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V o l . 11, No. 8
Washington, D. C.
" W e seek peace—enduring peace.
MAY
More than an end to war,
we want an end to the beginnings of all wars—yes, an end to
this brutal, inhuman, and thoroughly impractical method of
settling the differences between governments.
"Today we are faced with the preeminent fact that, if civilization
is to survive, we must cultivate the science of human relationships—the ability of all peoples, of all kinds, to live together
and work together, in the same world, at peace.
"The only limit to our realization of tomorrow will be our doubts
of today.
Let us move forward with strong and active faith.11
^-yS^/^tW
1945
FEDERAL HOME LOAN BANK
Contents
in1
Page
SECURITIES FOR THE BOND PORTFOLIO
By: Everett Smith, Fiscal A g e n t , F H L Banks
219
THE LIQUIDITY PATTERN LAST YEAR
Annual analysis of trends in all insured associations
Vol.
11
No.
8
223
WHAT'S NEW IN HOUSING RESEARCH?
Some recent technical developments
226
THE PATH WE HAVE TRAVELED
Study of long-term savings and loan cycle
The Federal Home Loan Bank Review
is published monthly by the
Federal
Home Loan Bank Administration under
the direction of a staff editorial com-
229
INDIVIDUAL SAVINGS AND WAR FINANCE
Significance of savings in the Seventh W a r Loan
STATISTICAL
235
DATA
New family-dwelling units
242-243
for interpretations, opinions, summaries,
Building costs
243-244
and other text, except that which ap-
Savings and loan lending
244-245
pears in the form of official statements
Mortgage
245-246
and signed articles.
Sales of U. S. war savings bonds
246
F H A activity
246
mittee.
This committee
is responsible
Each issue is written for executives of
thrift
and
home-financing
institutions,
especially those whose organizations are
insured by the
Loan
Federal
Savings
Insurance Corporation
and
members of the Federal Home
and
are
Loan
Bank System.
Communications
concerning
material
which has been printed or which is desired for publication should be sent to
the Editor of the Review, Federal Home
Loan Bank Building, Washington
recordings
Federal Home Loan Banks
,
246
Insured savings and loan associations
247
Savings held by institutions
247
Foreclosures
247
REGULAR
DEPARTMENTS
Directory Changes of Member, Federal, and Insured Institutions
233
Home Front
234
Monthly Survey
237
*
25,
Contents of this publication are not copyrighted
may be printed freely
D. C.
•
•
and
•
*
The Federal H o m e Loan Bank A d m i n istration assumes no responsibility for
material obtained from sources other
than itself or other instrumentalities of
the Federal Government.
218
SUBSCRIPTION PRICE OF REVIEW.—A copy of the REVIEW is sent to each member and insured institution without charge. To others the annual subscription price, which covers the cost
of paper and printing, is $1. Single copies will be sold at 10 cents. Outside of the United States,
Canada, Mexico, and the insular possessions, subscription price is $1.60; single copies, 15 cents.
Subscriptions and orders for individual copies should be sent with remittances to the Superintendent
of Documents, Government Printing Office, Washington 25, D. C.
APPROVED BY THE BUREAU OF THE BUDGET.
Federal
Home
Loan Bank Revi
SECURITIES FOR THE BOND PORTFOLIO
This article summarizes the salient points which members will wish to
bear in mind in selecting securities for their Government portfolio.
It does not undertake to establish any optimum pattern for investment
since requirements vary infinitely both by institution and by area.
\y EVERETT SMITH, Fiscal Agent
federal Home Loan Banks
yield from the latter exceeds that from partially tax
exempts with similar maturities.
|
Marketable vs. Non-Negotiable Issues
D U R I N G the past few years a marked change
has occurred in the composition of the assets of
avings and loan associations. From a position of
Native unimportance in 1941, holdings of Treasury
•ssues have increased until they now constitute close
0 one-quarter of the assets of the average associa1011 throughout the country. Government obligaions have various features or characteristics inherent
1 the terms of their issue, other than those of maturiies and coupon rates, which must be understood aud
arefully examined in building a portfolio. . The
resence or absence of these factors, a discussion of
Inch follows, to a large extent will govern the seleeion of issues and determine those which are approbate for the funds which are to be invested.
oupon Bonds vs. Registered Bonds
Generally bonds are registered in order to provide
hysical safety. If adequate safekeeping facilities
re available it is desirable that bonds should be cared in coupon form. When selling registered bonds
le dealers in Government securities will usually bid
/32nd—it may be l/64th for issues for which there
a strong demand—below the quotation for similar
onds in coupon form, or if it is desire first to convert
le registered issue into coupon bonds a period of
vo to three weeks is likely to ensue before the exlange has been completed, at the end of which time
le market may be quite different from that existing
irlier. Coupon bonds for the most part are readv marketable without concession from the current
notations.
taxable vs. Partially Tax Exempt Issues
Little need be said to savings and loan managers
meerning this feature since income from Governient securities received by associations is exempt
om taxation. Some association portfolios include
few partially tax exempt issues. I t would seem
^sirable that all partially tax exempt bonds be sold
xd the funds reinvested in taxable issues, since the
\ay 1945
The non-marketable bonds held by associations,
chiefly Series F and G savings bonds, are redeemable
after six months from date of issue on the first of
any month on one month's notice at fixed prices
stated in the terms of the issues. The full coupon
income from these non-negotiable bonds can be obtained only if they are held throughout the full term
of years to maturity. There is no market risk attached to these bonds, since they are redeemable at
certain stated prices. However, as an offset for this
absence of market risk, the holder sacrifices immediate liquidity and the probability, in many issues,
of some price appreciation which may reasonably be
expected over a period of time so long as the Treasury maintains its current pattern of interest rates.
The marketable bonds, by contrast, are subject to
price changes, but for the most part they may be
liquidated when desired. Furthermore they will
produce a definite income which is determined at the
outset when the purchase is made and which will
continue throughout the period during which they
are held. Funds of a clearly long-term nature, the
investment of which is likely to be of a somewhat
permanent character, may well be invested in nonnegotiable issues. Conversely, funds of a shorter
nature which may be needed for home financing or
to meet withdrawals during the next few years,
more logically should be invested in marketable
issues which may be readily liquidated when the
money is needed.
Restricted vs. Non-Restricted Bonds
It has become generally accepted that the major
portion of the investments of commercial banks in
Government securities shall be in issues with maturities of 10 years or less, because of the more liquid
character of the issues within that grouping. For
that reason, most long-term bonds issued by the
Treasmy in recent years have carried a restriction
that they may not be owned by commercial banks
219
for 10 years from date of issue. This restriction on
the ownership of long-term bonds is an influential
market factor. About 45 percent of all the outstanding marketable Treasury bonds are held by
the banks and, consequently, those which are eligible
for bank ownership are more widely distributed,
are more actively traded and are more readily
marketable.
I t is important to note the change in this restrictive
feature in the new 2% percent and 2% percent bonds
which will be offered in the Seventh War Loan.
The period of restriction on those bonds has been
lengthened and they will be ineligible for ownership
by the commercial banks until within 10 years of
maturity date instead of date of issue as heretofore.
This will result in seven years of restriction of the
2}{ percent and 17 years for the 2){ percent bonds.
In large part these long-term iueligible bonds are
held by insurance companies, savings banks, trust
and other investors of long-term funds, which
generally buy for investment on a yield basis and so
do not trade in Government bonds to any material
extent.
By contrast it should be noted that the nonrestricted or eligible bonds are widely held by commercial banks throughout the country, as well as
other investors of shorter term funds, and that they
possess a higher degree of liquidity or marketability
than the restricted issues. The latter, to be sure,
may be used as collateral for advances from the
Federal Home Loan Banks, but in that event the
association's line of credit is correspondingly reduced,
while the sale of an issue provides the desired funds
without reducing the available credit.
"Interest Curve**
There has been wide discussion particularly during
recent months of the so-called "interest curve" or
"Treasury yield curve" and the relationship of some
issues, especially the 2-percent bonds, to that
"curve." Since an understanding of this "interest
curve" is important because of its effect on the market price of many bond issues, a brief outline of its
origin and influence is pertinent. In the fall of 1942
when the Treasury commenced its vast war-financing
program it announced that interest rates had been
fixed on certain maturities and that 90-day Treasury
bills would carry % of 1 percent interest with a maximum rate of 2 percent on bonds with maturities of
not over 10 years. Thus a pattern developed under
which 90-day Treasury bills bear an interest rate of
% of 1 percent; one-year certificates of indebtedness,
220
7
s percent; 4—4^ year notes, 1% percent; 8-10-yea
bonds, 2 percent and long-term bonds 2% percent.
This pattern of short-term money at low interes
rates and longer-term money at higher rates ha
become so generally accepted that it is sometime
overlooked that historically the short-term interes
rate for considerable periods has been equal to o
even exceeded the long-term rate. As long as th
level of interest rates adopted in 1942 was main
tained, the 9-10 year 2-percent bonds, as the;
shortened to about four years before their caJ
dates, automatically conformed to the rate estab
lished for four-year money, which was V/2 percent
In order that an issue carrying a 2-percent coupo
might give a return of about lK percent, it has t
rise in price to a premium of a little over 2 points
equivalent to an annual appreciation at the rate c
about y2 point. Thus it came about that m a n
investors who subscribed for the 2-percent issues a
par experienced an appreciation of about % point
year for approximately the first four years in additio
to the coupon income of 2 percent, or an aggregat
return in the neighborhood of 2}{ percent a yeai
The 2-percent issues under the "interest curve
then existing tended to level off in price about fou
years from their call dates and then commence
gradually to lose their premiums until they reache
par at call date. As long as that pattern of intern
rates was maintained it was possible to forecast wit
a fair degree of accuracy the general price movement
of various Treasury issues over a period of month;
In November 1944, the British Treasury made
notable change in the rate of interest and the rm
turity of its major bond issue for financing the wa
I t discontinued the offering of 2^-percent bond;
due in 1954 and callable in 1952, and in their plac
issued 1%-percent bonds due in 1950. This actio
was interpreted as a definite lowering of the level (
interest rates by the British Treasury and as a for<
runner of similar action by the United State
Treasury.
This widely accepted belief that the United State
Treasury would also reduce its pattern of interes
rates resulted in a material rise in the prices of man
Treasury issues with a consequent lessening of yield
a market condition which made inevitable the lowe
ing of the previously existing rate structure. Tl
extent of this decline from as recently as Decembc
1944 may be seen in the movement of the 2-percet
8-10 year bonds which have declined in yield a]
proximately % percent, reflecting a price increase (
about 2% points since being quoted in the ope
Federal Home Loan Bank Revie
narket, while the 2%-percent bonds of 1972/67, the
mly long-term 2%-percent bonds eligible for purchase
>y commercial banks, which were then selling at
00.22 to yield 2.46 percent, are now quoted about
> points higher to yield approximately 2.28 per•ent and the maximum price rises and the mininum yields may not even yet have been reached
n the longer maturities. The elimination by the
Treasury of the popular unrestricted medium-term
ssues, the 2-percent bonds, has been instrumental
n furthering this market trend as has a growing
ealization that the Treasury is likely to limit future
>fferings to the commercial banks to short-term, lowdeld issues probably with coupons not exceeding
}i percent, or perhaps even lower.
It is anticipated that the volume of the shortererm, lower-yield issues will not only continue but
vill expand further since the Secretary of the
Treasury, himself, has stated recently that he does
lot "see any need for a wholesale postwar funding
»f the public debt into long-term bonds. In the
irst place it would cost the taxpayers more in interest.
\Text, it would shift whatever risk there is inherent
ii fluctuating interest rates from the Government,
vdiich is able to bear it, to individuals, institutions
nd corporations." 1
While the bulk of the taxable issues eligible for
nirchase by the commercial banks fall within the
0-year classification, all of the restricted issues
xceed 10 years in maturity. Thus, a sharp distincion has developed between the two groups of issues
»y reason of their maturities. The recent market
ction of the unrestricted and eligible issues has
>een in contrast to that of the restricted bonds and
hows definite evidence of the development of a
iwer-yield curve for the bank-eligible issues but a
ontinuation of the pattern described above for the
estricted issues.
The premiums on the 2-percent bonds have also
ended to equalize so that most of the issues are now
•riced within a few thirty-seconds of the others
•respective of their maturities. This change from
tie previously defined "interest curve" has altered
lie former price trend so that now the 2-percent
onds differ between issues in the main because of
heir yields and maturities, while the factor of price
ppreciation which formerly could be reasonably
nticipated on the interest curve is now largely
bsent. Pricewise, the "two's" may tend to move
s a unit and, if so, there will no longer be oppori The Hon. Henry A. Morgenthau, Jr., Secretary of the Treasury, Los Angeles
ar Bond Rally, October 14, 1944.
Way 1945
tunity for an investor to dispose of a shorter issue
when it has reached its ceiling price on the yield
curve and to reinvest in a longer issue with reasonable assurance of price appreciation over a period
of time.
Desirable Portfolios
I t is impractical to attempt to outline a standard
portfolio or an ideal list of Treasury issues for savings
and loan associations because of the infinite variety
of conditions throughout the country affecting their
operations. However, some general conclusions
may be stated.
Before the most desirable issues for the portfolio
can be selected it is necessary to make a forecast of
the probable future needs of the association for the
funds to be invested, the nature of the funds and the
probable time when it will wish to convert at least
a portion of its bonds into cash. If a particular
association looks upon its Government-bond portfolio only as the temporary investment of funds
pending the resumption of a demand for home
financing, that institution should make investments
largely in securities that will enjoy the most ready
market in the immediate post-war period. If, on
the other hand, a particular institution considers its
Government-bond portfolio as a long-term investment, greater emphasis may be put on higher yields
and less on liquidity or marketability.
As to the nature of their funds, associations have
varying experience, with the average life of their
savings and investment accounts depending on location, size, tradition and management policies. An
index < f the average life of the savings accounts can
be coi puted by dividing the average amount of
share accounts of the associations into their total
annual withdrawals. Such an index reveals that in
the stable communities, well managed, established
associations typically experience withdrawals in a
year's time as low as from 8 to 10 percent of their
average total share accounts. In other words, the
average life of the share account in these stable
institutions has ranged from 10 to 12 years. A very
different experience is noticed among some associations in industrial cities, where total withdrawals
during the year frequently range from 35 to 50 percent of the association's share capital. In short,
investment accounts in these associations often
remain with the association for an average of only
three to four years.
Associations which experience a high share-capital
turnover (that is where total annual withdrawals
221
represent a high percentage of the association's share
capital) have an investment problem quite different
from that of associations whose savings and investment accounts are very stable. Consequently, one of
the first considerations in building a share portfolio
should be an examination of the association's sharecapital turnover, coupled with a forecast of the probabilities as to the association's furure needs for the
funds being invested. If the analysis reveals that
withdrawals represent a high percent of the institution's average share capital and that such withdrawals
are likely to continue to be relatively high as a percentage of share capital in the future, the association
should build a bond portfolio with emphasis on ready
marketability. Likewise, if the institution is located
in a communit}^ where a large post-war home-financing demand is likely to develop so it will wish to
convert its bond holdings into loanable cash, bonds
which are likely to enjoy high marketability in the
post-war period should be chosen.
In brief, an institution which has a highly volatile
share capital, which expects a continuation of a large
withdrawal ratio, and which is located in a community where a large peacetime increase in loan demand is
expected, will want to build a diversified portfolio
with major emphasis on short- and medium-term
maturities that enjoy high marketability.
On the other hand, the institution whose experience
shows that its share capital is very stable, whose
present savers and investors are not likely to withdraw large amounts of funds and which is located
in a community where a large peacetime loan demand
is not likely to arise, may consider it desirable to
put greater emphasis on bonds with medium- and
longer-term maturities because of the higher yields.
Permanent Investments
In general, associations now own more Government securities than they will wish to carry as a
permanent investment. That being true, the comparative marketability of the several types of
securities is important. For the most part, those
issues having maturities within 10 years will meet
the requirement of liquidity or ready marketability.
They include one year, % percent certificates, notes
which mature within four years, and intermediate
bonds. All of these are quoted in the open market
at premiums to yield from a fraction of 1 percent to
a little over 11/2 percent on the longest of the 2-percent
issues. The intermediate and long 2-percent bonds,
as noted above, have appreciated in price materially.
I t would seem desirable for the average association
222
to retain its holdings in these issues, thus keepinj
a portion of its assets in highly liquid form for us
when needed. Since, in the absence of a change ii
the level of interest rates which seems improbable fo
some time to come, they may be expected to hol<
around these price levels; there need be no immediat
liquidation in order to take profits which migh
otherwise soon vanish. If a substantial portion
of the portfolio consists of the eligible issues du
within 10 years, the association will be in a stron
liquid position, well able to meet demands.
The restricted issues might provide an outlet fo
that part of the investible fund which analysis, a
already outlined, discloses may reasonably b
classified as suitable for longer-term investment
Among such issues, the 2}{ percent bonds of 1959/5
are most attractive for the immediate investmen
of funds. This issue will become eligible for purchas
by commercial banks in September 1946 at whic
time it may be expected to reach a yield basi
comparable with other eligible issues of abou
equal maturity. In addition to this potential pric
appreciation, it should then acquire about the sam
high degree of marketability which now attaches t
the 2-percent issues. For the most part the long
term bonds possess a lesser degree of liquidity tha
the intermediate- and short-term issues and are no
suitable for the investment of short-term funds.
When all the factors determining the natui
of the funds to be invested and the condition
previously outlined which now and in the futur
will affect an association's position have bee
examined and analyzed, and a judicious selectio
made of short, intermediate and long-term issues
the result will be a well balanced, liquid portfoli
tailored to individual association requirements.
Migration and Post-War Employmen
•
I N a recent study of industrial concentration
conducted by the Department of Commerce
it was concluded that in general the problems of post
war reemployment could not be solved by movin
people to other parts of the country where job op
portunities would await them, for the wartime es
pansion of industry has occurred in almost all areas
Until the peacetime national output of goods an
services substantially exceeds the pre-war level, n
area will act as a vacuum to attract excess workei
from war-production centers.
1
"Wartime Changes in Regional Concentration," Survey of Current Busineh
March 1945.
Federal Home Loan Bank Review
THE LIQUIDITY PATTERN LAST YEAR
Liquid assets of all insured savings and loan associations reached a
new peak last year, although the rate of increase was considerably
diminished.
The fact that the entire gain was concentrated in Government-bond
holdings indicates the measure of support given by
these institutions to the war-financing
program.
•
AN analysis of the liquid assets of all insured
savings and loan associations in 1944 emphasizes
the fact that the previous strong position of these
institutions was further improved last year. It also
reveals some interesting changes which occurred in
the liquidity pattern that has been established
during the war years.
The aggregate cash and Government-bond holdings of these associations stood at the all-time high
of $1,497,000,000 at the close of 1944, compared with
$884,000,000 the preceding year. This represented
the largest dollar increase on record—$613,000,000.
The year's gain was larger than total liquid assets
held in 1941 or 1942. However, percentagewise, the
69-percent advance in 1944 was the smallest shown
in the last three years.
The slackening in the rate of growth is not surprising at this stage and does not indicate any
weakening of the strong liquidity position of insured
associations. Once funds have reached the high
volume recorded in 1943, something considerably
less than the 97-percent gain shown during that year
may reasonably be expected. As a result of the
large dollar increase in 1944, the proportion of liquid
resources to total assets rose from 21.1 percent to
29.9 percent and the liquidity-to-share capital ratio
advanced from 24.7 to 34.5 percent.
It is signficant that the record increase in liquid
assets occurred simultaneously with the post-depression high in mortgage lending when excess funds
were finding an outlet in the mortgage market. At
the same time, financing operations of these insured
associations resulted in a $23,000,000 increase in their
Federal Home Loan Bank advances outstanding.
Repurchases of Government investments in these
institutions totaled $32,000,000, making an over-all
retirement of $9,000,000. This is in direct contrast
to 1943 when outstanding advances declined approximately $14,000,000 and nearly $100,000,000 was
used to repurchase Government-share investments.
As shown in the accompanying chart, the percentage increase in liquid assets of all insured associations
far outstripped that of any other balance-sheet item.
May 1945
In spite of the fact that this rate of gain had dropped
from 97 to 69 percent last year, it was still over three
times as great as that shown by private share capital
or total assets, four and one-half times more than
the gain in reserves and undivided profits, and more
than eight times the advance in net first mortgages
held. These trends should not be interpreted as
evidence of the setting of permanent patterns.
They are based on the abnormalities of wartime
operation and will undoubtedly tend to disappear as
ordinary business conditions return.
Increase Entirely in "Governments"
The interesting thing about the 1944 gain in
liquid assets was that, in contrast to 1943, the entire
advance was in the Government-bond account
which more than doubled, rising $646,000,000 to a
total of $1,227,000,000. These Government obligations represented a sum equal to 28 percent of the
private share-capital account and 24 percent of total
assets. In 1943, corresponding ratios were 16 percent and 14 percent, respectively. This large increase is substantial testimony of the part being
played by insured associations in the Government's
war-financing program. Thus, a patriotic duty pro-
PERCENTAGE INCREASE IN SELECTED
BALANCE SHEET ITEMS
ALL INSURED SAVINGS AND LOAN ASSOCIATIONS
1944
O
10
OVER
20
1943
PERCENT
30
40
50
60
CASH AND GOVT.
OBLIGATIONS
PRIVATE SHARE
CAPITAL
RESERVES AND
UNDIVIDED PROFIT
TOTAL ASSETS
NET FIRST
MORTGAGES
223
during the previous year—66 percent compared with
58 percent. The greatest slackening of increase
occurred in the Boston District where liquid assets,
which had risen 145 percent in 1943, advanced b u t
62 percent last year. Only 10 scattered states reported greater 1944 increases in liquid assets than
had been registered during the preceding year.
Federal associations showed an increase of 76 percent in liquid assets while those of state-chartered
associations rose 59 percent.
Liquidity-Capital Ratio Up
vides a sound way of realizing some return on funds
for which, during the war, there has been a restricted
mortgage market.
Cash on hand in all insured associations declined
$32,856,000, or 11 percent, during 1944. I t stood
at $269,701,000 at the year-end when it represented
6 percent of private capital and 5 percent of total
assets. The year before these ratios had been 8 percent and 7 percent, respectively.
A geographical breakdown of the components of
liquidity shows a universal increase in Governmentbond holdings but a spottier picture in the cash
accounts. Only Boston and Pittsburgh (the latter
with 12 new associations) had more cash on hand
at the end of 1944 than in December 1943. In the
former region, all states but Connecticut and Vermont showed gains, while all three states in the
latter District reported increases. Five other scattered states—Florida, Colorado, Idaho, Wyoming
and Arizona—registered slight increases.
On a combined basis of cash and Government
bonds, all Districts reported increases, although the
rates of advance were not generally on a par with
the previous year's gains. Increases ranged from 54
percent in Cincinnati to 101 percent in Los Angeles.
The latter District was the only one to duplicate the
record, achieved by six regions in 1943, of at least
doubling liquid assets during the year. Only
Topeka reported a greater increase in 1944 than
224
The real measures of liquidity lie in the relationship of liquid assets to private repurchasable capital
and to total assets. Both of these tests revealed a
considerable strengthening of the liquidity position
of insured associations during 1944. The chart in
this column shows that last year these ratios w^ere
approximately four times as great as those of 1941,
chiefly because of the enormous expansion in Government-bond holdings.
The ratio of cash and Government obligations last
year was 34.5 percent of private repurchasable capital
compared with 24.7 percent in 1943 and only 9.6 percent in 1941. Thus, the average insured savings
and loan association was maintaining a liquiditycapital ratio of about $1 out of every $3.
Every Federal Home Loan Bank District showed
an increasing accumulation of liquid assets in proportion to share capital last year. The highest ratio,
for the fourth successive year, was in Portland which
reported a ratio of 50.0 percent compared with 35.4
percent in 1943. Pittsburgh, with a ratio of 24.8
percent was the lowest, while nine Bank Districts
showed 30 percent or better.
Federal Home Loan Bank Review
Ratio to Assets A l s o Gains
The rising trend of liquidity was also reflected in
the increased ratio of cash and Government obligations to total assets. In 1944, this figure was 29.9
percent compared with 21.1 in 1943 and 7.4 in 1941.
In other words, the average insured association had
a liquidity-asset ratio of almost $1 out of every $3
last year. In 1943, this relationship was $1 to $5,
and in 1941 it was $1 to $13.
Again, all Bank Districts and all 'states, except
Rhode Island, shared in this increase. Liquidityasset ratios ranged from 43.5 percent in Portland to
21.2 percent in Little Rock. These two regions
occupied the same relative positions in 1943 but at
that time represented a range between 30.5 and 15.6
percent, respectively. In 1943, nine Bank Districts
reported ratios which were lower than the smallest
one shown in 1944.
Cash a n d Government obligations of insured
savings a n d loan associations, 1 9 4 4 - 1 9 4 3
[Dollar amounts are shown in thousands]
District a n d S t a t e
I t is difficult to forecast the future course of liquidity trends. Some of the same conditions which
have been instrumental in the establishment of the
present liquid position of these associations may
remain operative.
Preliminary data indicate that mortgage-loan repayments and prepayments are being maintained far
ahead of schedule. While it is hoped that construction lending will show increasing expansion, there
is no assurance that this will very soon have a
drastic effect on funds which have been accumulating
in cash and Government bonds. Also, since the war
is far from won or paid for, continued participation
in the Government's financing operations will, for
an undetermined length of time, be a major concern.
However, since the War Production Board's "Period
One" (reconversion between the defeat of Germany
and Japan's capitulation) materialized this year,
heavier withdrawals may absorb some of the money
now represented by liquid assets. The crucial role
of these funds in the post-war years was pointed out
in the March R E V I E W ("The Dual Functions of
Liquidity"). I t seems evident that the present
position of insured associations augurs well for them
in the future since a substantial shock absorber is
present to meet contingencies. These liquid funds,
if carefully managed, may be a safeguard against
deflation in the post-war period. On the other hand,
however, unless lending institutions proceed with
caution in making loans, there may be a serious
danger of post-war inflation.
May 194S
T o t a l cash a n d Gove r n m e n t obligations
1944
1943
As a percent
of 1944
Percent
increase Share
capital Assets
+ 19
$1, 497, 152
$884, 207
69.3
34.5
29.9
.
0
71, 023
43,809
62.1
30.7
26. 7
C onnecticut
Maine
Massachusetts
New Hampshire
R h o d e Island
Vermont
0
0
0
0
0
0
20, 434
676
42, 292
5,899
229
1,493
12,181
194
25, 779
4,364
177
_,114
67.8
248.5
64.1
35.2
29.4
34.0
30.7
30.9
29.8
48.3
7.3
28.4
27.2
26.8
25.9
39.2
6.0
25.2
U N I T E D STATES
Boston
-
+3
162, 948
94, 350
72.7
31.4
27.2
+ 1
+2
48, 643
114, 305
29, 568
64, 782
64.5
76.4
32.0
31.2
27.2
27.2
+ 12
67,155
40, 326
66.5
24.8
21.4
0
+ 12
0
49
60, 395
6,711
26
35, 758
4,542
88.5
68.9
47.8
10.4
24.4
29.6
9.9
21. 0
25.4
_ ..
+ 1
160, 643
83, 398
92.6
34.8
30.4
Alabama
. _
D i s t . of C o l u m b i a . _
Florida. _ _
Georgia
_____
M a r l y a n d __
N o r t h C a r o l i n a . _ ._
S o u t h Carolina
Virginia. _ _
0
0
0
0
+1
0
0
0
5,771
13,194
49,812
18, 323
24, 543
23, 336
11,818
13,846
4,348
8,252
23, 268
9,319
10, 612
13,029
6,895
7,675
32.7
59.9
114.1
96.6
131.3
79.1
71.4
80.4
27.7
24.3
47.5
31.0
32.1
38.5
34.4
27.0
25.4
21.9
40.9
27.2
26.8
34.4
31.5
23.6
-1
333,131
216, 327
54.0
40.9
36. 0
17, 626
189, 592
9,109
59.3
53.2
60.9
35.2
42.0
33.7
31.8
36.9
29.7
New York
__
N e w Jersey
N e w York
Pittsburgh _
Delaware
P e n n s y l v a n i a . . . __
West Virginia _ _ _
Winston-Salem
Future Possibilities
Change
in n u m ber of
associations
C i n c i n n a t i . __
Kentucky,
Ohio
Tennessee
_____
Indianapolis
Indiana
Michigan
__
__
_ __
Chicago.
Illinois
Wisconsin
Des Moines
__
__ .
Iowa
__
Minnesota
Missouri
__
North Dakota
South Dakota
Little Rock .
Arkansas
Louisiana
Mississippi._ ___ _
N e w Mexico.
Texas
Topeka
__ ___ ___
Colorado.
Kansas
__
Nebraska _ _
O k l a h o m a . _ __
Portland _
I d a h o __ _ __
Montana
Oregon
Utah
Washington
Wyoming
Los Angeles
Arizona
California
Nevada..
__ ___ _
_ __
-1
+1
-1
28, 086
290, 388
14, 657
0
120,151
76, 050
58.0
39.4
34.8
0
0
73, 270
46,881
48, 587
27, 463
50.8
70.7
38.7
40.7
34.2
35.8
+8
142,311
82, 326
72.9
31.4
26.6
+5
+3
115,810
26, 501
66, 833
15, 493
73.3
71.1
32.8
26.3
27.9
22.2
-2
86, 626
48,817
77.5
33.9
30.0
-1
-1
0
0
0
12.204
44, 712
23, 407
5,251
1,052
6,312
23, 590
15, 076
3,026
813
93.3
89.5
55.3
73.5
29.4
30.0
45.2
22.8
53.5
33.1
27.2
39.5
20. 1
48.6
30. 3
-1
60, 727
41, 042
48.0
25.1
21.2
0
0
0
0
-1
4,098
20, 728
2,514
2,332
31, 055
2,974
14,114
1,752
1,584
20, 618
37.8
46.9
43.5
47.2
50.6
23.8
23.1
24.3
31.7
26.4
20.4
18.7
21.8
28.3
22.8
+1
48, 079
29, 041
65.6
28.2
24.6
+1
0
0
0
12, 755
13, 819
4,127
17, 378
7,771
7,973
2,216
11,081
64.1
73.3
86.2
56.8
35.1
26.9
33.4
24.7
30. 1
23.5
28.6
21.7
-1
106, 247
59,860
77.5
50.0
43.5
0
0
0
0
-1
0
7,144
5,689
12, 286
12, 346
65,877
2,514
3,326
3,633
6,387
7,505
37, 475
1,276
114.8
56.6
92.3
64.5
75.8
97.0
55.9
44.3
46.4
47.1
51.6
42.2
48.7
39. 1
39.2
37.9
45.9
37.3
-1
138, 111
68, 861
100.6
34.7
28.4
0
-1
0
6, 315
129, 322
469
1,648
65, 603
373
283.2
97.1
25.7
60.5
33.9
42.4
49.5
27.7
39.4
225
WHAT'S NEW IN HOUSING RESEARCH?
Since institutional
lenders cannot ethically
experiment
with trust
money, their full participation
in post-war financing of
new-type
structures depends on the knowledge of their soundness. This article,
designed to give some highlights of recent research, has been prepared
with the assistance of the Technical Division, National Housing Agency.
H
NOT only is the wartime volume of home building much less than normal but the design and quality of houses now going up are considerably different
from pre-war years. However, in these very differences lies much that will eventually speed the
evolution of the house of tomorrow. This period
of enforced improvising to conserve what we have
and to find something else that will do gives promise
that the housing industry and the home owner will
be the long-term beneficiaries of the manifestation
of "Yankee ingenuity" which is being demonstrated
now in technical research.
Of course, housing research is by no means entirely
a product of wartime necessity. However, the very
fact that we have had to learn a lot, and in a hurry,
means that the housing industry is much farther
ahead than it would have been in an ordinary period
of like duration. The big problem of the future
will be not just to provide houses, but to be able to
gear production to all income groups of the potential
market that is waiting. This means, first, low-cost
houses of substantial quality, and second, homes
of increased comfort and convenience. The results
of recent research, while they do not provide the
final answers, point the way toward both these
accomplishments.
Broad Implications
The implications of these developing innovations
are as broad as the interests of the entire national
economy and as specific as "next year's" loan portfolio. Reams have been written about the role of
the construction industry as one of the bulwarks of
our post-war economy. There seems little doubt that
a tremendous potential market awaits the green light
for the resumption of building activity, providing
housing costs can be brought into line with average
incomes. Research projects which uncover new
possibilities and demonstrate their practicability
play a definite part in bridging this gap.
Mortgage lenders who know what is going on in
new housing techniques will be in a position to make
their institutions double beneficiaries of this recent
226
scientific investigation. Knowledge of the performance of new materials and methods can enable them
to properly evaluate the loan-capital values of new
type structures. Thus, as they are in a position to
know what they are getting as security for their loans,
they can safely broaden the scope of their operations.
Futbermore, a well informed mortgage-lending industry can help in the general acceptance of sound
construction standards and in accomplishing needed
reforms in building codes, which in turn will add to
the volume of low-cost residential construction.
Housing research during the war has been conducted by many industrial concerns, trade associations, foundations and universities. Since 1943
some of these projects have been instituted and
financed by Government funds advanced through
the War Production Board's Office of Production
Research and Development. The National Bureau
of Standards has also played an important part in the
testing of new and improved materials and techniques.
Standardization
One of the chief reasons for high costs in construction has been the "hand tailoring" of parts for site
assembly into completed houses. The economic
value of standardization of many components has
long been discussed. Recently the American Standards Association issued a pamphlet, "Modular Planning as Related to Building Design," based on research sponsored by the American Institute of
Architects and the Producers' Council. I t recommends the adoption of a 4-inch module for building
construction. The adoption of this standard would
mean that, instead of the miscellaneous and unrelated sizes now used, dimensions would be in multiples of four wherever practicable. Thus, manufacturers would be able to concentrate chiefly on
standard-sized items and builders would be assured
that these parts would fit without filling or cutting.
To obtain the advantages of modular planning and
dimensional coordination, building plans and specifications would have to be correlated with the dimensions of materials.
Federal Home Loan Bank Review
It is not contemplated that these "standard"
parts would entirely eliminate the production or use
of all other dimensions established by architects or
engineers. They would, however, permit a tremendous reduction in the number of types of models
manufactured, and still properly serve the building
industry.
as plywoods, with a thermo-plastic coating to produce a finished surface of far greater wearing quality
than any previously known protection. One product
of this type used on floors provides a nonslip surface of more durability than wood itself. Waxing does not destroy the nonslip characteristics
produced by the original treatment.
New Kinds and Uses of Materials
Interior Improvements
New materials, and new combinations and different uses for products already on the market are common results of various investigations. The fact that
these improved techniques often not only represent
savings in themselves but permit more economical construction methods is illustrated by the example of a project carried out at Purdue University
under O P R D auspices. Experiments in constructing temporary low-cost housing brought to light a
type of single-wall construction which has interesting
possibilities. This "sandwich" type of construction
consists of producing in a factory, a wall panel which
fits into the skeleton framing of a house. An inside
and outside wearing surface are placed so as to leave
space for prefabricated insulation to be inserted into
the "sandwich" wall. Like many other of these
research products, it has not been completely perfected as yet. However, current research has gone
far enough to indicate that this type of wall, where
composed of sufficiently lightweight materials,
produces a quick and relatively inexpensive method
for shop or field construction of a complete wall unit.
Other types of wall materials which have been
developed and tested make use of qualities of wood
previously considered as unusable lumber, but which
can be reinforced by combination with shredded or
recombed fibers. I t has been found that, by compressing wood in heated presses, the density and
wearing qualities can be greatly increased and the
natural beauty of the wood enhanced. Thus
treated, the product gives promise of being more
satisfactory for flooring than natural wood.
A great deal of progress has been made toward
increasing knowledge about various kinds and uses
of glues in wood construction. A plastic adhesive
has been developed for use with light wall-board
preparations. This and other experiments have
developed a wide variety of glues to meet different
conditions of manufacture and service and have
greatly increased the serviceability of plywood in
home construction.
A lumber-plastic combination that has been found
successful consists of treating lumber products, such
Although the outer shell of the house has been
found to absorb the greatest comparative cost of
home construction, 1 it is not the only place where
improvements can be made. Much of the research
has been directed toward internal housing improvements, such as heating and sound-proofing.
The possibilities of radiant heating are being
explored from several angles. Already tests have
shown that radiant heating panels in walls, floors
and ceilings can frequently provide better heating
than conventional methods. I t has been found that
people can be comfortable with radiant heating at
somewhat lower temperatures than otherwise. Thus,
the lower the temperature, the less the heat loss
through walls. This, of course, means a saving in
fuel. A scientifically controlled study- of temperature, comfort and costs is one of the current projects
of the National Bureau of Standards. 2
A related stud}* is being conducted to discover
more about reflection and absorption of infra-red
rays by various materials and substances. From
the results of these tests it will be possible to select
and develop structural surfaces and protective or
decorative sheets or coatings which will be nonresistant to the flow of heat.
May 194S
Heating and Insulation
Another interesting experiment has just been
announced by an industrial firm, Green's ReadyBuilt Homes. In their plant at Rockford, Illinois,
they have built—complete to the key in the door—
what is said to be the first prefabricated solar house.
This structure is a rectangle 58 feet across the
front; it faces south to take full advantage of the
winter sun and carries an inch of water on the roof
in summer to produce coolness by evaporation. A
three-foot roof overhang allows a maximum of sunlight in the front glass panels in the winter and no
direct sunlight in the rooms in summer. The auxiliary heat from the sun's rays saves an estimated 30
1
See National Housing Bulletin 2 and "Lets Get More For Our Housing Dollar," FHLB REVIEW, December 1944, p. 70.
2 See Home Front, FHLB REVIEW, April 1945, p. 215.
227
percent in fuel costs while the principal heat unit is
an innovation in itself. I t consists of a gas-fired
furnace in the ground utility room (there is no basement) which forces hot air through tile ducts built
into the floor (a principal in some respects similar
to radiant heating). There are no visible beat
outlets.
The w^alls are made of separate plywood panels
between which is sealed three inches of blanket
insulation. The heavy glass panels which form the
entire front section are also double with a three-inch
dead air space between to prevent heat loss and the
formation of moisture.
The house is completely equipped but only an
approximation of the cost is now possible. It is
estimated, however, that similar structures will sell
for between $6,000 and $8,500.
The paper house, developed by the Institute of
Paper Chemistry in Appleton, Wisconsin, is an
interesting example of what has been done in the
field of extremely low-cost, emergency housing.
An account of the details of this experiment was given
in the Home Front, F H L B R E V I E W , February 1945,
page 163.
Prefabrication has been receiving a great deal of
attention, both in research laboratories and in public
interest. The R E V I E W has previously touched on
this subject. An indication of the extent to which
plans and facilities for this type of housing now
exist is contained in a recently revised list of 70
active prefab concerns, published by the NHA
Technical Division. This is designed to be only a
comprehensive representation of the industry. A
limited number of copies of this listing and of the
two Technical Bulletins (October 1944 and April
1945) which carry more detailed reports on Government projects are available from the Technical Division, National Housing Agency, Washington 25, D. C.
A Good Start
These few examples barely scratch the surface of
what has been and is going on in the field of housing
research. More will be reported from time to time.
Not all tbe results so far are complete or perfect;
much work remains. However, it is plain to be seen
that our industrial "know how" has been developing
rapidly and practically. I t is quite true that the
post-war dream house—a paradise of gadgets—is
only the product of over-enthusiastic iniaginations.
Still, tomorrow's new houses will be cheaper, better
and more plentiful because of the results of wartime
research.
228
The W a r : Phase Two
•
ON the tenth of this month, Fred M. Vinson
Director of War Mobilization and Reconversion
transmitted to the President his report, The War
Phase Two, in which he gave a summary of the effec'
of VE-Day on the national economy and future
planning for the war. The 10 basic assumptions
upon which this report is predicated make it clear thai
the severity of the war in the Pacific will grow as
time passes and that the effects of cutbacks wil
produce an uneven pattern in production, both fron
industry to industry and from area to area. During
the next six months, cuts in war production will n n
from 10 to 15 percent of the current rate of output
The high production needed for the Japanese war wil
require that a great part of those now working ii
war production stay on the job. Unemployment at
the end of the next 12 months should not exceec
from 2,000,000 to 2,500,000 persons and many o\
these will be only temporarily out of work. Fooc
requirements will not decrease, and many Government controls over industry must be maintained tc
assure war and essential civilian production.
I t was emphasized that inflationary forces art
expected to be a continuing menace, despite the enc
of war in Europe. "Price and rationing controls
wage controls, high taxes, and continued War Bone
sales will be essential in keeping consumer buying
within bounds."
Housing
Restrictions on home building will not end unti:
manpower and materials are generally available
However, it is anticipated that construction wil
begin on at least 250,000 homes within the next 12
months, and it is quite possible that starts may gc
as high as 400,000. In other words, residential construction started in this coming period may be
expected to be equal to the 1935-1936 annual average
H - 2 programs, approved by the National Housing
Agency to provide newly constructed dwellings foi
persons other than war workers in areas of acute
housing shortage, authorized priority assistance foi
the construction of 18,635 units as of April 30. All
of these were for privately financed dwelling units.
In addition, H - 3 applications, approved in cases ol
individual hardship, authorized the construction oi
17,896 privately financed new homes and the provision of another 16,174 family units through
conversion of existing structures.
Federal Home Loan Bank Review
THE PATH WE HAVE TRAVELED
What has been the course of the savings and loan industry over the
past 22 years—a period covering somewhat more than one complete
lending cycle? From experiences
gained during this time, what
conclusions may be drawn for the present as to signs of trends ahead?
•
OCCASIONALLY, an excursion into the past
can be one of the most profitable trips a business
man can make—not merely reviewing the "good old
days" but looking with a penetrating vision at the
more trying times which can now be seen in clearer
perspective than when they were upon us.
In the field of home finance such examinations of
the record under present circumstances have more
than ordinary value. To the long-term lender, the
success of whose business today rests so heavily upon
developments of the future, these backward glances
provide not only an indication of present direction,
but also a crude yardstick by which one may measure
the accuracy of earlier judgments.
The record of the individual institution, is comparatively easy for management to study as a
continuing guide to operations. This, together with
the records of similar institutions in the general business area, provides a key to relative efficiency of
operations under similar circumstances. The national record, though, represents the path the industry has followed as a whole. This article is
intended to provide a brief analytic outline of the
latter, the course the industry has taken over the
past 22 years.
upon their business. The dominant features in the
chain of causality are fresh in everyone's memory,
but it takes more than vague recollection to bring
into clear focus the distinct features of the various
trends. What were some of these features, the sum
of which constitutes the total picture?
Lending
Our scene opens in 1922, on a rising market, not
only in real estate but in other fields as well. The
conflict of 1917-1918, like all major wars, left in its
backwash economic dislocations and a swollen demand for virtually all lines of commodities, old as
well as new. Amidst the boom psychology of the
times the building industry was hurriedly moving in
response to the rising demand for new homes—a demand voiced largely because of the greater diffusion
of purchasing power among all strata of our population during and following the war.
Riding the crest of the construction wave, lending
by all operating savings and loan associations
mounted rapidly. By 1925, the rental index and the
annual volume of new home construction reached
their peaks. However, lending by savings and loan
associations continued to gain each year through
Home-Financing Trends
While trends within the home-financing business
changed violently over the period, perhaps their
products are more important than the trends themselves in that these results of cyclical fluctuations
are milestones in the evolution of the industry.
Not only do they mark the point from which postwar development will progress, but they also act as
strong determinants of our future course.
Several significant developments, some institutional in character, now dominate the scene as direct
results of industry trends during the period 19221944: the creation of the Federal Home Loan
Bank System and the Federal Savings and Loan Insurance Corporation; a marked trend toward fewer,
but larger associations; a strengthened reserve position; and a far deeper appreciation on the part of
management of the influence of the economic cycle
May 1945
MORTGAGE LOANS MADE
ALL
BILLIONS
OPERATING
SAVINGS
AND
LOAN
ASSOCIATIONS
DECEMBER 31, 1 9 2 2 - 1 9 4 3
$2.0 |
229
1928, apparently due to a shift in emphasis to other
than construction loans. Despite the earlier collapse
of local booms such as in Florida, the real-estate
market as a whole remained quite active. While
other circumstances vary infinitely, it is a similar
activity in the market for existing homes today that
is supporting the growing volume of home-mortgage
lending.
From the peak of more than $1,900,000,000 in
1928, lending by savings and loan associations fell off
during each succeeding year until it reached the
depression low of slightly over $400,000,000 in 1933,
a drop of almost 80 percent from the peak. Broken
only by declines in 1938 and 1942, the annual volume
of lending has mounted since then to reach a postdepression high—$1,454,000,000—last year. This is
approximately three-fourths the size of the 1928
figure, or the equivalent of the annual rate of lending
during 1923 and 1924.
The recovery of lending during the thirties and
down through 1941, like the gain during the early
twenties, was based largely upon new construction
which increased in a similar pattern. Also, as in the
years 1926 through 1928, the rising volume of lending
carried over into 1943 and 1944 on the basis of a
generally brisk market after new construction
activity had fallen off. Beyond this, comparisons are
questionable, for the cause of the decline in building
after 1925 was an approaching saturation of the
market for which the construction of family-dwelling
units was being undertaken. Today, on the other
hand, wartime shortages of materials and of manpower, not the absence of need nor the lack of loan-
able funds, are primarily responsible for the dearth
of new home building.
Mortgage Portfolio
The total of mortgages held by operating associations reached its peak ($6,507,000,000) in 1929;
shelving off rapidly in subsequent years to about hali
that size ($3,237,000,000) by 1936. To a considerable extent this was caused by the rapid contraction
of new lending and the normal process of debt liquidation by borrowers. As the general economic picture
deteriorated, the transfer of outstanding debts tc
property accounts became an important factor in the
reduction of the portfolio. Prior to the establishment
of the Home Owners' Loan Corporation in 1933, the
national rate of foreclosures by all types of lenders on
home properties was reaching almost 1,000 a day.
The transfer of almost $800,000,000 in mortgages to
HOLC was another significant factor affecting the
decline in portfolio size.
Foreclosures and the transfer of loans to HOLC
explain the retarded response of the mortgage portfolio to the rise in lending activity. It will be noted
from the accompanying charts that although lenelin^
showed moderate gains in all except two years since
1933, it w^as not until 1937 that the balance oi
mortgage loans on the books of savings anel loan
associations showed any signs of recovery. Since
then they have increased each year. As yet, yearend figures are not available for 1944, but it seems
safe to assume that 'by that time mortgages held
amounted to somewhat more than $4,700,000,000.
If this is accurate, the total portfolio is but slightly
smaller than it was at the end of 1926, three years
before it reached the peak.
The effect of the recent gain in lending is plainly
discernible, for accelerated retirement of mortgage
loans resulting from increased wartime incomes, and
also the resale of homes, has not checked the expansion. However, there still remain to be assesseel the
effects, if any, of the absence of construction lending
in current loans being placed on the books of all
operating associations.
Acquired Real Estate
During the twenties, acquired real estate in the
hands of savings and loan associations representee]
but a small proportion of industry assets. However, with the financial collapse of 1929, real estate
obtained through forclosure ballooned and by 193£
constituted 22.3 percent of adjusted resources as
230
Federal Home Loan Bank Review
compared with 3.2 percent in 1930, the earliest date
for which accurate information is available. By
1936 the industry was able to check this and for the
first time in at least five years it could show a slight
reduction in the book value of properties owned.
However, not until the following year did the disposition of these slow assets reach a volume sufficient to effect a reduction in their ratio to adjusted
resources. Since then the property account has
diminished steadily. As a result of the particularly
brisk market for existing homes, this item has now
been whittled down until it constitutes barely 1
percent of assets.
All told, this bulge in acquired real estate was about
five years in accumulation and seven years in disposition. This in itself attests the severity of the depression of the thirties, but even these data do not tell
the entire story. It cannot be overlooked that
extensive property holdings were transferred from
operating savings and loan associations to liquidating
organizations. Figures cited above exclude these
transferred property holdings.
Savings
On the other side of the balance sheet, trends in
private savings showed less violent fluctuations than
were observed in the loan portfolio. Although the
high rate of increase started to slacken after 1928,
the year the loan portfolio reached its peak, significant gains were made in the two succeeding years.
Private investments in these institutions did not
reach their peak until 1930 when they amounted to
about $6,200,000,000.
One feature of interest in the decline in invested
savings during the first part of the thirties is that the
depression low of approximately $4,000,000,000 was
not reached until 1936, several years after other types
of savings institutions had begun to show signs of
recovery. To a large extent this merely reflects the
time lag in meeting repurchase demands accumulated
in the earlier years which were satisfied as cash
was obtained through the normal as well as emergency
liquidation of assets. Also, the transfer of associations from active to inactive status entailed, statistically, a reduction of funds invested in operating
savings and loan associations.
Beginning in 1937, the downward movement in
private savings was reversed and the first small net
increase was noted. The up-hill pull was slow and
it was not until the beginning of the National
Defense Program in 1940 that the rate of gain in
savings invested in these institutions showed material
May 1945
MORTGAGE LOANS HELD AND SAVINGS
INVESTED
ALL OPERATING SAVINGS AND LOAN ASSOCIATIONS
B.LUONS
192*
// z
/
5
V
t
/
//
A/
!
1
1924
-
'AVINGS
INVES TED
ESS PLEDGED SHA RES)
1
--/
^
OUTSTA NDINGJl\_
MORI GAGES
|
(LE SS PLEDGED SHA RES)
t'
O
19 2 2
•
\
//
4
2
BY YEARS
/y~'K
6
3
- 1943,
1
1
1926
1928
1
1930
1
1
1932
1934
1
1936
_
1938
1 _ . . .1. . .
L_.
1940
1942
1944
DIVISION OF OPERATING STATISTICS
FEDERAL HOME LOAN BANK ADMINISTRATION
improvement. Year-end data for 1944 are not
available at this time, but preliminary estimates
indicate that savings then amounted to approximately $6,000,000,000—possibly equaling the peak
attained in 1930.
Thus far, trends in savings and the mortgage portfolio have been reviewed independently. Since the
latter represents the principal employment of the
former, what was the comparative movement of these
two factors?
From 1925 through 1930 the balance of mortgages
outstanding, as shown in the accompanying chart,
was in excess of private savings, indicating a substantial investment of reserve funds in home loans
during this period. However, the entire spread
between these lines cannot be construed to represent
reserves, inasmuch as an unknown portion undoubtedly stood for short-to-medium-term borrowing from
commercial banks for home-mortgage lending purposes.
From 1931, though, the balance of mortgages outstanding has been less than the private savings
figure. The sharp contraction in the loan portfolio
during the five years ending in 1936 was far greater
than the shrinkage in savings. By the end of that
time, when these two series bad reached their low
points, private capital was 20 percent greater than
the outstanding balance of mortgage loans held.
The subsequent recovery in mortgage holdings, however, was more pronounced and by the beginning of
the war these two elements were approaching parity.
The large shift of resources to Government securities in recent years has reopened the gap so that the
portfolio is once more considerably less than private
savings.
231
Liquidity, Asset Trends
While experience gained over the last 15 years
has demonstrated the importance of maintaining
sufficient liquidity, the wartime growth in association
holdings of Government securities cannot be accepted as the product of normal operations. I t is apparent, however, that a growing number of institutions are seriously considering the provision of a
greater measure of liquidity as an operating policy in
the post-war period. Should this practice prevail,
as it may in the light of heavy Government demands for borrowing after the war, expanded holdings of Federal securities may mark a new and lasting trend in industry operations rather than a move
born of wartime expediency and patriotic motives.
Trends in aggregate assets are of limited value as a
guide to operations since changes of importance show
up first in the composition of that figure rather than
in the total itself. Over the long term, however, they
do serve to reflect net changes in size resulting from
operations, although there is frequently a considerable lag between a write-off and its primary cause.
The term assets as used in this text has reference to
adjusted resources since it is necessary to correct the
gross figure to eliminate pledged shares resulting
from the use of the old-type sinking-fund loan.
As might be expected, the timing and direction of
asset trends followed closely the movement in the
volume of private savings invested in savings and
loan associations. Reaching a peak of $7,471,000,000
in 1930 they declined to a low of $5,165,000,000 in
1936. Throughout the next three years a gradual
recovery was noticed. With the beginning of the
National Defense Program in 1940 through the subsequent war years impressive gains were recorded.
By the end of 1944, adjusted assets were again
approximating their record level of 1930.
The most significant feature of asset trends over
the past lending cycle is to be found in their relation
to the number of operating associations. From
this relationship it can be seen that a substantial
strengthening has taken place within the industry.
The peak in the number of operating institutions
was reached in 1927 when they totaled 12,804 and
average assets amounted to $475,000. Since then,
with the exception of 1934, the number of operating
associations has diminished yearly, the result, in
part, of mergers and consolidations sponsored by
the Federal Home Loan Bank System and the Federal Savings and Loan Insurance Corporation. The
result is to be seen in the steady trend toward fewer
but larger institutions. At the end of 1943, the
latest year for which firm estimates are available for
the entire iudustry, 6,232 operating institutions
had average assets of almost $1,020,000.
In Conclusion
In surveyingfsavings and loan trends during an
era overshadowed by a severe economic collapse, the
salient elements of operations have been examined
in the order of their sensitivity to deflationary forces.
From the booming peaks of the twenties the sag
and collapse of, first, lending, then loan portfolios
TRENDS IN NUMBER AND ASSETS
ALL OPERATING SAVINGS AND LOAN ASSOCIATIONS
1922 TO 1943-AS OF DECEMBER 31, EACH YEAR
THOUSANDS
NUMBER OF ASSOCIATIONS
BILLIONS
$8,
$ 14
TOTAL ASSETS
(LE SS PLE DGE D SHARES)
THOUSANDS
$1,200
AVERAGE ASSETS
(LE:ss PLE DGE D S»HAF ES)
1,000
800
600
400
200
_.!
1922 '24 '26 '28 '30
232
'32 '34 '36
'38 40
'42
'44
i
i
1
1
1
1 . ,.l.
1922 '24 '26 '28 '30 '32 '34 '36 '38 '40 '42 '44
1 1
_L_ ._L. .1. ,. L
I
1., , 1 1 .,J
1
1922 '24 "26 '28 '30 '32 '34 '36 '38 '40 '42 '44
Federal
Home
Loan Bank Review
md private savings, were traced down to rock bottom
n 1936. The rise in property accounts to more than
12 percent of assets was noted. As yet some word
•emains to be said of the causes that contributed to
.hose results with all their overtones of loss.
First, it should be recalled that as early as 1925
he movement of the rental index gave indications
)f impending trouble in real estate—not that the
lecline in this and the volume of construction, in
hemselves, heralded a crash. Danger ahead was
mplicit, though, in the continued market for existing
properties at prices out of line with those two gauges
)f demand. Symptoms of speculative bidding were
present. Yet the dangers inherent in such a collapse
lot only threatened loans on speculative purchases
luring this period but also periled loans on properties
purchased for owner occupancy in earlier years.
No exact parallel can be drawn between conditions
hen and now. As mentioned earlier, the decline in
•onstruction and the slackening in the rental index
ifter 1925 were due to a saturation of the market for
vhieh homes were being constructed. The absence
>f building today is the direct result of wartime
shortages in materials and manpower. Manifestly,
he current rental index is no true guide to demand,
'or rent ceilings are holding it to a stable level.
Nevertheless, certain other conditions are similar,
lamely, that, as in 1928, the high volume of current
ending by associations is based upon borrowing for
)ther than construction purposes and current sales
irices for comparable properties are in many instances at almost fictional levels.
I t falls squarely to the mortgage lender to determine from the facts what he feels will constitute a
justifiable risk. There may be merit to the argument, from purely a factual standpoint, that post-war
price trends will be upward. However, experience
iias shown that the higher they go the harder they
fall. A serious post-war boom—inflation—can lead
:>nly to another depression with all of its tragedy.
If we are to maintain full employment, we have to
oreak with the philosophy of boom and bust. This
?alls for concerted action by private industry to hold
price fluctuations within reasonable range. If realestate prices are allowed to increase disproportionately now it will be only the harder to check them in
the period of peace to come.
The progress of inflationary forces today not only
threatens the soundness of current business but may
make post-war operations precarious because they
vvould then be built on shifting sands. While the
ligh degree of liquidity in associations strengthens
Way 7945
them against danger of deflationary tendencies, rising
prices can feed upon these readily loanable funds
unless management proceeds with caution. We can
ill afford to duplicate the experiences of the past
lending cycle.
k DIRECTORY
^ H * CHANGES
M A R C H 1 6 — A P R I L 15,
1945
Key to Changes
* Admission to Membership in Bank System
** Termination of Membership in Bank System
# Federal Charter Granted
## Federal Charter Canceled
0 Insurance Certificate Granted
00 Insurance Certificate Canceled
DISTRICT N O . 1
CONNECTICUT:
Bristol:
* Bristol Savings Bank, 150 Main Street.
MASSACHUSETTS:
Westfield:
* Westfield Savings Bank, 100 Elm Street.
DISTRICT N O . 2
N E W JERSEY:
Bayonne:
*0 First Savings and Loan Association of Bayonne, N. J., 394 Broadway.
Caldwell:
0 Caldwell Savings and Loan Association, 266 Bloomfield Avenue.
0 West Essex Savings and Loan Association, 315 Bloomfield Avenue.
N E W YORK:
Stapleton, S. I.
0 Edgewater Savings and Loan Association, 15 Beach Street.
DISTRICT N O . 3
PENNSYLVANIA:
Pittsburgh:
0 Eagle Savings and^Loan Association, 125 Brownsville Road.
DISTRICT No. 6
MICHIGAN:
Belding:
* Belding Building and Loan Association, 123 W. Main Street.
DISTRICT No. 9
TEXAS:
Winnsboro:
00 Winnsboro Building and Loan Association, First National
Building.
Bank
DISTRICT N O . 10
KANSAS:
Garden City:
** Garden City Building and Loan Association, 412 Main Street.
DISTRICT N O . 12
CALIFORNIA:
Berkeley:
##00 Community Federal Savings and Loan Association of Berkeley, 2033
Shattuck Avenue.
NATIONAL HOUSING AGENCY
John B. Blandford, Jr., Administrator
FEDERAL HOME LOAN BANK ADMINISTRATION
John H. Fahey, Commissioner
233
I I Fit
New surplus-property
disposal assignments
The issuance, last month, by the
Surplus Property Board, of Regulation
No. 1 set the basic pattern for the surplus property system. With one important domestic exception, it continues the disposal assignments which
have been in operation since last year
under the original authority of the old
Surplus War Property Administration. This included the designation of
the National Housing Agency as
disposal agency for housing property.
One of the new provisions carried in
this regulation dealing with real property gives to the NHA the additional
responsibility of handling the liquidation of land owned by the Government
in connection with housing developments. Other classes of real property
are assigned to various other disposal
agencies appropriate to the type of
property involved. However, the act
makes it clear that the Board may
assign any specific tract to any disposal agency, regardless of classification, where this will facilitate disposal.
Series E redemptions
increasing
A substantial increase occurred
during 1944 in the rate of Series E war
bond redemptions, according to a recent study by the National Industrial
Conference Board. Based on total
maturity values, cumulative redemptions at the end of January this year
had risen to 16 percent of cumulative
sales from only 9.5 percent at the
same time ttie year before. This
meant that nearly one out of six of
these bonds had been redeemed by
January 31, 1945.
These redemptions were found to
be most common in bonds of $25
denomination. While they accounted
for 33 percent of all Series E bonds
sold, they represented 57 percent of the
total redeemed. The study revealed
the fact that the redemption ratio
declined as the value of the bonds
increased. For $25 bonds it was 27.7
percent; the $50 series was redeemed
234
in the proportion of 17.1 percent of
sales. The redemption rate of $100
bonds was 10.6 percent; for all other
denominations, 7.1 percent.
In spite of the upward trend in
redemptions, however, nearly $26,000,000,000 maturity value of all series
bonds were outstanding at the end
of last January. This represented a
gain of approximately $9,000,000,000
since the same month in 1944.
" H o m e Owners' Library"
in Schenectady
A new service—the "Home Owners'
Library"—has recently been instituted
by the Schenectady Savings Bank,
New York. The project, which comprises 400 books, magazines and pamphlets, is designed to aid depositors in
post-war planning; it supplies the
prospective home owner with all the
information necessary to plan construction or modernization.
The library is housed in a room
which has been constructed in the
lobby of the bank. Such features as
a hearth of weathered bricks from the
home of James Fenimore Cooper, together with Early American furniture
and bric-a-brac, lend atmosphere and
add to the effectiveness of the scheme.
Special borrowers' cards have been
printed and the library has been designated a " Public Library station" by
the Schenectady Public Library from
whom a part of the collection w^as
obtained. NewT publications pertaining to housing in its many phases will
be added as they become available.
An attendant is on duty during banking hours to check out books and assist
the public with its decoration or
building problems.
"Packaged"
mortgage loans
An all-in-one mortgage, in which
certain "heavy" household equipment will be considered as part of
the real-estate security on which
the loan is made, has recently been
approved by the board of directors
of the National Life Insurance Company.
This plan, which will be
available on all of this company'
future home loans, will "make i
easier for persons to acquire a com
pletely equipped house with pay
ments spread over a long period o
life," according to the announcemen
of L. Douglas Meredith, vice president
Subject to rules and regulations t<
be prescribed by the National Life';
legal department, new gas and electri<
appliances such as ranges or refriger
ators may be included in the "pack
aged" mortgage. A reasonable valtn
for these items of equipment mus
have appeared in the appraisal whei
the application was submitted, anc
some degree of affixation of the article
to the real estate will be required.
Small-home problems
tackled by new group
The Small Homes Council, an organ
ization to promote research, informa
tion and cooperation on urban anc
rural small-home problems, has beei
established at the University of Illinois
The proposed program includes scien
tific study of new materials and meth
ods and testing of their worth anc
application. It is planned to use
university laboratories to discover
better methods of design and building
and to exhibit to the public these
benefits in the college's demonstratioi
homes. Students interested in con
struction, design and management wil
be provided with the advantage o
practical experimental studies.
Another phase of the program wil
be to gather useful cost data and
through the publication of bulletins
and circulars, to report impartially or
new developments in the field. The
public will be kept informed on topics
including community planning, financing and contracts, homesite requirements, landscaping and design, mechanical equipment, and maintenance
and repair. It will also be the purpose
of this organization to* seek the cooperation of all elements of the building
industry and of civic organizations
interested in practical solutions of the
problems of the small home.
Federal Home Loan Bank Review
INDIVIDUALS' SAVINGS AND WAR FINANCE
•
U N D E R present wartime conditions the Federal
Government is purchasing almost half of the
output in this country. Currently, close to half of
these wartime expenditures is paid from taxes, but
the remaining Federal deficit is still running at a rate
"in excess of $50 billions a year.
The war-financing program has as its principal
objective the financing of this deficit as far as
possible through the sale of securities to nonbank
investors. The banking system is being relied upon
for only the residual amount needed over what is
supplied by nonbank investors.
Members of the Federal Home Loan Bank System
are concentrating on the sa;le of Government securities to individuals as their particular sector in the
program of war finance. How important is this
front! During the first six months of the current
calendar year individuals will receive about $82
billions of income. Wages and salaries are expected
to amount to close to $58 billions, while other income
of individuals will probably exceed $24 billions.
This income includes such items as net income and
allowances for reserves of unincorporated businesses
and farms, dividends, interest, rents, royalties,
pensions and relief.
What will be the disposition of this $82 billions?
Spendings of individuals during this six-month period
are estimated at $49 billions and tax payments are
placed at about $11.5 billions—principally Federal
income taxes, which will be swelled by nonrecurring
items. New liquid savings of individuals will
account for the remaining $21.5 billions, assuming
that none of this excess income is used to bid up
prices.
All of these savings, however, are not available for
direct investment by individuals in war bonds.
About $7.5 billions will probabry be transferred to
other investors who in turn may invest the funds in
Federal securities. These transfers include the
amounts individuals invest in insurance companies
and Government social insurance funds. They also
include deposits to savings accounts and debt reductions.
An analysis of trends in individual savings over
the past two years reveals that 51 percent of new
savings available was invested in Federal securities.
What is the significance of this 51-percent ratio?
There are a number of reasons which make it clear that
May 1945
a 100-percent ratio is unattainable, but no precise
figure can be set as an optimum. Greater cash
requirements for current operations; increased profits
and liquid reserves of small unincorporated businesses ; lethargy on the part of some who consider that
they are already doing their share in buying Federal
securities, and hoarding by others in an attempt to
protect themselves against any emergencies are all
factors which contribute to the increases in individuals' holdings of currency and commercial bank
accounts. To the extent that these holdings represent positive savings preference or business practice—
rather than a temporary accumulation of cash for
potential spending at the first opportunity—the
funds are not inflationary and the optimum percentage investment in Federal securities may be
reduced. Nevertheless, it is still true that individuals
could have—and should have—invested more than
51 percent of their new savings available during the
last two years in various types of Federal securities.
Challenge of Seventh War Loan
With available income estimated at $14 billions
for the current six-month period, the Seventh War
Loan faces the challenge by setting the individual goal at $7 billions, the highest figure for any
War Loan to date, with $4 billions in E Bonds as
compared with the highest previous E Bond goal
of $3 billions The expanded payroll plan running
over a period of three months should aid materially
in attaining the quota set for this type of investor.
235
RESIDENTIAL BUILDING ACTIVITY AND SELECTED INFLUENCING FACTORS
/935-/939=/00
BY YEARS
INDEX
I 1 1 1 11
220
i
PRIVATE CONSTRUCTION
200
/ /
\J
140
120
^.
LN. LEM D.
V FED. 3S.8
HOM E LN. BK.A
100
V
80
\
.
•-/*
/
/
/
f
/
/^SVGS.
.PRIVATE
CONSTRUCTION
1 a 2 FAMILY DWELL. UNITS
1
\
fNONFARM
L^
11
V
FORECLOSURES
L
1
L
rx^TTlT,Trn~
%+'
.*1
j
'Pit**
H—1
—
1> 1
RENTS
,-
^ >KRI1
I I niMG
i
i I
i
i
i
i
OF
1—1
^~
L PP / P P - e
IMATl
LAB( DR)
1
60
280
i
,—••'
PF/VTS
^(uTs.— DEPT*OM_ABC
)R)
V
'
'
'
-^s
(U.S. DEF>T.
1
[
1
1
1 1
I
1 1 1 1 1I
f
ADJUSTED FOR SEASONAL
I
260
I
I
I
1 1 1 1 1 1 1 1 1 1
VARIATION
I
f INDUSTRIAL 1*RODlJCTK7N
-»•• • * " • • * .
240
INDLISTRIAL PRODUCmoN-^
220
i FED. KC.3L rxvc BU«« 3)
•**
„..—•. ^"*
-J>.
/
200
>.
,.•—" ••*
""V/A COME; P A Y
MEN! S
/ j
180
i
160
...
,.•*
****••*.«,
•"•••v.
J
/ y
MF6. E(V»PLO^M E N T^
i
140
/
120
N
*r INCOME PAYMENTS
(U.S. DEPT OF C O M M E R C E ) ^ ,
80
*s
*S_rV
"v..
60
V
r_\
1 1
80
/
a LN. LEND.
^H-—
20
0
140
v
v
'"
>^
1
,\ •'" *./"
y V
^
/
irv
/'— /
IV
1
NUNraruw -"• i
FORECLOSURES 1
120
i
..«•*
40
I00\
i
i
:
V-
/r
N
60
100
.AI
f 'i
\
i
m\
/
(
i
x
1 8 2 FAMILY DWELL. UNITS
j
(FED. HOME LOAN BANK A D M . ) ^
U.S. CEPT DFLA B. RECORD" 5
180
160
BY MONTHS
ADJUSTED FOR SEASONAL VARIATION
,£
EMPLOYMENT
*% -MFG.
(U. S. DEPT OF LABOR)
<&''
*\*
W
i
1930 '31 '32 '33 '34 '35 '36 '37 '38 '39 '40 '41 42 '43 '44
MILLIONS.F.H.L.B. ADVANCES OUTSTANDING
$200 r
236
BILLIONS
$30
i
i i
i
i
1 1
I
i
i
1943
MONEY IN CIRCULATION
i
1 1
1944
1 1
1 1
1 1 1 1 11 1945
MORTGAGE RECORDINGS-ALL LENDERS
MILLIONS -
Federal Home Loan Bank Review
«
«
«
ONTHLT
SURVEY
»
J>
>
HIGHLIGHTS
/. Industrial production in March remained at a comparatively
high level—236
percent of the 1935-1939
average.
II. The 8,039 permits issued during March for urban dwelling units represented a 51-percent gain over February.
However, this total
was 35 percent below March 1944.
A. Private building activity increased 50 percent during March while 72 units were constructed with public funds—the first
in 1945.
B. A quarterly comparison shows a total of 18,400 urban dwelling units provided in 1945—a decrease of 43 percent from the
same period last year.
III. Nonfarm foreclosures showed a continuing tendency to level off.
A. In the first quarter of this year, 3,924 such actions were completed compared with 4,275 in the last quarter of 1944, and
4,766 in the first three months of last year.
B. The seasonally adjusted index of foreclosures for the first three months of this year was 9.3, 11.4, and 10.8, respectively.
IV.
Increases by all types of mortgagees brought the March volume of mortgage recordings to $433,000,000—only
the record high of October 1941.
3 percent less than
V. Indications are that lending during March reached record levels.
A. All types of loans showed gains over February with the home-purchase category accounting for 75 percent of the March
B. Increased lending in March was general—all Bank Districts reporting gains.
VI. Advances outstanding were the lowest since August 1933, while new advances made were the lowest for any March.
were the highest on record for that month.
total.
Repayments
ft ft ft
BUSINESS C O N D I T I O N S - G e n e r a l l y
high volume of activity reported
Reflecting the national determination to bring all
energies to bear on the war against Japan in order
that this may be fought through to an early and
decisive conclusion, industrial output in March
continued at the same high level as in the preceding
month, 236 percent of the 1935-1939 average, according to the index compiled by the Federal Reserve
Board.
The manufacture of machinery showed little
change from February. However, production of
transportation equipment diminished as the result
of further curtailment in shipyard operations.
Most nondurable industries continued production
at February levels. According to the Department
of Commerce, there was no significant decline in the
output of civilian goods in the first three months of
1945. Despite higher war-production schedules, the
quantity of nondurable goods flowing to the civilian
economy during this period was 5 percent above that
reported for the corresponding months of 1939.
Department store sales showed another sharp rise
in March, reaching 224 percent of the seasonally
adjusted index (1935-1939 = 100) compared with 212
in February and 200 in January. With the exception of coal, freight car loadings of all commodities
also showed continued gains.
May 194S
Employment mounted to 50,830,000 during the
month, a gain greater than that reported in the total
labor force with the result that unemployment
declined somewhat, standing at 830,000 persons.
With the individual taxpayer having to pay the
balance due on 1942 or 1943 taxes, income tax payments during March held the rise in currency in
circulation to a lower figure than the increase in the
corresponding month of 1944. A gain of $140,000,000
in the 1945 month compared with $263,000,000 in
the same month last year.
War expenditures rose to new heights as the
monthly total exceeded $8,000,000,000 in March,
dwarfing by $2,500,000,000 the record receipts
reported for that month. The previous record in
these expenditures was reported in May 1944, when
they amounted to $7,879,000,000.
[1935-1939 = 100]
T y p e of index
H o m e construction (private) !
Foreclosures (nonfarm) 1
_
E e n t a l index ( B L S ) .
B u i l d i n g material prices
Savings a n d loan l e n d i n g !. .__ _
Industrial production ] .
Manufacturing employment I-_. _
Income payments !
- ... - ..
March
1945
48.6
10.8
108.3
130.8
217.2
236.0
161.1
244.8
Feb.
1945
50.4
11.4
108.3
130.6
207.1
r 236. 0
r 163. 7
245.2
Percent
change
March
1944
-3.6
-5.3
0.0
+0.2
+4.9
0.0
-1.6
-0.2
54.2
12.7
108.1
127.5
178.3
241.0
174.9
231.9
Percent
change
-10.3
-15.0
+0.2
+2.6
+21.8
-2. 1
-7.9
+5.6
Adjusted for normal seasonal variation.
• Revised.
237
BUILDING ACTIVITY-Public and
private construction vp
The total of about 8,039 urban dwelling units for
which permits were issued during March represented
a substantial relative gain (51 percent) over the preceding month. Privately financed construction,
which, during recent months, dropped to the lowest
level in a decade or more, accounted for the major
portion of this gain, providing 7,967 family dwelling
units in March compared with 5,324 in February.
Public construction, the first in 1945, totaled 72 units
in March.
Although private construction registered a large
percentage gain from February to March, the number of units provided during the latter month was
still about 12 percent below the March 1944 total
of 9,000. As a result of the even sharper decline in
public construction (from 3,339 units in March of
last year) the total number of family dwellings provided in March 1945 was 35 percent below that of a
year ago.
vances.
1
1
URBAN AREAS - NO. OF
[TABLES 3, 4, and
5.]
Construction costs for the standard house
[Average month of 1935-1939=100]
Element of cost
Mar.
1945
Material
Labor
132. 0
140. 2
r
134. 7
r
RESIDENTIAL CONSTRUCTION
THOUSNEW
25
140.2, respectively. Compared with March 1944,
material costs gained 2.2 percent; labor charges, 2.5
percent; and total costs, 2.3 percent.
Wholesale prices of building materials, as reported
by the Department of Labor, advanced slightly
during March. Declines from February were noted
for lumber and paint and paint materials, while
structural steel and plumbing and heating materials
remained unchanged. All other components made
small gains. Since March 1944, the composite
index has increased 2.6 percent and now stands at
130.8. With the exception of structural steel, which
indicated no change, all commodities showed ad-
Total
Feb.
1945
Percent
change
Mar.
1944
131. 8
140. 1
+ 0. 2
+ 0. 1
129. 1
136. 8
+ 2. 2
+ 2. 5
134. 6
+ 0. 1
131. 7
+ 2. 3
Percent
change
1
DWELL.
UNITS
r
Revised.
MORTGAGE LENDING—Reached
new high
IVfl I I 1 I I I I
1942
1943
1944
1945
During the first quarter of 1945, permits were
issued for a total of approximately 18,400 units in
urban areas, about 14,000 units, or 43 percent, less
than during the same period of 1944. [TABLES 1
and 2.]
B U I L D I N G COSTS—Increases
noted during March
Fractional increases in both the material and labor
components during March brought the index of total
construction costs for the standard house to 134.7
percent of the 1935-1939 average. A gain over February of 0.2 percent in costs of materials and 0.1
percent in labor raised these indexes to 132.0 and
238
New mortgage lending by all savings and loan
associations reached a new high level in March.
Estimates of new lending by these institutions are
available by months only since 1936, but annual
estimates are on hand as far back as 1925. On the
basis of these monthly and annual figures, it can
be stated with some assurance that the $141,500,000
of new mortgage loans made by savings and loan
associations during March exceeded the volume of
loans made in any other month since 1930 or possibly
1929. The new loan volume for the current month
was one-third greater than in February and exceeded by more than one-fifth the $116,100,000 of
new home-mortgage credit extended by these institutions during March of last year.
AH types of loans evidenced gains from February
to March, increases ranging from 0.2 percent for
"other" purpose loans to 140 percent for construction loans. Despite the sharp percentage rise in
construction lending, savings and loan associations
loaned only $7,400,000 for this purpose in March.
Loans for the purchase of existing homes, which
accounted for three-fourths of total lending during
March, were 35 percent higher than in February,
Federal Home Loan Bank Review
New mortgage loans distributed by purpose
[Dollar a m o u n t s are shown in thousands]
Mar.
1945
Purpose
Percent
change
Feb.
1945
Percent
change
Mar.
1944
aggregating almost $350,000,000, an increase of
about 18 percent over the $295,000,000 of new loans
made during the first quarter of 1944 and almost
one-third more than the volume of new loans made
during the same period of 1941. [TABLES 6 and 7.]
MORTGAGE RECORDINGS—Sharp
Construction
Home purchase
Refinancing
Reconditioning
Other purposes
$7,
105,
15,
2,
10,
Total
406
307
922
559
287
$3,
78,
12,
1,
10,
+ 140.
+ 34.
+ 27.
+ 28.
+ 0.
081
140
524
994
270
4 $9, 127 - 1 8 . 9
8 81, 846 + 28. 7
1 14, 422 + 10..4
3 2,266 + 12. 9
2 8, 469 + 21. 5
141, 481 106, 009 + 33. 5 116, 130 + 21. 8
•efinaneing loans were up 27 percent in this comparison and reconditioning loans, 28 percent.
Increases in lending activity of savings and loan
issociations were general throughout the country,
[n all Bank Districts the volume of new loans
made during March was greater than in the preceding
month or in the same month of 1944.
During the first three months of this year, all
savings and loan associations made newT loans
TOTAL LOANS MADE BY ALL SAVINGS AND LOAN ASSOCIATIONS
UNITED STATES-BY TYPE OF ASSOCIATION
BY MONTHS
MILLIONS
OF DOLL - "
160
1
r
7'OTAL
iSSOCIAT
(ALL
0NS)X
1
1
/
«FEDERALS
^
<& &**
t>
V
, /
QTE CHARTERED
MEML3ERS
V
>-'/'
expansion during March
Mortgage-financing activity throughout the country expanded sharply during March, the estimated
$433,000,000 of nonfarm mortgages of $20,000 or
less recorded during the month representing an increase of about $95,000,000, or 28 percent, over the
total for the preceding month. All types of lenders
shared in this rise, with increases ranging from
20 percent for lenders in the miscellaneous category
to 36 percent for savings and loan associations.
In March 1945 financing activity was 18 percent
higher than in March of last year, 61 percent greater
than in the same 1943 month, and 24 percent above
the March 1941 level. In fact, the volume of
mortgages recorded this March fell only 3 percent
short of the monthly peak established for this
series in October 1941 when a total of $448,000,000
of these instruments was recorded.
In the first three months of this year, recordings by all types of lenders aggregated almost
$1,127,000,000, a gain of 15 percent over the same
period of last year and about 57 percent above the
first quarter of 1943. This sharp increase in dollar
volume resulted from both an advance in the number
of mortgages recorded and a continued upward trend
in the average size of these mortgages. The approximately 337,000 nonfarm mortgages of $20,000
or less recorded in the first quarter of this year were
NOI\IMEMBL7?S«^
,,
1 1
OEC.
MAR.
1 1
JUN.
SEP.
,rrrr
DEC.
1943
1 1
I
1 1
JUN.
SEP.
l
i
DEC.
I
1 1
MAR.
1944
JUN.
SEP.
DEC.
1945
UNITED STATES--BY PURPOSE
BY MONTHS
Mortgage recordings by type of mortgagee
[Dollar a m o u n t s are shown in thousands]
OF LOAN
160
PI-HOME PURCHASE
Kjj-CONSTRUCTION
T y p e of lender
^-REFINANCING
120
P+OTHER
l
100
60
Savings and loan associations
Insurance companies
Banks, t r u s t companies
M u t u a l savings banks
Individuals
Others
60
,
40
g
j
20
PerPerCumula- Percent
cent
cent
tive
change
of
of
Mar.
recordfrom
total
1945
ings
Feb.
record1945 a m o u n t (3 months) ings
+
+
+
+
+
+
36.
28.
25.
31.
23.
20.
1
9
1
5
3
0
34.
4.
18.
3.
26.
12.
9 $374, 017
8
54, 585
5 209, 042
1
36, 442
5 307, 419
1 145, 107
33. 2
4. 8
18. 6
3.2
27. 3
12.9
*f
OEC
MAR
JUN
SFP
1943
May 1945
DEC
SEP
OEC
MAR.
JUN.
SEP
DEC.
Total
+ 27. 9
100. 0 1, 126, 612 100. 0
1945
239
9 percent more than in the first quarter of 1944
and 37 percent over the same 1943 period. The
average mortgage recorded by all types of lenders
during the first three months of 1945 amounted to
$3,338, an increase of $179, or 6 percent, over the
average for the same period of last year and an
advance of $433, or 15 percent, above the average
size of mortgages recorded during the JanuaryMarch period of 1943. All types of lenders recorded
larger average mortgages during the first quarter of
1945 than in the same period of last year or of 1943.
[TABLES 8 and
9.]
F H L B SYSTEM—Advances outstanding
near all-time low
Federal Home Loan Bank advances outstanding
at the end of March dropped to the lowest volume
recorded since August 1933. The total of $61,059,000
was down 22 percent from that shown at the end of
February (with all Banks participating in this
decline) and 38 percent below the balance outstanding on March 31, 1944. The March 1945 balance
was only slightly more than one-fourth of the alltime high recorded at the close of December 1941.
Following the normal seasonal trend (which had
been reversed last year) advances made during March
1945 exceeded those of February. This year the
total of $2,770,000 was almost twice as large as that
of the preceding month, with every Bank District
except Winston-Salem and Topeka reporting increases. Even so, except for 1943 and 1935, total
advances were the lowest ever reported during
March. They were down 13 percent from the
amount that was advanced in that month of 1944.
Repayments made by member associations to the
F H L Banks in March amounted to $20,882,000, the
most ever received in that month. This was 16
percent more than was received in March 1944. In
spite of the comparatively high volume of repayments, the March 1945 amount was 25 percent
below the figure reported in February. Only two
Banks (Chicago and Los Angeles) registered increases during March over the preceding month.
A comparison of the first quarter of this year with
the same period of 1944 shows a decrease in financing
activity. Advances made during the first three
months of 1945 totaled only $15,250,000—a third of
last year's volume of $45,418,000. Repayments
this year, on the other hand, increased 65 percent
over those received in the same period last year—
$84,755,000 compared with $56,108,000. [TABLE 12.]
240
FLOW
OF PRIVATE
REPURCHASABLE
CAPITAL
Total savings invested in savings and loan associa
tioiis during the first quarter of this year amounte<
to almost $564,000,000, a substantial gain (24 per
cent) over the $453,000,000 received in the sam
period of last year. Withdrawals during the quarte
amounted to approximately $331,000,000, or abou
13 percent more than in the first three months o
1944. As a result of the greater percentage gain ii
new investments than in repurchases, the repurchas
ratio for all associations dropped from 64 to 5\
percent.
During the first quarter, total savings invested h
insured associations exceeded by 30 percent invest
ments in the same 1944 period, while withdrawal
from these associations increased only 17 percent
resulting in a repurchase ratio of 56 percent com
pared with 63 percent for the first quarter of 1944
The repurchase ratio for uninsured members of tb<
Federal Home Loan Bank System also showed im
provement in this comparison, dropping from 69 tc
65 percent. In contrast, the repurchase ratio fo
nonmember associations increased 7 points to 71
percent.
In March, all savings and loan associations at
tracted approximately $171,000,000 of new saving;
and paid out about $93,000,000 in withdrawals, o
Share investments and repurchases, March 1945
[Dollar a m o u n t s are shown in thousands]
All
associations
I t e m a n d period
Ail insured
associations
Uninsured
members
N onmembers
Share i n v e s t m e n t s :
1st 3 mos. 1945
1st 3 mos. 1944
Percent change
March 1945
M a r c h 1944
Percent change
$563, 553 $459, 555 $64, 668 $39, 33(
453, 247 352, 601 61, 030 39, 61(
+6
. +24
+ 30
170, 887 138, 709 20, 319 11, 85<
142, 643 104, 494 22, 853 15, 29(
+ 20
-11
+ 33
-2\
Repurchases:
1st 3 mos. 1945
1st 3 mos. 1944
Percent change
M a r c h 1945
M a r c h 1944
Percent change
$330, 580 $258, 520 $41, 935 $30,
291, 293 221, 422 42, 137 27,
+ 13
+ 17
0)
93, 035 71, 488 12, 820 8,
76, 638 56, 693 11, 705 8,
+ 21
+ 10
+ 26
Repurchase ratio (percent) :
1st 3 mos. 1945
1st 3 mos. 1944
M a r c h 1945
M a r c h 1944
1
58.7
64. 3
54. 4
53. 7
56.
62.
51.
54.
3
8
5
3
64. 8
69.0
63. 1
51. 2
12;
73
+<
72'
24(
+<
76. (
70. (
73. (
53. <
Less than 1 percent decrease.
Federal Home Loan Bank Reviev,
about $54 for each $100 invested. During the same
month of last year, total share investments and repurchases amounted to about $143,000,000 and
$77,000,000, respectively, also yielding a repurchase
ratio of 54 percent.
Progress in number a n d assets of Federals
[Dollar a m o u n t s are shown in thousands]
Approximate assets
Number
Class of association
Mar. 31,
1945
Mar. 31, Feb. 28,
1945
1945
INSURED ASSOCIATIONS—Liquidity
Feb. 28,
1945
and average savings gained
At the end of March, the 2,465 insured savings and
loan associations held total assets of $5,100,000,000,
of which 31 percent was in liquid form. Cash accounts aggregated $327,000,000 in March, after
increasing 21 percent'during the quarter, and represented 6 percent of total assets. U. S. Governmentbond accounts, which were 3 percent above the
December 1944 level, amounted to $1,262,000,000,
or 25 percent of assets. At the end of March 1944,
cash and Government bonds held by insured associations accounted for 23.5 percent of total assets
of these institutions.
Savings represented by the accounts of 4,140,000
private investors approximated $4,500,000,000 at the
end of March and amounted to 88 percent of the total
resources of all insured associations. The average
investment in insured associations at the end of
March was about $1,095 compared with an average
of $989 one year earlier.
Despite the fact that insured associations made
$266,000,000 in new mortgage loans during the first
three months of this, year, net first mortgage holdings
of these institutions rose only $41,000,000 to approximately $3,300,000,000.
During the three months ending in March, insured associations retired about $9,000,000 of
Government-share capital, reducing the outstanding balance to $28,800,000. I n the same period,
Bank advances were reduced from $123,500,000 to
$54,400,000. [TABLE 13.]
New
Converted
Total
632
833
1, 465
632 $1, 098, 328 $1, 083, 308
832 2, 139, 614 2, 117, 016
1,464
3, 237, 942
3, 200, 324
FORECLOSURES—Index
of foreclosures showed leveling
Nonfarm real-estate foreclosures during the first
quarter of 1945 were the lowest for any three-month
period since the series was started in 1926. From
January through March, inclusive, they totaled an
estimated 3,924, representing a drop of 8 percent
from the last quarter of 1944 and 18 percent less
than in the corresponding period of last year. However, this does not alter the fact that during the past
12 months the adjusted foreclosure index has shown
signs of leveling off, fluctuations ranging from 9.3 to
11.4 percent of the 1935-1939 average. The figure
for March was 10.8 percent.
The annual rate of foreclosures per 1,000 structures
was 0.7 for the first quarter of 1945, compared with
0.8 for the last three months of 1944. Greater
numbers of distress actions were reported in 19 states
and the District of Columbia.
Comparing the first quarter of this year with the
same 1944 period, eight Districts reported reductions
in foreclosures varying from 47 percent in Chicago
to 9 percent in Cincinnati. Other Districts showed
increases ranging from 11 percent in Portland to 148
percent in Indianapolis.
[TABLE 15.]
F E D E R A L SAVINGS AND LOAN ASSOCIATIONS
Liquid assets of the 1,465 Federal savings and loan
associations rose 5 percent over December to a total
of $1,025,000,000, and comprised 32 percent of the
$3,238,000,000 in total resources at the close of
March. Cash represented 6 percent of the total
assets at the end of March and U. S. Government
obligations, 26 percent. Private capital accounts
amounted to $2,895,000,000, representing the savings
of 2,465,000 investors in Federal associations.
Federals made over $69,000,000 in new loans during
March.
May 1945
New V i c e Chairman in Des Moines
•
A N N O U N C E M E N T has been made by James
Twohy, Governor, Federal Home Loan Bank
System of the designation of Robert E. Lee Hill as
Vice Chairman of the Federal Home Loan Bank of
Des Moines. Mr. Hill, who is secretary of the
Missouri Bankers Association, will fill the unexpired
portion of a term ending December 31, 1945. He
is at present a public interest director of the Des
Moines Bank, appointed to serve in that capacity
for a term to end in December 1947.
241
Table 1 . — B U I L D I N G A C T I V I T Y — E s t i m a t e d number and valuation of new family-dwelling units
provided in all urban areas in March 1945, by Federal Home Loan Bank District and by State
[Source: U. S. Department of Labor]
[Dollar amounts are shown in thousands]
,
All p r i v a t e 1- a n d 2-family s t r u c t u r e s
All residential s t r u c t u r e s
N u m b e r of familydwelling u n i t s
Federal H o m e L o a n B a n k District a n d S t a t e
N u m b e r of familydwelling u n i t s
Permit valuation
Permit valuation
M a r c h 1945 M a r c h 1944 M a r c h 1945 M a r c h 1944 M a r c h 1945 M a r c h 1944 M a r c h 1945 1 M a r c h 1944
UNITED STATES
...
-
8,039
12, 361
$26, 350
$36, 674
7,249
8,087
$24,038
$26, 375
67
109
254
448
55
109
212
448
18
82
35
36
14
57
82
164
156
65
217
18
47
36
14
57
122
156
65
- 217
2
2
8
10
2
2
8
10
85
119
327
414
82
108
322
406
34
51
90
29
128
199
307
107
31
51
79
29
123
199
299
107
53
440
128
1,322
34
268
78
902
45
8
421
19
1,314
8
26
8
249
19
74
4
894
8
1,293
1,205
3,045
1,056
686
2,821
1,390
189
273
344
117
99
90
13
168
104
28
658
303
2
49
25
36
189
152
288
117
99
90
13
108
104
24
154
298
2
43
25
36
346
506
678
336
322
250
626
72
108
1,848
876
3
20
14
104
376
72
103
202
873
3
19
14
104
401
960
1,701
3, 756
347
739
1,508
3,069
26
218
157
39
788
133
57
1,197
447
81
3,396
279
26
196
125
39
567
133
57
1,101
350
81
2,709
279
274
1,490
1,175
6,047
250
1,001
1,133
4,736
165
109
391
1,099
667
508
1,142
4,905
141
109
200
801
625
508
738
3,998
1,026
531
4,900
2,320
972
466
4,679
2,158
977
49
432
99
4,693
207
1, 988
332
931
41
417
49
4,497
182
1,928
230
257
207
1.092
519
257
107
1,092
279
40
162
33
4
18
9
4
97
104
874
68
274
i
39
1
40
162
33
4
18
9
197
104
874
68
1
39
1
1,529
1,369
2,714
2,023
1,501
1,269
2,667
1, 862
. . .
_ . _ . . _ .
. . . . . . . . .
.
.
. . . .
66
313
126
66
958
31
182
120
63
973
62
595
105
61
1,891
8
379
28
37
1,571
66
313
126
66
930
31
182
120
51
885
62
595
105
61
1,844
8
379
29
35
1,411
. ..
452
343
1,396
917
430
229
1,340
593
291
31
27
103
148
16
98
81
1,017
84
106
189
420
10
354
133
269
31
27
103
34
16
98
81
961
. 84
106
189
96
10
354
133
585
861
1,914
2,853
417
600
1,523
2,059
60
38
106
24
319
38
129
27
266
37
387
15
270
60
367
65
1,070
82
372
78
927
89
1,323
64
60
38
106
24
175
14
69
7
164
37
308
15
270
60
367
65
710
51
233
16
578
89
1,079
64
2.017
4,727
7,146
13,010
1,848
2,505
6,663
8, 473
118
1,878
21
166 1
4,558 !
3 1
456
6,624
66
401
12,603
6
118
1,709
21
54
2,448
3
456
6,141
66
107
8,360
6
.
..
N o . 1—Boston
C o n n e c t i c u t l._
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont .
._
..
.
.
..
N o . 2—New Y o r k
_ __ .
..
..
New Jersey.
New York
.
. . ...
-
__
_ _ _. .
..
.
.
.
- ________
. . .
.
N o . 3—Pittsburgh
Delaware
Pennsylvania
W e s t Virginia
-
-
... .
_
'" _ .
N o . 4—Winston-Salem
... _
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 . .
S o u t h Carolina
Virginia. _
.
.
. _
_
.
. ._
. . . .
__
. . . .
....
.
N o . 5—Cincinnati
Kentucky...
Ohio
Tennessee
... ..
...
N o . 6—Indianapolis
. . . ._
1
Indiana..
Michigan
.
.
N o . 7—Chicago
Illinois
Wisconsin.__
...
...
._
N o . 8—Des M o i n e s . . . .
Iowa
_
Minnesota. .
Missouri
__ _
North Dakota . . . .
South Dakota
.
._
.....
. . . . .
.
. ...
.__
..
...
_
. . .
.
.
.
..
.
...
....
.
N o . 9—Little R o c k
Arkansas
.
Louisiana..
Mississippi
N e w Mexico
Texas . . _
_
....
. . .
.
N o . 10—Topeka
Colorado
Kansas
Nebraska
Oklahoma.
.
...
. ..
..
..
.
_
...
._
...
.
.. .
...
. _
...
._ . _
. . . ._ . . . . .
.
N o . 11—Portland
Idaho . .
Montana
Oregon
Utah
Washington
Wyoming...
- .
...
.
.
. .
. _
...
N o . 12—Los Angeles
...
Arizona
..
......
... . . . . .
California _ _ _ _ _ . .
. .
Nevada _
.
. . . . . . . . . . .
242
. .
...
_.
.
.
.
.
...
.
124
4
3,603
346
854
862
336
322
250
514
4
Federal Home Loan Bank Review
Table 2 . — B U I L D I N G A C T I V I T Y — E s t i m a t e d number and valuation of new family-dwelling units
provided in all urban areas of the United States
[Source: U. S. Department of Labor]
[Dollar amounts are shown in thousands]
Permit valuation
N u m b e r of family-dwelling u n i t s
a/Tonthly
T y p e of construction
M a r . 1944
P r i v a t e construction
...
1-family d w e l l i n g s , . .
2-family dwellings *. . . . . . .
...
.
3-and more-family dwellings 2 . . .
. . .
P u b l i c construction
.
T o t a l u r b a n construction
1
2
r
..
...
1915
7,967
5,324
9,022
18, 337
6,350
899
718
4,326
366
632
6,922
1,165
935
14, 771
1,478
2, 088
J a n . - M a r . totals
M a r . 1945
F e b . 1945
M a r . 1944
25,104
$26,165
$16, 861
$29, 052
$57,211
$80, 204
19, 340
2, 551
3,213
21, 541
2,496
2,128
13, 593
996
2,272
22,117
4,258
2,677
46, 696
4,072
6,443
61, 725
8, 616
9,863
r 1944
F e b . 1945
M a r . 1945
M o n t h l y totals
J a n . - M a r . totals
totals
1945
' 1944
72
0
3,339
72
7,323
185
0
7, 622
185
16, 623
8,039
5,324
12, 361
18,409
32, 427
26, 350
16. 861
36, 674
57, 396
96, 827
Includes 1- and 2-family dwelling combined with stores.
Includes multi-family dwellings combined with stores.
Revised.
Table 3 — B U I L D I N G
C O S T S -Index of building costs for tfie standard house in representative
cities in specific months l
[Average month of 1935-1939 = 100]
1943
1944
1945
1942
1941
April
April
1940
1939
April
April
Federal H o m e L o a n B a n k District a n d city
April
N o . 2—New Y o r k :
Camden, N . J .
Newark, N . J
Albany, N . Y
Buffalo, N . Y .
.
. .
.'
N o . 6—Indianapolis:
Indianapolis, Ind*.
Detroit, M i c h * . .
. .
. . . .
N o . 8—Des M o i n e s :
D e s Moines, Iowa*
St. Louis, M o * . _.
Sioux Falls, S. D *
N o . 11—Portland:
Boise, I d a h o *
. .
P o r t l a n d , Oregon*
Salt L a k e C i t y , U t a h *
Seattle, W a s h *
. . . .
. .
. .
..
. .
..
.
_
. . .
Jan.
Oct,
July
April
April
145.1
143. 6
159.3
143.8
142.1
140.7
157.1
140.4
140.0
137. 3
156.1
130.4
130.8
138.8
137. 0
123.2
125.4
117.3
114. 7
119.4
112.0
108.8
106.6
103.3
100.9
103.7
103.4
101.6
100.2
146.5
152.3
146.5
152.1
146.4
152.6
143.5
149.6
125.9
128.8
126.1
123.3
116.5
108.7
96.8
102.0
105. 3
107.2
120.9
127.1
130. 5
120.7
126.7
130.3
120.9
124.6
130.7
121.1
123.0
130.4
118.4
123.4
127.7
116.1
120.9
126.2
115.2
125.4
119.4
106.0
109.2
108.3
102.6
99.3
101.5
101.6
98.2
104.0
139.4
143.4
129. 1
138.9
139.7
143.4
129.7
138.9
140.8
143.6
129.7
138.9
137.2
140.9
126.8
134.6
136.8
140.9
126.8
133.7
126.4
133. 0
122.8
126.6
126.2
115.1
119.6
123.8
112.4
104.2
106.2
110.6
106.2
'98.9
102.8
103.6
104.6
'94.8
103.0
102.7
145. 2
161.9
151.4
149.4
143.2
159. 7
148.0
r 145. 1
146.5
152.9
•Indexes
of April 1941 and thereafter have been revised in order to use retail material prices collected by the Bureau of Labor Statistics.
r
Revised.
1
This index is designed to measure the changes in the costs of constructing a standard frame house and to provide a basis for the study of the trend of costs within an
individual community or in different cities. The various units of materials and labor are selected in accordance with their contribution to the total cost of the completed
dwelling.
Material costs are based on prices for a limited bill of the more important items. Current prices are furnished by the Bureau of Labor Statistics and are based on
information from a group of dealers in each city who report on prices for material delivered to job site, in average quantities, for residential construction. Because of
wartime conditions, some of the regular items are not available at times and, therefore, substitutions must be made of similar products which are being sold.
Labor costs are based on prevailing rates for residential construction and reflect total earnings, including overtime and bonus pay. Either union or nonunion rates
are used according to which prevails in the majority of cases within the community.
Figures presented in this table include all revisions up to the present time. Revisions are unavoidable, however, as more complete information is obtained.
Cities in F H L B Districts 2, 6, 8, and 11 report in January, April, July and October of each year; those in Districts 3. 5, 9 and 12 report in February, May, August
and November; and those in Districts 1, 4, 7 and 10 report in March, June, September and December.
h
SUPPORT THE 7» WAR LOAN!
May 1945
243
Table 4 . — B U I L D I N G COSTS—Index of building costs for the standard house
[Average m o n t h of 1935-1939=100]
M a r . 1945 Feb.1945 J a n . 1945 Dec. 1944 N o v . 1944[ Oct. 1944 Sept. 1944 A u g . 1944 J u l y 1944 J u n e 1944 M a y 1944 A p r . 1944 M a r . 1944
E l e m e n t of cost
Material
Labor.
Total
.__ .__ ___
_ - .
. .
_
132.0
140.2
••131.8
140.1
* 131.6
' 140. 0
'131.5
r 140. 0
131.5
139.9
131.3
139.1
131.2
138.5
131.3
137.3
131.0
137.3
130.7
137.5
130.3
137.3
129.7
137.0
129.1
136.8
134.7
r 134.6
134.5
134.4
134.4
133.9
133.7
133.3
133.1
133.0
132.7
132.2
131.7
• Revised.
Table 5 . — B U I L D I N G COSTS—Index of wholesale prices of building materials in the United States
[1935-1939=100; converted from 1926 base]
[Source: U. S. Department of Labor]
All building
materials
Period
Brick and
tile
Paint and
paint materials
Lumber
Cement
Plumbing
and heating
Structural
steel
Other
1943: M a r c h
123.3
108.6
103. 4
r 152. 2
125.7
118.8
103.5
110.3
1944: March
April
May
June.July
August
September
October
November
December...
127.5
128.6
129.2
129.4
129.4
129.5
129.5
129.9
130.0
130.0
110.4
110.4
110.6
110.7
110.8
110.8
111.7
115.3
115.6
115.9
102.7
103.1
105.8
105.8
105.8
105.8
106.3
107.0
107.2
107.0
167.8
170.8
171.5
171.5
171.7
171.9
171.5
171.3
171.3
171.3
128.4
128.4
128.7
130.0
129.7
129.7
129.7
130.3
130.7
130.7
120.6
120.6
121.4
121.4
121.4
121.4
121.4
121.4
121.4
121.4
103.5
103.5
103.5
103.5
103.5
103.5
103.5
103.5
103.5
103.5
111.2
111.2
111.4
111.4
111.5
111.6
111.7
111.7
111.7
111.7
130.4
130.6
130.8
121.5
121.6
121.8
106.9
108.7
109.1
171.3
171.4
171.3
130.7
130.8
130.7
121.4
121.4
121.4
103.5
103.5
103.5
111.9
112.0
112.3
+0.2
+2.6
+0.2
+10.3
+0.4
+6.2
-0.1
+2.1
-0.1
+1.8
0.0
+0.7
0.0
0.0
+0.3
+1.0
.-
_,
_
__
1945: January
February
March
...
P e r c e n t change:
M a r c h 1945-February 1945
M a r c h 1945-March 1944
r
Revised.
Table 6 . — M O R T G A G E LENDING—Estimated volume of new home-mortgage loans by all savings
and loan associations, by purpose and class of association
[Thousands of dollars]
P u r p o s e of loans
Class of association
Period
1943
j.
January-March
March
.
__
...
.
...
_ . _.
..
1944
January-March
....
March
.
April
May
June
. _.
July
August
-__
September
October
.
November _
December
._
1945
January-March.
January.
February.
March. ...
_.
...
. . . .
._
.
...
.
...
..
. .
„
...
_ .
... -.. ..
_. . .
..
.
_.
244
_
. _ __
•_____........
Total
loans
Construction
Home purchase
Refinancing
Reconditioning
L o a n s for
all o t h e r
purposes
$106,497
$802,371
$167,254
$30,441
$77,398
$1,183,961
$511, 757
$539,299
$132,905
20, 339
127,139
38, 792
5,997
16,098
208, 365
87,806
93,680
26, 879
8,572
55,235
14.874
2,377
6,127
87,185
37.850
38, 595
10, 740
95,243
1,064,017
163,813
30,751
100,228
1,454,052
669,433
648, 670
135, 949
28,194
202, 984
36, 353
5,747
21,994
295, 272
135,103
130, 281
29, 888
9,127
13,484
7,338
9,663
7,078
7,589
5,923
6,095
4,635
5,244
81,846
85, 568
98,872
103,276
93,232
105,050
101,884
101,461
90,182
81, 508
14,422
13, 491
14,415
14,963
13,871
14,152
14,495
15,253
13,265
13,555
2,266
2,679
2,967
2, 957
2,841
3,067
3,160
2,699
2,507
2,127
8,469
7,421
8,931
9,850
8,014
8,816
8,993
9,720
7,785
8,704
116,130
122, 643
132, 523
140, 709
125,036
138, 674
134,455
135,228
118,374
111,138
53, 883
57,045
59, 229
64,474
57,164
64,400
63,489
61,965
54,978
51,586
50, 686
54, 212
60,141
63,851
56, 539
61,377
59,162
60,945
52,241
49,921
11, 561
11, 386
13,153
12,384
11,333
12,897
11,804
12,318
11,155
9,631
14, 259
259, 942
40,613
6,421
28, 556
349, 791
165, 769
153,715
30, 307
3,772
3,081
7,406
76,495
78,140
105, 307
12,167
12, 524
15, 922
1,868
1,994
2,559
7,999
10, 270
10, 287
102, 301
106,009
141,481
46,439
49,900
69,430
46,452
46,575
60,688
9,410
9, 534
11,363
Federals
State
members
Nonmembers
Federal Home Loan Bank Review
Table 7.—LENDING—Estimated volume of new
loans by savings and loan associations
Table 8.—RECORDINGS—Estimated nonfarm
mortgage recordings, $20,000 and under
[Thousands of dollars]
MARCH 1945
[Thousands of dollars]
C u m u l a t i v e n e w loans
(3 m o n t h s )
N e w loans
Federal H o m e L o a n
B a n k District a n d
class of association
UNITED STATES.
Mar.
1945
_ _ __
Feb.
1945
Mar.
1944
1945
1944
Percent
change
$141, 481 $106, 009 $116,130 $349, 791 $295, 272
+ 18.5
53, 883 165, 769 135,103
50, 686 153, 715 130, 281
11, 561 30, 307 29, 888
+22.7
+ 18.0
+ 1.4
49, 900
46, 575
9,534
69, 430
60, 688
11, 363
Federal
State member_ _ _
Nonmember
_ .
7, 541
5,875
7,136
20, 268
18, 385
+ 10.2
Federal
State m e m b e r . _ . __ _
Nonmember
3,742
3,059
740
2,499
2,776
600
2,683
3,313
1,140
8,688
9,491
2,089
6,233
9,238
2,914
+39.4
+2.7
-28.3
Boston
. .
New Y o r k
. .
__
Federal
State m e m b e r . . _
Nonmember _ _
Pittsburgh
_ __
Federal
.
S tate m e m b e r
Nonmember
Winston-Salem
_ _.
Federal
State member
Nonmember
__
...
12, 741
8, 845
8,748
31, 069
22, 210
+39.9
4,385
6,241
2,115
2,936
4,442
1,467
2,319
4,882
1,547
10, 580
15, 238
5,251
5,641
12, 456
4,113
+87.6
+22.3
+27.7
•
8,304
9,492
28,110
24, 462
+14.9
5,395
3,661
2,142
3,851
3,052
1,401
4,246
2,952
2, 294
13, 198
9,882
5,030
10,880
7,968
5,614
+21.3
+24.0
-10.4
17, 097
14, 212
15, 724
44,638
37, 659
+18. 5
9,577
6,656
864
7,501
5,916
795
9,206
5,777
741
24, 217
18, 000
2,421
20, 582
14, 993
2,084
+17.7
+20.1
+16.2
24,140
16, 578
19, 295
55, 789
48, 450
+ 15.1
11,198
.
.. _
11, 273
11,465
1,402
6,869
8,478
1,231
7,667
9,939
1,689
24, 290
27, 757
3,742
19, 582
24, 297
4,571
+24.0
+14.2
-18.1
- _
7,517
6,978
5,923
20, 111
16, 716
+20.3
Federal
_
_._ . .
State m e m b e r . . . . . .
Nonmember
.
. _
3,961
3,323
233
3,566
2,972
440
2,827
2,733
363
10, 308
8,812
991
8,170
7,670
876
+26.2
+14.9
+ 13.1
Federal
State member
Nonmember
Indianapolis
.
281
3,050
6,147
5,036
2,033
25,491
182
9
90
1,247
244
956
153
387
63
1,015
668
3,310
531
303
320
1,441
542
2,172
338
340
203
622
57
991
32
299
32
5,814
2, 116
13, 239
1,396
2,113
813
10, 450
1,598
5,709
5,336
13, 058
5,384
41, 535
3,316
7,134
612
986
3,013
2,696
725
4,611
3,698
9,362
2,121
3,263
13, 483
28,052
10, 436
1,455
7,139
374
6,259
2,654
28, 317
206
9,201
1,029
119
1,041
295
169
5,554
1, 416
37
337
267
5,378
614
83
2,408
163
881
23, 919
3, 517
16, 765
2,598
5,614
127
16, 317
3,808
45, 229
579
2,823
2,237
1,889
4,084
2,332
433
2,386
261
241
552
290
129
689
262
174
467
499
790
1,305
655
442
468
988
1,077
1,929
6,054
1,439
1,571
1,379
755
2,113
412
416
761
443
221
604
281
670
2,796
5,908
10, 394
5, 366
6,787
5,446
2,199
6,333
___
29, 672
1,430
9,427
832
6,062
4,596
52, 019
..
2,894
26, 094
684
337
730
363
978
7,667
782
832
378
5,039
645
156
1,659
2,781
4,743
42, 021
5,255
8,439
1,996
7,380
53
3,358
2,129
23, 355
5,281
3,158
630
1,366
2,556
4,824
53
1,137
2,221
882
1,247
10, 539
12, 816
18, 484
1, 216
5,661
18
7,573
9,655
42, 597
14, 215
4,269
"727
489
3,624
2,027
18
4,414
3,159
9,129
526
32,109
10, 488
9,492
1,683
6,808
156
5,764
4,317
28, 220
2,581
3,195
3,212
286
218
214
233
1,208
19
9
1,826
1,113
3,558
79
232
1,014
1,397
3,031
138
184
355
1,073
2,857
18
14
5,990
7,167
13, 866
540
657
9,455
4,143
2,506
8,299
2,693
27,096
570
2,456
386
270
5,773
25
1,701
96
6
2, 315
332
206
268
184
1,516
515
1,507
535
393
5,349
57
372
157
12
2,095
1,499
6,242
1,442
865
17,048
_. __
8,776
930
2,655
5,934
1,597
19,892
Colorado._
_ .
Kansas
__
Nebraska_.
O k l a h o m a __
1,355
2,529
1,258
3,634
124
148
364
294
539
797
263
1,056
2,999
638
572
1,725
641
310
180
466
5 658
4,422
2,637
7,175
4,961
528
3,890
3,933
1,718
15, 586
371
235
1,583
476
2,171
125
35
27
218
150
98
186
138
362
725
2,289
190
417
259
1,583
307
1,062
305
67
50
232
148
1,195
26
1 076
709
4,032
1 806
7,317
646
New York.
N e w J e r s e y . _ __ __
New York. _ _ _ _ _
Pittsburgh... _ ..
Delaware
Pennsylvania. _ _ _
W e s t Virginia
Winston-Salem
Alabama _
D i s t r i c t of C o l u m b i a Florida
Georgia. _
M a r y l a n d _..
N o r t h C a r o l i n a . __ .
S o u t h Carolina
Virginia
Kentucky
_.
Ohio
Tennessee _ _
Indianapolis. _ _
Indiana _
...
M i c h i g a n __
Illinois _.__ _
Wisconsin
38,937
31, 883
+22.1
7,437
8,635
1,104
4,892
5,810
1,173
5,618
6,412
1,163
16, 283
19, 427
3,227
13,058
15, 819
3,006
+24.7
+22.8
+7.4
8,915
6,101
7,305
21,124
16, 480
+28.2
4,561
3,139
1,215
2,922
2,222
957
3,329
2,959
1,017
10,172
7,793
3,159
7,761
6.325
2,394
+31. 1
+23.2
+32.0
7,448
5, 767
6,244
19, 641
18,015
+9.0
3,647
3,717
84
2,871
2,801
95
2,797
3,349
98
9,713
9,678
250
7,166
10, 608
241
+35. 5
-8.8
+3.7
7,645
6,211
5,807
20, 069
14, 871
+35.0
4,087
2,314
1,244
3, 351
1,722
1,138
2,885
1,603
1,319
10, 703
5,936
3,430
7,284
4,136
3,451
+46.9
+43.5
-0.6
__ _ __
4,923
4,023
3,930
12, 902
9,364
+37.8
Federal
__ _
S t a t e m e m b e r . __
Nonmember
__ _ _
3,242
1,526
155
2, 656
1,192
175
2,714
1,103
113
8,330
4,097
475
6,396
,2, 592
376
+30.2
+58.1
+26.3
Los Angeles _ __ __ ___
15,140
11, 240
13,333
37,133
36, 777
+ 1.0
Los Angeles
Federal
. _. _
State member
Nonmember.
8,123
6,952
65
5,986
5,192
62
7,592
5,664
77
19, 287
17, 604
242
22, 350
14, 179
248
-13.7
+24.2
-2.4
Arizona
California
Nevada.
Federal
. _ __
S t a t e m e m b e r . . . . ._
N o n m e m b e r _. _ _.
L i t t l e Rock
Federal _
______
State member .
Nonmember _
__
Topeka.
F e d e r a l . . __
State m e m b e r . . .
Nonmember
Portland
May 1945
. _
Chicago._ .
13,193
Federal
_ __
State member
Nonmember
Total
1,307
596
5,720
342
784
195
__
C o n n e c t i c u t __ _
M a i n e __
M a s s a c h u s e t t s . _ _ __
N e w H a m p s h i r e . __
Rhode Island._.
V e r m o n t - . . __.
11, 875
.
Other
mortgagees
$20, 669 $80, 000 $13, 599 $114, 971 $52, 737 $433, 337
__
17,176
C h i c a g o , . __
Individuals
8,944
Boston
Cincinnati.
Cincinnati...
Savings Insur- B a n k s M u and
tual
and
ance
trust
savloan
comings
associa- panies companies b a n k s
tions
Federal H o m e Loan
B a n k District
and State
Des M o i n e s
.
Iowa... . _
Minnesota _ _ _
Missouri
.
North Dakota
._
South D a k o t a . . . . . . .
Little R o c k . . .
.
Arkansas__ _
...
Louisiana . . . ___ .
Mississippi
N e w Mexico _
Texas. _
Topeka
Portland...
Idaho . . . . .
M o n t a n a . ._
Oregon . . .
Utah
Washington
Wyoming..
...
._ __
127
156
556
54
502
15,487
2,811 20,171
33, 378 12,153
84, 000
336
15,062
89
568
2,811 19,465
138
1,515
85
31, 493 12,047
370
21
2,504
80,878
618
245
Table 9 . — M O R T G A G E RECORDINGS—Estimated volume of nonfarm mortgages recorded
[Dollar a m o u n t s are s h o w n in t h o u s a n d s ]
Savings a n d loan
associations
1944.
Insurance
companies
Total
Total
$1,563,678
$256,173
January-March.
March
April
May
June
July
August
September
October
November
December
Banks and trust
companies
Percent
Total
| Percent
$877, 762
61, 998
22. 660
19, 671
21, 794
22. 215
24, 707
22, 646
22, 432
20,985
20, 543
19,182
6.3
6.1
5.3
5.4
5.3
6.0
5.2
5.4
5.0
5.2
5.3
54,
17,
16,
20,
4.8
5.0
4.7
4.8
M u t u a l savings
banks
19.0
Total
Individuals
Percent
Total
$1,134,054
$165, 054
19.7
19.2
19.6
19.5
18.8
19.7
19.3
18.5
18.0
18.2
18.0
30, 280
11, 255
12, 338
14, 882
15, 536
15. 261
15, 920
15, 447
16,552
15,176
13, 662
3.1
3.1
3.4
3.7
3.7
3.7
3.7
3.7
3.9
3.9
3.8
18.6
18.4
18.9
18.5
36, 442
12,500
10, 343
13, 599
3.2
3.5
3.1
3.1
O t h e r mortgagees
Percent
Total
Percent
$613,908
24.6
All mortgagees
Total
$4, 610, 629
100.0
979, 833
368, 240
369, 268
405, 095
421, 631
411,136
530, 776
416,185
422, 839
393, 639
360, 227
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100. 0
100.0
100.0
1,126, 612
354, 578
338, 697
433, 337
100.0
100. 0
100. 0
100.0
23.9
24.2
24.2
23.6
23.5
23.9
24.2
25.1
26.0
26.3
26. 5
1945
January-March.
January
February
March
374, C17
111, 480
111,176
151,361
585
882
034
669
209, 042
65,109
63, 933
80, 000
Table 1 0 — S A V I N G S — S a l e s of war bonds 1
1944
March
April. _
May. .
June .
July
August
-_
September
October ._ . _ .
November
December
1945
Januarv _
March
Series F
Series E
._
$12,379,891
$772, 767
575, 714
605, 709
624, 253
1,349, 794
1, 686, 509
499, 357
590, 827
598, 570
806,817
1, 855,300
22, 933
19, 306
15, 287
115,119
101,082
17, 807
15,953
13,653
42, 680
124, 669
803,819
653,222
712,133
42,034
30,695
26, 487
1
U . S. T r e a s u r y W a r Savings Staff.
t h e U . S, T r e a s u r y .
Series G
27.3
28.0
27.5
26.5
145,
48,
43,
52,
107
407
963
737
12.9
13.7
13.0
12.2
Table 1 1 . — F H A — H o m e mortgages insured *
[ T h o u s a n d s of dollars]
Period
307, 419
99, 200
93, 248
114,971
[ P r e m i u m p a y i n g ; t h o u s a n d s of dollars]
Total
Redemptions
Title II
Title VI
(603)
Period
$2,891, 427 $16, 044, 085
$13,263,168
110, 347
113, 528
111,088
377, 284
337,459
85, 272
85, 286
82, 871
173,858
405, 880
709, 054
738, 543
750,628
1, 842,197
2,125,050
602,436
692,066
695,094
1,023,355
2,385, 849
261, 549
230, 614
271, 597
241, 278
220,145
272,125
277, 445
394, 846
376, 053
358, 572
228,327
164,073
150, 456
1, 074,180
847, 990
889, 076
333,443
317,083
437, 892
A c t u a l deposits m a d e to t h e credit of
New
1944: M a r c h
April
May
June
July
August
September
October-...
November.
December.
$250
130
81
81
82
90
79
40
54
31
1945: J a n u a r y . . .
February..
March
Existing
$12,
13,
18,
17,
18,
20,
19,
21,
21,
18,
Total
insured
a t end of
period
729
200
319
768
322
256
967
941
646
269
$41,620
36, 793
37, 739
34, 238
42, 322
48,166
42, 592
43,354
38, 053
36, 573
$5, 494,374
5, 544, 497
5, 600, 636
5, 652, 723
5, 713, 449
5, 781, 961
5, 844. 599
5, 909. 934
5, 969, 687
6, 024, 560
19, 006
14,085
16,480
38, 640
31,417
29,886
6, 082, 273
6,127, 802
6,174,205
1
Figures r e p r e s e n t gross i n s u r a n c e w ritten d u r i n g t h e period a n d do n o t t a k e
a c c o u n t of p r i n c i p a l r e p a y m e n t s on previously i n s u r e d loans.
Table 1 2 . — F H L B A N K S — L e n d i n g operations and principal assets and liabilities
[ T h o u s a n d s of dollars]
L e n d i n g operations,
M a r c h 1945
P r i n c i p a l assets, M a r c h
31, 1945
C a p i t a l a n d p r i n c i p a l liabilities,
M a r c h 31, 1945
Federal H o m e Loan B a n k
Advances
Little Rock
Topeka
Portland
.
_.__._-- -
- -
-
M a r c h 1945 ( C o m b i n e d t o t a l ) . _
F e b r u a r y 1945 __ _ ._ M a r c h 1944
-
Cash i
Governm e n t securities
Capital2
$1, 287
1,957
1,264
1,224
1,360
1,580
4,060
722
470
275
887
5,796
$6,822
4,446
7,028
4,395
3,118
5,758
10, 487
2,268
3,742
2,875
377
9,743
$1,654
1,193
4,508
1,428
3,679
2,223
3,284
1,043
786
1,279
418
3,245
$15, 039
48, 400
13, 229
13, 001
34, 795
18,127
20,947
20, 623
10,220
8,192
11,113
19, 691
$20, 243
27, 846
16,954
17, 959
26, 688
14, 833
23, 260
13, 288
12, 565
10, 891
8,663
16, 357
2,770
20, 882
61,059
24, 740
233,377
1,534
28,090
79,170
27, 437
191, 784
3,190
17,965
99, 378
30, 237
164, 706
$105
78
274
70
192
93
1,031
98
120
69
75
565
' Includes interbank deposits.
246
Repayments
Advances
outstanding
2
Debentures
$2,000
5,000
5,500
Member
deposits
Total assets
M a r c h 31,
1945 1
2,500
5,000
6,000
8,500
2,000
1,000
2,000
10, 500
$1,327
21, 289
2,393
921
12, 664
6,361
5,726
2,197
225
476
1,291
5,872
$23, 575
54,156
24,864
18,883
41,884
26, 212
35,011
24, 003
14, 796
12, 369
11,959
32, 757
209, 547
50, 000
60, 742
320, 469
208, 353
50, 000
41,824
300, 385
201, 684
64, 300
24, 207
294, 975
C a p i t a l stock, s u r p l u s a n d u n d i v i d e d profits.
Federal Home Loan Bank Review
Table 1 3 — I N S U R E D A S S O C I A T I O N S — P r o g r e s s of institutions insured by the FSLIC
[Dollar a m o u n t s w
shown n thousands]
Operations
Number
of associations
Period a n d class of association
ALL
N e t first
mortgages
held
Total
assets
Cash
Government
bond
holdings
Private
re purchasable
capital
Government
share
capital
Federal
Home
Loan
Bank
advances
New
mortgage
loans
N e w private
investments
Private
repurchases
Repurchase
ratio
INSURED
$52. 584
193, 452
$2, 612, 736
2, 983, 310
$185, 664
169,167
$167, 535
113,977
$56, 934
46, 705
$56, 701
91, 029
$47, 086
30, 219
83.0
33.2
241, 818
376,177
580, 087
581, 651
3,105, 080
3, 270, 834
3, 389,891
3, 573,896
120,138
119, 252
69, 920
69, 693
66, 970
78,155
118,153
100, 340
61,139
76, 899
87, 878
70, 973
83, 403
103, 939
83, 970
118,496
48, 955
33, 704
60,019
37, 885
58.7
32.4
71.5
32.0
356
705
609
739
50,868
50,832
37, 721
37, 701
90,103
118, 743
86, 840
123, 466
87,163
105, 245
101,658
83,408
104,494
127, 945
122,016
142, 291
56, 693
46, 560
56,102
45, 985
54.3
36.4
46.0
32.3
327,151 1, 262, 429
4, 538, 426
28, 781
54, 365
110, 287
138, 709
71,488
51.5
1,832,341
1,853,868
99, 247
164, 430
28, 775
117,339
1, 667, 983
1,882,051
150. 776
137, 208
123,748
84,135
36, 325
27, 381
37, 377
58,937
30,000
16, 530
80.3
28.0
300,638
426,079
523, 737
617, 431
1, 839, 302
1, 865, 991
1,896,312
1, 915, 771
156, 792
170,730
109,181
183, 038
146, 537
235, 524
369, 954
373,325
1, 953, 846
2, 060, 502
2,135, 010
2, 257, 002
96,109
96,109
55, 021
55, 021
46,
56,
87,
74,
820
553
648
780
37,850
46, 730
54,100
43, 647
54,824
68, 235
53,138
76, 677
30, 238
19, 586
37, 274
21, 569
55.2
28.7
70.1
28.1
1,466
1,465
1,464
1,464
2, 709, 897
2, 881, 276
2, 961, 860
3,168, 731
1,927,122
1,972,881
2, 024, 635
2, 058, 045
135, 664
48, 913
151,862
166,764
509.170
620, 016
652, 085
810, 013
2,
2,
2,
2,
39,
39,
29,
29,
957
948
562
647
63,892
84, 602
60, 877
90, 257
53,883
64,474
63, 489
51, 586
68, 276
83. 856
79,126
93, 400
36,182
25,969
35, 570
26,049
53.0
31.0
45 0
27.9
1,465
3, 237, 942
2, 081, 813
192, 9G4
832, 311
2, 895,120
22, 616
37,109
69, 430
91, 627
46, 574
50.8
897
931
1,197,522
1,351,703
941, 767
1, 017, 773
62, 554
92, 040
23,809
76,113
944, 753
1,101, 259
34,888
31, 959
43,787
29, 842
20, 609
19, 324
19, 324
32,092
17, 086
13, 689
88.4
42.7
948
960
969
981
1, 390. 280
1,454,920
1. 514,189
1, 565, 297
1, 029,108
1, 052, 586
1,075,099
1, 093, 254
103, 957
106, 055
77, 773
119,518
95, 281
140, 653
210,133
208, 326
1,151,234
1,210,332
1,254,881
1, 316, 894
24, 029
23,143
14, 899
14, 672
20,150
21, 602
30, 505
25, 560
23, 289
30.169
33, 778
27, 326
28, 579
35, 704
30,832
41,819
18,717
14,118
22, 745
16, 316
65 5
39.5
73.8
39.0
986
996
996
1,002
1, 617, 971
1, 702, 292
1, 752, 015
1,843, 931
1,108, 079
1,144, 704
1,177,724
1,201,774
92, 639
91,023
104,388
102, 937
279,
334,
345,
417,
684
918
898
438
1,364,314
1, 433, 920
1, 493, 044
1, 572, 812
10,911
10, 884
8,159
8,054
26,211
34,141
25, 963
33, 209
33, 280
40, 771
38.169
31, 822
36, 218
44, 089
42, 890
48,891
20, 511
20. 591
20, 532
19,936
56.6
46.7
47.9
40.8
1,000
1, 898, 961
1, 218, 788
134, 247
430,118
1,643,306
6,165
17, 256
40, 857
47,082
24, 914
52.9
2,358
2,398
$3, 335,101
3, 651, 598
$2. 774,108
2,871, 641
•___
2,415
2,428
2.440
2,447
3, 690, 918
3, 880, 999
4, 037, 926
4,182, 728
2, 868, 410
2, 918, 577
2,971,411
3, 009, 025
260,
276,
186,
302,
749
785
954
556
1944: M a r c h
. _
June
_
...
September._ .__ _ _ . . . .
December
. _ ._
2,452
2,461
2,460
2,466
4,
4,
4,
5,
327, 868
583, 568
713, 875
012, 662
3, 035, 201
3,117, 585
3, 202, 359
3, 259,819
228,
239,
256,
269,
303
788, 854
936
954, 934
250
997, 983
701 1, 227, 451
1945: M a r c h
2,465
5,136, 903
3, 300, 601
_•_
_
1,461
1,467
2,137, 579
2, 299, 895
_ _ __
1,467
1,468
1,471
1,466
2,
2,
2,
2,
1944: M a r c h
June
-_
September
December..
1945: M a r c h
1942: M a r c h
D e c e m b e r . - _.
1943: M a r c h
June
September
December...
__
$161,801
256, 470
3,
3,
4,
4,
710,
922,
092,
333,
FEDERAL
1942: M a r c h
December.
1943: M a r c h
June..
September
December
.
__
346,
488,
599,
760,
042
785
565
927
STATE
1942: M a r c h
December
1943: M a r c h
J u n e . . . . _.
September
December
...
.
1944: M a r c h
June
September
December..
_
_
. . . __
..
1945: M a r c h
Table 1 4 . — S A V I N G S — H e l d by institutions
Table 15 —FORECLOSURES—Estimated non-
[Thousands of dollars]
farm real-estate foreclosures, by Federal
E n d of period ,
1942: M a r c h
June
September... _
December
1943: M a r c h
June
September
December
1944: M a r c h
June
September
December
1945: M a r c h
Insured
savings a n d
loans l
$2,
2,
2,
2,
612,
736,
834,
983,
736
258
079
310
...
3,105,080
3, 270, 834
3, 389, 891
3, 573, 896
_..
3,
3,
4,
4,
710,
922,
092,
333,
356
705
609
739
4, 538, 426
Mutual
savings
banks 3
$10, 354, 533
10, 620, 958
Insured
commercial
banks 3
$14, 889, 560
15, 704, 991
11,104,707
16,897,124
11, 707, 025
18, 572, 406
12, 428,026
20, 543, 888
13, 331, 811
23, 362, 909
Postal
savings
$1, 305, 427
1, 315, 523
1, 357, 718
1, 417, 406
1,492,966
1, 577, 526
1, 683, 497
1, 787, 994
1, 905,864
2,034,136
2,197, 701
2, 342, 297
2, 513, 354
i Private ^purchasable capital as reported to the FHLB Administration.
Month's Work. All deposits.
FDIC. These figures have been revised to show total time deposits of individuals,
partnerships and corporations.
4
Balance on deposit to credit of depositors, including unclaimed accounts.
March total is unaudited.
2
3
May 1945
Home Loan Bank District
4
Foreclosures
Federal H o m e L o a n
Bank District
U N I T E D STATES
Boston
.
New York.
_.
Pittsburgh
Winston-Salem
Cincinnati
Indianapolis
Chicago-Des M o i n e s
Little R o c k
Topeka...
P o r t l a n d . . . . _____
Los Angeles__.
C u m u l a t i v e (3 m o n t h s )
Mar.
1945
Feb.
1945
Jan.
1945
Mar.
1944
Jan.Mar.
1945
Jan.Mar.
1944
1,431
1,340
1,153
1,693
3,924
4,766
17 7
137
322
296
139
168
37
45
62
84
99
10
32
170
283
218
111
130
120
60
53
46
62
12
75
130
333
179
124
117
66
34
44
23
65
9
29
175
454
294
160
156
29
109
92
59
63
11
91
437
938
693
374
415
223
139
159
153
226
31
136
745
1,207
777
464
458
90
260
256
120
162
28
199
41 3
22 3
-HK8
-19.4
9 4
+147. 8
-46.5
-37.9
+27.5
+39. 5
+ 10.7
-31.7
Percent
change
247
@FedFRASER