as effective as a
m i g h t y roar.
This is altogether
praiseworthy and is bringing results."
South Side Federal News, Cleveland, Ohio, February 1947.
EXPERIMENT: "Surely it is time to
m a k e u p our minds w h e t h e r we are
really serious when we say t h a t
every veteran or a n y other American, for t h a t m a t t e r — i s entitled to
be housed in decent comfort. And
in t h e process I hope we shall not
allow our vision to become clouded
b y stereotype phrases. . . . W i t h
respect to housing we have a p r o b -
176
lem to think our way t h r o u g h and it
will not help to strew t h e p a t h with
verbal road blocks. If we are to
find a solution to this, as to other
difficult problems, we shall need
open minds a n d probably a willingness to experiment."
Major General Philip B. Fleming, Administrator, Federal
Works Agency and Office of
Temporary Controls, before the
21st Women's Patriotic Conference on National Defense,
Washington, D. C , Jan. 25,
1947.
GREAT NEED: " T h e great need in
t h e coming year appears to be an
aggressive campaign by every member of t h e Federal H o m e Loan Bank
System for investments.
Every
means of advertising a n d sound
public relations should be directed
t o w a r d t h e procuring of investment
of funds sufficient to care for t h e
legitimate loan demand. Operations
should not be predicated on p e r m a nent borrowings."
Annual Report, Federal Home
Loan Bank of Little Rock, 1946
THRIFTY HABITS: ". . .
thrifty
people have more t h a n mere rainj^
d a y psychology to guide their thrifty
habits. Simply and smartly, t h e y
are looking ahead to t h e broader,
safer life which systematic accumulation of savings makes possible for
t h e m in t h e future. Money, for
money's sake alone holds no particular glamour for these savings-minded
folk. Money, for w h a t it can b u y
and t h e security it assures is t h e
inspiration for all of u s . "
Carter K. Ruggles, Northeastern Federal Savings League,
Boston Herald Annual Industrial Review, Jan. 26,1947.
CODES A N D COSTS: " A n o t h e r direction toward which the current
interest in housing is leading is the
search for a house of m i n i m u m cost.
All sorts of corners have to be cut in
arriving a t t h e desired results. I t
will not be surprising if some of these
p u t building d e p a r t m e n t s on t h e defensive as to whether some existing
code requirements are really necessary, a t least to the extent to which
they are applied. T h e search for
lowering costs is going on relentlessly
and it is n a t u r a l t h a t code requirements should not escape s c r u t i n y . "
George N. Thompson, Chief,
Division of Codes and Specifications, National Bureau of
Standards, Building Standards
Monthly, February 1947.
HOUSING COSTS: " T h e essence of
t h e problem seems to lie just t h e r e —
w h a t does housing cost a n d w h a t can
people pay? At present, t h e gap between these two figures is so great
t h a t there cannot be a n y substantial
a m o u n t of housing built. By s u b stantial is m e a n t of course housing in
t h e millions of units. Other estim a t e s range as high as twelve million,
b u t whatever figure is t a k e n , it is
clear t h a t housing built in t h e mere
thousands of units would be b u t a
drop in t h e b u c k e t . "
Eugene Raskin, Assistant Professor of Architecture, Columbia
University, Progressive Architecture, February 1947.
THE BOOKSHELF
Although inclusion of title does not
necessarily mean recommendation by
the REVIEW, the following recent publications will be of interest.
HOUSING DIRECTORY 1946-1947:
National Association of Housing
Officials, 1313 E. 60th Street, Chicago 37, 111. August 1946. $3.00.
THE SELF-SUPPORTING CITY: By Gilbert Tucker. R o b e r t Schalkenbach
F o u n d a t i o n , 50 E. 69th St., N e w
York 2 1 , N . Y. 1946. 108 p p . $1.00.
YOUR COMMUNITY: By Joanna C.
Colcord. T h e Russell Sage F o u n d a tion, 130 E . 22nd Street, N e w York,
N . Y. $1.50.
MR. BLANDINGS BUILDS HIS DREAM
HOUSE: By Eric Hodgins. Simon
and Schuster, 1230 6th Ave., NewYork 20, N . Y . $2.75.
OPERATION HOUSING: N a t i o n a l
H e a d q u a r t e r s , T h e American Legion,
777 N . Meridian Street, Indianapolis
6, I n d .
RENTAL HOUSING: A Community
P r o g r a m for M a y o r s ' E m e r g e n c y
Housing Committees, Office of t h e
Housing Expediter, Washington 25,
D . C.
Federal Home Loan Bank Review
A MANAGEMENT SURVEY ON SAVINGS
CAMPAIGNS—PART III
This is the third and concluding article in the series presenting
the results of a canvass to determine what Bank System members
are doing to obtain new savings funds. Some of the most distinctive and individual projects of institutions are highlighted here.
•
T H E first article in this series covered some of
the more intangible elements of savings promotion—office location, public relations, community contacts, for example. The second emphasized
the role of newspapers and the radio in these campaigns. However, there are many other effective
methods of building business which deserve special
treatment.
Direct mail advertising is sometimes used as the
sole promotional method but more often combined
with other forms of advertising. The experience
of institutions with this medium varied considerably, with success apparently dependent upon the
extent of the careful planning and preparation.
One managing officer expressed it: " W e believe
that direct mail advertising is the cheapest and
most effective of all types."
A wide variety was found in the kinds of material used. " Sales talks" in the form of letters and
pamphlets on one or both phases of operation
ranked high, while financial statements as well as
general explanations of association services and
programs were other popular subjects. No general agreement was evident on the most effective
frequency of circularization—intervals varied from
every few weeks to once a year.
The pamphlet or folder type of direct mail
advertising is also sometimes used as counter
literature in an association. An example was
sent in by a Pennsylvania institution which distributes a syndicated booklet explaining what a
savings and loan association is and offering downto-earth answers to the questions which an average citizen might have about an institution of
this type.
Various approaches have been used in building
up general mailing lists. Two widely separated
associations relied on the records of local taxing
authorities of people declaring investment funds.
Telephone and city directories were other sources.
March 1947
One large New York association built up its
mailing list from two places. The original one
was a general list of voters enrolled in the assembly district (an eight-block radius) from which all
but one person of the same surname at the same
address was eliminated. Then, as the executive
officer said: " W e realized that this did not cover
any of the. thousands of people employed or in
business in this district, so we recently worked up
a new list of the business people in this area from
the telephone directory." The three pieces so
far mailed to that group contain an approach
particularly applicable to a large metropolitan
center. These letters, stressing the anonymity of
big-city neighbors, contain an invitation to come
in, get acquainted and let the association be of
service. As an added inducement, as well as a
check on the effectiveness of the appeal, the informal " P . S." on each offers city transportation
maps or other "come-in" material to anyoneinterested enough to visit the association.
House organs
House organs were also popular as ammunition
for this "broadside" type of direct mail advertising. The coverage obtained through these publications is of several types, as are the magazines themselves. I t seemed most common to send them to
both savings and borrowing customers, although
some institutions supplemented this by circularizing prospective customers as well. One large midwestern Federal reported that it regularly mailed
out 12,500 copies to its entire list. Another
organization concentrated its non-customer mailing chiefly on professional and business men, while
a third said that its house organ was sent to the
offices of doctors, dentists and beauty parlors.
Some prefer to use a syndicated magazine with
an imprint of the savings and loan association or a
large identifying ad. On the other hand, a number
177
of institutions publish their own house organ.
These, originating chiefly with the larger associations, vary from small folders on specific topics to
magazines covering various phases of association
operations and activities of interest to the borrowing or investing public.
Special mailings
A more concentrated approach in the use of
direct mail advertising was included in the programs of many of the associations polled. Courtesy
and friendly interest in dealing with the public were
stressed by most managers as the bedrock of all
advertising. Rather than let this attitude stop at
the door, many institutions make a practice of
extending it through their written contacts.
Perhaps the most elaborate program is one
which has been in force for several <years in an
association in upper New York State. Letters
on the personalized stationery of the managing
officer are sent congratulating all new parents in
the community (a practice reported by several
other institutions also) and suggesting the opening of a new savings account for the child's education. Newly-weds are also circularized, as are all
returning veterans—the letters suggesting the
benefits of a savings account or offering assistance
in the financing of a new home. Bereavement in
a family is the occasion for an expression of condolence, while in the case of serious illness among
substantial shareholders, flowers are sent. The
managing officer of this association said: " A lot
of these activities might, in a way, seem to be a
trifle overdone, but, on the other hand, I know
from personal experience that in continuing our
activities along these lines we have built up our
savings accounts and have acquired a considerable
amount of goodwill which we will cash in on
further over the period of years."
Another illustration of this evidence of personal
interest is the Baby Gift Certificate which is sent
by a southern association to all new parents,
offering, upon the return of the certificate, to
credit a new account in the baby's name with
one dollar as a savings inducement. " W e have
only a small percentage of the Certificates returned
but people appreciate our thoughtfulness and, in
that manner, a good many people have found out
that we accept savings."
Other variations of the direct mail technique
178
were also in common use among the reporting
associations. Many send " thank you" letters
when an account is opened or a loan closed.
This, in addition to being a courteous gesture,
provides ap opportunity for informing each type
of customer about the other angle of savings and
loan operations.
Many associations emphasize home building
appeals in their advertising campaigns, offering
various types of literature on the subject as well
as sample plans. In reporting their experience
with a home-of-the-month series, the president of
a Michigan association said: "While this is primarily for loans, it has brought in savings from
people who plan to build in the future. From
this program we have developed a mailing list of
about 600 people interested in building new
homes." Several other associations also found the
Loan Department a fertile field for producing new
savings business. One Ohio executive put it this
way: "A well handled mortgage loan gets you
closer to folks than any other business transaction. These transactions are investigated and
it has been found on the average that the mortgagor has about five or six relatives and friends.
We figure that every loan ought to produce over
a short period, two or three savings accounts."
The Loan Department is not the only one that
can be used as a general business-builder, according
to this story from a midwestern Federal:
By taking constant inventory, we have found that
one of the outstanding contributory factors to the
success of our association was the inauguration and
careful development of our Escrow Department.
Through this service we are acquainted with the
parties involved in the real estate transfer and we are
invariably able to solicit from the seller's proceeds
a substantial new savings account with our association, if there is no immediate purchase of another
parcel, and in that event we most likely obtain another
mortgage or escrow. This department is a highly
specialized one, being carefully planned, and is considered one of the outstanding units of our association,
in addition yielding a substantial earning every
year . . . One evening a week is set aside for handling
escrow matters in which the parties are unable to
come to the association during the daytime.
Soliciting new business
On the theory that one of the best ways to get
new business is to go out and ask for it, several
associations reported very satisfactory results
Federal Home Loan Bank Review
from the employment of paid solicitors. An
eastern institution official speaks of this method
as "what we consider our most important advertising campaign which has brought us more results than anything we have tried." The business
was handled through a contract with a distributor
of registering banks to make house-to-house calls
throughout the entire district. " Under the terms
of the campaign the banks and a wallet for the
storage of bonds and personal papers are sold to
prospective customers with the understanding
that if they do open an account and make pay-
March 1947
ments totaling not less than $50 at the end of the
year, the institution would refund the cost."
Since 1944 over 15,000 people have been interviewed; 3,200 banks and wallets distributed; and
over 1,800 new accounts opened at an average of
$300 per account. As the association report
stated: "This, of course, does not tell the whole
story as hundreds of people who were not interested in the purchase of the bank and wallet have
opened accounts." Another association keeps one
full-time and one part-time employee constantly
soliciting new savings accounts, using the same
179
technique of "selling" a coin bank, subject to redemption if an account is opened within 60 days
and a $50 balance built up within the year.
Payroll savings program
Taking a cue from the favorable reaction to
the Treasury's wartime experience, some associations are now operating payroll deduction plans
for the promotion of regular savings. The
"Passport to the Home of Savings," shown in the
illustration on page 179, is one of the pieces of
promotional material issued by an institution in
New York State which recently established such
a program. The booklet contains an explanation of the advantages and mechanism of the
plan, with particular emphasis on the flexibility
and privacy of the arrangement, as well as on the
safety of the institution. The back cover of the
booklet is an authorization card for the employer's
records. I n reporting on the plan, the manager
of the institution said:
About four months ago, we launched the Security
Payroll Club and we have had some very attractive
literature prepared in order to familiarize not only
the employees but the employers in the various industrial and mercantile plants in the community with
the plan. Individual letters are sent to the management of each plant and this is followed up by personal
solicitation. Each of the unions was contacted by
letter and these letters were followed by personal calls,
and several addresses have been made before various
groups in order to promote the Payroll Club. We
also had attractive window posters of the easel type
prepared and these were distributed for display purposes to the various stores in the community. In
distributing these posters, we have been successful in
having about 200 of the various stores in the community, as well as the mercantile plants, accept them.
Of the above that were solicited to place these posters
on display, we only had five refusals which, to our way
of thinking, spells the public acceptance and approval
of the association in the community.
Special programs
Another type of promotional program, one of
the most elaborate reported to the R E V I E W , is the
Annual Open Meeting sponsored by a southern
Federal. This, according to the managing officer
of the association, has been the main feature of
all their advertising. "Once a year we decide on
a timely topic to be discussed and secure, where
possible, the outstanding speaker in the country
for the subject chosen. For the occasion we do a
180
large amount of advertising and really make it
First Federal week."
Invitations and tickets are hand-mailed to
everyone listed in the telephone book and a
supply of tickets sent to corporations and firms
for distribution to their employees. Originally,
convention halls of local hotels were used for the
meeting but attendance increased to the point
that it has been necessary in the last five years
to move the meeting to the City Auditorium
which holds 5,000 people, and that has sometimes
been filled to overflowing. A printed program is
provided which contains, on the back cover, a
dignified statement of the purposes of the association but no commercial announcement is made in
connection with the meeting. The executive
officer reported: "This fact itself has received
very favorable comment."
In connection with this Open Meeting, the
association gives a dinner in honor of the guest
speaker to which some 75-100 people are invited.
Some particular city-wide group is invited each
year—for instance, the realtors, the lawyers, the
preachers or the members of the local * women's
clubs.
Selection of the person to introduce the speaker
is another matter which receives careful attention—one year it was the Governor of the State
and another time the president of the Chamber of
Commerce. The association manager reported
that one man chosen to officiate in that capacity
was so favorably disposed toward the organization
that within a year, $50,000 in new accounts was
traced to his influence.
Goodwill advertising takes many forms other
than such elaborate entertainment. One association, for instance, provides an hour-long musical
program in the office quarters each noontime.
During the holiday season the organ is moved to
the front window and the music is broadcast for
the pleasure and attention of passers-by.
A Pennsylvania association makes itself known
to newcomers in the community by maintaining
membership in the local "Welcome Wagon.''
This is a service provided in many cities which is
sponsored by various business concerns as a
friendly gesture to new residents to acquaint them
with the products and services of local organizations. Numerous forms of free service within an
association are also used as goodwill and business
Federal Home Loan Bank Review
builders. One executive said, "In my estimation,
it is that kind of thing that people like."
Cashing in on the traffic problem presented in
getting into the adjoining metropolitan center,
one suburban association entered into a contract
with the telephone company to collect their bills.
This brought some 1,500 new people into the association's quarters each month, many of whom
would not otherwise have come to the association.
Once having acquired the habit, they often utilize
other services as well.
Another device used by several associations is
the provision of safe deposit boxes for the accommodation of members and to attract new customers to the office.
M
Something for nothing"
"We believe in the liberal use of 'gadgets' to be
handed out to members, on the theory that everyone is glad to get something for nothing." This
comment by the managing officer of a large
middlewestern Federal, represents the philosophy
of many institutions. In addition to putting the
customer in a pleasant frame of mind, these gifts
serve the added purpose of keeping him reminded
of the donor, a cardinal principal of good
advertising.
Most of the gadgets distributed by these institutions were designed for individual use—blotters,
thimbles, dime savings folders, letter openers,
calendars, and even baby books. However, one
association in Pennsylvania reported excellent
results from furnishing score cards and tallies for
group card parties. The managing officer said
"Our city has many clubs and women's organizations and we furnish the score cards for many of
their card parties. These parties sometimes
amount to as many as 100 tables so by furnishing
the tally cards we place our name before at least
400 women."
Display advertising
Various kinds of display advertising were also
reported in the REVIEW'S canvass. However,
aside from window and lobby displays, that field
did not seem to be so thoroughly worked as the
others which have been summarized.
There are two distinct types of window displays—direct business promotion and goodwill
advertising. The former, emphasizing either
mortgage loans or thrift, includes displays of
house plans and building materials, or set-ups
designed to dramatize the benefits of regular
savings.
An interesting variation of this kind of advertising is shown in the accompanying illustration.
The managing officer of the association which used
this display explained: "This shows how we announced the change in our quarters when it became necessary to barricade our front window for
remodeling. Incidentally, this is the only window
devoted entirely to the subject of the Second
Federal which we have used in the past six or
seven years."
The other type of window display—general
service or goodwill advertising—usually stresses
such themes as the local Community Chest, Red
Cross, manufacturing activity in the city, or any
civic feature. An example of that type is also
shown in the illustration on this page.
Many associations reported that their own employees furnished the bulk of the ideas for these
{Continued on p. 189)
Veterans' organizations support
present housing program
Almost complete unanimity of
opinion in favor of keeping all present
provisions of the housing program
was expressed by representatives of
the five major veterans' organizations recently. This consensus was
announced by Housing Expediter
Frank R. Creedon following a meeting which he had called to clear up
conflicting reports as to the attitude
of these groups.
The nine-point control program on
which the veterans' organizations
were asked to comment included:
the construction limitation order;
allocation of basic raw materials;
special assistance in securing building machinery and equipment; one
completed bathroom; 1,500 square
feet as area limitation; suitability of
house for year-round occupancy;
rent ceilings on new construction;
veterans' preference; sales and rental
ceilings on HH houses. The only
point questioned by two of the organizations was the advisability of
rental ceilings on new construction.
Both lumber prices
and production rise
Since decontrol, prices have gone
up more sharply on lumber than on
any other building material, the
Forest Products Section of the Department of Commerce reported.
Unless prices can be stabilized at
more moderate levels, the Commerce
Department believes that lumber
dealers may lose some of their
markets. This danger is underlined
by great technological improvements
in competing materials and the expanding production of new lumber
substitutes.
During the last few months, the
Forest Products Section reported,
there appears to have been plenty of
lumber available for those who cared
to meet the price. Lumber production in 1947 will total about 36
182
billion board feet, the Commerce
Department estimated. On an overall basis, this appears sufficient to
bring the supply into approximate
balance with minimum requirements.
Despite numerous adverse factors,
the lumber industry made an outstanding production record in 1946.
Total production was 34.5 billion
board feet—about 23 percent above
1945 and several billion feet more
than was predicted at the beginning
of the year. During the third
quarter of 1946, lumber stocks continued the increase which was first
evident in the second quarter of the
year.
Priority ratins
assistance curtailed
Beginning April 1, priority rating
assistance will be given, in general,
only in support of the housing program and in aiding the Veterans
Administration construction program (mostly hospitals). Ratings
previously issued for other purposes
will expire and, by action of the CPA,
a new RR rating covering future
priority assistance will become effective.
Valid HH and HHH ratings are
not affected in any way by the new
PR-35. Valid AAA, MM and CC
ratings issued for the purchase of
any building material or product
listed on Schedule A to PR-33 remain in effect in accordance with the
rules under which they were issued,
except that they will not be effective
for the purchase of steel for delivery
after March 31.
Construction research
board organized
To provide a clearing house for
technical research information in the
field of construction, a Building Construction Research Board was set
up on January 31 by the National
Research Council of the National
Academy of Sciences. Supported by
contributions from the building industry, the new Board contemplates no
direct laboratory activity. Its principal function will be to collect and
disseminate technical research findings of importance to the building
trades and to correlate investigations
carried on simultaneously by different organizations.
Revisions in guaranteed
market plan
In order to bring the guaranteed
market plan into conformity with
recent changes in the housing program, several revisions are currently
being made according to a recent announcement by the Office of the
Housing Expediter. Price ceiling
provisions will not be included in
new market guarantee contracts but
contracts will still be based in part
on the prospect of substantial construction economies through factory
production. Also, a maximum limit
will be placed on the amount the
Government will have to pay for any
units it may have to take over.
Benefits of the guarantee will continue even though a producer, through
no fault of his own, is unable to meet
the production schedule called for in
the contract. In addition, a change
will be made in the sales clause to
conform with the new permit system
for residential construction.
Community A c t i o n —
Yakima Style"
National recognition was accorded
the aggressive veterans housing program in Yakima,
Washington,
through a nationwide radio broadcast on March 15 which originated
from a veteran's home in that city.
The driving force in this commuuit}"
has been the Mayor's Emergency
Housing Committee, vvhich includes
representatives of the local savings
and loan associations in key positions. A feature article, describing
the Yakima housing program in detail, will be published in the April
issue of the REVIEW.
Federal Home Loan Bank Review
Premium payments on
pis iron continued
Continuation to June 30, 1947, of
premium payments on foundry and
malleable grades of pig iron, in order
to assure maximum production of
this critical material, was generally
approved by the Joint Pig Iron
Industry Advisory Committee, the
CPA and the Office of the Housing
Expediter announced last month.
Also, at the same time, consideration was indicated for a possible
increase in the basic quota output of
plants operating under this arrangement.
Effective September 1, 1946, the
plan was designed to increase the
supply of pig iron needed for cast
iron soil and pressure pipe, radiation
and other housing products. During
the September-November period the
combined production of participating
plants rose an average of 48,800 tons
a month over the three months prior
to the institution of the plan. The
over-all increase in the industry was
8.9 percent in October which represented a peak for 1945-1946. In
November alone, despite the coal
strike, the daily average output was
higher than during any of the eight
months of 1946 before premium payments were instituted.
Low redemption rate
in savings bonds
New evidence that U. S. savings
bonds have been bought as longterm, "permanent" investments is
contained in a recent nationwide
survey conducted by the U. S.
Treasury Department. This sample
study, which covered the first seven
months of 1946, showed that over
half of the holders of these securities
cashed no bonds at all during the
period. The majority cf the people
who had cashed any bonds, about
four-fifths of those interviewed,
stated that they had been obliged
to redeem these bonds in order to
meet emergencies and to pay for
higher living and consumption expenses. However, the individual
amounts involved were relatively
small on the average and the total
represented about two-fifths of the
value of all bonds redeemed during
the period.
March 1947
In contrast to this, only 14 percent
of the people who redeemed bonds
did so for investment purposes but
in the aggregate this involved over
one-third of the dollar volume of
redemptions. Since the financing
of homes and farms constituted the
chief reason for these redemptions,
it is probable that the future trend
will be conditioned to a great extent
by a rising volume of residential
construction.
There was no pronounced variation in bond redemptions as between
various income groups. The $2,000$4,000 bracket led, exceeding by a
slight margin the lowest income
groups, but the proportion of redemptions was also substantial
among the higher income brackets—
over $4,000.
According to the Treasury, small
investors purchased approximately
$4.5 billion of " E " bonds last year,
while the shrinkage of total outstanding volume of these bonds was
only 1.1 percent.
Two new guaranteed
market contracts
Directives were issued last month
by Housing Expediter Frank R.
Creedon to the RFC to negotiate
guaranteed market contracts with
three housing producers for the provision of 13,700 houses in 1947. This
action will bring into force 10 such
agreements for a total production of
82,500 factory-built houses during the
current year.
The Texas Housing Company contract calls for the production of
10,000 wood panel, one-story twobedroom dwellings containing 800
square feet of floor space. These
houses, which will be marketed
principally in the South and Southwest, will sell complete and erected
but without land, for approximately
$5,500.
Under another agreement, General
Houses, Inc., will undertake to provide 2,000 wood and plywood Cape
Cod cottages. These will be storyand-a-half two-bedroom houses of
825 square feet with an unfinished
attic where two more bedrooms and a
bath can be added later. The price,
complete and erected but without
land, will be approximately $5,050 in
the South and $5,900 in the North.
The difference is based on higher
freight charges and the addition of a
basement and a larger heating
system.
The contract with General Homes,
Inc., calls for the production of 1,646
units of a one-story two-bedroom
aluminum house of conventional appearance containing 874 square feet.
This house will sell, complete and
erected but not including land, for
approximately $5,865. In addition
to these units the company has
agreed to provide 54 houses of a
larger three-bedroom type for an
addition to the Tauxmont housing
development south of Alexandria,
Virginia.
Two premium payment
plans dropped
Premium payments on structural
clay products and sand lime brick,
provided under Premium Payment
Regulations 1 and 10, were terminated at the end of February by the
Office of the Housing Expediter.
Both of these programs were originally scheduled to remain in effect
through May 1947 but a review of
the supply outlook for this year led
the Industry Advisory Committees
to recommend the earlier ending of
these programs. This action brings
to six the number of incentive payment plans which, having served
their purpose of encouraging a.
satisfactory level of production, have
been closed out since price controls
were removed from building materials.
Monthly output of structural clay
products before the premium plan
was 89,000 tons; the plan went into
effect on October 1 and in the remaining months of 1946, production
increased to an average 119,000 tons
a month. About 530 plants, including at least 78 which were
reopened, participated in the plan,
accounting for 80 to 90 percent of
the industry's total production.
Monthly output of sand lime brick
during the first five months of 1946,
before incentive payments became
operative, averaged 341 million brick.
In the last seven months of the year
the monthly average rose to 455
million.
1 83
Index (1935-1939-100)
550
Index (1935-1939 = 100)
250
© SAVINGS & LOAN LENDING
(FHLBA)
U
\
.
INDUSTRIAL
PRODUCTION
\
500
Urb an 1 a 2 Fanl i l y Dwelling3 Units
AJ
/H
(LAf 30R DEPT)
450
150
100
400
llilLUiLlU,,
MIMIIIIll
1942
1943
MIMIIIIll
"i
ii
1944
11 11 1 1 1 1 11 1 1 I I
1945
1946
11II111
1947
Index (I935-I939«I00)
350
200
aJ
300
AM
J
100 i J i H U '.' i'/,L
y
1 1
(LABOR DEPT)
I
Ill
1943
1 1 M 1 1 II 1 1 1
1944
1945
1946
1947
Index ( I 9 3 5 - I 9 3 9 » I 0 0 )
300
i
INCOME PAYMENTS
(COMMERCE DEPT.) |
250
i
1
i
*
\\
50
200
)
A
/
•
150
* \^
100
11N11111M
1943
1944
1945
1946
11111111111
1947
1942
Index ( I 9 3 5 - I 9 3 9 « I 0 0 )
Millions
200
$1,200
BUILDING COST INDEX
160 ]__
^ V
i
1
1942
MANUFACTURING
EMPLOYMENT
1
Wi
A"
150 \
"
1942
1
200
S_
150
A
250
100
(FED. RESERVE)
200
© PR IVATE C ONSTRlJCTION
Standard Six-room House
(NHA)
1943
1944
11
i
i
i
i
11
i
.
<
1945
1946
1947
MORTGAGE RECORDING
All Lenders
(
900
600
300
100
0.
1943
1942
1944
1945
1946
1942
$40011 FHLB ADVAN CES
OUTS TANDIN G
k
80
w r *\ / \ /
1942
J
/
\J
40
^v v yJV
i n M i M i M iM M
184
1944
120
300!
100
1943
1945
1946
1947
Percer it
Millions
200
' ' 11111,1,111 I I M 1 1 1 r II "1 ' I I
1947
n
mini
1943
1944
1945
II
i in in MIMIIIIll
1946
1947
0
REPUR CHASE RATIO
L
All Insure J
S 8 L Assns.
m wsHk\
1^
1 1 N y
MIMIIIIll
" M l 1 I I II 1
1942
1943
I
f
Mill
1944
1945
1946
1947
Federal Home Loan Bank Review
if
««
MONTHLY
Industrial output reached
new peacetime peak
In a month virtually free from major management-labor conflict, the wheels of American industry
were turning at the fastest rate during January
for any month since the end of the war. The
-Federal Reserve Board's seasonally adjusted index
of industrial production moved up six points
from December to reach 188 percent of the 19351939 average. Output of durable and nondurable
goods, as well as that of the country's mines, all
shared in the gains registered over the preceding
month.
According to Reserve Board economists, the
substantial rise in January reflected primarily
sharp gains in the output of coal, iron and steel.
Production of iron and steel was at the highest
rate since May 1945. The output of building
materials was also maintained at an unusually
high level for this time of year, the report stated.
The number of unemployed persons increased
slightly to about 2,400,000 but this was largely a
seasonal movement. For example, the Bureau of
Labor Statistics estimates that the total number
of workers on construction projects throughout the
country was 145,000 less than in December.
This trend has been going on since late fall, but
will be reversed with the approach of spring.
The Bureau also reported that January was the
second successive month during which total
expenditures for building and repair of nonfarm
homes ($357 million) were below the total for nonresidential construction. While this is normally
true, the situation was reversed last summer when
a peak volume of new homes was being started
at a time when there were severe restrictions on
non-residential projects.
Index
[1935-1939=100]
Jan.
1947
Dec.
1946
Percent
change
Jan.
1946
H o m e c o n s t r u c t i o n (private) 1
R e n t a l index ( B L S )
B u i l d i n g m a t e r i a l prices
Savings a n d loan lending i
I n d u s t r i a l p r o d u c t i o n J__
Manufacturing employment!_-.
Income payments1
__
239.5
108.8
189.5
510.2
188.0
155.3
263.6
191.5
108.8
176.2
430.0
' 182. 0
153.1
'261.6
+25.1
r 252.4
108.3
134.0
442. 5
160.0
135.2
233. 5
r Revised.
i Adjusted for normal seasonal variation.
March 1947
+7.5
+18.7
+3.3
+1.4
+0.8
Percent
change
-5.1
+0.5
+41.4
+15.3
+17.5
+14.9
+12.9
S U RIV E Y » » »
Retail transactions, as measured by the department store sales index of the Federal Reserve
Board, were about 17 percent higher during the
first few weeks of this year than in the same period
of. 1946. Higher prices figure in the increase,
however, and it was reported that unit sales of
some nondurable goods have shown declines.
Price fluctuations continued to exercise an
important influence over current and future
business activity. The Bureau of Labor Statistics
index of wholesale prices, based on approximately
900 commodities, has maintained its upward trend
since the beginning of the year. Prices are now
at the highest levels since late 1920, but still 12
percent below the peak reached in May of that
year.
Wholesale building material prices have participated in the recent gains. In the first eight weeks
of this year, the index of all building materials rose
almost 12 percent. Each of the various commodity sub-groups making up the combined index
shared in the rise, with lumber and paint and paint
materials showing the greatest increases.
After 10 consecutive monthly increases, the
index of consumer prices declined one-tenth of 1
percent from mid-December to mid-January.
Lower prices for food items in the family budget
more than offset the additional gains in retail
prices of other living essentials. The net increase
in the past 12 months, however, is estimated at
nearly 18 percent. The trends of these prices are
studied, of course, for their effect on the purchasing
power of consumers.
January building permits
were up 13 percent
Building permits were granted for nearly 40,000
privately financed family dwelling units in all nonfarm areas during January. This is only a
fractional increase over the same month of last
year but exceeds by 9 percent the January 1941
volume of private construction. From December
to January, permits for privately financed dwellings rose 13 percent, all of which may be accounted
for by the accelerated activity in construction of
185
Units -Thousonds
!
NEW
j
RESIDENTIAL CONSTRUCTION
All nonform areas
(LABOR DEPT)
1
TOTAL LOANS BY ALL
S S L ASSNS.
MORTGAGE RECORDINGS
Percent of total amount, by
type of mortgagee
By type of Association ,
{PRIVATE 132 FAMILY
r
s
a L ASSNS.
-X"""'—
^BANKS 8 TRUST COMPANIES
—
PRIVATE
MULTI-FAMILY S .,
linn
1- and 2-family dwellings—multi-family units
having declined 19 percent during this period.
The average permit valuation for 1-family homes
built in nonfarm areas was $4,529 in January
compared with $4,256 a year ago and $3,587 in
J a n u a r y 1941.
[TABLES 1 and 2.]
Standard house index of
building costs up 5 percent
Construction costs as measured by the NHA
index for the standard frame house showed the
sharpest gain for any single month since this
series was started in 1936. The index for total
costs was up 7 points, reaching 168 percent of the
1935-1939 average.
[NOTE—Because of the method used in compiling the national standard house index, it has
been slow to recognize the changes in costs which
have occurred since the lifting of price controls
on November 9. For example, the index for
January reflects price quotations obtained in the
three reporting groups of cities. One group of
quotations was obtained on November 15, the
second group on December 15, and the final group
on January 15. The index is derived by an
average of the quotations for the three reporting
dates. For the same reason the standard house
index will be somewhat slower in recognizing any
declines in construction costs when they occur.]
Increases in material costs were responsible for
the major portion of the December-to-January
gain. The index for material costs reached 168
186
l l l l i l
I I 1 I 1 I I I I I I I I I
percent of the 1935-1939 average. This was the
first time since December 1937 that the index of
material costs was higher than t h a t of labor costs.
Labor charges involved in constructing the standard house rose 1 percent during the month to
bring this index to 167 percent of the 1935-1939
average.
Wholesale building material prices as measured
by the Department of Labor index were up 8 percent during the month of January and stood
41 percent above the level of a year ago. Both
lumber and paint and paint materials showed
gains of 10 percent in January and these same
materials have experienced the greatest gains in
the year-to-year comparison. [TABLES 3, 4 and
5.]
Savings and loan lending
showed slight decline
The downward trend in the volume of home
purchase loans made by all savings and loan
associations, which has accompanied the general
slow-down in the turnover of existing properties,
New mortgage loans distributed by purpose
[Dollar amounts are shown in thousands]
Purpose
Construction.
H o m e purchase
Refinancing . . ._
Reconditioning
0 ther purposes
Total
_
-
January
1947
December 1946
Percent
change
January
1946
$51.145
145,273
22,599
6,795
24,204
$50,233
151.848
22,116
6,040
23,464
+1.8
-4.3
+2.2
+12.5
+3.2
$30.807
145,342
21.372
3,803
15. 518
+66.0
-0.1
+5.7
+78.7
+56.0
250,016
253,701
-1.5
216,842
+15.3
Percent
change
Federal Home Loan Bank Review
was continued during the opening months of 1947.
Loans in all other purpose categories were greater
in January than in December, increases ranging
from 2 percent for construction and refinancing
loans to as much as 12 percent for repair and reconditioning loans. However, the 4-percent drop
in home purchase lending was sufficient to more
than offset the increased lending in the other
categories, with the result that total new loans
dropped slightly from the December level to
$250,000,000.
Compared with the estimated $217,000,000 of
loans made during the same month of last year,
savings and loan lending during January was up
15 percent. The greater portion of the rise in
new lending in this January-to-January comparison was accounted for by loans for the construction of homes, which increased 66 percent to more
than $51,000,000. The volume of home purchase loans made was fractionally smaller than
in the corresponding month of 1946. [TABLES 6
and 7.]
Volume of recordings showed
little change from December
Changes in mortgage financing volume were
spotty at the start of this year, with the various
classes of financial institutions (commercial banks,
savings banks and associations) showing reductions
from December. However, the gains recorded by
insurance companies, individuals and other mortgagees were sufficient to raise the total for all
lenders slightly from December to January.
Mortgage recordings by type of mortgagee
[Dollar amounts are shown in thousands]
T y p e of lender
January
1947
Savings a n d loan associations
I n s u r a n c e companies
B a n k s , t r u s t companies
_
M u t u a l savings b a n k s
Individuals
___
Others
$246,114
52,15,5
230,492
44, 761
160, 297
113, 224
Total
$254,477
44, 548
232,032
46,941
147,613
110,793
- 3 . 3 $220,420
+ 1 7 . 1 26,936
- 0 . 7 139,126
24,401
-4.7
+ 8 . 6 151,601
+2.2
71,633
+11.7
+93.6
+65.7
+83.4
+5.7
+58.1
847,043 836,404
+ 1 . 3 634,117
+33.6
I n spite of a record volume of repayments
during the month, F H L B advances outstanding
at the end of January remained the largest ever
Index (1935-1939*100)
CONSUMER
PRICE IND EX
All Operating
Associations
Percent
change
Outstanding FHLB advances fell
$42 million in January
180
PRIVATE SHARE CAPITAL f
January
1946
In dollar volume, a total of $847,000,000 in
mortgages of $20,000 or less was recorded in January. While this is one-third greater than the
amount reported a year previous, it is significant
that more than half of this gain was due to increases in the average size of the instruments
recorded.
The number of mortgages recorded was only 14
percent greater in January 1947 than a year
earlier-—while savings and loan associations as
well as individual lenders actually showed fewer
instruments recorded. As late as July 1946, the
number of recordings was 65 percent above the
corresponding 1945 figure, but the margin narrowed persistently from month to month for the
rest of the year. [TABLES 8 and 9.]
Index ( 1 9 3 5 - 1 9 3 9 * 1 0 0 )
$400
Decem- Percent
ber
change
1946
BUILDING MATERIALS
Wholesale Price Index
(LABOR DE PT.)
(LABOR DEPT.
250
160
LUMBER^!
ft£W MV€$TM£NT$
M^Ai;
/
200
1
^
1
PAINT a
A
PA II VT MATERIALS'*!
1
1 ,
140
150
,
-
^
,...-«•«•• ......y^PLUMBINS
8 iEATIHQ
120
CEMENi
100
I 11 11 I I 11
inn. i i l i i l n h i
i i I i i 1 i i I 11 i i 1 i I 1i l 1 i l 1
50
1 1 1 1 1 1 1 1 11 11 11 I I 1 1 1 1 l1 l 1l
1949
March 1947
1946
|
l l l l l
llll
1947
187
reported for that month. Although 44 percent
higher than on that 1946 date, the January
31 balance of $251,155,000 followed the normal
seasonal pattern by dropping more than oneseventh below the year-end figure. Shared in by
every Bank, the decline ranged from 6 percent in
Pittsburgh to 27 percent in San Francisco. This
first monthly contraction since the fractional
decrease in July 1946 brought the advances
outstanding to the lowest level since last September.
Aggregate advances made by the Banks in
January followed the trend usually apparent at
this time of year by falling to about one-sixth of
the December amount. Reflecting a decline in
ever}7 Bank District, the January advances
totaled $8,718,000. This was the smallest volume
recorded for any January since 1941 and about 51
percent below that 1946 month. Member institutions borrowed less from the 11 F H L Banks
during January than in any single month since
October 1945.
While it is customary for member institutions
to make heavy repayments during January on
funds advanced by F H L Banks, the $51 million
repaid in that period this year exceeded any other
monthly total in the Banks' history. About
$12.6 million above the previous peak set in
January 1946, repayments in the reporting month
were over three times as high as in December.
{TABLE
12.]
Number of insured
associations reached 2,500
The 2,500 associations insured by the Federal
Savings and Loan Insurance Corporation enjoyed
a particularly favorable growth in share capital
during the opening month of 1947. With the
exception of June and December of last year—
the months in which most associations declare
and credit dividends to the savings accounts of
their members—the $121,000,000 increase during
January was the largest monthly gain on record
and boosted the private repurchasable capital
of these institutions to $6,317,000,000. Compared with the share growth recorded in January
1946, the current figure represents an improvement of well over 50 percent.
Although both total new share investments and
withdrawals were substantially greater than in
188
the same month of last year-—up 27 and 16 percent, respectively—the greater relative rise in
total new investments served to reduce the withdrawal ratio to 66 percent from 73 percent a year
earlier.
After tending downward during 1944-1945, the
ratio of general reserves and undivided profits to
assets of insured associations again turned slightly
upward during the latter half of 1946. The
$463,286,000 of general reserves and undivided
profits held by these institutions by the end of
January represented 6.3 percent of total assets
on that date.
In line with experience during the same month
of preceding years, insured associations during
January reduced their advances from the Federal
Home Loan Banks from $273,000,000 to $231,000,000. Advances outstanding at month-end
were, however, 41 percent greater than a year
earlier.
[TABLE 13.]
Gain in share capital
55 percent above a year ago
During January, both total new investments
and withdrawals of savings and loan associations 7
share capital reached new high levels. But more
important, the net flow of savings into these
institutions (excess of new investments over withdrawals) also established a new record for the
month. In fact, with the exception of June and
December of last year—the months in which
most associations make their semi-annual declaration of dividends—the estimated $140,000,000
net growth in share accounts during the reporting
month was the largest on record and exceeded by
55 percent the growth in the same month of last
year.
Total new share investments, which reached an
all-time high of $421,000,000 in January, were 26
percent greater than in the same month of last
year. Over the same interval, withdrawals rose
15 percent to a new monthly peak of $281, 000,000.
By virtue of the larger percentage gain in total
new investments, the withdrawal ratio dropped
from 73 percent in January 1946 to 67 percent.
This is the second month in the last 13 (the other
being December 1946) in which the withdrawal
ratio has shown an improvement over the comparable month of the preceding year. [TABLE 14.]
Federal Home Loan Bank Review
Foreclosures were down
17 percent during 1946
Nonfarm foreclosure actions initiated during
the fourth quarter of 1946 were approximately 30
percent more numerous than during the preceding
three-month period which marked a new low
point in this series. The estimated OctoberDecember total of 3,392 cases, however, was
only 3 percent more than in the corresponding
period of 1945. This indicates that not too much
significance can be attached to the recent rise.
For the year as a whole, nonfarm foreclosures
were nearly 17 percent below the 1945 level. The
total is estimated at just over 12,000 or approximately 1,000 cases per month. Only two Federal
Home Loan Bank Districts (Topeka and San
Francisco) showed more foreclosures last year
than in 1945 [TABLE 19.]
Management Survey
(Continued from p. 181)
exhibits, if not all the actual "trappings" or work.
This, plus the fact that these displays may be as
simple or as elaborate as desired, means that it
need not be an expensive form of advertising.
Bus, streetcar and subway advertising also had
its proponents. This medium was not among the
most frequently mentioned although it was considered by some as an excellent source of new
contacts. One more form which might properly
be considered display advertising is the motionpicture short. Two associations reported using
movie shorts as part of their business promotion
programs.
Conclusions
The cooperation of all associations which participated in this survey is appreciated and the results are indicative of the interesting and challenging problems involved in promotional efforts.
There are undoubtedly other institutions which
have had equally good results with the methods
presented in these articles, or with other types of
activities which have not been covered.
This survey also showed that organized campaigns for savings can be effective and will go a
long way in producing the funds which will be
required in the coming months for the home
financing activity of these institutions.
March 1947
Rent Regulations Eased
•
LIBERALIZATION of provisions under
which owners of rental property can apply
for increases in rent ceilings was announced during
February by the Office of Price Administration.
These changes, effective February 15, make it
easier to get rent increases to cover "financial
hardship" cases and those involving "peculiar
circumstances" of renting.
"Financial hardship" cases, under the new
regulations will be determined by comparing the
operating position of the property in the current
year with that in any representative two-year
base period after January 1, 1939. Previously,
the base period had to be before the maximum
rent date.
In order to qualify for a hardship increase, a
landlord must show both a decrease in net income
and an increase in property taxes or operating
costs between the selected base period and the
current year. The amount of increase granted,
OPA stated, will continue to be limited by the
level of rent ceilings for comparable housing in
each area.
The change in provisions covering "peculiar
circumstances "was accomplished through instructions to OPA area rent offices granting more local
discretion in such decisions. These cases, which
have always been subject to adjustment, involve
properties which, for a specific and unusual reason,
were at the time rent control became effective,
being rented at a rate substantially below the
comparable rent for similar accommodations.
Increases to date
By the first of this year OPA had granted 987,000
individual petitions for rent increases under all of
the 15 individual grounds provided by the rent
regulations. The monthly rate of these increases,
which has been growing since early 1946, is now
somewhat more than 25,000 petitions a month.
These increases have been granted chiefly to
compensate for additional furniture, equipment or
services, or for a major capital improvement.
Substantial increases in occupancy of a rental unit,
that is, in the number of sub-tenants or occupants
in excess of normal, has been another major ground
for adjusting ceilings upward, as have been special
relationships between an owner and a tenant.
189
Tabic 1 . — B U I L D I N G A C T I V I T Y — E s t i m a t e d number of new family dwelling units provided
in all urban areas in January 1947, by Federal Home Loan Bank District and by state
(Source: U. S. Department of Labor]
T o t a l u r b a n residential construction
P u b l i c r e s i d e n t i a l construction
P r i v a t e residential c o n s t r u c t i o n
Federal H o m e Loan B a n k
District and state
1- a n d 2-family dwellings
3- a n d more-family dwellings
J a n . 1947P D e c . 1946 J a n . 1946
J a n . 1947P D e c . 1946 J a n . 1946
J a n . 1947P Dec. 1946 J a n . 1946 J a n . 1947P D e c . 1946 J a n . 1946
U N I T E D STATES
_
Boston.._
Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
N e w York
N e w Jersey
New York
Pittsburgh.
Delaware
Pennsylvania
W e s t Virginia
Winston-Salem
Alabama
FloridaGeorgia
Marvland
N o r t h Carolina
South Carolina
Virginia
31,639 J
21,955 1 18,429
23,130
2,262
2,919
2,810
676
715
405
4
44
50
252
8
312
35
69
165
13
446
6
75
85
7
264
6
42
1 |
859
4
40
4
484
1,060
612 1
350
509
235
249
328
732
730 1
589
26
32
70
6
657
130
7
611
112
9
448
132
26
4
24
4
64
6
542
74
12
74
25,301
21,348
680
759
455
252
8
316
35
69
165
13
486
10
75
90
14
302
2,454
2,096
6,629
886 1
736
1,718
752
1,344 |
372
6,257
501
385
424
659
793
819
10 1
762 1
11
42
1 |
10 1
1, 036 1
1,084
5,699
762
1,084
5,008
22
740
1,084
5,008
5
7
38
6
683
130
635
116
9
512
138
4,542
4,134
4, 209
4, 052
3,431
3,593
490
703
385
80
1,261
357
268
476
150 1
454
390
74
1,466
603
279
355
183
243
16
100
184
164
175
162
26
16
20
38
148
144
44
9
67
514
190
1,901
411
258
541
233
494
549
255
1,423
357
288
514
150
598
476
74
1,791
688
279
399
192
310
498
90
1,717
411
232
525
233
346
325
85
1,726
1,279
1,373
1,647
1,150
1,307
79
129
66
Kentucky
Ohio. Tennessee
228
1,105
393
148
910
221
122
882
369
228
1,026
393
148
781
221
110
860
337
79
129"
12
22
32
Indianapolis
Indiana..
Michigan
1,241
1,078
1,889
1,212
1,043
1,690
29
35
19
180
463
778
405
673
538
1,351
453
759
390
653
350
1,340
10
19
15
20
8
11
180
Chicago
1, 054
1,142
913
229
1,620
870
36
682
188
1,197
951
246
72
1,258
362
1,070
853
217
184
839
215
157
27
60
12
32
4
387
275
112
909
851
52
55
30
50
118
326
350
30
33
796
189
321
229
19
38
905
189
337
268
19
38
985
121
403
401
14
46
857
118
342
381
35
33
121
353
371
14
46
16
31
5
16
39
30
3,855
2,810
4,220
3,616
2,670
4.079
239
140
141
263
439
305
132
2,716
146
350
237
26
2,051
186
321
248
190
3,275
239
431
238
132
2,576
140
314
219
26
1,971
186
321
248
164
3,160
24
8
67
6
36
18
140
80
26
115
1,090
888
1,455
1,058
824
1,298
32
64
157
227
265
109
489
254
245
126
263
503
275
83
594
215
253
109
481
230
209
126
259
366
275
83
574
12
12
24
36
137
8
4
20
6,931
5, 549
8,145
4,964
7,208
643
585
937
168
5,780
37
33
146
332
47
370
18
112
4, 260
92
40
197
243
169
420
16
185
6,148
126
57
114
627
173
678
37
6,288
154
5,231
37
33
137
265
47
370
14
91
3,736
86
40
197
209
169
420
16
176
5,404
126
53
109
549
125
629
37
14
549
21
524
6
9
744
34
4
5
78
48
49
Cincinnati
Illinois...
Wisconsin
D e s Moines
Iowa
Minnesota
Missouri
North Dakota
South D a k o t a
Little Rock
Arkansas
Louisiana
Mississippi
N e w Mexico
Texas..
Topeka
Colorado
Kansas
Nebraska
Oklahoma
S a n Francisco
Arizona
California
Idaho..
Montana
Nevada.
__
Oregon.
Utah .
Washington
Wyoming
9
67
50*
4
p Preliminary.
190
Federal Home Loan Bank Review
T a b l e 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 unifs
[Source: IT. S. D e p a r t m e n t of L a b o r .
Dollar a m o u n t s are s h o w n ir t h o u s a n d s ]
N u m b e r of family dweUing u n i t s p r o v i d e d
Permit valuation
Private construction
Period
Total
construction
Total
1-family
2-family
Private construction
3- a n d
morefamily
Total
Public
construc- construction
tion
1-family
2-family
3- a n d
morefamily
95, 740 $2,502,818 $2,180,805 $1,952,003
Total
Public
construction
NONFARM
$69.429
$159,373
102,234
3,656
18. 837
15,295
115, 503 3,335,453 2, 982. 726 2, 686,161
106, 611
189. 954
352, 727
147, 963
169,037
316, 924
286,437
265,321
231, 938
235, 336
246, 251
224,140
233,066
188, 830
139, 802
5,286
6,969
12. 098
10.991
13, 754
9,531
8,217
9,014
9,290
8,590
7,667
4,623
9,454
9,043
23, 934
13, 420
17, 063
14,317
13, 269
17, 236
13. 833
19. 958
15. 927
12.312
16, 251
16,654
18,135
29, 766
51. 446
54,919
59, 557
62, 573
20, 683
9,369
244
75
162, 022
6,454
10. 762
7,423
70,117 1, 617,981 1,380, 736 1,175, 598
58, 841
146, 297
237, 245
65, 984
3,141
18,105
9,683
100, 298 2, 414, 668 2,113, 732 1, 830,307
102, 702
180, 723
300, 936
715,200
619,460
533,185
28,393
57,882
January
41,198
36,480
28,495
1,617
6,368
1946
796,200
680, 697
604.711
25, 533
50, 453
January
February
March
April
May
June..
July
August
September
October,
November..
December r
44,800
49, 500
84. 500
82.900
88. 700
76,100
80.400
82,100
65, 800
60, 200
46, 600
35, 200
39,101
43, 342
77, 002
70,478
68. 758
58,340
60, 586
62, 090
57, 044
58, 492
46, 478
35,168
34, 771
38. 689
68, 461
64,182
60, 549
52, 712
45, 462
55, 931
50, 945
51, 551
41, 296
30. 958
1,409
1,889
2,783
2,671
3,417
2,264
2.027
2,063
2,160
1,999
1,684
1,041
2,921
2,764
5,758
3,625
4,792
3,364
4,097
4,096
3,939
4,942
3,498
3,169
5,699
6,158
7,498
12, 422
19, 942
17,760
19, 814
20, 010
8,756
1,708
122
32
178, 954
201,703
371. 091
340, 614
347, 584
310, 705
316, 379
335,074
267. 946
270,983
212, 668
156, 812
162, 703
185,049
352. 956
310, 848
296,138
255,786
256, 822
272. 501
247, 263
261, 614
212. 424
156, 737
41,000
39, 898
35, 778
1, 558
2,562
1,102
186, 661
179, 238
439, 582
369.465
295,024
22. 752
51, 689
27, 505
24,361
17,035
1,321
6,005
1941.
_
__.
...
1947
January*
URBAN
1941...,
January
1946
January
February
March
April..
May
June
July
August
September
October
November
December
530, 295
429,997
31,639
34, 370
56. 503
55, 603
60,167
51, 270
52.131
55.081
43, 087
37, 401
28, 661
21,348
25,940
28, 503
50, 066
44, 996
43, 583
36. 660
36. 830
38, 660
35, 044
36, 067
28, 539
21,348
21, 807
24,072
41,785
39,000
35, 824
31, 372
31.071
32,921 1
29,335
29,576
23,747
17,458 |
1,323
1,792
2,683
2.571
3,267
2,144
1,902
1,943
2,050
1,899
1,594
971
2,810
2,639
5,598
3,425
4, 492
3,144
3,857
3. 796
3, 659 |
4, 592
3,198
2,919
25,301
24,217
20,497
1,458
2, 262
__
. . . __ .
___ _
___ _
1947
January p
r
J» Preliminary.
358,115
24, 265
47, 617
4,718
140,022
96, 913
3,144
5,699
5.867
6,437
10.607
16, 584
14, 610
15, 301
16, 421
8,043
1,334
122 j
1,084
124, 727
87, 230
135, 636
147. 633
268, 533
245, 565
255,110 1
223,734
220.350
247, 818
191,826
192,148
149,541
119.385
131. 886
252, 537
219, 412
211,320
182. 742
177,394
193,471 1
172,678
183.593
149,297
131,238
123,974
108,130 1 108,130 1
105. 261
116, 568
217,388
195,969
181,907 j
159,954
157,063
168,556
150.795
156,482
126,948
92,297 1
108,134
$322.013
5,011
6,659
11. 749
10, 688
13,304
9,171
7,842
8,654
8,960
8,290
7,397
4,396
9,113
8, 659
23, 400
12,755 i
16.109 1
13,617
12.489
16,261
12,923
18.821
14.952
11,437 j
16, 251
15. 747
15, 996
26.153
43. 790
40,992
42. 956
54,347
19.148
8,555
244
6,129
9,711
7,264
Revisod.
Table 3 . — B U I L D I N G COSTS—Index of wholesale prices of building materials
[Source: U . S. D e p a r t m e n t of L a b o r .
All b u i l d i n g
materials
Period
-
March 1947
Paint and
paint materials
Plumbing
and heating
Structural
steel
Other
130.4
121.5
106.9
171.3
130.7
121.4
103.5
111.9
134.0
135.0
139.5
141.3
142.7
145.1
147.5
148.2
149.2
150.5
162.5
176.2
128.7
128.7
129.2
132.0
132.6
133.5
134.8
138.7
140.5
140.7
142.1
143.1
111.0
111.4
112.3
112.4
112.6
112.6
114.1
116.1
116.9
116.9
117.4
117.3
176.5
178.3
186.6
190.9
192.1
196.0
197.4
197.8
198.4
199.2
213.9
253.0
132.5
132.5
132.5
132.8
133.0
133.5
141.3
140.0
143.5
146.6
186.0
191.1
124.8
124.9
124.9
132.4
132.4
139.3
139.3
139.7
140.8
140.8
140.8
151.0
103.5
109.7
115.9
115.9
115.9
115.9
115.9
115.9
115.9
115.9
115. 9
115.9
115.3
115.9
121.4
122.0
125.1
128.0
129.7
130.7
131.3
132.5
135.5
142.5
189.5
145.5
118.9
278.3
210.5
153.7
123.2
150.3
+7.5
+41.4
+1.7
+13.1
+1.4
+7.1
+10.0
+57.7
+10.2
+58.9
+1.8
+23.2
+6.3
+19.0
+5.5
+30.4
_ ___
___
Percent change:
J a n u a r y 1947-December 1946
J a n u a r y 1947-January 1946
Lumber
_._ _
_
1947: J a n u a r y
Cement
__. . . __
1945: J a n u a r y
1946: J a n u a r y
February
March...
April
_.
May.. ...
June
July
August
September
October
November
December
Brick and
tile
1935-1939=100; c o n v e r t e d from 1926 base]
_ .
.___
191
Table 4 . — B U I L D I N G COSTS—Index of building costs for the standard house
[Source: National Housing Agency. Average month of 1935-1939=100]
J a n . 1947 D e c . 1946 N o v . 1946 Oct. 1946 S e p t . 1946 A u g . 1946 J u l y 1946 J u n e 1946 M a y 1946 A p r . 1946 M a r . 1946 F e b . 1946
Element
Material
Labor
__
Total
168.5
166.8
158.9
164.8
153.8
163.1
150. 5
161.6
168.0
160.8
156.9
154.2
4
J a n . 1946
148.3
159.3
146.1
157.2
143.7
155.6
141.6
153.8
139.2
152.5
138.0
150.6
137.1
148.9
136.3
148.5
135.5
147.9
151. 9
149.8
147.7
145. 7
143.6
142.1
141.0
140.3
139.7
Table 5 . — B U I L D I N G COSTS—Index of building costs in representative cities
[Source: N a t i o n a l H o u s i n g Agency.
Average m o n t h of 1935-1939=100]
1946
1947
1945
1944
1943
1942
1941
Feb.
Feb.
Feb.
Feb.
Feb.
Federal H o m e Loan B a n k District and city
Feb.
Nov.
Aug.
May
Feb.
Pittsburgh:
Wilmington, Delaware.
Philadelphia, Pennsylvania.. ___
Pittsburgh, Pennsylvania
_ __ _ .
C h a r l e s t o n , W e s t Virginia
_ _ __ _ .
180.1
199.9
177.0
194.3
154.9
187.4
152.7
166.0
143.1
176.5
146.9
157.4
141.6
172.9
140.9
150.5
138.5
170.0
139.6
136.3
134.9
151.4
135. 0
134.2
133.4
148.5
133.5
121.6
129.2
138.8
130.7
121.1
131.0
135.0
118.6
115.9
108.4
118.0
110.2
108. 6
Cincinnati:
Louisville, K e n t u c k y
Cincinnati, Ohio.
C l e v e l a n d , Ohio—.
M e m p h i s , Tennessee
_.
_ __
. .
177.4
170.3
171.6
172.6
152.1
152.2
163.1
154.1
148.9
146.1
159.6
147.3
146.0
141.0
147.0
141.6
142.9
140.1
145.9
141.3
135.2
137.7
147.9
136.0
126.5
131. 2
139. 5
134.4
119.9
119.1
128. 3
120.1
112.8
111.1
125.1
115.8
106.6
100.3
110.5
107.2
Little Rock:
Little Rock, Arkansas
N e w Orleans, L o u i s i a n a . .
J a c k s o n , Mississippi
Albuquerque, New Mexico-..
Houston, T e x a s . .
__
.
185.4
201.2
187.1
162.8
167.8
163.1
160.5
156.8
152.2
146. 5
154.9
155.2
148.6
148.6
138.1
145.4
150. 2
141.7
137. 6
135.5
142.3
143.1
141.6
133. 9
132.3
138.4
141.9
137.2
134.7
126.4
135.4
141.3
132.3
133. 8
123.1
134.6
131.3
123.4
117. 0
116.2
127.9
128. 5
122.6
116.6
119.5
111.8
121.0
113.5
105. 6
106. 3
1
..
______
.
_
.
___
.
For complete explanation of these data, see Statistical Supplement to April 1946 REVIEW.
Table 6 . — M O R T G A G E LENDING—Estimated volume of new home mortgage loans by all
savings and loan associations, by purpose and class of association
[Thousands of dollars]
Class of association
P u r p o s e of loans
Period
1945
.
January
1946
_
January
February. . . .
March
April _
May._
June
. . .
July
August
______
September...
October
. _.
November..
December
.
_
._
_ - _ .
_
_
Reconditioning
L o a n s for
all o t h e r
purposes
Total
loans
Nonmembers
Construc- Home purtion
!
chase
Refinancing
$180, 550
$1,357,555
$196,011
$40,736
$137,826
$1,912,678
$911,671
$836,874
3,772
76, 495
12,167
1,868
7,999
102, 301
46,439
46,452
9,410
615,542
2, 356,630
270, 235
80,563
261,522
3, 584,492
1,810,374
1, 511, 507
262, 611
30,807
30,866
45,391
53, 202 I
62,189
56, 297
59, 708
59, 377
55, 354
60,931
51,187
50, 233
145, 342
154, 219
202, 995
235,877
243, 458
218,575
216, 369
211,804
198, 842
207,139
170,162
151,848
21, 372
19,801
24, 244
24,882
24,451
22,402
21, 388
22,032
21, 546
24, 376
21, 625
22,116
3,803
4,217
6,198
6,796
6,954
6,625
7,327
8,481
8,027
9,061
7,034
6,040
15, 518
16,416
21, 335
22, 242
24, 246
22,098
21, 256
22, 765
26,022
24,692
21,468
23,464
216,842
225, 519
300,163
342,999
361, 298
325,997
326,048
324,459
309,791
326,199
271,476
253,701
109,146
111,927
155,960
174,468 .
186,282
107, 552
165, 031
165,812
154,105
165, 742
131,607
122,742
92,103
97,305
123,945
143,114
150,161
136, 296
136, 966
134,624
133,758
136,660
116, 780
109,795
15,593
16, 287
20, 258
25,417
24,855
22,149
24,051
24,023
21,928
23, 797
23,089
21,164
51,145
145, 273
22, 599
6,795
24, 204
250,016
123,827
106,358
19,831
Federals
State
members
$164,133
1947
January
192
. . . .
Federal Home Loan Bank Review
Table 7.—LENDING—Estimated volume of
new loans by savings and loan associations
Table 8.—RECORDINGS—Estimated nonfarm mortgage recordings, $20,000 and under
JANUARY 1947
[Thousands of dollars]
[Dollar a m o u n t s are s h o w n in t h o u s a n d s ]
Federal H o m e L o a n
B a n k District
a n d class of
association
January
1947
D e c e m - J aa nr yu ber 1946 1946
1946
1945
$250, 016 $253,701 $216, 842, $3, 584, 492, $1,912,678
UNITED STATES
Federal...
State member
Nonmember
_
Boston _
Federal . State member
Nonmember..-
.
F e d e r a l . . __
State member
Nonmember
-
Pittsburgh.
Federal .
State member
Nonmember
-
Winston-Salem
Federal...
State member
Nonmember.
State member
Nonmember
Indianapolis
Federal
State member
Nonmember
.
123, 827 122, 742 109,146 1,810,374
106, 358 109, 795 fi2,103 1, 511, 507
19,831 21,164 15, 593
262, 611
911,67l|
836, 874
125,996
17, 310
17, 553
12,003
239,665
6,064
9,120
2,126
6,311
9,164
2,078
5,601
5, 217
1,185
102, 778
112, 425
24, 462
Percent
change
+87.4
+98.6
+80.6
164,1331 + 6 0 . 0
+90.2
53, 8401 + 9 0 . 9
56,991 + 9 7 . 3
15,165| + 6 1 . 3
187,331
24, 590
26, 727
20, 573
372, 091
9,998
11,308
3,284
10,171
12,123
4,433
7,822
9,434
3,317
156, 530
162, 723
52, 838
19, 454
18,939
16,865
267,106
154, 716
+72.6
9,774
9,273
8,714
134, 256
73, 534
+82.0
6,110
6,096
5,070
85, 444
53, 400
+60.6
3,570
3,570
3,081
47, 406
27, 782
+ 70.6
39,107
40, 881
31,814
525, 631
243,851 + 1 1 5 . 6
20, 239
15, 515
3,353
21, 449
16,169
3,263
16, 764
12,508
2,542
296, 700
191,484
37, 447
128,459 + 1 3 1 . 0
99, 687! + 9 2 . 1
15, 705; +138. 4
35, 783
40,005
33,668
565, 535
313, 820
+80.2
17, 458
16, 210
2,115
17, 889
19, 695
2,421
15, 73C
16, 540
1,398
256, 744
280,970
27, 821
135, 090
158, 388
20, 342
+90.1
+77.4
+36.8
+98.6
66, 576 + 1 3 5 . 1
89,971 + 8 0 . 9
30, 784 + 7 1 . 6
14, 807
13, 701
12, 267
210, 942
8,208
7,557
6,001
598
5,756
388
6,768
5,071
122, 867
82, 782
428
5,293
214, 528
+71.4
108, 216
+94.9
58, 605 +109. 7
44, 997 + 8 4 . 0
4,614 + 1 4 . 7
22, 695
24,108
21, 789
367, 792
10, 371
11, 292
1,032
11, 003
11, 786
1, 319
9,876
10, 971
942
170,143
180, 356
17, 293
91, 988
106, 893
15, 647
+85.0
+68.7
+10.5
..
13,105
14, 776
12, 576
216, 485
116, 997
+85.0
Federal—.
State member
N o n m e m b e r _. .
6,912
4,588
1,605
8,014
4,713
2,049
6,545
4,782
1,249
120,170
69, 793
26, 522
61, 444
40, 375
15,178
+95. 6
+72.9
+74.7
Little Rock.. .
14, 098
12, 667
12, 256
188,124
90,802 +107. 2
FederalState member
Nonmember
6,165
6,407
5,761
87,140
44,942
7,764
169
5,077
7,412
178
88
99,110
1,874
44, 678 + 1 2 1 . 8
1,182
+58.5
Chicago
- -
Federal
State member
Nonmember
Des Moines
+93.9
11,046
10,796
12,067
168, 555
96,974
+73.8
Federal..
State member
6,811
6,204
3,272
28,144
+82.5
+83.2
Nonmember
1, 545
1,320
97, 947
51, 556
19,052
53, 683
2, 690
7,138
3,855
1,074
15,147
+25.8
S a n Francisco
38, 021
33, 548
30, 964
462, 566
259, 447
+78.3
21, 827
19, 794
15, 760
434
13, 609
145
17,781
12,894 1
289
265, 099
194,864
143, 510
113,350
2, 587
+84.7
+71.9
Topeka..
. .
Federal
. ..
State member
Nonmember
March 1947
2, 603
+0.6
Savings Insur- B a n k s
and
and
ance
trust
loan
comassocia- panies companies
tions
Federal H o m e
L o a n B a n k District a n d s t a t e
U N I T E D S T A T E S . __
MutuOther
al sav- I n d i ings v i d u a l s m o r t gagees
banks
Total
$246,114 $52,155 $230, 492 $44, 761 $160, 297 $113, 224 $847,043
. .-
17, 488
1,126
8,993 18,901
8,188
4,226
58, 922
Connecticut
Maine
Massachusetts - _
New Hampshire
Rhode Island
Vermont
..
2,634
683
11,634
438
1,846
253
745
39
320
3,475 4,133
469 1,173
3,594 11, 524
299
689
1,014
931
142
451
2,442
458
4, C03
367
702
216
1,548
79
2,057
65
434
43
14,977
2,901
33,132
1,858
4,949
1,105
. _.
24,117
3,495
18,803 20, 314
23,349
N e w Jersey.
..
N e w Y o r k . __-
6,988
17,129
1.494
2,001
7,678 2,445
11,125 17,869
7,078
16, 271
3,874
6,654
29, 557
71, 049
17, 534
2,445
18, 510
1,101
8,913
7,397
55, 900
268
15, 829
1,437
149
1,989
307
228
16,016
2,266
145
956
344
7,816
753
127
6,973
297
1,261
49, 579
5,060
24, 409
7,096
9,894
634
23,132
9,564
74, 729
1,071
3,946
5,055
3,193
5,830
2,025
499
2,790
754
679
3,202
217
463
874
320
587
1,026
709
1,486
2,262
1, 776
630
669
1,336
634
1,223
2,596
9,710
1,935
2,055
1,626
843
3,144
1,046
852
3,049
1,910
781
795
406
725
5,120
8,782
22, 502
9,517
11, 539
5,950
2,737
8,582
__
46, 039
4,232
24, 633
1,343
8,360
10, 532
96,139
...
4,287
39, 787
1,965
749
2,379
1,104
2,050
19, 634
2,949
1,343
488
7,524
1,348
267
4, 473
5,792
7,841
75,140
13,158
15,870
5,371
21, 809
18
5,078
6,482
54, 628
9,349
6, 521
1,988
3,383
8,550
13, 259
18
1,739
3,339
1,029
5,453
22, 673
31,955
B o s t o n . _-_
New York.
Pittsburgh
Delaware
P e n n s y l v a n i a . _.
West Virginia...
Winston-Salem
Alabama
D i s t r i c t of C o l _ .
Florida
Georgia . . .
.
Maryland
North CarolinaSouth Carolina. .
Virginia _ _ _
Cincinnati
Kentucky...
Ohio
Tennessee
Indianapolis
Indiana .
Michigan. _
22
10, 528 100, 606
24,131
4, 229
14,156
48
10,132
13, 009
65 705
Illinois
Wisconsin
18, 766
5,365
2,090
2,139
8,997
5,159
48
6, 013
4,119
11, 753
1,256
47 619
18,086
Des M o i n e s
14, 490
3,389
13, 899
716
7,031
7,506
47, 031
3,298
5,737
4,587
642
226
479
911
1,923
47
29
4,281
3, 693
5, 419
315
191
1,196
1,753
3,744
168
170
921
3,218
3,284
72
11
10 175
16, 028
18, 957
1,244
627
13,181
7,141
5,500
12, 245
10, 792
48, 8F9
1,021
4,290
696
319
6,855
739
691
512
48
5,151
1,084
463
673
213
3,067
832
2,594
657
450
7,712
97
1,399
369
68
8, 859
3,773
9,437
2,907
1,098
31 644
-
12,141
1,722
5,791
7,662
6,570
33, 886
Colorado.Kansas
Nebraska.
Oklahoma
2, 459
3,926
1,321
4,435
129
428
570
595
1,270
2,235
727
1,559
3,702
1,169
607
2,184
1,748
1,903
187
2,732
9,308
9,661
3,412
11,505
36, 714 11,909
88, 504
1,200
25,166
909
416
230
2,320
793
5,283
397
1,881
74,869
556
586
447
2,138
1,497
6,111
419
Chicago..
I o w a ._
Minnesota
Missouri.-. . ..
North Dakota. _
South Dakota.._
Little Rock
Arkansas
.
Louisiana-_
Mississippi
N e w Mexico
Texas . _._
Topeka
. _
San F r a n c i s c o . . . .
Arizona
California- ._
Idaho.
. . .
Montana
Nevada. . _
Oregon..
Utah
Washington
Wyoming
..
.
.
.
257
9,444
134
93
61
683
314
903
20
716
1,686
137
1,549
45, 207
26,618 210,638
2,493
35, 617
683
631
620
2,253
413
2,177
320
178
6,009
18, 708 163,804
205
2,487
66
1,792
51
1,409
2,057
9,588
199
3,216
5,111 21,134
43
1,199
193
Table 9 . — M O R T G A G E RECORDINGS—Estimated volume of nonfarm mortgages recorded
[Dollar amounts are shown in thousands]
Banks and trust
companies
Insurance
companies
Savings a n d l o a n
associations
M u t u a l savings
banks
Individuals
O t h e r mortagees
All mortgagees **
Period
Total
Percent
Total
Total
Percent
Total
Percent
Total
Percent
Percent
Total
Total
Percent
Percent
$3,421,027
32.9
$474,852
25.8
$547,977
5.3 $2,023,015
19.4 $1,257,899
12.1 $10,409,831
100.0
January
February
March
__
April._ _
May_ .
June
_____ _
July.
August
-_
September
__
October
November
December
220,420
217, 621
277,408
315,471
333,192
308,226
314, 779
310,723
290,547
312,055
266,108
254, 477
34.8
35.2
36.2
35.6
34.6
33.6
32.1
31.1
31.3
31.0
30.6
30.4
26,936
26,099
31, 083
33, 974
38,862
39,890
48,101
46, 527
47,424
48,429
42,979
44, 548
4.2
4.2
4.1
3.8
4.0
4.3
4.9
4.7
5.1
4.8
4.9
5.3
139,126
140,890
180,656
213.878
241,330
245, 624
263. 669
273,093
248, 406
275,769
230, 588
232,032
21.9
22.8
23.6
24.1
25.0
26.8
26.9
27.3
26.7
27.4
26.5
27.8
24,401
24, 973
33,914
44,855
51,851
50,123
58,020
53,616
51, 978
57,971
49,334
46, 941
3.9
4.0
4.4
5.1
5.4
5.5
5.9
5.4
5.6
5.8
5.7
5.6
151,601
140, 477
162,986
180,318
187,311
168,889
178,128
184,005
173,310
184,511
163,866
147,613
23.9
22.7
21.3
20.3
19.4
18.4
18.1
18.4
18.7
18.3
18.9
17.6
71,633
68,703
79,926
98,770
111,892
104,662
118,490
131, 257
117, 213
127,946
116,614
110,793
11.3
11.1
10.4
11.1
11.6
11.4
12.1
13.1
12.6
12.7
13.4
13.3
634,117
618,763
765,973
887, 266
964, 438
917,414
981,187
999, 221
928,878
1,006,681
869, 489
836, 404
100.0
100.0
100.0
100. 0
100.0
100. 0
100.0
100. 0
100. 0
100. 0
100. 0
100.0-
1947
January
246,114
29.0
52,155
6.2
230, 492
27.2
44, 761
5.3
160,297
18.9
113,224
13.4
847,043
100. 0
1946
4.5 $2,685,061
Table 1 0 . — G I L E N D I N G — H o m e loans 1
Table 1 1 . — F H A — H o m e mortgages insured
[Dollar amounts are shown in thousands]
[Premium paying; thousands of dollars]
Cumulative through
N o . of a p plications
and reports
Number 2
126, 249
156, 786
209,334
257,986
305. 503
371,142
420, 960
473,784
524,428
570, 883
614, 323
655,962
105,990
118,143
133,972
165, 737
200,231
257, 471
303, 353
356. 804
409,112
455, 293
502, 510
546,466
A m o u n t of
guaranty
and insurance 2
Principal
a m o u n t of
loan *
New
1946: M a r . 30
A p r . 26
Mav31
J u n e 28
J u l y 26
A u g . 30
S e p t . 27
Oct. 25
N o v . 25
D e c . 25
1947 J a n . 25
F e b . 25
$495,385
555, 541
634, 812
804,907
991. 778
1,316, 554
1, 584,444
1,906, 743
2. 217, 347
2,494, 547
2, 782,379
3,051, 728
$214.869
245,046
283,948
364,514
454, 709
610,007
737,342
886,216
1,032, 596
1,165,641
1, 301,681
1,430,914
• Rec »rus of Veterans Administration.
* Total loans reported closed and disbursed. Totals do not include 58,468
loans acted upon and approved for loan closing. Their dollar volume,
$362,298,000, brought the aggregate principal of GI home loans to $3,414,126,000
on February 25.
T i t l e V I (603)
Title II
Period
1946: J a n u a r y
F e b r u a r y . __
_
March, _ _
April
May
June
July
August
___
September
O c t o b e r . . . . . . __
November
December r
1947: J a n u a r y
__
_
__ _
_
__.
Existing
New
Existing
$3,095
3,728
3,760
3, 570
4,406
5,573
6,374
5,668
5,279
6,576
5,354
6.631
$24,275
20,006
24,346
24,160
26, 389
31.551
26,956
20, 831
20.713
26. 553
20,175
21, 390
$9,617
6,267
5.122
6,870
5.988
3,678
4.020
2.959
2,084
2, 475
2,679
5,426
$1,67&
1,241
1,152
983
3,712
1,012
572
960
6^3;
1, 3?5
1.164
2. 60D
7,071
22, 805
5.585
2,355
' Revised.
Table 1 2 . — F H L B A N K S —Lending operations and principal assets and liabilities
("Thousands of Hollars]
L e n d i n g operations,
J a n u a r y 1947
P r i n c i p a l assets, J a n 31, 1947
C a p i t a l a n d principal liabilities,
J a n . 31, 1947
Federal H o m e Loan Bank
Advances
Boston..
New York
P i t t s b u r g h __ _
Winston-Salem
Cincinnati
Indianapolis _
.
Chicago
Des Moines
Little Rock
Topeka..
_
S a n Francisco _
...
._
...
_
.
_.
__
Repayments
Advances
outstanding
Cash*
Government
securities
Capital 2
Consolidated
FHLB
obligations
Member
deposits
Total
assets,
J a n . 31,
1947 1
$610
761
1,387
1,473
564
505
507
320
99
633
1,859
$1, 797
3,281
3,027
9,400
4,721
2,907
7,484
3,530
2,276
1,680
10, 914
$10,841
21, 797
27,497
31, 624
20, 304
21, 746
43. 086
23, 614
14, 429
11, 676
24, 541
$2,046
1,718
2, 915
2,908
2,941
1,410
4,741
691
925
3,740
4,710
$18, 544
32, 718
11, 940
7,219
32, 819
20, 417
15,572
12, 041
11,217
9,037
22, 059
$21,546
30, 287
19, 997
20, 949
29,128
15,880
26,135
15, 779
13, 414
11, 993
27,859
$9. 000
3,500
21,000
17, 500
12, 000
20,000
30,000
17, 500
13, 000
11, 500
14,000
$990
22, 644
1,456
3,411
15, 211
7, 816
7,374
3,145
?45
1,031
9,589
$31. 579
56,455
42, 529
41, 923
56,395
43, 768
63, 606
36, 489
26, 702
24, 564
51, 508
8,718
51,017
251,155
28, 745
193, 583
232. 967
169,000
7% 912
475, 518
D e c e m b e r 1946
51. 241
16, 230
293, 455
39,714
145, 092
231, 975
169,000
70. 248
479, 564
J a n u a r v 1946
17, 715
38, 694
173, 893
30,142
129. 571
219, 367
68, 500
44. 340
334,992
J a n u a r y 1947 ( C o m b i n e d t o t a l )
1 Includes interbank deposits.
2 Capital stock, surplus, and undivided profits.
194
Federal Home Loan Bank Review
Table 1 3 . — I N S U R E D A S S O C I A T I O N S — P r o g r e s s of institutions insured by the FSLIC
[Dollar a m o u n t s are s h o w n in t h o u s a n d s ]
Number j
ofasso- !
ciations
P e r i o d a n d class
of association
ALL
N e t first
mortgages
held
Total
assets
Cash
overnGovernP r i v a t e re- Gm
ent
ment bond purchasable
share
capital
holdings
capital
Operations
Federal
Home
Loan
N e w priNew
Private
B a n k adv a t e inrepurvances m o r t g a g e
vestloans
chases
ments
Repurchase
ratio
INSURED
1946: J a n u a r y
. _
F e b r u a r y . . __|
March _
.1
April
May,.
June _
July
August
September.
j
November
December
FEDERAL
1946: J a n u a r y
February
March
April
June
July
August
September
November
December
1947: J a n u a r y
2,477
2,481
2,485
2,486
2,488
2,490
2,493
2,495
2,497
2,496
2,495
2,496
$6,204,954
6, 274,832
6, 359,998
6,462,376
6, 592, 552
6,743,121
6,810, 626
6,916, 472
7,012, 249
7,114,023
7,183,179
7,318,604
2,500
7,362, 541
1,467
1,468
1,469
1,469
1,471
1,472
1,473
1,473
1,474
1,472
1,471
1,471
3,955, 391
3,999,837
4, 050,719
4,118,076
4, 204,057
4,311,747
4,344,421
4,411,389
4,469,937
4, 537,135
4, 580, 447
4,671,503
1,471
4,684, 549
1,010
1,013
1,016
1,017
1,017
1,018
1,020
1,022
1,023
1,024
1,024
1,025
2, 249, 563
2, 274,995
2, 309, 279
2, 344,300
2, 388,495
2, 431, 374
2, 466, 205
2, 505,083
2, 542, 312
2,576,888
2, 602, 732
2,647,101
1,029
2,677,992
4,051,583
279,543
1,792,418
4,519,248
347,362
1,641,628
4,922,400
289,903
1, 566,979
5, 237,560
376,872
1,458,741
$5,299,668
5,361,314
5,432, 080
5,507,923
5, 589, 795
5,724,893
5,798, 380
5,869, 338
5,922, 507
5,995.695
6, 056, 207
6,193,342
$20,165
19,374
19, 373
19,373
19, 358
19, 358
16,832
16, 306
16,306
16, 305
16,305
16,305
$163,559
154,835
144,111
145,744
159, 546
189,908
187,401
196, 495
216,573
233, 503
238,907
272,904
$169,107
174,954
238, 268
268,706
285, 613
257,175
254,858
255, 273
240.708
254,626
205,776
193,814
$283, 487
182,679
198,176
198,896
196,973
219,825
296,710
207,782
185,754
202,178
172,886
223,646
$205,537
122,099
129, 573
123, 265
116,370
86,017
224,688
140,849
135,144
129, 272
112,127
87,736
72.5
66.8
65 4
62.0
59.1
39.1
75.7
67.8
72.7
63 9
64.9
39.2
6.317.309
13,207
230,766
191.982
359,366
238, 327
66.3
3, 395,108
3,435,482
3, 481,382
3, 532, 406
3,586,501
3, 677,643
3,716, 445
3, 758,827
3, 790,634
3,839,002
3,880,142
3,970,772
15, 250
14, 540
14, 539
14, 539
14,539
14, 539
12, 380
11,956
11,956
11,956
11,956
11,956
124,242
118, 501
109,213
106, 599
115,009
137,605
134, 376
142,018
153,096
164,305
165,077
190,579
109,146
111,927
155,960
174, 468
186, 282
167,552
165,031
165,812
154,105
165,742
131,607
122, 742
190,748
122, 452
132,145
132,092
130, 551
144,470
194,872
136,777
121,872
132,882
113,504
148,106
144, 388
82,173
86,471
81, 241
78,013
55,038
156, 734
95,328
90, 296
84, 518
71,952
55, 346
75.7
67.1
65.4
61.5
59 8
38.1
80.4
69.7
74.1
63.6
63.4
37.4
4,042,186
9,622
159, 585
123,827
235, 491
164, 607
69.9
1,904, 560
1,925,832
1,950,698
1,975, 517
2,003, 294
2, 047, 250
2,081,935
2,110, 511
2,131,873
2,156,693
2,176, 065
2, 222, 570
4,915
4,834
4,834
4,834
4,819
4,819
4,452
4,350
4,350
4,349
4,349
4,349
39,317
36,334
34,898
39,145
44,537
52,303
53,025
54, 477
63, 477
69,198
73,830
82, 325
59,961
63,027
82,308
94, 238
99, 331
89,623
89,827
89,461
86,603
88,884
74,169
71,072
92,739
60, 227
66,031
66,804
66, 422
75,355
101,838
71,005
63,882
69,296
59,382
75, 540
61,149
39,926
43,102
42,024
38,357
30,979
67,952
45, 521
44,818
44, 754
40,175
32, 390
65.9
66.3
65.3
62.9
57.7
41.1
66.7
64.1
70.2
64.6
67.7
42.9
2, 275,123
3,585
71,181
68,155
123,875
73,720
59.5
1
2, 571,919
169,884
1,175, 285
2,886, 641
221,431
1,067,943
3,151,813
180,457
1,004,260
3, 357, 582
243,886
921, 421
STATE
1946: J a n u a r y
February
March
May
June
July
August
September
October
December
1947: J a n u a r y
1, 479,664
109,659
617,133
I, 632, 607
125,931
573,685
I, 770, 587
109, 446
562,719
1,879,978
f 32, 986
537,320
Table 1 4 . — S A V I N G S — S a v i n g s and loan share investments and repurchases
[Dollar a m o u n t s are s h o w n in t h o u s a n d s ]
All associations
Period
1946.__.
New
investments
Repurchases
Net
inflow
$3,143,821 $2,004,878 $1,138,943
I n s u r e d associations
Repurchase
ratio
New
investments
Repurchases
63.8 $2,568,992 $1,612,645
Net
inflow
$956, 347
U n i n s u r e d associations
Repurchase
ratio
62.8
New
investments
Repurchases
Net
inflow
$574, 829
$392, 233
$182, 596
Repurchase
ratio
January
February
March
April
May
June
July
August
September...
October
November...
D e c e m b e r . _.
334, 961
220, 469
243,363
248, 077
246, 713
269, 694
356, 936
255, 254
230, 023
250,516
215,171
272, 644
244,619
150, 656
158, 627
155, 455
147, 675
112,144
271, 568
176,823
169. 863
162,356
142, 445
112, 647
90, 342
69, 813
84,736
92, 622
99, 038
157, 550
85, 368
78, 431
60,160
88,160
72. 726
159, 997
73.0
68.3
65.2
62.7
59.9
41.6
76.1
69.3
73.8
64.8
66.2
41.3
283, 487
182, 679
198,176
198, 896
196, 973
219, 825
296, 710
207, 782
185, 754
202,178
172,886
223, 646
205, 537
122, 099
129, 573
123, 265
116,370
86, 017
224. 686
140, 849
135, 114
129, 272
112,127
87, 736
77, 950
60, 580
68, 603
75, 631
80, 603
133,808
72. 024
66 933
50. 640
72. 906
60. 759
135.910
72.5
66.8
65.4
62.0
59.1
39.1
75.7
67.8
72.7
63.9
64.9
39.2
51,474
37, 790
45.187
49,181
49, 740
49, 869
60, 226
47. 472
44, 269
48,338
42. 285
48 998
39,082
28. 557
29. 054
32,190
31, 305
26.127
46. 882
35,974
34.749
33,084
30.318
24.911
12, 392
9,233
16,133
16, 991
18. 435
23, 742
13. 344
11,498
9,520
15, 254
11,967
24,087
75.9
75.6
64.3
65.5
62.9
52.4
77.8
75.8
78.5
68.4
71.7
50.8
1947 J a n u a r y .
421, 415
281,289
140,126
66.7
359,366
238,327
121,039
66.3
62,049
42,962
19,087
69.2
Table 17— GOVERNMENT SHARES
Tabic 16.—HOLC—Mortgage loans outstanding and properties on hand
Investments in member associations 1
[Dollar amounts are shown in thousands]
[Dollar amounts are shown in thousands]
Properties owned
D u e on
original
loans
Month
D u e on
property
sold
T y p e of operation
Book
value
Number *
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
378, 248
82, 571
11, 267
724,306
344,311
9,157
1,446
550, 745
538,330
524, 751
510, 598
496, 662
484,416
470, 553
458,878
447, 522
435, 748
425, 956
416, 038
279,977
274, 666
268, 894
262, 752
256, 498
250, 888
244,905
239, 683
234, 594
229,153
224, 838
220, 425
1,133
1,004
934
769
736
685
638
617
606
516
384
315
212
186
175
147
136
127
122
113
103
89
68
54
1944: J a n u a r y
1945: J a n u a r y
_
1946: J a n u a r y
February.March.,
April
May_
June__ .
July
August
S e p t e m b e r . __
October
November
December
___
_.
405, 495
1947: J a n u a r y
215, 917
H o m e Owners' Loan Corporation
Treasury
F e d e r a l s 2 Federals
October 1935-December 1946:
Applications:
Number
Amount
Investments:
Number
Amount
Repurchases
__. -_ _- .._
N e t outstanding investments. _
F o u r t h q u a r t e r 1946:
Applications:
Number
Amount
Investments:
Number
Amount
Repurchases
Total
1,862
$50, 401
4,710
$213, 701
995
$66,495
5,705
$280,196
1,831
$49,300
$48,150
$1,150
4,243
$178, 401
$167, 558
$10,843
738
$45,456
$41,107
$4,349
4,981
$223,857
$208, 665
$15,192
$1
$1
__
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.
38
208
State
members
i Includes re-acquisitions of properties previously sold.
Table 18.—FHLBS—Membership in the Federal Home Loan Bank System
[Dollar amounts are shown in thousands]
1946
No.
All m e m b e r s
-
_ _
-
Savings a n d l o a n associations
Uninsured state
-
--
_-.
M u t u a l savings b a n k s - _ . _
--
_--
September
December
T y p e of i n s t i t u t i o n
--
_ . _
-
_
_
Assets
1944
December
December
No.
Assets
No.
1945"
Assets
Assets
No.
3,698 $10,049, 758
3,702
$9, 676,092
3,697
$8, 730,156
3.699
$7,332, 216
3, 661
8, 990, 394
3,665
8, 628, 457
3,658
7, 681. 494
3,659
6, 422, 762
1,471
1,021
1,169
4, 671, 503
2, 639, 592
1, 679, 299
1,474
1,019
1,172
4, 469, 937
2, 534, 9C0
1, 623, 620
1,467
1,004
1,187
3, 921, 037
2,195, 517
1, 564, 940
1,464
998
1,197
3,167, 514
1,821,611
1, 433, 637
25
641,197
25
630, 039
25
594, C15
22
485, 747
12
418,167
12
417, 596
14
454, 647
18
423, 707
_ _ _
r Revised.
Table 19.—FORECLOSURES—Estimated
Table 2 0 . — S A V I N G S — H e l d by institutions
nonfarm real-estate foreclosures, b y
Federal Home Loan Bank District
Cumulative
(12 m o n t h s )
Foreclosures
Federal Home Loan
B a n k District
UNITED STATES
Boston
_
New York
Pittsburgh
_
Winston-Salem
Cincinnati
Indianapolis
Chicago
Des Moines
Little Rock
Topeka
San Francisco
--
-
-
Dec.
1946
Nov.
1946
1,154
1,285
59
286
264
125
77
18
48
39
56
112
70
59
243
352
154
109
25
49
78
12
144
60
Oct.
1946
[Thousands of dollars]
Percent
change
1946
1945
953
12,025
14,436
-16.7
55
265
136
93
69
19
48
37
45
138
48
780
3,024
2,517
1,388
899
265
534
500
287
1,049
782
1,343
3,393
2,637
1,569
1,624
473
652
666
408
939
732
-41.9
-10.9
-4.6
-11.5
-44.6
-44.0
-18.1
-24.9
-29.7
+11.7
+6.8
Mutual
savings
banks 2
Insured
commercial
banks 3
$3.922, 705 $12, 428,026 $20, 543,888
4,333, 739 13,331,811 23,362,909
1944: J u n e
December.
1945: M a r c h __
J u n e _.
September
D e c e m b e r . _..
4, 538,426
4,786,912
4,981,809
5, 219, 910
1946: M a r c h ._
June
September
D e c e m b e r , - ...
5,432,080
5, 724,893
5, 922,907
6,193, 342
__
14,378,413
26,363,106
15,332, 202
29, 295,108
16, 224, 971
31,504,915
16, 812, 524
32,761,111
Postal
savings 4
$2,034,136
2,342, 297
2,513,197
2,659, 575
2,836,097
2,933,189
3,043,000
3,119, 656
3,207,457
3,284. 255
i Private repurchasable capital as reported to the F H L B Administration.
Month's Work. All deposits.
F D I C . Total time deposits of individuals, partnerships and corporations.
4
Balance on deposit to credit of depositors, including unclaimed accounts.
2
3
Federal Home Loan Bank Review
196
Insured
savings a n d
loans i
E n d of period
U. S. G O V E R N M E N T
PRINTING
OFFICE: 1 9 4 7
FEDERAL
HOME LOAN BANK
DISTRICTS
BOSTON
BOUNDARIES OF FEDERAL HOME LOAN BANK DISTRICTS
FEDERAL HOME LOAN BANK CITIES
BRANCH CITIES
OFFICERS OF FEDERAL HOME LOAN BANKS
BOSTON
B. J. ROTHWBLL, Chairman; E. H. WEEKS, Vice Chairman; W. H . N E A V E S ,
President; H. N . FAULKNER, Vice President and Assistant Treasurer; L. E .
DONOVAN, Secretary-Treasurer; BEATRICE E. HOLLAND, Assistant Secretary;
INDIANAPOLIS
H. B. WELLS, Chairman; FERMOR S. CANNON, Vice Chairman and Vice
President; FRED T . GREENE, President-Secretary; G. E . OHMART, Vice
President-Treasurer; SYLVIA F . BROWN, Assistant Secretary; CAROLINE F .
PHILIP A. HENDRICK, Counsel.
W H I T E , Assistant Treasurer; HAMMOND, BUSCHMANN & ROLL, Counsel.
NEW YORK
GEORGE MACDONALD, Chairman; FRANCIS V. D . LLOYD, Vice Chairman;
NUGENT FALLON, President; ROBERT G. CLARKSON, Senior Vice President;
DENTON O. LYON, Vice President and Secretary; HAROLD B . DIFFENDERFER,
^fce President and Treasurer; JOSEPH F . X. O'SULLIVAN, Assistant Secretary
and Office Attorney.
PITTSBURGH
E . T . TRIGG, Chairman; C. S. TIPPETTS, Vice Chairman; RALPH H . RICHARDS, President; G. R. PARKER, Vice President-Secretary; D A L E PARK*
Treasurer; WILLIAM S. BENDER, Counsel.
WINSTON-SALEM
H. S. HAWORTH, Chairman; E. O. BALTZ, Vice Chairman; O. K. LAROQUE #
President-Secretary; Jos. W. HOLT, Vice President-Treasurer; SPRUILL
THORNTON, Counsel.
CINCINNATI
HOWARD L . BEVIS, Chairman; W. M E G R U E BROCK, Vice Chairman; W. D .
SHULTZ, President; W. E . JULIUS, Vice President-Treasurer; J. W. WHITTAKER, Vice President; E . T . BERRY,
Secretary; '.TAFT,
STETTINIUS &
HOLLISTER, Counsel.
CHICAGO
C. E . BROUGHTON, Chairman; H. G. ZANDER, J R . , Vice Chairman; A. R .
GARDNER, President; J. P . DOMEIER, Vice President and Treasurer; CONSTANCE M . WRIGHT, Secretary; LAURETTA
GERARD M . UNGARO, Counsel.
ENDE,
President;
Treasurer;
D E S MOINES
ROBERT E. L E E HILL, Chairman; R. J. RICHARDSON, President and Secretary; W. H . LOHMAN, Vice President and TREASURER; A. E. MUELLER,
Assistant Treasurer; J. M . MARTIN, Assistant Secretary; ROBERT H. BUSH,
Counsel.
LITTLE ROCK
B. H. WOOTEN, Chairman; W. P . GULLEY, Vice Chairman; H. D. WALLACE,
President-Secretary; J. C. CONWAY, Vice President; W. F . TARVIN
Treasurer.
TOPEKA
W M . M . JARDINE, Chairman; HENRY A. BUBB, Vice Chairman; O. A.
STERLING, President and Secretary; R . H . BURTON, Vice President and
Treasurer; JOHN S. DEAN, Counsel.
SAN FRANCISCO
BEN A. PERHAM, Chairman; W M . A. DAVIS, Vice Chairman; GERRIT
VANDER
QUAM, Assistant
G U Y E . JAQUES,
Vice President;
IRVING
BOGARDUS, Vice President and Treasurer, Manager of Portland Branch;
A. C. NEWELL, Vice President, Manager of Los Angeles Branch; E . M .
JENNESS, Assistant Secretary; E . E . PEARSON, Assistant Secretary; KATHLEEN MCCLIMENT, Assistant Secretary; L. F . NOLAN, Assistant Treasurer;
G. H. MELANDER, Assistant Treasurer; VERNE DUSENBERY, Counsel.
@FedFRASER