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ft FEDERAL HOME LOAN BANK Washinston, November 1942 CONTENTS FOR NOVEMBER FEDERAL HOME 1942 ARTICLES C O N V E R S I O N BY G O V E R N M E N T L E A S E — A N E W P H A S E OF W A R H O U S I N G . . . . Limitations on new construction: t h e m o t i v a t i n g factor—Need for housing—Conversion program—Eligibility of properties—Terms of lease— Financial details. N E W OPA R E G U L A T I O N S G O V E R N T H E S A L E O F R E N T E D P R O P E R T I E S 39 T h e over-all p i c t u r e — T r e n d s in privately financed construction—Volume of public construction well maintained—Geographic variations show wide divergence—Looking ahead. A N E W CHAPTER IN MORATORIA FOR MILITARY M E N BANK 43 Mortgage provisions a m e n d e d — A m e n d m e n t s regarding purchase contracts—Extension of redemption periods—Limitation on interest rates— Termination of leases—Tax a n d assessment moratoria broadened—Relief after period of military service. T H E C O N S U M E R W O R K S H I S W A Y O U T OF D E B T REVIEW 37 Move necessitated by evasive practices—Restrictions on evictions—Regulations governing the sale of rented properties—No bar to legitimate sales. A R E V I E W OF T H E B U I L D I N G S E A S O N LOAN Page 31 45 T h e increasing influence of instalment credit on the national economy— T h e t r e n d since 1929—Increasing r a t e of decline eviden fc—Home-mortgage trends more difficult to follow. MONTHLY SURVEY NATIONAL HOUSING AGENCY John B. Blandford, Jr., Administrator FEDERAL HOME LOAN BANK ADMINISTRATION John H. Fahey, Commissioner Highlights a n d s u m m a r y General business conditions Residential construction Building costs N e w mortgage-lending activity of savings a n d loan associations Mortgage recordings Foreclosures Federal H o m e Loan B a n k System Insured savings a n d loan associations 53 54 54 54 55 55 56 56 57 STATISTICAL TABLES FEDERAL HOME LOAN BANK SYSTEM FEDERAL SAVINGS AND LOAN ASSOCIATIONS FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION HOME OWNERS' LOAN CORPORATION UNITED STATES HOUSING CORPORATION New family dwelling units—Building costs—Savings a n d loan lending—Mortgage recordings—Total nonfarm foreclosures—FHA activity—Federal H o m e Loan Banks—Sales of U. S. war-savings bonds—Savings in selected financial institutions—Insured savings and loan associations 58-63 REPORTS T h e home front F r o m t h e m o n t h ' s news Proposed a m e n d m e n t to Rules a n d Regulations Honor roll of war-bond sales Directory of member, Federal, a n d insured institutions added during S e p t e m b e r October 30 38 42 48 57 SUBSCRIPTION P R I C E OF REVIEW. The REVIEW is the Federal Home Loan Bank Administration's medium of communication with member institutions of the Federal Home Loan Bank System and is the only official organ or periodical publication of the Administration. The REVIEW will be sent to all member institutions without charge. To others the annual subscription price, which covers the cost of paper and printing, is $1. Single copies will be sold at 10 cents. Outside of the United States, Canada, Mexico, and the insular possessions, subscription price is $1.60; single copies, 15 cents. Subscriptions should be sent to and copies ordered from Superintendent of Documents, Government Printing Office, Washington, D. C. A P P R O V E D BY T H E BUREAU OF T H E B U D G E T Rental ceilings soon to blanket all areas All areas in continental United States not previously subject to rent control have been designated as Defense Rental Areas as a result of the October 5 order of the Office of Price Administration. This is the necessary first step in the application of ceilings to remaining urban communities. Rentals prevailing on March 1, 1942 have been used as the base for future control measures. Areas designated in this preliminary order may not be made subject to Federal rent control until December 5, at the earliest, since a 60-day period is allowed in which city and State authorities may set up the mechanism for local control. ft ft ft ft # Recapture of unused priorities To assure the early construction of all privately financed dwelling units which have been scheduled and for which priority ratings are available, FH A and WPB have set up procedures for the immediate recapture and reallocation of priority certificates that are not used within a reasonable period. Re-allotment will be made either to other builders in the same community or to builders in other areas. The order applies whether the certificate has expired or still is in effect. It holds true, also, whether materials have been purchased or not and whether some, but not all, of such units have been constructed. ft ft ft ft ft Lanham A c t amendments signed by President Latest amendments to the Lanham Act, signed by the President on October 3, doubled the $600,000,000-total which had been authorized up to that time for public housing construction. These additional funds, appropriated in the Second Supplemental Defense Bill, will provide for approximately 200,000 new public-housing units. 30 As scheduled, Government construction under new authorizations will feature temporary "war apartments,' ' dormitory units, and family dwellings. Only 25,000 units are considered to be permanent structures, but many even of these are demountable and may be moved to other communities as need for housing develops after the end of the emergency. This brings to some 630,000 the total number of housing units authorized for public construction since the beginning of the emergency. At appropriation hearings late in September, NHA officials stated that construction on some 424,000 has been scheduled, with 311,000 completed or under construction. The remaining 113,000 are scheduled and are being placed under construction at a rapid rate. ft ft ft ft ft Approximately 500,000 new "living units" have been built for war workers since July 1940, according to John B. Blandford, Jr., NHA Administrator. Private industry provided approximately 70 percent of this $2-billion construction job. Public housing costing $525,000,000 accounted for 142,000 units, including 10,000 trailers used as stop-gap accommodations. ft ft ft ft ft Rent control passes first test of legality Holding that it is "not open to doubt" that rent control is necessary to the effective prosecution of the war effort, a special three-judge Federal court has unanimously upheld the constitutionality of the Emergency Price Control Act and Federal wartime regulation of housing rents. The decision, handed down in Wichita, Kansas, on October 23, closes the first major test of the validity of rent-control regulations. The case involved the attempted eviction of a tenant who refused to pay a rent higher than that set by the OPA for the Wichita area. The court ruled on a number of points, holding that: (1) the Act is definitive enough to provide the Administrator with a guide in fixing rents; (2) that landlords' rights are fully protected by provisions that allow protests and petitions and subsequent appeal; and (3) that restrictions placed by the Act on suits against OPA regulations are indispensable to the successful operation of wartime measures. This refers to the requirement that actions to stay or restrain OPA regulations can only be brought in the specially constituted Emergency Court of Appeals. ft ft ft ft ft Fuel oil rationing becomes effective Plans under which fuel oil for heating and hot water is to be rationed in 30 Eastern and Midwestern States have been announced by the Office of Price Administration. The mechanics of the plan include the following features: Four zones have been set up to allow for disparities in climate, and additional allowances of oil will be made to families with children under 4 years, aged persons, or invalids. Also, the heating season has been divided into five periods approximately equal in fuel needs and the season's ration of fuel supply will be issued for each period. Determination of the individual consumer's share of the available supply is calculated on the basis of: (1) square feet area of each room of necessary living and sleeping space; (2) capacity of storage facilities and amount of fuel oil on hand October 1 ; and (3) amount of oil used for heat and hot water from June 1, 1941 to May 31, 1942. This system of operation has been designed to provide consumers of heating oil an equality of comfort despite the necessary one-third curtailment in over-all consumption of the rationed oils. A further move to assist the public in preparing for rationing is the extension of the area covered by the recent amendment to the "Stop-Construction" order. This contains a provision to exempt from material restrictions any construction begun prior to January 1, 1943 which is necessary for conversion or substitution of heating equipment to permit the use of fuel other than oil. Federal Home Loan Bank Review CONVERSION BY GOVERNMENT LEASEA NEW PHASE OF WAR HOUSING The NHA's new Conversion Program will stress the use of existing structures in the war-housing effort. With both time and materials at a premium, NHA will push forward along three main lines to make more intense use of existing space. • I N an effort to provide additional housing facilities for war workers as quickly and economically as possible, the National Housing Agency announced, on October 14, a new program for Government assistance in the conversion of existing structures. Under the plan, the Government will lease, convert, and operate privately owned properties, renting to war-industry workers all additional units created. Costs of the conversion will be paid out of income received from additional units created. The owner will receive a reasonable rental for his property for the duration of the War, and at the end of the emergency will resume control of the property. The plan will be applied only in critical warindustry cities and areas. LIMITATIONS ON N E W CONSTRUCTION— THE MOTIVATING FACTOR Since severe shortages of labor and materials have placed stringent limitations on public and private construction of new housing facilities, the most logical means of providing additional accommodations in overcrowded war-industry areas is a more intense use of our present supply of dwellings. The remodeling of vacant houses, flats, business structures, or combined business-and-residential properties, or the subdividing of larger housesnow partially occupied is, therefore, the purpose of the Conversion Program. Still in the formative stage is another phase of the program for purchase by the Government of certain types of buildings. Warehouses, vacant apartments and flats, even summer hotels, in some instances, may be purchased by the Federal Public Housing Authority and converted to use as dormitory or apartment developments. N E E D FOR HOUSING I t is estimated by the N H A that between July 1942 and July 1943 movements of workers from nonNovember 1942 critical areas will bring some 1,600,000 additional war workers into areas already overcrowded. Even supposing that many families will contain more than one worker, between a million and a million-and-ahalf family and dormitory-type units must be found in areas where houses^ apartments, and even furnished rooms long have been at a premium. Of the 1,320,000 units which certainly must be found between July 1942 and July 1943, only about one-half can be expected to be supplied by new construction. The 650,000 remaining units must be provided by one of three methods, N H A points out, if we are to avoid the necessity of billeting and similar methods. First, the War Guests Program, through which thousands of workers already have found rooms in private homes, will be intensified. Even allowing for increased placement of workers in homes by the strengthening of War Housing Centers throughout the country, it is evident that this method alone cannot provide all or even most of the number of units needed. I t is, of course, in the critical areas that families have most frequently taken "war guests'' into their homes, and the supply of rooms is at its lowest point in these particular communities. Second, private and institutional owners of suitable properties will be urged to use private funds to remodel various types of structures into housing suitable for war workers. I t is to be hoped that the entrance of the Government into reconditioning operations will not discourage private initiative in this field. The need for additional accommodations is sufficient to make an "all-out 7 ' effort along every possible line imperative. CONVERSION PROGRAM The Conversion Program provides a third approach to the problem. Initially, the conversion plan will apply only to certain specified areas (see accompanying list) in which the housing situation is serious 31 enough to warrant immediate Government action. Undoubtedly, other cities will be included in the program as the stock of available apartments and houses is exhausted. I t is hoped that in areas not presently covered by the lease program, private lenders and private owners of properties will intensify the remodeling of home and business properties. If private conversions proceed at a rate rapid enough to keep pace with local demands for family units, and the "war guest" program continues to absorb a considerable number of the applications for single rooms, Government lease of properties need not become a factor in the local market. ELIGIBILITY OF PROPERTIES I n the areas now affected, the Government will offer to lease certain types of properties—the general criterion of suitability being that the structure is capable of conversion for use by two or more families. In registering their properties at War Housing Centers, owners must show that the conversion will be a relatively simple operation involving the use of small quantities of essential materials. I t must be shown, also, that the conversion will not violate existing local zoning ordinances. Perhaps most important of all in establishing suitability is the location of the property. To be eligible for conversion under the program, dwelling AREAS APPROVED FOR LEASE PROGRAM Arkansas: Fort Smith, Little Rock, Pine Bluff California: Alameda, Bellflower Berkeley, I n g l e w o o d , Long Beach, Oakland, Richmond, San Francisco, Southeast cities Connecticut: Bridgeport, Hartford, New Britain Delaware: Wilmington District of Columbia: Washington Florida: Jacksonville Georgia: Savannah Illinois: Chicago Indiana: Evansville, Indianapolis, South Bend Kansas: Wichita Maine: Portland Maryland: Baltimore Massachusetts: Springfield Michigan: Detroit, Muskegon New Hampshire: Portsmouth New Jersey: Camden, Newark, New Brunswick, Paterson, Red Bank 32 New York: Buffalo, Elmira, Syracuse, Watertown North Carolina: Wilmington Ohio: Akron, Canton, Cleveland, Dayton, Marion, Massillon, Warren Oklahoma: Oklahoma City, Tulsa Oregon: Portland Pennsylvania: Allentown, Beaver, Bethlehem, Erie, New Castle, Philadelphia, Pittsburgh, Williamsport South Carolina: Charleston Texas: Amarillo, Corpus Christi, Fort Worth, Houston, Waco Utah: Ogden Virginia: Newport News, Norfolk, Portsmouth Washington: Seattle, Spokane, Tacoma, Bremerton, Vancouver Wisconsin: Madison, Merrimac, Milwaukee units must be easily accessible to employment centers. When not located within walking distance of industrial plants, etc., they must be located in neighborhoods serviced by rapid and cheap public transportation facilities. Neither the type of the property nor the occupancy situation need exclude it from the program. Naturally, vacant mansions in older residential areas, near the center of the city, are particularly desirable. However, an old house, occupied by only one family and capable of being remodeled into two, three, or four units—one of which may be retained by the present owner or occupant—is equally acceptable. Old residences already converted into several large suites, for which only partial occupancy can be obtained, would be acceptable for conversion into multiple small-family units. Structures used for combined business-and-residential purposes can also be taken. A qualification must be made where the property is not serviced by public utilities. Since the purpose of the program is, in a major sense, to preserve existing stocks of critical materials, a property requiring complete installations of plumbing and heating equipment and wiring probably would not be acceptable. PROCEDURE FOR REGISTERING P R O P E R T I E S In every sizable community in the country, N H A has set up a War Housing Center or Homes Registration Office as a central clearing house for local warhousing information—registry of rooms by persons desiring "war guests," listings of apartments, and the like. Recently expanded, these Centers now will be available for the registry of homes and apartments involved in the lease-conversion program. Registry of a property at the War Housing Center does not automatically assure its acceptance. Before a lease can be closed, the property will be examined by a local representative of HOLC. If inspection of the property shows it to be suitable for use—that is, if the conversion to two or more units would be a simple matter requiring relatively little time and material—the property will be accepted and plans and specifications for the change prepared. These plans must be approved by the home owner before the lease is signed. I t is of particular interest to lending institutions and property owners to note the local character of the program. The Home Owners' Loan Corporation will handle most of the detail work in the reconditioning Federal Home Loan Bank Review Typical of properties that may be tendered to the Government for lease are the eight residential, business-and-residential, and "borderline" structures shown above. They range in size from 10 to 75 rooms, in construction from brownstone to frame, and from "fine structural condition" to "only fair shape." While housing shortages of varying intensity existed in the four Ohio cities where HOLC representatives photographed these and dozens of similar properties last June, almost all were vacant and some had been empty for as long as 10 to 15 years. Because of their location and because of the small amounts of critical materials needed to convert them, each could be a definite factor in solving local housing shortages. The following comment on the house shown in the upper left-hand corner of the page applies with considerable accuracy to all properties photographed: "Conveniently close-in, and located on main thoroughfare. Enormous old brick home, 20 main rooms, 5 baths. Also garage with second-floor apartment. This location would be popular with small-suite tenants . . . and there are a number of such houses available in this and comparable districts." In the last few years, properties have been put to varying uses: One was used for some years as a home for the aged, another was a family hotel. Only one of those shown above is occupied by a single family at present. November 1942 33 Questions and Answers 1. What type of house will the Government lease? Any property t h a t can be converted a t reasonable cost t o a c c o m m o d a t e one or more additional families of war workers. 2. Where must such property be located? Within walking or convenient t r a n s p o r t a t i o n distance from war plants, a n d in districts where zoning laws permit conversion. 3. If an owner is willing to lease his house, what does he do? H e fills out an application blank furnished b y t h e War Housing Center. 4. What will the Government pay the owner? A fair a n d business-like r e t u r n based on t h e use t o which t h e property is p u t . 5. When does the owner's income start? As soon as t h e lease is signed a n d t h e Governm e n t assumes possession of t h e property. 6. Who will pay taxes and insurance while the property is leased to the Government? T h e National Housing Agency. 7. / / a house is mortgaged, who keeps up payments? T h e N H A will m a k e normal debt p a y m e n t s . 8. / / taxes and mortgage payments on a property are delinquent, will the Government pay them if it leases the property? Yes—if t h e delinquencies are not so large t h a t t h e transaction will not be warranted. 9. If taxes, insurance, and water rates are increased during the life of the lease, will these increases be charged to the owner? Increases in charges occurring after signing t h e lease will not be charged back t o t h e owner. 10. Will the Government deal with properties owned by municipalities, banks, insurance companies, and others, which may be vacant? Yes, if suitably located a n d susceptible to conversion. 11. 7s the owner required to obtain the mortgagee's consent to the reconditioning? Yes. Evidence of this m u s t be presented a t t h e t i m e t h e lease is executed. 12. Who will live in the house after it is leased? W a r workers with their families, designated as eligible b y t h e local W a r Housing Center. 13. What rents will be charged by the Government to the tenants after the house is converted? S t a n d a r d rates for comparable propertied. 14. Will the Government lease a property if the surplus rooms are now rented to war workers? No—because t h e purpose of t h e program is to provide additional units for war workers. 15. Will the Government at its expense restore the property to its original condition upon termination of the lease? N o , improvements will be deemed p e r m a n e n t . 34 program and will undertake, through its local realestate contacts, the management and maintenance of properties leased and reconditioned. T E E M S OF THE L E A S E The program provides for Government use of privately owned properties under the terms of a lease running for a period of 7 years, or until a reasonable period (not to exceed 2 years) after the end of the emergency. The Government will contract for the necessary repairs and alterations and will advance the funds for carrying out the work. The owner will receive a definite rental as stated in the terms of the lease. Determination of the rent paid to the owner of any property will be based upon an application of the following formula: E s t i m a t e d t o t a l a n n u a l rentals to be charged all occupants $xxxx Less: E s t i m a t e d a n n u a l operating costs under Government operation xxxx Less: Carrying charges paid b y t h e Government, such as taxes, insurance, mortgage p a y m e n t s , etc Less: One-seventh of t h e estimated cost of t h e con-xxxx version a n d such back taxes a n d debts as are assumed b y t h e G o v e r n m e n t xxxx Annual r e n t to be paid to t h e owner xxxx The estimated rental to be received from the property after conversion is based on standard rates for comparable property in the area, and upon full occupancy. Operating costs including such expenses as utilities, janitor service, and supplies, as well as necessary repairs, maintenance, and replacements, will be deducted from the estimated rental. No deduction will be made for either management expenses or collection losses and vacancies. Under the lease, the Government agrees to pay carrying charges such as taxes and assessments, insurance premiums, and water rates. I t will also meet interest and principal payments which become due on mortgages. These sums will also be deducted from the estimated rentals as shown above. I n addition, one-seventh of the estimated cost of conversion will be amortized each year and deducted from the rentals. By subtracting the operating expenses from the estimated rentals, i t is possible to arrive at the annual rental income which the owner of the property will receive in cash from the Government. The lease provides that all matters relating to selection of tenants will be under the sole supervision of the National Housing Agency's management organization. The same restrictions will govern in Federal Home Loan Bank Review the case of property under Federal control as would be the case with privately owned property. I t has been stated above that the owner of the property may occupy one of the units in the converted structure. Rental for the unit occupied by him would be deducted from the money he is entitled to receive from the Government. Should he desire to do so, and should it prove feasible, the owner may become the manager of the property. In this case, the owner will be reimbursed for any managerial work which he undertakes. Insofar as possible, repairs will be planned so that the owner may occupy part of his home during the progress of the work. For the period of the lease, therefore, the Government will assume full responsibility for the property. At the end of that time, the building and its improvements will be returned to the owner in good condition, with structural changes intact, and with necessary painting and redecorating. ,„, ,(«> "HOME FOtKS' ^zaU and ° u r * si* dwelling units. cwf US FOR oVnOTN FORMS L ^DLORDS: FREE COPV i l l Wtt? 22 Elm s,rec * FINANCIAL D E T A I L S Funds for the conversion program come from the Lanham Act, which does not provide for a Government subsidy of housing. While the Government will advance all costs of conversion, it should receive a full principal return on its investment. Conversion costs will be amortized over the life of the lease (see Terms of Lease). I t is not intended that the Government will make a profit on the venture; nor will the property owner receive an improved property without cost to himself. The plan has been so worked out that the property owner, the Government, and the war-industry worker should benefit. From the standpoint of the property owner, the important fact is that, for the duration of the lease, he will receive a definite rental. No matter what the actual income from the converted structure may be, the owner will be paid the rent stipulated in his contract with the NHA. Should expenses of operation increase (assessments, water rent, and the like), the Government will assume the loss. Equally, if the conversion cost is greater than, anticipated, the Government and not the property owner will bear the cost. Should management costs and other items fall below original estimates, however, the monthly payment to the owner would not be increased. This balance would be applied by the Government to an equalization of expenses on properties on which a loss was experienced. November 1942 Community Service • W I T H rent control just around the corner for most cities, association management may be interested in following the example of the Worcester Co-Operative Federal Savings and Loan Association of Worcester, Massachusetts, which has offered its services to landlords as an information center on rent-control registration. A folder, "Facts About Rent Control in Worcester and Worcester County," has been published by the association. Copies of the folder were distributed in the main lobby, in the Home Service Department, and placed in every mortgage passbook as payments were made at windows. A series of advertisements was published in which landlords were urged to come to the institution to obtain copies of the folder and of official forms needed for filing information with area rent headquarters. Advertising also stressed the fact that employees of the institution were able to assist in preparing forms for submission. " T h e response to our offers of assistance was little short of remarkable," the President of this institution stated. " I t was not limited to our own membership but people who were total strangers came to us for the desired forms and information. . . . " Associations desiring information to prepare folders and other material may write to their local Rent Control headquarters or the Rent Division, Office of Price Administration, Washington, D. C. 35 RENT CONTROL AREAS NOVEMBER I, 1942 PORTO RICO ALASKA MAXIMUM RENT REGULATIONS IN EFFECT AS OF NOV. I, 1942 DESIGNATED AREAS-NOT SUBJECT TO CONTROL 8. o o o Q < The map above shows graphically the status of Federal rent control on November 1, 1942. Black areas indicate cities and counties where rent ceilings were actually in effect on that date. These 303 areas include every sizable city in the country except New York and Washington, and contain some 75,000,000 people. Shaded areas, which include New York City, indicate 93 cities and counties which already had been designated as defense-rental areas and to which maximum rent regulations may be applied at any time without further notice. Most of these areas are under study at the present time and the Office of Price Administration has indicated that "final Federal action will be taken as quickly as administratively feasible." It will be noted that Washington, D. C , has been left blank. Rent control in Washington was effected by an Act of Congress applying only to the District of Columbia. On October 5, the Office of Price Administration issued orders designating 45 additional defense-rental areas, including every portion of the United States not previously designated. Since a 60-day period must elapse between the designation of such areas and the issuance of rent control regulations, areas not shaded or shown in black will not be subject to rent control until December 5 at the earliest. Even then, OPA has indicated, rent regulations will be issued on an individual area basis as need arises. NEW OPA REGULATIONS GOVERN THE SALE OF RENTED PROPERTIES Evasion of rent-control regulations through eviction, or threat of eviction, resulting from the sale of rental properties has brought on new and rigid controls to assure the present occupants of more secure tenancy. • ON October 19, the Office of Price Administration announced important revisions, effective the following day, in its maximum rent regulations which will greatly affect residential real estate now rented in all areas where Government rent-control measures are in operation. Inasmuch as all urban and rural areas in the United States not already under supervision will become subject to control early next month, the scope of these new amendments may be nationwide. There are two requirements which must now be generally met before a purchaser can obtain the right to occupy a property which had been rented at the time of the sale: (1) an aggregate of payments totaling 33% percent of the purchase price must be made; and (2) a period of 3 months must pass after the issuance of a certificate by the Area Rent Director before the present tenant can be forced to vacate. M O V E NECESSITATED BY EVASIVE PRACTICES In issuing these new regulations, the Office of Price Administration pointed out that effective control of evictions is the keystone of rent control. Since the introduction of rent control, the movement onto the sales market of housing accommodations previously rented has been accelerated. Evictions resulting from such sales, in turn, cause the eviction of other occupants, as tenants who have been dispossessed are compelled to buy in order to find shelter. "Many so-called sales are purely evasive and by form and intent are merely a disguise for rental agreements. Frequently the downpayments required in such sales are very small and the rate of instalment payment is such that years will be required for the accumulation of any substantial equity even though the payments exceed the maximum rent. The onerous terms demanded by the sellers in such transactions reflect their willingness to exploit a national emergency for their own profit." The 3-month period, which must elapse before eviction, removes the imminent threat of being November 1942 491408—42 forced out and gives a tenant time to look for other quarters if the house he lives in is sold. RESTRICTIONS ON EVICTIONS The new amendments change the regulations regarding evictions in several ways: Formerly, evictions were permissible, without application to the Area Rent Director, by an owner who wanted to recover possession for use by "himself, his family, or dependents." Action on this basis is now limited to recovery for the use of the owner alone; and further, when an eviction is permitted on this ground, the owner must report to the Area Rent Office if he rents the house within 6 months after the eviction. The OPA will now have knowledge of every eviction action started regardless of the grounds. This is in contrast to the prior procedure under which it was not necessary to report actions based on non-payment of the legal rent. A copy of any notice to a tenant to vacate or surrender possession of housing accommodations must be given to the Area Rent Office; and written notices of removal or eviction actions must be given to both the tenant and the Area Rent Office at least 10 days prior to the time specified for surrender of possession or for the commencement of an action to remove or evict a tenant. REGULATIONS GOVERNING THE SALE OF R E N T E D PROPERTIES According to the text of the recent changes, the removal or eviction of a tenant to permit occupancy by someone buying the property after October 20, 1942 would be inconsistent with the purposes of the rent-control legislation. Such action would be likely to result in circumvention or evasion unless (1) the payment of principal by the purchaser, excluding any payments made from borrowed funds, aggregate one-third or more of the purchase price; and (2) a period of 3 months has elapsed after the issuance of an eviction certificate by the Administrator. (Continued on p. 47) 37 2 « « « FROM THE MONTH'S NEWS ALL-OUT APPROACH: "Some day this W a r will be won. Surely one of t h e principal tasks of post-war America will be t h e rebuilding of o u r cities. Housing will play a major p a r t in t h a t effort— physical a n d economic. We shall face t h a t t a s k a bit wiser because of technological advantages born of pressure of compulsion working upon o u r national store of ingenuity. We shall face it with sights raised and a new concept of a total, all-out approach t o housing."^ p John B. Blandford, Jr., before Metropolitan Chicago Horn? Builders Association. HIDING: "Associations could do t h e m selves n o worse service t h a n t o go into hiding, t h a n to give t h e impression to t h e general public t h a t they are n o t in t h e thrift business for t h e duration except in a small way, and only t o t h e extent t h a t it suits their immediate selfish requirements." Ralph H. Cake, Savings and Loans, August 1942. POST-WAR PROSPECT: " . . . I t is safe to say that—if a t t h e right t e r m s a n d prices a n d if in t h e right places—the country could absorb anywhere from 900,000 t o 1,200,000 new dwellings a year, for t h e decade after war, a n d still be in need of a very large volume of repair during t h e same period." The Role of The HouleTuilding Industry, National Resources Planning Board, July 1942. » » » Looking ahead " . . . While surpluses are piling up in the treasuries of most of our associations it would be a wise and far-sighted policy for our associations and leagues to devise plans for concerted action to meet the situation that will confront us when the present world crisis is over. We have been the leading home-building agency in this country for over a century and we must prepare to hold that leadership." Henry S. Rosenthal, American Savings and Loan News, Sept. 1942. Mortgage prepayments " I t is one thing for the borrower to obtain a long-term, high percentage loan as a matter of convenience, but if he is able to make greater monthly payments than his contract calls for, he is placing his mortgage in better condition by obtaining a better and more rapid equity, which will serve as protection to him in the future when there may be lean days; also, he is cutting his over-all interest payments and, what is more, extra payments from mortgagors result in that much less money being available for the purchase of other merchandise, thereby accomplishing a small part in preventing the bidding up of prices and inducing shortages, all of which adds its bit to inflation/' Ralph H . Richards, President, Federal Home Loan Bank of Pittsburgh, Third District Quarterly, 19$. PROGRESS OF CREOIT UNIONS, 1936-1941 MEMBERSHIP NUMBER ASSOCIATIONS LOANS MADE *m.w>»s OF DOLLARS EDUCATION: "If a customer buys a n automobile h e expects t h a t t h e c a r will depreciate a n d eventually he will have t o dispose of it a t a small fraction of t h e original cost. I t appears t h a t a great deal of public education . . . is in order t o bring about t h e proper a t t i t u d e t o w a r d t h e liquidation of real e s t a t e . " Joseph P . Day, Architectural Forum, October 1942. BULWARK: " K e p t strong a n d well managed, a good savings a n d loan instit u t i o n is a bulwark of financial strength in a n y local community. I t frees t h e area it serves from dependency upon t h e will of big city financial m a g n a t e s for its local home-building capital, just a s t h e local independent unit b a n k frees i t s merchants and businesses, etc., from need to go h a t in h a n d t o some big city for credit." American Banker, Oct. 14,1942. 38 I 936 '37 "38 '39 "40 '41 1936'37 '38 *39 '40 Sourcei- U, $. Department of Labor 1936 '37 '38 "39 '40 *4i DIVl3fO» OF OPERATING STATISTICS FEDERAL HOME LOAN SANK ADMINISTRATION The above chart shows the uninterrupted growth of credit unions since 1936, with Federals continuing to show more rapid expansion than State-chartered institutions. In the 6 years shown, the number has nearly doubled, membership and amount of loans made have more than tripled. Total assets at the end of 1941 were $322,515,073, nearly four times as great as in 1936. Monthly Labor Review, September 1942. Federal Home Loan Bank Review A REVIEW OF THE BUILDING SEASON With building permit tabulations now available for September, the story of this year's residential construction is almost complete. Analysis of data for the first 9 months of 1941 and 1942 reveals the drastic effect of Government regulations on the business of building homes. • AT the outset of this year, prospects for residential construction were not too good, b u t at least for the first quarter the volume of building permits held equal with the corresponding 1941 period. Despite priority restrictions, accumulated inventories were supporting a substantial amount of construction in most areas. And then the axe fell. On April 9 the "Stop-Construction" order of the War Production Board marked the end of any semblance of "business as usual" still remaining. From that point, comparisons of this year's activity with previous year totals became progressively worse: Construction of family dwelling units in all urban areas of the United States during the second quarter was 41 percent below the same 3-month period in 1941; and the margin grew even wider in the third quarter, when the permits issued fell 62 percent below last year's volume. What areas have been hit the hardest? What has been the relation of public construction to private construction? The trend in permit valuations? These and other questions are logical subjects for investigation and are the basis for the following detailed analysis of the building-permit records compiled by the Bureau of Labor Statistics during the first 9 months of this year. THE OVER-ALL PICTURE Residential construction—both publicly and privately financed—in all urban areas from January through September of this year is estimated at approximately 218,000 units, compared with almost 359,000 units during the same period last year— a net decline of almost 40 percent. February was the only reporting period to make a favorable showing against the corresponding 1941 month. However, one encouraging factor is evident. After the initial impact of the "Stop-Construction" order which dropped the volume of building permits issued from almost 36,000 units in April to just over 15,000 in July, the descent seems to have been halted, at least temporarily, near that level. Reports for both August and September have been slightly above this low mark, although it is likely that some November 1942 THE DECLINE IN RESIDENTIAL CONSTRUCTION PERMITS ISSUED IN FIRST THREE QUARTERS OF 1941 AND 1942 ALL RESIDENTIAL CONSTRUCTION PRIVATE ONE-FAMILY DWELLINGS THOUSANDS OF PERMITS THOUSANDS OF PERMITS 140 r- I"*""1 1941 ' im i 1942 ti rm JUN. SEP i JUN. SEP Source: Bureau of Labor Statistics This bar chart demonstrates the widening gap between 1941 and 1942 construction and highlights the effect of Government restrictions on new construction Building during the first quarter was able to hold its own with 1941 volume, but from that point on, the picture grows progressively worse. further declines may be evident in line with the normal seasonal effects of Winter weather. Limitation on the total sales price of residential properties, effected through priority controls, has been the most important factor in a substantial reduction in the average permit valuation per dwelling unit. The average building permit for all residential dwellings dropped nearly $400 from 1941 levels and amounted to less than $3,300 for the January-September period. (Estimated costs included in building-permit data tend to understate total construction costs by 15 to 20 percent.) The lower average permit valuation has added significance in view of the substantial increases in building costs during the past year. T R E N D S IN PRIVATELY FINANCED CONSTRUCTION Privately financed residential construction of all types in the first three quarters of this year was 46 percent under the 1941 volume, dropping from 298,000 units to just under 162,000 units. The single-family house has shown the greatest decline for any of the various classifications of 39 THE DECLINE IN PRIVATE RESIDENTIAL CONSTRUCTION . NUMBER OF PERMITS FOR ONE FAMILY DWELLINGS COMPARISON OF FIRST NINE MONTHS OF 1942 AND 1941 as-^. II J<? ^a /Z^ ^^^^r oX. mWMMfflJii y^^^^^w////0^ JJ^ICH ^ |||§§§§f I vMzMtMz^ / ^^^^^^^^^^J^ .- ". 1 ^ ^ ^ ^ ^ ^ ^ ^ [ VMOjg [ 'KANS ' ^^^^^^^^^^ Mffil^'*-^"^^^ ^^^^^^^S. H , ^c^^^^^^^^^^^A ^^^^^^^^^^^f plflfllflfllllllfflllflll 1 ; T^^S^TS^ . , ' AS ^"^^SL TVO ^^B 111111111 s-S II I^J^^/^^ L ' JfiHPk ^#S II BD icl l * "-" \ARK i^^^^^^^^^^^^^l '* /MISS^P ^^^^^^^^^m J LA M$lfl22sii§l^ F zi^^^^k | | ^ ^ j ' J +75% to +100% 0%to-25% -25% to - 50% H H i -50% to- 75% B ^m^mm -75% to-100% \ II ^^//M^^^^^^^9 ~ y ^-^^^^9^^^^^^ ^^^8 - i ^fP 0KLA W^^^^^^^^^^^ T E X ^^^^^^^^^^^I • '" II | ^ _ II s-i^-^3 \ .S^^ \ Jf ^SJr , , u e t 4. 4. Source: Bureau of Labor Statistics "*""" DIVISION OF OPERATING STATISTICS II FEDERAL HOME LOAN BANK ADMINISTRATION The above map shows clearly the geographic variations in the decline of private residential construction during the first three quarters of this year. Only one State (Nevada) has had a higher rate of building than in the same period of 1941. Data are based on building permits issued in all urban areas. More States are found in the group with cuts of from 50 to 75 percent than in any other range, and there is a fair degree of concentration for these States in the midwestern and southeastern sections of the country. private building, and a comparison by quarters indicates the cumulative effect of restrictions on this type of construction: T h e first-quarter volume of permits was 7 percent under the same 1941 period; second-quarter totals plummeted to 59 percent of last year's volume; and in the period just completed, 1942 construction was 68 percent less than a year previous. Permits for less than half as many homes of the 1 -family type were taken out in the January-September period than in the same months of last year: 117,000 in 1942 as against 238,000 units in 1941. The decline in the average cost per unit was also greater than for all construction. Average valuation of permits issued for 1-family units this year is $3,460 compared with $4,000 in the corresponding period of 1941. 40 In contrast to the situation in recent years when 1-family dwellings have made up approximately 80 percent of all privately financed construction, thus far in 1942 these units have accounted for only 73 percent of the total. This, of course, indicates that the 2-family and multi-family classifications have not suffered as drastic reductions. Each of these two classes recorded losses of about 30 percent in volume. Average permit valuation of multi-family units was down more than $100, while that for the 2-family classification had risen $200. VOLUME OF PUBLIC CONSTRUCTION WELL MAINTAINED Publicly financed housing projects now exclusively for the purpose of housing war workers have played a more important role in the total units provided so Federal Home Loan Bank Review far this year than they did in 1941. Permits for nearly 57,000 units in Government projects were issued in the 9-month period and, although this is a 6-percent decline from last year's volume, they accounted for more than one-fourth of all new construction as compared with a little more than one-sixth of the 1941 total for the same period. Trailers, dormitories, and other temporary facilities are not included in these figures. More than two-thirds of the permits for public construction were concentrated in February, April, and M a y ; but there has been a noticeable drop in the volume of permits for this type of construction since June. The increasing emphasis on temporary facilities in all phases of the war-housing program, as well as on the use of existing structures wherever possible, are two important factors which are now operating to reduce the volume of Governrnentfinanced permanent structures. GEOGRAPHIC VARIATIONS SHOW W I D E DIVERGENCE Although the decline in home building during the first 9 months of this year was felt by every State except Nevada, there was considerable variation in the experience of the various States. The map presented on page 40 indicates State by State the reduction in the building of privately financed single-family homes. Delaware registered the greatest drop (91 percent), but there were six other States which indicated declines of as much as 75 percent from their 1941 volumes. Connecticut and Alabama showed the smallest decreases (12 and 21 percent, respectively). Almost half of the States were in the group with drops ranging from 50 to 75 percent. This map is designed to show the relative importance of public and private construction of new housing facilities. There are 14 States which had no public projects during the first 9 months of this year, according to building-permit data. In 13 States, less than one-fourth of the total residential dwelling units provided in this same period were financed by public monies. In Vermont and Delaware, however, permits were issued for at least three publicly financed units for every one financed by private funds, although of course the total volume in these areas was relatively small. Data are based on building permits issued in all urban areas. THE RELATIVE IMPORTANCE OF PUBLIC CONSTRUCTION PUBLIC CONSTRUCTION AS A PERCENT OF ALL RESIDENTIAL CONSTRUCTION, FIRST NINE MONTHS OF 1942 Source: Bureau of Labor Statistics November 1942 41 The second map, shown on page 41, indicates the relationship of Government-financed housing projects to the total residential construction in each State so far this year. In Delaware and Vermont public housing accounted for more than three-fourths of the total building, and in four more States at least half of all units built were financed by the Government. There were 17 States in which public construction ranged from 25 to 50 percent of the total; and 12 where less than one-fourth was of this type. Fourteen States, of which 12 were located between the Mississippi Kiver and the Pacific Coast regions, reported no public projects at all in urban areas. LOOKING AHEAD With nonessential construction at a standstill, the best clue to future home-building activity lies in the war-housing program for the coming months. In recent hearings on amendments to the Lanham Act, the National Housing Agency outlined in detail the present plans for the period from July 1, 1942 through the end of next June. (See table.) I n these 12 months, 270,000 privately financed family dwellings are expected to be furnished through new construction. If this goal is to be met, a volume of new building at least equal to that in recent months must be maintained. An additional 60,000 family units is scheduled to be made available by private enterprise through the use of existing structures. Public construction during the same 12-month period is expected to produce 205,000 regular family dwelling units. As already pointed out, however, the emphasis in these projects is on temporary rather than permanent structures. Of 85,000 family units War Housing Program July 1, 1942-June 30, 1943 Type of construction Total housing need Private enterprise (use of existing structures) Private construction already programmed -_ Private construction to be programmed Public construction already programmed Public construction requiring additional authorization— -- Accommo- Accommo- Accommodations for dations for dations for 2-person larger single families families persons 550,000 430,000 2 235,000 3 535,000 11,320,000 160,000 60,000 650,000 20,000 100,000 Total, all types 75,000 70,000 70,000 4 200,000 200,000 120,000 140,000 85,000 260,000 i Only 1,320,000 units are needed for 1,600,000 in-migrant war workers, since some units house more than one worker. 2 This takes care of 115,000 less than the total number of in-migrating 2-person families. »This takes care of the balance of the 115,000 two-person families, in addition to the 420,000 in-migrating larger families. * To be programmed does not mean an additional quota granted by WPB but refers to the quota established for private housing in March 1942 to cover the ensuing 6 months. 42 included in the program under the most recent Lanham Act appropriations, for example, 60,000 are classed as temporary units, and only 25,000 will be in the permanent classification. Proposed Amendment to Rules and Regulations FHLBA Bulletin No. 12 P R O P O S E D AMENDMENT TO T H E RULES AND REGULA- TIONS FOR THE FEDERAL SAVINGS AND LOAN SYS- TEM RELATING TO OWNERSHIP OF SHARE ACCOUNTS ACCEPTABLE AS SECURITY FOR LOANS MADE BY FEDERAL ASSOCIATIONS. The purpose of this amendment, which was proposed on October 19, 1942, is to permit Federal associations, providing they have no applications for repurchase which have been on file more than 30 days and not reached for payment, to make loans upon the security of their share accounts even though such shares may be owned by a member other than the borrower. Further conditions set up for such transactions would be that the association obtain a lien upon, or pledge of, the share account offered as security, with no loan to exceed 90 percent of the repurchase value of the account. At the present time, Federal associations operating under Charter K cannot make loans upon their share accounts when the obligor on the loan is not also the owner of the account. Those associations still operating under Charter E, however, have no such restriction. If this proposed amendment is adopted, a new subsection (20) would be added to Section 203: "203.20 Other loans and investments. A Federal association having a Charter K may invest its funds in loans to its members on the security of share accounts of the association owned by a member other than the borrower. To secure such loans the association shall obtain a lien upon, or a pledge of, the share account. No such loan shall exceed 90 percent of the repurchase value of the share account securing such loan. No such loan shall Ide made when the association has applications for repurchase which have been on file more than 30 days and not reached for payment." Such change is deemed to be major in character and will not be approved by the Federal Home Loan Bank Administration until at least 30 days after the copies were mailed to each member of the Federal Savings and Loan Advisory Council (October 20, 1942). Federal Home Loan Bank Review A NEW CHAPTER IN MORATORIA FOR MILITARY MEN Recent amendments to the Soldiers' and Sailors' Civil Relief Act of 1940 are of vital importance to mortgage-lending institutions. Their significance will increase as the drafting of men for military service dips deeper into the ranks of home-owning married men with dependents. • T H E provisions of the Soldiers' and Sailors' Civil Kelief Act of 1940 have been made considerably more comprehensive by the 1942 amendments which became law on October 6. Certain portions of the Act have been extended to grant relief with respect to mortgages and similar securities originating after the date of approval of the original Act on October 17, 1940. Consequently, as the number of persons in the armed forces increases, mortgage-lending institutions will find a greater proportion of their mortgage portfolios affected by these changes. Persons ordered to report for induction under the selective service legislation or as members of the enlisted reserve corps are given the benefits of certain provisions during the period from the receipt of their orders until they report. Changes in redemption periods for real property sold or forfeited; new provisions for lease terminations; amended provisions as to relief on taxes and assessments; interest rate limitation; and extension of certain benefits of the Act to dependents and others affected by the military service of an individual are other highlights of this new law which vitally affects the operations of mortgage-lending institutions. MORTGAGE PROVISIONS AMENDED In addition to removing the October 17, 1940 limitation, the new amendments also make certain changes with regard to the sale, foreclosure, or seizure of property for breach of the terms of the contract obligations. However, the new amendments expressly provide that nothing in the Act shall prevent actions of this type if taken pursuant to a written agreement of the parties involved. This agreement must be executed, however, during or after the period of military service, or during the period from the receipt of orders to the date of reporting. Where a life insurance policy of a person in military service has been assigned as security for the payment November 1942 of obligations, the new amendments prevent the assignee from exercising any right or option arising out of this assignment except by special permission of the court, or with the written consent of the person in military service, or upon the death of the insured. The assignment must have been made before the period of military service as defined in the Act. In the case of personal property, a new Section 303 provides as follows: "Where a proceeding to foreclose a mortgage upon or to resume possession of personal property, or to rescind or terminate a contract for the purchase thereof, has been stayed as provided in this Act, the court may, unless in its opinion an undue hardship would result to the dependents of the person in military service, appoint three disinterested parties to appraise the property and, based upon the report of the appraisers, order such sum, if any, as may be just, paid to the person in military service or his dependent, as the case may be, as a condition of foreclosing the mortgage, resuming possession of the property, or rescinding or terminating the con tract.'' AMENDMENTS REGARDING PURCHASE CONTRACTS Before the present amendments, contracts for the purchase of real or personal property (or of lease or bailment with a view to purchase) could not be rescinded or terminated, or possession resumed where a deposit or instalment of the purchase price was received prior to October 17, 1940. The payment had to be made by a person, or by the assignor of a person, who entered military service after having paid the deposit or instalment. Also, relief was limited to cases where the rescission, termination, or resumption of possession was for nonpayment of an instalment falling due during the period of military service. As now amended, the October 17, 1940 limitation is removed, and the provisions are extended to apply where there is receipt of any payment under the 43 contract, even though it is not a deposit or instalment of the purchase price. In addition, the provision now applies where the ground of action is nonpayment of any instalment or any other breach of the contract, whether occurring prior to or during the period of military service. dependents. Upon application of the lessor before the termination period, the appropriate court may make any adjustments in the relief provided by this section which justice and equity under the circumstances require. T A X AND ASSESSMENT MORATORIA BROADENED EXTENSION OF REDEMPTION PERIODS Section 205 of the Act now provides that no part of any military service occurring after October 6, 1942 shall be included in computing any period "now or hereafter provided by any law for the redemption of real property sold or forfeited to enforce any obligation, tax, or assessment." This, of course, has serious implications for mortgage-lending institutions in jurisdictions where there are redemption periods applicable to real property sold or forfeited to enforce obligations. LIMITATION ON INTEREST R A T E S A new section (Section 206) places a definite limit upon the interest which may be charged on obligations and liabilities incurred prior to entry into military service. Despite the fact that it may have been written at a higher rate, no such obligation or liability may bear interest at more than 6 percent per annum during any part of the period of military service which occurs after October 6, 1942. "Interest" is defined to include service charges, renewal charges, fees, or any other charges except bona fide insurance. Permission to charge a higher rate of interest may be obtained upon application to a court if, in the opinion of the court, the ability of the person to pay a higher rate is not materially affected by reason of his service. TERMINATION OF L E A S E S Under the original provisions of the 1940 Act, a person in military service was granted certain relief with respect to the payment of rent on a lease during the period of his service, but nothing made it possible for him to terminate the lease itself and thus avoid a further accumulation of unpaid rent. As it has now been amended, any lease covering premises occupied "for dwelling, professional, business, agricultural, or similar purposes" may be terminated by giving notice as provided in the Act. The lease must have been executed* by or on behalf of a person who, after its execution, entered military service; and the premises must have been occupied for these purposes by this person or by him and his 44 Any taxes or assessments (other than taxes on income) on real property occupied for "dwelling, professional, business, or agricultural purposes" or on personal property, money, or credits whether falling due prior to or during the period of military service are now covered by the relief provisions of the Act. Owned real estate must have been owned or occupied by a person in military service, or by his dependents, at the beginning of his service, and must still be so occupied by his dependents or employees. No sale to enforce the collection of the tax or assessment can be made, or proceedings for this purpose begun, except by permission of a court granted on application by the person charged with the collection of the taxes; and the court may stay the proceedings of sale for a period extending not more than 6 months after termination of service. I t is no longer necessary, however, for the person in service, or someone on his behalf, to file an affidavit with the collector of taxes to the effect that his ability to pay the tax was materially affected by reason of the military service. B E N E F I T S M A D E APPLICABLE TO D E P E N D E N T S Dependents of persons in military service are now entitled to certain benefits accorded to those actually in the service upon application to a court, unless in the court's opinion the ability of the dependents to comply with the terms of the obligation has not been materially impaired by reason of the military service. Among the benefits included are the provisions regarding: eviction and distress in the case of rented properties; contracts for the purchase of real or personal property or of lease with a view to such purpose; obligations secured by mortgage, trust deed, or similar securities; and the termination of leases. Relief is also extended to the owner of a property which is occupied by the dependents of a person in military service who have benefited under the provisions of the Act regarding evictions from rented property. In cases of this type, the owner of the premises shall be entitled, on application therefor, (Continued on p. 64) Federal Home Loan Bank Review THE CONSUMER WORKS HIS WAY OUT OF DEBT The control of consumer credit under Regulation W was initiated in August of last year. Since that time, the volume of cash-loan instalment credit outstanding has declined 30 percent. The reduction is evidence that progress is being made in this phase of the war on inflation. • G O V E R N M E N T regulation of consumer instalment credit by the Federal Reserve Board has now been in effect for slightly more than a year, and the net result of this control has been a sizable reduction in the outstanding debt of this type. After reaching a peak in the late Summer of 1941, the balance of consumer instalment loans held by credit unions, industrial banking companies, personal finance companies, and commercial banks has dropped almost a billion dollars from $2,800,000,000 to less than $1,900,000,000. This reduction amounts to more than 30 percent of the 1941 high, and has wiped out all of the gains registered since the end of 1939. A vital part of the Government's anti-inflation program, control of consumer credit will undoubtedly result in continued cuts in this type of debt as existing loans mature without comparable opportunities for renewals or new advances and the supply of consumer goods is further restricted. of commercial banks have added a new and significant feature to consumer credit: that of cash instalment loans for the purchase of consumer durable goods and for meeting other financial obligations. It is this selected type of credit to which our attention is now directed. T H E T R E N D SINCE 1929 In 1929 the four principal consumer credit agencies held about $600,000,000 of instalment-loan balances, according to estimates by the National Bureau of Economic Research. Loans of this type showed some increase during 1930, but in the following 3 years declined steadily as the opportunities for new advances to consumers were being reduced and the depression grew worse. Beginning in 1934, however, the trend turned upward and for 8 consecutive years there was a net increase in the balance of loans outstanding. T H E INCREASING INFLUENCE OF INSTALMENT C R E D I T ON THE NATIONAL ECONOMY The growth of consumer instalment credit has been an outstanding development in our national economic life during the past few decades. However, it has only been within recent years that full recognition has been given to the influence of this type of financing on individual purchasing habits, on methods of distribution, and on the entire financial structure of the Nation. Consumer instalment credit is a term used broadly to describe extensions of credit on instalment terms for the purchase of consumer goods, including both retail and cash-loan credit. The widespread use of retail charge accounts has been a strong factor in the growth of retail credit and the development of merchandising practices. At the same time, the advent of credit unions, industrial banking companies, personal finance companies, and the recent development of personal-loan departments 45 November 1942 401408—42 Cash loans by the four principal consumer instalment-credit agencies have been reduced to 1939 levels by the sharp declines during the past year. Personal-loan departments of commercial banks, indicated by the black section of each bar, have experienced the sharpest drop, while personal finance companies have been the least affected. 3 The peak was reached in the third quarter of last year when the total a m o u n t e d to a l m o s t $2,800,000,000. Even these figures, however, do not reflect the full scope of the consumer credit business for they do not take into account the inherent shortterm characteristics of this debt. In recent years, the gross amount of credit granted by the four principal cash-loan agencies has reached approximately $3,000,000,000 per year. The growing volume of instalment-credit purchases, in the face of a diminishing supply of consumer goods, was the principal reason for the introduction of consumer-credit control as one of the first tangible steps in the President's anti-inflation program. Acting in accordance with the President's directive, the Board of Governors of the Federal Reserve System promulgated Regulation W in August 1941 and there have been several restricting amendments since that time. Reduced supplies and rationing of consumer goods, particularly automobiles, and credit limitations in the form of increased downpayments and shorter maturities have combined to bring about a sharp drop in consumer-debt balances. Volume of outstanding instalment loans to consumers by selected credit agencies [Millions of dollars] Industrial Credit banking l unions companies ! E n d of period 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 - Personal finance companies i Total 32.0 31.0 29.1 26.9 27.4 32.2 44.3 66.0 92.8 112.6 146.7 189.2 211.4 219.0 217.9 184.4 143.1 120.7 125.4 156. 2 191. 3 220. 6 230.0 256.6 287.7 297.6 263.2 287.1 288.8 256. 6 232.0 245.5 267.1 301.0 349.8 346.0 434.5 505.4 535. 4 514.2 536.0 502.3 426.6 380.1 403.1 467.6 558.3 663.2 688.6 837.8 982.3 1044. 4 188.0 190.0 195.4 203.2 210. 2 216.1 219.8 222.4 220.5 217.7 214.5 211.4 288.3 288.3 291.5 296.5 301.5 306.3 309.1 309.1 305.1 303.0 300.3 297.6 503. 5 501.5 506.1 514.0 519.3 527.0 531.1 536.0 530.0 526.5 526.7 535.4 979.8 979.8 993.0 1013. 7 1031.0 1049.4 1060.0 1067. 5 1055. 6 1047. 2 1041. 5 1044. 4 199.4 192.4 190.3 184.3 177.8 172.7 167.0 289.9 285.0 281.9 277.1 268.2 260.7 254.4 526.6 520.7 521.2 516.6 503.7 493.1 481.4 1015.9 998.1 993.4 978.0 949.7 926.5 902.8 Commercial G r a n d banks 2 total 1020.0 1340.0 1586. 0 1857.8 2322.3 2630. 4 1400.0 2393.0 1620. 0 2669.4 1690.0 2745. 6 1586.0 2630. 4 1509.0 1432.0 1401.0 1335.0 1270.0 1208.0 1131.0 2524.9 2430.1 2394.4 2313.0 2219.7 2134.5 2033.8 mi January _ . . February March __ April - May . --June_.__- --July_ August September _ - _. October November December.. - .. .__ ..... INCREASING R A T E OF D E C L I N E E V I D E N T During the last quarter of 1941, according to the Department of Commerce, total consumer instalment debt declined at the rate of approximately $125,000,000 per month. For the past several months, however, it is estimated that this rate has increased to nearly $300,000,000 per month. Instalment credit originating from automobile sales is probably responsible for about 50 percent of this decline. Restrictions on charge accounts in retail stores, as well as the freezing of some accounts, have also played a part in the decrease, although principally in the form of repayments on existing obligations rather than in decreased purchasing. The accompanying table shows the data which are available for the principal cash-loan agencies— credit unions, industrial banking companies, personal finance companies, and commercial banks—for the period from 1929 through August of this year. 1 For the first three of these agencies it demonstrates the steady increase of outstanding loans during the latter part of the thirties; and for all it presents information on the pattern during the past 3 years—the period just before and since the outbreak of War. This material is also presented graphically by quarteryear periods in the chart shown on page 45. I t is interesting to observe the coincidence of the effective date of Regulation W and the turning point in the balance of loans outstanding: The peak for the first three agencies shown in the table is August 1941 when they had $1,068,000,000 of these loans on their books; for commercial banks the high point is the September 30 figure of $1,690,000,000. Since that time there has been an almost steady month-tomonth decline in all series. The personal-loan departments of commercial banks have apparently been hit the hardest by the reduction of outstanding loans, registering a 33percent decline from their third-quarter peak of last year. The loans by credit unions have dropped 24 percent in the same period, and those of industrial banking companies, 18 percent. Personal finance companies have been least affected by this downward trend in outstanding loans, showing only a 10-percent reduction. 1942 January February . March April.. May June July 1 2 - __ . Source: Department of Commerce, Survey of Current Business. Source: Federal Keserve Board, Federal Reserve Bulletin. 46 i Within the past few weeks, it has been announced that the Federal Reserve Board has undertaken an extensive program to coordinate the collection of statistics in the field of consumer credit. Data formerly compiled by the Department of Commerce and the American Bankers Association will now be collected by the Federal Reserve System, and the Bureau of the Census has been asked to expand its data on sales finance companies. This will not only provide more adequate consumer credit statistics, but will also eliminate duplication and inconsistency in reporting. When the revised system is perfected a complete report will undoubtedly be made in the Federal Reserve Bulletin. Federal Home Loan Bank Review Analysis of the distribution of the holdings by the principal consumer credit agencies reveals significant differences in the share of the total business. At the peak in the third quarter of last year, commercial banks accounted for 62 percent of the total. Personal finance companies ranked second with 19 percent. Industrial banking companies held 11 percent and credit unions, 8 percent. There has been some shift in these proportions in the past year, reflecting the degree to which the different institutions have been affected by the decline in volume. The commercial-bank share has dropped to 55 percent, while that of credit unions has remained unchanged. Personal finance companies, on the other hand, now account for almost 24 percent of the total, and industrial banking companies, about 13 percent. HOME-MORTGAGE TRENDS MORE DIFFICULT TO FOLLOW Consumer debt in the form of mortgages on owneroccupied homes is in many ways similar to cash-loan instalment obligations, but there are also obvious differences. Now that monthly payment directreduction loans are the most common method of amortizing the home-mortgage debt, they are more nearly comparable with other types of consumer debt. Primary difference, of course, is found in the long-term characteristics of these loans to finance the purchase of homes. Because of this long-term element, a shift toward reducing the balance of mortgage-loans outstanding is more difficult to follow. The home-mortgage debt increased from $19,103,000,000 at the end of 1940 to $20,157,000,000 at the close of last year, 1 and it is quite likely that the net activity for the current year's operations will also result in an increase—though not of such proportions. However, there are many factors which presage a reversal of the upward trend prevalent for the past 5 years: New construction, which has been the primary source of the gains in recent years, is virtually at a standstill. Also, increased consumer incomes are making it possible for many individuals to accelerate the liquidation of the mortgages by making payments ahead of schedule, or in many cases by paying off the loans in full. This prepayment of loans by mortgage borrowers has the official endorsement of the President and Government agencies directly connected with the financing of homes. Finally, institutionally owned real estate, the sale of which * "Home-Mortgage Debt Passes the Twenty-Billion-Dollar Mark," F H L B REVIEW, September 1942, p. 391. November 1942 has been another source of new mortgages, is now reduced to a normal volume in most areas. Eventually, therefore, the home-mortgage debt is likely to follow in the footsteps of short-term consumer-instalment obligations. O P A Regulations (Continued from p. 37) If the Administrator finds that the required payments of principal have been made, he shall, on petition of either the buyer or seller, issue a certificate authorizing the purchaser to proceed with the eviction in accordance with the requirements of the local law after the expiration of 3 months from the date such certificate was issued. In no other case shall the Administrator issue a certificate for occupancy unless he finds that "special hardship" on the seller would result from the denial, of such permission. In these cases the Administrator may waive the stipulated requirements. An additional amendment applies to the situation where a tenant has entered into a lease with an option to buy the housing accommodations which he occupies. If such an agreement was made prior to October 20, the tenant may take the initiative in making application for authorization to permit rent payments in excess of the legal maximum. If the tenant does not apply for such authorization, then the payments cannot exceed the maximum rent even though the lease-option agreement calls for higher payments. A lease with option to buy, entered into after October 20, cannot call for payments in excess of maximum rents. No BAR TO LEGITIMATE SALES The Office of Price Administration has taken particular pains to point out that these recent amendments do not prohibit legitimate sales of real estate. In the case of owner-occupied properties, for example, they have absolutely no effect and the sale of such dwellings is unrestricted. Also, the requirements of the new amendments do not apply in any cases where there is no intention of disturbing the occupancy of present tenants. In sales of this kind, the purchaser is completely free to negotiate the terms of the contract without regard for the one-third downpayment and other limitations. Likewise, sales for purposes of investment would, in general, not be affected by the recent changes. 47 HONOR ROLL OF WAR BOND SALES P^^^^^ Total war-bond sales of all member j^fllEaij5j1J^\ institutions of the Federal Home Loan AT LEASTlUMM Bank System are now well above the ^ ^ ^ ^ ^ ^ $200,000,000-mark, and are averaging approximately $30,000,000 per month. More than 100 institutions were added to the Honor Roll during the month of September, and the list includes 428 Bank System members who have sold an amount at least equal to 10 percent of their assets. Fiftysix of these members have already passed the 25percent ratio of sales to assets. Two Federal Home Loan Banks—Little Rock and Portland—report that every member in their Districts is now qualified to sell war bonds. This goal of 100-percent participation by Bank System members has also been reached in several isolated States. The "Tops in Volume" box is destined soon to become a million-dollar group. Four institutions are listed among the leaders for the first time, including two mutual savings banks who are recent additions to the Bank System membership. Distinction for the largest monthly sales belongs to the Citizens Federal Savings and Loan Association of Dayton, Ohio, and the Acme Savings and Loan Association, Milwaukee, Wisconsin. Again this month, one asterisk before the name of an association indicates sales of 15 percent; each additional asterisk stands for another 5 percent. A name appearing in italics represents sales equal to 100 percent of assets, and each asterisk stands for an additional 5 percent above this amount. All statistics on war bonds are based on reported sales (maturity values in the case of appreciation bonds) through September 30. NO. 1—BOSTON *Branford Federal Savings and Loan Association, Branford, Conn. * Bristol Federal Savings and Loan Association, Bristol, Conn. First Federal Savings and Loan Association, Greenwich, Conn. Telephone Workers Building and Loan Association, Providence, R. I. Uxbridge Cooperative Bank, Uxbridge, Mass. **Windsor Federal Savings and Loan Association, Windsor, Vt. Windsor Locks Building and Loan Association, Windsor Locks, Conn. NO. 2 - N E W YORK ***Amsterdam Federal Savings and Loan Association, Amsterdam, N. Y. Bellmore Savings and Loan Association, Bellmore, N. Y. Black Rock-Riverside Savings and Loan Association, Buffalo, N. Y. **Broad Avenue Building and Loan Association, Palisades Park, N. J. *Bronx Federal Savings and Loan Association, Bronx, N. Y. Caldwell Building and Loan Association, Caldwell, N. J. Carthage Savings and Loan Association, Carthage, N. Y. ***** Center Savings and Loan Association, Clifton, N. J. Central Savings and Loan Association, Albany, N. Y. Chemung Valley Savings and Loan Association, Elmira, N. Y. *City Savings and Loan Association, Elizabeth, N. J. 48 Cranford Savings and Loan Association, Cranford, N. J. Dime Savings Institution, Newark, N. J. East Rochester Federal Savings and Loan Association, East Rochester, N. Y. Fair City Savings and Loan Association, Syracuse, N. Y. *First Federal Savings and Loan Association, New York, N. Y. First Federal Savings and Loan Association, Rochester, N. Y. Fourth Federal Savings and Loan Association, New York, N. Y. *Genesee County Savings and Loan Association, Batavia, N. Y. Guttenberg Savings and Loan Association, Guttenberg, N. J. *Jackson Heights Savings and Loan Association, Jackson Heights, N. Y. **Long Beach Federal Savings and Loan Association, Long Beach, N. Y. Manhattan Savings and Loan Association, New York, N. Y. May wood Savings and Loan Association, May wood, N. J. Midtown Savings and Loan Association, Newark, N. J. Mutual Savings and Loan Association of Richmond County, Port Richmond. N. Y. *New Brighton Savings and Loan Association, St. George, N. Y.' *North Belleville Savings and Loan Association, Belleville, N. J. North Jersey Savings and Loan Association, Passaic, N. J. North Park Savings and Loan Association, Elizabeth, N. J. *****Owego Federal Savings and Loan Association, Owego, N. Y. Polifly Savings and Loan Association, Hasbrouck Heights, N. J. Queens County Federal Savings and Loan Association, Jamaica, N. Y. Salamanca Federal Savings and Loan Association, Salamanca, N. Y. *Schuyler Building and Loan Association, Kearny, N. J. *****Shepherd Savings and Loan Association, East Orange, N. J. *Summit Federal Savings and Loan Association, Summit, N. J. Sunnyside Federal Savings and Loan Association, Irvington, N. Y. Trenton Saving Fund Society, Trenton, N. J. Union City Savings and Loan Association, Union City, N. J. * Volunteer Building and Loan Association, Little Ferry, N. J. Walton Savings and Loan Association, Walton, N. Y. NO. 3—PITTSBURGH *Alvin Progressive Federal Savings and Loan Association, Philadelphia, Pa. Cambria County Federal Savings and Loan Association, Cresson, Pa. **********Q0loniaj federal Savings and Loan Association, Philadelphia, Pa. **Ellwood City Federal Savings and Loan Association, Ellwood City, Pa. First Federal Savings and Loan Association of Bucks County, Bristol, Pa. First Federal Savings and Loan Association, Carnegie, Pa. First Federal Savings and Loan Association, Homestead, Pa. First Federal Savings and Loan Association, Logan, W. Va. First Federal Savings and Loan Association of South Philadelphia, Philadelphia, Pa. * First Federal Savings and Loan Association, Wilkes-Barre, Pa. **First Federal Savings and Loan Association, Wilmerding, Pa. * Franklin Federal Savings and Loan Association, Pittsburgh, Pa. Girard Federal Savings and Loan Association, Philadelphia, Pa. Grand Union Federal Savings and Loan Association, Philadelphia, Pa. *Mid-City Federal Savings and Loan Association, Philadelphia, Pa. Montour Valley Savings, Building and Loan Association, Imperial, Pa. *Mutual Building and Loan Association, Erie, Pa. North East Federal Savings and Loan Association, Philadelphia, Pa. North Philadelphia Federal Savings and Loan Association, Philadelphia, Pa. Reading Federal Savings and Loan Association, Reading, Pa. **United Federal Savings and Loan Association, Morgantown, W. Va. NO. 4—WINSTON-SALEM **Bohemian American Building Association, Baltimore, Md. ***Bohemian Building Loan and Savings Association "Slavie", Baltimore, Md. Brevard Federal Savings and Loan Association, Brevard, N. C. Coral Gables Federal Savings and Loan Association, Coral Gables, Fla. **First Federal Savings and Loan Association, Bessemer, Ala. * First Federal Savings and Loan Association, Columbus, Ga. ****First Federal Savings and Loan Association, Cordele, Ga. * First Federal Savings and Loan Association, Darlington, S. C. * First Federal Savings and Loan Association, Decatur, Ala. * First Federal Savings and Loan Association, Eustis, Fla. First Federal Savings and Loan Association, Hendersonville, N. C. First'Federal Savings and Loan Association, Huntsville, Ala, **First Federal Savings and Loan Association, Montgomery, Ala. ***** First Federal Savings and Loan Association, Phenix City, Ala. First Federal Savings and Loan Association, Rock Hill, S. C. Federal Home Loan Bank Review ******First Federal Savings and Loan Association, Winder, Ga. ***Fort Hill Federal Savings and Loan Association, Clemson, S. C. Gate City Building and Loan Association, Greensboro, N. C. ********Home Building and Loan Association, Easley, S. C. Jefferson Federal Savings and Loan Association, Birmingham, Ala. Lithuanian Federal Savings and Loan Association, Baltimore, Md. •Meriwether Federal Savings and Loan Association, Manchester, Ga. **Moultrie Federal Savings and Loan Association, Moultrie, Ga. Mutual Building and Loan Association, Martinsville, Va. New Home Building and Loan Association, Rocky Mount, N, C. Peoples Savings and Loan Association, Ensley, Ala. Peoples Mutual Building and Loan Association, Mt. Gilead, N. C. Seneca Building and Loan Association, Seneca, S. C. Southern Federal Savings and Loan Association, Atlanta, Ga. ••Southern Pines Building and Loan Association, Southern Pines, N. C. Sun Federal Savings and Loan Association, Baltimore, Md. Tallahassee Federal Savings and Loan Association, Tallahassee, Fla. ***Tifton Federal Savings and Loan Association, Tifton, Ga. Workmen's Federal Savings and Loan Association, Mount Airy, N. C. NO. 5—CINCINNATI Anderson Ferry Building and Loan Company, Cincinnati, Ohio •Bedford Savings and Loan Company, Bedford, Ohio Bellefontaine Federal Savings and Loan Association, Bellefontaine, Ohio Buckeye Loan and Building Company, Cincinnati, Ohio Chagrin Falls Savings and Loan Company, Chagrin Falls, Ohio Citizens Federal Savings and Loan Association, Bellefontaine, Ohio Citizens Federal Savings and Loan Association, Dayton, Ohio Citizens Federal Savings and Loan Association, Marysville, Ohio Citizens Savings and Loan Company, Akron, Ohio Cleveland Federal Savings and Loan Association, Cleveland, Tenn. Cleveland Savings and Loan Company, Cleveland, Ohio Dollar Federal Savings and Loan Association, Hamilton, Ohio East Cleveland Savings and Loan Company, East Cleveland, Ohio First Federal Savings and Loan Association, Akron, Ohio ****First Federal Savings and Loan Association, Bucyrus, Ohio First Federal Savings and Loan Association, Cleveland, Ohio First Federal Savings and Loan Association, Covington, Ky. First Federal Savings and Loan Association, Dickson, Tenn. *First Federal Savings and Loan Association, Galion, Ohio •First Federal Savings and Loan Association, Greeneville, Tenn. ••First Federal Savings and Loan Association, Hopkinsville, Ky. First Federal Savings and Loan Association, Lima, Ohio First Federal Savings and Loan Association, Lorain, Ohio ••First Federal Savings and Loan Association, Van Wert, Ohio First Federal Savings and Loan Association, Warren, Ohio Girard Federal Savings and Loan Association, Girard, Ohio Glandorf German Building and Loan Company, Glandorf, Ohio * Great Northern Building and Loan Company, Barberton, Ohio Greenville Building Company, Greenville, Ohio H. B. Smith Building and Loan Company, Fremont, Ohio •Hancock Savings and Loan Company, Findlay, Ohio ••Hickman Federal Savings and Loan Association, Hickman, Ky. Hicksville Building, Loan and Savings Company, Hicksville, Ohio Home Federal Savings and Loan Association, Knoxville, Tenn. •Hopkinsville Federal Savings and Loan Association, Hopkinsville, Ky. •Lincoln Heights Savings and Loan Company, Cleveland, Ohio •Logan Federal Savings and Loan Association, Logan, Ohio Marion Federal Savings and Loan Association, Marion, Ohio •McArthur Savings and Loan Company, McArthur, Ohio McKinley Federal Savings and Loan Association, Niles, Ohio Murfreesboro Federal Savings and Loan Association, Murfreesboro, Tenn. North Hill Savings and Loan Company, Akron, Ohio •Ohio Savings and Loan Association, Fostoria, Ohio Orleans Federal Savings and Loan Association, Cleveland, Ohio Orol Federal Savings and Loan Association, Lakewood, Ohio •Peoples Federal Savings and Loan Association, Leetonia, Ohio Peoples Savings and Loan Association, Cleveland, Ohio Peoples Savings and Loan Company, Bucyrus, Ohio Pleasant Ridge Building and Loan Company, Cincinnati, Ohio ••Progress Savings and Loan Company, Cleveland, Ohio Provident Building and Loan Association, Cleveland, Ohio Savings, Building and Loan Company, Sandusky, Ohio ••Suburban Federal Savings and Loan Association, Covington, Ky. ••••Tatra Savings and Loan Company, Cleveland, Ohio Third Federal Savings and Loan Association, Cleveland, Ohio •Ukrainian Savings Company, Cleveland, Ohio Van Wert Federal Ravings and Loan Association, Van Wert, Ohio November 1942 •Versailles Building and Loan Company, Versailles, Ohio •••Warsaw Savings and Loan Association, Cleveland, Ohio West Jefferson Building and Loan Company, West Jefferson, Ohio Women's Federal Savings and Loan Association, Cleveland, Ohio NO. 6—INDIANAPOLIS Adrian Federal Savings and Loan Association, Adrian, Mich. Atkins Savings and Loan Association, Indianapolis, Ind. ••Bedford Federal Savings and Loan Association, Bedford, Ind. Charlotte Federal Savings and Loan Association, Charlotte, Mich. •Citizens Federal Savings and Loan Association, Port Huron, Mich. Crawfordsville Building Loan Fund and Savings Association, Crawfordsville, Ind. Dearborn Federal Savings and Loan Association, Dearborn, Mich. •••••••Detroit Federal Savings and Loan Association, Detroit, Mich. East Chicago Federal Savings and Loan Association, East Chicago, Ind. Fayette Federal Savings and Loan Association, Connersville, Ind. First Federal Savings and Loan Association, East Chicago, Ind. First Federal Savings and Loan Association, Jeffersonville, Ind. •First Federal Savings and Loan Association, Kokomo, Ind. First Federal Savings and Loan Association, Logansport, Ind. First Federal Savings and Loan Association, New Albany, Ind. •First Federal Savings and Loan Association, Washington, Ind. First State Savings and Loan Association, Gary, Ind. ••Griffith Federal Savings and Loan Association, Griffith, Ind. Hobart Federal Savings and Loan Association, Hobart, Ind. Homestead Loan and Building Association, Albion, Mich. ••Liberty Savings and Loan Association, Whiting, Ind. Tops in volume The 25 member institutions which have reported the largest cumulative sales of war savings bonds and stamps through September SO 1. First Federal Savings and Loan Association, New York, N. Y 2. Old Colony Cooperative Bank, Providence, R. I 3. Edison Savings and Loan Association, New York, N. Y_ 4. Trenton Savings Fund Society, Trenton, N. J 5. First Federal Savings and Loan Association, Rochester, N. Y .— _ 6. Home Federal Savings and Loan Association, Tulsa, Okla 7. Minnesota Federal Savings and Loan Association, St. Paul, Minn 8. Railroad Federal Savings and Loan Association, New York, N. Y._ 9. Worcester Cooperative Federal Savings and Loan Association, Worcester, Mass 10. Pacific First Federal Savings and Loan Association, Tacoma, Wash 11. Fourth Federal Savings and Loan Association, New York, N. Y 12. Harvey Federal Savings and Loan Association, Harvey, 111 13. Talman Federal Savings and Loan Association, Chicago, 111 14. Citizens Federal Savings and Loan Association, Dayton, Ohio 15. Perpetual Building Association, Washington, D. C 16. First Federal Savings and Loan Association, Chicago, 111. 17. Railroadmen's Federal Savings and Loan Association, Indianapolis, Ind 18. Gem City Building and Loan Association, Dayton, Ohio. 19. First Federal Savings and Loan Association, Miami, Fla. 20. Dime Savings Institution, Newark, N. J 21. Colonial Federal Savings and Loan Association, Philadelphia, Pa 22. Home Federal Savings and Loan Association, Chicago, 111 .._ 23. Home Savings and Loan Company, Youngstown, Ohio.. 24. First Federal Savings and Loan Association, Detroit, Mich 25. Acme Savings and Loan Association, Milwaukee, Wis.__ $2,105,804 1,932,784 1,816,000 1,763,904 1,603,420 1,542,751 1,459,259 1,408,138 1,377,074 1,318,158 1,291,958 1,291,919 1,208,601 1,193,428 1,149,042 1,142,494 1,131,370 1,100,000 1,054,753 1,019,260 949,712 931,697 929,572 838,454 826,639 Loogootee Federal Savings and Loan Association, Loogootee, Ind. **Marshall County Building and Loan Association, Plymouth, Ind. Monon Building, Loan and Savings Association, Monon, Ind. •Muskegon Federal Savings and Loan Association, Muskegon, Mich. Niles Federal Savings and Loan Association, Niles, Mich. *Peoples Federal Savings and Loan Association, East Chicago, Ind. •Peoples Federal Savings and Loan Association, Monroe, Mich. *Port Huron Loan and Building Association, Port Huron, Mich. Rural Loan and Savings Association, Hartford City, Ind. ••••Sobieski Federal Savings and Loan Association, South Bend, Ind. **Twelve Points Savings and Loan Association, Terre Haute, Ind. *Wayne County Federal Savings and Loan Association, Detroit, Mich. NO. 7—CHICAGO Abingdon Federal Savings and Loan Association, Abingdon, 111. *t***Acme Savings and Loan Association, Milwaukee, Wis. *Amery Federal Savings and Loan Association, Amery, Wis. Amity Federal Savings and Loan Association, Chicago, 111. Austin Federal Savings and Loan Association, Chicago, 111. Avon Building and Loan Association, Avon, 111. *Avondale Building and Loan Association, Chicago, 111. Black Hawk Federal Savings and Loan Association, Rock Island, 111. Chicago Heights Federal Savings and Loan Association, Chicago Heights, 111. *****City Savings and Loan Association, Chicago, 111. Columbus Savings and Loan Association, Chicago, 111. * Concord Savings and Loan Association, Chicago, 111. •Continental Savings and Loan Association, Chicago, 111. •**Cook County Federal Savings and Loan Association, Chicago, 111. ****** Copernicus Building and Loan Association, Chicago, 111. **Cragin Savings and Loan Association, Chicago, 111. Cudahy Savings and Loan Association, Cudahy, Wis. Damen Savings and Loan Association, Chicago, 111. •Fairfield Savings and Loan Association, Chicago, 111. *****First Calumet City Savings and Loan Association, Calumet City, 111. First Federal Savings and Loan Association, Des Plaines, 111. First Federal Savings and Loan Association, Lansing, 111. ••First Federal Savings and Loan Association, Moline, 111. First Federal Savings and Loan Association, Shelbyville, 111. First Federal Savings and Loan Association, Wilmette, 111. First Savings and Loan Association of Hegewisch, Chicago, 111. •Flora Mutual Building, Loan and Homestead Association, Flora, Hi. Gage Park Savings and Loan Association, Chicago, 111. Gediminas Building and Loan Association, Chicago, 111. •••*George Washington Savings and Loan Association, Chicago, III. •Grand Crossing Savings and Building Loan Association, Chicago, 111. •Guaranty Savings and Loan Association, Chicago, 111. Guaranty Savings and Loan Association, Milwaukee, Wis. ***********Haller Building and Loan Association, Chicago, 111. ******Harvey Federal Savings and Loan Association, Harvey, 111. Hegewisch Federal Savings and Loan Association, Chicago, 111. •Hemlock Savings and Loan Association, Chicago, El. ***********Homewood Building and Loan Association, Homewood, 111. ***• •Investors Savings and Loan Association, Chicago, 111. •Jackson County Federal Savings and Loan Association, Black River Falls, Wis. Joliet Federal Savings and Loan Association, Joliet, 111. ••••Jugoslav Savings and Loan Association, Chicago, HI. •Lawn Manor Building and Loan Association, Chicago, 111. •Lawn Savings and Loan Association, Chicago, 111. ••••••••••Lawndale Savings and Loan Association, Chicago, 111. Liberty Savings and Loan Association, Chicago, 111. •••Libertyville Federal Savings and Loan Association, Libertyville, 111. •Lombard Building and Loan Association of DuPage County, Lombard, 111. ••Midwest Savings and Loan Association, Chicago, 111. Morton Park Federal Savings and Loan Association, Cicero, 111. ••Naperville Building and Loan Association, Naperville, 111. Naprstek Savings and Loan Association, Chicago, 111. National Savings and Loan Association, Chicago, 111. National Savings and Loan Association, Milwaukee, Wis. New City Savings and Loan Association, Chicago, 111. •New London Savings and Loan Association, New London, Wis. North Shore Building and Loan Association, North Chicago, 111. ••North Side Federal Savings and Loan Association, Chicago, 111. North West Federal Savings and Loan Association, Chicago, 111. •Northwestern Savings and Loan Association, Chicago, 111. Ogden Federal Savings and Loan Association, Berwyn, HI. Peerless Federal Savings and Loan Association, Chicago, HI. 50 Prairie State Savings and Loan Association, Chicago, 111. Prospect Federal Savings and Loan Association, Chicago, 111. •••Pulaski Savings and Loan Association, Chicago, HI. Radnice Savings and Loan Association, Chicago, 111. Reliance Federal Savings and Loan Association, Chicago, 111. Republic Savings and Loan Association, Chicago, 111. *****Richland Center Federal Savings and Loan Association, Richland^Center, Wis. Ripon Federal Savings and Loan Association, Ripon, Wis. Second Federal Savings and Loan Association, Chicago, 111. Security Federal Savings and Loan Association, Chicago, 111. ••Springfield Building and Loan Association, Springfield, 111. •••••St. Anthony Savings and Loan Association, Cicero, 111. Standard Federal Savings and Loan Association, Chicago, 111. Talman Federal Savings and Loan Association, Chicago, 111. Tocin Savings and Loan Association, Berwyn, 111. •Union Federal Savings and Loan Association, Kewanee, 111. •••Universal Savings and Loan Association, Chicago, 111. ••Uptown Federal Savings and Loan Association, Chicago, 111. ••Valentine Federal Savings and Loan Association, Cicero, 111. ••••West Highland Savings and Loan Association, Chicago, 111. •••West Pullman Savings and Loan Association, Chicago, 111. Western Federal Savings and Loan Association, Chicago, 111. NO. 8—DES MOINES American'Home Building and Loan Association, St. Louis, Mo. Ames Building and Loan Association, Ames, Iowa •Burlington Federal Savings and Loan Association, Burlington, Iowa •First Federal Savings and Loan Association, Fargo, No. Dak. •••••First Federal Savings and Loan Association, Jamestown, No. Dak. First Federal Savings and Loan Association, Rock Rapids, Iowa ••First Federal Savings and Loan Association, Sioux City, Iowa Home Building and Loan Association, Marion, Iowa Home Federal Savings and Loan Association, Spring Valley, Minn. Independence Savings and Loan Association, Independence, Mo. ••Insurance Plan Savings and Loan Associations, Mt. Pleasant, Iowa Lake City Federal Savings and Loan Association, Lake City, Minn. Northwestern Mutual Savings and Loan Association, Fargo, No. Dak. ••Owatonna Federal Savings and Loan Association, Owatonna, Minn. ••Perry Federal Savings and Loan Association, Perry, Iowa Postal Employees Building Loan and Savings Association, St. Louis, Mo. •Sentinel Federal Savings and Loan Association, Kansas City, Mo. Wells Federal Savings and Loan Association, Wells, Minn. NO. 9—LITTLE ROCK •Amory Federal Savings and Loan Association, Amory, Miss. Argenta Building and Loan Association, North Little Rock, Ark. ••Atlanta Federal Savings and Loan Association, Atlanta, Tex. •••Batesville Federal Savings and Loan Association, Batesville, Ark. •Bell County Federal Savings and Loan Association, Belton, Tex. Citizens Federal Savings and Loan Association, Jonesboro, Ark. ****Clay County Federal Savings and Loan Association, West Point, Miss. ••Colorado Federal Savings and Loan Association, Colorado, Tex. Delta Federal Savings and Loan Association, Greenville, Miss. ••Deming Federal Savings and Loan Association, Deming, N. Mex. ••••••••••Electra Federal Savings and Loan Association, Electra, Tex. ••El Paso Federal Savings and Loan Association, El Paso, Tex. First Federal Savings and Loan Association, Beaumont, Tex. ••First Federal Savings and Loan Association, Belzoni, Miss. •First Federal Savings and Loan Association, Big Spring, Tex. ••First Federal Savings and Loan Association, Corinth, Miss. ••••First Federal Savings and Loan Association, Corpus Christi, Tex. ••First Federal Savings and Loan Association, Dallas, Tex. First Federal Savings and Loan Association, El Paso, Tex. •First Federal Savings and Loan Association, Helena, Ark. First Federal Savings and Loan Association, Little Rock, Ark. •••First Federal Savings and Loan Association, Lubbock, Tex. First Federal Savings and Loan Association, McComb, Miss. •First Federal Savings and Loan Association, Monroe, La. First Federal Savings and Loan Association, Starkville, Miss. •First Federal Savings and Loan Association, Waco, Tex. •Gladewater Federal Savings and Loan Association, Gladewater, Tex. ••Greater New Orleans Homestead Association, New Orleans, La. •Hammond Building and Loan Association, Hammond, La. Hillsboro Federal Savings and Loan Association, Hillsboro, Tex. •'Home Building and Loan Association, Plainview, Tex. ••••Marianna Federal Savings and Loan Association, Marianna, Ark. Federal Home Loan Bank Review *Mineral-Wells Building and Loan Association, Mineral Wells, Tex. ****Morrilton Federal Savings and Loan Association, Morrilton, Ark. * Mutual Building and Loan Association, Las Cruces, N. Mex. Mutual Deposit and Loan Company, Austin, Tex. ****Nashville Federal Savings and Loan Association, Nashville, Ark. Navasota Federal Savings and Loan Association, Navasota, Tex. Oak Homestead Association, New Orleans, La. * Orange Federal Savings and Loan Association, Orange, Tex. **Piggott Federal Savings and Loan Association, Piggott, Ark. Pioneer Building and Loan Association, Waco, Tex. *Pocahontas Federal Savings and Loan Association, Pocahontas, Ark. *****Ponchatoula Homestead Association, Ponchatoula, La. *****Quanah Federal Savings and Loan Association, Quanah, Tex. Roswell Building and Loan Association, Koswell, N. Mex. **Riceland Federal Savings and Loan Association, Stuttgart, Ark. San Angelo Federal Savings and Loan Association, San Angelo, Tex. San Antonio Building and Loan Association, San Antonio, Tex. Slidell Savings and Homestead Association, Slidell, La. Tucumcari Federal Savings and Loan Association, Tucumcari, N. Mex. Valley Federal Savings and Loan Association, McAllen, Tex.J NO. 10—TOPE K A *American Building and Loan Association, Oklahoma City, Okla. Century Building and Loan Association, Trinidad, Colo. Citizens Federal Savings and Loan Association, Wichita, Kan. *Erie Building and Loan Association, Erie, Kan. Eureka Federal Savings and Loan Association, Eureka, Kan. First Federal Savings and Loan Association, Englewood, Colo. s************-^^ F e ( } e r a i Savings and Loan Association, Lamar, Colo. *First Federal Savings and Loan Association, Liberal, Kan. First Federal Savings and Loan Association, Seminole, Okla. * First Federal Savings and Loan Association, Shawnee, Okla. **********First Federal Savings and Loan Association of Sumner County, Wellington, Kan. * First Federal Savings and Loan Association, Wakeeney, Kan. Garnett Savings and Loan Association, Garnett, Kan. *Hays Building and Loan Association, Hays, Kan. *Home Federal Savings and Loan Association, Ada, Okla. *Home Federal Savings and Loan Association, Grand Island, Neb. *Home Federal Savings and Loan Association, Tulsa, Okla. ****Horton Building, Loan and Savings Association, Horton, Kan. Lyons Building and Loan Association, Lyons, Kan. McCurtain County Building and Loan Association, Idabel, Okla. Monte Vista Building Association, Monte Vista, Colo. ****************Qsage p e ( j e r a i Savings and Loan Association, Pawhuska, Okla. Peoples Federal Savings and Loan Association, Ardmore, Okla. ** Peoples Federal Savings and Loan Association, Tulsa, Okla. *Routt County Federal Savings and Loan Association, Oak Creek, Colo. **********Schuyler Federal Savings and Loan Association, Schuyler, Neb. Security Building and Loan Association, Iola, Kan. Sumner County Building and Loan Association, Wellington, Kan. NO. 11—PORTLAND ***Auburn Federal Savings and Loan Association, Auburn, Wash. Capital Savings and Loan Association, Olympia, Wash. * Cheyenne Federal Savings and Loan Association, Cheyenne, Wyo. Commercial Savings and Loan Association, Kelso, Wash. *I)eer Lodge Federal Savings and Loan Association, Deer Lodge, Mont. *Ellensburg Federal Savings and Loan Association, Ellensburg, Wash. First Federal Savings and Loan Association, Boise, Idaho First Federal Savings and Loan Association, Bremerton, Wash. *First Federal Savings and Loan Association, Chehalis, Wash. *First Federal Savings and Loan Association, Everett, Wash. First Federal Savings and Loan Association, Idaho Falls, Idaho **First Federal Savings and Loan Association, Klamath Falls, Oreg. * First Federal Savings and Loan Association, Lewiston, Idaho *First Federal Savings and Loan Association, McMinnville, Oreg. ****First Federal Savings and Loan Association, Mt. Vernon, Wash. First Federal Savings and Loan Association, Pendleton, Oreg. *First Federal Savings and Loan Association, Port Angeles, Wash. First Federal Savings and Loan Association, Sheridan, Wyo. First Federal Savings and Loan Association, Spokane, Wash. *****First Federal Savings and Loan Association, The Dalles, Oreg. Lewis County Savings and Loan Association, Chehalis, Wash. •Liberty Savings and Loan Association, Yakima, Wash. Mason County Savings and Loan Association, Shelton, Wash. Olympia Federal Savings and Loan Association, Olympia, Wash. •Polk County Federal Savings and Loan Association, Dallas, Oreg. November 1942 Port Angeles Savings and Loan Association, Port Angeles, Wash. •Prudential Savings and Loan Association, Seattle, Wash. •Rawlins Federal Savings and Loan Association, Rawlins, Wyo. Seattle Federal Savings and Loan Association, Seattle, Wash. Security Building and Loan Association, Billings, Mont. Thurston County Federal Savings and Loan Association, Olympia, Wash. Vancouver Federal Savings and Loan Association, Vancouver, Wash. Walla Walla Federal Savings and Loan Association, Walla Walla, Wash. Wenatchee Federal Savings and Loan Association, Wenatchee, Wash. ••West Side Federal Savings and Loan Association, Seattle, Wash. •Yakima Federal Savings and Loan Association, Yakima, Wash. NO. 12—LOS ANGELES Central Federal Savings and Loan Association, San Diego, Calif. ••Century Federal Savings and Loan Association, Santa Monica, Calif. First Federal Savings and Loan Association, Honolulu, Hawaii •First Federal Savings and Loan Association, Huntington Park, Calif. First Federal Savings and Loan Association, Santa Barbara, Calif. •First Federal Savings and Loan Association, Santa Monica, Calif. Hollywood Building and Loan Association, Hollywood, Calif. Independent Building-Loan Association, San Jose, Calif. Inglewood Federal Savings and Loan Association, Inglewood, Calif. Magnolia Federal Savings and Loan Association, Upland, Calif. Redlands Federal Savings and Loan Association, Redlands, Calif. Santa Maria Guarantee Building-Loan Association, Santa Maria, Calif. Model Specifications • ACCURATE and concise specifications are one of the most important aspects of relations between a home buyer and a building contractor. Lending institutions derive their interest in air-tight specifications from the security which the finished product will offer for their loan. Model specification descriptions have been the subject of a special report by the Bureau of Standards and the Central Housing Committee now available to the public. The report, " A Method for Developing Specifications for Building Construction" is the work of the Subcommittee on Specifications appointed by the Central Housing Committee on Research, Design and Construction. The study revealed that proper design of specifications is the result of judicious selection of material, orderly arrangement, and concise presentation. To achieve this, carefully prepared basic forms were adopted, the distinctive features of which are: (1) mandatory provision concentrated in a single governing clause, and (2) the body of the specification in abbreviated outline form. Examples of specifications used for masonry are provided illustrating the use of a broad basic form, designation of current products and methods, and the inclusion of only vital information. The order of arrangement is set up to follow the order in which specified work and its interlocking operations proceed. Readability, indexing, and illustrative material are further time- and labor-saving factors. This publication (BMS-87) may be obtained from the Government Printing Office, for 10 cents. 51 RESIDENTIAL BUILDING ACTIVITY AND SELECTED INFLUENCING FACTORS 1935-1939= 100 3Y YEARS BY MONTHS INDEX 280 280 i i • l i i i ADJUSTED FOR SEASONAL VARIATION 260 260 -PRIVATE 240 CONSTRUCTION^ 1240 *\/L 1 & 2 FAMILY DWELLING UNITS •220 220 -200 200 f I80h l6o[ PRIVATE CONSTRUCTION 1 & 2 FAMILY DWELLING UNITS \ v (U. S. DEPT OF LABOR ^ /1 RECORDS) I40H \ / I20H l_ \jcSVGS. . IOOL \ a LOAN LENDING \ ^ » 14^^ / sV- 180 J../" s \ \ \s ^'~""i i LE/VCWG —\ 160 I 140 /**'•.••" / 120 ••*••• 100 (FEDERAL HOME LOAN BANK ADMIN V\i 801 •*** •*• .• v \ \ 60 [ x......••••** 40 [ '''/ f\ I / 80 'MONFARM FORECLOSURES-** S (FEDERAL HOME LOAN BANK ADMINJ NOhrMtxM ^ 60 rurxtuL.u&ur(t.&~ 40 20 2o[ | 0 140 1 1 I i 1 1 i 1 1 i 1 1 i i 1 1 i 1 1 1 1 1 ' 1 BUILDING MATERIAL PRICES-* 120 BUILDING MATERIAL PRICES- '.?L^v- |(U S. DEPARTMENT OF LABOR) 100 | | 55555ss8S7jjinrrrj<ss'' '..'..»»" * | .....l• ]/ 120 1 L-4>- 100 "RENTS^ 80 80 (NATIONAL INDUSTRIAL CONFERENCE BOARD) 1 60 200 I 1 I 1 I -v-1 -J'V i i i , , i i i i i i i i i i • ' i i i i i i i i i i ADJUSTED FOR SEASONAL VARIATION ... INDUSTRIAL PRODUCTION^ /\ (FEDERAL RESERVE BOARD) [-V^-V 120 160 1 j / ..''^J^<\\ 1 INCCME /WA# ENTS 140 60 200 180 ••'••^J^ - T" __W£ USTI ?/4L PRODUCTION*^ * 160 -nk .»' 180 1 140 120 *•••, .•'_ ^ 100 100 80 80 60 0 140 1930 '31 '32 '33 '34 '35 '36 '37 INDEX COST OF STANDARD SIX-ROOM HOUSE INDEX 135 I60r '38 '39 '40 '41 -^V i i , | , , ' ' _L_L_ WHOLESALE COMMODITY PRICES i i 1941 1940 _1 L_ 1 1 1942 V ^LL,ONS F K L B . ADVANCES OUTSTANDING $240 r FEB. MAR. APR. MAY 52 1 1 , |^ JUN JUL AUG. SEP OCT NOV. DEC. Federal Home Loan Bank Review MONTHLY SURVEY HIGHLIGHTS /. Residential building permits issued during September displayed some increases over August despite the fact that the normal movement at this time of the year is downward. A. Permits for privately financed 1- and 2-family dwellings were 6 percent higher than in the previous month; but more than 60 percent below the same month of last year. B. The number of publicly financed dwelling units rose 31 percent from August, and totalled almost 2,400 units—about oneseventh of all construction in urban areas. i/. Mortgage-financing activity likewise experienced small gains during the month of September. A. Recordings of all nonfarm mortgages of $20,000 and under amounted to $346,000,000—up $9,000,000 from August, but 19 percent under the level of September 1941. Cumulative total for the first 9 months of this year is a half-billion dollars below the same period of last year. B. The September increase in loans by all savings and loan associations paralleled the gain shown by total mortgage recordings. Home purchase loans continue to be the primary supporting factor. III. Building costs continue to show minor increases, although the rate of gain is noticeably slower than a year ago. Labor costs have risen faster than material costs in the past few months. IV. Nonfarm real-estate foreclosures rose more than seasonally from August to September, but this in no way offsets the general downward trend noted in recent years. V. Creation of the Office of Economic Stabilization early in October marks a new phase in control of the American war economy. Income payments during September were at an annual rate of about 116 billion dollars a year. Cash farm income, on the basis of crops already harvested, will surpass even the 1919 boom. SUMMARY Summer and early Autumn of this year revealed a surprising firmness among trends in the homefinancing field. Mortgage lending and other related series leveled off from the sharp downward trends started in the Summer of 1941, and during September the various barometers showed slight upturns. Although recordings of mortgages of $20,000 or less continued in September at a level 19 percent under the corresponding 1941 figure, the total amount of instruments registered displayed a rise of 3 percent at a time of year when a decline is usually noted. Almost all classes of lenders participated in this increase. Private home building, which had dropped to about one-third the July 1941 peak, has also steadied in recent months, and the seasonally adjusted index moved 12 percent higher in September. The volume of Government-financed housing construction has been relatively low for 3 months. There is increasing pressure recently to further curtail residential building as the supplies of some essential materials are proving insufficient for war needs. Material allocations have become more strict, and it may well be that the next few months may witness an end to the breathing spell recently enjoyed in the construction and financing fields. November 1942 Share investments continued to be received by insured savings and loan associations during September at nearly the same rate as a month previous, but in greater volume than a year ago, having shown an increase of 12 percent over the same month in 1941. On the other hand, share repurchases were about equal to those of September 1941. As a result, private share capital of insured institutions rose almost 36 million dollars in the current month as compared to a growth of 21 million dollars in the previous September. Building-cost data on the Federal Home Loan Bank Administration's 6-room house, as reported for individual cities, Lave now been placed on an index basis (see page 59). [1935-1939=100] Type of index 1 Home Construction—Private Foreclosures (nonfarm) 1 Kental index (NICB) Building material prices 1 Savings and loan lending Irdustrial production * Manufacturing employment ! Manufacturing pay rolls i Income payments 1 r 1 Sept. 1942 Aug. 1942 Percent change 79.2 25.3 111.3 123.3 132.3 185.0 146.7 245.8 173.0 71.0 24.1 111.3 123.2 126.1 183.0 r 148.3 r 248. 2 '171.6 +11.5 +5.0 0.0 +0.1 +4.9 +1.1 -1.1 -1.0 +0.8 Sept. 1941 202.7 32.9 109.0 118.8 182.8 161.0 133.8 181.3 143.1 Percent change -60.9 -23.1 +2.1 +3.8 -27.6 +14.9 +9.6 +35.6 +20.9 Revised. Adjusted for normal seasonal variation. S3 BUSINESS C O N D I T I O N S — R e c o r d crops and farm income indicated Along with the expansion of industrial production, the volume of income payments continues to increase and in September was at an annual rate of approximately 116 billion dollars a year. This is almost 20 percent higher than a year ago, and more than 60 percent greater than at the outbreak of War in September 1939. The number of persons employed at the present time is over 2 million greater than a year ago, despite the induction of more than 2 million men into the Army during the intervening period. Wage rates in manufacturing industries have risen approximately 15 percent since the beginning of this year but total payrolls, which take into account overtime pay and the increased number of workers, have jumped 60 percent. Cash farm income for the year 1942 will be higher than in any previous year on record. Estimated at approximately 15 billion dollars, it will surpass even the 1919 boom. Now that the majority of crops have been harvested, it is believed that total production will be 15 percent higher than last year, which was itself almost a record year. Industrial production increased more than seasonally in September, and the adjusted index of the Federal Reserve Board rose to 185—another new high. Durable goods production was responsible for this gain, as the index for nondurable goods was unchanged and the output of minerals somewhat lower on a seasonally adjusted basis. Steel production was maintained at a high level throughout September, and reached 101 percent of the rated capacity during* the third week of October. Creation of the Office of Economic Stabilization during the first week of October is expected to bring about more effective control of all economic factors affecting the war effort. the average, and long-term partially tax exempt bonds 2.05 percent, during the week ending October 17. Reserve requirements of central reserve city banks in New York and Chicago were further reduced during October. They now stand at 20 percent, in contrast to 26 percent early in August. B U I L D I N G A C T I V I T Y - P e r m i t s show contra-seasonal gain September witnessed a continuation of the gradual upward movement in the number of privately financed homes placed under construction, which has been noted since the low level established in midyear. The rise of 646 dwellings of the 1- and 2-family type represented a gain of 6 percent from August. Since it is normal for home-building activity to ease off at this time of year, the seasonally adjusted index moved up 12 percent, although it is still 61 percent below the level of a year ago. Government housing projects also expanded in September, increasing 31 percent from the previous month to a total of nearly 2,400 units. However, this amounts to only about one-fourth of the publicly financed residential dwellings reported in September 1941, and was equal to one-seventh of all construction in urban areas. [TABLES 1 and 2.] MOVEMENTS IN THE M O N E Y M A R K E T Outstanding feature of October in the financial markets was the floating of a 4-billion-dollar issue of 1% percent notes and 2 percent bonds, by the Treasury. While this new issue was oversubscribed, the Government bond market received substantial support from the Federal Reserve Open Market Committee which purchased more than $600,000,000 of securities during a 2-week period. Prices of U. S. Government securities continued steady. Longterm taxable bonds were yielding 2.33 percent on 54 B U I L D I N G C O S T S - C i t y data now on index basis The cost of material used in the standard 6-room frame house rose fractionally in September and is now 22 percent above the base period. Labor costs in connection with the standard house rose 0.6 percent in September which places the labor cost index 30 percent above the 1935-1939 level. For 23 consecutive months, increases have been noted in the cost of this dwelling and the combined Federal Home Loan Bank Review Construction costs for the standard house [Average month of 1935-1939=100] Element of cost Material Labor. Total. _ Percent change Sept. 1942 Aug. 1942 121. 5 130. 2 121.2 129. 4 + 0.2 + 0. 6 114.4 120. 7 + 6.2 + 7.9 124.4 124.0 + 0. 3 116.5 + 6.8 Percent change Sept. 1941 index now stands 24 percent above the average month of 1935-1939. The rise since March of this year has been much more gradual than for the same period in 1941. From April to September of this year, the combined cost index has gained only 1.7 percent while the rise a year ago was nearly 5 percent. I N D E X F I G U R E S R E P L A C E DOLLAR AMOUNTS Building costs for individual cities, which have been presented in terms of the dollar amount of estimated cost of constructing the standard house, will in the future be expressed as indexes with the average cost for the years 1935-1939=100. Differentials in dollar figures previously quoted for cities were frequently due to local variations in building standards, rather than to actual differences in cost for an identical house. For example, the substitution of #2 lumber for first-grade lumber called for in specifications would change the dollar level significantly, but the trend of the index numbers would not be seriously affected. In addition to eliminating possible misinterpretations, the substitution of index numbers will facilitate the comparison of cost trends in various sections of the country since the percentage changes from this period may be observed by direct reading of index numbers. For example, it is to be noted in Table 3 of this issue that the indexes for Buffalo and White Plains each stood at 128 in October, while in Albany the index was 134. Expressed in other terms, it may be stated that costs have risen in Buffalo and White Plains by 28 percent from the base period, while Albany has experienced an increase of 34 percent for the same interval. Placing of the series on an index basis still does not make possible a direct comparison of the costs in two given cities. In the example above, therefore, it can not be stated that costs in Albany are higher than in either Buffalo or White Plains; only trend comparisons are valid. November 1942 Of the 18 cities reporting currently, all except four show increases. Buffalo, Evansville, and Duluth reported slight declines while no change was registered in St. Paul. Wholesale building material prices rose fractionally during September. This was due to an increase in the cost of paint, paint material, and lumber. The Labor Department's composite index is now 23 percent above the 1935-1939 average. [TABLES 3, 4, and 5.] MORTGAGE LENDING-New loons ore slightly obove August level The 2-percent gain in new lending activity of savings and loan associations during September brought the total volume for that month to $94,000,000, a figure 28 percent under that reported a year previous. Construction loans, which have been contracting in volume almost uninterruptedly since the peak of $45,000,000 for July 1941, tended to level off in the late Spring and early Summer of this year and have now fluctuated around the $15,000,000-mark for 5 consecutive months. Meanwhile, loans for the purchase of homes continued at high levels, with monthly totals varying between $52,000,000 and $58,000,000 during the same period. Home-purchase loans have yet to fall more than 7 percent below the corresponding month of last year. During the year to date, $814,000,000 has been loaned by the savings and loan associations on new mortgage security, a decrease of $232,000,000, or 22 percent, from the total for the first three quarters of 1941. For the entire January-September interval, the volume of construction loans was less than half that of 1941, while reconditioning and " other purpose" loans were down about one-fourth. Aside from home-purchase loans, which remained practically unchanged during these intervals, the refinancing category showed greatest resistance to depressing factors so far in 1942 by moving downward only 14 percent from last year. [TABLES 6 and 7.] MORTGAGE RECORDINGS-Minor upward movement notedj P The 3-percent rise in mortgage recordings reported in September represented a continuation of the series of minor changes that have occurred since Spring in most barometers of real-estate and homefinancing activity. Small though it was, the increase 55 Mortgage recordings by type of mortgagee [Amounts are shown in thousands of dollars] Type of lender Savings and loan associations Insurance companies Banks, trust companies __ Mutual savings banks__ Individuals Others Total Percent Percent Cumula- Percent change of Sept. tive re- of total from 1942 cordings recordAug. amount (9 months) ings 1942 + 1.5 + 11.1 30. 1 9. 1 $910, 912 279, 913 29. 9 9.2 + 7.0 + 0. 1 + 4.1 -5.8 22. 4 4.3 18.9 15. 2 690, 917 128, 621 555,037 476, 403 22. 7 4. 2 18. 3 15.7 100.0 3, 041, 803 100.0 + 2.7 is interesting because it reversed a usual decline in recordings at this time of the year. Insurance companies led all other types of lenders with an increase of 11 percent in recordings of $20,000 or less as compared with August figures. Commercial bank mortgages rose 7 percent, while other types of lenders showed changes either downward or more closely approximating the average. Approximately 119,000 mortgages of $20,000 or less, amounting to $346,000,000, were recorded during the month, a decline of 19 percent in number and amount over figures for a year ago, but $9,000,000 higher than in the previous month. During the first three quarters of this year, mortgage recordings have amounted to $3,042,000,000, a decline of about half a billion dollars from the same months of last year. In spite of rising building costs and higher realestate valuations, the average mortgage still amounted to about $2,900, a fact which may reflect the difficulty of moving higher priced properties. [TABLES 8 and 9.] FORECLOSURES—September reverses downward tendency While nonfarm real-estate foreclosure activity during the first 9 months of the year was still well below 1941 figures, foreclosures in September showed a more than seasonal increase over August. The nonfarm foreclosure index (1935-1939 = 100) rose from 24.1 for August to 25.3 in September, an increase of 5 percent. This single month's increase in no sense offsets the general downward trend in foreclosures noted in recent years. The total number of nonf arm fore56 closures for the first 9 months of 1942 was 27 percent less than for the same period of last year, which in turn was 21 percent below 1940. In 25 States, foreclosures continued to follow the downward movement during the month. In one State there was no change from the August level. Twenty-two States and the District of Columbia reported increases. [TABLE 10.] B A N K S Y S T E M - T h i r d quarter shows unusual trend Federal Home Loan Bank advances continued their unusual third-quarter trend and after a decline of $16,000,000 from August, the outstanding balance at the end of September was the lowest of the year—• $144,752,000. The month-by-month decreases thus far in 1942 (except for June) reflected a net decline of $75,000,000 since the first of the year and brought the total of outstanding advances to the lowest level for September since 1937. While new advances made during September, which amounted to $4,157,000, represented a slight decrease from the August figure, it was considerably less than the decline experienced during the previous month: $107,000 as against $3,667,000. Five Banks—-Boston, Pittsburgh, Cincinnati, Portland, and Los Angeles—-reported slightly larger advances than in August. The September advances were approximately $8,700,000 below the corresponding month of last year. Monthly repayments, on the other hand, were up approximately $2,000,000 over the previous month and $12,000,000 in excess of the volume a year ago. Slightly more than half (seven) Bank Districts participated to some extent in this trend with the greatest increase in repayments registered in the Winston-Salem, Indianapolis, and Chicago Banks. Total assets of the 12 Banks were down $3,500,000 from the end of August. This was primarily the result of a net reduction of $4,000,000 in the amount of F H L B debentures outstanding. SERIES L D E B E N T U R E S ISSUED On September 1, the Federal Home Loan Banks floated their eleventh issue of consolidated debentures. These Series L debentures, in the amount of $22,000,000, will mature on March 1, 1943 and bear a stated interest rate of % of 1 percent. Also, on September 1, Series I consolidated debentures, in the amount of $26,000,000, became due and were retired. [TABLE 12.] Federal Home Loan Bank Review INSURED ASSOCIATIONS—I ncoming funds exceed lending opportunities With share receipts continuing to flow into insured savings and loan associations in considerable volume, private repurchasable capital on the books of these institutions increased by $36,000,000 during September. The total of $2,834,000,000 held at the close of that month represented a growth of $347,000,000 since September 1941. During the current month the $40,000,000 of share repurchases was equal to 59 percent of new investments, a ratio almost identical to that for August but substantially lower than the 70 percent reported in September of last year. Meanwhile, lending activity of insured associations continued at reduced levels. The $61,000,000 loaned during September, although somewhat greater than in the preceding month, was $22,000,000 lower than a year ago. As a result of the low level of new lending activity the combined mortgage portfolio of insured institutions has shown relatively small increases for some time. The loan balance has risen only $190,000,000 during the past year. The flow of savings has far exceeded the growth in mortgage holdings. This situation is largely responsible for unusually heavy repayments of Bank advances and repurchases of Government investments. The net reduction in these two accounts for insured associations aggregated $50,000,000 during the year ending September 30. FEDERAL SAVINGS AND LOAN ASSOCIATIONS Two State-chartered associations converted to Federal charter during September, bringing the total for that class at the end of the month to 825; there were no changes in status among " n e w " Federals. The assets of all 1,466 Federals amounted to more than $2,210,000,000 in September, of which more than two-thirds was held by institutions converted from State charter. [TABLE 15.] Progress in number and assets of Federals [Amounts are shown in thousands of dollars] Directory of Member, Federal, and Insured Institutions Added during September-October I. INSTITUTIONS ADMITTED TO M E M B E R S H I P IN THE FEDERAL HOME LOAN BANK SYSTEM BETWEEN SEPTEMBER 16, AND OCTOBER 15, 1942 DISTRICT NO. 2 N E W JERSEY: Newark: The Dime Savings Institution, 780 Broad Street. Thrift Savings and Loan Association, 4 North Ninth Street. DISTRICT NO. 3 PENNSYLVANIA: Pittsburgh: Troy Building and Loan Association, 1729 Lowrie Street. Reading: Provident Federal Savings and Loan Association, 433 Washington Street. DISTRICT NO. 6 INDIANA: Indianapolis: Prospect Savings and Loan Association of Indianapolis, Indiana," 1120 Prospect Street. DISTRICT NO. 7 WISCONSIN: Green Bay: Brown County Building and Loan Association, 308 Cherry Street. TEKMINATIONS OF MEMBERSHIP IN THE FEDERAL HOME LOAN BANK SYSTEM BETWEEN SEPTEMBER 16, AND OCTOBER 15, 1942 ILLINOIS: Decatur: Peoples Savings and Loan Association, 223 South Park Avenue (liquidation) . Mound City: Mound City Building and Loan Association (liquidation). KENTUCKY: Newport: The Fidelity Building Savings and Loan Association, 103jEast Seventh Street (liquidation). The Sixth Ward Loan and Building Association, 103 East Seventh Street (liquidation). N E W JERSEY: Irvington (Newark): Olympic Building and Loan Association, 455 Orange Avenue (sale of assets to Crestmont Savings and Loan Association, Maplewood). Newark: Essex Mutual Building and Loan Association, 445 Orange Street (sale of assets to Crestmont Savings and Loan Association, Maplewood). v Pacific Building and Loan Association of Newark, New Jersey, 39 Branford Place (liquidation). OHIO: Cincinnati: The Cincinnati Loan and Building Company, 1704 Vine Street. Columbus: The Economy Savings and Loan Company, 42 East Gay Street. PENNSYLVANIA: Pittsburgh: Home Federal Savings and Loan Association, 816 Warrington Avenue (merged with Progressive-Home Federal Savings and Loan Association, 1411 Carson Avenue, Pittsburgh). Standard Building and Loan Association, 1423 Beaver Avenue (liquidation). II. FEDERAL SAVINGS AND LOAN ASSOCIATIONS CHARTERED BETWEEN SEPTEMBER 16, AND OCTOBER 15, 1942 DISTRICT NO. 2 N E W JERSEY: Number Class of association Approximate assets Sept. 30, Aug. 31, 1942 1942 Sept. 30, 1942 Aug. 31, 1942 New _ _ Converted. _ 641 825 641 823 $702, 480 1, 511, 621 $696, 818 1, 501, 539 Total 1,466 1,464 2, 214, 101 2, 198, 357 Pompton Plains: Pompton Plains Federal Savings and Loan Association, North Pompton Turnpike. DISTRICT NO. 3 PENNSYLVANIA: Philadelphia: South Star Federal Savings and Loan Association, 1530 Chestnut Street. DISTRICT NO. 7 WISCONSIN: Milwaukee: Northern Federal Savings and Loan Association, 2746 Teutonia Avenue. (Continued on p. 64) November 1942 57 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 September 1942, by Federal Home Loan Bank District and by State [Source: U. S. Department of Labor] [Amounts are shown in thousands of dollars] All residential dwellings N u m b e r of family dwelling units Federal H o m e Loan B a n k District and State Sept. 1941 Sept. 1942 U N I T E D STATES N o . 1—Boston _ Connecticut Maine.Massachusetts New Hampshire Rhode Island. Vermont __ _ _ __ __ __ __ __ __ __ N o . 2—New Y o r k N e w Jersey N e w York__ _ _ . N o . 3—Pittsburgh Pennsylvania _ West 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 K e n t u c k y _ _____ _ Ohio Tennessee N o . 6—Indianapolis Indiana M i c h i g a n _ ___ _ _ _____ _ ._ _ _ _ _ ___ No. 7—Chicago... Illinois _ Wisconsin N o . 8—Des M o i n e s ___ ___ ___ ___ ___ _ ___ _ _ _ Iowa___ _ _ _-_ _ _ _ Minnesota _ _ _ _ _ _ __ __ .__ _ Missouri _ North Dakota _ _ .__ South D a k o t a _ ___ N o . 9—Little R o c k Arkansas Louisiana _ Mississippi _ _ _ _ _ _ N e w Mexico __ ___ Texas _____ _ _ . _ __ __. _____ __ __ _ _ ._ N o . 10—Topeka Colorado _ ___ - __ _ __ Kansas ___ _ ___ _ _ Nebraska _ O k l a h o m a - . __ _ __ ___ __ _ _ __ N o . 11—Portland Idaho __________ Montana _ Oregon _____ Utah Washington ... __ Wyoming ___ ____ N o . 12—Los Angeles Arizona California Nevada__ 58 __ __ _ _ _ _ All p r i v a t e 1- a n d 2-family dwellings N u m b e r of family dwelling units Permit valuation Sept. 1942 Sept. 1941 Sept. 1942 Permit valuation Sept. 1941 S e p t . 1942 1 S e p t . 1941 16,265 40,389 $50,247 $151,797 11,037 28,229 $35, 532 1,823 2,135 7,103 9,549 638 1,615 2,425 7,589 640 717 295 2 34 135 524 285 1,079 54 166 27 2,578 2,880 1,115 4 118 408 2,732 1,075 4,694 203 710 135 265 109 218 2 34 10 516 85 767 54 166 27 1,097 398 788 4 118 20 2,700 297 3,544 203 710 135 1,715 3,418 5,362 14,540 1,136 2,408 3,780 11,040 1,099 616 1,342 2,076 3,372 1,990 5,841 8,699 540 596 1,042 1,366 1,850 1,930 4,677 6,363 536 3,431 2,195 14,176 536 1,784 2,195 8,210 515 21 21 2,815 595 2,158 37 107 12,034 2,035 515 21 21 1,575 188 2,158 37 107 7,452 651 3,753 6,256 9,627 18,711 1,559 4,087 3,840 12,863 234 1,091 655 183 464 129 15 982 585 892 1,050 423 1,800 553 312 641 287 2,957 1,171 465 1,171 379 46 3,151 1,294 2,506 3, 606 946 5,265 1,555 849 2,690 226 13 159 183 448 129 15 386 268 33 323 465 1,131 379 46 1,195 825 1,038 2,973 941 2,701 1,485 610 2,290 922 3, 439 3,413 14, 224 903 2,093 3,370 9,192 103 777 42 175 2,915 349 219 3,097 97 450 12, 814 960 103 758 42 175 1,573 345 219 3,054 97 450 7,784 958 1,413 3, 745 5,685 15, 807 1,410 2,630 5,673 11, 427 451 962 1, 261 2, 484 1, 593 4,092 4,623 11,184 451 959 822 1,808 1, 593 4,080 2,987 8,440 691 2, 539 2,618 12, 296 652 2,036 2,449 10, 469 464 227 1, 968 571 1,784 834 9,944 2, 352 429 223 1,513 523 1,626 823 8,253 2,216 209 1,864 656 7,665 199 1,724 654 7,115 49 72 82 3 3 439 651 633 62 79 114 257 271 5 9 1,740 2,979 2,423 244 279 49 72 72 3 3 439 651 493 62 79 114 257 269 5 9 1,740 2,979 1,873 244 279 547 4, 744 854 13, 512 499 2,957 763 7,773 30 62 93 24 338 395 1,086 545 109 2, 609 54 120 122 89 469 1,134 3,237 1,180 291 7,670 30 62 45 24 338 141 441 364 99 1,912 54 120 31 89 469 360 1,176 580 283 5,374 330 1, 227 883 3,873 290 1,126 802 3,542 20 78 102 130 351 296 201 379 67 174 303 339 1,167 788 770 1,148 4 54 102 130 272 296 195 363 35 125 303 339 871 788 754 1,129 980 2^038 2,816 7,380 637 1, 475 1,985 5,540 13 2 359 96 460 50 121 90 281 232 1, 245 69 7 9 924 208 1,522 146 313 331 916 1,020 4,520 280 13 2 55 1 88 429 50 7 9 180 196 1,447 146 t 206 331 916 1,011 2,796 280 3,346 5, 553 9, 035 20,064 2,578 4, 294 7,596 20 3,173 153 110 | 5, 368 75 1 22 8, 481 532 386 19,457 221 16 2,417 145 90 4,137 67 14 7,064 518 1 1 1 428 189 811 420 1 997 530 i 230 1 482 1 82 90 281 218 735 69 1 $110,850 16,090 1 349 15, 529 212 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] [Amounts are shown in thousands of dollars] N u m b e r of family dwelling u n i t s M o n t h l y totals T y p e of c o n s t r u c t i o n P r i v a t e construction 1-family dwellings 2-family dwellings 1 3-and-more-family dwellings .. .._ 2 P u b l i c construction T o t a l u r b a n construction Permit valuation M o n t h l y totals J a n . - S e p t . totals Sept. 1942 A u g . 1942 Sept. 1941 1942 1941 13,907 15,273 9,711 1,326 2,870 9,102 1,289 4,882 30,801 161,648 26,011 2,218 2,572 117,499 13,046 31,103 J a n . - S e p t . totals S e p t . 1942 A u g . 1942 Sept. 1941 298,321 $42,610 $47,000 $117,537 $526,645 $1,117,869 237,873 18, 285 42,163 31,871 3,661 7,078 29,363 4,699 12,938 105,016 5,834 6,687 40.6,164 36,194 84,287 951, 737 47,018 119,114 7,637 6,444 34,260 187,980 202,429 50,247 53,444 151,797 714,625 1, 320, 298 2,358 1,803 9,588 56,519 60,409 16,265 17,076 40,389 218,167 358, 730 1942 1941 1 Includes 1- and 2-family dwellings combined with stores. 2 Includes multi-family dwellings combined with stores. Table 3 . — B U I L D I N G COSTS—Index of building costs for the standard house in representative cities in specific months 1 [Source: Federal Home Loan Bank Administration] [Average month of 1935-1939=100] 1942 1941 1940 1939 1938 1937 1936 Oct. Oct. Oct. Oct. Oct. Federal H o m e Loan Bank District and City Oct. N o . 2—New Y o r k : Atlantic City, N . J Camden, N . J Newark, N . J Albany, N . Y Buffalo, N . Y . _ White Plains, N . Y . N o . 6—Indianapolis: Evansville, Ind __ _ . _ I n d i a n a p o l i s , I n d __ -_ South Bend, Ind Detroit, Mich . . _ _ G r a n d R a p i d s , M i c h . . __ N o . 8—Des M o i n e s : Des M o i n e s , I o w a Duluth, Minn St. Paul, Minn Kansas City, M o . St. Louis, M o _ F a r g o , N . Dak_ .._ . . . Sioux Falls, S. D a k N o . 11—Portland: Boise, I d a h o .._ G r e a t Falls, M o n t P o r t l a n d , Oreg Salt L a k e C i t y , Utah_ Seattle, Wash Spokane, Wash _ Casper, W y o .._ _ ___ - .. __- ._ _.- .___ July Apr. Jan. Oct. 125.4 147.0 152.6 134.2 128.1 127.8 125.3 145.9 146.3 130.9 128.2 126.2 124.9 142.1 137.0 123.2 125.4 126.0 122.7 141.0 136.5 124.6 123.7 124.3 122.1 141.5 135. 8 122.5 121.6 123.7 103.9 114.2 107.0 102.9 101.6 100.1 105.5 106.5 105.6 101.9 104.7 99.0 99.4 101.5 103.4 101.1 105.0 99.1 126.2 129.9 132.3 130.7 128. 5 126.4 121.9 131.2 124.7 127.0 126.4 121.9 130.9 124.7 136.8 127.0 120.6 128.4 120.7 133.2 119.7 116.4 120.6 119,6 129.8 110.7 98.0 107.8 105.4 106.8 106.7 101.0 103.7 104.0 102. 9 100.6 101.7 94.9 108.0 106.5 113.8 118.1 118.7 129.3 108.7 115.4 118.3 113.0 118.4 118.7 125.6 108.5 113.6 116.4 109.9 112.8 115.9 125.5 107.5 111.4 110.4 108.0 110.8 114.7 118.6 106.0 108.3 112.3 105.3 109.6 112.7 116.1 107.0 107.9 110.8 103.6 104.3 107.5 102.9 99.8 101.5 103.7 102.0 102.3 108.2 105.8 98.2 102.3 101.4 99.8 104.7 107.9 122.1 112.8 120.1 122.9 123.2 121.1 103.4 122.1 112.8 115.9 111.6 107.0 122.3 121.8 115.4 103.6 112.4 111.0 106.6 120.6 119.6 115.1 101.8 109.3 101.3 99.0 104.0 105.2 102.2 95.0 103.8 101.3 97.8 102.5 102.8 100.9 104.0 101.9 122.7 123.0 121.7 103.6 97.4 102.1 107.8 98.7 100.5 102.0 101.0 101.5 106.9 108.7 104.6 95.9 96.0 95.6 96.0 96.4 99.2 109.0 105.7 97.8 96.9 99.0 92.0 94.1 104.6 106.3 112.7 108.1 107.0 104.6 106.3 99.4 97.6 92.6 94.1 98.2 97.8 95.1 104.6 103.5 113.1 97.0 96.7 100.3 97.3 97.9 99.2 97.9 101.9 107.5 106.4 110.1 103.5 1 The house on which costs are reported is a detached 6-room home of 24,000 cubic volume. Living room, dining room, kitchen, and lavatory on first floor; three bedrooms and bath on second floor. Exterior is wide-board siding with brick and stucco as features of design. Best quality materials and workmanship are used throughout. The house is not completed ready for occupancy. It includes all fundamental structural elements, an attached 1-car garage, an unfinished cellar, an unfinished attic, a fireplace, essential heating, plumbing, and electric wiring equipment, and complete insulation. It does not include wall-paper nor other wall nor ceiling finish on interior plastered surface, lighting fixtures, refrigerators, water heaters, ranges, screens, weather stripping, nor window shades. Reported costs include, in addition to material and labor costs, compensation insurance, and allowance for contractor's overhead and transportation of materials plus 10 percent for builder's profit. Reported costs do not include the cost of land nor of surveying the land, the cost of planting the lot, nor of providing walks and driveways; they do not include architect's fee, cost of building permit, financing charges, nor sales costs. In figuring costs, current prices on the same building materials list are obtained every three months from the same dealers, and current wage rates are obtained from the same reputable contractors and operative builders. November 1942 59 Table 4 . — B U I L D I N G COSTS—Index of building costs for the standard house [Average month of 1935-1939=100] Sept. 1942 Aug. 1942 July 1942 June 1942 May 1942 Apr. 1942 Mar. 1942 Feb. 1942 Jan. 1942 Dec. 1941 Nov. 1941 Oct. 1941 Sept. 1941 Element of cost Material. Labor Total cost _ 121.5 130.2 121.2 129.4 121.2 128.5 124.4 124.0 123.7 121.3 127.8 123.5 121.0 126.4 120.5 125.9 120.0 126.0 119.3 125.0 118.6 124.5 117.7 124.2 116.9 123.9 116.0 123.3 114.4 120.7 122.8 122.3 122.0 121.2 120.6 119.9 119.2 118.5 116.5 Table 5 . — B U I L D I N G COSTS—Index of wholesale price of building materials in the United States [1935-1939=100; converted from 1926 base] [Source: U. S. Department of Labor] All building materials Period Brick and tile Cement Lumber Paint and paint materials Plumbing and heating Structural steel Other 106.8 99.3 99.4 119.3 103.4 105.8 103.5 101.1 1941: September. October November. December 118.8 119.8 120.0 120.4 105.3 106.3 106.3 106.4 101.2 101.7 102.2 102.5 143.8 144.2 143.3 144.1 116.4 118.0 117.2 118.6 114.4 115.3 115.5 117.1 103.5 103.5 103.5 103.5 108.4 109.8 111.6 110.8 1942: January February March April May June July... August. September 122.0 122.9 123.4 123.1 122.9 122.9 123.2 123.2 123.3 106.6 106.8 106.9 107.9 107.9 108.0 107.9 108.6 108.6 102.5 102.5 102.7 103.3 103.4 103.4 103.4 103.4 103.4 146.5 147.8 148.2 146.8 146.4 146.7 148.0 148.1 148.3 121.8 122.8 123.9 123.7 123.7 123.3 123.8 123.1 123.4 123.0 128.6 129.0 129.4 129.4 129.4 123.6 123.6 123.6 103.5 103.5 103.5 103.5 103.5 103.5 103.5 103.5 103.5 111.5 111.9 112.3 112.3 112.3 112.3 112.3 112.3 112.3 1940: September __ ___ . Percent change: Sept. 1942-Aug. 1942 Sept. 1942-Sept. 1941 +0.1 0.0 0.0 +0.1 +0.2 0.0 0.0 0.0 +3.8 +3.1 +2.2 +3.1 +6.0 +8.0 0.0 +3.6 Table 6 . — M O R T G A G E LENDING—Estimated volume of new home-mortgage loans savings and loan associations, by purpose and class of association by all [Thousands of dollars] Purpose of loans Period Refinancing $426,151 $198,148 $63, 583 $113,065 $1,199, 579 $509, 713 $483,499 $206,367 320,040 40,947 152,292 15,483 48,710 6,283 86, 611 9,645 902,059 111, 775 384,795 46,480 360,403 45,988 156,861 19,307 1941 294,406 39,417 Reconditioning Loans for all other purposes Construc- Home purtion chase 1940. January-September. September Class of association Total loans Federals State members Nonmembers 437,065 580, 503 190, 573 61, 328 109,215 1,378,684 584, 220 583,804 210,660 January-September. September October November December 338, 950 40, 782 37, 722 30,103 30, 290 428,668 58,052 59,874 48, 816 43,145 146, 526 15,871 16, 283 13,340 14,424 47,530 5,884 5,361 4,267 4,170 84,115 9,345 8,698 8,223 8,179 1,045,789 129, 934 127,938 104,749 100, 208 448,621 54, 786 52, 507 41,910 41,182 438,024 54,303 54,930 46,890 43,960 159,144 20,845 20, 501 15, 949 15,066 1942 January-September. January February March April May June July _.. August September 162,119 22, 791 20,799 21,775 20,488 17,610 15,930 17, 709 12, 568 12,449 431, 780 34,127 33, 769 40,930 52,196 53,095 52,112 52,190 55, 323 58, 060 125,882 12,854 12,325 13,225 14,508 13, 607 15,184 16,097 14,019 14,063 32,991 3,190 3,138 3,547 4,083 3,866 3,566 3,671 4,126 3,804 61,450 6,571 6,725 7,890 7,772 6,831 7,303 6,130 6,549 5,679 814,222 79,533 76,756 87,367 99,047 95,009 94,095 95,797 92, 585 94,055 321,729 31,142 31,919 36,325 38,484 36,966 35, 279 37,007 36,620 37, 987 365,951 35,312 33, 939 38,030 43,937 43,005 44, 265 43, 665 41,416 42, 249 126, 542 13,079 10,898 13,012 16,626 15,038 14, 551 15,125 14, 504 13,819 60 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 September 1942 [Thousands of dollars! [Amounts are shown in thousands of dollars] C u m u l a t i v e n e w loans (9 m o n t h s ) N e w loans Federal H o m e Loan B a n k District and t y p e of association September 1942 $94,055 U N I T E D STATES Federal.. State member Nonmember Boston Federal State member Nonmember N e w York Federal State member Nonmember Pittsburgh Federal _ State member Nonmember _ Winston-Salem Federal State member Nonmember Cincinnati Federal State member Nonmember I n d i a n a p o l i s . __ Federal State member Nonmember Chicago Federal State member Nonmember Des Moines Federal.. State member Nonmember _ _ Little Rock Federal State member Nonmember Topeka Federal State member Nonmember 1 Portland Federal State member Nonmember. 1 L o s Angeles Federal State member Nonmember August 1942 r September 1941 1942 1941 $92,563 $129,934 $814, 222 $1,045,789 Percent change -22.1 448,621 - 2 8 . 3 438,024 1 - 1 6 . 5 159,144 - 2 0 . 5 37,987 42,249 13,819 36,620 41,549 14,394 54, 786 54,303 20,845 321,729 365,951 126, 542 10,068 10,517 15,019 80,814 109,730 -26.4 3,127 5,168 1,773 3,052 5,958 1,507 5,415 7,734 1,870 24, 535 43, 540 12,739 38,194 55,826 15, 710 -35.8 -22.0 -18.9 9,279 9,194 14, 288 82, 705 101,812 -18.8 2,291 3,990 2,998 2,034 3,898 3,262 4,866 4,329 5,093 19,490 30, 657 32, 558 30,365 31,257 40,190 -35.8 -1.9 -19.0 7,796 9,149 10,925 73,956 82, 542 -10.4 2,862 2,430 2,504 3,624 2,366 3,159 3,999 2.351 4,575 27,475 22,118 24,363 32,048 21,148 29,346 -14.3 +4.6 -17.0 11,941 11,481 17, 788 110,417 5,725 5,019 1,197 5,105 5,242 1,134 8,525 7,402 1,861 47,457 50,932 12,028 18, 945 16,851 21, 702 149, 710 6,810 9,779 2,356 6,300 8,757 1,794 7,996 10, 550 3,156 56,021 78,416 15, 273 66, 589 88, 983 23, 249 -15.9 -11.9 -34.3 143, 298 69, 799 60,831 12,668 178, 821 -22.9 -32.0 -16.3 -5.1 -16.3 5,206 4,957 6,693 44,149 53, 560 -17.6 2,660 2,357 189 2,500 2,208 249 3,383 3,041 269 22,035 19, 823 2, 291 27, 283 24, 236 2,041 -19.2 -18.2 +12.2 8,481 8,479 ~12,160 79, 555 104, 585 -23.9 3,288 3,975 1,218 2, 875 4, 203 1,401 4,720 5,981 1,459 28, 777 38, 550 12, 228 40,467 49,920 14,198 -28.9 -22.8 -13.9 4,405 4,929 7,266 39,939 .57,727 -30.8 2,215 1, 565 625 2,329 1, 721 879 3,459 18, 699 2,570 14, 760 1,237 1 6,480 28,791 19,101 9, 835 -35.1 -22.7 -34.1 3, 720 3,958 6,329 1 38,404 51, 248 -25.1 1, 428 2, 202 90 1, 331 2, 524 103 2,576 3,614 139 14,460 23, 211 I 733 21, 595 28,403 1, 250 -33.0 -18.3 -41.4 3, 664 3,914 5,131 34, 721 42,168 -17.7 1,972 1,048 644 2, 236 1,052 626 19, 082 2,837 1,351 9,968 943 1 5,671 23, 278 10,205 8, 685 -18.0 -2.3 -34.7 2, 676 2,818 4,021 1 25,295 37,939 -33.3 1, 577 940 1, 792 800 226 2, 518 15, 818 1,335 7,869 168 1 1,608 24,711 11,999 1, 229 -36.0 -34.4 +30.8 159 7,874 6,316 8,612 54, 557 82,359 -33.8 4,032 3, 776 66 3,442 2,820 54 4,492 1 27,880 4,045 26,107 75 570 45, 501 36,115 743 —38.7 -27.7 -23.3 Banks M u and tual trust savcomings panies b a n k s Federal Home Loan Bank District and State Savings I n s u r and ance loan comassocia- panies tions U N I T E D STATES $104,155 $31, 448 $77,530 $14, 812 $65,423 $52,596 $345,964 Individuals Other mortgagees Total _ 10,997 1,395 3,116 7,083 5,961 2,202 30, 754 Connecticut Maine . Massachusetts New Hampshire Rhode Island Vermont 1,372 700 7,678 280 799 168 903 13 413 6 57 3 1,287 332 1,097 87 261 52 1,612 531 3,993 352 383 212 1,695 380 3,208 205 350 123 1,093 53 723 17 306 10 7,962 2,009 17,112 947 2,156 568 Boston. . 7,395 2,017 8,590 5,518 9,270 6,475 39, 265 3,336 4,059 1,100 917 5,167 3,423 604 4,914 3,579 5,691 3,328 3,147 17,114 22,151 6,633 2,216 6,671 731 4,328 3,824 24, 403 241 5,713 679 140 1,669 407 164 5,353 1,154 72 648 11 213 3,632 483 79 3, 583 162 909 20, 598 2,896 12, 617 4,441 5,054 227 8,299 4,616 35, 254 409 1,950 517 1,098 4,343 1,775 445 2,080 855 571 428 . 651 196 367 273 1,100 420 306 518 819 659 495 352 1,485 995 1,278 1,352 838 1,208 650 399 1,579 631 663 436 561 869 282 259 915 3,310 4,768 3,251 3,967 7,502 3,569 1,728 7,159 Cincinnati. _ 21, 640 4,738 9, 303 548 4,803 4,552 45, 584 Kentucky Ohio Tennessee 2, 253 18, 866 521 592 3,373 773 1,249 7,254 800 548 221 4,019 563 184 2,606 1,762 4,499 36, 666 4,419 Indianapolis 6,619 3,237 8,465 41 2,388 4,820 25, 570 Indiana Michigan Chicago. 4,323 2,296 1,288 1,949 1, 973 3,233 5,232 41 1,945 2,875 11, 570 14, 000 6,738 4,633 2,105 20 740 1,648 4,777 2, 615 2,162 8,390 7, $48 842 3,791 573 971 2,056 101 90 3, 538 •353 484 2,671 24 6 3,468 158 437 265 12 2.596 2,915 930 541 145 1,299 2,910 79 59 705 139 1,899 29 32, 059 23, 905 8,154 20, 835 3,727 5,842 10, 713 333 220 19, 741 1 513 4,095 1,619 563 11, 951 13, 203 3,389 2,824 2,037 4. 953 11 631 New York _ N e w Jersey 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.. Maryland... N o r t h Carolina S o u t h Carolina Virginia Illinois Wisconsin Des Moines I o w a ._ 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 Colorado Kansas Nebraska Oklahoma. Portland Idaho Montana Oregon Utah Washington Wyoming Los Angeles Arizona. California Nevada _. _ ._ _ __ _. _ 10,161 7,510 2,651 6,085 1,421 2,268 2,185 171 40 6,450 360 1,989 258 109 3, 734 4,794 736 1,227 953 1.878 3,046 99 142 605 598 1,465 137 7,718 234 7,427 57 1,599 374 2,583 328 1,175 1,066 8 6 4,416 531 779 465 191 2,450 868 80 153 359 276 675 12 53 260 80 270 4,749 1,052 855 2,735 29 78 1,407 228 69 218 131 761 1,991 214 632 336 809 2,696 52 99 275 848 1,336 86 2,889 18, 750 21 388 2,863 18, 267 5 95 227 20 89 89 4,000 236 821 413 120 2,410 2, 635 1,429 271 244 691 555 1,749 117 127 41 704 228 514 477 96 13, 422 386 12, 942 94 4,886 | 359 480 2,590 1 893 5, 961 348 47,665 9! 1.038 4,875 46, 374 2 253 r Revised. November 1942 61 Table 9 . — M O R T G A G E RECORDINGS—Estimated volume of nonfarm mortgages recorded [ A m o u n t s are s h o w n in t h o u s a n d s of dollars] Savings a n d loan associations Insurance companies Banks and trust companies M u t u a l savings b a n k s Individuals All mortgagees Other mortgagees Period Percent Total Percent Total Percent Total 1941: S e p t e m b e r . October November. December. $135,754 138, 670 113,353 112, 764 31.9 31.0 30.0 28.7 $36,250 39, 896 32, 527 37,185 8.6 9.5 $100,712 106,109 92,316 99, 855 1942: J a n u a r y . . . . February.. March April May June July A u g u s t .__ September. 90, 572 86, 752 100, 296 108, 5S2 107,937 105. 278 104, 712 102,628 104,155 28.2 29.3 29.9 30.2 30.8 30.8 29.6 30.5 30.1 31,062 28, 546 32, 650 34, 466 31, 780 29,764 31,898 28, 299 31,448 9.7 9.7 9.7 9.6 9.1 8.7 9.0 8.4 9.1 77, 631 70, 221 78,086 82,082 77,563 74, 588 80, 736 72, 480 77,530 Total Percent Percent Total 23.7 $20,802 23.7 22, 788 24.4 19, 653 25.5 19, 253 4.9 5.1 5.2 4.9 570, 377 74,891 64, 024 64, 524 16.6 $61,034 16.7 65,636 17.0 55, 810 16.4 58, 774 14.4 14.6 14.8 15.0 $424,929 447,990 377, 683 392,355 100.0 100.0 100.0 100.0 24.1 23.7 23.3 22.8 22.2 21.8 22.8 21.5 22.4 4.2 3.5 3.6 4.2 4.5 4.7 4.4 4.4 4.3 59,033 53, 383 60,322 62, 707 63.807 62, 730 64.808 62, 824 65,423 18.4 18.0 18.0 17.4 18.2 18.3 18.4 18.6 18.9 15.4 15.8 15.5 15.8 15.2 15.7 15.8 16.6 15.2 321, 396 296, 041 335, 636 359, 968 350,187 342, 250 353,511 336,850 345.964 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 13, 523 10,405 12,162 15, 310 15, 904 16, 043 15,669 14, 793 14,812 49,575 46, 734 52,120 56, 821 53,196 53, 847 55, 688 55, 826 52,596 I P r e m i u m - p a y i n g ; t h o u s a n d s of dollars] M o n t h l y volume C o u n t y size (dwellings) Total insured a t e n d of period Period U . S. total 5,00010,999 than 5,000 1941: J a n . - S e p t e m b e r September October November December 45,432 4,374 4,408 4.204 4,337 4,952 515 544 448 524 1942: 33,064 4,000 3,630 3,935 3,856 3,813 3,850 3,558 3,072 3,360 3,456 439 370 669 461 333 367 333 401 Jan.-September January February March April May June July August September Per- Combined Pertotal cent cent Table 1 1 . — F H A — H o m e mortgages insured * Table 10.—FORECLOSURES—Estimated nonfarm real-estate foreclosures/ by size of county Period Total Table 1 2 . - F H L Title I Class 3 60,000 and 20,00059,999 705 659 9,798 975 945 890 1,028 23,743 2,230 2,222 2,161 2,126 5,308 635 592 678 561 623 637 565 499 527 7,402 814 80S 863 867 968 835 727 707 818 16,898 2,112 1,860 1,944 1,967 1,889 2,011 1,933 1,465 1,717 1941: S e p t e m b e r . O c t o b e r . _. November. December. $1,552 1,536 1,361 1,850 1942: J a n u a r y . . . February. March April May June July.. August September 1,885 1,455 1,502 1,967 1,867 1,781 919 1,246 104 Title I I Title V I $73,083 85, 290 76.920 87, 516 $1,143 2,190 3,578 5,294 $3,415,095 3,504,111 3, 585,970 3, 680, 630 6, 556 8,483 12, 273 11,424 13, 554 15, 876 20, 621 25,030 31, 524 3, 776, 238 3, 856,975 3, 938, 530 4,007, 369 4,082,967 4,166, 434 4, 250, 702 4,328,791 4,407,992 87, 167 70,799 67, 780 55,448 60,177 65,810 62. 728 51, 813 47,573 i F i g u r e s represent gross insurance w r i t t e n 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 principal r e p a y m e n t s on p r e v i o u s l y insured loans. B A N K S -Lending operations and principal assets and liabilities [ T h o u s a n d s of dollars] L e n d i n g operations S e p t e m b e r 1942 P r i n c i p a l assets S e p t e m b e r 30, 1942 C a p i t a l a n d p r i n c i p a l liabilities S e p t e m b e r 30, 1942 Federal H o m e Loan B a n k Advances Boston Pittsburgh Winston-Salem Cincinnati Chicago Des Moines Little Rock Topeka Portland L o s Angeles . .. . .- . . .- . ... -.. - . - _. . . . . _- _. $1, 502 277 558 213 163 217 234 115 5 205 25 643 Repayments Advances outstanding Cashi Government securities Capital 2 Debentures Member deposits] $1, 336 2,083 1,260 3,275 1,448 1,202 2,900 994 1,134 755 1,299 1,920 $10,157 23,784 13,088 17,890 11,102 10,062 22,466 9,478 5,835 5,480 2,771 12,639 $5,381 3,571 4,634 13,871 5,186 4,076 12,312 6,267 1,151 2,522 2,383 6,929 $9,298 9,355 7,666 2,374 15, 393 10,228 8,391 5,138 6,640 4,920 6,155 3,621 $18,742 26,178 15,949 17,047 23,301 11. 759 21, 595 11,221 12.159 10,101 8,188 14,723 $4,000 8,500 9,000 16, 500 2,500 9,000 16,000 8,500 1,500 2,000 3,000 7,000 $2,152 2,053 418 607 5,921 3,611 5,514 1,131 1 825 153 1,490 T o t a l assets Sept. 30, 19421 $24,900 36,784 25,475 34, 230 31, 753 24,420 43,204 20,915 13,675 12,946 11,345 23,238 S e p t e m b e r 1942 (All B a n k s ) 4,157 19, 606 144,752 68,283 89,179 190,963 87, 500 23,876 302,885 A u g u s t 1942 4,264 17, 656 160, 201 66,498 78,224 190, 598 91, 500 23, 547 306,238 12,850 7,287 178,191 50, 219 60,431 185,185 75, 500 26,188 289, 513 S e p t e m b e r 1941 » I n c l u d e s i n t e r b a n k deposits. 62 2 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 — S A V I N G S — S a l e s of war bonds 1 Table 1 4 . — S A V I N G S — H e l d by institutions [Thousands of dollars] [Thousands of dollars] 2 Series E Period 1941 1942: J a n u a r y . . February March April Mav June July August September Series G Total $1, 622,496 $207,681 $1,184,868 $3,015,045 105,241 122; 884 109,475 341,085 18,099 22,963 18,977 33, 272 108,987 124,866 105,035 154, 242 232, 327 270, 713 233,487 528, 599 667,411 397, 989 337,599 326, 660 421,831 433,223 508,118 453,967 509,855 77, 559 51,820 41,070 40,003 42,465 41,041 73, 691 52, 268 60,803 315,577 253,391 179,223 163,839 170,060 159, 681 319,053 191,020 184,026 1,060,547 703,200 557,892 530, 502 634,357 633,945 900,862 697, 255 754,684 September October. November December. ____ Insured savings a n d loans i E n d of period Series F 1 U. S. Treasury War Savings Staff, Actual deposits made to the credit of the2 U. S. Treasury. Prior to May 1941: "Baby bonds." Mutual savings banks 2 Insured commercial banks > 1940: J u n e December $2,020,123 2, 202, 556 $10,589,838 10, 617, 759 $12,754,750 13,062, 315 1941: J u n e September October November December 2,433, 513 2,487,146 2,518,158 2, 552,037 2, 597, 525 10, 606, 224 13,107,022 10,489, 679 13,261,402 February March April May June July August September 2, 589,466 2, 600,172 2, 612, 736 2, 633,014 2, 660,098 2, 736, 258 2, 757,929 2,798,621 2,834, 079 10, 354, 533 13,030, 610 ._ 1 Private repurchasable capital as reported to the FHLB Administration. 2 Month's Work. All deposits. s FDIC. Time deposits evidenced by savings passbooks. Table 1 5 . — 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 [Amounts are shown in thousands of dollars] . N u m b e r of associations Period a n d class of association Total assets N e t first mortgages held Private repurchasable capital Governm e n t investment Operations Federal Home L o a n B a n k N e w m o r t - N e w priPrivate v a t e investadvances repurgage loans ments chases Repurchase ratio ALL INSURED 1940: J u n e December 2,237 2,277 $2,709,184 2,932,305 $2,130,124 2,343,047 $2,020,123 2,202,556 $236,913 220,789 $124,133 171,347 $67,751 56,363 $43,626 65,586 $20,418 22,865 46.8 34 9 1941: S e p t e m b e r October November December 2,330 2,332 2,343 2,343 3,223.510 3,262,886 3,303,296 3,362,942 2,673,826 2,712,697 2,738,311 2,751,938 2,487,146 2,518,158 2,552,037 2,597,525 195,584 195.787 196,059 196,240 153,897 159,298 161,199 193,275 82,993 80,767 65,241 63,506 61,495 67,132 60,818 74,801 42,800 40,142 33,263 35,728 69.6 59.8 54.7 47.8 1942: J a n u a r y February March April May. June July August September 2,349 2,353 2,358 2,363 2,363 2,374 2,380 2,380 2,386 3,313,418 3,323,180 3,335,101 3,356,213 3,384,344 3,461,228 3,439,097 3,482,0.*6 3,513.096 2,754,777 2, 763,579 2, 774,108 2,790,135 2,800,673 2,827, 956 2,837, 925 2,856,588 2,866,497 2,589,466 2,600,172 2,612,736 2,633,014 2,660,098 2,736,258 2, 757,929 2, 798.621 2,834,079 191, 769 186,254 185,664 185,651 185, 710 185,783 176,995 169,493 169,202 180,360 172,260 167,535 161,571 157,870 170,066 152,302 139, 670 125,308 49,549 49,387 56,934 62,015 59.006 58,642 61,062 58,785 61,508 105,792 53,449 56,701 58.193 53,808 72,788 103,821 70, 262 68,082 118,666 47,229 47.086 40.443 31,503 26,152 87,059 41.534 40,114 112.2 88.4 83.0 69.5 58 5 35.9 83 9 59 1 58 9 1,421 1,437 1,725,817 1,871,379 1,403,289 1,544,494 1,266,041 1,386,823 197,268 181,431 90.489 127,255 47,435 37,715 29,404 44,531 11,022 12,135 37 5 27 3 1,459 1,458 1,462 1,460 2,076,618 2,103,674 2,127,561 2,173,326 1, 775,117 1,801,033 1,815,666 1,824,646 1,595,179 1,615,812 1,637,238 1,668,415 159,614 159,775 159,925 160,060 112,033 116,723 117,666 144,049 54. 786 52,507 41,910 41,182 40,254 44,341 39,212 48,872 26, 765 23,799 18,984 20,400 66 53 48 41 1,461 1,461 1,461 1,464 1,464 1,464 1,465 1.464 1,466 2,131,212 2,133,251 2,137,579 2,151,862 2,170,868 2,205,921 2,182,337 2,198. 357 2,214,101 1,824,376 1,829,218 1,832,341 1,842,422 1,846,790 1,849,400 1,852,972 1,856.269 1,861,062 1,658,444 1,662,269 1,667,983 1,683,232 1, 701,065 1,735,932 1, 748,584 1,767,665 1, 788,000 156,079 151,295 150, 776 150,776 150,776 150,776 143,324 136,779 136,518 132,843 127,235 123,748 118,639 116,327 127,623 113,347 103,180 92, 943 31,142 31,919 36,325 38,484 36,966 35,279 37,007 36, 620 37,987 70, 962 35,670 37,377 38, 301 35,759 47,495 69, 919 45, 724 44, 589 81,663 30,714 30,000 24,088 18, 515 14.794 58,508 26, 707 24,745 115 1 86 1 80 3 62 9 51 8 31 1 83 7 58 4 55.5 816 840 983, 367 1,060,926 726,835 798,553 754,082 815,733 39,645 39,358 33,644 44,092 20,316 18,648 14,222 21,055 9,396 10, 730 66 1 51 0 871 874 881 883 1,146,892 1,159,212 1,175, 735 1,189,616 898,709 911,664 922,645 927,292 891,967 902,346 914,799 929,110 35,970 36,012 36,134 36,180 41,864 42,575 43,533 49,226 28,207 28,260 23,331 22,324 21,241 22,791 21,606 25,929 16,035 16,343 14,279 15,328 75 5 71.7 66 1 59 1 888 892 897 899 899 910 915 916 920 1,182,206 1,189,929 1,197,522 1,204,351 1,213.476 1,255,307 1,256,760 1,283,699 1,298, 995 930,401 934,361 941,767 947,713 953,883 978,556 984,953 1,000,319 1,005, 435 931,022 937,903 944,753 949,782 959,033 1,000,326 1,009, 345 1,030,956 1,046,079 35,690 34,959 34,888 34,875 34,934 35,007 33,671 32. 714 32,684 47,517 45,025 43.787 42,932 41,543 42,443 38.955 36,490 32,365 18,407 17.468 20,609 23,531 22,040 23.363 24,005 22,165 23,521 34,830 17,779 19,324 19,892 18,049 25.203 33.902 24,538 23,493 37,003 16, 515 17.086 16.355 12,988 11.358 28,551 14,827 15,369 106 2 92.9 88.4 82 2 72 0 44.9 84.2 60.4 65.4 _. FEDERAL 1940: J u n e . December _.- 1941: S e p t e m b e r October November... December 1942: J a n u a r y February March.. April May.. June July... August September . . . . 5 7 4 7 STATB 1940: J u n e . . December 1941: S e p t e m b e r October November December.1942: J a n u a r y February March April May June July August September _ __ __ _. _ November 1942 _ 63 III. INSTITUTIONS INSURED BY T H E F E D E R A L SAVINGS A N D LOAN I N S U R A N C E CORPORATION B E T W E E N S E P T E M B E R 16, A N D O C T O B E R 15, 1942 Mortgage Moratoria (Continued from p. 44) DISTRICT NO. 3 PENNSYLVANIA: to relief similar to that granted to persons in military service for mortgages or purchase contracts on the property or for taxes and assessments. The extent of such relief is to be determined by the court. In addition, persons serving with the forces of allied nations are also given benefits of the Act under stated circumstances. R E L I E F A F T E R P E R I O D OF MILITARY SERVICE Pittsburgh: Progressive-Home Federal Savings and Loan Association, 825 Warrington Avenue. Reading: Provident Federal Savings and Loan Association, 433 Washington Street. DISTRICT NO. 4 NORTH CAROLINA: Elizabeth City: Albemarle Building and Loan Association, 503 East Main Street. I N S U R A N C E C E R T I F I C A T E C A N C E L L E D B E T W E E N S E P T E M B E R 16, AND O C T O B E R 15, 1942 KANSAS: Section 700, added to the Act by the recent amendments, establishes a procedure for granting relief after the period of military service in the case of any obligation incurred prior to the period of service, or any tax or assessment falling due prior to or during service. The new section provides that the individual may apply to a court at any time during his service or within 6 months thereafter, and that after appropriate notice and hearing the court may grant relief as provided for in the Act, unless in its opinion his ability to comply with the terms of the obligation or to pay the taxes has not been materially affected by reason of his period of service. LIMITS ON INSURANCE PROTECTION RAISED Among additional changes made was the raising of the limit of the amount of life-insurance policies which are eligible for benefits under the provisions of the Act with respect to the payment of premiums and other matters relating to these policies. An aggregate amount of insurance up to $10,000 on the life of any person in military service is now eligible. No policy found to be entitled to protection under this section of the Act shall lapse or otherwise terminate or be forfeited for the nonpayment of a premium becoming due and payable, or the nonpayment of any indebtedness or interest, during the period of military service of the insured or during 1 year after the expiration of this service. Directory (Continued from p. 57) C A N C E L L A T I O N OF F E D E R A L SAVINGS AND L O A N ASSOCIATION C H A R T E R B E T W E E N S E P T E M B E R 16, AND O C T O B E R 15, 1942 PENNSYLVANIA: Pittsburgh: Home Federal, Savings and Loan Association, 816 Warrington Avenue (merged with Progressive-Home Savings and Loan Association, 1411 Garson Avenue). 64 Federal Topeka: First Federal Savings and Loan Association of Topeka, 204 West Sixth Avenue. New Construction Standards for W a r Housing • T H E plans and specifications for all housing to be built during the remainder of the emergency will be subject to the new code of construction standards issued on October 28 by the War Production Board and the National Housing Agency. No priority ratings will be granted to projects which do not conform to these standards of design and material consumption. Principal provisions and restrictions of the new standards are as follows: (1) Single family dwelling units can be built only where there is definite a n d immediate need for t h a t t y p e of housing, a n d t h e n only when t h e essential utilities are contiguous to t h e lot; (2) All structures of w h a t e v e r t y p e shall be built adjacent to existing utilities so far as possible; (3) Use of softwood lumber is further restricted, a n d exterior walls m u s t be m a d e of masonry or lumber s u b s t i t u t e wherever possible. Use of softwood subflooring a n d softwood finished flooring is prohibited; (4) L u m b e r specifications shall not be restrictive, t h a t is, any grade or species of common lumber t h a t can serve t h e purpose, a n d is available, shall be used; (5) Floor areas for family dwelling units m u s t be k e p t within specific m a x i m u m limits based on t h e n u m b e r of bedrooms within the unit (i. e. t h e m a x i m u m floor area of a 2-bedroom, 1-story structure cannot exceed 720 square feet); (6) Permissible installations of heating u n t s are specified for t h e various t y p e s of dwellings to insure t h a t t h e capacity of t h e heating p l a n t will not exceed t h e a c t u a l requirements; and (7) Plumbing installations m u s t be so arranged t h a t n o t more t h a n one plumbing stack per unit will be required. Copies of the War Housing Construction Standards may be obtained from either the War Production Board or the National Housing Agency. Federal Home Loan Bank Review U. S . GOVERNMENT PRINTING O F F I C E : 1 9 4 2 FEDERAL HOME LOAN BANK DISTRICTS tmrnm BOUNDARIES OF FEDERAL HOME LOAN BANK DISTRICTS © FEDERAL HOME LOAN BANK CITIES. OFFICERS OF FEDERAL HOME LOAN BANKS BOSTON B. CHICAGO J. ROTHWELL, Chairman; E . H . W E E K S , Vice Chairman; W . H* C. E . BROUGHTON, Chairman; H . G. ZANDER, Jr., Vice Chairman; A. R. N E A V E S , President; H . N . F A U L K N E R , Vice President; L. E . D O N O V A N , G A R D N E R , President; J. P . D O M E I E R , Vice President; H . C. J O N E S , Secretary-Treasurer; P . A. H E N D R I C K , Counsel; B E A T R I C E E . H O L L A N D , Treasurer; CONSTANCE M . W R I G H T , Secretary; UNGARO & SHERWOOD, Assistant Secretary. Counsel. NEW DES YORK MOINES Chairman; C. B . R O B B I N S . Chairman; E . J. R U S S E L L , Vice Chairman; R . J . R I C H A R D - N U G E N T FALLON, President; R O B E R T G. CLARK SON, Vice President; SON, President-Secretary; W. H . LOHMAN, Vice President-Treasurer; J. M. MARTIN, Assistant Secretary; A. E . MUELLER, Assistant Treas- GEORGE MACDONALD, Chairman; F . V. D. LLOYD, Vice D E N T O N C. L Y O N , Secretary; H . B . D I F F E N D E R F E R , Treasurer. urer; EMMERT, JAMES, N E E D H A M & L I N D G R E N , Counsel. PITTSBURGH LITTLE ROCK E. T . TRIGG, Chairman; C. S. T I P P E T T S , Vice Chairman; R. H . R I C H ARDS, President; G. R. PARKER, Vice President; H. H. GARBER, Secretary-Treasurer. W. C. JONES, Jr., Chairman; W . P . GULLEY, Vice Chairman; B . H . WOOTEN, President; H. D . WALLACE, Vice President-Secretary; J. C . CONWAY, Vice President; W. F . T A R V I N , Treasurer; W. H . C L A R K , Jr., WINSTON-SALEM Counsel. H . S. H A WORTH, Chairman; E . C . BALTZ, Vice Chairman; O. K . L A ROQUE, President-Secretary; Jos. W. HOLT, Vice President-Treasurer; T . SPRUILL THORNTON, Counsel. CINCINNATI R. P . DIETZMAN, WALTER tary; Chairman; W M . M E G R U E BROCK, Vice L. MADDOX, Treasurer; T A F T , STETTINIUS & PORTLAND Chairman; D . SHULTZ, President; W. E . J U L I U S , Vice President-Secre- A. TOPEKA P . F. GOOD, Chairman; R o s s THOMPSON, Vice Chairman; C. A. STERLING, President-Secretary; R. H . BURTON, Vice President-Treasurer; JOHN S. D E A N , Jr., General Counsel. B E N A. PERHAM, Chairman; E . E . CUSHING, Vice Chairman; F . H . HOLLISTER, JOHNSON, General Counsel. President-Secretary; BOGARDUS, Vice President- Los ANGELES H. B . WELLS, Chairman; F . S. CANNON, Vice Chairman-Vice President; F R E D T . G R E E N E , President; G. E . OHMART, Vice President; C. HUSSELL PARKER, Secretary-Treasurer; DEVAULT Counsel, HAMMOND, DUSEN- BERY, Counsel. INDIANAPOLIS IRVING Treasurer; Mrs. E . M . J E N N E S S , Assistant Secretary; V E R N E BUSCHMANN, KRIEG & D. G. DAVIS, HURFORD, Chairman; President; PAUL C. E . ENDICOTT, BERRY, Vice Vice Chairman; President; F. Secretary-Treasurer: VIVIAN SIMPSON, Assistant Secretary. C. M. M. NOON,
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