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FEDERAL HOME LOAN BANK Vol. 12, No. 2 Washington, D. C. NOVEMBER 1945 Probably the most pressing problem of today for financial institutions is the challenge of tomorrow. Conservative, since they are trustees for other people's money, and having much at stake in the form of prewar investments, they must be especially alert to the needs of rapidly changing social conditions. Safety will not be achieved simply by holding fast to the anchors of yesterday but by adjusting the financial processes to the needs of the new day. General Manager, Federal Savings and Loan Insurance Corporation FEDERAL HOME LOAN BANK Contents Page SHOULD COMMISSIONS BE PAID TO SECURE S A V INGS? By Ralph H. Richards, President, FHL Bank of Pittsburgh. Vol.12 No. 2 NOVEMBER 1945 The Federal Home Loan Bank Review is published monthly by the Federal Home Loan Bank Administration under the direction of a staff editorial committee. This committee is responsible for interpretations, opinions, summaries, and other text, except that which appears in the form of official statements and signed articles. Each issue is written for executives of thrift and home financing institutions, especially those whose organizations are insured by the Federal Savings and Loan Insurance Corporation and are members of the Federal Home Loan Bank System. Communications concerning FULL EMPLOYMENT BRINGS RECORD G A I N IN S A V INGS OF INDIVIDUALS An analysis of what war has done to selected types of savings. DISPOSITION O F TEMPORARY W A R H O U S I N G OFFERS A D V A N C E MATERIALS SUPPLY A preview of an exhibit showing possibilities for re-use of these units. CHARACTERISTICS O F NEW H O U S I N G BEFORE THE WAR Based on a study by the Bureau of the Census. 31 34 42 43 STATISTICAL D A T A New fam ily dwelling units Building costs Savings and loan lending Mortgage recordings Sales of U. S. war savings bonds. F H A activity Federal Home Loan Banks Insured savings and loan associations Savings held by institutions . 54-55 55-56 56-57 57-58 58 58 58 59 59 REGULAR DEPARTMENTS Directory Changes of Member, Federal and Insured Institutions Worth Repeating News Notes Bookshelf Monthly Survey 38 39 40 46 49 material which has been printed or which is desired for publication should be sent to the Editor of the Review, Federal Home Loan Bank Building, Washington 25, Contents of this publication are not copyrighted D. C. • • • The Federal Home Loan Bank Administration assumes no responsibility for material obtained from sources other than itself or other instrumentalities of the Federal Government. 30 SUBSCRIPTION PRICE OF REVIEW.—A copy of the REVIEW is sent to each member and insured institution without charge. To others the annual subscription price, which covers the cost of paper and printing, is $1. Single copies will be sold at 10 cents. Outside of the United States, Canada, Mexico and the insular possessions, subscription price is $1.60; single copies, 15 cents. Subscriptions and orders for individual copies should be sent with remittances to the Superintendent of Documents, Government Printing Office, Washington 25, D. C. APPROVED BY THE BUREAU OF THE BUDGET Federal Home Loan Bank Revi SHOULD COMMISSIONS BE PAID TO SECURE MORTGAGE LOANS? This article is the counterpart of one by the same author in the August REVIEW on the payment of commissions to secure new savings. Following a critical evaluation of brokerage services in obtaining new loans, some specific recommendations for curbing this practice are outlined. By RALPH H. R I C H A R D S , President Federal Home Loan Bank oj Pittsburgh • T H I S discussion might be considered a sequel to a former article published in the August issue of the FEDERAL H O M E LOAN B A N K REVIEW on the subject, "Should Commissions Be Paid To Secure Savings Accounts?" T h a t discussion took a stand in opposition to the payment of commissions for obtaining savings, under any circumstances. This article will deal with commissions paid to obtain mortgage loans, which practice is quite prevalent in many cities of the country. The extent to which this practice is followed varies with the degree of the intensity of competition for mortgage loans both within the savings and loan industry and other lending agencies. Payment of commissions to brokers for obtaining mortgage loans should not be confused with the purchase of mortgages which have already been originated and for which a premium is paid. I t appears that the two situations, obtaining share capital and mortgage loans on a commission paying basis, are not exactly comparable and for that reason this discussion will concede that in exceptional cases there may be some justification for the payment of commissions to obtain the highest grade mortgage risks. To be more specific, the payment of commissions for obtaining mortgage loans is never justified as long as savings and loan associations are competing strictly among themselves, but there may be some justification if other mortgage lenders insist upon paying commissions for mortgage business. Share capital is not always a local problem, since savings money is apt to be somewhat mobile and will be attracted from other parts of the country, with or without commissions, where the rate of return is higher than that obtainable in the investor's immediate neighborhood. With few exceptions, funds loaned on the security of home mortgages are likely to be largely disbursed in the immediate terriNovember 1945 tory where the association is operating, which means that mortgage lending is a local problem. Therefore, the supply of mortgages, the prevailing rates of interest, and the incentive to pay commissions are dictated by conditions peculiar to different localities throughout the United States. It goes without saying that the commission incentive is present only in times of an abundant supply of funds seeking investment against a rather limited supply of mortgages. This condition has been and still is present to such a degree that it has given rise to the widespread employment of the commission-paying practice. I t would be inconceivable to contemplate the payment of commissions for mortgages when the situation is reversed. Competitive Results Our competitors outside the savings and loan business, like ourselves, have much money awaiting investment in sound mortgages on homes. For the most part, mortgage business today is created by the sale of existing real estate. Since the war brought about a virtual cessation of new home construction, there has been only so much real estate to be sold, hence only so much mortgage business to be originated. Thus, it is but natural that all active lenders will vie for the lessened volume of desirable mortgages that are created by the sale of existing properties. If our competitors outside the savings and loan business originate the practice of paying bonuses or commissions to brokers for mortgage business, are we not placed in the competitive position of having to do likewise? Therefore, as against the outside competitor, associations in many localities are compelled to deal with the source of supply if they wish to obtain any volume of the high grade home loans that today command a premium in brokerage circles. In other words, the situation is different where associations are competing among themselves exclusively, as compared to localities where there is keen competition from other lending 31 agencies outside the savings and loan business. Certainly, there exists a limited supply of very high grade home mortgage loans sought by outside lenders for which savings and loan management might consider paying a commission. If this type of outside competition is not met, it follows that our associations will obtain only inferior loans, the superior ones going to other institutions willing to pay commissions. In a situation such as this, payment of a commission is probably justified where the application is for a low percentage top-grade risk. Just where this line of distinction is to be drawn must, of course, be determined upon existing conditions which are peculiar to each locality. Non-Creative On the other hand, the payment of commissions for mortgage loans does not by any stretch of the imagination result in the creation of new business. The same number of houses are available, hence the same number of potential mortgages. Some may reason, however, that sales are greater in times like these and anything which stimulates sales does result in the creation of new business. This may be true, but it has already been pointed out that such activities result in higher prices and other accompanying evils. Thus, it must be concluded that commission paying itself is not a creator of new business for our industry. I t merely serves to shift mortgages from institutions not paying commissions to those which are willing to make such payments for mortgage loans. " . . . Associations today may quite properly compete for mortgage business on the selling points of lower interest rates and added services to the borrower. However, I consider the payment of commissions in an entirely different category and believe it will only lead to bitter competition, resulting in strife within the industry. Commissions are all right so long as but one or two associations are following the practice. However, when other associations find their mortgage volume drying up, what is more natural than that they too will follow suit, with the result that we end up finding almost every association out competing for mortgage loans purely on the basis of a commission rather than on the particular advantages of the association's service to the borrower? This is only the beginning, for as soon as other associations catch up with the leaders, then the most natural thing is for either the leaders or the followers to steal a march on the other associations and increase the commission paid to brokers. Thus 32 you create a vicious circle that results only in more bitter, if not destructive, competition. The final result is a lot of black eyes with the shifting of some mortgage loans, but no over-all increase in the portfolios of our institutions, to say nothing of the expenditure involved. The only person to profit is the mortgage broker." 1 Sales Prices In many localities the control of mortgages is pretty largely in the hands of real estate brokers because loans today are for the most part created through sales. The selling agent, therefore, is in a good position to steer mortgage financing into channels of his own choice. Oft-times the borrower does not approach the lending institution directly, but arrangements are carried on for him by the real estate broker. This is a very unfortunate circumstance and one which, for the ultimate good of the public and of the savings and loan industry, should be corrected. However, that is a subject unto itself. At any rate, it can be fairly said that extreme competition accompanied by the payment of commissions, usually leads to an over-liberal lending policy. Again, it certainly cannot be denied that a too-liberal lending policy on the part of any substantial number of lending institutions in a community is eventually bound to affect the selling price of existing properties. This means, then, that the commission evil is apt to exert a vital influence upon the price of homes. Recently there have been instances where financial institutions as a group have become more conservative in theii practices. As a result, the upward swing of selling prices in their areas has been considerably checked, If commissions do result in higher prices, there is bound to be an increase in competition which certainly, sooner or later, must result in not only highei prices but in inferior loans and much ill-feeling between competitors. A n Expensive Practice On the score of expense, it is perhaps axiomatic tc say that acquiring mortgage loans on a commission to-broker basis is costly. If an association feeL obliged to get mortgage loans in this manner, th< commissions paid are just as much a part of its operating expense as the salary which might be paic to a public relations and business-getting executive o: employee. There are known to be cases where ou i From address by Ralph H. Richards, Tenth Annual Stockholders' Meetir of the Federal Home Loan Bank of Pittsburgh at Philadelphia, Pennsylvani March 11, 1944. Federal Home Loan Bank Revie\ institutions have spent as much as 10 percent of their total gross operating income for mortgage loan commissions in an active lending year. This throws quite a different light on the generally accepted concepts of normal savings and loan operation when the payment of commissions for new mortgage business reaches such proportions. Also, a factor frequently overlooked is that the income from a mortgage investment acquired at the cost of a brokerage commission is considerably less than the contractual interest rate should produce in the first year. Take, for example, a $5,000 directreduction loan carrying a 5-percent interest rate with monthly payments of $50 acquired by payment of a 2-percent, or $100, commission.' The income yield on the average of this investment for the first year is but 2.94 percent if we apply the commission cost against interest income. While it may be argued that over the life of the loan, the cost of commission against all interest income derived from the investment is negligible, yet it must be reasoned that any substantial payment of commissions in a given year does have a marked effect upon earning power for that particular period. Moreover, a loan acquired by payment of a commission carries no assurance that it will stay in the association's portfolio, and in these days of rapid property turnover, it is quite likely that many investments acquired at the cost of a commission and repaid prematurely may prove very expensive to the lender from a net earning viewpoint. Self-Control As indicated before, the intensity of competition and, therefore, the practice of paying commissions varies in different sections. There are parts of the country where the evil does not exist and other sections where the problem has been met and corrected by agreement, in a cooperative way, among the lending institutions of those localities. I n some places, associations, for their own protection and mutual welfare, have banded together in a move to control the commission business within the industry. Some worthwhile benefits have been derived from such endeavors as, for example, all associations in a city agreeing among themselves not to pay commissions for any loans. I n other cases, associations have agreed among themselves not to pay commissions for certain types of mortgages or to pay only a certain rate for especially desirable mortgage business. These actions, of course, are in themselves a recognition of evil in the commission practice, and an November 1945 endeavor to control something which is an undesirable and harmful influence. At the same time, any program to control or abolish abuses cannot hope to succeed unless all associations in a given community or area unselfishly work together for the common good. A few holdouts in a movement of this kind must necessarily destroy the effectiveness of the control. If the savings and loan associations in any given community are able to agree among themselves that commissions should not be paid for obtaining mortgage loans, it would appear that a second step should be attempted; that is, an organized effort should be made to come to an understanding with our competitors looking toward abolishing such payments by all lenders. If only bad effects accrue from the practice, it certainly must be concluded that the payment of commissions is no more desirable to our competitors than it is to our own business. Future Prospects I t may be that as new home construction resumes and lenders generally find more outlets for mortgage money, the commission evil will disappear. For the good of the savings and loan industry and the home financing business, let us hope this change soon takes place. I n the meantime, however, savings and loan management might do well to survey the harmful effects on the morale and dignity of our business which a period of widespread scrambling and bidding for mortgage business within the industry has caused. Many associations have placed a large volume of mortgages on their books at the price of commissions higher than a neighboring institution would or could afford to pay. From a long-range viewpoint, has the advantage momentarily gained been worth the cost? Whether an association be Federally or Statechartered, it can adopt flexible lending plans in a manner which will permit it to compete for any type of loan. I t seems but good financial common sense for the management of every association to strive for the highest grade loans, as well as some bearing a higher degree of risk compensated for by a higher rate of interest. I t would seem far better policy from every point of view for our institutions to make their lending plans so attractive that it will not be necessary to pay commissions in order to obtain a high grade mortgage portfolio. In addition to offering an attractive rate of interest there are many other features which can be (Continued on p. 59) 33 FULL EMPLOYMENT BRINGS RECORD GAIN IN SAVINGS OF INDIVIDUALS Estimates of selected forms of individual savings indicate a marked gain in 1944 as war and civilian employment absorbed substantially all of our expanded labor force. Preliminary estimates show that this upward movement in savings continued in the first half of 1945. However, the impact of reconversion is expected to have significant effects on savings trends. • WAR and civilian activities absorbed substantially all of the labor force in 1944, including supplemental, duration workers. Increased basic wage rates, overtime and shift premiums raised individual earnings. With more money being paid to more workers and corporate dividends running high, income payments to individuals reached an all-time record last year. Limited spending opportunities, price control and a concerted appeal for thrift as an anti-inflationary measure channeled an unprecedented volume of this income into various forms of savings. At the end of the year total savings in selected forms, i. e. investments in savings and loan associations, reserves on life insurance policies, time deposits in insured commercial banks as evidenced by passbooks, accounts in mutual savings banks, postal savings and the redemption value of U. S. savings bonds (series A through E and 2)i percent postal savings bonds) amounted to $107,042,000,000 according to estimates by the Division of Operating Statistics of the Federal Home Loan Bank Administration. This was the first time that these savings exceeded the one hundred billion dollar mark. The high volume of savings reported as of last December 31 resulted from a $20,000,000,000, or 23percent, gain over the previous year-end. Thus, 45 percent of the entire wartime (1942 through 1944) rise of $45,000,000,000 developed in 1944 alone. Percentage distribution of changes in long-term savings of individuals, 1939-1944 1939 1940 1941 1942 1943 50.0 14.0 8.1 1.9 25.2 U . S. savings b o n d s ._ _-_ Postal savings. _. 0.9 2 H p e r c e n t postal savings b o n d s . . - 0 . 1 47.7 12.8 4.0 6.2 28.6 0.8 -0.1 54.0 4.5 -2.9 7.9 35.4 1.1 24.5 7.2 1.5 2.8 63.7 0.3 10.5 18.7 6.9 3.7 57.5 2.7 0) 0) 0) 100.0 100. 0 100.0 100.0 Life i n s u r a n c e companies M u t u a l savings b a n k s . . . . Total 1 Less than 0.05 percent. 34 . _ . 100.0 1944 14.1 24.0 8.0 4.0 47.4 2.5 (0 With the same general economic conditions carrying over into the opening months of the current year, indications are that during the first six months of 1945 savings continued to expand at a rapid rate even though it was lower than last year. Preliminary estimates place the aggregate as of June 30 at about $113,000,000,000. This being the nearest possible approximation of the end of hostilities, total wartime expansion was about $51,000,000,000, or 83 percent. As yet, data on trends since June are not available. However, recent estimates of wage and salary income in the postwar period, prepared by the Bureau of Labor Statistics, 1 contain information which may be indicative of future developments: ". . . In 1944 these payments reached their highest annual level of 98 billion dollars. Several of the forces that contributed to the wartime rise, however, can be expected to reverse themselves, now that the war is over, and will tend to reduce the volume of wage-salary income. Thus, by 1947, unless counterbalanced by other changes, the reduction of the workweek, the loss of shift premiums in the leading war industries, and the transfer of workers from war production to lower-paid civilian production may be expected to reduce wage-salary income by 16.7 billion dollars. This reduction, however, may be partially offset by increased employment following demobilization of the armed forces . . ." From this, it is apparent that until the process of reconversion is completed, the principal factor which controls the volume of new savings, that is, wage and salary payments, may sink considerably below the wartime rate. Furthermore, many lines of civilian products in curtailed supply or completely off the market during the war will again be competing for the income dollar. Therefore, it would seem that some abatement, if not a temporary reversal, in savings trends is to be expected for 1945 and 1946. 100.0 i "Income From Wages and Salaries in the Postwar Period," by Robert J. Myers and N. Arnold Tolles, Monthly Labor Review, September 1945. Federal Home Loan Bank Review Analysis of 1944 Gain How did the various forms of savings contribute to the $20,000,000,000 rise estimated for 1944? I n general, there was a continued accentuation in the flow of new savings into the more liquid forms. As in the two preceding years, the bulk of the year's increase was concentrated in U. S. Government savings bonds, which were responsible for slightly less than half of the increment. Insured commercial banks, following the pattern set in 1943, had the second largest dollar gain, the expansion in their time deposits accounting for nearly one-fourth of the combined increase for all selected types, and life insurance companies had the third largest share of the rise, 14 percent. Mutual savings banks, operating in 17 states, accounted for 8 percent of the 1944 increase. Savings and loan associations were responsible for 4 percent, and postal savings showed a gain equivalent to 2.5 percent of the combined increase. Three of the selected forms of savings—time deposits in insured commercial banks, investments in savings and loan associations and accounts in mutual savings banks—claimed larger proportions of the 1944 gain in savings than they did during the preceding year. A comparison of the relative contribution t h a t each medium of savings has made to the aggregate 1944 growth with the proportion to total that each type represented as of the beginning of that year, will give some indication of the effect of our wartime economy upon the general structure of individual long-term savings. For instance, U. S. savings bonds (series A through E) which on January 1, 1944, represented slightly less than 23 percent of total savings, accounted for almost one-half of the gain which occurred during the succeeding 12 months. Time deposits in insured commercial banks likewise showed an abnormal volume of growth by this standard. Representing one-fifth of the total figure at the beginning of the year, these accounts claimed almost one-fourth of the total 1944 increment. Postal savings was the only other category in which this condition occurred. Representing about 2.1 percent of total savings a t the first of last year, these accounts were responsible for about 2.5 percent of the year's growth. I n the remaining groups, the proportionate contribution to the year's gain was below their relative proportions to total savings at the beginning of the year. Life insurance, which represented almost 36 percent of individual savings on January 1, 1944, contributed slightly more than 14 percent of the growth during that year, while savNovember 194S PERCENT CHANGE OF PRIVATE INVESTMENT IN SAVINGS AND LOAN ASSOCIATIONS BY CLASS OF ASSOCIATION-CALENDAR YEAR 1944 .5 ALL MEMBERS ! 0 ^ + 5 P ERC ENT +10 +15 ~ FEDERALS ^ INSURED-STATE NONINSURED-STATE ^ +-20 +25 1 • ffS" •• ' NONMEMBERS ings and loan associations, which started the year with 6.3 percent of total savings, were responsible for 4.0 percent of the expansion, and mutual savings banks showed ratios of 13.5 and 8.0 percent, respectively. Analysis of Wartime Growth An examination of savings during the war (1942 through 1944) discloses trends generally similar to those noticed in the single year 1944. That this is true is some indication of the magnitude of changes in the structure of savings over the past three years. The foregoing table furnishes the basis for a comparison of the three war years with the three years immediately preceding the war. In following this, it should be borne in mind that the total volume of new savings each year has exceeded the volume of the preceding year. Since 1941, the rate of annual gain has expanded sharply, the $20,000,000,000 gain in 1944 being about six and threequarters times as great as the gain in 1939. In general, it can be seen that as the volume of new savings has mounted, a greater proportion of each year's increment has been diverted into the more liquid channels. U. S. savings bonds, showing the most spectacular rise, had moved into first place by 1942, their 64 percent of the total gain in that year edging out life insurance which then had the second largest rise. By the next year, there was a recession in the proportion of savings flowing into U. S. bonds and this continued into 1944. More significant, though, has been the growing volume of funds pouring into time deposits in commercial banks. By 1943, this was sufficient to rank second largest in the annual gain in savings, moving life insurance 35 back into third position, and during 1944, substantially the same relationships have been maintained. I n the two years preceding our entry into the war, the proportionate flow of new savings into savings and loan associations showed a distinct rise, gaining from 1.9 percent in 1939 to 7.9 percent in 1941. During the first war year it fell off proportionately to 2.8 percent but in the two succeeding years gained steadily to reach 4.0 percent by 1944. The pattern of change in deposits in the mutual savings banks probably reflects in part the retarded improvement of economic conditions in the Northeastern States, where the bulk of these institutions are located. Over a 24-year period, deposits in these institutions have shown an extraordinary measure of stability, indicating only a comparatively slight decline during the past depression. However, their upward movement was again interrupted in 1941 when deposits showed a small drop. During the three following years they have accounted for a steadily increasing proportion of annual savings growth, increasing from 1.5 percent in 1942 to 8.1 percent in 1944. A n Interpretation of Causes An interpretation of trends, particularly during the war years, must take into account the principal characteristics of each of the various selected forms of savings. I t has been observed that during the three war years there has been an accentuation in the flow of new funds into such liquid forms as U. S. savings bonds and time deposits in insured commercial banks. This is probably the effect of institutional characteristics as well as a somewhat fixed pattern of savings habits. To some degree it is also the expression of a preference for liquidity, understandable in view of the uncertain duration of war employment. Prior to the war the bulk of new savings tended to flow into life insurance companies. The growtb of insurance, uninterrupted even during the depression of the thirties, has led to the conclusion that this is, Estimated savings of individuals in selected media, 1920-1944 [Millions of dollars] Savings a n d loan associations 1 D e c e m b e r 31 1920 1921 1922 1923 1924 1925 1926 1927.. 1928 1929 1930 r _. „ - -. 1931 1932 1933 1934 1935 . 1936 1937 1938 ._ 1939 1940_ 1941 1942 1943_ 1944 . -_.-- i Life insurance companies 2 Mutual savings banks s Insured commercial banks 4 Postal savings « War savings securities a n d U . S. savings bonds 7 2H% postal savings bonds « Total Net increase during year $1,741 1,965 2,210 2,626 3,153 3,811 $5, 814 6,175 6,625 7,349 8,<|48 8,927 $4,806 5,541 5,985 6,484 6,912 7,349 $6, 532 7,457 8,156 9,271 10,282 12,205 $166 148 135 135 137 138 $5 4 3 3 2 2 $761 652 730 373 411 376 $19,825 21,942 23,844 26, 241 28,945 32,808 $2,117 1,902 2,397 2,704 3,863 4,378 5,027 5,762 6,237 6,296 9,939 11,049 12, 213 13, 238 14,096 7,799 8,352 8,731 8,797 9,384 14, 288 15, 253 15,304 15,032 14, 286 143 153 158 169 250 3 3 5 7 8 356 245 95 36,906 40,082 42, 268 43, 480 44, 320 4,098 3,176 2,186 1, 212 840 5,916 5,326 4,700 4,358 4,104 14, 679 14, 858 15,011 16,052 17, 542 9,939 9,890 9,506 9,670 ,9,829 12,096 9,341 8,729 9,709 10, 575 613 915 1,229 1,232 1,229 14 30 54 73 104 153 43, 257 40, 360 39, 229 41,094 43, 536 -1,063 -2,897 — 1,131 1,865 2,442 3,926 4,011 4,035 4,092 4,304 19,133 20, 510 21,858 23, 381 25,025 10,013 10,126 10,235 10,481 10,618 11,491 12,100 12,196 12,622 13,062 1,291 1,303 1,286 1,315 1,342 99 95 92 90 87 475 964 1,442 2,209 3,195 46,428 49,109 51,144 54,190 57, 633 2,892 2,681 2,035 3,046 3,443 4,652 4,910 5,494 6,305 27, 393 29,610 31, 256 34,100 10,490 10, 621 11,707 13, 332 13, 261 13, 916 16, 864 21, 728 1,392 1,417 1,837 2,342 85 84 83 82 4,750 10, 526 19, 574 29,153 r 62,023 * 71,084 r 86, 815 107,042 4,390 9,061 15, 731 20, 227 i Estimated private investments, excluding pledged shares. Estimates for 1941 and 1943 revised. 2 Estimated reserves, unpaid dividends, dividends left to accumulate and surplus to policyholders, less premium notes, policy loans and net deferred and unpaid premiums. Estimates for 1941 through 1943 revised. Source: The Spectator, Chilton Company, Inc., Philadelphia, Pa. 3 Deposits. Sources: 1920 through 1937, Comptroller of the Currency; 1938 through 1944, The Month's Work, National Association of Mutual Savings Banks. * Deposits evidenced by passbooks. 1920 through 1933 data based on figures reported by the Comptroller of the Currency covering all active banks except mutual savings banks; for 1934 and subsequent years, figures represent savings deposits in insured commercial banks. Figures for 1942 through 1944 are estimates based on total time deposits. Source: Federal Deposit Insurance Corporation. * Outstanding principal and accrued interest on certificates of deposit, outstanding savings stamps and unclaimed deposits. Source: Post Office Department. * Excludes such bonds held by the Postal Savings System. Source: Treasury Daily Statements and Post Office Department. 7 Current redemption value. From 1920 to 1928, War Savings Securities; 1935 to May 1,1941, U. S. Savings Bonds, Series A-D; and May 1,1941 through 1944 also includes U. S. War Savings Bonds, Series E. Source: Treasury Daily Statements. * Revised. 36 Federal Home Loan Bank Review perhaps, the most stable form of savings in that people resort to curtailing life insurance only as a last measure. While life insurance is assumed to be the least likely form to show a decline, there are also reasons for believing that it might be one of those less likely to show abrupt gains as the result of an admittedly temporary rise in the annual rate of savings. I n other words, a person would not reasonably be expected to increase the amount of life insurance carried, to the limit supportable by temporarily increased earnings, since premium payments must continue at a fixed rate after the war. This would seem to be one plausible explanation of the inability of insurance to maintain its prewar position with respect to the investment of new savings. I n the case of savings and loan associations, the maximum rate of investment per account has frequently been fixed as a matter of operating policy. Thus, to a large extent, there also has been a force restraining the flow of savings into these institutions. As in the case of savings and loan associations, mutual savings banks have encouraged systematic thrift. To a lesser extent, subject principally to the savings habit, individual accounts might be expected to increase at a comparatively even rate as has been demonstrated by their record over a long period of years. Another factor which might be taken into consideration in the case of mutual savings banks is that these institutions operate in only 17 states rather than on a nationwide basis. From these assumptions it would appear that the longer-term types of savings were saturated by the sudden and probably short-term rise in the annual savings rate, and that the excess flowed into more liquid forms, namely, U. S. savings bonds and time deposits in commercial banks. However, this concept does not completely state the case, in that the flow of individual savings into U. S. savings bonds was as much the product of patriotic motives as it was the choice of a sound investment. This consideration may account in part for the fact that it was not until 1943 that the volume of new savings going to commercial banks exceeded the increase shown by life insurance companies. A n Interpretation of Effects While the foregoing considerations relate to the probable causes which produced the recent pattern for the investment of new savings, other assumptions may be made as to the character and stability of the total accumulation. The dominating conNovember 1945 670732—45—2 sideration in this respect is that the growth in savings during the past three years took place under a wartime economy when not only were income payments high, but many lines of civilian commodities were either off the market entirely or were available only in limited supply. From this, it would seem that a substantial proportion of liquid savings are probably earmarked for postwar spending. Varying with the needs of the individual, this may mean anything from a luxury item to deferred maintenance on a home or a personal reserve against reconversion unemployment. Family Savings On this point, the distribution of savings by family income group is of significance. Unfortunately, virtually no available information on this subject is adequate for the formulation of broad conclusions. However, the recently published findings of several pilot surveys x conducted in Birmingham, Alabama, and Douglas County, Illinois, by the Bureau of Agricultural Economics for the Federal Reserve Board, show an interesting distribution, even though they may not be interpreted as being representative of the county as a whole. According to these studies, respondents with weekly incomes of less than $55 constituted 73 percent of the replies received from Douglas County nonfarm areas, yet they accounted for but 37 percent of total liquid assets. I n Birmingham, respondents with weekly incomes of less than $55 made up 59 percent of the replies but accounted for only 15 percent of total liquid assets. Here, it should be noted that the Board's survey includes in its definition of liquid assets U. S. savings bonds, time deposits and demand deposits, and is, therefore, not identical with the selected forms of savings heretofore referred to. Another significant finding of the Federal Reserve Board survey was that the greatest number of nonfarm savers gave security purposes as their reason for saving, while the second most popular reason was the acquisition of specific permanent assets, including home purchase, remodeling and mortgage debt retirement. Security has probably been one of the dominating motives for saving at almost all times. If this is true, it may well be that, despite a curtailment of income payments during the reconversion period, the total of the selected forms of savings may continue to grow, although at a slower rate. Also, it i "Surveys of Liquid Asset Holdings," Federal Reserve Bulletin, September 1945. 37 would seem reasonable to expect a deceleration or shrinkage to appear first among the more liquid forms. One factor which may tend to maintain a continued expansion in the volume of savings, in the face of expanding consumer goods purchases, is the tendency of many persons to prefer to buy on credit while preserving their accumulations of liquid savings. However, the extent to which this will be a significant factor, particularly among the lower income groups, will depend almost entirely upon the level of employment and wages which our postwar economy sustains. '* DIRECTORY CHANGES S E P T E M B E R 1 6 - O C T O B E R 15, 1945 Key to Changes *Admission to Membership in Bank System ••Termination of Membership in Bank System #Federal Charter Granted ##Federal Charter Canceled 01nsurance Certificate Granted 001nsurance Certificate Canceled DISTRICT N O . 3 PENNSYLVANIA: Philadelphia: **##00Protected Future Federal Savings and Loan Association, 3701 North Broad Street. DISTRICT N O . 4 NORTH CAROLINA: Rocky Mount: 0Citizens Savings and Loan Association, 126 North Main Street. DISTRICT N O . 5 KENTUCKY: Hazard: **Hazard Federal Savings and Loan Association, Main Street. DISTRICT N O . 7 ILLINOIS: Forest Park: 0First Savings and Loan Association of Forest Park and River Forest, 7500 Madison Street. Jacksonville: 0Jacksonville Savings and Loan Association, #l Public Square. DISTRICT N O . 10 OKLAHOMA: Bartlesville: •Peoples Savings and Loan Association, 321 Dewey Avenue. DISTRICT N O . 12 CALIFORNIA: El Centro: •Imperial Savings and Loan Association, 146 South Sixth Street. Glendale: •0United Savings and Loan Association, 116 West Wilson Avenue. Hayward: •Hayward Savings and Loan Association, 646 Main Street. Richmond: 01ndustrial Savings and Loan Association, 1301 Macdonald Avenue. NATIONAL HOUSING AGENCY John B. Blandford, Jr., Administrator FEDERAL HOME LOAN BANK ADMINISTRATION John H. Fahey, Commissioner 38 Urban Trend Resumed T H E population trend toward urban centers, interrupted in the decade of the thirties, was resumed during the last four years, according to data published by the Bureau of the Census. In spite of a decline of 5,000,000, or 4 percent, in the civilian population of the country between April 1940 and July 1944, population of cities of 100,000 or more increased almost 3 percent. The number of people in places of 2,500 to 100,000 remained relatively stationary. Together these two segments accounted for 60 percent of the number of civilians on the latter date compared with 57 percent before. During this period rural population dropped 11 percent, chiefly in farm areas, which showed a decline of 15 percent compared with a 5-percent decrease in rural nonfarm areas. The figures also show that the urban birth rate has risen more sharply than that in rural areas. Effects of War The fact that the number of women has increased 5 percent while men have decreased by 13 percent is an obvious effect of the war. However, the Census release points out that the progressively greater decrease of men in rural areas is not to be taken as a measure of the respective contribution of these regions to the armed forces inasmuch as these figures also reflect internal migration. Another obvious development in the civilian population trend during wartime was the increase shown in both the very young and the comparatively old groups. During the four years studied, persons under 14 years of age increased from 23 percent of total population to 26 percent. At the same time, those from 45 up represented an increasing proportion (from 26 to 30 percent) while the intermediate brackets declined from 50 percent to 45 percent of the total. This study should not be considered as necessarily indicative of future population trends. I t is simply a measure of the effects of the war on civilians in this country. Until the armed forces are demobilized and the losses of war assessed, it is impossible to make any definite statements about the future composition and residence trends which may be expected in the nation. Federal Home Loan Bank Review * * * WORTH REPEATING * * * TRANSITION DANGERS: "So long as we remain in this period of physical transition, wTe shall continue to be faced with inflationary pressures. There is a n enormous p e n t - u p demand, particularly for capital a n d consumers' durable goods. T h e budget a r y deficit will be large. Accumulated individual and corporate savings are enormous. We are starved for new houses, new cars, new radios a n d the like. " W e must, therefore, a t present keep up our guards against inflation, not only through price and other direct controls, b u t through taxation. I t would be pathetic if, after besting t h e enemy of inflation all through t h e war, we allowed it to overtake us on t h e home-stretch. " A t t h e same time, we cannot overlook t h e deflationary dangers. . . If the physical changeover of our economy is delayed or hampered, b y fiscal or other impediments, t h e t e m p o r a r y p h e n o m e n a of deflation m a y t a k e on a more p e r m a n e n t a n d inflexible character. If business lacks confidence in t h e future, enterprise will be timid. If workers a n d consumers lack confidence, t h e y will contract their purchases a n d hoard their savings. I n either of these events, the p r o m p t expansion of our peacetime economy will be endangered." Fred M. Vinson, Secretary of the Treasury, before the Ways and Means Committee of the House of Representatives, Oct. 1, 1945. HOUSING FOR DEMOCRACY: ' ' F r o m t h e social aspect, a supply of good housing, sufficient to meet t h e needs of all families, is essential to a sound a n d stable democracy. Every family ought to h a v e a , decent home in which to live. T h e character of t h a t home determines more t h a n a n y thing else t h e character of family life, the conditions in which children grow up, and t h e a t t i t u d e of people toward t h e community a n d t h e Government. "Housing is long-lived, a n d t h e improvement of housing conditions requires foresight and m a n y years of planning a n d work. Housing is substantial and visible to all a n d determines a large p a r t of the aspect of our cities a n d our countryside. Slums are not only a deterrent to the develop- November 1945 ment of a sound citizenry, b u t they lower the people's desire for a t t r a c t i v e surroundings and the hope of improving their conditions. " F r o m t h e point of view of industry and employment, residential construction may be expected to make a major contribution to our postwar economy. T h e building of a million and a quarter homes a year would stimulate an expenditure upward of five t o six billion dollars annually, and, directly and indirectly, provide for three to four million j o b s . " Senator Robert |A. Taft, in address in United States Senate, August 1, 1945. FACE-LIFTING: "Face-lifting of our cities will, then, entail some public expense, even if most of t h e job is done by p r i v a t e enterprise. B u t it will be money well spent to recapture c o m m u n i t y values t h a t h a v e been recklessly squandered in t h e past. By reclaiming decayed areas, cities will create new tax values; t h e y will help to lift t h e pall of degradation a n d contagion from large sections of their i n h a b i t a n t s ; they will recapture a good deal of land t h a t is now wasted in useless streets, poorly planned subdivisions and unsightly vacant lots. No less important, t h e y will create a large volume of employment. T h e y will give new tone a n d spirit to their comm u n i t y life." Merlo Pusey, The Washington Post, Sept. 18, 1945. ENCOURAGEMENT: " N e w financing a n d technical devices should be m a d e available to t h e general r u n of cont r a c t o r s to stimulate private construction . . . a n d especially housing in t h e middle and low-rental fields. E n couragement should be given to t h e elimination of obsolete building codes; modification of restrictive practices; use of improved materials a n d construction m e t h o d s designed to reduce costs, increase effciency a n d t h u s widen t h e m a r k e t for new construction. A wider a n d more stable m a r k e t should carry with it a greater assurance to t h e construction workers of stable a n n u a l incomes." Postwar Economic Policy and Planning, Seventh Report of the House Special Committee on Postwar Economic Policy and Planning. CONSTRUCTION ECONOMY: " T h e principal hope of reducing residential construction costs lies in t h e economies possible through mass production as applied in building large developments. These can be very substantial and are something t h a t every builder now should be studying, because it seems probable t h a t a large p a r t of t h e next housing boom will be on newly opened land outside the thickly settled centers. At first, however, we should expect most of t h e new homes to be individual dwellings built singly or in small groups, as was t h e usual practice before the w a r . " Raymond P. Harold, President Worcester Federal Savings and Loan Association, Real Fstate News Letter, September 1945. SIMPLIFIED TAX STRUCTURE: "Clearly, methods of financing public expenditures will constitute a major phase of t h e p o s t w a r problems confronting t h e people of t h e United States. We m u s t compose our differences of opinion to achieve our common objective—a sound, welladministered tax structure under which we may meet t h e revenue needs of t h e federal, s t a t e a n d local governments." Dixwell L. Pierce, Secretary, California State Board of [Tax] Equalization, Taxes, September 1945. VETERANS' LOANS: " T h e mere fact t h a t every eligible veteran is entitled to a g u a r a n t y under Title III does not indicate t h a t he should borrow money beyond his capacity to p a y . If he is not financially or otherwise ready now to b u y a home or farm or business, he should be intelligently a n d patiently advised to wait. If approached in t h e proper manner, he can be encouraged a n d not discouraged. "Unsound loans never made b e t t e r economic conditions in a n y commun i t y — a n d t h e economic potentialities inherent in t h e operation of this Act a r e tremendous. T h a t operation can work good or evil in your community . . . depending upon t h e m a n n e r in which it is carried o u t . " William C. McClelland, Loan Guaranty Officer, Veterans' Administration, before annual convention of Massachusetts Cooperative Bank League, Swampscott, Mass. 39 Improvements in heating equipment While startling innovations and revolutionary changes are not forecast for the immediate future, heating equipment will be streamlined and simplified in new homes. The emphasis will be placed on extreme compactness, higher efficiency and lower maintenance costs. One direct result of wartime fuel shortages is the recognition of reed for an all-purpose boiler. Manufacturers have found that boilers can be built to work with equal efficiency on solid, liquid or gas fuel. Such boilers can be converted easily and inexpensively from one fuel to another. Radiant heating, according to the Plumbing and Heating Industries Bureau, will be widely used in commercial, industrial and institutional buildings as well as in residential structures. This system provides heat by circulating hot water through coils embedded within the walls, floors and ceilings of a structure. The equipment can be constructed to burn any type of fuel. Heating experts envisage extensive use of packaged heating units as larger numbers of prefabricated houses are erected. The heating contractor would install a packaged unit which probably would include boiler, radiators, pipe, valves, fittings and necessary controls. Britain builds its first permanent postwar house The first permanent-type house to be built in Britain since 1939, for other than government use, was started September 17. Located in Leicester County, this dwelling and another like it are the first of 26 pairs to be constructed from winning plans chosen in a competition sponsored by the Home-Building Industries Standing Committee. Prior to public inspection, one house will be furnished through the cooperation of the Council of Industrial Design. Serving as "pilot" projects, these demonstration houses are expected 40 to provide both technical construction data and information on public reaction to the new designs. They will incorporate such improvements as compact plumbing without unsightly pipes, central hot-air heating systems, built-in cupboards, weatherproofing and sound insulation superior to prewar standards. Experts from 30 organizations representing such industries associated with housing construction as lumber, copper, concrete and heating, will assist the builders. All houses will be constructed to meet specifications of the National Housebuilders Registration Council which means five inspections during the building and a two-year written guarantee of performance. Temporary houses sold to France Over 8,000 temporary dwelling units have recently been sold to the French government by the FPHA, acting as disposal agency under Surplus Property Administration procedure. These units, which brought a cash payment of $6,954,000, will be used to house French dockworkers and will thus facilitate the U. S. Army's redeployment program by providing living accommodations for necessary personnel. The houses, originally intended for lend-lease shipment to Great Britain, are packaged units ready for shipment and not economically usable in this country since they were made without glazing, wiring or heating systems which were to be provided by the purchaser. They are subject to deterioration while unassembled and their sale to the French will permit their being put into use before such damage has occurred. Experimental homes for G l students Homes for student veterans and experience for architectural and engineering students is the goal set for a hundred-unit housing project to be erected on the campus of Massachu- setts Institute of Technology. On the 10-acre site, the Institute will build experimental prefabricated houses of glass, plywood, steel and other materials. Solar and radiant heating systems, insulation, air conditioning, new materials and techniques will be observed under family living conditions. Actual-use tests will record the practicability of such things as cinderblock construction, chemically preserved wood, and electronic controls. Tenant comments and complaints will be requested and carefully checked against research findings. Eventually another housing development of permanent type dwellings will be built for graduate students and instructors. This second project will serve as a laboratory similar to the prefabricated units in MIT's efforts to stimulate better homebuilding through educational research. New building materials emphasize utility and economy Builders and building supply dealers have gone to some pains in the past year to dispel the pipe-dreams of potential home buyers who envisioned "revolutionary" innovations in the postwar house. Lest prospective owners withhold their purchases in anticipation of "disappearing walls" and elaborate gadgets, emphasis has been placed upon the point that the new homes of tomorrow will generally resemble those of prewar days. While this campaign to bring the buying public back to earth may have pricked many imaginative bubbles, research in the development of new or improved materials and improvements in home design have been taking place. The emphasis, though, is on utility, durability and economy—features which will appeal to a home-buying family about to make the largest single investment of a lifetime. Interested in expanding their peacetime markets, a long list of industries are looking to the housing field. Among the non-ferrous metals group is the aluminum industry which is Federal Home Loan Bank Review preparing to offer window and door frames and sashes, radiators, interior wall panels and moisture-insulating foil. As a building material, aluminum offers extreme weight economy and low upkeep, due to its noncorrosive feature. In heating equipment its high heat transfer properties may be of great importance. As in the past, the gypsum industry is making a strong bid for trade in new products. Among the postwar lines it expects to offer is sheathing which may play a particularly important role in view of the shortage of seasoned lumber. Another product will be aluminum foil gypsum lath providing insulation against moisture accumulation. New uses are also being found for asbestos cement, familiar as a roofing and side-wall material. A familiar scene in building has been the hand sizing of bricks to fit masonry construction around windows and doors. This practice may be largely eliminated in the future by the use of outsized blocks which will allow flush finish at such points without on-the-spot trimming. These and numerous other developments will typify the wartime strides of the building industry, many of the changes being more apparent in the utility, economy and durability of the products than in their physical appearance. While most will represent "subsurface changes" in the finished house, they should greatly enhance its life as an economic asset and consequently help in sustaining its value as mortgage security. S P A plans disposal of surplus land During the war the Federal Government acquired large quantities of land in tracts of all sizes to meet a variety of wartime needs. To date, 215,000 acres have been declared surplus, but, eventually, nearly 6,000,000 acres will be earmarked for disposition. This job will fall to six Government agencies: National Housing Agency, Federal Works Agency, Reconstruction Finance Corporation, Department of Agriculture, Department of the Interior and the Maritime Commission. Future municipal uses of the land, including designation of the more appropriate commercial, industrial and residential sites, will be completed by November 194S the Surplus Property Administration on the recommendation of local groups. Real estate boards, city planning commissions, chambers of commerce and municipal officials will be invited to assist SPA in classifying surplus real estate to the best interest of local communities. In making this announcement, Surplus Property Administrator, W. Stuart Symington, explained that "Certain properties, for example, should be returned promptly to private ownership and the tax rolls. Some must be put speedily into production to create employment and to help fill demands of consumers and industry. Still others should be retained in public ownership for parks, utilities, rights of way and the like." Connecticut legislature acts on land assembly law Last summer a new redevelopment law was placed on the books in Connecticut authorizing cities in that state to acquire land for redevelopment purposes through the exercise of the powers of eminent domain. This legislation merits particular consideration in view of the broad and highly flexible formula it establishes for the supervision of rebuilding substandard areas. Reconciling the varying views of groups interested in redevelopment of urban areas, the new law leaves to the respective cities the determination of the means of administration. According to local preference, a separate redevelopment corporation may be established or the local housing authority may be asked to assume the responsibility. In those instances where the redevelopment plan is predominantly of a housing nature and the community prefers to establish a redevelopment corporation, the local housing authority must approve the plan. Building material research center planned Plans for a new research center which will provide 10 experimental factories under one roof in addition to research laboratory facilities, have recently been announced by the JohnsMan ville Corporation. "Projects initiated in the research laboratory may thus be carried clear through their development and pilot plant production stages," the company announced. This is expected to speed up the de- velopment of new and improved materials for building and for industrial uses, since new products will be more nearly ready for commercial manufacture when they emerge from the research center. Also, it is claimed that the new center will provide the largest research facilities in the world devoted to building materials and industrial products development. Utilizing 337,000 square feet of floor space, the center will provide for all technical activities, except engineering. It will include fundamental scientific research, product development, process improvements involving product quality, pilot plant and semi-works scale experiments, design and initial construction of new product equipment, testing of building materials and industrial products and a central source of technical information. One section will permit quick cycle tests of the wear and tear that building materials will get in actual use. An entire roof or side wall will be given 20 years of climatic changes in 6 months. The popularity of home loans compared with other guarantees provided under the GI Bill of Rights is evident from the accompanying chart. Comprising 92 percent of the total dollar volume, these loans numbered 22,981 through October 6, 1945, according to data of the Veterans' Administration. Guarantees for 1,681 business loans were issued during this period, representing 6.5 percent of the dollar volume. Farm loans trailed the other two categories wTith only 529 guarantees issued. The average size of these loans ran in the same order—homes, $1,665; business, $1,596; and farms, $1,173. 41 DISPOSITION OF TEMPORARY WAR HOUSING OFFERS ADVANCE MATERIALS SUPPLY The FPHA is now carrying forward its plans for the disposition of temporary war housing under the terms of the Lanham Act. As these accommodations are declared surplus, it is anticipated that the bulk will be sold for salvage to offset public expenditures for its construction and to augment short stocks of building materials. • A l the present time, the Federal Public Housing Authority has on hand a total of about 320,000 temporary war housing units, of which approximately 275,000 are movable—200,000 dormitory units and 75,000 family dwellings. Unsuited to long-term use as housing, they must be disposed of within two years after the emergency, according to the requirements of the Lanham Act. These structures include family dwellings and dormitories quickly erected at minimum cost for wartime use and have been built only where market analysis did not justify the programming of permanent, privately financed war housing. Now the F P H A is confronted with the disposal of these temporary buildings, not all at once, but in the order in which they are declared surplus to the needs of demobilization. Although not suitable for prolonged use as urban residences, experimentation has show^n that they can be dismantled and converted for non-residential and rural uses. Buildings constructed principally from temporary war housing sawed into panels can serve usefully as storage warehouses, farm buildings, vacation cottages, tourist cabins, garages, small schools, churches, and a variety of utility-type structures. If the shipping distance is not excessive, the cost is estimated to be considerably less than that of constructing such buildings from new materials. Moreover, the erection of buildings can proceed immediately at a time when new materials are difficult to obtain. Demonstration Planned In order to bring the re-use possibilities to the attention of potential buyers and the general public, F P H A will stage a month's demonstration in Washington, opening early in December. The exhibit will provide a 20-acre "showcase" of all major types of temporary wartime buildings and a cross-section of many different structures into which these buildings can be converted for practical peacetime iise. The site of the demonstration will be part of an 80-acre tract owned by the Government. 42 In addition to Federal and local agencies and foreign governments, it is expected that possible outlets will include many private purchasers in the supply, distribution and construction fields, such as contractors, lumber supply dealers, farm cooperatives, wholesale suppliers, and purchasing groups and organizations. Most of the structures are rowhouse or multiple-unit types and range in size from 4 to 10 units per building, while the projects contain from 16 to nearly 10,000 units each. Purchasers in most cases must be in a position to buy and remove the structures in marketable quantities and to restore sites to their original condition. Through the re-use of this material to meet auxiliary needs in the domestic market, or to fulfill any foreign requirements, it will not enter into competition with the postwar reconversion program of the material and supply industry, the F P H A states. "On the contrary/' Commissioner Klutznick commented, "if these materials can be channeled into other uses, new supplies will be made available for commercial and industrial plants and for long-range, permanent home building, which constitute essential sources of postwar employment and production. The more we can do to speed new home construction, moreover, the sooner we can vacate and remove this temporary housing.'' Although not originally designed to be moved, wartime experimentation showed that these buildings could be sawed into panels, moved and re-erected at great savings in time and money. During the war, F P H A re-used, often in types of structures different from the original, some 10,000 units of war housing. Movements were made by truck, rail, ship and barge over distances ranging from a few miles to more than 1,000 miles. Temporary war housing accommodations should not be confused with the demountable dwellings which generally meet normal housing standards. The latter will be sold for use as housing even though the units may be removed from their present war sites. Federal Home Loan Bank Review CHARACTERISTICS OF NEW HOUSING BEFORE THE WAR Postwar plans for the housing industry are being drawn by various groups, almost all of which place emphasis on low-priced construction. A recent analysis by the Bureau of the Census clarifying earlier data relating to the rental value of new housing will be of interest to all concerned with this subject. T H E 1940 Census of Housing 1 cast new light on the quantitative distribution of our housing stock by rental value and by age of structure. However, the original tabulations did not relate the physical characteristics of dwelling units to the age and rental value breakdown. Thus, until recently, when the Census released its special analysis of 11 selected areas, there was no statistical means by which an answer could be found to account for the unusual concentration of the newer dwellings in the lower rental brackets. From the special analysis and from the original nationwide tabulation, taken together, come a series of factors which seem to give a distinct explanation of this rental value grouping. The special survey of the 11 selected areas reveals that an unusual proportion of the dwelling units constructed in the years 1935 to 1940 were in substandard condition at the time the enumeration was made (1940). The national tabulation shows that a large proportion of the units in this age group were erected in areas where climatic conditions ordinarily make central heating equipment unnecessary. In addition, the location of many of these homes in rural areas where building codes, zoning and high land costs would not usually be expected to exert as strong an influence on home values as they do in urban districts may be another factor of significance. • National Figures A total of 2,471,577 nonfarm units were reported as having been constructed during the years 19351940, representing about 9 percent of the reporting urban and rural nonfarm housing supply. Of these newer dwellings, more than two-fifths were reported as having contract or estimated monthly rentals of less than $20, while between one-fifth and one-fourth had rentals below $10. Almost 55 percent were reported as having rentals of less than $30. i Sources: Sixteenth Census—1940—Housing, Vol. I J J, Part 1. Characteristics of Housing Built in 1935 to 1940 for Selected Areas: 1940, Series H-45, No. 5. November 1945 Owner-occupied units built in the years 1935 to 1940 numbered 1,356,441, accounting for 62 percent of the occupied dwellings in this age group, while tenant-occupied accommodations were reported at 821,926, or about 38 percent of the total. Before analyzing the rental value distribution of the owner- and tenant-occupied classes, at least passing notice should be given to a distinct tendency which is apparent among the newer homes: namely, the higher proportion of owner occupancy. In all other age groups, the proportion of tenant-occupied units was greater. Of the 27,747,973 occupied nonfarm units in all age groups, 11,413,036, or about 41 percent, were owner occupied, leaving 59 percent to tenant occupancy. Among the owner-occupied units constructed in the latter thirties, almost 38 percent were recorded as having a rental equivalent to less than $20. Tenant-occupied dwellings built between 1935 and 1940, although smaller in number, showed a heavier low-rent distribution, with about 48 percent reported at rentals below $20. Approximately 22 percent of the owner-occupied homes and 27 percent of the leased accommodations were recorded at rentals of less than $10 a month. Principal Metropolitan Districts An interesting although not surprising relationship appeared in the distribution of new housing by rental brackets among the principal metropolitan districts (85 areas containing a central city of over 100,000 or with a gross population over 150,000). A marked tendency toward the concentration of the higher rental units is noticeable in these areas which accounted for but a relatively small proportion of homes in the extremely low ranges. For instance, only 17.5 percent of the units reported at rentals below $20 were situated in these districts. However, they accounted for a progressively greater proportion of dwellings in the higher ranges, the ratio mounting to 81 percent for those with rentals between $60 and 43 Special Analysis CHARACTERISTICS OF DWELLINGS BUILT WITH 1935 - 1940 PRIVATE BATH IN SELECTED AREAS WITH PRIVATE BATH AND CENTRAL HEATING $100 a month. To a certain extent the small proportion of new low-rent construction in the principal metropolitan areas may have been caused by building code requirements, but high land and construe* tion costs as well as taxes are perhaps the most influential factors. Problems of site selection and zoning likewise exert a deterring force there. With respect to this, it is interesting to note that 63 percent of the newer units renting for less than $20 were rural nonfarm dwellings. T h a t but 16.6 percent of all units constructed in the principal metropolitan areas from 1935 to 1940 were in brackets below $20 does give startling contrast to the relatively small volume of low-cost housing built there. The most important segment of the market in these larger metropolitan districts appears to have centered between $40 and $60, for it was within this range that 29 percent of the dwelling units which were constructed in the last half of the thirties were reported. Regional Distribution An examination by regions of the rental value distribution of dwellings constructed from 1935 to 1940 reveals an interesting parallel between rental value distribution and regional volumes of construction. I n the South, where the greatest proportion of units built during this period was reported, almost 54 percent were in the rental groups below $20, while in the North Central States, which had the second largest share of the total, slightly less than 37 percent were within the low-rental ranges. The West, which had the third largest number of dwellings constructed during that period as reflected in the Census report, was second in the ratio of units with monthly rentals below $20, about 37.4 percent, and the Northeast stood last in both respects, the proportion in the lowrent brackets being but 18.5 percent. 44 What could account for the unusually heavy distribution of this comparatively new housing in the low-rental brackets? I t is evident that this came as a surprise to many, for it is a natural inclination to visualize new residential construction in terms of a neat, single-family, five- or six-room house with all modern facilities and equipment. Yet, this information indicates that either our mental picture of the typical new home is incorrect, or that the building industry has succeeded in producing such houses at lower rentals than were believed to prevail. In the original enumeration there was no tabulation relating characteristics to age groups. To determine the point of deviation, a special analysis of the characteristics and equipment of these newly built dwellings was conducted by the Bureau of the Census in 11 representative areas l which contained a total of 1,871,057 nonfarm accommodations and 180,561 units within the age group 1935-1940. The enumeration revealed that in the 11 selected areas there was a total of 66,266 dwellings constructed between 1935 and 1940 having a rental value of less than $20. Of these, only 2,112, or 3.2 percent, contained both private b a t h and central heating equipment and were not in need of major repairs. Of the 94,125 accommodations renting for less than $30, only 9,008, or 9.6 percent, were so equipped and not in need of major repairs. Thus, it would seem apparent that although there is an extraordinary concentration of dwellings constructed between 1935 and 1940 in the low-rental value brackets, most of these do not measure up to the visualization of a snug, well built home. A further analysis shows that dwelling units of $30 monthly value are comparatively high in the rental range for those 11 selected areas. I n nine of these localities the median rental value is less than $30 as computed for all housing, while for newly built homes, seven of the eleven areas showed medians of less than $30. However, in seven of the eleven regions, a $20 rental value is below the median for all dwelling units. I n the 11 selected areas, almost 37 percent of the homes constructed during the period 1935 to 1940 were without private bath, compared with a ratio of 34.9 percent for all dwellings in the same localities. i These 11 selected areas are: city of Detroit; balance of Detroit metropolitan district; city of Houston; balance of Houston metropolitan district; city of Seattle; balance of Seattle metropolitan district; urban and rural nonfarm areas inside the Illinois portion of the Chicago metropolitan district but outside the city of Chicago; urban areas of less than 500,000 in Illinois; rural nonfarm areas of Illinois; urban areas of less than 600,000 in Virginia, and the rural nonfarm areas of Virginia. Fee/era/ Home Loan Bank Review By area, the ratio without private bath ranged from 2.5 percent in the city of Detroit to 65.2 percent in the rural nonfarm regions of Illinois and 69.0 percent in the rural nonfarm portions of Virginia. The relatively high distribution of units without these facilities in rural areas, as revealed in the special analysis, would seem to be a major clue to the cause of the high proportion of low-rental values among the newer homes. The national figures show that more than 38 percent of the homes built in the years 1935-1940 were in the rural nonfarm category. This was the highest ratio of this type shown for any age group. Among dwellings of all ages, about 27.2 percent were rural nonfarm units. The special analysis of the 11 areas also revealed that central heating equipment is not more common among the newly built homes than among all dwellings. However, in the city of Houston and the balance of the Houston metropolitan district the virtual absence of units with central heating is the result of climatic factors and is not in itself an indication of substandard construction. I n the other nine areas the relative number of homes with private bath, central heating and not in need of major repairs ranged from 15.7 percent in the rural nonfarm areas of Virginia to 84.8 percent in the city of Detroit. Other Factors There are several other factors involved in the Census enumeration which also contributed to the heavy weighting of low-rent units in proportion to the total new construction. Yet, none of these others is sufficient to explain the low rental of all newly built homes. The elimination of these factors as significant elements, though, does lead to the conclusion that the quality and condition of the more conventional, newly constructed unit was, on the average, below that of the houses which were built in earlier years. One of these miscellaneous factors was the inclusion in the enumeration of such unconventional types of accommodations as tourist cabins, shacks, boats, etc. These miscellaneous accommodations represent 2 percent, or 3,555, of the newly built homes of this type in the 11 selected areas as compared with 0.6 percent of all dwelling units. The higher proportion among homes built in 1935-1940 probably results from the presence of relatively more trailers and tourist cabins. Another factor was converted units which may be improperly reported as built in the year in which conversion took place. However, these represent November 194S only 3.3 percent of the newly built homes in comparison with 9.5 percent of all homes. I t is interesting to note that despite the fact that the newer homes showed a heavy distribution among the low-rental groups, in the total of the 11 areas there was no substantial difference in the median number of rooms. For accommodations built between 1935 and 1940 the median in the selected areas was 4.55 rooms, while for all dwelling units it was 4.91. I n fact, in five of the eleven areas the newly built homes had a higher median number of rooms than the old homes. Conclusion The large distribution of low-rental value units among homes reported by the Census as having been built from 1935 to 1940 is apparently due to a greater proportion of units in this age group without private bath and/or central heating. Also, a surprisingly large number of homes in this age group were indicated as being in need of major repairs. Applying these findings of the analysis of the 11 selected areas to the original national tabulation, it will be noted that a large part of the homes in this age group were (1) constructed in regions where climatic conditions made central heating unnecessary and (2) an unusual distribution of the age group total is to be found in rural nonfarm areas where influences of zoning, building codes and high land costs, frequently do not exert as strong an influence on rental values as is to be found in urban districts. 45 TOMORROWS HOUSE: By George Nelson and Henry Wright, 1945. Simon and Schuster, Inc., 1230 Sixth Ave., New York 20, N. Y. Tomorrow's House is an unconventional guide for home builders or remodelers. It contains no blueprints or floor plans, no catalog of styles or rules of "good taste." Frankly and wholly devoted to modern architecture as an expression and medium of modern living, it advances the idea that a house should be planned to best serve the needs and desires of its occupants, not just to look like houses always have. As stated in the foreword, "This book challenges not most, but all of the sweet-scented nostalgia on the domestic scene. Despite its persuasive manner, it is going to disturb many readers who keep their milk in the latest refrigerator, drive to business in the newest car, but persist in thinking that a Cape Cod cottage remains the snappiest idea in a home." In a friendly but firm way, the authors challenge the popular imitations of traditional "period" houses. They show some of the many ways in which current industrial techniques can be geared to our contemporary living habits to achieve better, more attractive and more livable, as well as more individual, homes. It is the theory of Messrs. Nelson and Wright (Consultant Editor and Managing Editor, respectively, of the Architectural Forum) that a house need not follow an established pattern but may be anything that a family's needs and desires dictate and that their budget will permit. Flexibility is the keynote. By discarding traditional notions of wThat a house should look like inside and out, appointments, arrangements and room combinations which offer wide possibilities in designing a house to fit a family may be achieved. Without attempting to dictate arrangements or organization, the authors present many interesting suggestions. For instance, they show new 46 ways in which a living-dining room, a dining room-kitchen, or a combined kitchen and general workroom arrangement can be made practical and attractive by proper planning and construction. If a family likes to spend leisure hours together, the book suggests a large, scientifically lighted room with quiet corners and facilities for all to use at once. By applying such technical principles as sound conditioning and solar or radiant heating it is demonstrated that bulky essentials can be reduced to minimum space fillers. Generous use of window surfaces, including sliding panels, can be made in suitable locations to add space by combining indoor and outdoor living. Illustrations of built-in furniture, fixtures and organized storage space show how the livability can be increased and housekeeping efficiency raised to a maximum. These are but a few of the ideas advanced to help in solving individual problems. The authors admit that compromise is necessary, that it is not always cheap and practically never easy to plan such a house, even with the help of a competent architect. But they make it sound like a worthwhile undertaking. • The book is entertainingly written and generously illustrated. It makes provocative and informative reading not only for the prospective occupant but for anyone interested in houses. If, as the authors state, there are going to be houses like this, builders, real estate dealers and home financers will want to know and understand their long-range values and appeal. FINANCING AMERICAN PROSPERITY: By Anderson, Clark, Ellis, Hansen, Slichter and Williams. The Twentieth Century Fund, 330 West 42nd St., New York 18, N. Y. This cross-section of widely varying approaches and viewpoints on current economic thought advances the unanimous opinion that America has a good chance for a run of prosperity. How- ever, the six economists chosen by the Twentieth Century Fund to participate in this symposium frequently differ as to the best means of bringing it about. The essays present their views on practical ways by which public policy can aid in maintaining full and stable employment and thereby security of livelihood and a hiph level of economic well-being. In approaching this book it is essential to keep in mind that the term "financing" as used in the title is not intended in the narrow sense to imply the raising and allocating of funds by fiscal and monetary agents, whether or not of the Government. It refers, rather, to matters of broad economic policy and is not incompatible with a conclusion that, under circumstances favorable to private economic activities, sustained prosperity could be self-financing. The essays cover a range including fiscal, taxation, wage, credit, commercial and anti-monopoly policies; price control and rationing; housing, social security and life insurance; research and patent systems and international finance. Obviously, this review could not do justice to even the highlights of the six individuals' separate opinions. It is, however, interesting to note the areas of substantial agreement among these authorities who represent various schools of economic thought. All contributors seem to feel that our present tax system offers obstacles to ready investment and new enterprise necessary to maintain a high degree of prosperity. They recommend the eventual reduction in corporate income tax. With one exception the authors foresee Federal spending in the postwar period on a much larger than prewar scale and advocate varying kinds and amounts of Government spending for the general economic good. However, preponderant opinion is that this policy should not be pursued to the point of creating chronic Government deficits. Four contributors, nevertheless, favor "compensatory" deficit Federal Home Loan Bank Review spending during a depression period, which they imply will be short and inevitably will be succeeded by a period of private surplus spending when Government surpluses can be used for debt retirement. The recognition that high wages usually mean higher purchasing power is unanimous, with the chief difficulty lying in the conflict between wages as income to labor and as cost to management. Five of the economists are inclined to put the major emphasis on the value of wages as purchasing power and seem to agree that increasing technical productivity should be reflected in higher wages. The central problem—how to achieve prosperity with ample employment opportunities—permits no quick and easy answers. No two of these authorities come to the same set of conclusions. However, in the variety of opinions presented the reader undoubtedly will find much stimulation for his own thinking about our economic future. THE CITY IS THE PEOPLE: By Henry S. Churchill. 1945. Reynal & Hitchcock, Inc., 8 West 40th St., New York 18, N. Y. The goal of city planning, as Mr. Churchill sees it, is "a livable city, suited to modern technologies of living." Proceeding from ancient times down through our own c o u n t r y ' s progress toward a high degree of urbanization, the author defines and analyzes the city form and its problems in a clear-cut and readable manner. Lucid enough to appeal to the layman, the book is also addressed to all who are professionally concerned with the economic and the social future of our urban areas. In retailoring today's cities to the needs of a changing world; the author would have planners follow the basic precept of modern architectural philosophy: Build to fit the occupant's needs and desires. In common, to a large extent, with individual families, cities are seeking solutions to problems which fall into three main categories— physical, economic and social. The first centers about dwellings, working facilities and traffic; the second about land values, service costs and taxation; while the third takes in child-rearing, health and recreation and various social satisfactions. Novcmbzr 1945 None of these problems, Mr. Churchill feels, is incapable of solution, even if the process must of necessity be gradual. Planning techniques are available and for the most part adequate. Rather it is necessary to recognize and attempt to remove the causes of inertia which have resulted in only fairly meager and sporadic attempts to attack the problems as a whole. City planners and their supporters are urged to inject vigor and imagination in presenting their program to the public without whose support and sympathetic understanding no plan can be realized. The planners themselves must bring more to their task than technical competence, necessary as that is, the author e m p h a s i z e s . Imagination, vision and courage are required to integrate all the elements of today's known needs with estimates of probable future trends as revealed by the tested methods of planning. All the threads of such cooperative endeavor must be tied together into a master plan that has flexibility, direction and a basic philosophy. This is at once the responsibility of the planners and the challenge they must meet. "Until the planners know by what methods the ends are to be achieved, what the purpose of the city is, what those who live in it (not just those who 'own' it) want it to be, planning will continue to be merely the means of livelihood of planners. A city plan is the expression of the collective purpose of the people who live in it, or it is nothing." The master plan conceived by Mr. Churchill is quite a different thing from that adopted by municipalities in the past. Formerly after a blueprint of civic improvements drawn up by the authorized planning body was accepted, years were spent in construction. During the building period little or no attention was paid to changing conditions which might affect the achievement of the original purposes of the plan. "A master plan . . . is not something static, but alive and ever-changing as circumstances change. It must be continually brought up to date, and continually kept before the public, for a master plan in which the public does not participate is not a master plan but a set of blue prints for an ivory tower." Mr. Churchill goes ahead to define his idea specifically, "A Master Plan, be it noted is not a blue print. It is not an 'official map.' It is not a map at all, although parts of it may be in the form of maps. It is an accumulation of interpreted data, financial, social, physical; it consists of fact, fiction, surmise, and wishful thinking; of maps, notes, photographs, suggestions. It is . . . 'Not one goal, but a direction. Not one plan, once and for all, but the conscious selection by the people of successive plans'. " Although inclusion of title does not necessarily mean recommendation by the REVIEW, the following recent publications will be of interest. YOU AND YOUR NEIGHBORHOOD, A PRIMER FOR NEIGHBORHOOD PLANNING: Available from Revere Copper and Brass, Inc., 230 Park Avenue, New York 17, N. Y. STABILIZING THE CONSTRUCTION INDUSTRY: By Miles L. Colean. (Planning Pamphlet No. 41) 1945. 38 pp. Available at 250 from National Planning Association, Washington 6, D. C. COMMUNITY ACTION FOR POST-WAR JOBS AND PROFITS: Published by Department of Commerce. Available at 200 from Superintendent of Documents, Government Printing Office, Washington 25, D. C. THE MUNICIPAL YEAR BOOK 19^5: Clarence E. Ridley and Orin E. Nolting, editors. 603 pp. Available at $8.50 from The Municipal Year Book, 1313 East 60th Street, Chicago 37, 111. BANK LIQUIDITY AND THE WAR: By Charles R. Whittlesey. 1945. 86 pp. Available at 500 from National Bureau of Economic Research, 1819 Broadway, New York 23, N. Y. COMMUNITY PLANNING AND INTEGRATION IN ALLEGHENY COUNTY: A DEMONSTRATION COURSE IN COMMUNITY PLANNING: 1945. 35 pp. Carnegie Institute of Technology, Pittsburgh, Pa. THE USE OF PUBLIC WORKS TO SUSTAIN CONSTRUCTION ACTIVITY: 1945. 12 pp. Construction and Civic Development Department, Chamber of Commerce of the United States, Washington, D. C. 47 RESIDENTIAL BUILDING ACTIVITY AND SELECTED INFLUENCING FACTORS BY I INDEX 1935-1939 = 100 YEARS BY MONTHS INDEX 240 A - 240 j 220 ADJUSTED FOR SEASONAL VARIATION 220 PRIVATE CONSTRUCTION^ IBS FAMILY DWELL.UNITS j (FED. HOME LOAN BANK ADM.) j f U.S. L" EPT OF LA B. RECORD*o)/ 200 j \ 160 / / f^SVGS. *sv<5S.8 100 V 80 \ FED. .^, LN. LEA 0. HOME LN. BK.A /r 180 V 160 a LN. LEND. 140 120 f *•-/ 100 y PRIVATE CONSTRUCTION \, V V \ - ..^" 60 \ •' " V / / I- 120 j / / \/ 140 / .Al 200 *..'**x / /y ( 180 /k/"*T r _ J 1 a 2 FAMILY DWELL. UNITS 80 60 ^ 40 40 FORECLOSURES (FFH M H M P 1 M RK fNONFARM flnMl —• 20 1 1 1 t | >- i i 1 1 FORECLOSURES __ ^ 1. I i i — ^BUILDING 7T\- i i i i I 1 L_ I 1 ; _.-•* 220 3) \ 200 DJUS" •ED \ I l I I l I I I I FOR SEASONAL VARIATION 1 1 1 1 ''^•1 s* / *S=C , / / 160 """•%. y MP6. EN 1PL0\fMEN T ^ * -*H^ 160 *'N. # 140 120 *r INCOME PAYMENTS 80 DEPT OF COMMERCE)^*, ^ '">^ '•\; •^ *- -+ V ^\ 100 -MFG. EMPLOYMENT (U.S. DEPT OF LABOR) 80 t&'' i i 1930 '31 '32 '33 '34 '35 '36 '37 '38 '39 '40 '41 '42 '43 4 4 MILLIONS .F.H.L.B. ADVANCES OUTSTANDING $200 * I • I I r • I l l I • 48 200 180 *•••. / (US. 220 \ \ \ * *••.. 60 280 240 v. "V/A COMl ; PAYMENl S 180 I i 260 .»—N. / j 140 0 140 100 r 1 1 1 1 »••"*•*•' ^•" INDLISTRIAL PRODUC :TION-^ N I00\ \. i 120 f INDUSTRIAL 1DRODI-/CT/C)N 120 i 80 1 1 1 1 1 I 240 Q 1 1 I 260 60 1 1 MATERIAL PRICES DEPT OF LABOR) _j 60 280 1 1 4 RLNIb (U.S. " MATERIAL PRICES~ .*£. ^BUILDING 20 -t^-^-^. INDEX i 1 i i 1943 CONSUMERS' PRICE INDEX 1935-192 9 = i i 1 1 i i i i 1944 i I 1 1 1 | 1 1 1 1 60 1945 LIQUID ASSETS 100 l l l l l l l l l l l 1 i l l l l i l Ii 1 Ml. J u l . I u l i i Ii Mil Federal Home Loan Bank Review « « « MONTHLY SURVEY » » » HIGHLIGHTS /. New lending activity of savings and loan associations declined 6.5 percent in September to $162,400,000, but remained substantially above that of a year ago. A. Both construction and home purchase loans shared in the decrease. B. The $1,330,000,000 of new loans made during the first three quarters of this year was only 3.5 percent less than the entire 1941 lending total. II. An increase during September of over 11 percent in permits issued for family dwelling units brought the total to 14,315—84 percent more than a year ago. A. No publicly financed construction was included in the September 1945 total. B. Private construction activity in the first nine months of this year amounted to 91,000 units compared with 75,000 in the same period of 1944. III. An increase in both material and labor costs raised the September composite index of this series to 136.4 percent of the average compared with 135.8 in August. IV. Following the usual seasonal trend, mortgage recordings declined during September. They amounted to 1935-1939 $464,157,000—down 5 percent. A. Eight Bank Districts showed August-to-September drops but all recorded a greater volume of mortgages than in September B. Recordings in the first nine months of 1945 were 16 percent greater than during the same time last year. V. FHL Bank advances outstanding dropped 12 percent during September to VI. Resources of the 2,476 insured associations totaled $5,726,000,000 liquid assets. ^r BUSINESS CONDITIONS—Peacetime production down With Government expenditures down from $6,398,000,000 in August to $5,365,000,000 in September, according to U. S. Treasury figures, output and employment, at factories producing war goods dropped again in September. The Federal Keserve Board's seasonally adjusted index of industrial production stood at 172 percent of the 1935-1939 average in that month compared with 187 in August and 230 in September 1944. The declines, chiefly in machinery and transportation equipment industries, were partially offset by a rise in steel production. Nondurable goods manufacture showed little change as a whole, since increases in the output of civilian-type products took up the slack caused by the tapering off of war production. Data from the Bureau of the Census showed a decline of 2,370,000 in total employment. The 51,250,000 persons employed in September represented a 3-percent drop in agricultural and a 5-percent decrease in non-agricultural categories. However, employment in most non-manufacturing lines, except Government service, was maintained or slightly increased, after allowing for seasonal variations. Claims for unemployment compensation increased November 1945 $99,769,000. on September 30, of which $1,911,000,000 # 1944. was in the form of ^r from 1,127,900 on September 1 to 1,640,200 at the end of the month. The prices of wholesale commodities, as reported by the Labor Department (1935-1939 = 100, converted from 1926 base) dropped fractionally during September. For the week ending September 1, they stood at 130.6 while at the close of the week ending September 29, the index showed 130.3. This compared with 128.6 and 128.8 for the corresponding dates of last year. Currency in circulation which, as reported by the Treasury, totaled $27,619,000,000 for the week ending September 1, had risen to $27,769,000,000 at the close of the week of September 29. By the middle of October it had increased again to $27,954,000,000 and stood more than $3,800,000,000 above the figure for mid-October 1944. [1935-1939=100] Sept. r 1 1945 Aug. 1945 Percent change Sept. 1944 Percent change 95.5 108.3 131.8 228.6 172.0 123.1 229.7 79.8 108.3 131.5 236.6 * 187. 0 ' 144.6 ' 236.0 +19.7 0.0 +0.2 -3.3 -8.0 -14.9 -2.7 39.8 108.2 129.5 189.2 230.0 165.5 232.5 +139.9 +0.1 +1.8 +20.8 -25.2 -25.6 -1.2 Revised. Adjusted for normal seasonal variation. 49 B U I L D I N G A C T I V I T Y — P r i v a t e building over twice last year's volume Residential construction in urban areas continued to increase during September, according to building permit data compiled by the U. S. Department of Labor. The 14,315 family dwelling units provided for by permits issued during the month represented increases of 11 percent over the 12,903 units provided in August and 84 percent over the 7,773 of a year ago. Inasmuch as the September total includes no publicly financed construction, as against 144 public units included in the August total and 1,530 in the September 1944 figure, percentage gains in privately financed construction were somewhat greater—12 percent over August and 129 percent over September of last year. On a seasonally adjusted index basis, residential construction in urban areas stood in September at 95.5 percent of the 1935-1939 average, the highest point reached since early 1942. During the first nine months of this year, permits were issued for the construction of more than 91,000 privately financed dwelling units, as compared with 75,000 during the same 1944 period, an increase of 21 percent. In the same comparison, the number of publicly financed dwelling units dropped from 16,000 to 9,000, down 43 percent. [TABLES 1 and 2.] 1.1-percent advance in the latter accounted for most of the increase in the total cost index. As shown in the accompanying table, the index of the cost of labor required in the construction of the standard house rose from 140.9 to 142.4 during September, while that of material costs rose only fractionally from 133.1 to 133.3. Since September of last year, this over-all index has advanced 2.0 percent, the result of increases of 1.6 and 2.8 percent, respectively, in the material and labor components. The U. S. Department of Labor's composite index of wholesale prices of building materials also continued its advance during September, rising from 131.5 in August to 131.8. This gain resulted from increases in prices of plumbing and heating materials (1.7 percent), brick and tile (0.7 percent), paint and paint materials (0.3 percent), cement and miscellaneous supplies (0.2 percent each). The wholesale price of lumber dropped fractionally during the month, while that of structural steel remained unchanged. [TABLES 3, 4 and Construction costs for the standard house [Average month of 1935-1939 = 100] Element of cost Material Labor THOUS, 5.] NEW RESIDENTIAL CONSTRUCTION Sept. 1945 Aug. 1945 Percent change Sept. 1944 Percent change " 133. 3 » 142. 4 133. 1 140. 9 + 0. 2 + 1. 1 131. 2 138. 5 + 1. 6 + 2. 8 T o t a l . . ' 136. 4 135. 8 + 0.4 133. 7 + 2. 0 URBAN AREAS - NO. OF DWELL. UNITS v Preliminary. MORTGAGE LENDING—Post-VJ Day decline reported UJ PRIV. ^MULTI-FAMILY * /^f. I I I I I I I 11 ii1111 L I 1942 1943 ^4 1944 *ns,ft&L 1945 B U I L D I N G COSTS—Upward trend still apparent Residential construction costs continued upward during September, the FHLBA's index of the cost of building the standard house rising from 135.8 in August to 136.4 (1935-1939=100). Although both material and labor costs contributed to this rise, the 50 During September, the first full month after VJ Day, new mortgage loans made by savings and loan associations approximated $162,400,000, a drop of $11,200,000, or 6.5 percent, from the record volume of loans made during August. This decline in home financing activity, which was somewhat greater than seasonally expected, was general throughout the country. Associations in all F H L Bank Districts reported smaller lending volumes in September than during August, the declines ranging from less than 1 percent in the Little Rock District to as much as 19 percent in the states included in the Los Angeles region. Among the several loan-purpose groups, loans for the construction of homes showed the sharpest relative decline in September, the $16,400,000 Federal Home Loan Bank Review New mortgage loans distributed by purpose [Dollar amounts are shown in thousands] Percent change Aug. 1945 Sept. 1945 Purpose Sept. 1944 Percent change $16, 375 $20, 730 - 2 1 . 0 $5, 923 + 176. - 6 . 2 101, 884 + 11. 113, 103 120, 557 - 2 . 1 14, 495 . + 1 5 . 16, 786 17, 146 + 0. 2 3, 160 + 25. 3,971 3,980 + 8.3 8,993 + 35. 12, 189 11, 259 Construction H o m e purchase Refinancing Reconditioning Other purposes 162, 433 173, 663 Total 5 0 8 9 5 - 6 . 5 134,455 + 20. 8 loaned for this purpose representing a drop of 21 percent from August. Loans for the purchase of existing homes showed the second largest relative decline, 6.2 percent, followed by refinancing loans with a drop of 2 percent. On the other hand, both reconditioning and "other purpose" l o a n s were greater in September than in August, the former showing a fractional rise and the latter reflecting an increase of 8 percent. Lending activity was substantially greater in volume during September than a year ago, the gains TOTAL LOANS MADE BY ALL SAVINGS AND LOAN ASSOCIATIONS UNITED STATES - BY TYPE OF ASSOCIATION ! i ! ! I ! ! ! ! TOTAL ULt o ^ / J\ / 1 FEDEh ILS^ jC^/l ^ i^tf^ J ^STATt" CHARTERED 4EMBE?S NC ,,,, titH^ ,r Yr:,, 1 1 . 1,1 1944 _l_l_ ^Z _LX. 1945 UNITED STATES - BY PURPOSE OF LOAN BY MONTHS J HOME PURCHASE j-CONSTRUCTION (-REFINANCING l-RECONDITIONING [-OTHER OF OPERATING STATISTICS FEDERAL HOME LOAN BANK SYSTEM November 1945 ranging from 11 percent for home purchase to 177 percent for construction loans. Advances were registered in all Bank Districts, the largest increase, 41 percent, being reported in the Winston-Salem region and the smallest, 10 percent, in the Cincinnati and Des Moines areas. During the first nine months of this year an estimated $1,330,000,000 of home mortgage loans were made by all savings and loan associations, an amount only 3.5 percent less than that made during the entire year 1941. Federals accounted for 47 percent of total loans made during this period, state chartered members, 44 percent, and nonmember associations, 9 percent. [TABLES 6 and 7.] MORTGAGEfRECORDINGS- >easona decrease noted During September a total of 135,119 mortgages of $20,000 or less were recorded in the amount of $464,157,000. Following the general seasonal pattern, this represented a decline from August, down slightly more than 5 percent from that record month. However, the dollar volume of recordings during this first full month after the end of hostilities was about 11.5 percent greater than that reported for September 1944. Indications are that mortgage recordings during the current year will exceed the post-depression peak established in 1941. Recordings in the first nine months of 1945 have been maple in the amount of $3,979,693,000, about 13 percent greater than the volume recorded in the corresponding months of that earlier year and approximately 16 percent greater than in the like 1944 period. The $172,551,000 of mortgages recorded by savings and loan associations in September represented a decline of almost 5 percent from the August figure, but was 18 percent greater than in September last year. Miscellaneous lenders showed" the greatest month-to-month recession, down almost 9 percent, while individuals were off more than 7 percent from August and life insurance companies were down 7 percent. Mutual savings banks indicated the least change, being only 0.1 percent below their August level. Except in the New York, Pittsburgh, WinstonSalem and Des Moines regions, which reported larger recordings in September than in August, all Districts showed declines in this comparison. The sharpest drop occurred in the Los Angeles area, down more than 16 percent from the preceding month. However, 51 Mortgage recordings by type of mortgagee [Dollar amounts are shown in thousands] T y p e of lender PerPercent Cumuchange cent of lative Sept. recordings from Au1945 (9 months) gust a m o u n t 1945 Savings and loan associations -4.8 Insurance companies -7.0 Banks, t r u s t companies _ _ - 1 . 8 -0. 1 M u t u a l savings b a n k s -7.2 Individuals. -8.7 Others Total -5.2 Percent of total recordings 35. 3 4.4 19.0 3. 6 25. 7 12. 0 100.0 3, 979, 693 100. 0 F H L B S Y S T E M - A d v a n c e s and repayments dropped Advances by the 12 Federal Home Loan Banks to mortgage lending institutions during September totaled $4,519,000, a decline of 54 percent from the preceding month. With the exception of the New York Bank, all Districts shared in this decrease, the sharpest drop being shown in the Portland area where no new advances were made during the month. I t will be recalled that the member associations in the Portland region showed the highest ratio of liquid items to total resources at the end of 1944. Repayments in September continued well in excess of new advances, receipts during the month totaling $17,200,000. This, however, was more than 9 percent less than the August volume. Six of the twelve Banks shared in this decline—Pittsburgh, Winston-Salem, Cincinnati, Chicago, Des Moines and Los Angeles. The excess of repayments over advances is reflected in the month-end statement of condition of the banks, advances outstanding on September 30 being about 12 percent lower than at the end of August. Only Winston-Salem showed a gain in the balance of advances above the figure reported at the close of the preceding month. Reflecting the shrinkage in the unpaid balance of advances, cash, including interbank deposits, increased by more than 5 percent from the end of August and Government security holdings were up almost 11 percent. [TABLE 12.] F L O W OF PRIVATE REPURCHASABLE 3 7 . 2 $1,403,161 177, 030 4. 1 755, 368 19.7 144, 697 4.0 2 4 . 0 1, 022, 144 477, 293 11.0 all Bank Districts showed increases over September 1944, gains ranging from a high of over 21 percent in the Winston-Salem area to a low of more than 3 percent in the Chicago region. [TABLES 8 and 9.] 52 A rise of nearly 10 percent in member deposits and an increase of 0.5 percent in capital items resulted in a 1.5 percent gain in the combined assets of all Banks during September. Debentures outstanding showed no change. During the 12 months ended September 30, 1945, there was an increase of approximately 9 percent in combined Bank resources. CAPITAL The $195,000,000 of private savings estimated to have been invested in savings and loan associations in September was about 20 percent below the peak in monthly volume reached last July and fractionally less than the inflow reported during August. Nevertheless, new savings invested during September were 28 percent greater than in the corresponding month of 1944. Withdrawals amounted to $100,500,000, approximately 44 percent less than in July and almost 4 percent less than in August. However, September withdrawals were 35 percent greater than during the like month of last year. The September 1945 ratio of withdrawals to new investments was 51.6 percent compared with 48.6 percent in t h a t month of 1944. The high rate of savings investment, though, resulted in a net gain of $94,300,000 in savings held, more than 20 percent greater than the increase estimated for the corresponding month last year. Share investments and repurchases,September 1945 [Dollar amounts are shown in thousands] I t e m a n d period All asso- All insured Uninsured N o n ciations associations m e m b e r s m e m b e r s Share i n v e s t m e n t s : l s t 9 m o s . 1945_ $1,726,850 $1,385,967 $206,081 $134,802 l s t 9 m o s . 1944_ $1,404,629 $1,097,183 $185,850 $121,596 + 23 Percent change + 26 + 11 + 11 $194,823 $146,290 $23,811 $24,722 Sept. 1945 Sept. 1944 $152,636 $122,016 $18,308 $12,312 Percent change + 20 + 28 + 30 + 101 Repurchases: l s t 9 m o s . 1945_ $963,281 $749,624 $133,877 $79,780 l s t 9 m o s . 1944_ $805,312 $601,847 $122,657 $80,808 Percent ch an ge _ _ _ + 20 -1 + 25 +9 $8,232 Sept. 1945 $100,506 $77,855 $14,419 Sept. 1944 $74,193 $7,238 $56,102 $10,853 Percent change + 35 + 14 + 33 + 39 Repurchase ratio (percent): l s t 9 m o s . 1945_ l s t 9 m o s . 1944_ Sept. 1945 Sept. 1944 55.8 57.3 51.6 48.6 54.1 54.9 53.2 46.0 65.0 66.0 60.6 59.3 59.2 66.5 33.3 58.8 Federal Home Loan Bank Review Activity during the first nine months of the current year resulted in a net gain of $763,600,000 in savings held, approximately 27 percent larger than that reported in the similar 1944 period. The withdrawal ratio during the first three quarters of 1945 was 55.8 percent, somewhat lower than the 57.3 percent estimated for the January—September interval of last year. INSURED A S S O C I A T I O N S showed another increase 13.] FEDERAL SAVINGS AND LOAN ASSOCIATIONS The 1,467 Federal savings and loan associations showed resources of $3,632,000,000 on September 30; their first mortgage holdings were $2,255,000,000. Private investors numbering 2,571,700 had accounts of $3,182,000,000, or an average account amounting to $1,237 compared with $1,115 a year ago. Progress in number and assets of Federals [Dollar amounts are shown in thousands] Number Class of association Approximate assets Sept. 30, Aug. 31, 1945 1945 New Converted __ Total November 1945 631 836 1,467 Sept. 30, 1945 Aug. 31, 1945 633 $1, 252, 668 $1, 239, 875 836 2, 379, 529 2, 355, 212 1,469 Foreclosures Mechanical difficulties have made it impossible to prepare the regular quarterly information on nonfarm real estate foreclosures. This material will be presented as soon as it becomes available. Resources At the end of September there were 2,476 insured associations with total resources aggregating $5,726,000,000, a rise of $176,000,000, or 3.2 percent, since June 30. Last year the gain was $130,000,000, or 2.8 percent, for the same period. During the third quarter of 1945, mortgages held by insured associations increased $139,000,000 compared with $85,000,000 for the same quarter in 1944. For each $1,000 increase in the balance of outstanding mortgages there were $2,700 of new loans made, while in the third quarter of 1944 it took $3,500 of new lending to increase the mortgage loan balance by $1,000. The 4,305,700 private investors had $4,982,000,000 in repurchasable shares on September 30. The average private share account was $1,157, while a year ago there were 3,931,400 investors with the average account about $1,041. Liquid assets totaled $1,911,000,000 with cash amounting to $303,200,000, or 5 percent of assets. Government bond holdings were approximately $1,607,800,000, or 28 percent of total resources. [TABLE Liquid resources were approximately 34 percent of total resources. Cash amounted to $178,400,000, or 5 percent of the total, while Government bond holdings were about $1,068,000,000, or over 29 percent of resources. 3, 632, 197 3, 595, 087 Consumers1 Price Index • The "Consumers' Price Index for Moderate Income Families in Large Cities/' which appears at the bottom of page 48, is the new name given to the former "Cost-of-living Index" compiled by the Bureau of Labor Statistics (1935-1939 = 100). In announcing the change, which was recommended by the BLS, the Secretary of Labor stated that the new title, being more descriptive of the data which the series presents, should "end the confusion and controversy caused by misunderstanding of what the index is designed to measure and by [its] use for purposes for which it is not adapted." The index itself has not been changed. The series remains a measure of the effects of average changes in retail prices of selected goods, rents and services, weighted by quantities bought by average families living on a fixed, moderate income in large cities of the country. The items priced constituted about 70 percent of the expenditures of city families whose incomes averaged $1,524 in 1934-1936. There are, of course, other factors that also influence family expenditures which are not reflected by this index. Nor does it try to show the full effect of such factors as changes in quality and availability of goods, both of which have declined during the war. An attempt has been made by the BLS to allow for the disappearance of low-priced merchandise by pricing the most nearly similar article which has been on the market. The BLS further stated that the President's Committee on the Cost of Living has estimated that such factors, together with certain others not fully measured by the index, would add a maximum of 3 to 4 points to the average price rise shown for large cities between January 1941 and September 1944. 53 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 1945, by Federal Home Loan Bank District and by State [Source: U. S. Department of Labor] [Dollar amounts are shown in thousands] All residential s t r u c t u r e s N u m b e r of family dwelling u n i t s Federal H o m e Loan B a n k Distiict and State 1 September 1945 $22,474 13, 298 991 464 263 2,020 990 424 213 1,321 15 207 886 3 87 1 14 80 25 303 9 47 222 424 53 1,321 15 207 885 3 87 1 14 82 3,974 245 672 82 1 3,724 244 27 55 1,308 88 206 466 27 55 1 1,058 2,666 87 157 14,315 7,773 490 263 2,180 1 80 51 303 9 47 222 2 30 3 6 N o . 2—JNew York___ 736 INewJersey New York 270 466 577 . 1 _ _ Connecticut Maine Massachusett rview H a m p s h i r e Rhode Island. Vermont _ ___ _ - _ ._ _ . __ ... .. __- - _ No. 3—Pittsburgh Delaware Pennsylvania W e s t Virginia .. - - . __ N o . 4—Winston-Salem Alabama D i s t r i c t of C o l u m b i a Florida Georgia Maryland North Carolina. . . . S o u t h Carolina Virginia _._ _ .. N o . 5—Cincinnati..- __ Kentucky _ . . . Ohio _ Tennessee ________ INO. 6—Indianapolis _ .. Indiana Michigan __ __ N o . 7—Chicago Illinois Wisconsin __ . _ __ _ _ _ N o . 8—Des M o i n e s _ _ I o w a __ _ . Minnesota Missouri _ _ _ North Dakota South Dakota _ _ _ _ _ _ _ ... _.. _ _ _ __________ N o . 9—Little R o c k _ _ __ . _ . __ _ Arkansas Louisiana _ - . _ _ . _ _ _ _ Mississippi _ _ N e w Mexico—. Texas ._ __ _. _ Colorado Kansas N e b r a s k a __ Oklahoma N o . 11—Portland . Idaho _ Montana Oregon _. Utah Washington Wyoming . . __ __ 54 _._ _ . - __ __ _ -_ - _ _ _ __ N o . 12—Los Angeles Arizona California Nevada -_ _ __ __ _ ... _ __ . . _ ._ 157 1 5,538 1 2 30 3 6 September 1944 $55,044 $17, 531 1,791 552 366 I 2,343 1,111 510 17 8 2,019 386 1,780 11 1 452 99 349 17 8 1,961 3? 4 1,101 10 2,006 1,288 6,543 3,249 1,845 681 6,211 1,975 441 36 661 230 69 222 66 281 136 597 261 53 36 18 9 178 911 204 2,201 657 396 862 126 1,186 333 1,164 629 72 82 16 16 937 429 36 598 214 • 69 218 66 215 136 51 253 53 36 18 125 904 204 2,091 643 396 835 126 1,012 333 176 608 72 82 16 16 672 1,161 423 5,780 1,705 1,126 419 5,645 1,690 59 794 308 f 22 332 69 161 4,831 55 1,510 140 55 771 300 22 328 69 153 4,734 758 55 1.495 140 983 390 4,947 1,719 918 390 4,766 1,719 317 666 177 213 1,360 3,587 1 687 1,032 314 604 177 213 1,351 3,415 687 1,032 594 6,003 2,379 | 959 380 5,277 1,650 471 123 4,271 1,732 1 1,811 568 650 309 265 115 3,692 1,585 1,110 540 840 316 3,629 1,337 822 ~ 276 3,580 1,175 119 432 177 71 41 66 185 60 2 3 515 2,200 550 243 121 308 844 181 2 2 119 427 164 71 41 66 181 24 2 3 515 2,195 506 243 121 308 831 32 2 2 2,399 1,057 547 N o . 10—Topeka 2,666 1 September 1945 2,413 107 162 222 74 1,834 ... _ $58,318 1 September 1944 527 780 345 _ September 1945 1 473 103 1,125 _ Permit valuation September 1944 September 1944 UNITED STATES N u m b e r of family dwelling u n i t s Permit valuation September 1945 N o . 1—Boston All p r i v a t e 1- a n d 2-family s t r u c t u r e s 200 93 62 1921 ' 788 1 5,739 1,874 2,355 1,049 5,596 1,850 47 219 114 17 660 * 148 292! 312 120 4,867 , 24 627 146 7 1,070 107 162 222 74 1,790 47 219 114 17 652 148 292 312 120 4,724 24 627 146 7 1,046 161 1,817 35 32 31 | 63 321 492 157 1,657 311 743 254 304 516' 73 48 125 75 145 93 62 192 31 32 31 63 583 254 304 516 63 48 125 75 3, 226 1,259 719 367 3,074 1, 253 316 104 38 160 117 285 15 42 20 78 34 136 57 307 1 122 616 578 1,407 44 775 370 108 38 164 118 312 35 42 1 20 78 34 139 57 122 626 588 1,485 89 126 73 173 121 453 313 2,676 2,302 1 12,067 5,604 2,374 1,108 11,151 3,563 96 2,535 45 28 2,260 14 1 431 11,289 347 28 5,557 19 92 2,237 45 1 28 1,072 419 I 10,385 347 1 3, 521 8 126 73 172 121 448 313 28 14 Federal Home Loan Bank Review Table 2— BUILDING ACTIVITY-Estimated number and valuation of new family dwelling units provided in all urban areas of the United States [Source: U. S. Department of Labor] [Dollar amounts are shown in thousands] N u m b e r of family dwelling u n i t s Private construction. 1-family d w e l l i n g s . 2-family dwellings l _. 3- a n d more-family dwellings . _. 2 Sept. 1945 A u g . 1945 14,315 12, 759 6,243 91,084 12, 459 839' 1,017 11,059 617 1,083 4,963 575 705 75, 755 6,055 9,274 144 1,530 9,013 14,315 12, 903 7,773 100,097 P u b l i c construction __ T o t a l u r b a n construction _ 1 2 January-September totals M o n t h l y totals T y p e of construction Permit valuation Sept. 1944 1945 1944 • January-September totals M o n t h l y totals Sept. 1945 A u g . 1945 Sept. 1944 74, 978 $58, 318 $53,310 $19, 779 $338, 530 $236,072 57,177 7,993 9,808 51,871 3,173 3,274 47, 279 2,106 3,925 15, 500 2,031 2, 248 290, 642 20,619 27, 269 180,108 27,150 28, 814 538 2,695 18,899 39,181 58, 318 53,848 22, 474 357, 429 275, 253 15,863 90,841 1945 1944 Includes 1- and 2-family dwellings combined with stores. Includes multi-family dwellings combined with stores. Table 3-BUILDING COSTS -Index of building costs for the standard house in representative cities in specific months 1 [Average month of 1935-1939 = 100] 1944 1945 1943 1942 1941 1940 1939 Oct. Oct. Oct. Oct. Oct. Federal H o m e Loan B a n k District and City Oct. N o . 2—New Y o r k : Camden, N. J Newark, N . J Albany, N . Y Buffalo, N . Y . _ N o . 6—Indianapolis: Indianapolis, I n d __ D e t r o i t , M i c h _ ___' _ __ _. __. . . N o . 8—Des M o i n e s : Des Moines, Iowa St. Louis, M o Fargo, N . D Sioux F a l l s , S. D N o . 11—Portland: Boise, I d a h o _ ._ . _ P o r t l a n d , Ore Salt L a k e C i t y , U t a h Seattle, Wash .. . July Apr. Jan. Oct. 144.6 135.6 149.7 140.6 134. 7 138.9 153.9 134.2 128.1 139. 2 135.8 122.5 121.6 114.2 107.0 102.9 ' 105.0 106.5 105.6 101.9 104.7 138.1 152.3 137.3 152.1 126.0 142.1 122.6 125.6 113.0 119.2 101.4 105.1 * 101. 2 104.0 120.8 127.1 128.3 131.9 120, 7 126.7 126.7 130.8 120.9 124.6 125.7 130.8 116.0 119.2 122.4 126.5 116.7 121.0 118.8 124.7 111.3 119.6 108.8 114.7 104.8 103.1 100.8 105.0 102.0 98.2 102.3 101.4 138.1 143.4 129.1 138.9 138.1 143.4 129.7 138.9 139.1 143.6 129.7 138.9 127.2 132.0 122.3 132.5 126.0 127.0 120.1 122.1 118.3 111.0 116.6 119.7 108.3 101.4 103.8 103.4 157.4 149.2 145.2 161.9 151.6 147.1 145.2 161.9 151.4 149.4 143.2 159.7 148.0 144.6 141.6 153.4 140.5 153.6 139.5 152.9 121.4 149.8 128.1 133.1 120.8 133.2 127.8 133.0 138.9 142.4 130.4 135.3 138.9 141.5 129.5 139.5 103.8 97.0 102.5 102.8 r i Indexes of October 1941 and thereafter have been revised in order to use retail material prices collected by the Bureau of Labor Statistics. This index is designed to measure the changes in the costs of constructing a standard frame house and to provide a basis for the study of the trend of costs within an individual community or in different cities. The various units of materials and labor are selected in accordance with their contribution to the total cost of the completed dwelling. Material costs are based on prices for a limited bill of the more important items. Current prices are furnished by the Bureau of Labor Statistics and are based on information from a group of dealers in each city who report on prices for material delivered to job site, in average quantities, for residential construction. Because of wartime conditions, some of the regular items are not available at times and, therefore, substitutions must be made of similar products which are being sold in the current market. Labor costs are based on prevailing rates for residential construction and reflect total earnings, including overtime and bonus pay. Either union or nonunion rates are used according to which prevails in the majority of cases within the community. Figures presented in this table include all revisions up to the present time. Revisions are unavoidable, however, as more complete information if obtained and becomes available for inclusion in this table. Cities in FHLB Districts 2, 6, 8, and 11 report in January, April, July, and October of each year; those in Districts 3, 5, 9 and 12 report in February, May, August and r November; and those in Districts 1, 4, 7 and 10 report in March, June, September and December. Revised. November 1945 55 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. 1945 A u g . 1945 J u l y 1945 J u n e 1945 M a y 1945 A p r . 1945 M a r . 1945 F e b . 1945 J a n . 1945 D e c . 1944 N o v . 1944 Oct. 1944 Sept.1944 E l e m e n t of Cost Material Labor . __ Total p 133. 3 p 142.4 133.1 140.9 133.0 140.6 132.7 140.5 132.5 140. 4 132.4 140.5 132.3 140.4 131.9 140.1 131.7 140.1 131.5 140.0 131.5 139.9 131.3 139.1 131.2 138.5 136. 4 135.8 135.6 135.3 135.1 135.1 135.0 134.7 134.5 134.4 134.4 133.9 133.7 P p Preliminary. Table 5 . — B U I L D I N G COSTS—Index of wholesale prices of building materials in the United States [Source: U. S. Department of Labor] [1935-1939=100; converted from 1926 base] All b u i l d i n g materials Period 1943: S e p t e m b e r . . 1944: S e p t e m b e r October November December . 1945: J a n u a r y February March April May. June July August___ September . . Brick and tile Cement Lumber Paint and paint materials Plumbing and heating Structural steel Other _ 125.6 109.0 102.7 162.7 126.1 118.5 103.5 110.3 ___ 129.5 129.9 130.0 130.0 111.7 115.3 115.6 115.9 106.3 107.0 107.2 107.0 171.5 171.3 171.3 171.3 129.7 130.3 130.7 130.7 121.4 121.4 121.4 121.4 103.5 103.5 103.5 103.5 111.7 111.7 111.7 111.7 130.4 130.6 130.8 130.8 131.0 131.1 131.2 131.5 131.8 121.5 121.6 121.8 121.7 121.8 122.1 122.9 122.8 123.7 106.9 108.7 109.1 109.1 109.1 109.1 109.1 109.1 109.3 171.3 171.4 171.3 171.4 171.9 172.5 172.7 172.9 172.6 130.7 130.8 130.7 130.7 130.8 130.7 130.4 131.9 132.3 121.4 121.4 121.4 121.4 121.4 121.7 121.7 122.7 124.8 103.5 103.5 103.5 103.5 103.5 103.5 103.5 103.5 103.5 111.9 112.0 112.3 112.3 112.6 112.8 112.8 112.8 113.0 +0.2 +1.8 +0.7 +10.7 +0.2 +2.8 -0.2 +0.6 +0.3 +2.0 +1.7 +2.8 0.0 0.0 +0.2 +1.2 . _._. _ ... -_ _ __ P e r c e n t change: S e p t e m b e r 1945- A u g u s t 1945 S e p t e m b e r 1945-September 1944 Table 6 . — M O R T G A G E LENDING—Estimated volume of new home mortgage loans by all savings and loan associations, by purpose and class of association [Thousands of dollars] P u r p o s e of loans Class of association Period 1943 January-September. September _ 1944 January-September September October _ N o v e m b e r __ December __ _ 1945 January-September January.. February _ March April May. June.. July A u g u s t . __ September __ _ -.- 56 _- ___-___-__ Reconditioning L o a n s for all o t h e r purposes Total loans Construction Home purchase Refinancing •$106,497 $802,371 $167, 254 $30,441 $77,398 $1,183,961 $511, 757 $539,299 $132,905 81, 213 13, 211 581,403 86, 016 127,912 13,799 22, 639 3,229 55,016 6,718 868,183 122,973 372,730 54,100 396,193 55,907 99, 260 12, 966 95, 243 1,064,017 163,813 30, 751 100, 228 1, 454, 052 669, 433 648, 670 135,949 79, 269 790,866 121, 740 23, 418 74, 019 1, 089, 312 500,904 485, 563 102,845 5,923 6,095 4,635 5,244 101,884 101, 461 90,182 81, 508 14,495 15, 253 13, 265 13, 555 3,160 2,699 2,507 2,127 8,993 9,720 7,785 8,704 455 228 374 138 63,489 61, 965 54,978 51,586 59,162 60,945 52, 241 49, 921 11,804 12,318 11,155 9,631 109,162 957,089 140, 001 27, 434 96, 744 1, 330, 430 628,227 584, 360 117,843 3,772 3,081 7,406 9, 541 13,032 17, 567 17,658 20,730 16, 375 76, 495 78,140 105, 307 113,684 120, 244 116, 798 112,761 120, 557 113,103 12,167 12,524 15,922 16,800 15,887 17,147 15, 622 17,146 16, 786 1,868 1,994 2,559 2,951 3,396 3,364 3, 351 3,971 3,980 7,999 10, 270 10, 287 10,778 10, 520 12,435 11,007 11, 259 12,189 102, 301 106,009 141,481 153,754 163,079 167,311 160,399 173,663 162,433 46,439 49, 900 69, 430 71, 375 75, 607 79,603 76, 355 82,197 77, 321 46,452 46, 575 60, 688 67, 955 71,921 74, 219 70, 264 75,644 70,642 9,410 9,534 11,363 14,424 15, 551 13,489 13,780 15,822 14, 470 Federals 134, 135, 118, 111, State members Nonmembers Federal Home Loan Bank Review Table 7.—LENDING—Estimated volume of new loans by savings and loan associations Table 8.—RECORDINGS—Estimated nonfarm mortgage recordings, $20,000 and under [Dollar amounts are shown in thousands] S E P T E M B E R 1945 [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 Home Loan B a n k District a n d class of association August 1945 September 1944 1945 1944 $162,433 $173,663 $134,455 $1,330,430 $1,089,312 U N I T E D STATES Federal State m e m b e r . Nonmember-__ Federal State m e m b e r Nonmember___ N e w York September 1945 __ __ Federal State m e m b e r , Nonmember-._ Pittsburgh Federal State m e m b e r . Nonmember-_. Winston-Salem Federal State m e m b e r . Nonmember--_ Federal State'-member. Nonmember--. 77,321 70,642 14,470 82,197 1 63,489 59,162 75,644 15,822 1 11,804 1 11,149 11,461 1 9,753 5,514 4,375 1,260 16, 899 5,813 8,406 2,680 Percent change +22.1 628,227 584,360 500,904 485,563 102, 845 +25.4 +20.3 +14. 6 89,919 79,150 +13.6 4,217 4,493 1,043 37,951 40,973 10,995 29, 627 39, 592 9,931 +28.1 +3.5 +10. 7 17,143 1 13,953 130,968 95, 598 +37.0 29, 734 49, 682 16,182 +54. 7 +27.2 +34.7 4,760 1 5,081 1,620 1 6,181 8,266 2,696 4,793 7,295 1,865 117,843 1 46,001 63,172 1 21,795 13,621 13,881 11,551 110, 630 90,931 +21.7 6,550 4,521 2,550 6,734 4,430 2,717 5,363 4,078 2,110 52, 523 37,988 20,119 41, 410 30, 874 18, 647 +26. 8 +23. 0 +7.9 20,798 22, 668 14, 735 165, 311 128, 012 +29.1 11,139 7,992 1,667 11, 581 9,476 1,611 7,860 6,024 851 87, 782 67, 303 10, 226 67, 706 52, 536 7,770 +29. 7 +28.1 +31. 6 26, 322 28,442 23, 920 220, 536 188,112 +17.2 10, 826 13,712 1,784 12, 363 13, 601 2,478 10, 383 11,817 1,720 94, 215 110, 885 15, 436 78, 570 94,185 15, 357 +19.9 +17.7 +0.5 S a v i n g s Insur- B a n k s M u and Other and t u a l Individ- m ance ortloan com- t r u s t savings uals gagees associa- panies corn- b a n k s banks tions Federal H o m e Loan B a n k District and State $172, 551 $18,935 $91,661. $18, 472 $111,384 $51,154 $464,157 U N I T E D STATES Boston _ _ . 14, 061 447 4,799 9,508 5,796 2,575 37,186 1,847 676 9,620 483 1,176 259 352 17 78 2,071 308 1,659 183 483 95 1, 408 749 5,814 696 462 379 1,756 430 2,675 246 499 190 823 50 1,249 32 410 11 8,257 2,230 21,095 1,640 3,030 934 14,461 1,636 7,713 6,886 16, 863 6,002 53, 561 3,968 10, 493 674 962 3,292 4,421 745 6,141 4,010 12, 853 2,061 3,941 14, 750 38, 811 13,840 1,722 8,845 558 6,692 2, 741 34, 398 20812, 520 1,112 132 1,303 287 208 6,950 1,687 97 461 331 5,495 866 90 2,520 131 1,066 29, 249 4,083 19, 309 2,790 6,355 125 16,005 4,263 48, 847 607 4,475 2,459 1,807 4,425 2,441 410 2,685 235 406 688 265 128 509 207 352 335 801 1,052 1,163 953 457 434 1,160 125 738 1,774 5,622 1,440 1,825 1,393 759 2,454 322 447 1,021 578 219 611 319 746 2,237 7.903 10, 842 5,253 7,675 5,411 2,129 7,397 .. 32, 326 1,618 13,026 _. 2.993 28, 261 1,072 _ Connecticut . . . Maine . . _ __ M a s s a c h u s e t t s __ _ . New Hampshire Rhode Island _ _ _ Vermont New York . . . New Jersey.. _ New York. Pittsburgh Delaware _ Pennsylvania W e s t Virginia W i n s t o n - S a l e m . . _. 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.. .. .. Cincinnati Kentucky Ohio Tennessee .. ... 73, 648 60, 674 +21.4 Indianapolis 9,719 2,024 8,919 12 3,816 1,910 26,400 39,718 30, 644 3,286 29, 688 28,092 2,894 +33.8 +9.1 +13.5 I n d i a n a _. Michigan 6,009 3,710 797 1,227 3,332 5,587 12 1,193 2,623 701 1,209 12, 044 14, 356 19,174 1,139 6,192 41 7,658 8,666 42,870 18, 504 19, 545 15, 222 151,153 123,160 +22.7 8,093 9,116 1,295 8,227 10,018 1,300 6,924 7,183 1,115 64,316 75, 481 11, 356 51, 660 61, 427 10, 073 +24.5 +22.9 +12.7 14, 558 4.616 793 346 3.762 2,430 41 4,494 3,164 7,857 809 31,464 11,406 11,462 1,571 7,890 277 5,792 4,357 31,349 2,959 4,904 2,929 489 181 134 358 1. 007 45 27 2,081 2,112 3,306 154 237 1,024 1,693 2,692 149 234 304 1,462 2,522 47 22 6,502 10, 806 12,456 884 701 9,021 2, 911 24, 306 42 644 122 11, 303 9,350 80,163 68, 610 +16.8 Federal State m e m b e r . Nonmember--_ 5,346 3,560 1,390 5,980 3,983 1,340 5,234 2,916 1,200 41,197 28, 379 10, 587 35, 735 24,140 8,735 +15.3 +17.6 +21.2 __ _ Federal State m e m b e r . N o n m e m b e r . _. _. 7,730 7, 746 6,566 63,033 58, 039 +8.. 6 3,741 3,880 109 3, 665 3, 985 96 3,212 3,268 86 31,117 31, 066 850 24, 557 32, 820 662 +26/7 -5.3 +28.. 4 7,948 8, 523 6,494 67, 088 52,849 +26. 9 4,572 I 2,176 1,200 4,657 2, 346 1, 520 3,423 1,862 1,209 36, 625 19, 271 11,192 27 558 14, 865 10,426 +32. 9 +29. 6 +7.3 5, 403 5, 485 4,610 45, 410 35, 300 +28. 6 3, 281 2, 057 65 3, 475 1, 948 62 2,790 1,692 128 27, 700 16,511 1,199 23,139 10,818 1,343 +19.7 +52.6 -10. 7 Illinois Wisconsin . _. ______ Des M o i n e s Iowa_._ _ ._ Minnesota. _ _ .. Missouri.. _ North Dakota South Dakota Little Rock __ Arkansas . . _ . Louisiana.Mississippi N e w Mexico. .__ _ Texas _ Topeka. __ __ __ Federal State m e m b e r . N o n m e m b e r . __ Colorado _ K a n s a s , . _. ._ Nebraska Oklahoma . __ Portland Portland Federal State m e m b e r . Nonmember... Los Angeles 14, 787 Federal State m e m b e r . N o n m e m b e r . __ November 1945 5,149 47, 218 5,930 3,687 3,285 373 10, 296 Topeka 485 7,345 . --- Little Rock. 58, 297 179 1,810 2,456 5,038 3,757 338 Federal State m e m b e r . Nonmember-.. Des Moines 4,445 397 5,421 579 9,133 Chicago - 6,397 5,012 3,585 379 Federal State m e m b e r . Nonmember-__ . 485 403 1,177 702 10, 539 513 1,310 8,976 Indianapolis Chicago Total 7, 434 1 7, 262 91 18, 333 10, 956 9,536 8, 753 44 5,603 5,249 104 132, 571 1 69,082 62, 687 802 108,877 +21.8 61, 520 46, 532 825 +12. 3 +34.7 -2.8 Idaho Montana Oregon Utah Washington Wyoming _ __ __ Los Angeles Arizona California. _ Nevada _ 277 2,454 2,651 7,269 778 188 2,379 I 215 465 142 187 5,212 1, 909 540 185 294 134 1,498 581 1,550 443 250 i 4,445 2.093 2,129 4,973 1,466 581 15,157 8,731 851 2,839 5, 726 1, 581 19, 728 1,387 i 2,592 1,180 3,572 91 111 353 296 718 830 323 968 3,035 669 574 1,448 539 271 146 625 5,770 4, 473 2,576 6 909 5,515 484 4,302 580 4,044 1,800 16, 725 455 478 1,535 418 2,410 219 40 63 126 111 144 175 255 440 675 2,530 227 78 442 411 1,360 399 1,182 250 57 39 252 171 1, 254 27 1 169 1 246 3,791 1 774 8, 022 723 9,903 70 490 502 14, 932 2,199 18,130 25,326 | 380 14, 447 105 45 559 2,143 17,434 137 11 1, 271 23, 745 ; 310 10 2,352 97 9, 782 67, 551 587 24 j 57 Table 9 . — M O R T G A G E RECORDINGS—Estimated volume of nonfarm mortgages recorded [Dollar a m o u n t s are s h o w n in t h o u s a n d s ] Savings a n d loan associations M u t u a l savings banks Banks and trust • companies Insurance companies Individuals Other mortgagees All mortgagees Period Total 1944.... January-September September October November December Percent Total Percent Total Percent Total Percent Total Percent Total Percent Total Percent $1,563,678 33.9 $256,173 $877,762 19.0 $165,054 $1,134,054 24.6 $613,908 13.3 $4, 610,629 100.0 1,160,620 146,151 148,131 134, 359 120, 568 33.8 35.1 35.0 34.1 33.5 195,463 22, 432 20,985 20, 543 19,182 5.7 5.4 5.0 5.2 5.3 665,022 77, 000 76,181 71, 752 64,807 19.4 18.5 18.0 18.2 18.0 119,664 15, 447 16, 552 15,176 13, 662 3.5 3.7 3.9 3.9 825,206 104,479 109, 767 103, 513 95, 568 24.0 25.1 26.0 26.3 26.5 467,949 50, 676 51, 223 48, 296 46, 440 13.6 12.2 12.1 12.3 12.9 3,433,924 416,185 422,839 393,639 360, 227 100.0 100.0 100.0 100.0 100.0 1,403,161 111, 480 111, 176 151, 361 157,181 172, 421 176, 051 169, 784 181,156 172,551 35.3 31.4 32.8 34.9 34.5 35.4 36.1 36.2 37.0 37.2 177,030 17, 882 16, 034 20, 669 19,718 21, 459 21, 801 20,173 20, 359 18,935 4.4 5.0 4.7 4.8 4.3 4.4 4.5 4.3 4.2 4.1 755,368 65,109 63,933 80,000 88, 749 91, 023 91, 336 90,199 93, 358 91,661 19.0 18.4 18.9 18.5 19.5 18.7 18.8 19.2 19.1 19.7 144,697 12, 500 10, 343 13, 599 15, 680 18,981 18,572 18,062 18, 488 18,472 3.6 3.5 3.1 3.1 3.4 3.9 3.8 3.9 3.8 4.0 1,022,144 99, 200 93, 248 114,971 118, 713 125,849 121, 800 116, 964 120, 015 111,384 25.7 28.0 27.5 26.5 26.1 25.8 25.0 24.9 24.5 24.0 477,293 48, 407 43,963 52, 737 55, 749 57, 702 57, 481 54, 087 56, 013 51.154 12.0 13.7 13.0 12.2 12.2 11.8 11.8 11.5 11.4 11.0 3,979,693 354, 578 338,697 433, 337 455, 790 487, 435 487,041 469, 269 489. 389 464,157 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1945 January-September. January February March April May June July....: August September Table 1 0 — S A V I N G S — S a l e s of war bonds 1 Table 1 1 . — F H A — H o m e mortgages insured * [ T h o u s a n d s of dollars] [ P r e m i u m p a y i n g , t h o u s a n d s of dollars] Series E Period Series F Series G Total Redemptions Title II Title V I (603) Period Existing New 1944.. September October November December 1945 • January February March April May June July August -. September $12, 379, 891 590,827 598, 570 806,817 1, 855, 300 $772,767 803,819 653.222 712,133 684,424 1,194, 712 1, 467, 673 1,031,778 571, 286 420, 058 42,034 30, 695 26, 487 23,112 62,940 178,003 47,409 21,629 17, 760 _ . 15, 953 13, 653 42,680 124, 669 i U . S. T r e a s u r y W a r Savings Staff. t h e U . S. T r e a s u r y . $2, 891, 427 $16,044,085 692,066 85, 286 695,094 82, 871 1,023,355 173,858 2, 385,849 405,880 $3, 263,168 277,445 394,846 376,053 358, 572 1944: S e p t e m b e r October November December 1,074,180 847,990 889,076 837, 636 1, 540,089 2,178,055 1, 294,475 699, 740 514, 114 333, 443 317,083 437,892 381,198 404, 209 382, 536 406,103 515,161 514, 382 1945: J a n u a r y February March April May. June July _. August. _ September... 228, 327 164,073 150,456 130,100 282,437 532, 379 215, 288 106,825 76,296 A c t u a l deposits m a d e to t h e credit of ... __ $79 40 54 31 $19, 967 21,941 21,646 18, 269 67 27 37 63 80 374 347 666 968 19,006 14, 085 16, 480 14,813 22. 272 18, 841 18, 207 17, 286 15,165 $42, 43, 38, 36, Total insured a t e n d of period 592 354 053 573 $5, 844, 599 5,909,934 5, 969, 687 6,024, 560 38, 640 31,417 29, 886 26, 885 23, 707 20, 413 19,056 14, 992 12, 634 6,082, 273 6,127,802 6,174, 205 6, 215, 906 6, 262,025 6, 301, 653 6, 339, 263 6, 372. 207 6. 400, 974 i Figures represent gross insurance w r i t t e n d u r i n g t h e period a n d do not t a k e a c c o u n t of principal r e p a y m e n t s on previously insured loans. Table 1 2 . — F H L B A N K S — L e n d i n g operations and principal assets and liabilities [ T h o u s a n d s of dollars] L e n d i n g operations S e p t e m b e r 1945 P r i n c i p a l assets S e p t e m b e r 30, 1945 C a p i t a l a n d principal liabilities S e p t e m b e r 30, 1945 Federal H o m e Loan B a n k Advances New York . Pittsburgh Winston-Salem Chicago. . . . . . .__- _ _ . .. .. _ . . -. . -. L i t t l e Rock Topeka . . . . . Portland _ Los Angeles -- -- .. .. - _ .. __._ - - - S e p t e m b e r 1945 ( C o m b i n e d total) A u g u s t 1945. S e p t e m b e r 1944 - _ .. ____. . . _. 1 58 Includes i n t e r b a n k deposits. Repayments Advances outstanding Cash i Governm e n t securities Capital 2 $20,280 28,275 17, 321 18, 584 28,696 15, 521 24,024 14, 283 12, 731 10, 901 8,771 16, 932 $0 0 4. 000 0 2, 500 4,000 5,000 3,500 500 1,000 1,000 10, 500 Debentures Member deposits Total assets Sept. 30, 1945 i $161 590 636 1,427 110 122 700 263 105 15 0 390 $594 1,305 1.279 1,067 2,167 1,569 3,223 1,008 593 293 1,675 2,427 $8,762 5,476 8,494 13,026 6,898 5,978 19,158 6,365 3,551 2,835 715 18,511 $1,356 3,264 2,806 784 2,741 1,976 2,697 562 747 1,863 829 1,046 $11,028 31,346 11,914 7,133 34,908 18,574 12, 324 11,720 9,135 8,225 9,855 14,646 4,519 17, 200 99, 769 20, 671 180,808 216, 319 32,000 51,163 302,157 215,128 32, 000 46, 235 297,524 205,045 44, 000 26, 945 276, 654 9,794 18, 951 112,451 19, 661 163,527 6,993 25, 466 95, 201 23, 907 156, 976 $909 11,883 1,950 421 13, 482 7,030 5,302 906 253 1,045 1,165 6,817 $21,191 40,186 23, 283 21,011 44,715 26, 575 34, 351 18,697 13,486 12, 950 11,440 34, 272 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 . — I N S U R E D A S S O C I A T I O N S — P r o c e s s of institutions insured by the FSLIC [Dollar amounts are shown in thousands] Operations Number of associations Period a n d class of association ALL Total assets N e t first mortgages held Cash Government bond holdings Private repurchasable capital Government share capital Federal Home Loan Bank advances New mortgage loans N e w private investments Private repurchases Repurchase ratio INSURED 2,398 $3, 651, 598 $2,871,641 $256,470 $193,452 $2,983,310 $169,167 $113,977 $46,705 $91,029 $30, 219 1943* M a r c h June . - _S e p t e m b e r . __ December _ __ _.__ __ __ _ __ 2,415 2,428 2,440 2,447 3, 690,918 3, 880,999 4, 037, 926 4,182, 728 2, 868,410 2,918, 577 2,971,411 3, 009, 025 260, 749 276, 785 186, 954 302, 556 241, 818 376,177 580, 087 581, 651 3,105,080 3, 270, 834 3, 389, 891 3, 573, 896 120,138 119, 252 69, 920 69, 693 66,970 78,155 118,153 100, 340 61,139 76,899 87, 878 70, 973 83,403 103, 939 83,970 118, 496 48,955 33, 704 60,019 37, 885 58 32 71 32 7 4 5 0 1944- M a r c h ________ - 2,452 2,461 2,460 2,466 4, 327, 868 4, 583, 568 4, 713, 875 5, 012, 662 3,035, 201 3,117, 585 3, 202, 359 3, 259, 819 228, 303 788, 854 239, 936 954,934 256, 250 997, 983 269, 701 1, 227, 451 3, 710, 356 3, 922, 705 4,092, 609 4, 333, 739 50, 868 50, 832 37, 721 37, 701 90,103 118, 743 86, 840 123, 466 87,163 105, 245 101, 658 83,408 104, 494 127,945 122,016 142, 291 56, 693 46, 560 56,102 45, 985 54 36 46 32 3 4 0 3 __ _ 2,465 2,471 2,476 5,136, 903 5, 549, 563 5, 725, 962 3, 300, 601 3, 433, 871 3, 572, 964 327,151 1, 262,429 282,911 1, 585, 708 303,195 1, 607, 844 4, 538, 426 4, 786, 912 4, 981, 869 28, 781 28, 751 23, 367 54, 365 124, 936 92, 618 110, 287 126, 824 122, 098 138, 709 163,156 146, 290 71, 488 56, 279 77, 855 51 5 34 5 53 2 1,467 2, 299, 895 1, 853, 868 164,430 117, 339 1, 882, 051 137, 208 84,135 27, 381 58, 937 16, 530 28 0 . _ _ __ _ 1,467 1,468 1,471 1,466 2, 300, 2, 426, 2, 523, 2, 617, 638 079 737 431 1, 839, 302 1, 865, 991 1, 896, 312 1,915, 771 156, 792 170, 730 109,181 183,038 146, 235, 369, 373, 1, 953, 846 2, 060, 502 2,135,010 2, 257, 002 96,109 96,109 55,021 55, 021 46, 820 56, 553 87, 648 74, 780 37, 850 46, 730 54,100 43,647 54, 824 68, 235 53,138 76, 677 30, 19, 37, 21, 55 28 70 28 1944* M a r c h __. _ . _ __ June - _ _ -September _____ _ ___ __ D e c e m b e r _ __ 1, 466 1,465 1,464 1,464 2, 709, 897 2, 881, 276 2, 961, 860 3,168, 731 1, 927,122 1, 972, 881 2, 024, 635 2, 058,045 135, 664 48,913 151, 862 166, 764 509,170 620,016 652, 085 810,013 2, 2, 2, 2, 346, 042 488, 785 599, 565 760, 927 39, 957 39, 948 29, 562 29, 647 63, 892 84, 602 60, 877 90, 257 53,883 64, 474 63, 489 51, 586 68, 276 83, 856 79,126 93, 400 36,182 25, 969 35, 570 26,049 53 0 31 0 45.0 27 9 1945- M a r c h 1,465 1,465 1,467 3, 237,942 3,528,027 3, 632,197 2, 081, 813 2,164, 653 2, 255, 283 192, 904 832, 311 178, 377 1, 052, 668 178, 411 1, 067, 837 2, 895,120 3, 058, 683 3,182, 465 22,616 22, 616 18, 058 37,109 97, 940 71, 252 69, 430 79, 603 77, 321 91, 627 106, 770 96,180 46, 574 33, 601 51,428 50 8 31 5 53 5 __ _ _ 931 1, 351, 703 1, 017, 773 92, 040 76,113 1,101, 259 31, 959 29, 842 19, 324 32, 092 13, 689 42 7 ______ _ 948 960 969 981 1, 1, 1, 1, 390, 280 454, 920 514,189 565, 297 1, 029,108 1,052,586 1, 075, 099 1,093, 254 103, 957 106, 055 77, 773 119, 518 95, 281 140, 653 210,133 208, 326 1,151, 234 1, 210, 332 1, 254, 881 1, 316, 894 24, 029 23,143 14, 899 14, 672 20,150 21, 602 30, 505 25, 560 23, 289 30,169 33, 778 27, 326 28, 579 35, 704 30, 832 41, 819 18, 717 14,118 22, 745 16,316 65 39 73 39 5 5 8 0 986 996 996 1,002 1, 1, 1, 1, 617, 971 702, 292 752,015 843, 931 1,108, 079 1,144, 704 1,177, 724 1, 201, 774 92, 639 91,023 104,388 102,937 279, 684 334, 918 345, 898 417,438 1, 364, 314 1, 433, 920 1, 493,044 1, 572, 812 10,911 10, 884 8,159 8, 054 26, 211 34,141 25,963 33, 209 33, 280 40, 771 38,169 31,822 36, 218 44, 089 42,890 48, 891 20, 511 20, 591 20, 532 19,936 56 46 47 40 6 7 9 8 1,000 1,006 1,009 1, 898, 961 2, 021, 536 2, 093, 765 1, 218, 788 1, 269, 218 1, 317, 681 134, 247 104, 534 124, 784 430,118 533,040 540,007 1, 643, 306 1, 728, 229 1, 799, 404 6,165 6,135 5, 309 17, 256 26, 996 21, 366 40, 857 47, 221 44, 777 47, 082 56, 386 50,110 24,914 22, 678 26, 427 52 9 40 2 52 7 1942: D e c e m b e r _. . September December 1945- M a r c h ... September _ 33 2 FEDERAL 1942" D e c e m b e r 1943- M a r c h __ September December _ . _ . - . . . __ 537 524 954 325 238 586 274 569 2 7 1 1 STATE 1942: D e c e m b e r .943: M a r c h June.. September December ._ ___ 1944: M a r c h June _ September _ __ D e c e m b e r . __ 1945: M a r c h J u n e __ September _____ Table 1 4 — S A V I N G S — H e l d by institutions [Thousands of dollars] Insured savings a n d loans l E n d of period 1943: J u n e . . _ September D e c e m b e r - . . __ 1944: M a r c h . __ _ June - - - - September December _ 1945: M a r c h - . . June.September. _ $3, 270, 834 3, 389,891 3,573,896 Mutual savings banks 2 Insured commercial banks 3 $11,104, 707 $16,897,124 i l , 707,025 18, 572, 406 3, 710, 356 3, 922, 705 4,092, 609 4, 333, 739 12, 428,026 20, 543, 888 13,331,811 23, 362, 909 4, 538,426 4, 786,912 4,981,869 14, 378, 413 26, 363,106 Postal savings 4 $1, 577, 526 1, 683,497 1, 787,994 1, 905, 864 2, 034,136 2,197, 701 2, 342, 297 2, 513,197 2, 659, 575 2,833,067 1 Private repurchasable capital as reported to the FHLB Administration. 2 Month's Work. All deposits. s FDIC. These figures have been revised to show total time deposits of individuals, partnerships and corporations. . 4 Balance on deposit to credit of depositors, including unclaimed accounts. September total is unaudited. November 1945 Commissions (Continued from p. 33) adopted by our institutions, including term of contract, libera] prepayment privileges, rapid and personalized service and the absorption of borrowers 7 loan costs. All of these are competitive tools and should be much more effective and cause less irritation than the payment of commissions. The savings and loan industry is the largest single factor in the home financing business of the nation. We must strive to keep that position by selling our lending services and not by depending upon the payment of commissions to mortgage brokers with all of its possible evils which have been pointed out in this discussion. 59 ,ORY- U. S. GOVERNMENT PRINTING OFFICE: 1 9 4 5
@FedFRASER