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Vol. 4
3X3k>
No. 8
FEDERAL
HOME LOAN BANK
REVIEW
MAY
1938
ISSUED BY
FEDERAL HOME LOAN BANK BOARD
WASHINGTON D.C.
FEDERAL
CONTENTS FOR MAY
SPECIAL
LOAN
1938
ARTICLES
Page
272
An analysis of the building cost index
BANK
Budgets for the savings and loan industry
The Housing Market—a review
277
280
Clear and understandable balance sheets
Business reviews
283
287
REVIEW
STATISTICS
Residential construction and home-financing activity
Published monthly by the
FEDERAL HOME L O A N
BANK BOARD
John H. Fahey, Chairman
T. D. Webb, Vice Chairman
William F. Stevenson
F. W. Catlett
W. H. Husband
FEDERAL HOME LOAN
BANK SYSTEM
FEDERAL SAVINGS AND LOAN
ASSOCIATIONS
FEDERAL SAVINGS AND LOAN
INSURANCE CORPORATION
290
290
292
Federal Savings and Loan System
Federal Home Loan Bank System
293
293
Statistical tables
Nos. 1, 2: Number and estimated cost of new family dwelling units
No.
Nos.
No.
No.
3:
4,
7:
8:
. . . .
294
294
Indexes of small-house building costs
296
5, 6: Estimated lending activity of all savings and loan associations . . 297
Monthly lending activity of reporting savings and loan associations . . 299
Index of wholesale price of building materials
300
No. 9: Institutions insured by the Federal Savings and Loan Insurance
Corporation
No. 10: Monthly operations of State-chartered insured associations , . . .
No. 11: Monthly operations of Federal savings and loan associations . . . .
Nos. 12, 13: Federal Home Loan Bank System
Nos. 14, 15, 16: Home Owners' Loan Corporation
HOME OWNERS' LOAN
CORPORATION
w
288
Indexes of small-house building costs
Monthly lending activity of savings and loan associations
Federal Savings and Loan Insurance Corporation
301
301
302
302
303
REPORTS
R e s o l u t i o n s of t h e B o a r d
•
D i r e c t o r y of m e m b e r , F e d e r a l , a n d i n s u r e d i n s t i t u t i o n s a d d e d d u r i n g M a r c h - A p r i l .
305
305
SUBSCRIPTION PRICE OF REVIEW. The FEDERAL HOME LOAN BANK REVIEW is the Board's medium of communication with member institutions of the
Federal Home Loan Bank System and is the only oflQcial organ or periodical publication of the Board. The REVIEW will be sent to all member institutions without
charge. To others the annual subscription price, which covers the cost of paper and printing, is $1. Single copies will be sold at 10 cents. Outside of the United S tates,
Canada, Mexico, and the insular possessions, subscription price is $1.40; single copies, 15 cents. Subscriptions should be sent to and copies ordered from Superintendent
of Documents, Government Printing Office, Washington, D . C.
APPROVED BY THE BUREAU OF THE BUDGET.
62315—38
1
AN ANALYSIS OF THE BUILDING COST INDEX
During the past two years the cost of building a standard 6-room frame
house has increased $476 as an average for the United States as a whole.
This article reveals for the first time the factors causing that rise.
B
S I N C E December 1935, the agencies of the
Federal Home Loan Bank Board have been
collecting and tabulating data on the cost of building a standard house in a selected group of cities in
all parts of the country. The purpose of this index
of residential construction costs is to provide much
needed data on the trends of costs in individual
cities. Through fluctuations in the total cost of
the standard house, financing agencies and others
may judge trends in the actual cost of building and
may compare the trends in their specific locality
with those in others.
During the two years of operation, the building
cost index has permitted such a local analysis, b u t
at the same time has revealed a consolidation of
local fluctuations in the form of a general trend.
Thus, it served to point out the rapid rise in residential building costs during the latter part of 1936
and the first half of 1937, as well as the subsequent
decline.
I t was originally intended to analyze in detail the
factors causing those cost fluctuations after the
data had proved to be reliable. This, the R E V I E W
is now prepared to do. General trends of material
and labor costs by Bank Districts and for the
United States as a whole, as revealed by the index,
will be discussed in this article. Later articles will
present more detailed cost data.
The analysis of any index is largely conditioned
by its structure and the method used in collecting
the information: The foundation of the building
cost index is a standard specification sheet covering
about 110 material items and 9 major labor groups
used in the construction of a small house. All essential materials are listed on these specification sheets
to make the index reflect actual costs of small-house
construction, b u t some minor materials whose fluctuations are mirrored by more general groups have
been omitted in order that the collections might not
become too cumbersome. 1
272
Using these specification sheets, the field men of
the Construction Division of the Home Owners'
Loan Corporation, most of whom have had actual
experience in residential building or cost estimating,
collect the necessary data from the same group of
contractors and operative builders in the same
manner as though the standard house actually was
to be built. Thus, the index reflects the cost of
materials to the builder delivered a t the site (delivery is limited to one mile) and the wages actually
paid. A report for each city is made once every
three months as the 92 cities are divided into three
groups, each group reporting in turn.
After the necessary local data have been obtained,
the reports are sent to Washington, checked carefully
and summarized. Five percent is added to the labor
cost for compensation insurance, 2 percent to total
costs for operating expenses, and 10 percent for the
builder's profit. The result is the total cost as reported
each month in the R E V I E W (see Table 3, page 296).
LIMITATIONS OF I N D E X
Aside from the possibilities of error in collection
and tabulation, which have been greatly minimized,
there are certain limitations inherent in the building
cost index, the disregard of which may lead to false
analogies. First, the specification sheets permit
some variation in the use of materials so that local
costs may not be unduly distorted by the specification of some item not used in local practice: one
which would necessitate a special price. I n such a
case, the field men are requested to substitute a
material of equal grade found in local stock. Consequently, the total cost in one city cannot be directly
compared with the total cost in another city. However,
the trends of costs may be quite logically compared as
* For a more complete discussion of the basis of the index and a description of
the specifications of the standard house, see the January and February 1936
FEDERAL HOME LOAN BANK REVIEW.
A limited number of reprints of the
two articles in those issues are available and will be sent upon request to the
Editor.
Federal Home Loan Bank Review
quotations must always be on the same materials
after the original selection is made.
A second limiting factor is that the cost does not
represent the cost of a completed house. Items
such as planting and grading have not been included; first, because the inclusion of such items
in quoted prices depends largely on the locality and
second, because of the difficulty of getting representative estimates of such work. Obviously, the cost
of the standard house cannot be compared with a
house actually built even though the size and design
were similar. Slight variations in the use of materials and in construction methods might materially
affect the total cost.
The same cost specification sheet is used all over
the country and, consequently, the stated costs do
not account for differences in local styles and building customs. Thus, a quotation for a heating plant
is requested in Birmingham as well as in Boston.
This facilitates a comparison of trends but tends to
invalidate a comparison with structures actually
built in those localities.
The limitations which apply to the total cost index
are even more important in a breakdown of the ma-
terials and labor involved. The material-labor ratio
established for the building cost index was determined after careful study and is thought to be reasonably accurate as far as the standard house is concerned, but it cannot be compared with the ratio for
some other house; the variable factors which determine that ratio are too many—such as the design
of the house and the kinds of materials used. A
study made by the Bureau of Labor Statistics in
1931 and 1932 revealed that the ratio of labor to
the combined total of labor and materials varied
from 39.1 to 56.2 in a single city.
This study covered six different single-family
houses and two apartment houses actually built in
each of 15 cities, and consequently reflects how much
actual expenditures for materials and labor can vary
in different dwellings. I t is significant that the material-labor ratio of the building cost index comes
within the limits of the Labor Department's survey
in 8 of the 12 cities covered by both, in spite of the
fact that the proportion of material and labor used
in the former was standardized while in the latter it
varied according to the type of dwelling built. The
proportions are shown in the accompanying table.
Material-labor ratio of building cost index compared with Department of Labor survey for selected cities1
[Sources: Federal Home Loan Bank Board; Handbook of Labor Statistics, 1936 Edition]
Building cost index
(1936 average)
City
Materials
Materials
Atlanta, Ga
Boston, Mass
Chicago, 111
Dallas, Tex
Duluth, Minn
Indianapolis, Ind
Little Rock, Ark
New Orleans, La
Roanoke, Va
St. Louis, Mo
Salt Lake City, Utah
Seattle, Wash
Bureau of Labor Statistics, Department
of Labor
(survey in 1931-1932)2
69.5
59.3
56.7
66.9
70.8
66. 1
70.3
71.8
72.2
57.2
65.6
63.2
Labor
Labor
30.5
40.7
43.3
33. 1
29.2
33.9
29.7
28.2
27.8
42.8
34.4
36.8
Highest
percentage
Lowest
percentage
Highest
percentage
73.8
60.9
65.9
80.2
70. 1
72.3
71.2
73. 1
69.3
70.4
67.9
68.5
63.5
43.8
60.3
68.8
62.3
56.3
62.3
60.8
59.6
55.7
61.8
55.5
36.5
56.2
39.7
31.2
37.7
43.7
37.7
39.2
40.4
44.3
38.2
44.5
Lowest
percentage
26.2
39. 1
34. 1
19.8
29.9
27.7
28.8
26.9
30.7
29.6
32.1
31.5
1
By "material-labor ratio" is meant the percentage that material or labor is of their combined total. Other costs such as compensation insurance, operating expenses, and builder's profit are not included in that total but are included in the total cost of the
standard
house as shown in Table 3, page 296.
2
Based on records kept by representative primary contractors and subcontractors who did work on selected buildings in
these cities. Data were obtained for six ordinary dwelling houses and two apartment houses in each city.
"The cost figures . . . represent only the actual cost of the building from the time excavation started. They do not include
overhead expenses, profits, cost of land, finance charges, or architect's fees. The cost of material is its actual cost as delivered
on the job, including freight and hauling. The labor costs are actual wages paid to labor on the job and do not include any
shop labor. . . . " Handbook of Labor Statistics, 1936, page 220.
May 1938
273
According to the Labor survey, the proportion of
costs going for materials varies from 80.2 percent,
the maximum in Dallas, Texas, to 43.8 percent, the
minimum in Boston, Massachusetts. However,
these are extreme. The Labor Department survey
of 15 cities showed for the combined total of material
and labor costs an average of 62.7 percent as material costs and 37.3 percent as labor costs, while
the average for all the cities covered by the building
costs index was: material costs, 66 percent, and
labor costs, 34 percent. These represent the ratios
to the total of materials and labor, not to the total
cost of a house because overhead, insurance, architect's fees, and builder's profit must also be added.
Although materials are shown to be the major
part of the ratio, there is, of course, an additional
labor cost hidden in the cost of the materials themselves. This cost cannot be computed but should be
considered in analyzing cost fluctuations.
twice as much as the labor involved at the site. Consequently, in terms of percentages, labor costs have
risen more than material costs, as Chart C shows.
In January 1936, the average cost of materials for
the 92 cities covered was $3,214, and the average
cost of labor $1,577. By August 1937, the peak
month for both materials and labor, the former had
reached $3,603—a rise of nearly $400—and the latter
$1,801—a rise of $224. Thus, although material
costs were responsible for nearly twice as much of the
dollar increase in the cost of building the standard
house as the cost of labor at the site, direct labor
costs rose 14.2 percent as compared to an increase in
material costs of 12.1 percent.
CHART A
MATERIAL AND LABOR COSTS FOR CONSTRUCTING
A STANDARD SIX-ROOM FRAME HOUSE
[Source: Federal Home Loan Bank Board Averages of building
costs published monthly in the F. H L.B. Review]
«.0°01| | | | | | | | | I I I I I I I M I I I I I I I I I I I I I I I I I II4.000
3,500
ANALYSIS OF MATERIAL AND LABOR COSTS
Because residential building costs are affected so
much by local factors, their fluctuations are almost
entirely local—although general trends are followed
with some uniformity. Consequently, the primary
value of the index is to show the trend of costs in specific localities, but a secondary value has been built up
in the compilation of the index over a 2-year period:
the movement of costs in the individual cities has
demonstrated that a general pattern has been followed which can be presented compositely—as long
as the background of individual fluctuations is not
forgotten.
As the reporting cities are divided into three
groups, each group reporting four times a year in
different months, the composite picture for the
United States as a whole has been developed on the
basis of a 3-month moving average. Thus, the
March figure was derived by averaging February,
March, and April reports, the April figure by averaging the March, April, May reports, and so on.
This tends to smooth out monthly fluctuations.
Chart A shows such a moving average of material
and labor costs for constructing the standard 6room frame house, on which the index is based, plotted
in terms of actual dollars. As this chart shows, the
larger part of the dollar increase in costs was due to
materials but the decline in costs since August 1937
was also due almost entirely to declining material costs.
It must be remembered, however, that the materials
used to build the standard house cost, on the average,
274
3,000
2,500
2.500
^
1
Q
2,000
2,000 Q
1,500
J^MAMJJASONDJFMAMJJASONDJFMAMJOASOND
1936
1937
1938
Although material costs rose during 1936, a sharp
increase took place between October 1936 and May
1937, which accounted for a large part of the increase
in total costs. The rise in labor costs has been
steadier, but with some acceleration during the same
7-month period.
Since August 1937, average material costs have
declined $129 while labor costs have declined only $8.
This shift has counteracted the more drastic dollar
rise of material costs so that the material-labor ratio
was 66-34 in February 1938, or almost the same as
the 67-33 ratio for January 1936.
Federal Home Loan Bank Review
The period of sharply rising material costs corresponds to the period of increase in the general wholesale commodity price index of the Bureau of Labor
Statistics. According to that index, the price level
rose 8.0 percent from 81.5 in October 1936 to 88.0
in April 1937, while according to the building cost
index, building material costs increased 9.4 percent.
Public attention was turned to the rise in building
costs, not only because it was sharper than that of
general prices (wholesale building materials are included in the commodity price index) but because
the way to recovery seemed to be through a revival
of the construction industry.
The relation between the Bureau of Labor Statistics' wholesale building material price index and the
cost of materials used in building the standard house
is shown on Chart B. January 1936 has been taken
as the base of 100 for both series.
CHART B
TRENDS OF WHOLESALE BUILDING MATERIAL PRICES AND MATERIAL
COSTS FOR CONSTRUCTING A STANDARD FRAME HOUSE
[Source: U.S. Dept of Labor and Federal Home Loon Bonk Board.
Standard house material costs are at site.]
IISII
1nnnn1n 1nn:
I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I'l
to
LI
:
PR
IC£i
r
/
ss
"
I
|lU5
CHANGE BY DISTRICTS
m
Jf
VtA ri R 41 (iaSTS
S;
105
a
rr*%p
J F M A M J J A S O N D J FMAMJ J AS O N O J F M A M J J ASONO
1936
1937
1936
This chart shows the time lag between fluctuations
in wholesale building material prices and the prices
of materials delivered to the site of construction, as
paid by operative builders. It also shows that
wholesale prices are subject to greater fluctuations
than the cost of materials for the standard house.
This may in part be due to the fact that the former
includes all types of building materials, some of which
are not used in small-house construction. Kecently,
the decline of wholesale prices has been sharper than
the decline of the standard house material prices so,
May 1938
on the basis of past performances, a further decline
in the material costs of the standard house may be
expected.
In Chart C, the actual dollar reports of material
and labor costs have both been converted to an
index base to show the percentage changes. This
chart shows trends of costs. I t is only necessary to
compare it with Chart A to realize that it does not
mean that one group of costs is higher than another,
but merely that one group has increased more than
another from a given point, the given point being
January 1936 when both material and labor costs
were made equal to 100.
On the index base of 100, labor costs in February
1938 were 114.0 and material costs 109.6. They had
risen almost at the same rate until May 1937 when
materials began to level off. By the August peak,
labor costs were 14.2 percent and material costs were
12.1 percent above the January 1936 base of 100.
Material costs have decreased 3.6 percent since that
peak and labor costs 0.4 percent.
The 12 small charts show the fluctuations of
material and labor costs by Federal Home Loan
Bank Districts. The reports from each District are
made four times a year. In only two of the Districts
(Numbers 1 and 7) have material costs risen more
than labor costs from January 1936. However, in
Districts 4, 6, and 8, labor costs rose only slightly
more than did materials from the beginning of 1936.
Between the last two reporting periods the cost of
materials has declined in every Federal Home Loan
Bank District, while labor costs have declined in
five Districts, remained unchanged in one District,
and have increased in six Districts.
There was a general increase in both material and
labor costs from the beginning of the reporting periods
to the peak during the summer of 1937. Since that
time material costs have declined in every Federal
Home Loan Bank District while labor costs have
declined in only five Districts. Those Districts
where the decline in labor costs was sharpest were
those where the previous increase in costs was the
most drastic.
275
CHART C
TREND OF MATERIAL AND LABOR COSTS
FOR CONSTRUCTING A STANDARD FRAME HOUSE
UNITED STATES AND FEDERAL HOME LOAN BANK DISTRICTS
[Source: Federal Home Loan Bank Board. Based on building costs published monthly in F. H.L.B. Review]
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130
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MATERIALS
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Jan.1936
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1937
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1936
276
90
1937
Federal Home Loan Bank Review
BUDGETS FOR THE
SAVINGS AND LOAN INDUSTRY
The flexibility of modern budgetary practice is indicated by three illustrative budgets for savings and loan associations, developed to suggest
an approach which might be made to particular institutional problems.
The method of preparing and adjusting a budget for savings and loan
operation will be presented in detail in the concluding article of this
series in June. The first article, discussing the progress made in budgeting practice by manufacturing industries and financial institutions,
appeared in the April REVIEW
•
T H E R E is one question about budget practice
which officers of savings and loan associations
often ask: Can a budget be used in an institution
confronted with a particular operating problem which
makes its pattern of operation much different from
that of a typical association? From observation of
the operations of a large number of savings and loan
associations, the Office of the Governor of the
Federal Home Loan Bank System has found that it
is practical in all cases to develop a satisfactory
budget which will take into consideration the individual problems which an association is facing.
Three examples are given of budgets adapted to
three entirely different operating situations. The
problems which are taken are considered typical of
problems which many associations are meeting today.
These budgets are intended to be simply illustrative
of general trends observed in a careful study of the
records of a large number of associations over the
entire country. Managers who are particularly
interested in typical operating budgets will find
additional information in Bulletin No. F - 3 of the
Federal Home Loan Bank of New York, published
in August 1937. This bulletin was based upon a
comprehensive study of the methods employed by
successful savings and loan associations, and contained typical operating budgets for full-time
operation of associations with assets of $200,000 to
$5,000,000. The details of the items making up the
operating expenses were given only as suggestions,
with the qualification that they would have to be
varied according to local conditions.
I n December 1937 the Federal Home Loan Bank
of Chicago made available to its members a detailed
May 1938
study of the operating expenses and balance sheets of
Federal savings and loan associations in Illinois.
This material was compiled from the Bank's analysis
of the annual reports for 1936, and the Bank was
primarily interested in providing factual material
for the use of savings and loan managements in
dealing with their budgetary problems.
The budgets discussed in this article are not
recommended as models, nor is it contended that
the various operating ratios will hold good for all
associations confronted with approximately similar
problems. They are used merely to illustrate the
flexibility of modern budgetary practice with the
thought that they may suggest an approach to
particular institutional problems. The method used
in building these budgets will be described in detail
next month in the concluding article of this series.
N O T E S ON THE T H R E E ILLUSTRATIVE BUDGETS
Certain general principles apply to each of the
three illustrative budgets. The items which are
listed for each budget are numbered to correspond
exactly with the items in the standard form of annual
report. In each case, an arbitrary figure of 5 percent of total assets has been estimated as nonearning assets. Included in this item of non-earning
assets is stock in the Federal Home Loan Bank of
which the association is a member, but earnings
from this stock are shown as dividends at an annual
rate of 1 percent. Loan fees (Item 2) have been
pro-rated on a 5-year basis, taking 10 percent into
earnings each 6-month period, with the total amount
of loan fees based upon the estimated volume of
loans made during the year. Under the item "gen-
277
eral reserves", the Federal insurance reserve is increased by the amount of the annual requirement
of three-tenths of 1 percent of insured accounts.
Where possible, transfer has also been made to the
general reserve for contingencies. Dividends are
based upon the amount of share account investments. Share investment is less than total assets
by reason of Federal Home Loan Bank advances
and reserves. In every case, interest paid upon
Federal Home Loan Bank advances has been
figured at 3 percent.
T H E T H R E E ILLUSTRATIVE BUDGETS
Budget No. 1 has been chosen to show the probable
operating income and expense of a typical normal
association with assets of $250,000. I t is assumed
that this association receives interest on its mortgage
loans of $237,500 at an average annual rate of 5%
percent and t h a t it pays dividends to its shareholders
on $200,000 of share capital at the rate of 3% per
centum per annum.
Budget No. 2 reflects the expected operating
trends of a rapidly growing association with assets
of $750,000. Interest earned on mortgage loans
amounting to $712,500 will average 5K percent for
the year with 100-percent collections. Loan fees are
2% percent on $200,000 of new loans and dividends
are paid to shareholders at the rate of 3% per centum
per annum on $600,000 of share accounts.
Budget No. 3 illustrates the way in which an association with assets of $1,000,000 but seriously handicapped because of owned real estate in the amount
of $300,000, uses a budget in attempting to meet its
problem. The return from real estate owned
amounts to only 2% percent, but the association receives interest on $650,000 in mortgage loans at the
rate of 6 percent and has additional income from the
Illustrative annual budgets for three savings and loan associations
No. 1, normal
association, assets $250,000
No. 2, rapidly
growing association, assets
$750,000
No. 3, large volume of owned
real estate ($300,000), assets
$1,000,000
$39, 187 (5/ 2 %)
1,000 (2/ 2 %)
$39, 000 (6%)
750 (2Ji%)
7,500 (2H%)
200
47, 450
GROSS OPERATING INCOME
1.
2.
5.
7.
9.
II.
Interest
Loan fees
N e t income from real estate ownecL
Dividends
Gross operating income
$13,062 (5V2%)
50
13, 112
L E S S OPERATING E X P E N S E
10. Compensation
13. Rent, light, heat, etc
15. Furniture and fixtures
16. Advertising
17. Stationery, printing, and office supplies
18. Telegraph, telephone, postage, etc
19. Insurance and bond premiums
20. Federal insurance premium
21-22. Examination and audit
23. Organization dues
24. Other operating expense
25. Total operating expense
_>.
III. N E T OPERATING INCOME BEFORE INTEREST AND OTHER CHARGES..
IV. L E S S INTEREST CHARGES
On advances from F. H. L. B. and borrowed money
V.
N E T OPERATING INCOME
Percent operating expense to gross incomePercent operating expense to net assets
2,000
400
250
393
100
50
100
300
150
75
144
3,962
9,150
(%to
Item 9)
15.2
3.0
1.9
3.0
0.8
0.4
0.8
2.3
1. 1
0.6
1. 1
30.2
69.8
150
40, 337
6,000
1,400
500
2,000
400
150
400
925
500
150
512
12, 937
27, 400
(%to
Item 9)
14.9
3.4
1.2
5.0
1.0
0.4
1.0
2.3
1.2
0.4
1.3
32. 1
67.9
(%to
Item 9)
8,000
16.9
1,600
3.4
500
1. 1
2,200
4.6
400
0.8
200
0.4
450
0.9
1,250
2.6
600
1.3
175
0.4
625
1.3
16, 000
33.7
31, 450
66.3
1,350
7,800
4,200
23, 200
6,000
25, 450
30.2
1.6
32. 1
1.7
33.7
1.6
D I S T R I B U T I O N OF INCOME
General reserves:
Federal insurance reserve (required)
Other general reserves (for contingencies).
Dividends
Total distribution
B A L A N C E TO UNDIVIDED PROFITS
278
600
100
7, 000 (3H%)
7,700
100
1,800
200
2 1 , 0 0 0 (3tf%)
23, 000
200
2,310
40
23, 100
25, 450
0
(3%)
Federal Home Loan Bank Review
pro-rated portion of loan fees, which amount to 2%
percent of the $150,000 in mortgage loans made
during the year. The association is fortunate in
being able to secure sufficient private investments
at a dividend rate of 3 per centum per annum.
Dividends are paid on $770,000 in share account
investments.
I t is apparent that there is not a wide variation
between the 30.2 percent which is the ratio of operating expense to gross income in the case of Budget
No. 1 and the 33.7-percent ratio shown in Budget
No. 3. The ratio of operating expense to net assets
also remains fairly stable in these three examples at
1.6 percent to 1.7 percent. However, the experience
of a large number of associations does indicate that
although particular operating problems will alter the
ratio of operating expense to gross income for any
item and also the ratio of operating expense to net
assets, associations not confronted with any unusual
problems find that as the size of an institution
increases, the ratio of operating expense to gross
income decreases gradually. The ratio of operating
expense to net assets also declines gradually.
ANALYSIS OF SIGNIFICANT OPERATING ITEMS
Relation oj interest rates to the budget (Item 1).—
Associations No. 1 and No. 2 plan on an average
5K-percent interest return on mortgage loans, taking
into account the rate on loans insured by the Federal
Housing Administration together with that on loans
not insured.
Association No. 3 finds that it is able to secure an
ample volume of loans at an average interest rate
of 6 percent. The variable interest rate plan may
be used, but in budgeting the average rate is taken
as the basis for estimates.
Real estate (Item 5).—Association
No. 3 has
$300,000 in real estate which is earning only 2% percent. The budget for this association, therefore,
provides for additional compensation to be paid to
a real estate salesman and for additional advertising
expenditures in order to dispose of the property. In
the case of a particular problem of this nature, it
has been found practical to prepare a budget in
addition to the regular budget, covering the estimated reductions in the real estate account which
are to be made during the year in order to relieve
the association of this problem. During the period
of disposition of this real estate, many associations
have attempted to follow a planned program to in-
May 1938
62315—38
2
crease the net income from owned real estate by
concentrating selling effort on the low-income producing properties. In some cases, particularly when
dealing through a real estate salesman or broker,
associations have divided their real estate into three
classes of property—Class A, the properties on which
they were receiving a good net return and therefore
were not particularly anxious to sell; Class B, properties which the manager agreed it would be a good
thing to sell but which caused no real hardship to
the association because of a current fair return; and
Class C, properties which were low-income producers
and which management agreed should be disposed
of at the earliest opportunity. Higher commissions
on Class C properties might be offered in order to
stimulate sales.
Compensation (Item 10).—Association No. 3 provides for a slightly higher ratio of compensation to
gross income in order to enable a full-time officer to
deal continuously with the problem of selling real
estate owned.
Occupancy (Item 13).—Occupancy, which means
the expenditure for rent, light, and heat, varies usually between 3 and 3.5 percent of gross income.
Association No. 2 allows 3.4 percent, not only because
its rapid expansion forces it to anticipate the need of
larger and better quarters, but also because of the
advertising advantage to be gained from a welllocated and attractive office.
Advertising (Item 16).—A normal expenditure for
advertising during the year amounts to approximately 3 percent of gross income. In the case of
Association No. 2, however, which is rapidly growing,
5 percent has been budgeted, and in the case of
Association No. 3, which is pursuing an aggressive
merchandising policy with respect to its owned real
estate, 4.6 percent of gross income is allocated to
advertising.
PREPARATION, INSTALLATION, AND ADJUSTMENT OF
THE BUDGET
These three illustrative budgets for savings and
loan associations of different sizes and with extremely
different operating problems to face are indicative of
the extreme flexibility and range of modern budgetary control. Next month the concluding article of
this series will discuss in detail the steps which would
be taken to prepare a budget for a particular savings
and loan association, to install it, and to make proper
adjustments after it has been in operation during a
trial period.
279
THE HOUSING MARKETA REVIEW
•
THE market for dwellings has always been one
of the big unknowns of the building industries
equation. This unknown has never been equated
for several reasons. One is the sporadic small scale
of operations and lack of organization, another the
uniquely local character of the house as a commodity. Because a house cannot be picked up and
moved from one community to another or even
from one part of a town to another its market is
narrowly limited.
Yet interwoven with the local character of housing
needs is the increasing mobility of building workers,
and the. national scale of material supply which
make a knowledge of the entire country's housing needs
imperative. Further, the condition of our physical
environment today demands an attack on a national
scale even though the solution must be localized.
Consequently, continual statistical inquiry into
the subject is needed. A recent contribution in this
field which attempts to estimate from the limited
data available the housing market in the United
States was made by the National Housing Committee—a private group interested in the problems of lowcost housing. Their estimate is particularly interesting because it is divided by rental and income groups
and shows that building has not corresponded to
needs.
From the point of view of the mortgage-lending
institution, two relationships were analyzed which
are of interest. First, the distribution of the popula-
Chart A'-Distribution of non-farm families by income and rental groups: showing the shift of families
from the higher to the lower groups for the years 1929-1930, 1933 and 1935.
ANNUAL INCOME
$500.-
$1,000-
$1,500-
MONTHLY
RENTAL
$3,000.
a Over
Source: National Housing Committee
280
Federal Home Loan Bank Review
shift from the two highest income groups to the two
tion by size of family income and by rent paid; and
lowest.
second, a summary of annual requirements for new
The shift in the number of families distributed by
nonfarm dwellings during the next two years comrental groups does not correspond to the shift in
pared with dwellings actually built during 1930-1935.
incomes except that the group which paid rents of
The proportion of family income which is spent
$50 or more a month dropped sharply in number
for rent varies both according to the size of income
from 33 percent in 1930 to 7 percent in 1935. (Note
(the extremely poor pay as much as 70 percent of
that the income data are from 1929 to 1935 while
their income for rent) and according to the year
the rental data are from 1930 to 1935.)
(because of fluctuations in income and rent levels).
Whereas in the income groups the shift has been
This was brought out by the Housing Market study
from high to low, in the rental groups the shift has
in comparing the national average of 23.7 percent of
been from the two extremes to the middle groups.
income used for rent in 1933 (Financial Survey of
As a result, in 1935 there were fewer families in the
Urban Housing) with the 17.8-percent national averhighest rental bracket than in the highest income
age ratio in 1935 (Urban Study of Consumer Purbracket, and there were fewer families in the lowest
chases).
rental bracket than in the lowest income bracket,
"The Housing Market'' gives the number of nonwhereas the reverse was true in 1929-1930.
farm families in arbitrary income and rental groups.
H o m e - o w n i n g families
In other words, 21 perhave been included in the
cent of the total number of
rental groups by assuming
nonfarm families had anTHE National Housing Committee analysis of
their monthly rent as 1
nual
incomes of less than
the distribution of the population by size of
percent of the value of
$500
in 1935, but only 8
family income and by rent paid in 1929-1930,
their homes.
1933, and 1935 indicates a 25-percent shift
percent paid less than $10
from the two highest income groups to the two
per month for rent. That
Chart A shows the numlowest, but a shift in the rental groups from the
means nearly 3 million
ber of families in each
two extremes to the middle groups (Chart A ) .
families in the lowest^inincome and rental group
Annual requirements for new building during
come bracket were payas a percentage of total
1938 and 1939, estimated solely on the basis
of
population
increases
and
fire
and
demolition
ing
rents in the second
families. That is, the polosses,
when
stated
in
terms
of
rental
groups,
bracket:
$10.00-$19.99per
sition on the chart of any
make a striking contrast to actual average annual
month
or
more than 25
group for any one of the
construction during 1930-1935 (Chart B).
percent
of
income. But
three years shows the perof
the
families
with incentage of total nonfarm
comes
of
over
$3,000
a
families in that group for
year,
about
7
percent
were
paying
less
rent
than
they
that year. In 1929, for example, 24.4 percent of all
were in 1929.
nonfarm families had incomes of $3,000 and over, and
32.9 percent of all nonfarm families paid a monthly
There are two possible reasons for this shift from
rental of $50 or over.
1929 conditions. The one, that there is a resistance
As the chart shows, basic changes took place in
in the high income brackets to high rental payments,
with an apparent lack of resistance in the lower
both income and rental distributions over the 6-year
income brackets. The other, that there has been a
period covered. Between 1929 and 1935 the numchange in the supply of dwellings.
ber of families in the two upper income brackets fell
In view of the National Housing Committee's
off sharply while the number in the two lower brackets
study
of annual requirements for 1938 and 1939
rose sharply. The number of families with incomes
compared with dwellings built between 1930 and
of from $1,000 to $1,500, the middle bracket, showed
1935, the latter would seem the more logical. There
least change.
are fewer families in the upper rental brackets beWhereas the percentage of total families with incause a plentiful supply of dwellings has forced rents
comes of $1,500 and over jell 25 percent between
down; the reverse is true of the lowest income groups
1929-1935, the percentage of total families with
whose dwelling needs have not been satisfied either
incomes of less than $1,000 increased 24 percent.
directly or indirectly as the lack of building during
Thus there has been a complete reweighting of family
the period covered has slowed down the transfer of
old dwellings to these lower groups.
incomes in this country amounting to a 25-percent
May 1938
281
ANNUAL EEQUIREMENTS
The study of annual requirements for new building
during the next two years was based solely on expected population increases and expected loss of
dwellings through fire and demolition. Note that
the requirements do not take into consideration any
existing shortage, nor the substandards of condition
of many existing dwellings. This comparison is interesting in spite of its limitations because it is given by
rental groups.
It shows that whereas 51 percent of average annual
construction between 1930 and 1935 was for the $50
and over rental group, only 10 percent of the total
will be needed for this group in 1938 and 1939
(Chart B). Further, 83 percent of 1930-1935
building supplied dwellings for nonfarm families
renting for $30 or more; the requirements of the next
two years will be only 44 percent of the total. On
the other hand, 9.5 percent of building has been for
the two lowest groups while they need 40.3 percent.
As the chart shows, requirements are large compared
to past performance. Unfortunately, a large part
of the requirements of the very lowest rental groups
can never be met by private industry.
On the basis of this study, there are two ways by
which the volume of private residential building can
be increased. One is the continued development of
a luxury product, sold in volume through the appeal
of improved design, better quality, and more appliances. The other is through a reduction of costs to
reach the lower rental groups where a real need and
potential demand exists.
"The Housing Market" analyzes further the shortage of dwellings by geographic areas and by rental
groups. It is interesting that the authors believe
the largest market in the next two years will be in
the South Atlantic States; the second largest, in the
Mid-Atlantic.
Any communications regarding "The Housing
Market" should be addressed to the National Housing Committee, Tower Building, Washington, D. C.
Chart B > Estimated annual requirements for non-farm dwellings for 1938 and 1939 compared with average
annual construction between 1930 and 1935.
RENTAL GROUPS
UNDER $10.
• • •
$10.- $19.99
WMMU
.$20. -$29.99
ANNUAL REQUIREMENTS
1938-1939
AVERAGE ANNUAL CONSTRUCTION
©oo 0
ooooooo a
*oooooo
©ooooo OO
1930-1935
\<\
• II'
$30.-$49.99
nfgfSfr
$50. and OVER
Each disk represents 20,000
003I
non-farm
dwellings
* Based on population increases and fire and demolition losses
Source: National Housing Committee
282
Federal Home Loan Bank Review
CLEAR AND UNDERSTANDABLE BALANCE SHEETS
statement. Mortgage loans are analyzed to show
I N M a y and June 1936, the FEDERAL H O M E
not only the average size of these loans and the
reproduced several examappraised value of the real estate underlying these
ples of statements of condition of savings and loan
loans, but also to stress the fact t h a t monthly payassociations which were clear and understandable to
ments of principal and interest are constantly inthe general reader. Through the cooperation of the
creasing the association's security. A second sigFederal Home Loan Banks, the R E V I E W has obtained
nificant item is the explanrepresentative samples of
ation that the association
current statements of conis owned by 603 individudition from a number of
THE past two years have seen a continued
development of the use of explained and simals and corporations, with
savings and loan associaplified financial statements by savings and
each
investor
sharing
tions which clearly indiloan associations. This article discusses sigequally
in
the
resources
cate a continuing developnificant trends displayed by current balance
and earnings and each
ment of the use of such
sheets.
member protected by inunderstandable
balance
surance up to $5,000.
sheets. I n most of the
This statement of condition is made an integral
Bank Districts, the experience has been similar to that
part of the annual report of the Harvey Federal
of the Federal Home Loan Bank of Des Moines, which
Savings and Loan Association and is published in an
reported t h a t "Progress is being made in this direcattractive booklet form. The president of the
tion, as from year to year more of our member inassociation analyzes briefly its growth, lending polistitutions are attempting the more elaborate form of
cies and operations, repayment record, earnings, sale
statement, giving a brief exposition of the association's
of real estate owned, and the growth in investors'
business. Our member institutions, using the exaccounts during 1937. As a result of the recent
plained form, have told us of favorable comments made
amendment of the laws of Illinois to permit the inby their members upon the receiving of a balance
vestment of trust funds in Federal associations, the
sheet which carries a brief and sufficiently complete
report announced that the association has already
explanation of the accounts portrayed."
received substantial funds from national fraternal
In general, institutions which use financial stateorganizations, hospitals, and nationally-known trade
ments in which each item is followed by a clear and
organizations. A statement that there was an averconcise explanation of its significance have found
age attendance of 10 out of 11 members at each of the
this to be a successful means of inspiring confidence
directors'
meetings during the year is given to inand interest among their members. By their effecdicate
the
interest of the directorate in the progress
tiveness in developing new business, such statements
of
the
institution.
The report concludes with a
have proven to be more than mere compliances with
brief
statement
of
the
program which the Harvey
legal requirements. A clear and intelligible balance
Federal
has
set
for
the
year
1938.
sheet has been found of particular value in bringing
One
other
significant
development
in the Harvey
to the attention of investors of trust funds and others
Federal
association's
report,
which
was
also observed
the investment opportunities which are offered by
in
the
statements
submitted
by
several
other
the savings and loan type of institution.
associations,
is
the
comparison
of
major
balance
Since it was not possible for the R E V I E W to resheet items of 1937 with 1936, as shown on the
produce more than a few of the many excellent stateaccompanying page. There is a growing recognition
ments of condition sent in by the Federal Home
that a statement of condition presents only a static
Loan Banks, three balance sheets selected as reprepicture
of the association and fails to indicate the
sentative of important trends are reproduced with
major
trends
in the association's business.
permission on the accompanying pages.
The financial statement of the Old Colony CoopThe balance sheet of the Harvey Federal Savings
erative Bank is likewise designed to appeal to the
and Loan Association explains in detail the various
general reader. I t is really a combination of the
items and is representative of at least two significant
financial statement which is readily intelligible to
trends in the recent development of this type of
•
LOAN B A N K R E V I E W
May 1938
283
HARVEY FEDERAL SAVINGS & LOAN
ASSOCIATION
Statement of Condition, December 3 1 , 1937
ASSETS
CAPITAL, LIABILITIES A N D
Mortgage Loans
$ 1,489,544.03
The Association holds m o r t g a g e loans on 534
properties in Harvey and surrounding communities which have been conservatiely
appraised a t a total of $3,353,000.61 o r a n
average loan t o appraisal of 4 4 . 4 % . T h e
average size of these loans is $2780. Monthly payments a r e made o n both principal
and interest a t a n average r a t e of $1.00
per hundred of loan until t h e property
is cleared. A t t h e close of t h e year total
interest in default over 30 days on this volume of loans w a s only t h e s u m of $14.90.
L o a n s on S h a r e s .
Short t e r m loans t o investors i n t h e Association secured by a pledge of their accounts.
6,601.39
Government and Other B o n d s .
8,132.13
Shares in F e d e r a l H o m e L o a n Bank
A s a member of t h e Federal Home Loan
Bank System this Association owns 300
shares of stock in t h e Federal Home Loan
Bank of Chicago.
30,000.00
Real Estate Owned
.
Six parcels of well located real estate
which t h e Association owns. During 1937
these properties produced a n e t r e t u r n of
7.4% on t h e investment.
20,803.78
Real E s t a t e S o l d U n d e r C o n t r a c t . . .
Balance remaining due t h e association on
contracts t o purchase 18 parcels of property.
42,357.64
Furniture
and
RESERVES
Shareholders' Investments
$ 1,275,027.37
This item represents t h e funds invested
in this Association by 003 individuals* and
corporations. Each investor shares equally
in t h e resources a n d t h e earnings of t h e
Association a n d each is insured u p t o
$5,000 by t h e Federal Savings a n d Loan
Insurance Corporation, a n agency of t h e
United States Government.
A d v a n c e s — F e d e r a l H o m e L o a n Bank
This item represents funds secured from
t h e Federal Home Loan Bank of Chicago a t
an interest r a t e of three a n d o n e q u a r t e r
per cent. I t i s secured i n accordance w i t h
t h e Federal H o m e Loan Bank A c t a n d i s
used t o further t h e development of t h e A s sociation a n d o u r community.
322,500.00
Loans in P r o c e s s .
The Association h a s pending loans t o build,
buy o r refinance homes on which these
funds have n o t been disbursed.
38,555.16
Reserve A c c o u n t s .
This a m o u n t represents t h e safety fund of
t h e Association a n d is available t o protect
t h e Association a n d its shareholders from
a n y unforeseen loss.
37,505.91
Undistributed Earnings
N e t profit on December 8 1 , 1 9 3 7 after payment of expenses, transfers t o reserves a n d
payment of dividends.
2,973,45
2,795.89
Fixtures.
Cash o n H a n d a n d in B a n k s
W o r k i n g capital o n h a n d a n d deposited i n
various Banks in Harvey a n d t h e surroundi n g communities a n d i n t h e Federal Home
Loan B a n k of Chicago. These funds a r e
available t o t a k e care of w o r t h y borrowers
in need of funds for construction, repair,
purchase o r refinancing of homes.
Other R e s o u r c e s
74,460.28
1,866.75
P r e p a i d expenses, accrued interest on investments and other resources acquired in
t h e ordinary conduct of business.
Total
Resources
$ 1,676,561.89
Total
Liabilities
. $ 1,676,561.89
Comparison of Major Balance Sheet Items for 1937 with 1936
ITEM
Jan. 1,1938
1,676,561
Assets
$1
1,489,544
Mortgage Loans
Investments by Members . . . 1,275,027
40,479
Reserves and Undivided Profits
42,357
Real Estate sold under Contract
56,123
Net Earnings during Year .
Interest Earned during Year
73,296
Dividends Paid during Year
46,970
Cash Receipts
1,288.602
Number of Investors . . .
603
Number of Borrowing Families 534
284
Jan. 1 . 1 9 3 7
$1,326,560
1,092,794
1,009,601
31,326
16,475
46,686
54,681
33,263
761.586
503
391
Volume of
Increase
for Year
$350,001
396,750
265,426
9,153
25,882
9,437
18,615
13,707
527,016
100
143
Percentage
Increase
26.4%
36.3%
26.3%
29.2%
157.2%
20.2%
34.0%
41.2%
69.2%
19.9%
36.5%
Federal Home Loan Bank Eeview
the layman and the concise unexplained form of
statement for those familiar with financial and
accounting terminology. Small flaps are provided
on each side of the balance sheet which may be
folded over to conceal the explanations of the
various items, as shown in the illustration.
The statement of condition of the First Federal
Savings and Loan Association of Wilkes-Barre
gives a detailed explanation of all assets and liabilities
and in addition a summary report of the progress
during 1937. The report emphasizes the services
performed by the association to the community, both
in financing homes and in providing employment to
building trades workers in construction and reconditioning.
There are several other institutions which followed
these general patterns of understandable balance
sheets but made certain additions, such as the
1-page summary of trends during 1937 in the
attractive leaflet pubUshed by the Mutual Home and
Savings Association of Muncie, Indiana, shown in
part on the accompanying page.
The First Federal Savings and Loan Association
of New Haven, Connecticut, published a simplified
and understandable financial statement at the end
of 1937 and added two interesting statements.
Underneath the statement of assets was printed:
" I n addition to cash and investments we have at the
Federal Home Loan Bank of Boston a liquidity
reserve of $250,000 available to us at any time for
any purpose." Immediately following the statement
of liabilities was the note: "To the above listed
resources should be added those intangibles such as
friendliness, helpfulness and good will, which this
Association has built up but cannot be evaluated in
cold dollars and cents. To our liabilities,—We
recognize an obligation to be of the utmost service
consistent with sound practice, the law and the rules
and regulations of our institution."
Several other statements were of particular interest
because of special reports or messages which were
printed to accompany the clear and understandable
balance sheets. The Railroadmen's Federal Savings
and Loan Association of Indianapolis printed an
accompanying message from the president of the
association on the progress during 1937. There
was also a summary of the financial history of the
association since it was founded in 1887 and an
explanation of the variable interest rates charged
under its modern home-financing plans. This is of
May 1938
special interest since it served to explain to investing
members that they could increase the earnings of the
association by calling to the attention of their
friends the modern home-financing facilities of this
institution. The First Federal Savings and Loan
association of Shreveport likewise publishes a report
containing a brief analysis by the president of
significant developments during the past year in the
work of the association. Its statement of condition
is headed by the title "Leading the Way to Home
Ownership". A brief notice of the annual meeting
of members of the association follows the president's
report.
The Chairman of the Accounting Standards Committee of the New Jersey Building and Loan League
reports that the Committee has recently revised an
earlier model form of printed annual statement, following changes in the General Building and Loan
Act during the present session of the Legislature.
The State law now requires each association to mail
to each member annually a statement of assets and
liabilities, a statement of operations, and a statement
of the undivided profits account. The model form
suggested by the Committee can be folded to fit into
a stock 3%" by 6%" envelope, and presents a statement of condition, a statement of income and expense, and a reconcilement of the undivided profits
account to show the distribution of earnings. The
names of officers and directors, and the profession or
business of each director, are listed.
R E S U L T S OF U S E OP UNDERSTANDABLE
FINANCIAL
STATEMENTS
The growing number of associations using simplified and explained financial statements confirms the
belief that the confidence of investors in sound institutions is increased when understandable balance
sheets are used. This increased confidence is reflected not only in the greater interest taken in the institution by its members but also in many cases by an
increased flow of savings. I t is notable that during
recent months large corporations and financial institutions have been experimenting with simplified
forms of financial statements which avoid most of
the technical terminology of accounting and present
clearly to the layman the condition and operations
of the company. The logical goal of such financial
statements is to keep the accounting as simple as the
accounts which a careful family might keep of its
own household receipts and expenditures.
285
:
^ U & ? * -? ' "
The annual statement of the O l d Colony
Cooperative Bank, Providence, Rhode Island, is shown at the bottom of this page:
that of the First Federal savings and Loan
Association of Wilkes-Barre is at the left.
To the right is a summary of the year's
activity of the Mutual Home and Savings
Association, Muncie, Indiana, printed as
a part of their annual statement.
_ _ .
:•: £:&» :«$$%
§
4 ' <£**•?>*<
Ww^Mh^mm^m i i
•;i5'
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im !<"
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• • • •
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3nr>U lcaa«, cS»i»f y Ix T«wvifissqr «"4 •yMs.-t&Jag kuMti. w?d« Vi
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402,371 83
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OW Caor-y'* o v a Ixuldiaga at 58 W»y>»»»et £». Pimklsaee ~< J5 M-~SA
Otl-cr 3<=Kil E-rtaJe
i>.is fac]-i^> ri02>ir:J«B:>t.ii^ca>Eay 5c}";Ti. by Joip&cJarjra cad *•»&
BViny at vAirb«cfv(» iwaa tB*i<3va«dar>^ c:r* ^»«<-i.t'Y r*r-«ci«i pt&c£tg
j>
1.868,375.77
v::
Fvttrihnre a n d FtateccB
;. CO
aiuin oihe*; f^ri. b;cuch«. W'iiii* MO>.>««»<31 to «.a«JIcnt <:c«dl6r-r. 'or
2U>JO w>rv. ee. end w^rtfe a frubttcjfiksi waBi: ji i» c «
v.i xft«
ifift i'.iwIyrjwriitKt
i'.vvrv'.y sstnUwi figure
%-i'.te eil
ai 31,
SI,
< *CoIte<.i5.ott
^
Itoms in C>urs© of
Ihis «.-va r ^3»««»3tB Ion*. <a««»8«««rt« v&A toftarscca payiaso^i o i ' a i M d In bebfti! c< luort-jagari. «ad to b* ropold l^r Ciam to
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Cesh i n Huad end ia BcraTas
^hJ* ^««r« toifi«*e»: fte Bufcstaaitoiria&:«£
•wrotHng capita f-witobto totteT««(lr.aaiJr.
its ci^lity to irwtcatiY »w« osy SJSHSCJ
T O ?**&.
AI BSSOUnCBii
286
1,406,242.01
die,ios.$a
t>
523JB«»$<».1S
Federal Home Loan Bank Review
BUSINESS REVIEWS
Local real estate and building activity data are extremely valuable to all
persons concerned with home mortgage finance.
One step towards
general development of local statistics is the work being carried on by
university business reviews in the collection of pertinent data.
•
AS a result of a survey of about 20 business
reviews issued by university schools of business
administration, the FEDERAL HOME LOAN BANK
REVIEW found it significant that many of these
reviews carry local data relating to home financing
such as building permits issued, construction contracts awarded, wholesale prices, employment, and
pay rolls. These local data are a valuable supplement to the national picture of business fluctuations.
They give the local mortgage lender a basis for judgment of local conditions and of his own operations.
Many mortgage and title companies recognize this
and are cooperating with the universities in providing information on operations. The survey
indicated that in a few reviews the coverage of construction and home-financing statistics is expanding.
This development of local data can best be undertaken by local institutions for their own benefit.
No national organization is equipped to study local
conditions and record local operations as well as the
institution intimately acquainted with and participating in the activities of its community. The
collection of data by university business reviews in
various parts of the country is one step towards
general development of local statistics. Mortgagelending institutions will often find valuable the local
data collected and supplied by a neighboring university, and they can often be of real assistance in
the collection of information.
Many of the business reviews do not carry information on real estate and building in every issue.
For example, twice a year the Southern California
Business Review of the University of Southern California has been devoted entirely to the real estate
situation in Los Angeles and outlying residential
areas, giving valuable data on rent levels, vacancies,
building permits, as well as interest rates on real
estate loans, by class of house, class of construction, and down payment.
May 1938
62315—38
3
Another university bulletin publishing this type of
information is the bi-monthly University oj Denver
Reports, which presents once a year the results of the
annual real estate inventory and vacancy survey of
the City and County of Denver made by the Bureau
of Business and Social Research of the University of
Denver for the Denver Real Estate Exchange.
The Bureau has also made further studies of Denver
real estate, including mortgage foreclosures, mortgage and deed recordings, and assessed valuation of
land and improvements, which were used as the
basis for summaries in various issues of the bulletin.
On the other hand, a monthly section entitled
"Real Estate and Building" is included in the
Pittsburgh Business Review. Statistics on real estate
conditions in the Pittsburgh area are given in various
tables showing building permits issued and construction contracts awarded, deed and mortgage
recordings, and foreclosures. With the cooperation of the Duquesne Light Company, statistics have
been compiled and presented on the number of installed electric meters and the percentage idle,
indicating the trend of residential vacancies in a
most effective way. None of the other business
reviews studied used this method of determining
vacancies.
The Indiana Business Review plans to cover the
real estate field even more thoroughly. In November 1937, the Bureau of Business Research of the
School of Business Administration, Indiana University, added a new section to its monthly bulletin
summarizing the extent of real estate activity in the
six major urban counties of the State. At present it
includes only those figures which reveal the general
trend of real estate and mortgage operations as
measured by the volume of deeds recorded. Each
month an index of real estate activity in one of the
six major counties is pictured in a chart based on
{Continued on p. 804)
287
RESIDENTIAL CONSTRUCTION and HOME-FINANCING ACTIVITY
rentals. Foreclosures increased more than seasonally and manufacturing employment and pay rolls
remained nearly stagnant at low levels.
The decline in wholesale building material prices
since June 1937 showed a tendency to falter in March
1938. The average of all materials increased slightly,
even though the cost of three types of material
declined, two remained unchanged, and two increased
from February. The building cost index continues
to show general declines in costs as principally due
to materials.
There were 13,290 building permits issued for
residential dwellings in cities of 10,000 or more
population in March, representing a 56.4-percent
increase over the 8,495 permits issued in February.
•
THERE is usually greater activity in the construction and financing fields during March than
during February. Consequently, the increase in
activity reported for March is seasonal in character
although not strongly so. Even though the volume
of residential building increased more than 50 percent, adjustments for seasonal variation caused an
actual reduction in the index of 5.1 percent. In
March residential construction in cities of 10,000 or
more population was only 28.2 percent of the 1926
monthly average. In February it was 29.7 percent.
Accompanying the actual increase in construction
volume during March as compared to February was
an increase in the volume of mortgage lending by
savings and loan associations, and a slight decline in
RESIDENTIAL
BUILDING
ACTIVITY '
AND
SELECTED
INFLUENCING
FACTORS
1926*100
600
500
600
500
400
400
Tv^T^
/
300
^FORECLOSURES'
L
200
300
200
1 0 0 •c'»».^
90
80
70
60
50
X
Id
^HOUSIh
»•••••••«
*•*«.....«....,]
^
" — » — Ssr
~"-'7n
*••..
40
• 1
/
RENTALS1
6
1
.J
1
J
r
BUILDI NO MA ER/AL
-f-l [ i l l
PR/CES*
an*«ncr~
1
J_...£-}-...^£
4 ~ = £ ^ l . , %,,,,,
1 1 /•••••..L/~y " r—
.....J /\
"'-,
\
f
|
11
MANUFACTURING PAYROLLS
30
O
20
«
^
I—M
\rJ
*M*m
_•*
~~v
100
90
80
70
60
50
40
JS**
\r*
f*E
10
9
8
7
6
5
SIDEN rIAL C 7NSTR ICTION
*
30
20
J
to
9
8
7
6
5
s/\
4
3
2
i j i i i t 11 i i i i i t 11 11111 11111 11111 M i l l 1 1 1 1 1
0
J
D
J
0
J
0
J
D
1929
1930
1931
1932
1 I I 1 1 I i l i l 1 1 1 1 i1 I i l i 1 1 1 1 11 1 1 1 I1I 1 1 1 I I I I I 11111 M i l l 11 I 11 1111 i 1
J
0
J
0
J
D
J
0
J
0
J
D
1933
1934
1935
1937
1938
1936
Source-*- I. Federal Home Loan Bank Board (County Reports)
2. U.S. Dept. of Labor (Converted to 1926 Base)
3. Federal Home Loan Bank Board (U. S. Deot. of. Labor Records)
288
I
* Includes correction for New York City because
of irregular conditions arising from inception
of new building code.
Federal Home Loan Bank Keview
This is the greatest percentage increase between
these two months since 1935, when a 91.8-percent
increase was recorded. The increase in 1937 was
31.7 percent, and in 1936, 49.5 percent.
Forty-five States and the District of Columbia
reported increases in the number of building permits
issued in March as compared with February.
Arizona, Florida, and Maryland were the only States
to report decreases.
[1926=100]
Residential construction J
Foreclosures (metro, cities)—
Rental market (N. I. C. B.)~
Building material prices
Manufacturing employmentManufacturing pay rolls
Average wage per employee._.
Mar.
1938
Feb.
28.2
176.0
86.4
91.5
80.7
70.7
87.6
29.7
157.0
86.7
91.1
81.1
70.6
87.1
Percent | Mar.
change 1937
-5.1
+12.1
-0.3
+0.4
-0.5
+0.1
+0.6
Percent
change
-22.1
-23.5
+4.0
-4.6
-19.1
-27.5
-10.3
36.2
230.0
83.1
95.9
99.8
97.5
97.7
1
Corrected for normal seasonal variations.
Includes a correction for New York City because of irregular conditions arising from inception of new building code.
The number of building permits for March 1938
in all cities of 10,000 or more population, however,
fell 33.4 percent below the 19,962 permits issued in
March 1937. The 10 States of Arkansas, Indiana,
Iowa, Kansas, Louisiana, Minnesota, New Hampshire, Texas, Virginia, and Wyoming were the only
ESTIMATED
IN
States to report building permits issued in March 1938
which exceeded the number issued in March 1937.
The total estimated cost of all residential dwelling
units for which permits were issued in March was
$49,405,000, as compared with $78,710,000 for
March 1937.
The index of real estate foreclosures in metropolitan communities jumped from 157 in February to
176 in March. This increase of over 12 percent was
slightly higher than the 6-year average FebruaryMarch increase of 11.4 percent. However, in comparison with the March 1937 index of 230, the index
number for this March was about 23 percent lower.
Also, foreclosures for the first quarter of this year
were 22.4 percent lower than for the same period of
1937.
Of the 82 communities reporting in March, 53
showed increases in foreclosures from February,
while 27 indicated decreases, and 2, no change.
Wholesale building material prices in March turned
upward for the first time since M a y 1937, after nine
months of uninterrupted decline. The Department
of Labor index stood at 97.2 last May, and then fell
month after month until in February 1938, the index
registered 91.1. The 0.4-percent increase during
March sent the index up slightly to 91.5.
NUMBER AND COST OF FAMILY D W E L L I N G U N I T S
A L L C I T I E S OF 1 0 , 0 0 0 OR MORE P O P U L A T I O N
PROVIDED
(Source- Federal Home Loan Bank Board. Compiled from residential building permits reported to U S Oept of Labor)
NUMBER OF UNITS
COST OF UNITS
PROVIDED
30:
30
28
28
26
26
24
24
PROVIDED
100
90
1 £938
1938
22
20
X*
22
l-^ J
/
,
70
20
18
19.
r
18
19.[7
16
16
14
14
12
12
50
193/-3 5 AVG.
10
10
30
A931-3 5 AVG.
!
T
8
**"
6
4
T~
**
2
4
tmamm
8
--« - - -
6
\
20
4
\J
10
s.
•
•
•
4
'''
^ !
^
^m ^
li
^^—
50
40
30
20
N
10
2
0
May 1938
289
Three groups of materials (brick and tile, plumbing and heating, and other materials) declined in
price from February to March, two increased in
price (lumber and paint and paint materials), while
cement and structural steel remained stationary at
95.5 and 114.9, respectively. Paint and paint materials increased 3.8 percent and are responsible for
the slight rise in the total index.
The index for all building materials was 4.6 percent
lower in March 1938 than in March 1937. Lumber
has shown the greatest decline in price, with an
index number this March 10.6 percent below its
index for March of last year.
The rental index of the National Industrial Conference Board declined 0.3 percent between February
and March, continuing the gentle downward movement of rentals which started last fall.
Manufacturing employment fell off 0.5 percent to
80.7 in March. The March 1938 index was 19.1
percent below the index of 99.8 in March 1937. It
was not, however, quite as low as the level of pay
rolls of manufacturing establishments. The Department of Labor pay roll index showed pay rolls as
70.7 percent of the 1926 base of 100, as compared
to 97.5 percent during March a year ago.
The trend of the rate of building in March as
compared to February was upward in every Federal
Home Loan Bank District. The estimated number
of privately financed family dwelling units provided
per 100,000 population increased from 13.52 units to
21.13 units for the United States as a whole, a normal
seasonal upward trend as the rate of building has
increased between February and March every year
since 1930.
This trend is shown by the chart on the opposite
page. The rate of building in New York City was
excluded from the United States average rate in
December 1937 and January and February 1938
because unusual conditions in that city distorted the
picture of actual building. It was no longer necessary to do so in March.
The greatest increase in the rate of building took
place in the Los Angeles District where 59.99 dwelling
units per 100,000 population were built in March
as compared to 41.76 in February. In spite of this
rise, the March 1938 rate was 20.0 units lower than
that in March 1937. The Little Eock District was
the only one which could report a March rate of
building that was higher than that in the same
month last year.
Indexes of Small-House Building Costs
[Table 3]
•
BETWEEN January and April the cost of
building the same standard house decreased in
17 of the 21 cities reporting for that period. Declines in material costs were principally responsible
as labor costs remained comparatively stable. The
greatest decline in costs was in South Bend, Indiana,
where a decrease of $229 lowered the total cost of
the standard house to $5,964—the first time it had
been below $6,000 since April 1936.
Building costs in Buffalo, New York, declined 3.0
percent and in Portland, Oregon, 2.9 percent, but
more striking than these reductions in the cost of
building the standard house was an increase of 1.9
percent in Great Falls, Montana, where total costs
are higher than in any other city in this group and
are second highest among all the cities for which
reports are received on building costs. In April it
would have cost $7,137 to build the standard house
in Great Falls. The second highest cost city was
St. Paul, Minnesota, where the reports show a total
of $6,628.
The April reports show costs as lowest in Newark,
New Jersey ($5,427) and Portland, Oregon ($5,448),
but costs in Newark are rising and in Portland they
are falling. No other cities in this group report costs
below $5,500, or 23 cents a cubic foot.
Monthly Lending Activity of Savings
and Loan Associations
[Tables 4, 5, 6, and 7]
•
THE estimated lending activity of all savings
and loan associations during March represented
an increase of $12,513,000 over February totals—a
rise of 29 percent. This is the second consecutive
month to show a greater total of loans than the
NOTE FOR CHART ON FACING PAGE:
A new building code in New York City, effective January 1938, caused an unusual spurt of applications for permits which
threw the United States total out of balance. The dotted line shows that total excluding New York City for December 1937
and January and February 1938.
290
Federal Home Loan Bank Review
RATE OF RESIDENTIAL BUILDING IN ALL CITIES OF 10,000 OR MORE POPULATION
REPRESENTS THE ESTIMATED NUMBER OF PRIVATELY FINANCED FAMILY DWELLING UNITS PROVIDED PER 100,000 POPULATION
Source: Federal Home Loan Bank Board. CompiledfromBuilding Permits reported to US. Department of Labor.
FEDERAL HOME LOAN BANK
wu
DISTRICT 1 1
BOSTON 1
DISTRICTS
DISTRICT 2
NEW YORK
J
DISTRICT 3 1
PITTSBURGH |
DISTRICT 4
WINSTON SALEM
70
60
V*-I938
50
Ki
to
Z
40
,20
1——i 1
^L-
T
.
£•1931-35 AV&
'
20
r
1
10
„. .
t937p
L J
L__
<~I93I-35AVG. \~—
/938
JAN. FEB. MAR APR. HAY
10 —r~f-/938
1931-35 AV6.-)
~^5~~'
K
0
HP
30
30
JUN.JUl.AUa
3EP OCX MOW DEC
JAN. FEE MAR A P R M
DISTRICT 5
CINCINNATI
1
,
«—i—|
1 MAY
. A U 4 SEP OCX NOW DEC.
JUN. JUL. AUG. SEP. OCX NOV
DISTRICT 6
INDIANAPOLIS
OEa
JAN. FEB. MAR APR MAY JUN. JUL. AUft. SEP. OCT W
DISTRICT 7
CHICAGO
DISTRICT 8
DES MOINES
SEP. OCX NOW DEC.
UNITED STATES AVERAGE
1930-1938
50
CO
J
t-
z
401
=>
30
Pn
[ ^
J Lr*H.
LT
201
/
1 1 1 1 1 1 1 ,i 111
May 1938
1 1 ' '
i i i i i
ii-
• 1.1 L i i i i L i i
i i I i i i i i i. i_i,.
1 1 1 .1 JL.l-t
I I I I
r^J V
1 f*
J
^tj
cxctuoma MEW mm cirr-^i
3f# nott on focmg pOQt J 1
1 1 1 1 1 1 1 1 1 1 1
\
1 1 1 1 1 1 1 1 1 1 1 1
291
preceding month, and follows an unbroken decline
in lending volume from June 1937 through January
1938. Loans by all savings and loan associations
totaled $55,803,000 in March; in February, total loan
volume was $43,290,000.
Every Bank District participated in the upturn in
lending activity during March. Increases over February loan volume ranged from 12 percent in the
Indianapolis District to 58 percent in the Portland
District. The greatest increases in lending activity,
by Bank Districts, were: Portland, 58 percent; New
York, 51 percent; Des Moines, 45 percent; and Pittsburgh, 40 percent.
March lending this year, however, was 16 percent
below the $66,176,000 volume of loans made in March
1937. Four Bank Districts were exceptions to the
trend for the country as a whole: New York, Pittsburgh, Des Moines, and Little Rock all reported
greater lending activity in March 1938 than in the
same month last year.
Between February and March several shifts took
place in the proportions between the several cate-
gories of loans. Loans for new construction rose
from 24.6 percent of the total in February to 26.4
percent in March. Loans for other purposes fell
from 14.0 percent to 12.4 percent of the total.
Other types of-loans changed slightly. Refinancing
loans made up 22.8 percent, reconditioning loans 7.0
percent, and home purchase loans 31.4 percent, of
the March total.
Loans for new construction and for home purchase
accounted for nearly two-thirds of the increase in
lending activity during March.
State-chartered members of the Federal Home
Loan Bank System made 45 percent of total loans in
March by all savings and loan associations. Federal
savings and loan associations made 42 percent, and
nonmembers made 13 percent.
Federal Savings and Loan Insurance
Corporation
[Tables 9 and 10]
HOME CONSTRUCTION LOANS MADE BY ALL SAVINGS AND LOAN
ASSOCIATIONS COMPARED WITH HOME BUILDING ACTIVITY
MILLIONS
OF DOLLARS
JFMAMJJASOND
1936
0
JFMAMJJASOND
1938
Estimated -cost of oil I and 2 family dwellings privately financed in all
cities of 2,500 or more population. Based on huilding permits reported
to U. S. Dept. of Labor.
<D Estimated for all active associations by Federal Home Loan Bank Board.
292
•
DURING March the Federal Savings and Loan
Insurance Corporation insured each member
against loss up to $5,000 in 24 State-chartered savings and loan associations, and 4 State associations
which had converted to Federal charter. These
additions to the lists of insured institutions brought
the total to 1,952 with combined assets of $1,806,000,000. As of March 31, there were 1,781,912
shareholders receiving the benefits of share insurance.
For both February and March, reports of monthly
activity were received from 437 insured Statechartered associations. These reports show a sharp
upturn in the volume of mortgage loans made during
the latter month as compared with the former. A
part of this increase was probably seasonal as a similar increase of business was reported between February and March in both 1936 and 1937. Nevertheless, it represents a sharp acceleration of the upturn
which began in February as the first increase in the
volume of business since April 1937.
Loans made in March for all purposes increased
31.5 percent over February. The greatest increase,
of 39.9 percent, was made in new construction loans;
refinancing loans increased 35.1 percent; reconditioning loans, 27.2 percent; loans for home purchase, 26.8
percent; and loans for other purposes, 24.5 percent.
Loans for the purchase of homes amounted to a third
of all loans made during March as did loans for buildFederal Home Loan Bank Review
ing (construction and reconditioning loans together).
In spite of the sharp increase in mortgage loans made,
the loans outstanding remained almost stationary,
increasing only 0.6 percent during March.
The 437 insured State institutions reported a
6.0-percent increase in repurchases between February
and March as contrasted to a 1.4-percent increase
in private share investments, with the result that a
slightly greater volume of funds was repurchased than
was invested. The share liability of these institutions at the end of March was $422,241,400 and the
combined total of their assets was $533,752,800.
Federal Savings and Loan System
[Table 11]
FOR the second consecutive month, identical
reporting Federal savings and loan associations
approved loans for a greater amount on the security of
mortgages than during the preceding month. The increase in amount of mortgage loans, however, was
31.5 percent in March, in contrast with the 2.9-percent increase recorded in February, indicating a definite acceleration in the revival of the building trades
and of home financing. This increase is due, in part
at least, to seasonal influences. Kecords of previous
years show identical Federal associations reporting
the following increases in the amount of mortgage
loans for March compared with February: 1937—
44.2 percent; 1936—31.7 percent; 1935—37.0 percent.
The 1,283 reporting Federal associations loaned
$22,000,000 in March as compared with $17,000,000
in February.
All categories of loans increased from 20 percent to
40 percent in March over February, but the greatest
increases were recorded by loans for home purchase
and for new construction. New construction loans
amounted to 32.0 percent, and home purchase loans
to 29.0 percent, of total loans in March. The proportion of refinancing loans decreased significantly—
from 25.0 percent in February to 23.2 percent in March.
The distribution of loans by purpose in March 1938
corresponded very closely to the distribution in
March 1937. The only variations of more than fivetenths of 1 percent were in the new construction
loans, which amounted to 34.6 percent of the total
in March 1937, and in loans for other purposes, which
were 6.9 percent of the total in March 1937 and 9.9
percent in March of this year.
Prosress in number and assets of Federal savings
and loan associations
Number
Feb.
28,
1938
New__
Converted
May 1938
Feb. 28, 1938 Mar. 31, 1938
646 $270, 674, 572 $274, 230, 665
692 862, 341, 073 863, 710, 087
Total. __ 1,334 1,338 1, 133, 015, 645 1, 137, 940, 752
Accompanying this growth of lending activity were
increases in the assets and in the private investments
of reporting associations, and a decrease in the volume of repurchases.
•
645
689
Mar.
31,
1938
Approximate assets
Federal Home Loan Bank System
[Tables 12 and 18]
•
IN spite of the increase in membership of the
Federal Home Loan Bank System, advances
made by the Banks to members during the first three
months of 1938 did not surpass the amount of advances for the same period in 1937. For the third
consecutive month, the balance of advances outstanding declined. Although the advances made by
the Banks increased in March as compared with
February, the increase failed to offset the unusually
large volume of repayments. Repayments of over
$9,000,000 in March brought the total volume of
repayments for the first three months of this year
to a figure in excess of the total amount of repayments
in any 4-month period since the inception of the
Banks.
During the month of March, advances amounted
to $4,900,000, and repayments aggregated $9,293,000,
resulting in a balance of advances outstanding of
$183,125,000.
Six Banks made a greater volume of advances in
March than in February, and six Banks reported
decreases. It is notable that all Banks west of the
Mississippi reported increases in advances during
March, while all Banks east of the Mississippi, with
the exception of the Federal Home Loan Bank of
Winston-Salem, reported advances of a smaller
amount than in February.
(Continued on p. 304)
293
Table 1.—Number and estimated cost of new family dwelling units provided in all cities of 10,000
population or over, in the United States l
[Source: Federal Home Loan Bank Board. Compiled from residential building permits reported to U. S. Department of Labor]
Number of family units provided
January-March
totals
Monthly totals
March
March February
1937
1938
1938
1-family dwellings
2-family dwellings
Joint home and business 2
3- and more-family dwellings.
Total residential
Private housing.
Public housing 3 -
Total cost of units (thousands of dollars)
1938
1937
January-March
totals
Monthly totals
March
1938
February
1938
March
1937
1938
1937
10, 060! 5, 785 12, 246 22, 100 26, 130 $39, 835. 6 $21, 935. 8 $54, 402. 6 $84, 473. 3 $115, 835. 5
594
988 2, 622 2, 446 2, 549. 4 1, 490. 5 2, 731. 4! 6, 619. 6
918|
6, 478. 2
264
50
94
273. 1
189|
182. 9
97
575. 6|
345. 1
990.8
2,215 2, 066; 6, 6341 25, 891 16, 504 6, 746. 4, 5, 536. 5| 21, 230. 4i 82, 258. 4, 52, 947. 3
13, 2901
8, 495 19, 962 50, 802 45, 344 49, 404. 5 29, 145. 7 78, 709. 5 173, 926. 9 176, 251. 8
13, 289
8, 495 19, 891 50, 801 45, 234 49, 401. 1 29, 145. 7 78, 070. 5 173, 923. 5 175, 487. 2
1
110
71
0
639. 0
764.6
0
3.41
3.4
1
Estimate is based on reports from communities having approximately 95 percent of the population of all cities with population2 of 10,000 or over.
Includes 1- and 2-family dwellings with business property attached.
3
Includes only Government-financed low-cost housing project units reported by U. S. Department of Labor.
Table 2.—Number and estimated cost of new family dwelling units provided in all cities of 10,000
population or over, in March 1938, by Federal Home Loan Bank Districts and by States
[Source: Federal Home Loan Bank Board.
Compiled from residential building permits reported to U. S. Department of Labor]
[Amounts are shown in thousands of dollars]
All residential dwellings
Federal Home Loan Bank Districts
and States
UNITED STATES
Number of family dwelling units
All 1- and 2-family dwellings
Estimated cost
March
1938
March
1937
March
1938
March
1937
13, 290
19, 962 $49, 404. 5 $78, 709. 5
Number of family dwelling units
Estimated cost
March
1938
March
1937
11,075
13, 328 $42, 658. 1
$57, 479. 1
March
1938
March
1937
629
955
2, 862. 3
4, 948. 4
574
855
2, 707. 3
4, 771. 8
123
18
364
31
89
4
194
48
543
17
147
6
596.4
57.8
1, 764. 4
75.4
353.7
14.6
1, 123. 9
162.4
2, 908. 4
45.9
673.0
34.8
111
18
321
31
89
4
188
42
455
17
147
6
553.4
57.8
1, 652. 4
75.4
353.7
14. 6
1, 107. 3
152. 4
2, 758. 4
45. 9
673. 0
34. 8
2,160
6,091
8, 819. 8
22, 805. 2
1,295
1,428
5, 817. 1
7, 169. 6
299
1,861
396
5,695
1, 449. 6
7, 370. 2
2, 337. 8
20, 467. 4
230
1,065
288
1,140
1, 283. 7
4, 533. 4
1, 958. 3
5,211.3
No. 3—Pittsburgh
730
907
3, 635. 7
4, 392. 0
691
810
3, 570. 5
4, 219. 0
Delaware
Pennsylvania
West Virginia
11
634
85
38
764
105
51.8
3, 258. 6
325.3
194.0
3, 833. 4
364.6
11
599
81
38
684
88
51.8
3, 205. 4
313.3
194. 0
3, 707. 4
317 6
No. 1—Boston
Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont
No. 2—New York
New Jersey
New York
294
Federal Home Loan Bank Review
Table 2.—Number and estimated cost of new family dwelling units provided in all cities of 10,000
population or over, in March 1938, by Federal Home Loan Bank Districts and by States—Con,
[Amounts are shown in thousands of dollars]
All 1- and 2-family dwellings
All residential dwellings
Federal Home Loan Bank Districts
and States
No. 4—Winston-Salem
Number of family dwelling units
Estimated cost
Number of family dwelling units
Estimated cost
March
1938
March
1937
March
1938
March
1937
March
1938
March
1937
March
1938
1,848
2,373
$6, 276. 3
$8, 106. 2
1,522
1,779
$5, 268. 1
$6, 607. 7
149
690
455
212
212
294
137
224
9iT
265.8
1, 327. 7
1, 280. 9
561.0
565.4
783.0
281.3
1, 211. 2
3, 216. 4
289.6
2, 611. 7
1, 710. 0
502.0
846.6
850.2
410.0
886. 1
4, 479. 6
119
184
350
205
146
263
96
159
606"
250.8
1, 056. 2
1, 241. 9
554.0
559.4
697.7
266.3
641.8
2, 780. 4
257.7
1, 451. 2
1, 641. 3
500.0
846.6
735. 6
403.0
772.3
4, 022. 6
135
525
147
1, 117
405.4
2, 068. 6
306.4
3, 514. 8
346.5
3, 272. 6
403.5
5, 802. 6
March
1937
Alabama
District of Columbia
Florida
Georgia
Maryland
North Carolina
South Carolina
Virginia
•
No. 5—Cincinnati
127
285
362
209
152
290
100
323
732"
Kentucky
Ohio
Tennessee
No. 6—Indianapolis
118
483
131
866
135
656
150
1,117
405.4
2, 494. 6
316.4
3, 731. 8
346.5
3, 725. 1
408.0
5, 802. 6
118
369
119
776"
Indiana
Michigan
No. 7—Chicago
263
603
395
228
889
686
708.6
3, 023. 2
2, 209. 0
942.2
4, 860. 4
4, 582. 3
190
586
391
228
889
601
548.6
2, 966. 2
2, 190. 0
942.2
4, 860. 4
3, 886. 5
Illinois
Wisconsin
No. 8—Des Moines
272
123
557"
490
196
602"
1, 641. 8
567.2
2, 073. 1
3, 510. 1
1, 072. 2
2, 204. 6
272
119
5lF
414
187
555"
1, 641. 8
548.2
1, 968. 6
2, 853. 3
1, 033. 2
2, 113. 3
Iowa
Minnesota
Missouri
North Dakota
South Dakota
No. 9—Little Rock
128
195
198
9
27
1, 716
66
217
101
47
1,285
530~
125
139
294
14
30
1,428
507.6
803.0
690.9
26.8
44. 8
4, 124. 9
530.3
560.8
1, 012. 1
48.3
53. 1
3, 950. 4
124
192
162
9
27
1,627
496.2
787.9
612.9
26.8
44.8
3, 922. 5
530.3
551. 5
937.6
48. 3
45. 6
3, 704. 8
35
171
151
53
1,018
696"
145. 3
522. 1
218.3
131. 1
3, 108. 1
1, 729. 1
92. 3
479.4
244.4
137.6
2, 996. 7
2, 506. 8
61
205
101
47
1,213
500"
35
149
128
53
938
666"
131.9
501.6
218.3
131. 1
2, 939. 6
1, 674. 3
92. 3
446. 1
210. 2
137. 6
2, 818. 6
2, 418. 4
192
151
103
250
811
304.5
492.4
230.7
701.5
1, 680. 8
845.4
465.3
383.0
813. 1
2, 635. 8
77
140
64
219
487
178
142
100
246
64T
284.5
475.6
220.7
693.5
1, 584. 3
782. 4
446. 9
381. 0
808. 1
2, 212. 6
28
45
120
69
220
53
2,592
33
49
302
96
302
29
3, 355
75. 1
128.8
448.7
200. 1
646.3
181.8
9, 045. 3
95.4
166.5
1, 023. 2
330.5
912.9
107.3
12, 295. 6
21
42
116
69
214
25
2,092
23
49
166
89
293
21
2,766
60. 1
126.8
442.2
200. 1
636.3
118.8
7, 660. 2
75. 4
166.5
669.7
309.5
896.2
95.3
10, 550. 2
31
2,545
16
40
3,295
20
76.2
8, 891. 7
77.4
139.0
12, 030. 2
126.4
31
2,045
16
40
2,706
20
76.2
7, 506. 6
77.4
139.0
10, 284. 8
126. 4
Arkansas
Louisiana
Mississippi
New Mexico
Texas
No. 10—Topeka...
Colorado
Kansas
Nebraska
Oklahoma
No. 11—Portland
Idaho
Montana
Oregon
Utah
Washington
Wyoming
No. 12—Los Angeles
Arizona
California
Nevada
May 1938
4
85
154
68
223
535~
126
233
434
208
212
254
133
179
807"
125
134
257
14
25
1,303
295
Table 3.—Cost of building the same standard house in representative cities in specific months
NOTE.—These figures are subject to correction
[Source: Federal Home Loan Bank Board]
Total building cost
Cubic-foot cost
1938
1938
April
No. 2—New York:
New Jersey:
Camden
Newark
New York:
Buffalo
White Plains
No. 6—Indianapolis:
Indiana:
Evansville
Indianapolis
South Bend
Michigan:
Detroit. _
Grand Rapids
$0. 237
.226
_
No. 8—Des Moines:
Iowa:
Des Moines
Minnesota:
Duluth
St. Paul
Missouri:
Kansas City
St. Louis
North Dakota:
Fargo
South Dakota:
Sioux Falls
No. 11—Portland:
Idaho:
Boise
Montana:
Great Falls
-_
Oregon:
Portland
Utah:
Salt Lake City
Washington:
Seattle
Spokane
__
1937
April
$0. 245
.236
1937
1936
April
1936
April
April
Jan.
Oct.
July
April
$0. 215
.212
$5, 688
5,427
$5, 710
5,363
$5, 884
$5, 872
5,660
$5, 873
5,658
$5, 157
5,093
6,496
6,404
6,461
6,539
6,136
6,151
5,499
5,702
5,816 . 5,816
5,836
5,866
6,374
6,404
5,570
5,458
5,860
.253
.258
.256
.256
.229
.238
6,073
6, 198
6,260
6,291
.240
.245
.248
.242
.243
.266
.232
.227
.244
5,770
5,879
5,964
5,769
5,778
6,193
.249
.246
.252
.234
.219
.218
5,987
5,900
6,108
5,908
6,221
5,885
6,334
5,851
6,055
5,625
5,265
5,230
.256
.266
.251
6,139
6,264
6,463
6,464
6,379
6,032
.263
.276
.246
.269
.234
.221
6,308
6,628
6,361
6,391
6,904
6,373
6,906
5,990
6,452
5,616
5,294
.241
.255
.241
.275
.221
.253
5,775
6,122
5,840
6,207
6,090
6,437
6,239
6,517
5,787
6,597
5,304
6,064
.247
.249
.229
5,919
5,945
5,954
6,008
5,964
5,502
.258
.248
.234
6, 196
6,339
6,344
6, 174
5,944
5,615
.247
.258
.238
5,923
6,033
6,234
6,192
6,192
5,724
.297
.293
.271
7,137
7,004
7,039
7,027
7,023
6,508
.227
.245
.218
5,448
5,613
6,089
5,990
5,883
5,234
.260
.257
.241
6,241
6,306
6,330
6,165
5,793
.268
.273
.276
.273
.234
.245
6,428
6,545
6,503
6,548
6,600
6,796
6,623
6,543
5,624
5,892
6,532
6,851
i The house on which costs are reported is a detached 8-room home of 24,000 cubic feet volume. Living room,;dmmg room, kitchen, and lavatory onfirstfloor;3
bedrooms and bath on second floor. Exterior is wide-board siding with brick and stucco as features of design. Best quality materials and workmanship are used
throughout.
The house is not completed ready for occupancy. It includes all fundamental structural elements, an attached 1-car garage, an unfinished cellar, an unfinished attic,
a fireplace, essential heating, plumbing, and electric wiring equipment, and complete insulation. It does not include wall-paper nor other wall nor ceiling finish
on interior plastered surface, lighting fixtures, refrigerators, water heaters, ranges, screens, weather stripping, nor window shades.
Reported costs include, in addition to material and labor costs, compensation insurance, an allowance for contractor's overhead and transportation of materials,
plus 10 percent for builder's profit.
Reported costs do not include the cost of land nor of surveying the land, the cost of planting the lot, nor of providing walks and driveways; they do not include
architect's fee, cost of building permit, financing charges, nor sales costs.
In figuring costs, current prices on the same building materials list are obtained every 3 months from the same dealers, and current wage rates are obtained from
the same reputable contractors and operative builders.
296
Federal Home Loan Bank Review
Table 4.—Estimated volume of new loans by all savings and loan associations, classified according
to purpose
[Thousands of dollars]
Mortgage loans on homes
Construction
January
February
March
January
February
March
April
May
June
July
August
September
October
November
December
January
February
March
1936
Home purchase
$155, 463
7,089
7,027
9,725
1937
209,
11,
13,
18,
22,
20,
21,
20,
19,
17,
$188, 637
9,298
9,680
11, 920
17, 114
14, 582
13, 043
$152,
10,
10,
12,
067
265
845
842
$50, 618
2,691
3,229
3,677
$80, 838
5,995
5,686
8,474
$627,
35,
36,
46,
623
338
467
638
764,
44,
49,
66,
77,
76,
78,
70,
67,
66,
63,
53,
50,
489
414
083
176
500
422
667
674
261
411
621
770
490
509
510
629
007
381
831
696
934
172
277
494
227
351
161, 393
10, 643
11, 405
15, 502
15,811
15, 113
15, 905
14, 668
14, 382
12, 919
12, 695
11,000
11, 350
49, 435
2,583
2,667
3,915
4,949
4,862
5,069
4,472
4,339
4,691
4,527
4,076
3,285
76, 301
4,794
5,298
6,501
7,261
7,016
7,369
6,317
6,026
6,582
6,791
5,885
6,461
11, 904
13, 632
17, 526
10, 057
9,964
12, 734
2,745
2,989
3,907
5,640
6,077
6,909
267,
14,
16,
22,
27,
28,
28,
24,
23,
24,
22,
18,
16,
851
884
084
251
098
600
628
283
342
942
Reconditioning
Refinancing
Total loans,
all purposes
Loans for
all other
purposes
Month
1938
10, 796
10, 628
14, 727
41, 142
43, 290
55, 803
Table 5.—Estimated volume of new loans by all savings and loan associations, classified according to
type of association
[Amounts are shown in thousands of dollars]
Percent of total
Volume of loans
Month
Total
January
February
March
January
February
March
April
May
June
July
August
September
October
November
December
January
February
March
May 1938
1936
1937
1938
$627, 623
35, 338
36, 467
46, 638
764, 489
44, 414
49, 083
66, 176
77, 500
76, 422
78, 667
70, 674
67, 261
66,411
63, 621
53, 770
50, 490
41, 142
43, 290
55, 803
Federal
$228,
11,
12,
15,
307,
17,
19,
27,
32,
30,
31,
28,
26,
26,
24,
20,
20,
896
764
105
310
278
543
360
829
915
998
577
693
768
189
539
829
038
16, 781
17, 520
23, 356
State
members
Nonmembers
Federal
State
members
Nonmembers
$275,
16,
15,
19,
972
436
206
776
$122, 755
7,138
9,156
11,552
36
33
33
33
44
47
42
42
20
20
25
25
338,
18,
21,
28,
33,
34,
35,
31,
29,
29,
29,
24,
21,
174
671
509
325
153
616
221
799
866
673
020
524
797
119, 037
8,200
8,214
10, 022
11, 432
10, 808
11, 869
10, 182
10, 627
10, 549
10, 062
8,417
8,655
40
39
39
42
42
41
40
41
40
39
38
39
40
44
42
44
43
43
45
45
45
44
45
46
46
43
16
19
17
15
15
14
15
16
14
16
16
15
17
6,476
6,170
7,359
41
41
42
43
45
45
16
14
13
17, 885
19, 600
25, 088
297
Table 6.—Estimated volume of new lending activity of savings and loan associations, classified by
District and type of association
[Amounts are shown in thousands of dollars]
New- loans
Bank District and type of
Federal E[ome Loan
association
March
1938
United States Total
FederaL
State member
Nonmember
February
1938
Percent
increase,
Mar. 1938
over Feb.
1938
New loans,
March 1937
Percent
increase,
Mar. 1938
over Mar.
1937
$55, 803
23, 356
25, 088
7,359
$43, 290
17, 520
19, 600
6,170
+
+
+
+
29
33
28
19
$66, 176
27, 829
28, 325
10, 022
-16
-16
-11
-27
District 1:
Total
Federal
State member
Nonmember
4,662
1,338
2,391
933
3,969
1,128
2,001
840
+
+
+
+
17
19
19
11
5,413
1,839
2,146
1,428
-14
-27
+ 11
-35
District 2:
Total
Federal
State member
Nonmember
4,704
1,727
1,558
1,419
3,110
1,142
894
1,074
+
+
+
+
51
51
74
32
4,581
1,597
1,384
1,600
+ 3
+8
+ 13
-11
District 3:
Total
Federal
State member
Nonmember
3,505
1,061
1,402
1,042
2,501
822
881
798
+
+
+
+
40
29
59
31
3,170
933
1,021
1,216
+ 11
+ 14
+ 37
-14
District 4:
Total
Federal
State member
Nonmember
7,179
3,085
3,377
717
6,316
2,365
2,993
958
+ 14
+ 30
+ 13
-25
8,302
3,378
3,676
1,248
-14
-9
-8
-43
District 5:
Total
Federal
State member
Nonmember
7,784
4,006
3,603
175
6,086
3,147
2,806
133
+
+
+
+
28
27
28
32
11,089
5,288
5,348
453
-30
-24
-33
-61
District 6:
Total
Federal
State member
Nonmember
Total
Federal
State memberNonmember
2,681
1,200
1,227
254
2,450
1, 192
1,083
175
3,083
1,395
1,283
405
5,209
2,208
2,769
232
3,833
1,531
2,117
185
+9
+1
+ 13
+45
+ 36
+ 44
+ 31
+ 25
6,673
2,628
3,651
394
-13
-14
-4
-37
-22
-16
-24
-41
District 7:
___
__
__
District 8:
Total
Federal
State member
Nonmember
3,933
1,707
1,235
991
2,704
1,060
942
702
+
+
+
+
45
61
31
41
3,803
1,792
1,191
820
+3
—5
+4
+21
District 9:
Total
Federal
State member
Nonmember
4,448
1,727
2,417
304
3,299
1,244
1,821
234
+
+
+
+
35
39
33
30
4,085
1,374
2,298
413
+9
+ 26
+5
-26
District 10:
Total
Federal
State member
Nonmember
3,602
1,607
1,219
776
2,904
1, 185
973
746
+ 24
+ 36
+ 25
+4
4,352
1,763
890
1,699
-17
-9
+ 37
-54
District :
Total
Federal
State member
Nonmember
2,740
1,613
799
328
1,732
927
610
195
+
+
+
+
58
74
31
68
3,818
2,292
1,380
146
-28
-30
-42
+ 125
District 12:
Total
Federal
State member
Nonmember
5,356
2,077
3,091
188
4,386
1,777
2,479
130
+
+
+
+
22
17
25
45
7,807
3,550
4,057
200
-31
— 41
-24
-6
298
Federal Home Loan Bank Review
Table 7.—Monthly lending activity and total assets as reported by 2,766 savings and loan associations
in March 1938
[Source: Monthly reports from savings and loan associations to the Federal Home Loan Bank Board]
[Amounts are shown in thousands of dollars]
L o a n s m a d e i n M a r c h according t o p u r p o s e
N u m b e r of
associations
M o r t g a g e loans o n 1- t o 4-family n o n f a r m h o m e s
Federal H o m e Loan Bank
Districts a n d States
Construction
Submitting
reports
U N I T E D STATES
Amount
Number
3,780 $11,595.7
5,272 1$12,995.5
1,182
898
232
2,272
1,358
150
7,189.7
4,054.6
351.4
2,639
2,273
360
6,586.2
5,610.6
798.7
163
140
174
688.5
334
28
20
93
9
7
6
21
15
86
8
6
4
29
5
110
9
18
3
103.6
13.6
470.5
22.4
71.9
6.5
24
24
213
16
48
9
286
168
247
1,075.8
147
139
49
119
15
232
46.1
1,029.7
221
145
61
N o . 2—New Y o r k
N e w Jersey
New York
1
Delaware
Pennsylvania
W e s t Virginia
Number
Amount
2,312
Connecticut
Maine
Massachusetts New Hampshire
Ehode Island
Vermont
T o t a l l o a n s , all
purposes
Total
assets,
M a r . 31,
1938»
Amount
Number
1,289
1,099
378
N o . 1—Boston
Refinancing a n d reconditioning 2
Home purchase1
2,766
Federal
State member
Nonmember
N o . 3—Pittsburgh
Reporting
loans
made
Total
L o a n s for all
other purposes
Refinanc- Reconditioning
ing
berof
savings
and
loan
associa
tions *
Number
Amount
Number
20,130 $42,141.1 $2,821,110.0
9,709
Amount
7,333
$9,711.8
$2,780.2
3,745
$5,057.9
3,866
3,004
473
5,326.5
3,998.5
386.8
1,349.2
1,198.0
233.0
1,605
1,785
355
2,227.5
2,461.4
369.0
10,372
8,420
1,338
22,679.1
17,323.1
2,138.9
1,124,620.5
1,438,455.0
258,034.5
1,333
2,562
5,814
1,124.0
470
551.5
271.5
289
413.2
1,267
3,048.7
315,567.8
362
83.6
52.5
735.5
43.7
180.2
28.5
28
45
328
33
22
14
62.4
35.3
376.2
32.6
34.7
10.3
6.6
11.6
215.5
18.1
12.2
7.5
3
27
168
52
24
15
3.3
49.2
206.7
114.6
36.0
3.4
84
101
819
110
112
41
259.5
162.2
2,004.4
231.4
335.0
56.2
18,191.4
11,918.7
243,030.7
8,702.7
29,382.7
4,341.6
52
42
215
30
9
14
278
1,004.2
311
609.6
197.2
180~
218.6
1,016
3,105.4
342,869.0
1,782
43
235
142.4
861.8
35
276
109.9
499.7
10.9 1
186.3
44
136
43.3
175.3
137
, 879
352.6
2,752.8
95,672.2
247,196.8
1,498
284
207.6
240
632.2
289
500.8
64
84.9
654
1,520.4 |
99,621.9
2,521
50.4
507.5
74.3
13
195
81
18.0
388.8
94.0
2.1
63.4
29.4
10
40
14
9.0
57.0
18.9
40
465
149
84.2
1,169.6
266.6
5,430.8
79,867.7
14,333.4
43
2,410
68
962
1,701.2
258.9
470
886.6
2,618
5,837.6
282,492.4
1,035
25.6
864.1
159.1
163.5
139.0
147.8
81.1
121.0
8.2
48.2
29.4
15.8
6.0
65.5
26.5
59.3
22
130
45
58
27
115
39
17.5
333.9
133.2
68.6
44.0
121.2
116. 2
52.0
103
511
325
321
260
583
265
260
127.2
1,786.9
864.8
510.8
685.0
810.5
516. 5
535.9
6,662.3
117,280.8
31,450.7
17,222.5
34,886.1
35,048. 2
15,505.9
24,436.9
43
28
96
64
460
183
79
92
!
94.9
9
187
25
8
117
20
3
38
20
4.7
152.9
50.0
14
192
34
N o . 4 — W i n s t o n - S a l e m . _.
305
274
617
1,700.5 |
569
1,290.4
Alabama
D i s t r i c t of C o l u m b i a .
Florida
Georgia
Maryland
N o r t h Carolina
South Carolina
Virginia
_
17
16
50
46
60
60
35
31
16
15
45
43
45
48
33
29
21
61
105
81
32
166
104
47
27
50
60
54
141
119
38
80
50.2
207.7
104.7
91.5
384.2
199.9
72.0
180. 2
404
353
468
1,586.9
1,004
2,576.0
1,210
1,412.3
444.0 |
830.5
3,337
6,849.7
561,040.0
973
67 i
299
38
67
262
34
76
312
80
202. 7
1,214.5
169.7
111
253. 6
852
2,249.0
41 !
73.4
223
869
118
238.1
1,010.3
163.9
61.7
350.7
31.6
109
510
36
101.1
677.9
51.5
519
2,543
275
857.2
5,502.4
490.1
59,856.6
482,719.0
18,464.4
185
732
56
201
187
195
417T6~
508
880.8
742~
574.5
247.3
388
295.1
1,833
2,415.3
232,879.8
380
137
50
114
J
146
55 |
209. 2
208. 4 1
391
117
593. 5
287.3
555
187
329.3
245. 2
199.0
48.3 |
248
140
168.6
126.5
1,308
525
1,499.6
915.7
134,498.4
98,381.4
304
76
1
278
240
600.1
514
1,477.4
726
1,105.3
403.7
266
415.1
1,669
3,901.6
255,636. 6
1,043
836
207
N o . 5—Cincinnati
Kentucky
Ohio
Tennessee
N o . 6—Indianapolis
Indiana
Michigan
N o . 7—Chicago
Illinois
Wisconsin
1
N o . 8—Des M o i n e s
Iowa
MfoTiesnt-ft - - • Missouri
North Dakota
South Dakota
81
1 163
25.7 1
333.0
438.4
171.4
111.8
276.1
220.7
123.4
33
270 1
115
128
60
183
84
89
34
1 655
180
60 |
107
56
355. 4
144. 7 |
445
69
1,282.7
194. 7 1
612
114
986.1
119.2
341.3
62.4
196
70
312.7
102.4
1,360
309
3,278.2
623.4
191^630.2
64,006.4
196
164
202
649.4
335
717.4
580
849.1
173.2
169
261.8
1,286
2,650.9 |
140,838.0
447
52
43
76
17
8
46
37
64
10
7
51
62
73
174.1
220.3
232.2
17.4
5.4
92
63
161
8
11
146.9
143.4
405.8
11.3
10.0
133
167
242
24
14
205.4
262.8
361.7
5.3
13.9
51.5
58.0
51.6
7.9
4.2
37
61
64
41.3
165.8
40.6
9.7
4.4
313
353
530
52
38
619.2
850.3
1,091.9
51.6
37.9
24,991.2
35,394.0
71,548.7
6,603.3
2,300.8
100
78
227
24
18
204
74
1
7
6
.
i Loans for home purchase include all those involving both a change of mortgagor and a new investment by the reporting institution on a property already built,
whether new or old.
2
Because many refinancing loans also involve reconditioning it has been found necessary to combine the number of such loans, though amounts are shown separately.
Amounts shown under refinancing include solely new money invested by each reporting institution and exclude that part of all recast loans involving no additional
investment by the reporting institution.
3
Assets are reported principally as of Mar. 31,1938.
4
The number of member associations of the Federal Home Loan Bank System reported as of Mar. 31,1938, and the number of nonmembers based upon the most
recent available data for 1936 or 1937, with adjustment for conversion through Mar. 31,1938, except for Maryland where the number of nonmembers is estimated.
May 1938
299
Table 7.—Monthly leading activity and total assets as reported by 2,766 savings and loan associations in March 1938—Continued
[ A m o u n t s a r e s h o w n in t h o u s a n d s of dollars]
L o a n s m a d e in M a r c h according t o p u r p o s e
N u m b e r of
associations
M o r t g a g e loans on 1- t o 4-family n o n f a r m h o m e s
Federal H o m e Loan Bank
D i s t r i c t s a n d States
Construction
Submitting
reports
Reporting
loans
made
Number
Amount
274
240
541
39
70
28
14
123
37
62
26
12
103
41
152
26
12
310
190
170
35
66
38
51
28
58
34
50
N o . 9—Little Kock
Arkansas
Louisiana.
Mississippi
N e w Mexico
Texas
___
N o . 10—Topeka
Colorado
Kansas
Nebraska
Oklahoma.
H o m e purchase
L o a n s for all
other purposes
Refinancing a n d r e c o n d i tioning
T o t a l loans, all
purposes
Amount
Number
Amount
Number
Amount
$224.8
334
$530. 2
2,081
$4,099.1
$174,327.9
401
26.6
92.4
17.7
11.2
76.9
72
107
35
11
109
75.1
291.2
23.9
10.4
129.6
261
608
132
51
1,029
369.5
1.550.0
148.5
76.0
1.955.1
11,331.3
85,346.9
5,163.1
3,843.1
68,643.5
66
82
50
21
182
520.4
175.9
425
506.7
1,587
2,771.0
163,337.0
369
73.2
127.0
92.4
227.8
35.9
52.3
38.7
49.0
48
99
149
129
78.0
124.0
132.3
172.4
217
425
384
561
448.4
685.3
523.3
1,114.0
21,466.9
45,419.1
43,783. 2
52,667. 8
60
149
91
69
Number
Amount
$1,386. 8
557
$1,241.4
649
$715.9 '
84.5
503.2
36.0
27.7
735.4
50
218
15
6
268
88.5
544.4
22.1
11.3
575.1
98
131
56
22
342
94.8
118.8
48.8
15.4
438.1
220
598.0
450
970.0
492
38
63
33
86
114.1
153.3
105.0
225.6
60
119
92
179
147.2
228.7
154.9
439.2
71
144
110
167
Number
Total
numb e r of
savings
and
loan
associations
Total
assets,
M a r . 31,
1938
Refinanc- Recondiing
tioning
124
110
304
785.2
232
485.8
439
475.4
170.2
270
334.1
1,245
2,250. 7
102,002.9
179
Idaho
Montana
Oregon
Utah
Washington
Wyoming
Alaska
9
14
26
9
55
10
1
9
12
23
7
50
8
1
23
25
81
22
144
7
2
63.1
79.0
194.1
84.0
334.2
16.6
14.2
21
11
49
18
126
7
0
36.6
21.6
104.2
47.8
261.7
13.9
0.0
35
27
84
34
241
18
0
45.9
30.4
109.5
49.0
229.7
10.9
0.0
13.7
10.7
28.6
14.9
95.8
6.5
0.0
33
20
45
15
155
2
0
24.4
31.2
74.2
36.5
162.0
5.8
0.0
112
83
259
89
666
34
2
183.7
172.9
510.6
232.2
1,083.4
53.7
14.2
6,325.1
8,973.9
24,485. 5
10,029.7
48,538.9
3, 551.3
98.5
13
23
36
21
71
14
1
N o . 12—Los Angeles
124
121
588
1,999.3
251
595.9
463
695.8
118.6
235
281.1
1,537
3,690. 7
150,496.7
217
3
116
2
3
3
113
2
3
9
574
0
5
25.8
1,954.7
0.0
18.8
10
235
1
5
31.2
549.7
1.6
13.4
13
442
2
6
24.8
654.8
2.8
13.4
1.9
113.2
1.6
1.9
2
230
1
2
4.7
254.9
2.5
19.0
34
1,481
4
18
88.4
3, 527.3
8.5
66.5
2,037.4
145, 551.7
723.4
2,184. 2
4
198
5
10
N o . 11—Portland
Arizona.._
California
Nevada
Hawaii
Table 8.—Index of wholesale price of building materials in the United States
[1926=100]
[Source: U. S. Department of Labor]
All build- Brick and
ing matile
terials
January
February
March
April
May
June
July
August
September
October
November
December
January
February
March
1937
1938
Change:
Mar. 1938-Feb. 1938.
Mar. 1938-Mar. 1937
300
Cement
Lumber
Paint and Plumbing
and
paint maheating
terials
Structural
steel
Other
91.3
93.3
95.9
96.7
97.2
96.9
96.7
96.3
96.2
95.4
93.7
92.5
89.7
91.0
91.8
94.9
95.0
95.0
95.4
95.5
95.0
93.4
92.9
92.0
95.5
95.5
95.5
95.5
95.5
95.5
95.5
95.5
95.5
95.5
95.5
95.5
93.0
99.0
102. 1
103.0
103.0
102.2
101.3
99.5
99.0
97.3
94.8
93.8
83.7
83.4
83.9
82.9
83.7
83.6
83.9
84. 1
84.6
84.2
81.5
80.2
77. 1
77.4
77.6
78.7
78.7
78.7
78.7
78.8
80.6
80.6
79.6
79.6
104. 7
104.7
112.9
114.9
114.9
114.9
114.9
114.9
114 9
114.9
114.9
114.9
92. 9
95. 0
98.9
99.9
101.3
101. 1
101.0
101.0
100.8
100.2
98.7
96.9
91.8
91. 1
91.5
91.8
91.5
91. 1
95.5
95.5
95.5
92.6
91.0
91.3
80.1
79.2
82.2
79.6
79.6
78.9
114.9
114.9
114.9
95.8
95.3
94.8
+ 0. 4 %
- 4 . 6%
-0.4%
-0.8%
0.0%
0.0%
+ 0. 3 %
-10.6%
+ 3. 8%
-2.0%
- 0 . 9%
+ 1.7%
0.0%
+ 1.8%
- 0 . 5%
-4.1%
Federal Home Loan Bank Review
Table 9.—Institutions insured by the Federal Savings and Loan Insurance Corporation *
Number
of shareholders
Cumulative number at specified dates
Dec.
31,
1934
State-chartered associations
Converted F. S. and L. A___ _
New F. S. and L. A
__ _
Total
Dec.
31,
1935
Assets
Share and
creditor liabilities
Dec.
31,
1936
Dec.
31,
1937
Feb.
28,
1938
Mar.
31,
1938
Mar. 31,
1938
Mar. 31, 1938 Mar. 31, 1938
623
685
644
828, 013
761, 321
192, 578
$690, 782, 574
856, 588, 247
259, 407, 346
4
108
339
136
406
572
382
560
634
566
669
645
599
681
644
451
1,114
1,576
1,880
1,924
$605, 152, 553
791, 022, 689
246, 868, 753
1,952 1, 781, 912 1, 806, 778, 167 1, 643, 043, 995
1
Beginning Dec. 31, 1936, figures on number of associations insured include only those associations which have remitted
premiums. Earlier figures include all associations approved by the Board for insurance.
Number of shareholders, assets, and share and creditor liabilities of insured associations are as of latest obtainable date
and will be brought up to date after June 30 and December 31 each year.
Table 70.—Monthly operations of 437 identical insured State-chartered savings and loan associations
reporting during February and March 1938
February
Share liability at end of month:
Private share accounts (number) _
Paid on private subscriptions
H. O. L. C. subscriptions
Total
Private share investments during month
Repurchases during month
Mortgage loans made during month:
a. New construction.
b. Purchase of homes
c. Refinancing
.
d. Reconditioning
e. Other purposes..
__ __
_
Total
Mortgage loans outstanding end of month.
Borrowed money as of end of month:
From Federal Home Loan Banks
From other sources
Total
_--
Total assets, end of month
1
__
-__
_
March
Change
February to
March
Percent
(*)
545, 453
545, 374
$390, 150, 500
32, 332, 800
$389, 618, 400
32, 623, 000
-0. 1
+ 0.9
422, 483, 300
422, 241, 400
-0. 1
+ 1.4
+ 6.0
6, 538, 100
6, 451, 900
6, 629, 400
6, 841, 600
1, 584, 600
2, 098, 200
1, 148, 800
413, 800
815, 300
2, 217, 400
2, 659, 500
1, 551, 800
526, 200
1, 014, 700
6, 060, 700
371, 548, 400
7, 969, 600
373, 608, 200
+ 31. 5
+ 0.6
25, 050, 800
2, 337, 700
24, 260, 900
2, 514, 000
-3.2
+ 7.5
27, 388, 500
26, 774, 900
-2.2
532, 119, 600
533, 752, 800
+ 0.3
+
+
+
+
+
39.9
26.8
35. 1
27.2
24.5
Less than one-tenth of 1 percent change.
May 1938
301
Table 77.—Monthly operations of 1,283 identical Federal savings and loan associations reporting
during February and March 1938
February
935, 881
948, 104
Percent
+ 1.3
$696, 009, 000
211, 510, 500
$703, 335, 900
211,873,000
+ 1.1
+0.2
907, 519, 500
915, 208, 900
+0.8
17, 167, 600
10, 292, 500
17, 359, 600
10, 017, 000
+ 1. 1
-2.7
5, 329, 900
4, 693, 800
4, 262, 400
1,116,400
1, 679, 200
7, 180, 200
6, 519, 700
5, 208, 300
1, 335, 600
2, 218, 000
17, 081, 700
855, 619, 400
22, 461, 800
870, 221, 000
+ 31.5
+ 1.7
90, 814, 800
1, 786, 400
88, 598, 900
1, 898, 400
-2.4
+ 6.3
92, 601, 200 j
90, 497, 300
—2.3
1, 119, 158, 200
+ 1. 1
Share liability at end of month:
Private share accounts (number)
Paid on private subscriptions
Treasury and H. 0 . L. C. subscriptions
-
Total
Private share investments during month
Repurchases during month
Mortgage loans made during month:
a. New construction
b. Purchase of homes
_
c. Refinancing
d. Reconditioning
e. Other purposes
'
|
Total
_
Mortgage loans outstanding end of month
Borrowed money as of end of month:
From Federal Home Loan Banks
From other sources
Total
__ _
_._
Total assets, end of month
1, 106, 728, 000
Table 12.—Federal Home Loan Bank advances
to member institutions by Districts
Change
February to
March
March
+
+
+
+
+
34.7
38.9
22.2
19.6
32. 1
Table 13.—Lending operations of the Federal
Home Loan Banks
[Thousands of dollars]
Federal Home Loan Banks
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
1—Boston
2—New York
3—Pittsburgh
4—Winston-Salem
5—Cincinnati
6—Indianapolis
7—Chicago
8—Des Moines
9—Little Rock
10—Topeka
11—Portland
12—Los Angeles
Total
Advances
made during
Mar. 1938
$85,
541,
377,
757,
327,
117,
458,
413,
455,
270,
517,
580,
000. 00
000. 00
150. 00
700. 00
000. 00
500. 00
165. 15
973. 00
000. 00
900. 00
000. 00
185. 65
4, 900, 573. 80
Advances
made during
Feb. 1938
$142,
994,
461,
421,
478,
132,
512,
127,
295,
210,
108,
187,
000. 00
000. 00
050. 00
000. 00
750. 00
500. 00
722. 57
000. 00
000. 00
600. 00
500. 00
500. 00
4, 070, 622. 57
302
Balance
outstanding at end
of month
Loans advanced
monthly
December 1935
June 1936
December 1936
$8, 414
11, 560
13, 473
$2, 708
3,895
5,333
$102, 795
118, 587
145, 401
59, 000
10, 221
11, 116
9,330
8,991
7,001
17, 591
37, 344
7,707
5,080
5,426
4,461
3,707
4,832
167, 057
169, 571
175, 607
179, 511
184, 041
187, 336
200, 095
3,723
4,071
4,900
13, 280
7,091
9,293
190, 538
187, 518
183, 125
1937
January through June.
July
August
September
October
November
December
January
February
March
Repayments
monthly
Month
1938
Federal Home Loan Bank Review
Table 14.—H.
O . L. C. subscriptions to shares of savings and loan associations—Requests and
subscriptions 1
Uninsured State-chartered members of
the F. H. L. B.
System
Requests:
Dec. 31, 1935
Dec. 31, 1936.
June 30, 1937
July 31, 1937
Aug. 31, 1937
Sept. 30, 1937
Oct. 31, 1937
Nov. 30, 1937
Dec. 31, 1937
Jan. 31, 1938
Feb. 28, 1938
Mar. 31, 1938
Subscriptions:
Dec. 31, 1935
Dec. 31, 1936
June 30, 1937
July 31, 1937
Aug. 31, 1937
Sept. 30, 1937
Oct. 31, 1937
Nov. 30, 1937
Dec. 31, 1937
Jan. 31, 1938
Feb. 28, 1938
Mar. 31, 1938
1
2
Insured State-chartered associations
Number
(cumulative)
Amount
(cumulative)
Number
(cumulative)
27
89
125
125
126
126
127
2
116
112
113
106
2
100
$1, 131, 700
3, 845, 710
5, 400, 710
5, 655, 210
6, 007, 210
6, 082, 210
6, 192, 210
2
5, 757, 210
5, 357, 210
5, 382, 210
5, 197, 210
2
4, 992, 210
2
45
63
52
48
47
48
2
38
40
40
36
2
33
100, 000
1, 688, 000
2, 381, 000
1, 934, 000
1, 926, 000
1, 901, 000
1, 931, 000
2
1 , 426, 000
1, 526, 000
1, 526, 000
1, 491, 000
2
1 , 401, 000
_
_
_-
._
Federal savings and
loan associations
Total
Number
Amount
(cumulative) (cumulative)
Amount
(cumulative)
Number
(cumulative)
33
279
473
515
586
623
639
665
666
675
692
711
$2, 480, 000
21, 016, 900
32, 873, 600
35, 410, 100
39, 633, 420
41, 510, 420
42, 148, 470
43, 308, 470
43, 490, 020
44, 055, 020
44, 816, 020
45, 975, 130
553
2,617
3,669
3,838
4,088
4,217
4,255
4,285
4,324
4,342
4,360
4,368
$21, 139, 000
108, 591, 900
159, 298, 600
166, 884, 100
177, 603, 700
182, 523, 000
184, 052, 200
185, 109, 200
187, 015, 400
187, 668, 400
188, 535, 900
188, 885, 900
613
2,985
4,267
4,478
4,800
4,966
5,021
5,066
5,102
5,130
5,158
5,179
$24, 750, 700
133, 454, 510
197, 572, 910
207, 949, 410
223, 244, 330
230, 115, 630
232, 392, 880
234, 174, 880
235, 862, 630
237, 105, 630
238, 549, 130
239, 853, 240
24
262
440
465
492
510
535
559
564
573
582
596
1, 980, 000
19, 455, 900
30, 283, 600
31, 176, 600
32, 950, 600
33, 675, 720
34, 954, 770
36, 086, 770
36, 331, 270
36, 843, 270
37, 073, 270
37, 714, 270
474
2,538
3,509
3,647
3,742
3,849
3,918
3,950
3,997
4,009
4,024
4,033
17, 766, 500
104, 477, 400
150, 368, 400
155, 917, 000
159, 511, 500
164, 226, 200
166, 447, 700
167, 154, 600
168, 762, 300
169, 035, 300
169, 670, 300
170, 057, 800
500
2,845
4,012
4,164
4,282
4,406
4,501
4,547
4,601
4,622
4,642
4,662
19, 846, 500
125, 621, 300
183, 003, 000
189, 027, 600
194, 388, 100
199, 802, 920
203, 333, 470
204, 667, 370
206, 619, 570
207, 404, 570
208, 234, 570
209, 173, 070
Amount
(cumulative)
Refers to number of separate investments, not to number of associations in which investments are made.
Reduction due to insurance or federalization of associations.
Table 75.—Properties acquired by H . O . L. C.
through foreclosure and voluntary deed 1
Period
Prior to 1935
1935: Jan. 1 through June 30
July 1 through Dec. 31
1936: Jan. 1 through June 30
July 1 through Dec. 31
1937: Jan. 1 through June 30
July 1 through Dec. 31
1938: January
February
M arch
Grand total to Mar. 31, 1938
1
Number
9
114
983
4,449
15, 646
23, 459
26, 899
4,811
4,334
4,906
85, 610
Does not include 19,082 properties bought in by H. O.
L. C. at foreclosure sale but awaiting expiration of the redemption period before title in absolute fee can be obtained.
In addition to the 85,610 completed cases, 468 properties
were sold at foreclosure sale to parties other than the H. O.
L. C. and 10,897 cases have been withdrawn due to payment
of delinquencies by borrowers after foreclosure proceedings
were authorized.
May 1938
Table 16.—Reconditioning Division—Summary of
all reconditioning operations of H . O . L. C.
through Mar. 3 1 , 1938 l
June 1,
1934,
through
Feb. 28,
1938
Mar. 1,
1938,
through
Mar. 31,
1938
Cumulative
through
Mar. 31,
[1938
12, 579!
906, 537
Cases received 2
893, 958!
Contracts awarded:
536,
945
10, 401
526, 544
Number
$100, 763, 488 $2, 173, 992 $102, 937, 480
Amount
Jobs completed:
527, 496
10, 1991
517, 297j
Number
$96, 999, 567 $2, 144, 7271 $99, 144, 294
Amount
1
All figures are subject to adjustment. Figures do not
include 52,269 reconditioning jobs, amounting to approximately $6,800,000, completed by the Corporation prior to
the organization of the Reconditioning Division on June 1,
1934.
2
Includes all property management, advance, insurance,
and loan cases referred to the Reconditioning Division which
were not withdrawn prior to preliminary inspection or cost
estimate prior to Apr. 15, 1937.
303
F. H. L B. System
(Continued from p. 293)
The Federal Home Loan Bank of Topeka is the
only Bank which has maintained its balance of advances outstanding in excess of the amount reported
on December 31, 1937. At the end of March, however, only the Portland and the Little Kock Banks
were able to report advances outstanding which
were greater in amount than at the end of February.
INTEREST RATES
The Federal Home Loan Bank of Des Moines
has established a 3%-percent annual collectible interest rate, effective April 1, 1938, on all outstanding
loans to members on and after that date, to continue
in effect until further action by the board of directors. The old rates were: 3% percent on all advances up to $1,000,000; 3 percent if the balance of
advances outstanding to any one member equaled
or exceeded $1,000,000.
Business Reviews
(Continued from p. 287)
deeds recorded per 1,000 families. A comparison
is then made between this index and the "Indiana
General Business Curve." Later, the Bureau plans
to supplement these data with statistics on the
volume of foreclosures, dollar volume of mortgage
recordings, vacancy surveys, interest rates charged
on first mortgages, and a rental index.
This type of information is not only extremely
valuable to Federal Home Loan Banks and member
institutions but to all persons concerned with homemortgage finance. A few of the Banks have already
cooperated with universities in their respective Districts in supplying data for these business reviews.
For example, since January the Federal Home Loan
Bank of Little Rock has provided the Louisiana
State University, for publication in the Louisiana
Business Review, monthly statistics on the number
and amount of construction loans made by all
insured institutions in the Ninth District. The
Federal Home Loan Bank of Indianapolis has contributed ideas as well as data to the Indiana Business
Review for its real estate section.
304
LOCAL MORTGAGE RECORDING STUDIES
Not only have some Federal Home Loan Banks
cooperated with universities in these studies, but a
few abstract and title companies in different sections
of the country have also added their help. At present, a number of abstract and title companies and
one Federal savings and loan association in Cincinnati are known to be compiling and making public valuable information on local mortgage and
deed recordings. An abstract and title company
in Detroit and a title company in Indianapolis both
compile monthly statistics relating to mortgage
recordings in Wayne County, Michigan, and Marion County, Indiana, respectively, which they
make available to the Federal Home Loan Bank
of Indianapolis. Likewise, title companies in Cincinnati, Seattle, and Los Angeles supply the same
type of information to the Federal Home Loan
Banks of their districts.
This is evidence of a further step in the development of local statistics: their correlation by regions
to provide the basis for a comparison between communities. So far this procedure of collection and
reporting has developed sporadically in scattered
parts of the country as local institutions recognize the
pressing need for adequate data on the operation of
their business. The value of the process would be
increased tremendously if standards were developed by a central correlating agency, and if uniform
methods of reporting were adopted. This subject
will be discussed in the next issue of the R E V I E W .
The survey made by the FEDERAL H O M E LOAN
B A N K R E V I E W of studies currently being carried on
by university business schools of significant trends in
real estate activity is not a comprehensive one. I t
simply indicates some significant developments which
have been brought to the attention of the R E V I E W
in a study of material available in the different
libraries of Washington and in correspondence with
university business schools. Because these developments are of interest to home-financing institutions, it is planned to continue the collection of data
in this field and the R E V I E W will be glad to receive
information at any time with respect to university
publications which deal with current real estate and
mortgage-lending activity. Reports of cooperative
undertakings by home-financing institutions with
universities, or with abstract and title companies,
for the purpose of developing local data on mortgage recordings are also requested.
Federal Home Loan Bank Review
DISTRICT NO.
Resolutions of the Board
AMENDMENT
TO R U L E S
AND REGULATIONS
ERAL
SAVINGS AND LOAN ASSOCIATIONS,
THAT
VOLUNTARY
COME
SHARES
REPURCHASES
HELD
ALABAMA:
Birmingham:
Guaranty Savings Building & Loan Association, 2124 First Avenue.
FOR
OF FULL-PAID
BY THE SECRETARY
TREASURY WILL BE CREDITED UPON
FED-
PROVIDING
IN-
DISTRICT NO. 5
OHIO:
Trenton:
Trenton Building & Loan Association.
OF THE
THE PURCHASE
REQUESTS WHICH THE SECRETARY OF THE TREASURY
IS PERMITTED BY STATUTE TO MAKE! A d o p t e d A p r i l 8 ,
DISTRICT NO. 6
INDIANA:
Indianapolis:
Peoples Mutual Saving & Loan Association, 118 North Delaware Street.
MICHIGAN:
Buchanan:
Industrial Building & Loan Association of Buchanan, Michigan.
1938; effective immediately.
DISTRICT NO. 7
ILLINOIS:
Section 37 of the Kules and Regulations for Federal
Savings and Loan Associations was amended by
adding at the end thereof the following:
Investments in full-paid income shares repaid by an institution voluntarily to the Secretary of the Treasury will be
credited upon the next succeeding requests by the Secretary
of the Treasury for the retirement or repurchase of such
investments from such institution to the extent of such
voluntary repayments.
AMENDMENT
TO
RULES
AND
REGULATIONS
FOR
IN-
V E S T M E N T S BY THE HOME OWNERS' LOAN CORPORA-
TION IN SECURITIES OF SAVINGS AND LOAN ASSOCIATIONS,
PROVIDING
THAT
VOLUNTARY
REPURCHASES
OF H.O.L.C. INVESTMENTS WILL BE CREDITED UPON THE
PURCHASE
LOAN
REQUESTS
CORPORATION
MAKE:
WHICH
THE HOME
IS PERMITTED
OWNERS'
BY STATUTE TO
Adopted April 8, 1938.
Paragraph numbered 4 of the first resolve of the
Kules and Regulations for Investments by the
Home Owners' Loan Corporation in Securities of
Savings and Loan Associations was amended by
inserting after the first sentence, the following:
Investments repaid voluntarily to the Corporation will be
credited upon the next succeeding requests by the Corporation for the repurchase or withdrawal of investments from
such institution to the extent of such voluntary repayments.
Macon:
Macon Savings Loan & Building Association.
DISTRICT NO. 8
IOWA:
Council Bluffs:
Insurance Plan Savings & Loan Association, 19 North Main Street.
MISSOURI:
Kansas City:
United Savings & Loan Association, 927 Walnut Street.
Marceline:
Marceline Home Savings & Loan Association.
St. Joseph:
South St. Joseph Building & Loan Association, Corner Tenth & Penn
Streets.
SOUTH DAKOTA:
Watertown:
Midland National Life Insurance Company.
DISTRICT NO. 10
KANSAS:
Leavenworth:
Leavenworth Mutual Building Loaning & Savings Association, 508
Shawnee Street.
WITHDRAWALS FROM THE FEDERAL HOME LOAN BANK
SYSTEM BETWEEN MARCH 16, 1938, AND APRIL 15, 1938
ILLINOIS:
Chicago:
Parkway Building & Loan Association, 2659 West Twenty-first Street
(merger with Albert Wachowski Loan & Savings Company, Chicago,
Illinois).
LOUISIANA:
New Orleans:
Acme Homestead Association, 802 Poydras Street (sale of assets to First
Homestead & Savings Association, New Orleans, Louisiana).
Crescent City Building & Homestead Association, 714 Union Street
(sale of assets to First Homestead & Savings Association, New Orleans,
Louisiana).
MARYLAND:
Baltimore:
East Avenue Building & Loan Association of Baltimore City, 3200 East
Baltimore Street (removal from membership).
Peabody Heights Building & Loan Association of Baltimore City, 2437
St. Paul Street (voluntary withdrawal).
MISSOURI:
Kansas City:
First Mortgage Savings & Loan Association, 318 Dwight Building (merger with United Savings & Loan Association, Kansas City, Missouri).
N E W JERSEY;
Directory of Member, Federal, and
Insured Institutions
Added during March-April
I. INSTITUTIONS ADMITTED TO MEMBERSHIP IN
THE FEDERAL HOME LOAN BANK SYSTEM
BETWEEN MARCH 16, 1938, AND APRIL 15, 1938 *
[Listed by Federal Home Loan Bank Districts, States, and cities]
DISTKICT NO. 3
PENNSYLVANIA:
New Brighton:
New Brighton Building & Loan Association, 1021 Third Avenue.
Philadelphia:
Harry T. Rosenheim Building & Loan Association, 1616 Walnut Street.
James W. Baird Building Association, 10 South Eighteenth Street.
Second Caledonia Building Association, 724 South Broad Street.
Southwark Foundry Building Association, 5302 Lebanon Avenue.
1
During this period 2 Federal savings and loan associations were admitted
to membership in the System.
May 1938
Newark:
J & M Building & Loan Association of Newark, New Jersey, 42 Lincoln
Street (voluntary withdrawal).
PENNSYLVANIA:
Pittsburgh:
Orpheus Building & Loan Association of Pittsburgh, Pennsylvania,
505 Larimer Avenue (voluntary withdrawal).
Twenty-first Ward Building & Loan Association No. 4 of Pittsburgh, 505
Larimer Avenue (voluntary withdrawal).
Western Pennsylvania Building & Loan Association of Allegheny, 401
Federal Street (voluntary withdrawal).
Wilkes-Barre;
Wyoming Valley Building & Loan Association, 25 West Market Street
(removal from membership).
II. FEDERAL SAVINGS AND LOAN ASSOCIATIONS
CHARTERED BETWEEN MARCH 16, 1938, AND
APRIL 15, 1938
DISTRICT NO. 3
PENNSYLVANIA:
Philadelphia:
Clearfield Federal Savings <& Loan Association, 7300 Frankford Avenue
(converted from Clearfield Building Association of Philadelphia).
Pottstown:
First Federal Savings & Loan Association of Pottstown, 27 North Hanover Street (converted from Pottstown Building & Loan Association).
305
D I S T R I C T NO. 4
ALABAMA:
Mobile:
Mobile Federal Savings & Loan Association, 164 St. Louis Street (converted from Mobile Building & Loan Association).
N O E T H CAROLINA:
DISTRICT NO. 5
KENTUCKY:
Frankfort:
First Federal Savings & Loan Association of Frankfort, 205 St. Clair
Street.
OHIO:
Cleveland:
South Side Federal Savings & Loan Association, 3115 West Twentyfifth Street.
Dayton:
Lincoln Federal Savings & Loan Association of Dayton, 1800 West Third
Street.
Steuben ville:
Ohio Valley Savings & Loan Company, 426 Washington Street.
Brevard:
Brevard Federal Savings & Loan Association.
D I S T R I C T NO. 5
KENTUCKY:
Frankfort:
.
, .
First Federal Savings & Loan Association of Frankfort, 205 St. Clair
Street (converted from Greater Frankfort Building & Loan Association),
OHIO:
Cleveland:
South Side Federal Savings & Loan Association, 3114 West Twentyfifth Street (converted from South Side Savings & Loan Association of
Cleveland, Ohio).
Third Federal Savings & Loan Association of Cleveland, 6214 Fleet
Avenue.
Dayton:
Lincoln Federal Savings & Loan Association of Dayton, 1800 West Third
Street (converted from West Dayton Savings Association).
D I S T R I C T NO. 6
INDIANA:
Evansville:
Permanent Loan & Savings Association of Evansville, 27 Southeast
Third Street.
MICHIGAN:
Detroit:
Detroit Federal Savings & Loan Association, 210 Barium Tower Building.
DISTRICT NO. 7
ILLINOIS:
Chicago:
Adams Building & Loan Association, 3938 West Twenty-sixth Street.
Apollo-Uland Building & Loan Association, 106 North Pulaski Road.
Borivoj Building & Loan Association, 1536 West Eighteenth Street.
Keistuto Loan & Building Association No. 1, 840 West Thirty-third
Street.
Lstibor Building & Loan Association, 3856-58 West Twenty-sixth Street.
Midwest Savings & Loan Association, 3030 West Cermak Road.
Lincoln:
Lincoln Savings & Loan Association, 600 Broadway.
Springfield:
Springfield Building & Loan Association, 604 East Capitol Avenue.
Springfield City Savings & Loan Association, 320 East Adams Street.
Workingmen's Savings <fe Homestead Association, 215 South Fourth
Street.
DISTRICT NO. 8
DISTRICT NO. 9
TEXAS:
Galveston:
Guaranty Federal Savings & Loan Association, 2128 Mechanic Street.
D I S T R I C T NO. 10
OKLAHOMA:
Oklahoma City:
First Federal Savings & Loan Association of Oklahoma, 109 North
Broadway (converted from Federal Savings & Loan Association of
Oklahoma).
IOWA:
CANCELATIONS OF FEDERAL SAVINGS AND LOAN ASSOCIATION
CHARTERS BETWEEN MARCH 16, 1938, AND APRIL 15, 1938
Council Bluffs:
Insurance Plan Savings & Loan Association, 19 North Main Street.
MISSOURI:
Kansas City:
United Savings & Loan Association, 927 Walnut Street.
Palmyra:
Palmyra Saving & Building Association.
St. Joseph:
South St. Joseph Building & Loan Association, Corner Tenth & Penn
Streets.
D I S T R I C T NO. 9
ILLINOIS:
Chicago:
Marquette Federal Savings & Loan Association, 2351 Addison Street
(failure to complete organization).
IOWA:
Clarion:
Wright County Federal Savings & Loan Association of Clarion, Crowe
Block (merger with Webster City Federal Savings & Loan Association, Webster City, Iowa).
TEXAS:
Galveston:
Guaranty Federal Savings & Loan Association, 2128 Mechanic Street.
SOUTH DAKOTA:
Sioux Falls:
First Federal Savings & Loan Association of Sioux Falls, Corner Tenth
Street & Main Avenue (failure to complete organization).
D I S T R I C T NO. 10
OKLAHOMA:
Oklahoma City:
First Federal Savings & Loan Association of Oklahoma, 10S North
Broadway.
III. INSTITUTIONS INSURED BY THE FEDERAL
SAVINGS AND LOAN INSURANCE CORPORATION
BETWEEN MARCH 16, 1938, AND APRIL 15, 1938
Vacancies
D I S T R I C T NO. 2
N E W JERSEY:
Irvington:
Supreme Building & Loan Association of Irvington, N. J., 1345 Springfield Avenue.
Ridgefield Park:
Park Building <fe Loan Association of Ridgefield Park, N. J., 198 Main
Street.
N E W YORK:
North Tarrytown:
Tarry town and North Tarrytown Savings & Loan Association, 250
North Washington Street.
D I S T R I C T NO. 3
PENNSYLVANIA:
Philadelphia:
Northern Liberties Federal Savings & Loan Association, 16 West Queen
Lane.
DISTRICT NO. 4
ALABAMA:
Birmingham:
Guaranty Savings Building & Loan Association, 2124 First Avenue.
MARYLAND:
Baltimore:
Atlantic Federal Savings & Loan Association, 1617 East Federal Street.
306
•
THE Survey of Current Business finds from
scattered reports which are available that residential vacancies during 1937 have apparently held
at the low figures attained during 1936, and in some
cases have declined even further. The trend in
residential vacancies has been steadily downward
since 1932, and in 1936 several of the larger cities
reported less than 2 percent of the total number
of dwelling units unoccupied. Vacancy percentages
at the end of 1937 for single-family dwelling units
were: Denver, 1.1 percent; Oakland, 1.4 percent;
Minneapolis, 0.7 percent; and Chicago, 1.7 percent.
Houston showed a vacancy ratio of 1.1 percent on
a total of 71,000 buildings.
Federal Home Loan Bank Review
U. S. GOVERNMENT PRINTING OFFICE: 1938
FEDERAL HOME LOAN BANK DISTRICTS
—
$
BOUNDARIES OF FEDERAL HOME LOAN BANK DISTRICTS.
FEDERAL HOME LOAN BANK CITIES.
OFFICERS OF FEDERAL HOME LOAN BANKS
BOSTON
CHICAGO
B. J. ROTHWELL, Chairman; E. H. WEEKS, Vice Chairman; W. H.
NEAVES, President; H. N. FAULKNER, Vice President; FREDERICK
MORTON BODFISH, Vice Chairman; A. R. GARDNER, President; JOHN
BARDWICK, JR., Vice President-Treasurer; CONSTANCE M. WRIGHT,
Secretary; LAURETTA QUAM, Assistant Treasurer; TJNGARO & SHER-
WINANT, JR., Treasurer; L. E. DONOVAN, Secretary; P. A. HENDRICK,
ConnseL
WOOD, Counsel.
N E W YORK
GEORGE MACDONALD, Chairman; F. V. D. LLOYD, Vice Chairman;
G. L. BLISS, President; F. G. STICKEL, JR., Vice President-General
Counsel; ROBERT G. CLARKSON, Vice President-Secretary; DENTON
C. LYON, Treasurer.
PITTSBURGH
E. T. TRIGG, Chairman; C S. TIPPETTS, Vice Chairman; R. H. RICHARDS, President; G. R. PARKER, Vice President; H. H. GARBER,
Secretary-Treasurer; R. A. CUNNINGHAM, Counsel.
DES
MOINES
C. B. BOBBINS, Chairman; E. J. RUSSELL, Vice Chairman; R. J. RICHARDSON, President-Secretary; W. H. LOHMAN, Vice President-Treasurer;
J. M. MARTIN, Assistant Secretary; A. E. MUELLER, Assistant
Treasurer; E. S. TESDELL, Counsel.
LITTLE ROCK
J. GILBERT LEIGH, Chairman; W. C. JONES, JR., Vice Chairman; B. H.
WOOTEN, President; H. D. WALLACE, Vice President; W. F. TARVIN,
Treasurer; J. C. CONWAY, Secretary; W. H. CLARK, JR., Counsel.
"WINSTON-SALEM
TOPEKA
G. W. WEST, Chairman; E. C. BALTZ, Vice Chairman; O. K. LAROQUE,
President-Secretary; G. E. WALSTON, Vice President-Treasurer; Jos. W.
W. R. MCWILLIAMS, Chairman; G. E. McKmifis, Vice Chairman;
C. A. STERLING, President-Secretary; R. H. BURTON, Vice PresidentTreasurer; JOHN S. DEAN, JR., General Counsel.
HOLT, Assistant Secretary; RATCUFFE, HUDSON & FEBRELL, Counsel.
PORTLAND
CINCINNATI
T. H. TANGEMAN, Chairman; W. D. SHULTX, President; W. E. JULIUS,
Vice President; A. L. MADDOX, Treasurer; DWIGHT WEBB, JR.,
Secretary; TAFT, STETTINIUS & HOLLISTER, General Counsel.
F. S. MCWILLIAMS, Chairman; B. H. HAZEN, Vice Chairman; F. H.
JOHNSON, President-Secretary; IRVING BOGARDUS, Vice PresidentTreasurer; Mrs. E. M. SOOYSMITH, Assistant Secretary.
Los ANGELES
INDIANAPOLIS
F. S. CANNON, Chairman-Vice President; S. R. LIGHT, Vice Chairman;
C. H. WADE, Chairman; D. G. DAVIS, Vice Chairman; M. M. HURFORD, President; C. E. BERRY, Vice President; F. C. NOON, Secretary-
FRED T. GREENE, President; B. F. BURTLESS, Secretary-Treasurer;
Treasurer; VIVIAN SIMPSON, Assistant Secretary; RICHARD FITX-
JONES, HAMMOND, BUSCHMANN & GARDNER, Counsel.
PATRICK, General Counsel.
@FedFRASER