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FEDERAL
HOME
LOAM
BANK
Vol. 13, No. 2
Washington, D. C.
NOVEMBER 1946
IN THIS ISSUE
Purposes and Policies of the FHLB System
By Harold Lee
Savings and Loan Assets at All-Time Peak
Research in Home Finance—A Continuing Process
The Slow-Down in Savings
. . . A n Extraordinary Challenge
". . . The responsibility which must be assumed in these times, and especially in
the coming year, by all who are engaged in the financing of home mortgages is an
extraordinary challenge.
It cannot be met by the adoption of some cll-inclusive
formula which if is argued should govern the conduct of mortgage-making activities
and will assure safety and necessary service to the public.
write one.
No one is wise enough to
Only by conscientious common council, dominated by a determined
spirit of helpfulness to our country, can we hope to develop the vision and judgment
to find solutions for the problems we confront.
"We should face squarely the fact that we are in the midst of the most serious
inflation of real estate prices in our history and that many thousands of veterans and
others are being forced to buy homes they cannot afford and will be unable to pay for.
This is a repetition of the conditions which caused the unprecedented mortgage panic
of the thirties with its attendant obliteration of thousands of lending institutions and the
loss of billions of dollars to millions of people of small means.
That disaster cannot
be repeated without far-reaching consequences and certainly it is up to directors and
managements of all our financial institutions involved in the making of mortgages to
do everything in their power to curb present trends and bring down the prices of homes
and apartments.
"In my judgment what is most needed is an end to name-calling and recrimination,
an end to buck-passing claims that it is the 'other fellow* who is making all the unsound
mortgages, and an end to the continuous clatter that Government is to blame for
everything.
It is time for the substitution of really sincere cooperation on the part of all
concerned to provide houses for our people safely, promptly and at fair prices . . ."
Commissioner Fahey, unable to attend the
recent meeting of the United States
Savings and Loan League in
Milwaukee, Wisconsin, sent a message on
November 22, 1946. The above paragraghs
are excerpts from his statement.
r#ef
Purposes and policies of the FHLB System
By Harold Lee
Mortgage credit requirements for the financing of homes by member
savings a n d loan associations during 1946-1947 m a y reach the record
volume of $7 billion. M u c h of this money will be raised out of repaym e n t s on existing loans a n d by use of present liquid assets. W i t h o u t
doubt, however, one of t h e most urgent needs is not only to accept
every dollar of savings offered b u t to stimulate increased savings by
every sound means. This also raises the question as to t h e degree of
liquidity which should be maintained, and a decision a t this time is
of p a r a m o u n t importance.
T h e F H L B System has already taken several positive steps, which,
together with new measures under consideration, will strengthen its
ability to serve all member institutions. Savings and loan associations
face a challenge which will require intelligent effort to obtain a n d
retain funds from the public as well as intelligent use of the credit
facilities of t h e Bank System. [Page 35.]
Savings and loan assets at all-time peak
Before the year is out, total savings and loan assets will undoubtedly
have passed t h e $10-billion mark. Complete figures for last year's
operations reveal t h a t t h e y s t a r t e d 1946 with assets of $8,747,000,000
and h a v e been gaining a t t h e r a t e of more t h a n $100,000,000 a m o n t h .
Last year was the first billion-dollar year in growth of assets and
private share capital.
During t h e war years, assets increased 45 percent, with private
capital showing the largest dollar gain—$2.7 million. Most of these
funds went into a Government bond portfolio which a m o u n t e d to almost $2.5 billion a t t h e end of last year. [Page J^l.]
Research in home finance—a continuing process
T h e basic economic aspects of home mortgage finance, a b o u t which
all too little is known, offer wide possibilities for future research. With
wartime pressures relieved, p r i v a t e a n d Government studies can be
extended and improved without sacrificing work on the statistical tools
necessary for day-to-day operations.
To help stimulate such projects, this article introduces a series surveying p a s t progress and current developments in economic research
in the field of housing and home mortgage finance. [Page 45..]
The slow-down in savings
I n spite of an all-time high of $130 billion in the selected types of
private savings included in t h e F H L B A series, the anticipated postwar
decline in t h e r a t e of gain is becoming increasingly a p p a r e n t . I n the
last three half-year periods since J a n u a r y 1945, it has fallen from 10
to 7 to 4 percent, respectively, a n d available d a t a show t h a t the trend
is still continuing.
Savings a n d loan associations, the only outlet to show a larger dollar
gain during t h e first six months of this year t h a n in t h e last half of 1945,
also m a t c h e d their previous rate of increase. All other media studied
in this article reported lower percentage advances. [Page 49.]
November 1946
September highlights
A new high mark in FHLB advances to member institutions was
set, with a balance outstanding of
$235 million a t the end of t h e m o n t h .
Assets of all insured savings and
loan associations passed $7 billion.
The nine-month increase in 1946 in
their loan portfolios exceeded t h e
combined gains registered in t h e
previous four years.
Their liquid resources have declined almost $300 million since t h e
beginning of the year. The net
inflow of share capital during t h e
t h i r d quarter was only half as great
as t h e increase in mortgage loan
holdings.
T h e net inflow of money into all
savings
and
loan
associations
amounted to $60 million in, September. This was the smallest monthly
volume since July 1944.
New loans made by all savings and
loan associations were at the lowest
level since March, b u t still above
the $300-million mark.
T h e recordings of all mortgages of
$20,000 or less totaled $929,000,000—
off 7 percent from the all-time high
established in August. Insurance
companies were t h e only lenders to
show an increase during t h e m o n t h .
N H A estimated t h a t
807,500
dwelling units had been started
t h r o u g h September 30. Almost 80,000 units of all types were completed
during t h e month, bringing t h e t o t a l
to 521,000 for t h e year-to-date.
Building costs continued to climb
gradually; but materials production
showed encouraging gains.
FEDERAL HOME LOAN BANK
Contents
Page
No. 2
PURPOSES A N D POLICIES O F THE FHLB SYSTEM, by
Harold Lee
35
S A V I N G S A N D L O A N ASSETS A T ALL-TIME P E A K . .
41
RESEARCH I N H O M E
PROCESS
45
FINANCE—A
CONTINUING
THE S L O W - D O W N I N S A V I N G S
49
STATISTICAL D A T A
NOVEMBER 1946
The Federal Home Loan Bank Review
is published monthly by the Federal
Home Loan Bank Administration under
the direction of a staff editorial committee. This committee is responsible
for interpretations, opinions, summaries',
and other text, except that which appears in the form of official statements
and signed articles.
Communications concerning material
which has been printed or which is desired for publication should be sent to
the Editor of the Review, Federal Home
Loan Bank Building, Washington 25,
D. C.
The Federal Home Loan Bank Administration assumes no responsibility for
material obtained from sources other
than itself or other instrumentalities of
the Federal Government.
New family dwelling units
Building costs
Savings and loan lending
Mortgage recordings
Gl lending
FH A activity
Federal Home Loan Banks
Insured savings and loan associations
Share investments and repurchases
Foreclosures
Savings of individuals
'
58-59
59-60
60-61
61 - 6 2
62
62
62
63
63
64
64
SPECIAL FEATURES
News notes
Worth repeating
:
Monthly survey
Amendment to rules and regulations
Directory changes of member, Federal and insured institutions
Reference list of VEHP regulations
40
44
53
57
Savings bond campaign
64
57
64
•
Contents of this publication are not copyrighted
•
N A T I O N A L HOUSING AGENCY
Wilson W. Wyatt,
Administrator
FEDERAL HOME LOAN BANK
ADMINISTRATION
John H. Fa hey, Commissioner
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 /?ev/ew
PURPOSES AND POLICIES OF THE
FEDERAL HOME LOAN BANK SYSTEM
How far have the Bank System and its members progressed?
Where are they headed? What can the industry and the Bank
Administration do to make the way easier? Answers to these
questions are discussed frankly by the Governor in the following
article which provides a harvest of food for thought for all members of the Bank System.
By HAROLD LEE, Governor
Federal Home Loan Bank System
•
D U R I N G the past few months I have had the
opportunity and pleasure of meeting with a
number of groups of savings and loan leaders
representative of all parts of the country. Because the problems which we have considered are
actually of industry-wide importance, I welcome
the chance to bring them to the attention of the
entire Bank System membership through the
medium of the R E V I E W . The discussions at these
meetings have centered around the progress of the
System and its members; the probable mortgage
volume immediately ahead; and improvements
recently made or in the making; also suggestions
for further improvements and strengthening in
order that we may fully measure up to pur opportunities and responsibilities.
Living in new times with new risks there is great
need for the savings and loan business to scan
the horizon as well as to review the past.
Growth
There is little doubt that by the end of this year
the total assets of all members of the Federal
Home Loan Bank System will pass the $10-billion
milestone. The gain in total resources during the
first half of this year exceeded the annual gain in
assets in all previous years, with the exception of
1933—the first full year of operation—and 1944
and 1945. Member savings and loan associations
now represent nearly 90 percent of the resources
of all iustitutions of this type in the United States;
and in some Districts the proportion is running as
high as 97 and 98 percent of all operating associations in those areas.
A comparison of the average size of all savings
and loan associations at the end of the years 1940
and 1945 discloses a marked difference in the
Novembzr 1946
growth of insured associations and uninsured
nonmembers. Insured associations have grown
from an average of $1,200,000 to $2,400,000, while
uninsured nonmembers have an average size of
$390,000 as compared with $374,000 in 1940.
The difference in size and trend of uninsured nonmember associations as compared with insured
institutions is noteworthy and graphically portrays the value of both insurance and membership
in the Bank System.
Mortgage volume, 1946-1947
In the light of the national effort now being
made to increase home building during 1946 and
1947 to levels never before approached in the
history of the country, and in view of the increasing competition being encountered in the
home financing field, it is important for us to
anticipate as best we can the mortgage loan
demands for 1946-1947 in order that savings and
loan associations may be prepared to handle their
proportionate share of the business.
Of the goal for 1946-1947 of 2,700,000 new
dwelling units to be built under the Veterans
Emergency Housing Program, about 2,450,000
units of permanent construction are expected to be
financed by private funds. According to estimates of the Office of the Housing Expediter, the
aggregate of financing necessary for these units
will exceed $15 billion.
Eliminating the type of financing which is not
normally handled by savings and loan associations, and considering mainly residential property
of 1- to 4-family units, mortgage financing under
this program may amount to nearly $12 billion for
the two years.
Currently, savings and loan associations are
making somewhat over a third of all loans to
finance homes. Applying that ratio to the $1235
billion estimated needs of the veterans program,
associations may be called on to supply up to
$4 billion, in addition to satisfying normal requirements from borrowers which in 1944 and 1945
together amounted to over $3 billion, exclusive of
loans for construction purposes. Savings and
loan financing of multi-family projects, through
individual or joint participation loans within the
regulations on this type of lending, will add even
more to these figures.
During the first seven months of 1946 member
savings and loan associations made new loans at
an annual rate of approximately $3.6 billion.
With the increase in construction under the Veterans Emergency Housing Program, it may reasonably be contemplated that the volume of loans
which member savings and loan associations will
be called upon to make during 1947, if they are to
retain their proportionate share of the business,
will at least equal that of 1946. Thus, it appears
that mortgage credit for the financing of homes,
approaching a record volume of at least $7 billion,
may need to be supplied by member savings and
loan associations during these two years.
Obviously the $7-billion estimate of total lending in 1946-1947 by member associations in the
United States as a whole, does not mean that
associations must receive new savings to that extent over and above withdrawals, since a large
proportion of the amount needed will come from
cash and Government bonds on hand and repayments on outstanding mortgages.
The net inflow of private savings invested in all
member associations currently is at the annual
rate of about $1.1 billion. As you know, however,
the ratio of repurchases to new investments has
been rising sharply and may be expected to rise
considerably higher as a greater volume of consumer goods, housing and equipment becomes
available. Even assuming an optimistic view,
the net increase in the private capital of all members during 1946-1947 would not be likely to
exceed $2 billion.
Based on the current rate, it is estimated that
mortgage loan repayments during the two-year
period will approximate $3.5 billion. Thus, funds
available from net gain in share capital and loan
repayments in 1946-1947 would probably not
exceed $5.5 billion, leaving at least $1.5 billion
of the estimated $7-billion loan volume for the
period to be obtained through utilization of excess
36
cash, liquidation of bond portfolios, Bank borrowings and the sale of mortgage loans.
These figures show that, despite the presently
liquid condition of savings and loan associations
and the operations of the \\ Federal Home Loan
Banks as a national credit reservoir, institutions
should more than ever encourage systematic
thrift in their communities to help meet the demand for sound loans in the next few years.
Need for expansion in savings
We all know that during the past few years
there has been a tremendous upsurge in the volume
of new money received by associations. Some
very pertinent questions, however, are: how long
will the gross inflow of funds hold up at current
levels; are these funds long-term or short-term in
character; and what is likely to be the withdrawal
trend? In this connection it is well to keep in
mind that the purchasing power of the savings
dollar is substantially less than in previous years.
Undoubtedly, this means that as investors in
savings and loan associations withdraw funds in
the future, their withdrawals will be in terms of
dollars with lower purchasing power and thus in
greater aggregate volume.
Even under present conditions, the rate of
withdrawals is rising sharply. I n relation to new
investments, the ratio of repurchases has risen
from 51 percent in 1944 to 54 percent in 1945,
and to 61 percent in the first six months of 1946.
As the people of the country use a larger amount
of their income for the purchase of articles and
equipment not hitherto available, and as they increase withdrawals on accumulated savings for
the purchase of homes, household equipment and
other substantial items, the probability is that the
rate of withdrawals will rise higher at the same
time that the inflow of new funds declines. Under
such conditions it would not be long before the
present margin of new savings over withdrawals
would be substantially narrowed if not wiped out.
In view of the trends just discussed and of the
unprecedented demands of the coming period for
additional mortgage credit, there is a very real
need for managers throughout the nation to examine closely the situation with respect to the
ratio of repurchases to new investments, the rate
of capital turnover, and the average life of the
loans in which funds are being invested.
Without question, one of the most tirgent needs
Federal Home Loan Bank Review
is not only to accept every dollar of savings
offered but to stimulate increased savings investments during the next several years by every
sound means. The amount of funds which will be
available will not otherwise be sufficient to fully
meet the responsibilities and obligations to those
who will be in need of home financing.
Liquidity of associations
In* a market where the demand for mortgage
loans for the financing of homes is expected to
absorb virtually all of the available funds, a decision at this time as to the degree of liquidity which
should be maintained is of paramount importance.
Because of the generally liquid condition of all
associations, managers are now in an especially
favorable position to analyze this problem and
reach conclusions as to the liquidity position that
should be maintained. If a decision on this
matter is postponed, the demand for mortgage
credit will have absorbed surplus cash and securities and we shall be in a far less advantageous
position to make sound determinations and put
them into effect.
Savers in these days want safety and availability of their funds above everything else and they
regard cash and holdings 01 Government securities
as an index of these two factors. That they place
availability above rate of return has been demonstrated time and again by the failure of associations paying high dividends to attract as large a
proportionate volume of savings as those paying
lower rates but having substantially greater
liquidity ratios.
If savings and loan associations are to retain the
confidence of the public, they must continue to
pay withdrawals without delay. In order to do
this, reasonable liquidity is essential.
Need for increased reserves
The growth of savings and loan associations in
recent years is a source of satisfaction to all in the
industry. I t will be unfortunate, however, if we
permit our pride in this growth to blind us to its
pitfalls. There is a real danger of a progressive
thinning-out of the reserve cushion which can be
a by-produc1> of rapid growth unless management
acts promptly to effect proportionate increases in
the amount of its reserves and undivided profits.
Many soundly managed associations have
succeeded in maintaining their reserve ratios
November 1946
despite phenomenal growth. . This is not true,
however, of all associations.
In the calendar year 1945 the assets of all members of the Bank System increased by over
$1,250,000,000, or approximately 20 percent.
But reserve allocations failed to keep pace with
this growth and, in consequence, the national aggregate reserve and undivided profits ratio for members declined from 7.2 to 6.9 percent of assets.
To the extent that this trend is permitted to
continue, the present financial strength of our
associations will suffer. Especially now, when
we are facing a record volume of new lending and
the future holds many uncertainties, every effort
should be made to build up reserves.
Secondary liquidity reserve
Many of the economic risks are beyond the
control of local institutions. This was one of the
reasons for the creation of the Federal Home
Loan Bank System. In recognition of the
responsibility of the Federal Home Loan Banks
to have funds immediately available to meet
emergency demands of their members, the Banks
are establishing a secondary liquidity reserve of
$100 million in addition to the cash and Governments which each Bank ordinarily has on hand
to meet normal demands, and in addition to the
statutory reserve required under Section 16 of
the Federal Home Loan Bank Act. This liquidity
reserve may be utilized to meet the needs of members when inter-bank deposit funds may not be
available and pending the obtaining of additional
cash through the sale of obligations of the Banks.
Consolidated bonds
I t is not unlikely that during the next few
years the Federal Home Loan Bank System will
be put through severe tests of its ability to serve
the cash needs of the industry, arising from the
increasing demand for mortgage credit. Because
of the statutory limitation on the issuance of
debentures of five times the paid-in capital of the
Federal Home Loan Banks, this method of
financing might at some time prove to be inadequate. A practicable method has been worked
out and plans duly approved for the issuance,
when it appears to be desirable, of consolidated
Federal Home Loan Bank bonds on a basis of not
over 12 times the total paid-in capital stock and
37
the reserves under Section 16 of the Federal
Home Loan Bank Act. This will materially
increase the capacity of the Banks to make
advances or give financial assistance to members,
and it is believed will prove adequate for their
requirements.
FHLB purchase of Gl loans
Plans are being perfected for the purchase -by
the Federal Home Loan Banks from their members
of GI home mortgage loans guaranteed by the
Veterans Administration. I t is contemplated
that these loans will be purchased at par with an
annual service charge in an amount fully adequate
to compensate the member institution for the
servicing of the loan. The details of the plan are
still in the study stage.
The purpose is to assure veterans adequate
facilities at all times for home financing with
institutions best fitted by tradition and experience
to serve their needs. I t will also undoubtedly
result in a substantial increase in the earnings of
both the member institutions and the Federal
Home Loan Banks as well as assist member
institutions in maintaining their relative position
in new mortgage lending.
Supporting the Bank System
In addition to these, the Federal Home Loan
Bank System will always be ready and willing to
seek out and develop other methods by which to
render better service to its member institutions.
But the Federal Home Loan Bank System can
reach its highest ability to serve only if it receives
wholehearted support from its members.
I am sure all members will agree it is not reasonable or fair to expect to have a Federal Home Loan
Bank which is a strong reservoir of credit ready to
come to their support in bad times if they do not
loyally support it in good times. Surely all must
realize that in times of serious depression, associations cannot afford to depend upon commercial banks for necessary assistance.
You will undoubtedly recall that urban foreclosures during the depression reached an all-time
peak of 1,000 daily—mortgage credit disappeared
and many financial institutions were forced to
close because of frozen real estate loans and
because they did not have a strong liquid reservoir
of credit of their own. I t became necessary for
the Government to create the Home Owners'
38
Loan Corporation to relieve the resulting serious
situation. That agency came to the rescue
and refinanced institutional mortgagees. The
Federal Home Loan Bank System was organized
out of this experience, to provide an adequate
nationwide reservoir for thrift and home financing
institutions. This credit reservoir is maintained
for Bank System members—it will be as strong
or as weak as they make it.
Tomorrow seems a long way off when things
are going well, but tomorrow does come. The
question is, what will be the situation of member
institutions when tomorrow arrives and funds are
not so plentiful, when commercial banks are seeking to contract rather than expand their commitments, and when savings and loan associations are
again faced with the need to borrow substantial
funds in order to maintain normal operations?
Member deposits encouraged
A further method by which member institutions
may support the System is by increasing their
deposits with their Federal Home Loan Banks.
I believe that such an increase is desirable. I n
the Federal Reserve System, member banks are
required by law to carry substantial cash reserves
with their Federal Reserve Banks and they receive no interest returns on these deposits. I t is
a price which they pay in order to have a reserve
system. The desirability of imposing a similar requirement by regulation in the case of the Federal
Home Loan Bank System has been the subject
of serious discussion recently, but I feel confident
that deposits in proper amounts will be maintained
voluntarily when the members appreciate the
mutual benefits flowing from this relationship.
I t would be highly beneficial for member
institutions to increase substantially their deposits with their respective Federal Home Loan
Banks. The amount of funds normally carried
on deposit by members with various other
institutions at no interest clearly indicates that
many members have failed to take advantage of
such opportunity to support their Federal Home
Loan Banks. Virtually all associations carry a
portion of their liquid assets in the form of demand
deposits and an additional amount in time deposits. If these funds are placed on deposit
with the Federal Home Loan Banks they will
be as readily available as if placed elsewhere
and will materially assist in enabling the Banks
Federal Home Loan Bank Review
to maintain balanced budgets in the periods of
low earnings.
Price Controls off.Buildins
Materials
Conclusion
In this discussion I have endeavored to analyze
some current trends in savings and loan financing,
to point out some of the reasonable probabilities
for the immediate future, and to discuss the
problems arising from these trends and probabilities. Savings and loan associations throughout
the country are facing the challenge of ability
to provide a larger volume of home financing
than ever before in our history. To accomplish
this will require intelligent effort to obtain and
retain funds from the public, and intelligent use
of the credit reserve facilities which the Federal
Home Loan Bank System provides. I t will
require an equivalent effort on the part of the
Bank System to render the types of service which
are needed, and a correlative measure of support
by Bank System members. With these elements
present, and with the application of sound appraisal and loan policies, I am confident that the
challenge will be met and that the coming year
will be one of the most successful in the history of
savings and loan operations.
Needs for Home Sites
•
M O R E than 300 square miles of raw land
must be developed by communities in 1947,
the NHA indicated recently in outlining the scope
of the V E H P during the coming year. The cost,
exclusive of homes, is estimated at $1 billion.
The current rate of home construction is
rapidly exhausting available sites in and around
cities where public utility services and adequate
roads already exists, NHA reported. Although it
is estimated that only about 50 percent of 1946
construction will be on raw land, the 1947 figure
is expected to rise to about 75 percent.
NHA has undertaken a comprehensive program
for the development of needed building sites
through national and local action. The latter
will be required in determining the housing needs
of each community, the selection of well located
sites and the provision of necessary public utilities.
Means of assuring the production of the necessary
amount of utility materials are being given top
consideration by NHA.
November 1946
•
With the removal of price controls on
building materials, President Truman
asked Housing Expediter Wyatt to report to
him as soon as possible on recommended steps
necessary to carry out the V E P H under
these conditions.
Following this request Mr. W y a t t issued
the following statement: " I n the meantime, all other controls will be kept in force—
the priorities and allocations which channel
materials and equipment into veterans'
housing l the limitations on non-residential
construction, and the price ceilings up to
$10,000 on houses for sale and up to $80 on
rents. Premium payments will continue on
all plans now in effect, unless modifications
are made necessary by sharp price rises on
t h e i t e m s c o n c e r n e d . T h e guaranteed
markets plan also will be continued for new
materials and new types of housing and
government loans for industrialized housing
will be pressed.
"The impact of the removal of price controls will be less serious than it would have
been without the unprecedented increase in
materials production and the near-record
volume of housing that has been put under
way through the Veterans Emergency Housing Program. There were more than 800,000
units placed under construction by the end
of September and completions have been
m o u n t i n g s t e a d i l y ; t h e h o m e building
industry has been put into.high gear. But
no one should minimize the effect of the removal of price controls and the difficulties of
the task ahead, if vetera'ns are to get homes
and apartments in a volume and at prices
even approaching their needs.
" I n my report to the President, I will make
plain the problems ahead. The demands of
our homeless veterans cannot be met through
building as usual today any more than they
could when the Veterans Emergency Housing
Program was announced."
The Housing Expediter submitted the
requested report to the President late in
November. However, as the R E V I E W went
to press, no action had yet been taken and no
information was available as to the recommendations made.
Rent control extended
to 88 new areas
of 1946 or until the President declares
t h a t a s t a t e of emergency no longer
G I home loan volume
passes $2 billion
Eighty-eight rental areas with a
t o t a l population of more t h a n three
and a half million persons were
brought under r e n t control on November 1. For most of t h e areas this is
the first time they have been under
control, while regulations are currently being restored in seven localities.
Included in the areas are 23
college towns where t h e influx of
students and veterans enrolling in
courses under the G I Bill has been
a factor in increasing t h e pressure
on existing housing facilities. R e n t
control is now in effect in 650 areas
throughout the country.
exists.
More t h a n 386,700 veterans h a v e
financed home loans, totaling $2,060,000,000, with t h e aid of G o v e r n m e n t
guarantees provided u n d e r the Servicemen's R e a d j u s t m e n t Act.
An
average of more t h a n 14,000 v e t e r a n s
are obtaining g u a r a n t e e d home loans
each week. T h e principal a m o u n t
of these loans is in excess of
$75,000,000, nearly half of which is
guaranteed or insured by t h e Veterans Administration. T h e c u r r e n t
average for each loan is a b o u t
$5,800.
Third guaranteed market
contract for prefabs issued
T h e third contract to be issued
under t h e g u a r a n t e e d m a r k e t provisions of t h e Veterans Emergency
Housing Act was completed early
this m o n t h with t h e American
Fabricators, Louisville, K e n t u c k y .
T h e t e r m s call for t h e production of
7,500 factory-built plywood houses
b y t h e end of 1947.
Duties waived
on imported lumber
I m p o r t duties h a v e been t e m p o rarily lifted from timber, lumber and
lumber products by authorization of
the President on October 25. This
action is expected to increase t h e
inflow of such products for use in
the Veterans Emergency Housing
Program.
One of t h e serious obstacles to
maintaining t h e nation's present
lumber imports, which have been
coming in a t the rate of more t h a n
1 billion board feet annually, is competitive bidding on world m a r k e t s .
This situation is expected to be m e t
in p a r t by temporarily lifting the
import duties on lumber products.
T h e waiver is to remain in effect
until termination of'provisions of the
Veteran
Emergency Housing Act
40
Although imported lumber constitutes less t h a n 3 percent of the
total U. S. lumber supply, the more
t h a n 1 billion board feet imported
annually represents a n i m p o r t a n t
addition of this critically short
material.
Non-residential construction
controls tightened
T h e Civilian Production Administ r a t i o n has m a d e t h e controls on
non-residential construction
more
stringent. T h e $15,000 allowance
for repair on such structures now a p plies only to buildings having floor
areas of 10,000 square feet or m o r e ;
smaller jobs henceforth h a v e a ceiling of $1,000. A $200 ceiling is now
fixed for construction of swimming
pools, boardwalks and roller coasters;
for concrete surfaces of drive-in theaters, parking lots a n d tennis courts;
a n d for walls or fences of wood, brick,
concrete or concrete block.
Priority authorizations
exceed 9 0 0 , 0 0 0 units
T h r o u g h t h e end of September,
priority authorizations issued by
F H A , F P H A a n d t h e D e p a r t m e n t of
Agriculture cover more t h a n 900,000
dwellings. These totals include both
new construction a n d conversions.
T h e y do n o t include t h e 192,000 units
begun under t h e t e m p o r a r y housing
program.
PROGRESS O F T H E VEHP—SEPTEMBER 3 0 , 1 9 4 6
807,500 units s t a r t e d account for 67 percent of 1946 goal of 1,200,000
Units
started
Program component
Total i
T
New p e r m a n e n t
_.
2
' ___
Conventional
Factory-built
T e m p o r a r y re-use
Conversions
Trailers 6
_
3
807, 500
430, 200
521, 200
286, 200
496, 300
24, 900
4
5
___
Units
completed
_
__
___ „_
.
192, 200
66, 800
27, 300
52, 100
64, 600
27, 300
i2 September data preliminary.
Includes factory-built units; breakdown of conventional and factory-built completions not
available.
3 Adjusted to exclude factory-built units; includes approximately 6,500 permanent units
financed
by New York State.
4
Factory shipments.
5 Family equivalent units financed by Federal and non-Federal funds. Total accommodations started amount to 226,500 units, comprising 157,800 family and 68,700 dormitory units.
Total accommodations completed amount to 60,900 units, comprising 43,300 family and 17,600
dormitory units.
e Factory shipments.
Federal Home Loan Bank Review
SAVINGS AND LOAN ASSETS REACH AN
ALL-TIME PEAK
With final figures now available from virtually all state supervisory departments, it is possible to present industry-wide asset
totals as of the end of 1945. The gains registered last year,
while the largest on record, are already past history judging by
preliminary data on 1946 operations.
•
I T is safe to say that by the end of December,
the combined assets of all operating savings
and loan, building and loan, homestead associations and cooperative banks will have passed the
$10-billion mark for the first time in the history
of their operations. Starting with resources of
$8,747,000,000 at the beginning of this year, this
total has grown at the rate of more than $100,000,000 each month. The previous all-time peak of
$8,829,000,000 established in 1930 was passed early
this year.
Combining the reports of the various state
supervisory departments on nonmember associations with the data on all Bank System members
published in July x reveals that 1945 was the first
billion-dollar year for these institutions. The
increase in both total assets and private share capital exceeded this figure. However, in spite of the
unusually high volume of new mortgage loans
made (only $20 million below the 1927 peak), the
high ratio of loan repayments held the net increase
during 1945 in this account to just over a halfbillion dollars. There is little doubt that even this
account will be in the billion-dollar class during the
current year as mortgage financing activity has
reached new heights in volume.
The gradual contraction in the number of
operating institutions continued, with a net decline
of 130. The number active today is less than half
of the peak of almost 13,000 reached in 1927.
With only half the number of institutions and
approximately an equal volume of assets, it is
obvious that the size of the average savings and
loan association is now twice what it was in the
late twenties.
Summary of war years
In the four years following Pearl Harbor, the
total assets of all operating savings and loan
associations increased 45 percent from just over
$6 billion at the end of 1941 to $8.7 billion by the
close of last year. The number of active institutions declined from 6,905 to 6,149 during this
period; and the combined effect of higher assets
and fewer associations raised the average size
from $870,000 at the beginning of the war to more
than $1,400,000 at the start of this year.
The private share capital invested in these
institutions showed the greatest dollar growth
($2.7 billion) of any single account on the consolidated balance sheet. Virtually all of these
funds were used for the accumulation of a Government bond portfolio which amounted to almost
$2.5 billion by the end of 1945.
With the exception of opportunities to finance
war housing during the early part of the period
and the rising volume of activity beginning about
VE Day, mortgage lending opportunities were
greatly restricted. The $700-million increase in
the mortgage loan account during the jour years
was not so large as that registered in the first six
months of this* year!
More than $175,000,000 was added to the reserve and undivided profits accounts of these
institutions from 1941-1945—a gain of almost
1
" T h e Trend of Member Association Assets During the War ," F H L B
REVIEW, July 1946, page 289.
41
November 1946
719631—46
2
40 percent. This was not quite equal to the rate
of gain in total resources, however, with the
result that the ratio of reserves to total assets
of all operating associations showed a slight decline during the period.
Geographically, the 89-percent increase in the
assets of associations in the San Francisco region
was the highest shown in any Federal Home Loan
Bank District. Institutions in the Indianapolis,
Des Moines and Winston-Salem areas registered
four-year gains ranging from 50-60 percent. The
Cincinnati region also showed an average rise
above that for all operating associations (47
percent). Only the Little Rock and Pittsburgh
Districts reported gains of less than 30 percent
for the entire period.
Sources of 1945 growth
As pointed out in the introduction, 1945 was a
billion-dollar year for 'the net growth in savings
and loan resources. Total assets of all operating
associations rose almost $1,300,000,000, or 17
percent, from the balance of $7,458,000,000 on
hand at the end of 1944. The gain, both on a
dollar basis and percentagewise, was substantially
higher than in the previous year.
Additions to the savings invested in these institutions by the general public were primarily
responsible for the higher volume of resources.
The net gain of $1,060,000,000 in private share
capital last year may be contrasted with slightly
more than $800,000,000 during 1944. Based on
the balance at the beginning of 1945/ this was an
increase of 17 percent, or 2 points better than the
rate of gain in the preceding year. An additional
$14,700,000 of the Government investments in
savings and loan associations was retired during
the year.
Getting down to other details of the industry
growth, it would be well first to adjust the gross
figures for the reduction in mortgage pledged
shares during the year. Thus the adjusted net
increase in assets was $1,327,686,000. As indicated in the preceding paragraph, the net new
Comparative statement of condition for all operating savings and loan associations in the'United
States, 1945, 1944 and 1941
[Dollar amounts are shown in thousands]
Increase or decrease
R a t i o t o t o t a l assets
All operating associations
1945-1944
Item
1945
1944
1945
1941
1944
1945-1941
1941
Amount
Percent
Amount
Percent
ASSETS
F i r s t mortgage loans
$5,520,566
O t h e r loans ._
22, 998
R e a l estate sold on contract
116,673
R e a l estate o w n e d 32,824
F e d e r a l H o m e L o a n B a n k stock
_ __ ._
71,820
U . S. G o v e r n m e n t obligations _ _
2,420,017
O t h e r i n v e s t m e n t securities
36,001
C a s h on h a n d a n d i n b a n k s
450,486
Office b u i l d i n g - . . _
57, 319
F u r n i t u r e a n d fixtures
6,132
O t h e r assets
12, 553
T o t a l assets
$4, 982, 556 $4, 798,453
59, 922
19,298
219,181
147,965
327,620
60, 383
62,251
47, 553
1,671,115 |
135,989
31,495
339,751
413,065
56,105
52,366
« 8,366
6,808
18, 297
10,963
Percent
63.11
0.26
1.33
0.38
0.82
27.67
0.41
5.15
0.66
0.07
0.14
Percent
Percent
79.82
66.81
1.00
0.26
3.65
1.98
5.45
0.81
0.79
0.83
22. 41 }
2.26
0.42
5.65
5.54
0.93
0.70
0.14
0.09
0.31
0.15
$538,010
3,700
- 3 1 , 292
- 2 7 , 559
9,569
748,902
4,506
37,421
4,953
-676
1,590
10.80
$722,113
19.17
-36,924
-21.15
-102,508
-45.64
-294,796
15.37
24,267
44.81
0)
14.31 1
110,735
9.06
1,214
9.46
-2,234
-9.93
14.50
- 5 , 744
15.05
- 6 1 . 62
- 4 6 . 77
-89.98
51.03
0)
32.59
2.16
- 2 6 . 70
-31.39
8,747,389
7,458,265
6,011,237
100.00
100.00
100.00
1, 289,124
17.28
2, 736,152
45.52
$20,821
7, 364,807
144, 726
$35, 529
6,305,167
183, 288
$195,692
4,651,777
246,340
0.24
84.19
1.65
0.48
84. 54
2.46
3.26
77.38
4.10
-$14,708
1,059,640
- 3 8 , 562
-41.40
16.81
-21.04
-$174,871
2, 713,030
-101,614
-89.36
58.32
- 4 1 . 25
3.62
0.63
1.21
1.11
0.54
0.34
63,100
73, 929
73, 881
2,818
-11
- 2 , 472
-623
43,107
29,025
49.73
102.67
195.13
4.42
-0.04
-19.49
- 3 . 39
11.09
15. 81
-27,899
108,269
39,197
-362
- 2 , 360
- 1 0 , 035
-12.81
287.42
54.03
-0.54
• -7.21
- 4 9 . 57
1, 289,124
17. 28
LIABILITIES AND CAPITAL
U . S. G o v e r n m e n t i n v e s t m e n t s
Private repurchasable capital 2
M o r t g a g e pledged shares
A d v a n c e s from F e d e r a l H o m e L o a n
Banks
._ ___ __ __
Other borrowed money
_. __
L o a n s in process
_
O t h e r liabilities
.__
_ _ __
P e r m a n e n t , reserve or g u a r a n t y stock
Deferred credits to f u t u r e operations
Specific reserves
___ ._ _
General reserves
U n d i v i d e d profits
T o t a l liabilities a n d c a p i t a l
1
2
3
189,982
145, 938
111, 744
66,559
30,369
10,210
17, 778,
431,892
212, 563
8, 747, 389
126,882
72,009
37, 863
63, 741
30, 380
12,682
18, 041
388, 785
183,538 J
7, 458, 265
217,881
37,669
72, 547
3 66, 921
32, 729
20, 245
469,436 Ir
6,011, 237
2.17
1.67
1.28
0.76
0.35
0.12
0.20
4.99
2.43
100.00
1.70
0.97
0.51
0.85
0.41
0.17
0.24
5.21
2.46 ]
100.00
f
7.81 \
100.00
} *>
2, 736,152
C1)
45.52
No comparable breakdown available.
Includes deposits and investment certificates.
Includes specific reserves.
42
Federal Home Loan Bank Review
investments accounted for the lion's share—79
percent. The rise in non-savings liabilities (such
items as borrowed money, loans in process, and
other miscellaneous liabilities) contributed 16 percent of the growth; while the remaining 5 percent
was reflected in net worth accounts which include
reserves, undivided profits, deferred credits, and
guaranty stock. The accompanying chart shows
that this distribution of the growth factors is
slightly different from the 1944 pattern, due principally to a higher proportion for the non-savings
liabilities.
Source of growth of all operating savings and
loan associations, 1945 and 1944
Estimated number and amount of assets held
by all operating savings and loan associations, 1945, 1944 and 1941
[Dollar a m o u n t s are s h o w n in t h o u s a n d s ]
Assets
Number
F H L B District
1941
1944
1945
1941
1945
1944
U N I T E D S T A T E S - __
6,149
6,279
6,905 $8, 747, 389 $7,458,265 $6,011,237
Boston
_
New York _ _ _ _
Pittsburgh
Winston-Salem
Cincinnati _
Indianapolis
Chicago _
Des Moines
Little Rock
Topeka
S a n Francisco
341
764
1,019
882
799
315
741
363
305
280
340
347
777
1,080
897
808
317
749
371
304
289
340
353
1,115
1,402
680
883
326
782
389
316
306
353
901, 511
1,074,746
643,309
1,024,461
1, 568, 314
509,020
816, 731
494,161
331,219
340,407
1,043, 510
820, 568
892,862
561,145
884, 719
1, 333,641
437,966
687,283
417,058
295,736
292, 562
834,725
690,390
825,945
500,659
664, 322
1,064,451
324,955
563, 506
319,190
256,709
249,613
551,497
[Dollar a m o u n t s are s h o w n in t h o u s a n d s ]
1944
Item
Amount
Gross gain in assets
A d d : decline in pledged shares
Percent
$1,289,124
38, 562
A d j u s t e d gain in assets
Source:
Net new investments
N o n - s a v i n g s liabilities
Net worth
Total
1,044, 932
213, 728
69,026
1, 327, 686
78.7
16.1
5.2
—
Amount [Percent
~
854,196
25, 716
—
879, 912
,--—
777,428
66,009
36,475
879, 912
88 4
\\
^^j
—-
O n the asset side
Again in 1945, the outstanding development on
the asset side of the balance sheet was the increased
liquidity of the associations. Cash and Government bonds accounted for about one-third of total
assets, as against only 28 percent at the end of
1944. The ratio of the mortgage loan portfolio
to total assets was 63 percent at the close of 1945—
down 4 points during the year.
In terms of dollars, association holdings of Government bonds increased almost $750 million
compared with an increment of $817 million
during 1944. Cash on hand or in banks was up
$37 million to reach a total of almost $450 million.
Mortgage investments showed the first sizable
gain since 1941 and were a little more than half a
billion dollars above the 1944 total. The real
estate owned account was down to less than onehalf of one percent of total assets, following a $28million decline during the year.
is interesting to note that there are now four
Federal Home Loan Bank Districts in which the
assets of all operating savings and loan associations
total more than $1,000,000,000: Cincinnati, New
York, San Francisco and Winston-Salem. At the
end of 1944, Cincinnati was the only region to
report an asset volume above that mark.
The largest percentage gain was registered by
associations in the San Francisco region where
their aggregate assets increased 25 percent over
1944 totals. Institutions in the New York District
ranked second with an average gain of 20
percent. Associations in the Chicago, Des Moines
and
Cincinnati regions also had rates of gain
above the
average for the industry as a whole,
The
Cincinnati and San Francisco regions
reported the largest dollar gains last year. Associations in these two Districts accounted for over
one-third of the total industry increase.
G R O W T H IN ASSETS OF ALL OPERATING
SAVINGS AND LOAN ASSOCIATIONS
AMet
11-San Francisco
2-New York
7-Chicago
5-CincinnatI
States
IO-Topeko
6-Indianapolis
4-Winston-Salem
Regional variations
The accompanying chart and table indicate the
geographic variations in the rate of growth during 1945 and since the beginning of the war. I t
November 1946
PERCENT
INCREASE 1 9 4 5 OVER 1 9 4 4
$ 1,044
1,075
817
8-Des Moines
United
.
3-Pittsburgh
494
m
1,568
B.747
V//S///////////////////////ZZZZ
340
509
1,024
643
9-LHtle Rock
331
I -Boston
902
43
* * * WORTH REPEATING * * *
SAFETY: "The tradition of the savings and loan business, particularly
in pre-depression days, was to attract
savings with the highest possible
return. While savers do like a high
return, those savings institutions
which have emphasized safety and
availability with a low rate of return
usually have out-dfstanced the highdividend institutions in the attraction of savings."
Fred T. Greene, President,
F H L Bank of Indianapolis,
National Savings and Loan
Journal, October 1946.
PREFABRICATED HOUSING: "The
widespread housing emergency has
focused attention on the prefabricating housing industry. Factory-made
housing inevitably will come to
occupy a larger part in the home
construction industry. Association
managers are urged to study all new
developments in prefabricated housing since new methods in loan procedure will have to be adopted.
Those houses meeting satisfactory
construction standards and specifications, and where backed by financially sound companies and reliable
dealers, should be approved and
pre-building commitments made to
the dealer and home pur chaser/'
Grant H. Longenecker," Michigan Savings and Loan League,
Savings and Loan Journal, October 1946.
LOCAL PLANNING:". . . If they
are not to repeat the building boom
history of the '20s with its dreary
miles of unsatisfactory housing already falling into decay, the communities will have to act now.
National Housing Administrator
Wyatt has served notice that the
location and planning of new housing is a local problem . . . The tools
for control—zoning, subdivision control, building codes—are in local
h&nds.
And the costs of public
services, which will be high or low,
economical or wasteful, as the
development is well or ill-planned,
will fall on local taxpayers . . . The
ills of haphazard growth . . . are
all too well exemplified in towns
and cities round about. Yet if
44
speculative development alone guides
the vast new housing programs, we
shall see these ills multiplied many
times."
Editorial, New York Herald
Tribune, October 1, 1946.
RESEARCH NEEDED: " . . .
A
strong case can be made for a
program of industry-wide cooperative but centrally directed research
aimed at the production of data
which would assist in the interpretation of long-run trends. Some of the
factors to be taken into account
should' be population trends, net
building rates, land and building
costs, investment patterns, and the
important relationships between real
estate values and fluctuations in
income payments, nationally and
regionally. Armed with these data,
adequately interpreted, the task of
the appraiser in a period of inflation
should be greatly simplified and the
value of his service considerably
increased."
Cecil L. Dunn, The Appraisal
Journal, Oetober 1946.
SOUND STANDARDS: " P r e s e n t
market values and current costs are
higher than levels which history has
demonstrated to be stable, longterm values. Because of these increased uncertainties, standards of
sound mortgage lending should not
be relaxed, but rather strengthened.
Reserves should be created against
which a reversal of trends can be
cushioned.''
Frank C. Rathje, Chicago City
Bank & Trust Co., before Mortgage Bankers Association convention, Cincinnati, Ohio, October 9,1946.
OUTLOOK: "We have all the tangible elements of sustained prosperity—
manpower, raw materials, money
supply, coupled with a vast back-log
of needs and wants. The intangibles,
still needed, include self-restraint,
enlightened self-interest, the will and
wisdom to translate the tangibles into
a lasting, higher standard of living."
Marriner S. Ecoles, Chairman,
Board of Governors, Federal
Reserve System, before National
Outlook Conference, Washington, D. C , October 7,1946.
TEAMWORK: "The old conception
of what constitutes adequate housing
for the mass of people is not an acceptable conception today—and will
bring us to failure if we insist upon
setting it up as the measure of our
progress. We must find means of
making better housing available for
the many to whom it has been
unattainable. . . .
", . . We can do so, if we develop
the sort of eo-related efficient industry we need . . . if we recognize
that waste and excess cost of inefficiency in production can be
eliminated—if we harness a fourhorse team of management, labor,
finance and Government, pulling
evenly along a road from which
many toll gates of cost can and must
be removed."
Raymond H. Foley, FHA Commissioner, before Morris Plan
Bankers Association, Virginia
Beach, Va., October 24, 1946,
THE BOOKSHELF
Although inclusion of title does not
necessarily mean recommendation by
the REVIEW, the following recent publications will be of interest.
POSTWAR
TAXATION
AND
ECONOMIC PROGRESS:
By
Harold M. Groves. McGraw-Hill
Book Co., Inc., 330 West 42d St.,
New York 18, N. Y. 1946. 432
pp., charts. $4.50.
MAKING HOME TOWN PLANS
WORK: (Veteran's report No. 3).
Cro well-Collier
Publishing
Co.,
New York. 1946. 67 pp., charts.
BUILDING
CODE
SUGGESTIONS FOR VEEP: VEHP Community Action Bulletin No. 4,
August 1946. National Housing
Agency, Washington 25, D. C.
CONVERSIONS
PROVIDE
HOMES FASTER:
VEHP Community Action Bulletin No. 5,
August 1946. National Housing
Agency, Washington 25, D. C.
AMERICA BUILDS—YOUR
OPPORTUNITY:
Wildrick & Miller,
Inc., 630 Fifth Ave., New York 20,
N. Y. 1946. 24 pp. Free.
Federal Home Loan Bank Review
RESEARCH IN HOME FINANCE—
A CONTINUING PROCESS
This article sketches briefly the evolution of housing research by
private groups and Governmental agencies in this country, especially on economic and financial aspects of the subject. Subsequent issues of the REVIEW will report on later developments.
I
I N the American pioneer society the provision of shelter was the personal concern of
the individual citizen. But, as our modern industrial civilization developed, the problem of
housing grew increasingly complex, affecting the
economic and social well-being of the whole *
nation. I t becomes imperative, in these circumstances, that any attempted solution be based on
Foreword
There are few economic fields about which
so little is known of previous experience or
fundamental characteristics as housing and
home mortgage finance. There are no
short cuts bo the answers to the "who, when,
what, where and why" questions about these
subjects; they can be found only through the
laborious and painstaking process of research. . Students of the field are corvinced,
however, that from such effort will come
useful and practical knowledge.
Without neglecting the always-important
problems of day-to-day operations, the postwar period should provide the opportunity to
devote greater attention to the basic economic aspects of mortgage finance. In addition to the studies by lending institutions,
private foundations and Government agencies, the full-scale resumption of educational
activities by trade associations and by colleges and universities will open new avenues
of research.
In the interest of stimulating such projects, this article begins a series which will
survey the progress that has been and is
being made in research in housing and home
finance. Comment either upon the material
presented or on particular phases in which
readers are interested will be welcome.
November 1946
a solid groundwork of facts. Valuable information
could undoubtedly be culled from past experience,
once sufficient data can be assembled and subjected to objective examination and definitive
analysis.
Even before the last great depression stimulated
their concern, Americans were becoming increasingly curious about the fabric from which their
economic and social jeans were cut. The yen to
find out what makes the physical world tick had
long since opened new frontiers to their science
and industry. I t was natural, then, that they
should try to adapt the scientific research techniques so successful in those fields to economic
problems which had been regarded as unsuited
to such methods. While much remains to be done
before the new techniques can be applied with
complete reliability, the scientific approach to
such economic problems as housing finance seems
the most promising yet tried.
Housing research, as we know it today, goes
back only to the early 1900's. The Federal
"Census of 1910 provided a little information about
the country's housing resources, and a few sketchy
statistics 1 —mostly on current construction—were
available from other Government sources. I t
was not until after World War I that privately
sponsored study in this field began to appear.
In fact, most organized effort, public and private,
to gather and interpret data on the complex
operations of home building, marketing and
ownership began during that period. Many
present Federal statistical series, especially; can
be traced to work begun then.
President's Conference, 1931
Despite its broad scope, some of the work of the
President's Conference on Home Building and
Home Ownership (1931) fell into this category.
Although best remembered, especially in the
savings and loan industry, for the recommenda45
tions which led to the creation of the Federal
Home Loan Bank System, the Conference was
actually called to collect, analyze and evaluate all
the.information available on the nation's housing
needs and resources. Prior to the Conference, 31
committees were appointed to study subject matter ranging from dwelling design and equipment to
home financing and general housing research.
In its report, the Research Committee commented, "In examining the literature of housing
and the best researches in this field, we have been
impressed both with the large mass of material
and . . . with the inadequacy of that material
as a basis for effective programs." Specifically,
the Committee criticized existing researches for
their fragmentary nature both as to material and
time covered; for their lack of comparability; and
for "failure to deal with a sufficient number of
cases or . . . in such a way as to provide convincing answers to unanswered questions. . . . "
The Research Committee prescribed as a remedy
the establishment of a permanent, privately endowed housing research foundation. The foundation should catalogue all previous research, serve as
a clearing house for proposedstudies and integrate
separate existing projects, suggest most advantageous procedures for specific problems, and itself
undertake projects nationwide in scope. I t should
be divorced, both administratively and financially,
from the Government, the Committee felt, to insure
complete freedom as to subjects studied and publication of findings. Close cooperation should be
maintained by the foundation, however, with Government agencies, as well as with academic, business
and civic groups and existing research organizations and laboratories. Both operating policies and
salaries should be sufficiently liberal to attract
most highly trained personnel in the field, thus the
guaranteeing the quality of results achieved.
The search (or facts
I n addition, the Research Committee prepared
a lengthy list of topics on which research would be
particularly valuable. These were itemized in
detail under the major headings of "environment;
structural considerations; financial, business and
income problems; appearance and function; and
education." I t is interesting to note in passing
that the first proposed financial topic—"the
elimination of excessive charges for junior financing on small homes"—is definitely dated in light
46
of present home financing practices. However,
other items listed under that heading remain of*
interest to us even after 15 years, because the
need for current facts on some problems cannot
be solved on a once-for-always basis.
For example, it would be especially helpful
today to determine income, expenditures, and
savings of renters and of home owners with homes
owned clear or with homes mortgaged. As proposed, this study was to show breakdowns according to types of dwellings occupied, income levels,
occupational groups, size and composition of family, and size and geographic location of community.
Using the data obtained from the renter group on
exact expenditures for shelter, heat, light and
particular services covered by rental charges,
large-scale rental operators could determine with
fair accuracy the type of such housing needed and
the economic feasibility of competing for given
segments of the rental market.
Among other researches of interest to the home
financing industry were proposed studies of fluctuations in home property values; state supervision
of savings and loan institutions; analysis of appraisal methods with a view to recommending
standard terminology; land contracts, their utility
and weaknesses; and work of central inspection
bureaus maintained by lending institutions to
improve the quality of construction.
Similar recommendations were made for each
of the other phases of the problem examined by
the President's Conference group. The Research
Committee also believed it would be useful to
maintain up-to-date series on basic collateral data
such as population trends and migrations, housing
vacancies and changing real estate values.
Government research
Just how much these recommendations actually
accelerated research projects cannot, of course, be
determined. I t is true, however, that the following decade saw the Government increase the tempo, volume and diversity of its activities in this
field. Some of the reports of the National Resources Planning Board, the Temporary National
Economic Committee and the Central Housing
Committee contained valuable information on
housing needs and resources. The Bureau of
Standards has published a continuing series of
technological reports on building materials and
equipment. The various Government agencies
Federal Home Loan Bank Review
REAL
ESTATES
SHARE
OF
PRIVATE
B i l l i o n s
10
30
of
D o l l a r s
40
50
DEBT
TOTAL PRIVATE LONG-TERM DEBT
Total Real Estate debt
Total Nonfarm real estate debt
Total Residential nonfarm real estate debt
SOURCE:- Dept. of Commerce
have made some excellent studies on certain particular aspects of the problem. Among the more
recent of the.se were Structure and Growth oj Residential Neighborhoods in American Cities (FHA,
1939); Waverly, A Study on Neighborhood Conservation (FHLBB, 1940); and Public Housing Design,
A Review oj Experience in Low Rent Housing
(FPHA, 1946).
One of the more important Federal contributions in the past few years, however, has been the
effort to develop statistical tools from existing
knowledge of actual experiences in the United
States. Some Federal statistics related to housing
are considerably older, but those dealing with real
estate finance experience began to increase m
quantity and quality after the Bureau of Foreign
and Domestic Commerce published the Real
Property -Inventory and the Financial Survey oj
Urban Housing in 1934. Estimates on foreclosures were made on an annual basis as far back as
1926 b u t the present FHLBA monthly series was
started in 1934. The building cost index, compiled monthly by the FHLBA until its recent
transfer to the NHA, was set up in 1935. Mortgage recording data from scattered localities were
available earlier but the first nationwide figures
were published by the Federal Home Loan Bank
Board early in 1939.
The Department of Commerce and the Department of Labor have been especially active in the
evolution of these statistics. As an example,
the series on expenditures for construction in the
United States covers the period since 1915—
collected first by the Bureau of Foreign and Domestic Commerce and since 1930 by the Bureau
of Labor Statistics. The Bureau of the Census
in 1940 expanded its previous activities into a fullfledged Census of Housing, and since that time has
made a number of sample housing surveys and
analyses. One of the most recent, published in
November 1946
collaboration with the Bureau of Labor Statistics,
was Effect oj Wartime Housing Shortages on Home
Ownership (1946).
Most housing data gathered by the Government in recent years have, of necessity, had to be
related to day-to-day operating statistics—first
for the program to house war workers and second,
since the end of the war, for the development of
the Veterans Emergency Housing Program. Because of this, research and statistical groups in
the National Housing Agency have had to limit
their functions largely to these problems.
The need for coordination
As we progress further into the postwar era, it
becomes increasingly imperative that we expand
and refine the statistical tools with which we have
been obliged to work during the emergency periods. I n the past, Governmental housing research
has been spotty in choice of subject matter and
quality of performance. The work has been
scattered among different agencies, and frequently
conducted on a single-project basis. Often, too,
it has been a by-product of other research or of
operating procedures, subject to curtailment because of inadequate funds or personnel. The full
potentialities of some excellent isolated studies
have not been realized simply because they were
isolated portions of an otherwise unexplored area.
Coordination of research has long been advocated by both private and public groups working
in the field.
Privately financed projects
Privately supported organizations and business
concerns have likewise made some notable contributions to the literature in the field. Space limitations prevent consideration here of all the work
completed or now being conducted by these
groups, but a quick perusal of some of the better
47
known ones will serve to indicate the trend of their
activities.
The National Bureau of Economic Research is a
privately supported nonprofit research organization incorporated in New York in 1920. Although
similar in form to the non-Governmental housing
foundation proposed by the Research Committee
of the President's Housing Conference in 1931, it
conducts research on all types of social, economic
and industrial problems. Its exploration of housing problems has produced such outstanding
reports as Residential Beat Estate, Its Economic
Position as Shown by Values, Rents, Family Incomes, Financing and Construction, Together with
Estimates for All Real Estate (1941).
A new study on urban real estate finance is now
in progress as part of the Bureau's long-range
Financial Research Program which is in its tenth
year. The need for this study has been recognized
since the Program began but other projects had
first priority. By 1944, however, an exploratory
committee had outlined suggested research on the
subject and, on the basis of this report, the Urban
Real Estate Finance project Was set up in 1945.
Outline of new study
The specific areas marked out for research by
the National Bureau were: Part I, The Urban
Real Estate Market and Its Financing Needs;
Part II, Facilities and Practices in Urban Real
Estate Finance; Part III, Risk Experience in the
Financing of Urban Real Estate; Part IV, Effects
of Fluctuations and Change in Urban Real Estate
on Its Financing; and Part V, Influence of Government on Urban Real Estate Finance. At
present, under, the direction of two well known
experts, work is proceeding independently on
Parts I and V. Preliminary investigations are
now under way on Part II which will comprise
studies of four institutional areas: savings and
loan associations, insurance companies, commercial banks and mutual savings banks. Risk
experience will be investigated for Part III by
sampling actual mortgages acquired over the past
24 years by each of the four institutional groups.
Work on Part IV is being deferred "pending
progress on other phases of the project."
The importance of this research becomes apparent when it is realized that more than half the
national wealth in the United States consists of
land and the improvements and buildings erected
48
on it. Urban real estate alone was recently estimated to have a value equal to one-third our
national wealth. Of vital significance to our
financial system arid our general economy, the
financing of urban real estate is the largest single
area, of private finance. I t is likewise one of the
largest areas of capital formation and utilization
of savings. The mounting postwar activity in
real estate gives added emphasis to the importance
of housing studies such as are being made by the
National Bureau. •
Twentieth Century Fund
One of the most thorough existing canvasses of
the nation's housing problem as a whole was conducted by the Twentieth Century Fund, a nonprofit foundation established in 1919 for scientific
research in current economic problems. Recognizing the need for a definitive over-all study of
housing, the Fund in March 1940 began an extensive inquiry into the subject. Four years
later, in 1944, the results were published under the
title, American Housing, Problems and Prospects.1
The goal of the project, as described in the foreword of this publication, was "to reveal the obstructions to a greater volume of building and more
adequate housing and to suggest ways in which
these obstacles might be removed."
Part I is a careful analysis of the various
factors affecting the production of housing, and
includes six chapters on this phase of the subject.
Part II discusses in detail the marketing of housing, and five chapters were devoted to a study of
this element. Some of the chapter headings
give perhaps an even better clue to the factual
findings of this report: Land for Housing, The
House as an Industrial Product, The Business of
Housebuilding, Industrial Trends in Housebuilding, The Behavior of the Housing Market, Housing Investment and Finance, and Government
and the Housing Market. There are more than
a hundred pages in the appendix which contains a
collection of statistical material and a bibliography valuable for reference purposes.
The final chapter in the book presents a program
of policies which the experts on the Housing Committee of the Twentieth Century Fund who were
guiding the study feel will meet the postwar
housing problems.
i See "Survey of American Housing, Problems and Prospects," F H L B
REVIEW, May
1944, p. 205.
Federal Home Loan Bank Review
THE SLOW-DOWN IN SAVINGS
The predictions for a slow-down in the rate of savings by individuals following the end of the war are clearly borne out by
statistics for. the more common types of media. Funds accumulated during the first half of this year were less than half as large
as in the same period last year.
•
T H E turning point in the savings curve has
already been reached. From a study of the
statistics on savings during the past two years,
it is evident that the peak in the rate of savings
by individuals was reached late in 1944 or early
in 1945. Both the percentage increase and the
dollar gain shown in the totals for individual savings covered by the Federal Home Loan Bank
Administration series were successively lower in
the last half of 1945 and the first half of this year.
These figures reflect the fact that, on the one
hand, the aggregate volume of consumer income
has remained about the same. On the other hand,
there has been an increasing volume of consumer
expenditures as more and more of the longsought radios, washing machines, refrigerators and
automobiles come on the market. Tax rates have
been reduced only slightly; and at the same time
the level of consumer prices has been rising
steadily. I t is inevitable then that there will be
a smaller amount of consumer income available
for savings. The Department of Commerce
reports that in the fourth quarter of 1941, savings
constituted almost 20 percent of the disposable
income of individuals, in contrast to 14 percent
in the second quarter of this year.
There are several series on savings, most of
which measure the changes from the over-all
economic point of view taking into consideration
factors such as fluctuations in consumer instalment debt, home mortgage debt, and other related
data. The FHLBA series, however, is limited to
deposits in savings and loan associations, time
deposits in insured commercial banks as evidenced
by passbooks, accounts in mutual savings banks,
postal savings, the redemption value of U. S.
Savings Bonds (series A through E and 2% percent postal savings bonds) and reserves on life
insurance policies. By the selection of these
specific items, a conscious effort is made to limit
the study to those channels used by the average
November 1946
American to satisfy that " rainy-day" streak in
his psychological make-up.
The trend since 1944
The slow-down in savings is best demonstrated
by the declining rate of increase shown in the last
three half-year periods, beginning with January
1945. I n the first half of 1945 the net increase
in the selected media was just over $10 billion,
' or almost 10 percent of the balance at the beginning
of that period. I n the second half of last year,
the net growth in these savings accounts was a
little less than $8 billion, while the percentage increase was down to 7 percent. I n the period ending June 30 of this year, the net gain was not quite
$5 billion—a rate of increase of only 4 percent.
The total amount of these savings had reached
$130 billion by the end of June, which, of course,
was a new high for the series. The accompanying
table shows the net gains registered by each of
the media in recent periods. From this it may
be seen that the pace is slowing down to a walk
in most cases and in savings bonds and postal
savings bonds there was a declining balance during
the first six months of 1946. Savings and loan
Estimated net change of savings in selected
media, by six-month periods, 1945-1946 *
[Dollar amounts are shown in millions]
Dollar change
T y p e of savings m e d i a
Savings a n d loan associations__
._
Life insurance c o m p a n i e s .
M u t u a l savings b a n k s
Insured commercial
banks
P o s t a l savings- _ _ . ._
2 ^ % postals
U . S. b o n d s , '
Total
Second
First
half
half
1945 . 1945
P e r c e n t change
First
half
1946 P
First
half
1945
Second
half
1945
First
half
1946
$520
1,631
1,046
$540
1,631
954
$585
1,538
893
8.2
4.8
7.8
7.9
4.6
6.6
7.9
4.1
5.8
3,075
326
3,027
281
3,529
1,522
2,100
194
-1
-481
14.2
13.5
0.0
12.1
12.2
10.3
0.0
4.7
7.5
6.4
-1.2
-1.4
10,127
7,955
4,828
9.5
6.8
3.9
1
See footnote on summary table for explanation,
p Preliminary.
49
From 1941 through 1945
The annual rate of increase in savings by individuals in the media covered by this study follows
a fairly definite pattern, as shown in the accompanying chart. In the prewar years cf 1940 and
1941, the rate was 6 and 8 percent, respectively.
I t then began to climb—to 15 percent in 1942 and
22 percent in 1943. The peak,.as previously indicated, was in 1944 when the increase over the
precediDg 12 months was 23 percent. Last year
the rate of gain declined to 17 percent and projecting the experience of the first half of this year
on an annual basis the rate would be 8 percent—or
just about equal to the 1941 figures.
The significant role of the war bond program in
the period from 1941 to the end of last year is clearly apparent in the summary table on this page.
The balance of U. S. savings bonds increased sixfold, from less than $5 billion to more than $34
billion at the close of 1945. The time deposits of
associations were the only outlet to show a larger
dollar gain than in the preceding period. These
institutions were also able to match their previous
rate of increase, but in all other instances the
percentages were lower.
Redemptions of Series E bonds exceeded new
sales in every month except January during the
first half of this year. On the other hand, the
balance of Series P and G bonds (not included in
the tabulations) continued to increase steadily
during the same period. This contrast between
E bonds and F and G bonds may be explained by
the difference in the types of investors holding
these issues. Series F and G bonds are generally
bought by persons in .the upper income brackets
or by corporations and institutions. The fact
t h a t these groups of investors have not reduced
their holdings or cut down on the volume of their
purchases indicates they have not yet reduced
their current savings to any appreciable extent.
Estimated savings of individuals in selected media, 1920-1945
[Millions of dollars]
Savings
a n d loan
associations 1
D e c e m b e r 31
Life insurance
companies 2
Mutual
savings
banks 3
Insured
commercial
banks i
Postal
savings
5
War
savings
securities
a n d U . S.
savings
bonds i
2M%
postal
savings
bonds 6
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
8,048
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 1
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
1936
1937
1938
1939
1940
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
1941
1942
1943
1944
1945
4,652
4,910
5, 494
6,305
7,365
27, 393
29, 610
31, 256
34,100
37, 362
10, 490
10, 621
11, 707
13, 332
15,332
13,
13,
16,
21,
27,
1, 392
«• 1,459
1,837
* 2, 406
3,013
85
84
83
82
82
4, 750
10, 526
19, 574
29,153 i
34, 204
62,023
' 71,126
86,815
107,106,
125,188
4,390
9,103
15,689
20, 291
18,082
1920
1921
1922.__ .
1923
1924
1925
1926
1927
1928
1929
1930
-_
_
...
_.
_
1931
1932
1933 _-_
1934
1935
-_.
._
,
261
916
864
728 1
830
$2,117
1,902
2,397
2,704
3,863
1
2
Estimated private investments, excluding pledged shares. Source: Federal Home Loan Bank Administration.
Estimated reserves, unpaid dividends, dividends left to accumulate and surplus to policyholders, less premium notes, policy loans and net deferred and
unpaid premiums. Source: The Spectator, Chilton Company, Inc., Philadelphia, Pa.
s Deposits. Sources: 1920 through 1937, Comptroller of the Currency; 1938 through 1945, The Month's Work, National Association of Mutual Savings Banks.
4
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 1945 are estimates
based5 on total time deposits. Source: Federal Deposit Insurance Corporation and Federal Home Loan Bank Administration.
Outstanding principal and accrued interest on certificates of deposit, outstanding savings stamps and unclaimed deposits. Source: Post Office Department,
e 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
1945 also includes U. S. War Savings Bonds, Series E. Source: Treasury Daily Statements.
* Revised.
50
Federal Home Loan Bank Review
ANNUAL
The gain in mortgages held by these institutions
during the first* nine months of this year was more
than three times the increase shown in the same
1945 period.
RATE OF INCREASE IN SAVINGS
Percent
| I
20
l 1l l
ill
-.•ill
15
10
III
•
5
m • • •
Mill
1 1l l 1
0
*
1940
Estimate
1941
1943
rate for 1942
first 6 mos
based on actual
1945
1944
1946*
insured commercial banks as evidenced by passbooks, and the amount invested in postal savings
accounts more thaD doubled in the same period.
Savings in commercial banks had reached nearly
$28 billion, and postal savings had passed $3
billion.
Investments in savings and loan associations
were up 58 percent during the same period and
totaled more than $7 billion. Accounts in mutual
savings banks increased 46 percent and their $15billion aggregate was located in only 17 states.
Life insurance policy reserves amounting to
more than $37 billion continued to dominate this
group of savings media. Although their rate of
growth was slightly lower during the war years
than most of the other media, the record of this
investment over the past 25 years indicates that
it will again account for a major share of the new
savings accumulated each year.
Other types of savings
From the economic point of view, increases in
various forms of individual debt are, of course, an
offsetting factor to the accumulations of savings.
I n the 12-month period ending in August 1946,
the Federal Reserve Board estimates that total
consumer credit rose $2.5 billion, or 44 percent.
I t now stands at more than $8 billion—the highest
since 1942.
Also to be considered is the recent sharp increase in the home mortgage debt. Some estimates indicate that the rise in the first quarter of
this year was greater than in all of the year 1945.
The records for all insured savings and loan associations provide an additional clue to this trend.
November 1946
Conclusion
From information available on third quarter
operations, it is apparent that the trend toward a
lower volume of savings is continuing. Perhaps
the most important factor in the immediate future
will be the behavior of prices of consumer goods.
If price fluctuations stay within comparatively
narrow limits during the next few months there
will probably continue to be a net excess of new
savings, even though the gains are at a slower rate.
Priority Structure Strengthened
•
SEVERAL additional steps were taken during
October by the Housing Expediter's Office and
the Civilian Production Administration to channel
scarce building materials into the Veterans Emergency Housing Program:
Home builders are now able to use H H priorities
ratings for certain types of electrical service entrance equipment (service switches, panel boards,
etc.); furnace pipes, fittings and ducts;fittingsfor
copper tubing; building and sheathing papers;
copper sheet and galvanized-steel sheet. There
are now 66 materials for which priorities may be
used.
Priorities on certain materials were made "extendible"—that is, they may be passed backward
to sources of supply. Priorities for nails, steel and
wrought-iron pipe, pipe nipples, cast and malleable
pipe fittings, copper sheet, galvanized-steel sheet,
and copper tubing and copper-tubing fittings may
be extended to the wholesalers of these items.
Priorities for sand-lime brick, common and face
brick, structural-clay tile and concrete building
blocks are extendible back to the manufacturer.
Eight additional materials were also added to
the set-aside list with the requirement that dealers
hold specified percentages of their stocks indefinitely for housing and other priorities. This brings
to 18 the number of materials on that list.
The set-asides for these new items range from
60 percent of specified types of water heaters to
100 percent of prefabricated housing, sections and
panels not made under Direction 8 to PR 33.
51
Index (1935-1939 = 100)
550
Index (1935-1939 =100)
©0 PRIVATE
250r1
T~
CONSTRUCTION
Nonform 18 2 Family Units
{LABOR DEPT.)
500
200
J
1
INDUSTRIAL
PRODUCTIONS
(FED. RESERVE)
f
(2) SAVINGS a LOAN LENDING
(FHLBA)
450
150
400
100
1941
1942
1943
1944
1945
1946
1943
1944
1945
1946
1944
1945
1946
1944
1945
1946
1945
1946
Index (1935-1939 » 100)
200
350
MANUFACTURING
EMPLOYMENT
(LABOR DEPT.:
150
100
1941
1942
Index (1935-1939 = 100)
300 1
!
1
INCOME PAYMENTS
(COMMERCE DEPT.)
250
200
150
1941
Index
1942
1943
1944
1945
$1,200 I
[
BUILDING C0S1" INDEX
Standard six-room ho use
, (NHA)
160
140
•?•***
,...•—"**•"
,,
>#...••'
fe^
„
:"^ i
—~
»«*"•**"
1941
$300 1
1
FHLB ADVANC • s
OUTSTANDING
K
1942
100
1943
52
1942
600
1944
1945
1946
~
Percent
1941
1942
1943
120
1943
REPURCHASE RATIO
A
A
\^r
1941
I
RECORDINGs
MORTGAGE
Ail lenders
300
.
^
1943
^MATERIA L
• ^
Millions
200
1942 •
900
LABOR^^,
5*"^
1941
Millions
(1935-1939-100)
180 1
120
100
1946
•\/\y
v vV
/\J
1945
Assns.
\
Vr
1944
All insured S S L
1946
1941
1942
1943
1944
federal Home Loan Bank Review
((((((MONTHLY
Postwar peak in industrial
production maintained
Industrial production continued during September and early October at the revised August
level of 177 percent on the Federal Reserve Board's
seasonally adjusted index (1935-1939 = 100). According to the Civilian Production Administration,
this postwar record will probably represent a
plateau beyond which the general index will not
advance during the remainder of the year unless
the supply of basic materials, particularly steel,
can be increased. However, further increases in
the output of building materials and the post-OPA
revival in the meat packing industry are among
the factors which are expected to add a little to
the over-all record.
The September production was as good or
better than August in most respects, the chief
exception being a sharp drop in activity at meat
packing plants. There was little change in the
output of other non-durable goods while durable
manufactures rose, reflecting chiefly further gains
in the machinery and transportation equipment
industries. The production of building materials
in many cases exceeded the high levels of August.
New postwar marks were reached in the output of
cast iron soil pipe, hardwood flooring, warm air
furnaces, cement, asphalt roofing and bathtubs.
In these and other August-September comparisons it is significant that since the latter was a
shorter work month, some gain in daily output is
represented even though the total production
declined by as much as 10 percent.
Construction activity began to level off in September after climbing steadily since VJ Day,
according to preliminary estimates of the Bureau
of Labor Statistics. Both employment and expenIndex
[1935-1939=100]
Home construction (private) L . .
Foreclosures (nonfarm) *
Building material prices . .
Savings and loan lending i
Industrial production l
Manufacturing employment *___
Income ^payments L.. .___ ._ _.
r
Sept.
1946
225.2 * 238.3
7.0
6.8
149.4
148.2
435.9
442.0
178.0 ' 177.0
145.9 ' 147.2
246.4
252.1
Revised.
i Adjusted for normal seasonal variation.
November 1946
Aug.
1946
Percent
change
Sept.
1945
Percent
change
-5.5
+2.9
+0.8
-1.4
+ 0.6
-0.9
-2.3
96.3
8.5
131.8
228.6
167.0
128.1
229.0
+133.9
-17.6
+13.4
+90.7
+6.6
+13.9
+7.6
S U R V E Y » » »
ditures for work put in place were slightly below
August levels. By the end of September, $8.5
billion had been spent for construction (including
minor building repairs) during 1946, more than
double the expenditure for the first nine months
of 1945.
Allowing for seasonal changes, employment in
non-agricultural establishments advanced somewhat, reflecting continued gains in industries
manufacturing durable goods and in trade and
service lines. An over-all seasonal decline, however, brought the total of employed persons down
from the all-time high of 58.1 million in July
to 57.4 million during September.
Wholesale prices of industrial products have
generally continued to show relatively moderate
advances in recent weeks. However, following
the lifting of price ceilings from livestock and
meats, these prices as well as some other agricultural commodities advanced sharply and exceeded
previous peaks reached during the lapse of price
controls in July.
Department store sales increased by less than
the normal seasonal amount in September from
the unusually high level of August. As measured
by the Federal Reserve Board's adjusted index
(1935-1939 = 100) they stood at 269 in September
compared with 290 in August and 202 in September
1945.
Building permits declined
in September
The gradual though irregular decline in residential building activity from the peak level
reached in the spring of this year was continued in
September, according to data on building permits
issued (for privately financed construction) and
contracts awarded (for public building).
The 57,000 privately financed family dwelling
units covered by permits issued in September were
the smallest number for any month since February
and fell 26 percent short of the peak of 77,000
units reached in March.
During the first nine months of this year, building permits were issued or contracts awarded for
more than 619,000 new family units, of which
53
537,000 units, or 87 percent, were to be financed
by private funds. Private construction to date
this year is running about 8 percent above the
level reached during the first nine months of 1941.
[TABLES 1 and
New mortgage loans distributed by purpose
[Dollar amounts are shown in thousands]
Purpose
September 1946
Construction
H o m e purchase
Refinancing
Reconditioning
O t h e r purposes
$55,354
198,842
21, 546
8,027
26,022
309, 791
Percent
change
September 1945
$59,377
211,804
22,032
8,481
22, 765
-6.8
-6.1
-2.2
-5.4
+14.3
$16,375
113,103
16,786
3,980
12,189
+238.0
+75.8
+28.4
+101.7
+113. 5
324,459
-4.5
162,433
+90.7
August
1946
Percent
change
2.]
Home building cosfs moved
up 1.4 percent
Residential building costs continued their climb
during September, bringing the combined NHA
index to 151.9 from 149.8 in August, an increase
of 1.4 percent. Material prices again showed the
higher rise of the two constituents. The material
cost index rose to 148.3, exceeding the August
level of 146.1 by 1.5 percent. Wage rates advanced 1.3 percent during September. The index
of labor costs now stands at 159.3, compared with
157.2 for August. Average monthly increases in
the city indexes reported in the current cycle
ranged from 0.4 percent to 3.1 percent.
Construction costs for the standard house
Total
to the high prices being asked for homes. This
conclusion appears to be i n line with the performance of home purchase loans made by savings
and loan associations since spring of this year.
For all such associations there has been a steady
drop in dollar volume, aggregating 18 percent
from May through September. Considering all
insured associations, for which more detailed
information is available, the total dollar reduction
was also 18 percent, but the number of purchase
loans declined much more rapidly—24 percent—
during the four-month interval. [TABLES 6 and 7.1
[Average month of 1935-1939=100]
Sept.
1946
E l e m e n t of cost
Aug.
1946
Percent
change
Sept.
1945
Percent
change
•
Material
Labor
__^
Total
148.3
159.3
146.1
157.2
+1.5
+1.3
134.1
146.0
+10.6
+9.1
151.9
149.8
+1.4
138.0
+10.1
The Department of Labor index of wholesale
building material prices advanced slightly less than
1 percent during September. This index has now
reached 149.4 on a 1935-1939 base. Paint and
paint materials showed the largest increase (2.5
percent) and brick and tile prices were up 1.3 percent. Gains in the other commodity groups were
fractional. [TABLES 3, 4 and 5.]
Savings and loan lending at
lowest level since March
Another reduction in lending activity was noted
for savings and loan associations during September, with loans for the construction and purchase
of homes showing the greatest drop. Although
the total lending volume has been moving slowly
but persistently downward since the all-time peak
was reached in May of this year, the September
total was still almost 91 percent higher than in the
same 1945 month.
A number of spot studies made in recent months
indicate that there is increased buyer resistance
54*
Mortgage recordings
down 7 percent
The total volume of mortgage financing for
instruments of $20,000 or less has been fluctuating
just short of $1 billion per month since May of this
year, with September showing a 7-percent decline
from the peak of $999,000,000 reached in August.
With the exception of insurance companies
which reported a 2-percent rise, all types of
lenders experienced declines in recording volume
from August to September. However, in each
case, gains of over 50 percent were noted in comparison with September 1945. Mutual savings
banks, commercial banks and insurance companies
Mo rtgage recordings by type of mortgagee
[Dollar amounts are shown in thousands]
September
Type of lender
Savings and loan associations
Insurance companies
Banks, trust companies
Mutual savings banks
Individuals
:
Others.
Total
Cumulative
Percent]
1946
change
Percent
1946
amount from (9 months) of total
1945
$290,547
47,424
248,406
51,978
173,310
117,213
+68.4 $2, 588,387
+150. 5
338,896
+171.0 1,946, 672
+181. 5
393, 731
+55.6 1,527,025
902, 546
+129.1
928,878 +100.1
7,697, 257
33.6
4.4
25.3
5.1
19.9
11.7
100.0
Federal Home Loan Bank Review
reported rises of more than 150 percent in this
comparison.
A total of $7,700,000,000 of mortgages of
$20,000 or less were recorded during the first nine
months of this year, 93 percent more than during
the same 1945 interval. Savings and loan associations accounted for slightly more than onethird of this total, while one-fourth of all recordings were by commercial banks and one-fifth
showed individuals as mortgagees. [TABLES 8
and 9.]
Another upsurge in outstanding
FHLB advances
Up to almost $235 million on September 30, the
balance of F H L B advances outstanding was more
than twice that at the end of August 1945 when
fighting had stopped. Within the last 12 months,
outstanding advances have risen from the year's
low of $86.6 million in October 1945 to the September peak. All F H L Banks except San Francisco recorded higher outstanding balances on
September 30 than on August 31. Preliminary
reports indicate that a continuing heavy volume of
new advances during October brought the outstanding balance close to a quarter of a billion
dollars by the end of the month.
As the gap widened between the net flow of
savings into member institutions and the demand
on them for mortgage funds, there was a rise in
new advances made in September by F H L Banks
to their members. The $32,446,000 total advanced
by the 11 Banks represented an increase of $6,807,000 from August and a seven-fold gain over the
September 1945 volume. The August-to-September increment in seven Districts was more than
enough to offset the smaller advances reported by
the Boston, Topeka, Winston-Salem and San
Francisco Banks.
Repayments to all the Banks aggregated $12,142,000 during September, reaching the lowest
point in 10 months. They were more than a
million dollars below August and somewhat over
$5 million less than those reported in September
1945. Although the decline in this item was concentrated in five Bank Districts, it counterbalanced
the gains experienced by the other six F H L Banks.
[TABLE
12.]
Assets of insured associations
passed $7 billion
Combined assets of associations insured by the
Federal Savings and Loan Insurance Corporation
continued to expand at a substantial rate during
the third quarter of this year, and in September
passed the $7-billion mark. Currently these
institutions hold 72 percent of the aggregate
resources of all savings and loan associations.
On the asset side of the combined balance sheet
for insured associations, the rapid rise in first
mortgage holdings has been the most outstanding
development this year. Compared with an increase of $1,011,000,000 during the preceding/ow
years, mortgage holdings have risen $1,160,000,000
since the beginning of this year; on September 30
they aggregated $4,922,000,000.
This sharp rise in mortgage holdings has been
accompanied by a decline in liquid resources.
Dwelling Units-Thousands
TOTAL LOANS BY ALL
SAVINGS 8 LOAN ASSNS.
By type of Association
November 1946
55
From the peak of $2,147,000,000 in cash and
United States Government bonds, reached at the
end of 1945, liquid assets of these insured institutions had by the end of the third quarter declined
to $1,857,000,000. However, the drop in liquidity
ratio was relatively greater, from 35 to 26 percent.
This 9-point drop is reflected in a comparable
increase in the ratio of mortgage loans to total
assets which rose from 61 to 70 percent during
the January-September period.
Although the private repurchasable capital
accounts of insured associations registered a
record gain during the first nine months of this
year (up $700,000,000 to $5,923,000,000), monthly
additions during the third quarter dropped off
significantly. From $72,000,000 in July, the net
inflow of savings funds dropped to $67,000,000 in
August and in September declined still further to
$51,000,000. The September net was the smallest
amount for any one month in more than two years.
During the third quarter the net inflow of new
share capital into insured associations was only
half as great as the increase in their mortgage
portfolios. [TABLE 13.]
Gain in share capital
lowest in 2 years
The net influx of share capital into savings and
loan associations dropped again in September, for
the third successive month. This substantiates
earlier indications of the general slow-down in the
rate of savings.
The $60,000,000 of savings funds added to the
accounts of associations during September, after
allowance for withdrawals, is the smallest growth
in private capital for any month since July 1944.
The $170,000,000 of shares repurchased were the
equivalent of 74 percent of new savings during
September, compared with a 69-percent ratio in
the preceding month, and a 52-percent withdrawal
ratio in the same month of 1945.
Cumulatively, there has been a net addition of
$818,000,000 to the private share accounts of
savings and loan associations during the first nine
months of 1946, a growth 7 percent greater than
in the corresponding 1945 period. However, this
spread has narrowed rapidly due to the reactions
of the past two months. By way of contrast, the
net share capital gain in January through June of
this year was 16 percent in excess of that for the
same interval of 1945. [TABLE 14.]
56
Foreclosure rate lowest
on record
Nonfarm real estate foreclosures during the first
nine months of this year totaled 8,600, or an
average of less than 1,000 per month, for the
United States as a whole. The foreclosure rate for
the third quarter was lower than in any* other
three months on record. The average rate during
this interval was less than 900 cases per month, a
nominal figure in comparison with the depression
rates of 1,000 per day reached during the peak
months of 1933.
Federal
[TABLE 15.]
Credit
Union
Operations
•
F E D E R A L credit unions closed their 1945
books with a volume of members' shares more
than twice as large as in the last prewar year,
according to the last annual report issued by the
Federal Deposit Insurance Corporation, the supervisory agency of these institutions. Steady
expansion in this respect has been characteristic
of these' organizations since their establishment
in 1935, and at the end of last year share accounts
totaled almost $141 million. This represented a
gain of 5 percent over 1944.
Total assets have also shown continuous growth,
rising from $1.5 million in 1935 to $153 million at
the end of last year. The increase during the
past 12 months amounted to 4 percent and
brought the total gain since Pearl Harbor to more
than 40 percent.
However, general wartime dislocations have
reversed the previous upward trends in the number of such organizations, their total membership
and the amount of money out on loan. Last
year 3,700 credit unions operating under Federal
charter were serving 1,200,000 people—the smallest number since 1940. Although the $35 million
balance of loans outstanding was the lowest since
1938, it represented the first increase in four
years—up 2 percent from 1944.
Thus it will be seen that these thrift and lending organizations have reacted to wartime conditions in much the same way as did other financial institutions. I n connection with this summary of Federal credit unions, it should be pointed
out that since these groups represent slightly less
than half of all operating credit unions, these data
cannot be interpreted as being necessarily representative of the entire movement. However, it
Federal Home Loan Bank Review
is probably true of all these organizations, as the
F D I C report points out, that as reconversion progresses, more people become permanently established and the supply of consumer goods increases,
opportunities and incentives for credit union
activity will again begin to expand.
A declining volume of interest income from
loans was more than offset by income received
from other sources—chiefly Government bonds
which, at the end of 1945, totaled $77 million and
represented half of all assets. Federal savings
and loan shares held by Federal credit unions,
however, declined in 1945 and accounted for
only 12 percent of total resources.
These divergent trends among earning assets
resulted in an increase of $331,000 in total income.
Expenses declined during the year, leaving a net
profit of over $2,500,000 which was $350,000
greater than the 1944 profit.
The dividends distributed in January 1946
totaled $2,100,000—an increase over the previous
Amendment to Rules
and Regulations
FSLIC
Bulletin N o . 34
Amendment to the Rules and Regulations for Insurance of
Accounts providing for hearings before the Commissioner,
Trial Examiner or Hearing Officer in Washington, D. C. or
elsewhere.
(Adopted October 9, 1946; became effective
upon its filing with The Federal Register on October
12, 1946.)
Section 301.20 of the Rules and Regulations for
Insurance of Accounts has been amended by the
substitution of a new paragraph (a) setting forth
the procedure which is to be followed in the case of
all hearings that are held in connection with the
insurance of any state chartered savings and loan
association.
This paragraph, as currently effective, reads as
follows:
"Hearings before the Commissioner, Trial Examiner or Hearing Officer.
Any person interested in the insurance of any State-chartered institution
including cases where it is proposed to segregate the assets of such institution or readjust its capital, in anticipation of insurance or to terminate
or otherwise affect the insurance of an insured institution may appear
in person or by attorney and submit any evidence pertinent to the questions at issue affecting such insurance, segregation of assets, or readjustment of capital, before the Commissioner of the Federal Home Loan
Bank Administration or a Trial Examiner or Hearing Officer appointed
by the said Commissioner or by the General Counsel of the Federal
Savings and Loan Insurance Corporation at such place as shall be specified in the Order setting the hearing. The Corporation will take such
action as may appear to be appropriate."
November 1946
year. More than half of the groups paid dividends
ranging between 1 and 3 percent.
Members, shares, and loans outstanding
in reporting Federal credit unions as
of December 3 1 , 1935-1945
[Dollar amounts are shown in thousands]
No. of
reporting
credit
unions i
Year
1935
1936
1937
1938
1939
1940
1941
1942
1943
1944
1945
'_..
762
1,725
2,296
2, 753
3, 172
3,739
4, 144
4,070
3,859
3,795
3,757
Number of
members
Amount of Amount of
loans
shares
118,665
307, 651
482, 441
631, 436
849, 806
1, 216, 222
1, 396, 696
1, 347, 519
1, 302, 363
1, 303, 801
1,216,625
$2, 225
8,573
17, 741
26, 869
43, 314
65, 780
98, 817
109, 499
116,989
133, 586
140, 614
$1, 830
7,399
15, 772
23, 825
37, 664
55, 801
69, 249
42, 887
35, 228
34, 403
35, 155
i In 1945 the number of operating and reporting credit unions was the same
Prior to that, the number which submitted financial and statistical reports
was less than the number in operation at the end of the year.
k DIRECTORY
^ J F CHANGES
September 1946
Key to changes
*Admission to Membership in Bank System.
"""Termination of Membership in Bank System.
01nsurance Certificate Granted.
001nsurance Certificate Canceled.
BOSTON DISTRICT
MASSACHUSETTS:
Beverly:
*Beverly Co-operative Bank, 246 Cabot St.
NEW YORK DISTRICT
N E W YORK:
Kingston:
0Savings and Loan Association of Kingston, 267 Wall St.
PITTSBURGH DISTRICT
PENNSYLVANIA:
Bethlehem:
**Equitable Building and Loan Association, 26 East 3d St.
•Industrial Savings and Loan Association of Bethlehem, 26 East 3d St.
**South Bethlehem Building and Loan Association, 26 East 3d St.
SAN FRANCISCO DISTRICT
CALIFORNIA:
Bakersfield:
00Kern County Mutual Building and Loan Association, 803 Baker St.
Los Angeles:
*0Atlantic Savings and Loan Association, 729 South Atlantic Blvd.
WASHINGTON:
Yakima:
*0Home Federal Savings and Loan Association of Yakima, 214 West
Yakima Ave.
57
Table 1 . — B U I L D I N G A C T I V I T Y — E s t i m a t e d number of new family dwelling units provided
in all urban areas in September 1946, by Federal Home Loan Bank District and by state
[Source: U. S. Department of Labor]
T o t a l u r b a n residential
construction
Federal H o m e L o a n B a n k
District a n d state
1- a n d 2-family dwellings
Sept.
1946 P
U N I T E D STATES
Boston
__
Connecticut
Maine _
M a s s a c h u s e t t s . - .__
New Hampshire.
R h o d e I s l a n d __
Vermont..._
-
__
Aug.
1946 r
Sept.
1945
39,007
55,081
14,655
1,336
1,739
490
228
65
701
65
258
19
112
969
64
350
15
229 1
4,150
8,604 1
1,507
2,643
1,587 1
__ __ _
P u b l i c residential
construction
P r i v a t e residential construction
80
51
303
9
47
3- a n d more-family dwellings
Aug.
1946 r
Sept.
1945
31,361
34,864
13,412
1,336
1,471
464
229
112
806
64
245
15
80
25
303
9
47
Sept.
1946 P
228 1
65
701
65
258
19
Sept.
1946 P
Aug.
1946 '
3,659
^___
Sept.
1946 P
Sept.
1945
3,796
, 1, 207
71
26
3,987
Aug.
1946 '
16,421
26
66
97
166
5
1,597 1
.
1
254
4,357
64
190
637
3,720
2,840
2,650
786
7,017
270
770
1,214
1,626
870
1,780
208
580
1,017
80
1,517
1,487
1,717
577
1,227
1,241
552
260
79
25
397
39
1,267
411
1
473
103
452
235
32
47 |
2l
_
44
1,209
234
20
247
130
.
4,885
6,646
2,006
4,401
4,812
1,845 1
463
273 1
161 1
683
150
1,499
571
465
697
166 !
654
1,071
214
1,715
836
466
916
139
1,289
441
36
661
230
69
222
66
281
675
147
1,312
567
382
649
148
524
768
113
1,391
676
457
685
139
583
429
36
598
214
69
218
66
215
4
12 1
2,819
3,341
1,197
2,295
2,652
1,126
246
1,652
921
192
2,117
1,032
59
830
308
246
1,486
563
192
1,8(50
660
55
771
300 |
Indianapolis
2,397
4,664 !
983
2,379
2,858
918 1
1.683
2,981
317
666
781
1,598
1,122
1,736
314
Michigan.
789
1,608
1,956
2.940
1,125
1,822
2,262
959
1,377
579
2,016
924
780
345
1,325
497
1.534
728
650
309
2,182
4,646
840
1,973
2,699
1,195
2,156
802
222
271
119
432
177
71
41
491
767
480
87
148
629
1,186
576
154
154
7,447
6,839
2,399
4,720
206
762
898
366
5,215
466
693
657
286
4,737
107
162
222
74
1,834
2,321
4,017
_ ._
785
693
426
417
_
_.___.
__
_ _
'_
_
N e w Jersey _ __ _
N e w York
Pittsburgh
Delaware .
Pennsylvania
W e s t Virginia
_ _
Winston-Salem.
A l a b a m a __
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
_.
__
Chicago... _
Illinois
_
Wisconsin
_
__ _
-
Des Moines..
_ _
.
Iowa__ .
Minnesota...
Missouri..
...
North Dakota _ _
South Dakota
_ __ _ _
L i t t l e R o c k . _.
._ _
Arkansas
Louisiana
Mississippi...
N e w Mexico
Texas
.
. . . . __
Topeka
Colorado
Kansas
Nebraska
Oklahoma
__
S a n Francisco.—
Arizona
California
Idaho
Montana
Nevada
Oregon
Utah
Washington
Wyoming
„
.
._.
_ ...
19
988
234 J
1,310
293 1
1 1
99 1
25 1
8
3
4 1
101
86
187
4
18
299
238 1
160
63
* 16
83
48
9
10
4
130
63
66
186
217
35
1,561
22l
is
643
338
472
36
104
368
36
338
4
166
20 1
23
8
213
4
9
65~
1,797
9
3
62
561
1,236
134~
135
166
543
52
82
59
76
130
36
423
120
822
184
213
18
119
427
164
71
41
12
24
60
5
13
88
10
184
4
15
4,866
2,355
277
124
44
206
428
325
217
.3,544
343
497
238
248
3,540
107
162
222
74
1,790
241
99
44
298
573
149
1,430
123
196
394
38
1,098
547
1,471
1,733
492
41
53
55
809
2,231
1.352
980
271
1,414
200
93
62
192
397
392
265
417
510
468
245
510
145
93
62
192
17
4
20
45
55
371
297
141 1
8.027
9,928
3.451
6,894
7,620
3,093
786
1,025
135
6,089
196
116
62
408
331
662
28
462
6,810
194
159
69
613
411
1,170
40
96 i
2,535
108
38 i
45
164
118
312
35 1
93
5,128
181
86
62
350
307
662
25
106
5,497
170
159
69
420
345
814
• 40
92
2.237
104
38
45
160
117
285
15
12
712
15
10
10
900
10
24
57
22
36
503
791540
87
261
P Preliminary.
58
44
974
209 |
36
197
1,040
N e w Y o r k __
Sept.
1945
18~|
8
604 1
10
36
25
25
1,734
25
566
960
42
64
102
2,450
1,849
8
1
3
r
797
512
26
896
358
347
1,283
4 I
298
4
30
249
346
413
24
4
1
27
20
48
20
1
136
44
320
Revised.
Federal Home Loan Bank Review
Table 2 . — B U I L D I N G ACTIVITY—Estimated number and valuation of new family dwelling units
[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 p r o v i d e d
Permit valuation
P r i v a t e construction
Period
Total
construction
Total
1-family
2-family
Private construction
3-and
morefamily
Public
construction
Total
construction
Total
1-family
2-family
82, 882 $2,026,122 $1, 750,843 $1,566,214
3- a n d
morefamily
Public
construction
Nonfarm
579, 593
496, 711
426, 851
22,820
47,040
$55, 551
$129,078
$275,279
67,046
53, 795
47, 988
2,738
3,069
13, 251
237, 394
191,900
177,348
6,850
7,702
45,494
155,200
138, 882
122, 551
6,465
9,866
16, 318
511, 606
467, 621
416, 357
20, 626
30, 638
43, 985
21,800
29,800
31,400
29,100
21,800
29, 775
31,400
29,100
19, 665
26,696
28, 229
25,116
888
929
1,146
1,426
1,247
2,150
2,025
2,558
25
80,094
124, 532
129,195
127,065
80,094
124, 294
129,195
127,065
72, 280
111,861
117,642
112,467
3,306
3,779
4,379
4,912
4,508
8,654
7,174
9,686
619, 400
536, 806
408, 808
20, 629
35, 369
82, 594
2, 584,153
2, 339, 494 2,123,020
85,078
131,396
244,659
43,900
48, 500
83,600
81,000
74,300
68,000
76, 700
82,100
61, 300
39,093
43,379
76,949
70, 461
68, 826
58,371
60, 635
62,090
57,002
34, 764
38, 726
68,408
64,165
60, 617
52, 781
54, 511
55, 931
50, 905
1,395
1,889
2,783
2,671
3,417
2,226
2,027
2,063
2,158
2,934
2,764
5,758
3,625
4,792
3,364
4,097
4,096
3,939
4,807
5,121
6,651
10, 539
5,474
9,629
16, 065
20,010
4,298
182,916
205, 706
367,766
335, 517
307, 235
286, 502
305, 935
335,074
257, 502
162,304
185,048
352,956
310, 847
296,138
255, 786
256, 822
272, 501
247,092
147,800
169, 036
316,924
286,437
265,321
231,938
235, 336
246, 251
223, 977
5,222
6,969
12,098
10, 991
13,754
9,531
8,217
9,014
9,282
9,282
9,043
23,934
13,419
17,063
14,317
13, 269
17, 236
13, 833
20,612
20,658
14,810
24, 670
11,097
30, 716
49,113
62, 573
10,410
358,730
298, 321
237, 873
18, 285
42,163
60, 409
1, 320, 298
1,117, 869
951,737
47,018
119,114
202,429
40,389
30, 801
26,011
2,218
2,572
9,588
150, 947
117, 537
105, 016
5,834
6,687
33,410
1945: J a n u a r y - S e p t e m b e r . . .
101, 631
91,543
75,998
6,081
9,464
10,088
374,450
347,122
297,839
19,768
29, 515
27, 328
September
October. _ _
November . . .
December
14,619
19, 496
20, 417
19, 256
14,619
19.496
20,417
19, 256
12, 567
16, 582
17,421
15,494
845
857
1,069
1,241
1,207
2,057
1,927
2,521
60,133
91,114
93,953
95,040
60,133
91,114
93, 953
95, 040
52, 537
79,194
82,944
80,639
3,197
3,551
4,134
4,275
4,399
8,369
6,875
10,126
409, 391
340,236
287,144
19,659
33,433
69,155
1,861,802
1,660, 256 1,453,135
81,967
125,154
201, 546
30, 725
33, 479
56,002
53,860
48, 216
43,833
49, 222
55, 081
39,007
25, 918
28, 503
50, 066
44,996
43, 583
36, 660
36, 830
38, 660
35,020
21,786
24,072
41, 785
39,000
35,824
31,372
31, 071
32, 921
29, 313
1,309
1,792
2,683
2,571
3,267
2,144
1,902
1,943
2,048
2,823
2,639
5,598
3,425
4,492
3,144
3,857
3,796
3,659
4,807
4,976
5,936
8,864
4,633
7,173
12,358
16,421
3,987
139, 598
151,478
266,133
240,969
220,656
201, 281
211, 711
247, 818
182,158
4,947
6,659
11, 749
10, 688
13, 304
9,172
7,842
8,654
8,952
8,941
8,659
23,400
12,755
16,109
13,617
12,489
16, 261
12, 923
20,612
19, 592
13, 596
21, 557
9,336
18, 538
34,317
54,347
9,651
1941: J a n u a r y - S e p t e m b e r . _.
September
1945: J a n u a r y - S e p t e m b e r . . .
September.
October
November.
December
1946: J a n u a r y - S e p t e m b e r . . .
January
February
March
April
._
May
June
July r
August'
September P
..
_
_
238
Urban
1941: J a n u a r y - S e p t e m b e r . . .
September
1946: J a n u a r y - S e p t e m b e r . . .
January
February
March
April
May...
June
July.
August'
September P
__
__
. . .
__
118,986
131,886
252, 537
219, 412
211,320
182,743
177, 394
173, 471
172, 507
* Revised.
105,098
116,568
217,388
195,969
181,907
159,954
157, 063
168, 556
150, 632
p Preliminary.
Table 3 . — B U I L D I N G COSTS—Index of wholesale prices of building materials
[Source: U. S. Department of Labor. 1935-1939=100; converted from 1926 base]
All b u i l d i n g
materials
Period
Brick and
tile
Cement
Lumber
Paint and
paint materials
Plumbing
and heating
Structural
steel
Other
1944: S e p t e m b e r
129.5
111.7
106.3
171.5
129.7
121.4
103.5
111.7
1945: S e p t e m b e r . . . . . .
October
...
November
December
131.8
132.1
132.5
133.4
123.7
126.8
128.4
128.4
109.3
109.6
109.9
110.3
172.6
172.8
173.2
175.7
132.3
132.3
132.4
132.5
124.8
124.8
124.8
124.8
103.5
103.5
103.5
103.5
113.0
113.1
114.0
114.5
134.0
135.0
139. 5
141.3
142.7
145.1
147. 5
148.2
149.2
128.7
128. 7
129.2
132.0
132.6
133.5
134.8
138.7
140.5
111.0
111.4
112.3
112.4
112.6
112.6
114.1
116.1
116.9
176.5
178.3
186.6
190.9
192.1
196.0
197.4
197.8
198.4
132.5
132.5
132.5
132.8
133.0
133.5
141.3
140.0
143.5
124.8
124.9
124.9
132.4
132.4
139.3
139.3
139.7
140.8.
103.5
109.7
115.9
115.9
115.9
115.9
115.9
115.9
115.9
115.3
115.9
121.4
122.0
125.1
128.0
129.7
130.7
131.3
+0.8
+13.4
+1.3
+13.6
+0.7
+7.0
+0.3
+14.9
+2.5
+8.5
0.0
+12. 0
+0.5
+16.2
1946: J a n u a r y
February
March
April
May
June
_.
July
August. . .
September
_
. . . __
__
_
-.
Percent change:
S e p t e m b e r 1946-August 1946
S e p t e m b e r 1946-September 1945
November 1946
. _
+0.8
+12.8
59
Table 4 . — B U I L D I N G COSTS—Index of building costs for the standard house
[Source: National Housing Agency. Average month of 1935-1939=100]
1946
1945
E l e m e n t of cost
September
Material.
Labor.
Total
.
_ _
.
.
...
May
June
July
August
March
April
February
January
December
November
October
September
148.3
159.3
146.1
157.2
143.7
155.6
141. 6
153.8
139.2
152.5
138.0
150.6
137.1
148.9
136.3
148.5
135.5
147.9
135.2
147.5
135.0
147.3
134.6
146.3
134.1
146.0
151.9
149.8
147.7
145.7
143.6
142.1
141.0
140.3
139.7
139.3
139.1
138.5
138.0
Table 5 . — B U I L D I N G COSTS—Index of building costs in representative cities
[Source: N a t i o n a l H o u s i n g A g e n c y .
Average m o n t h of 1935-1939=100]
1946
1945
1944
1943
1942
1941
1940
Oct.
Oct.
Oct.
Oct.
Oct.
Oct.
F e d e r a l H o m e L o a n B a n k D i s t r i c t a n d city
Oct.
N e w York:
C a m d e n , N e w Jersey
N e w a r k , N e w Jersey
Albany, New York.
Buffalo, N e w Y o r k
._ -
175.4
166.0
161.1
151.6
-
148.2
171.1
146.5
162.7
142.7
160.7
141.7
156.3
141.6
153.4
137.3
152.1
126.0
142.1
122.6
125.6
113.0
119.2
101.4
105.1
140. 4
164.9
137.8
148.7
124.9
161.8
134.4
143. 8
122.7
148.8
129.5
135. 9
121.5
150.3
128.1
133.8
121.4
149.5
128.1
133.1
120.9
124.4
125.7
130.8
116. 0
119.0
122.4
126.5
116.7
120.7
118.8
124.7
111.3
119.4
108.8
114. 7
104.8
102.9
100.8
105.0
128.9
173.0
151.4
143.8
150.7
168.8
141.5
147.5
124.8
169.3
147.0
141.2
143.0
159.7
138.2
142.9
122.9
161.4
141.1
138.9
133.9
151.5
132.0
137.9
121.9
153.7
138.4
138.9
130.8
142.5
130.5
135.7
121.9
153.7
136. 5
138.9
133. 5
142.4
130.4
135.3
122.0
151.3
135.8
139.1
132.9
143.6
129.7
138.9
112.5
141.6
111.8
129.9
127.2
119.9
132.0
122.3
132.5
126.0
119.9
127.0
120.1
122.1
109.1
109.2
114.3
118.3
117.2
111.0
116. 6
119.7
101.2
100.8
103.1
108.3
108.6
101.4
103.8
103. 4
- -.
_ __
_- __
___
__
Des Moines:
D e s M o i n e s , I o w a _ __
St. L o u i s , M i s s o u r i
Fargo, North D a k o t a
__
Sioux Falls, S o u t h D a k o t a . . .
___ _
San Francisco:
P h o e n i x , Arizona .
...
Los Angeles, California
S a n Francisco, California
Boise, I d a h o
Reno, N e v a d a .
_.
Portland, Oregon.
._
Salt L a k e C i t v , U t a h .
Seattle, W a s h i n g t o n . .
. ...
.
Jan.
158.6
171.4
159.7
149.6
-
Indianapolis:
Indianapolis, Indiana . _
Detroit, Michigan
1
Apr.
July
_.
..
._ __
_ .___. .
._.
. . . ...
-
157.4
149.2
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
For complete explanation of these data, see Statistical Supplement to April 1946 REVIEW.
Table 6 . — M O R T G A G E LENDING—Estimated volume of new home mortgage loans by al
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
1944
January-September
.
September
_
1945
January-SeDtember
September
October
November
December
_ _ _ .. .
...
_
_
_.
_.
. . .
_.
._
Reconditioning
L o a n s for
all o t h e r
purposes
Total
loans
Construction
H o m e purchase
Refinancing
$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
101,884
14,459
3,160
8,993
134,455
63,489
59,162
11, 804
180, 550
1, 357, 555
196,011
40,736
137,826
1,912,678
911,671
836,874
164,133
109,162
957,089
140,001
27,434
96, 744
1, 330,430
628,227
584, 360
117,843
16,375
23,985
24,481
22,922
113,103
135, 224
135, 685
129, 557
16, 786
18, 751
19,411
17,848
3,980
4,857
4,487
3,958
12,189
13, 562
14,095
13,425
162, 433
196, 379
198,159
187, 710
77, 321
95,815
96, 709
90,920
70,642
84,819
85, 804
81,891
14,470
15, 745
15 646
14,899
453,191
1,827,481
202,118
58,428
191,898
2, 733,116
1,390,283
1,148, 272
194, 561
30,807
30,866
45,391
53,202
62,189
56,297
59, 708
59, 377
55, 354
145, 342
154,219
202, 995
235,877
243,458
218, 575
216, 369
211, 804
198, 842
21, 372
19,801
24, 244
24,882
24,451
22,402
21, 388
22,032
21,546
3,803
4,217
6,198
6,796
6,954
6,625
7,327
8,481
8,027
15, 518
16,416
21,335
22,242
24,246
22,098
21,256
22, 765
26,022
216,842
225, 519
300,163
342,999
361, 298
325,997
326,048
324,459
309, 791
109,146
111,927
155, 960
174,468
186, 282
107, 552
165,031
165,812
154,105
92,103
97, 305
123,945
143,114
150,161
136,296
136,966
134,624
133, 758
15, 593
16,287
20, 258
25,417
24,855
22,149
24,051
24,023
21,928
Federals
State
members
Nonmembers
1946
January-September
January
February
March _
April
May
June
July
August
September
.
. .
. . .
._
60
...
__.
_____
.__
___
_..._
...
:.
Federal Home Loan Bank Review
Table 7.—LENDING—Estimated volume of
new loans by savings and loan associations
Table 8.—RECORDINGS—Estimated nonfarm mortgage recordings, $20,000 and under
SEPTEMBER
[Dollar amounts are shown in thousands]
1946
[Thousands of dollars]
Cumulative new
(9 m o n t h s )
N e w loan 5
F e d e r a l H o m e Loan
Bank
District
a n d class of
association
September
19*6
?_l $309,791
UNITED STATES
SepAugust tember
1946
1945
State member
Nonmember
Percent
change
77. 321 1, 390, 283
70,642 1,148, 272
14,470
194,561
UNITED
628, 227 + 1 2 1 . 3
584, 3601 + 9 6 . 5
117,843 + 6 5 . 1
19,400
22, 276
11,149
178, 446
89,919 + 9 8 . 5
8,578
9,174
1,648
9, 589
9,976
2,711
5,514
4,375
1,260
79, 090
82,036
17,320
37,951 + 1 0 8 . 4
40,973 +100. 2
10,995 + 5 7 . 5
33,144
33, 341
16,899
281, 392
130,968 + 1 1 4 . 9
. 14,184
14,164
4,796
14,494
14,478
4,369
5,813
8,406
2,680
120,443
122, 429
38. 520
46. 001 + 1 6 1 . 8
63,172 + 9 3 . 8
21, 795 + 7 6 . 7
New York..
State member
Nonmember
1945
Federal
Home
Loan B a n k District a n d state
$324.459 $162,433 $2, 733,116 $1,330,430 + 1 0 5 . 4
154,105 165,812
133,758 134,624
21,928 24,023
State member
1946
loans
Connecticut-*..
Maine.._
Massachusetts.
N . HampshireRhode Island. .
Vermont
New York
N e w Jersey
New York
- 21,368
22,644
13, 621
204, 269
110, 630 + 8 4 . 6
Federal
State member
Nonmember
10, 516
7,269
3,583
10,827
7,328
4,489
6,550
4,521
2,550
103, 959
64, 582
35, 728
52, 523 + 9 7 . 9
37,988 + 7 0 . 0
20,119 + 7 7 . 6
W inston- Salem
45, 646
49,975
20, 798
392,676
165,311 +137. 5
26.971
15,426
3,249
30,490
16,170
3,315
11,139
7,992
1,667
225,905
139,519
27, 252
87,782 +157. 3
67, 303 +107. 3
10, 226 +166. 5
49,968
51,087
26, 322
433,064
220, 536 + 9 6 . 4
22, 210
25, 228
2,530
23, 463
25, 438
2,186
10, 826
13, 712
1,784
197,133
215, 702
20, 229
94, 215 +109. 2
110,885 + 9 4 . 5
15,436 + 3 1 . 1
Federal
State member
Nonmember
Federal.. - State m e m b e r . . .
Nonmember
Federal
_. ._ .
State member
Nonmember
Chicago
Federal..
State m e m b e r
Nonmember
..
Des Moines .
Federal
State m e m b e r
Nonmember
L i t t l e Rock
Federal
_ ._.
State member
Nonmember
Topeka
Federal
State m e m b e r
Nonmember
__.
S a n Francisco
Federal.. .
State member
Nonmember
November 1946
17, 965
18, 892
8, 976
163, 210
73,648 + 1 2 1 . 6
10,876
6,602
487
11, 341
7,112
439
5,012
3,585
379
95, 715
63. 523
3,972
39.718 + 1 4 1 . 0
30,644 +107. 3
3,286 + 2 0 . 9
31, 535
34, 293
18, 504
282, 624
Individuals
Other
mortgagees
Total
$290,547 $47,424 $248,406 $51,978 $173,310 $117,213 $928,878
23,457
1,080
9,379 22,005
11,207
6,740
73,868
3,469
822
16, 787
598
1,531
250
633
30
388
3,617 4,160
476 1,170
3,b38 14,350
274
991
1,234
800
140
534
2,817
614
6,339
562
565
310
1,749
116
4,253
79
500
43
16,445
3,228
45,755
2,504
4,659
1,277
24, 587
2,786
22,424 24,740
23,053
9,612 107,202
5,163
19,424
940
1,846
6,846 1,142
15, 578 23, 598
5,693
17,360
4,013
5,599
23,797
83,405
29
2,694
22,144
955
9,318
6,583
62,349
386
18,424
1,845
143
1,973
578
251
19,139
2,754
148
807
394
7,518
1,406
119
5,979
485
1,441
53,840
7,068
Winston-Salem._
28,064
7,444
11,606
765
23,591
8,500
79,970
1,535
3,876
6,125
2,712
7,452
2,296
540
3,528
1,058
660
2,965
221
431 '
836
283
990
1,286
1,024
1,771
1,954
2,089
782
733
1,967
1,340
2,744
9,028
1,632
2,036
1,697
892
4,222
1,194
603
2,890
1,253
483
806
444
827
6,413
8,907
22,779
7,772
13, 256
6,417
2,892
11, 534
56,864
4,221
27,123
4,901
50,353
1, 610
701
2,254
1, 266
2,208
22, 286
2,629
18,921
4,626
11,443
7,478
1,835
2,791
Alabama
— T > i s t . of Col
Florida
Georgia
-Maryland
-N.Carolina
S. Carolina
•Virginia
Kentucky
Ohio
Tennessee
Indianapolis.. ..
Indiana.-.
Michigan
765
1,282
10,760
1,282
690
8,673
1,395
302
4,787
5,824
8,802
89,637
12,724
24, 554
29
6,548
6,488
61,166
7,930
16, 624
29
2,024
4,524
1,626
4,862
24, 887
36, 279
10,913 111, 163
34,069
1,910
15, 341
60
11, 596
15, 206
78,182
-.
_..
26, 705
7,364
1,293
617
9,751
5,590
60
7,125
4,471
13,826
1,380
58,700
19,482
151,153 + 8 7 . 0
Des Moines.._ . .
18, 630
3,992
15,855
645
9,063
10, 357
58, 542
Iowa..
M i n n e s o t a . _. .
Missouri
..
N . Dakota
S.Dakota
4,284
7,850
5,504
765
227
476
1,098
2,262
79
77
4,618
3,689
6,969
290
289
1,403
2,471
4,692
267
230
733
3,549
6,026
38
11
11,514
19, 302
25,453
1,439
834
14, 592
6,223
5,502
11,859
10, 789
48,965
1,182
4,931
912
346
7,221
537
755
436
28
4,467
935
473
746
221
3,127
834
2,787
730
444
7,064
134
1,341
446
13
8,855
3,622
10, 287
3,270
1,052
30, 734
14, 293
1,789
7,144
9,216
5,534
37,976
2,249
5,264
1,453
5,327
295
376
427
691
1,542
3,035
614
1,953
4,494
1,183
768
2,771
1,500
1,130
184
2,720
10,080
10,988
3,446
13,462
36,415 10,659
87,334
207
9,023
61
85
51
445
266
510
11
1,363
73, 650
488
932
333
2,088
1,423
6,561
496
14. 289
15,691
1,555
15,843
16. 744
1,706
8,093
9,116
1,295
130, 399
139,139
13, 086
64, 316 +102.7
75,481 + 8 4 . 3
11, 356 + 1 5 . 2
18, 250
19,017
10, 296
166,393
80,163 +107.6
10,193
5,721
2,336
10, 267
5,758
2.992
5,346
3,560
1,390
92, 609
53, 531
20, 253
41,197 +124.8
28, 379 + 8 8 . 6
10, 587 + 9 1 . 3
15,911
17. 471
7,730
144, 272
63,033 + 1 2 8 . 9
7,681
8,077
153
7,711
9,597
163
3.741
3,880
109
68,182
74, 698
1,392
31,117 + 1 1 9 . 1
31, 066 +140. 4
850 + 6 3 . 8
13,476
14,495
7,948
133,892
67,088 + 9 9 . 6
8,185
3,901
1,390
8,532
4,460
1,503
4,572 |
2,176
1,200
78,073
41,138
14, 681
36,625 + 1 1 3 . 2
19, 271 +113. 5
11,192 + 3 1 . 2
43,128
40, 968
20,190
352, 878
177, 981 + 9 8 . 3
10, 715 !
9,319 |
. 156
198,775
151,975
2,128
96, 782 +105. 4
79,198 + 9 1 . 9
2,001 + 6 . 3
20,422 23, 255
22, 505 1 17,563
150
201
Mutual
savings
banks
20,655
Cincinnati
C incinnati
Insur- Banks
and
ance
trust
comcompanies
panies
Delaware
Pennsylvania..
W . Virginia
Pittsburgh
\
Pittsburgh
STATES..
Boston
Savings
and
loan associations
Chicago
* Illinois
Wisconsin
L i t t l e Rock
Arkansas
Louisiana
Mississippi
New Mexico...
Texas
.. .
-Topeka
Colorado.
K a n s a s _ _. _
Nebraska
Oklahoma
S a n Francisco _._
A r i z o n a - . . __ .
California
Idaho
Montana.
Nevada
Oregon
Utah .
Washington
Wyoming
1,068
23, 499
1,192
817
244
2,552
815
5,784
444
645
1,497
105
1,392
47,099
26,491 209,495
2,670
37,100
559
596
652
2,799
432
1,987
304
194
5,502
18, 879 162,151
2,426
126
2, 455
25
1,327
47
9,625
1,636
3,319
383
5,182 21,416
1,274
19
61
Table 9 — M O R T G A G E RECORDINGS—Estimated volume of nonfarm mortgages recorded
[Dollar amounts are shown in thousands]
Savings and loan
associations
Banks and trust
companies
Insurance
companies
Mutual savings
banks
Individuals
Other mortagees
All mortgagees
Period
Total
Percent
$2,009,707
1945
January-September
September
October
November
December
...
Total
Percent
Total
Percent
Total
Percent
4.4 $1,091,021
19.4
35.3
37.2
37.2
36.6
36.9
177,030
18,935
22, 229
23,061
22,112
4.4
4.1
4.0
4.1
4.2
755, 368
91,661
110,429
114, 636
110,588
19.0
19.7
19.9
20.5
21.0
144, 697
18,472
23,711
23.310
25, 264
4.0
4.3
4.1
4.8
33.6
34.8
35.2
36.2
35.6
34.6
33.6
32.1
31.1
31.3
338,896
26, 936
26,099
31,083
33.974
38,862
39,890
48,101
46,527
47,424
4.4 1,946. 672
4.2
139,126
4.2
140,890
4.1
180, 656
3.8
213,878
4.0
241,330
4.3
245, 624
4.9
263, 669
4.7
273,093
5.1
248,406
25.3
21.9
22.8
23.6
24.1
25.0
26.8
26.9
27.3
26.7
393,731
24,401
24,973
33,914
44,855
51,851
50,123
58,020
53,616
51, 978
4.0
4.4
5.1
5.4
5.5
5.9
5.4
5.6
35.7
$244,432
$216,982
Total
Percent
$1,402,103
Total
Total
Percent
24.9
$658, 945
11.7
25.7
24.0
23.7
23.4
22.2
477, 293
51,154
60, 928
63,087
57,637
12.0
11.0
10.9
11.3
10.9
19.9
23.9
22.7
21.3
20.3
19.4
18.4
18.1
18.4
18.7
902,
71,
68,
79,
98.
Ill,
104,
118,
131,
117,
11.7
11.3
11.1
10.4
11.1
11.6
11.4
12.1
13.1
12.6
Percent
$5,623,190
100.0
100.0
100.0
100.0
100.0
100.0
1946
January-September
January
February
March
April
May
June
July..,.
August
September
2, 588, 387
220,420
217, 621
277,408
315,471
333,192
308,226
314, 779
310, 723
290, 547
Table 1 0 . — G l L E N D I N G — H o m e loans *
1, 527,025
151,601
140,477
162.986
180.318
187,311
168,889
178,128
184,005
173, 310
7, 697, 257
634,117
618, 763
765,973
887, 266
964,438
917.414
981,187
999,221
928,878
100.0
100.0
100.0
100. 0
100.0
100.0
100.0
100.0
100.0'
100.0
Table 1 1 . — F H A — H o m e mortgages insured
[Dollar amounts are shown in thousands]
[Premium paying; thousands of dollars]
T o t a l loans reported closed a n d
disbursed 2
•
Cumulative through
,
Title I I
Number
A m o u n t of
guaranty
a n d insurance
Principal
a m o u n t of
loan
$543, 883
575, 664
610, 007
635,047
$1,169, 751
1,246,274
1, 316. 534
1, 369,210
303, 353
737,342
1, 584,444
330, 267
810,885
1, 739,397
356, 804
886, 216
1, 906, 743
344, 561
357, 510
371,142
380,977
233,354
245. 231
257,471
266, 741
420,960
446, 780
473, 784
T i t l e V I (603)
Period
< Records of Veterans Administration.
2 Totals do not include 69,895 loans acted upon and approved for loan
closing. Their dollar volume, $407,771,000, brought the aggregate principal
of GI home loans to $2,314,515,000 on October 25.
New
1945: S e p t e m b e r
October
November
December
...
_ ...
._
.
1946: J a n u a r y
February
March
AnriL_
!
A u g u s t 16
A u g u s t 23
A u g u s t 30
September 6.
S e p t e m b e r 13
SeDtember 20
September 27.
October 4
_
October 11 __
O c t o b e r 18
October 25
N u m b e r of
applications a n d
reports
August
September
_._
Existing
New
Existing
$968
1,228
1,777
1,965
$15,165
18, 606
18,887
18,051
$12, 286
. 14, 645
10, 261
10,836
$347
608.
518547
3,095
3,728
3,760
3,570
4,406
5,573
6,374
5,668
5,279
24, 275
20,006
24,346
24,160
26, 389
31, 551
26,956
'20, 831
20,713
9,617
6,267
5,122
6,870
5,988
3,678
4,020
2,959
2,084
1, 67&
1,241
1,152
983
3,712
1,012
572
960
613
1 Figures represent gross insurance written during the period and do not
take account of principal repayments on previously insured loans.
Table 1 2 . — F H L BANKS—Lending operations and principal assets and liabilities
[Thousands of dollars]
Lending operations,
S e p t e m b e r 1946
P r i n c i p a l assets, S e p t . 30,1946
C a p i t a l a n d p r i n c i p a l liabilities,
S e p t . 30, 1946
Federal H o m e Loan B a n k
Advances
Boston
New York
Pittsburgh
Winston-Salem
Cincinnati
Indianapolis
Chicago
Des Moines
Little Rock
Topeka
S a n Francisco
_
_
. _.
S e p t e m b e r 1946 ( C o m b i n e d t o t a l )
A u g u s t 1946
S e p t e m b e r 1945
__
_
_
Repayments
Cashi
Government
securities
Capital2
Debentures
$1,365
5,314
3,445
4,925
3,004
2,582
3,917
2,463
2,047
1,654
1,730
$1,030
735
769
1,070
1,075
572
2,426
777
447
449
2,792
$16, Q64
19,295
25, 531
28, 595
23, 382
16,395
39, 291
18,424
12,626
11,116
24,043
$2,426
4,380
1,865
1, 365
2,498
3,011
3,369
463
703
1,860
10, 632
$7, 482
24,199
7,446
4,120
23,640
12, 738
9,773
8,447
7,620
8,042
16,602
$21,096
29,678
18,687
20, 497
29,320
16,029
25, 720
15, 345
13,317
11,555
27,644
$2,000
32,446
12,142
234,762
32, 572
130,109
228,888
25,639
13,208
214,458
4,519
17, 200
99, 769
1 Includes interbank deposits.
62
Advances
outstanding
2
Member
deposits
Total
assets
S e p t . 30,
1946 l
14,000
9,500
5,000
8,000
22, 500
11,000
7,500
6,000
16,500
$921
18,310
1,189
139
13,368
6,614
4,190
989
165
1,480
7,165
$26,028
47,994
34,939
34,164
49,727
32,190
52,482
27,378
21,007
21,049
51,379
102,000
54,530
398,337
385,497
302,157
23,045
146, 274
227,484
102,000
52,149
20,671
180,808
216, 319
32,000
51,163
Capital stock, surplus, and undivided profits.
Fee/era/ Home Loan Bank Review
Table 1 3 — I N S U R E D A S S O C I A T I O N S — P r o g r e s s of institutions insured by the FSLIC
[Dollar amounts are shown in thousands]
Number
of associations
P e r i o d a n d class
of association
Total
assets
Operations
Federal
Home
Loan
New pri- Private
New
B a n k ad- m o r t g a g e v a t e inrepurvances
vestloans
chases
ments
P r i v a t e reGovernm e n t b o n d purchasable
holdings
capital
Government
share
capital
$4,981,869
5,055,073
5,109,101
5, 219,910
$23,367
23,367
23, 366
23,366
$92,618
79,497
88, 304
185,210
$122,098
150,000
151,335
144, 664
$146,290
163,628
147,022
180, 352
$77,855
91,668
92,650
71, 777
53.2
56.0
63.0
39.8
5, 299,668
5, 361,314
5, 432,080
5, 507, 923
5, 589,795
5,724,893
5, 798, 380
5,869, 338
5,122,507
20,165
19,374
19, 373
19, 373
19,358
19,358
16,832
16, 306
16, 306
163,559
154,835
144,111
145, 744
159,546
189,908
187,401
196,495
216, 573
169,107
174,954
238, 268
268,706
285, 613
257,175
254,858
255, 273
240, 708
283,487
182,679
198,176
198,896
196,973
219,825
296,710
207,782
185, 754
205, 537
122.099
129, 573
123, 265
116, 370
86,017
224,686
140,849
135,144
72.5
66. 8
65.4
62.0
59.1
39.1
75.7
67.8
72.7
3,182,465
3.231,187 #
3, 271,317
3, 348, 567
18,058
18,058
18,058
18,058
71, 252
58,694
62,153
137,839
77, 321
95,815
96, 709
90,920
96,180
108,252
97, 373
120,195
51,428
59,925
59,023
44,352
* 53.5
55.4
60.6
36.9
3, 395,108
3, 435,482
3,481,382
3, 532,406
3, 586, 501
3, 677, 643
3,716,445
3, 758,827
3, 7 0, 634
15, 250
14, 540
14.539
14,539
14, 539
14,539
12, 380
11,956
11,156
124, 242
118,501
109,213
106. 599
115,009
137, 605
134,376
142,018
153,096
109,146
111,927
155,960
174,468
186, 282
167, 552
165,031
165, 812
154,105
190,748
122,452
132,145
132,092
130,551
144,470
194,872
136,777
121,872
144, 388
82,173
86,471
81, 241
78,013
55,038
156, 734
95, 328
90,296
1,799,404
1, 823,886
1,837, 784
1,871,343
5,309
5,309
5,308
5,308
21, 366
20,803
26,151
47,371
44,777
54,185
54,626
53,744
50,110
55,376
49,649
60,157
26,427
31, 743
33, 627
27,425
52.7
57.3
67 7
45.6
1,904, 560
1,925,832
1,950,698
1,975, 517
2,003, 294
2,047, 250 I
2,081, 935
2,110,511
2,131, 873 .
4,915
4,834
4,834 .
4,834
4,819
4,819
4, 452
4,350
4,350
39, 317
36, 334
34,898
39,145
44, 537
52, 303
53,025
54,477
63,477
59, 961
63,027
82, 308
94, 238
99,331
89, 623
89,827
89,461
86, 603
92,739
60, 227
66,031
66,804
66,422
75,355
101,838
71,005
63, 882
61,149
39,926
43,102
42,024
38, 357
30,979
67,952
45, 521
44, 818 f
65.9
66 3
653
62.9
57.7
41.1
66.7
64.1
70.2
N e t first
mortgages
held
Cash
$3, 572,964
$303,195
$1,607,844
3, 763,128
307, 712
1,839,008
4,051, 583
279, 543
1, 792,418
4, 519, 248
347,362
1,641,628
4, 922, 400
289, €03
1, 566,979
"2, 255, 283
178,411
1,067,837
2, 382,101
194,678
1, 213,609
2, 571, 919
169,884
1,175, 285
2,886,641
221,431
1,067,943
3,151,813
180, 457
1, 004, 260
1,317,681
124, 784
540,007
1, 381,027
113,034
625, 399
1,479,664
109,659
617,133
1, 632, 607
125,931
573,685
1, 770, 587
109,446
562, 719
Repurchase
ratio
ALL INSURED
2,476
2,476
2,474
2,475
$5,725,962
5, 797, 238
5,878,098
6,148, 230
2,477
2,481
2,485
2,486
2,488
2,490
2,493
2,495
2,497
6, 204,954
6, 274,832
6. 359, 998
6,462, 376
6,592,552
6,* 743,121
6,810, 626
6,916,472
7,012,24)
December
1,467
1,466
1,466
1,467
3,632,197
3,676,401
3, 732, 490
3,923, 501
February.
_.
March
April
May.
June.. _ _
Julv
August...
S e p t e m b e r . . . _.
1,467
1,468
1,469
1,469
1,471
1,472
i;473
1,473
1,474
3,955,391
3,999,837
4,050,719
4,118,076
4, 204,057
4, 311,747
4,344,421
4,411,389
4, 469, 937
1,009
1,010
1,008
1,008
$2,093, 765
2,120,837
2,145,608
2, 224, 729
1,010
1,013
1,016
1,017
1,017
1,018
1,020
1,022
1, 023
2, 249, 563
2, 274,995
2, 309, 279
2, 344, 300
2, 388, 495
2,431, 374
2,466, 205
2, 505, 083
2, 542, 312
1945: S e p t e m b e r
February
March..
June
July
September.
FEDERAL
1945: S e p t e m b e r
•
75.7
67.1
65.4
61.5
59.8
38 1
80.4
69.7
74.1
STATE
1945: S e p t e m b e r
November. December
.
1946: J a n u a r y .
March
May
June
July ..
September
Table 14-—SAVINGS—Savings and loan share investments and repurchases, September 1946
[Dollar amounts are shown in thousands]
All associations
Period
September.. .
October
November
December
__.
1946: J a n u a r y - S e p t e m b e r
January
February
March
April
May.. _
June
July
August...
September
._
November 1946
Repurchase
ratio
New
investments
Repurchases
Net
inflow
$1,726,850
$963, 281
$763, 569
194,823
202, 777
184, 046
223, 885
100,506
119,821
118. 881
94, 970
94,317
82, 956
65,165
128, 915
51.6
59.1
64.6
42.4
2,405, 490 1, 587,430
244,619
150, 656
158, 627
155,455
147,675
112,144
271, 568
176,823
169,863
,
1945: J a n u a r y - S e p t e m b e r
I n s u r e d associations
334,961
220,469
243, 363
248,077
246, 713
269, 694
356, 936
255, 254
230,023
New
investments
New
investments
Repurchases
Net
inflow
54.1
$340,883
$213,657
$127,226
62.7
53.2
56.0
63.0
39.8
48, 533
39,149
37,024
43, 533
22,651
28,153
26, 231
23,193
25,882
10, 996
10, 793
20, 340
46 7
71.9
70.8
53 3
686, 772
65.1
435, 208
303,920
131, 288
69.8
77,950
60, 580
68,603
75,631
80,603
133,808
72,024
66,933
50, 640
72.5
66.8
65.4
62.0
59.1
39.1
75.7
67.8
72.7
51,474
37, 790
45,187
49,181
49, 740
49,869
60, 226
47, 472
44, 269
39,082
28, 557
29,054
32,190
31,305
26,127
46,882
35,974
34, 749
12, 392
9,233
16,133
16,991
18,435
23,742
13,344
11,498
9,520
75.9
75 6
64.3
65 5
62 9
52.4
77.8
75.8
78 5
Repurchases
Net
inflow
$749, 624
$636,343
77,855
91, 668
92,650
71, 777
68, 435
71, 960
54,372
108,575
818,060
66.0 .1,970, 282 1, 283, 510
90, 342
69, 813
84, 736
92,622
99,038
157, 550
85, 368
78,431
60,160
73.0
68.3
65.2
62.7
59.9
41.6
76.1
69.3
73.8
55.8 $1,385,967
146, 290
163,628
147,022
180, 352
283,487
182, 679
198,176
198,896
196,973
219,825
296, 710
207, 782
185,754
205, 537
122,099
129, 573
123, 265
116,370
86,017
224,686
140, 849
135,114
U n i n s u r e d associations
Repurchase
ratio
•
Repurchase
ratio
63
\\\
Protect Your Future
That extra step toward
financial
security—the
BUY YOUR
purchase of extra savings
EXTRA bonds—is the keynote of
SAVINGS the U. S. Treasury's curBONDS rent campaign to boost
bond sales. Launched on
N O W Armistice Day, this push,
SECURITY!
which .is to last through
PROTECT YOUR FUTURE
P e a r l Harbor Day, is
designed to keep the public reminded of the
continuing values of savings bonds. In urging
workers in industry and business, in offices and
at work benches to "Sign up for Security/' the
Savings Bond Division is stressing the necessity
of building up financial reserves through * buying
and keeping these securities. In addition to promoting spot sales, a special effort will be made
during this time to expand payroll savings.
In commenting on this campaign, Secretary of
the Treasury Snyder said: "The Treasury Department has two main objectives in promoting
the sale of savings bonds. The first is to continue
and, if possible, to further the wide distribution in
the ownership of the public debt. The second is
to aid in combating inflation by drawing purchasing power off the market at a time when goods
are scarce—saving it for a time when they will be
abundant."
I t is the hope of the Savings Bond Division to
sell $8 billion in bonds before the end of the year.
Sales through October had passed the $6-billion
Table 1 5. — F O R E C L O S U R E S — Estimated
nonfarm real estate foreclosures, by
Federal Home Loan Bank District
mark. While no quota is being set for the current
promotional effort, as was done during the war
bond drives, most of the $2-billion gap will need to
be closed during this campaign.
Bond sales have never again reached the
$2-billion monthly mark which was achieved in
June 1945 after the fighting ceased in Europe.
By August of last year, which brought the end of
the war, sales had been more than cut in half and
only in four months since then have they exceeded
the total of $700 million sold in that period.
The last Treasury campaign produced a "shotin-the-arm" to bond sales but even then (July of
this year) the total did not exceed that shown in
January which marked the high point for 1946.
This trend is part of a national swing away from
saving discussed in the article on page 49.
Gl Home Rights Protected
•
ON October 14, at the direction of the Housing
Expediter, OPA began a" nationwide compliance and enforcement drive.
The major objectives of the program are: (1) to
safeguard veterans' preference rights; (2) to insure that builders fulfill commitments made in
their priorities applications for homes built under
V E H P ; (3) to enforce maximum sales price regulations; and (4) to see* that required placards are
posted on all V E H P construction.
The compliance operations will be handled
through more than 550 local rent offices and 8
regional OPA offices.
Table 1 6 — S A V I N G S — H e l d by institutions
[Thousands of dollars]
End of period
Pederal Home Loan
Bank District
UNITED STATES...
1946
Sept.
926
48
213
234
146
77
4
51
28
16
51
58
1946
Aug.
864
59^
252
170
105
47
17
39
28
10
79
58
1946
July
Cumulative
(9 months)
Percent
change
1946
1945
820
8,633
11,134
-22.5
71
268
125
87
58
20
39
35
14
48
55
607
2,230
1,765
1,016
644
203
389
346
174
655
604
1,076
2,614
1,967
1,219
1,295
420
492
473
313
767
498
-43.6
-14.7
-10.3
-16.7
-50.3
-51.7
-20.9
-26.8
-44.4
-14.6
+21.3
Insured
savings and
loans i
Mutual
savings2
banks
Insured
commercial
banks 3
$3,922, 705 $12,428, 026 $20, 543,888
1944: June
_ _.
September
_ _ _ 4,092, 609
4, 333, 739 13, 331,811 23, 362,909
December
1945: March
June
September
December
1946: March
June .
September.
_ ._
4, 538, 426
4,786, 912 14, 378, 413
4,981,869
5,219, 910 15, 332, 202
5, 432, 080
5, 724, 893
5,922, 507
16, 224,971
26, 363,106
29, 295,108
39, 643, 805
Postal
savings 4
$2,034,136
2,197, 701
2, 342, 297
2, 513,197
2, 659, 575
2,836,097
2,933,189
3, 043, 000
3,119,656
3, 203,142
1
Private repurchasable capital as reported to the F H L B Administration.
23 Month's Work. All deposits.
FDIC.
Total time deposits of individuals, partnerships and corporations.
4
Balance on deposit to credit of depositors, including unclaimed accounts,
September total is unaudited.
Federal Home Loan Bank Review
Check List of Housing Regulations
(Actions effective as of November 1, 1946)
OFFICE OF HOUSING EXPEDITER
Housing expediter priorities regulations
Number
Latest
issue
date
CIVILIAN PRODUCTION
ADMINISTRATION
Veteran! housing priority regulations
Subject
Number
HEPR-1
10-16-46
HEPR-2
10-16-46
HEPR-3
10-16-46
HEPR-4..
9-13-46
HEPR-5
8-27-46
Amend. 1
9-10-46
Establishes order of priorities for surplus
building materials and equipment (80
types) from WAA stocks.
Establishes order of priorities for materials and equipment for services and
utilities from WAA stocks.
Establishes order of priorities for surplus
building equipment (9 types).
Provides certification for specially needed
surplus materials and equipment.
Authorization and priorities assistance
for housing.
Authorization and priorities assistance
for housing.
Expediter priorities orders
Number
Latest
issue
date
VHP-1
Latest
issue
date
10-7-46
Dir.l
Dir.2
6-21-46
9-6-46
Sapp. 1
8-30-46
Supp. 2
7-2-46
Supp. 3
10-7-46
Sapp. 4
Supp. 5
VHP-2
VHP-3
VHP-4
10-7-46
8-27-46
7-19-46
8-28-46
9-23-46
Subject
Forbids beginning of construction and
repair on buildings and certain other
structures without specific authorization.
Reconstruction in Hawaii.
Instructions on preparing CPA 4423
(non-housing) applications.
Fixtures and mechanical equipment
covered by VHP-1.
Explains provisions relative to beginning
construction.
Classifies structures covered by small
job allowances.
Lists items which are not structures.
Where applications should be filed.
General restrictions on hardwood lumber.
Use restriction on cast iron soil pipe.
Production restriction on cast iron soil
pipe and fittings.
Subject
Priority regulations
EPO-1
EPO-2
EPO-3
EPO-4
8-27-46
8-27-46
.. 10-16-46
9-27-46
Finding and delegation of authority.
Delegation of authority.
«*
u
it
*t
u
u
Expediter premiitim payment resulations
Number
EPPR-1
Amend. 1
Amend. 2
EPPR-2
EPPR-4
EPPR-4
EPPR-fi
Amend. 1
EPPR-6
Amend. 1
EPPR-7
Amend. 1
EPPR-B
Amend. 1
EPPR-9
Amend. 1
EPPR-10
EPPR-11
Latest
issue
date
8-30-46
10-28-46
10-31-46
8-30-46
8-30-46
7-81-46
7-81-46
10-21-46
9-3-46
10-29-46
9-3-46
10-29-46
9-30-46
10-21-46
9-19-46
10-9-46
10-29-46
11-1-46
Subject
Structural clay products.
Softwood plywood.
Merchant gypsum liner.
Standing timber on state-owned lands.
Convectors.
Hardwoodflooring—southernarea.
PR-28
PR-33
9-16-46
6-14-46
Amend. 1
8-6-46
Amend. 2
8-27-46
Sen. A
8-27-46
Sch.B
8-27-46
Dir.o
Dir.8
8-28-46
8-22-46
Dir.ll
8-7-46
Dir.13
8-21-46
Llstl
Dir.42
8-21-46
8-27-46
Hardwoodflooring—northernarea.
Oast iron soil pipe.
Limitation Orders.
L358
10-3-46
Merchant pig iron.
Sand lime brick.
Housing nails.
L359
10-18-46
Priority assistance for critical production.
Provides priority assistance for building
materials under VEHP.
Extends period required (after 8-6-46)
for holding and selling houses to veterans.
Applications for housing to be filed under
HEPR-5 after 9-10-46.
Materials for priorities assistance under
PR-28.
How distributors of building materials
handle ratings; outlines ceilings and
set-aside requirements.
Gypsum liner.
Priorities assistance for manufacturers of
prefabricated houses, sections or panels
for Reconversion Housing Program.
FPHA temporary re-use housing projects.
Production and sale of house trailers
under VEHP.
Veterans eligible to buy trailers.
Delegation to NHA for HH ratings under
VEHP established by PR-33.
Specifies percentage of softwood plywood
production and reserve (construction
and door panel grades) for certified
orders.
Specifies percentage of sawmill production to be held for certified orders.
^te^--^^
LOAN
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FEDERAL
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•
BOUNDARIES OF FEDERAL HOME LOAN BANK DlSTRICTS
\
FEDERAL HOME LOAN BANK CITIES
•
BRANCH CITIES
OFFICERS OF FEDERAL HOME L O A N BANKS
BOSTON
INDIANAPOLIS
B. J. ROTHWELL, Chairman; E. H. WEEKS, Vice Chairman; W. H. NEAVES,
H. B . WELLS, Chairman; FERMOR S. CANNON, Vice Chairman and Vict
President; FRED T . GREENE, President-Secretary; G. E . OHMART, Vic©
President-Treasurer; SYLVIA F. BROWN, Assistant Secretary; CAROLINE F ,
WHITE, Assistant Treasurer; HAMMOND, BUSCHMANN <& ROLL, Counsel.
President; H. N . FAULKNER, Vice President and Assistant Treasurer; L. E
DONOVAN, Secretary-Treasurer; BEATRICE E . HOLLAND, Assistant Secretary;
PHILIP A. HENDRICK, Counsel.
NEW
YORK
GEORGE MACDONALD, Chairman; ROY H. BASSETT, Vice Chairman;
NUGENT FALLON, President; ROBERT G. CLARKSON, Senior Vice President;
DENTON C. LYON, Vice President and Secretary; HAROLD B. DIFFENDERFER,
Vice President and Treasurer; JOSEPH F. X. O'SULLIVAN, Assistant Secretary
and Office Attorney.
PITTSBURGH
E. T . TRIGG, Chairman; O. S. TIPPETTS, Vice Chairman; RALPH H. RICHARDS, President; O. R. PARKER, Vice President-Secretary; DALE PARK,
Treasurer; WILLIAM S. BENDER, Counsel.
WINSTON-SALEM
DES
MOINES
ROBERT E . L E E HILL, Chairman; E . J. W E B B , Vice Chairman; R. J. RICH-
ARDSON, President and Secretary; W. H. LOHMAN, Vice President and
Treasurer; A. E . MUELLER, Assistant Treasurer; J. M . MARTIN, Assistant
Secretary; EMMERT, JAMES, NEEDHAM & LINDGREN, Counsel.
H. S. HAWORTH, Chairman; E . C. BALTZ, Vice Chairman; O. K. LAROQUE,
President-Secretary; Jos. W. HOLT, Vice President-Treasurer; SPRUILL
THORNTON, Counsel.
CINCINNATI
HOWARD L. BEVIS, Chairman; W. MEGRUK BROCK, Vice Chairman; W. D ;
SHULTZ, President; W. E . JULIUS, Vice President-Treasurer; J. W. WHITTAKER, Secretary; E . T . BERRY, Assistant Secretary; TAFT, STETTINIUS &
HOLLISTER, Counsel.
CHICAGO
C. E . BROUGHTON, Chairman; H. G. ZANDER, JR., Vice Chairman; A. R.
GARDNER, President; J. P. DOMEIER, Vice President and Treasurer; CONSTANCE M. WRIGHT, Secretary; LAURETTA QUAM, Assistant Treasurer;
GERARD M . UNGARO, Counsel.
LITTLE ROCK
B. H. WOOTEN, Chairman; W. P. GULLEY, Vice Chairman; H. D . WALLACE,
President; J. O. CONWAY, Vice President; W. F . TARVIN, Treasurer.
TOPEKA
W M . M. JARDINE, Chairman; J. E. BARRY, JR., Vice Chairman; [C. A .
STERLING, President and Secretary; R. H. BURTON, Vice President and
Treasurer; JOHN S. D E A N , Counsel.
SAN FRANCISCO
B E N A. PERHAM, Chairman; W M . A. DAVIS, Vice Chairman; F. H. JOHN-
SON, President and Secretary; GUY E . JAQUES, Vice President; IRVING
BOGARDUS, Vice President and Treasurer, Manager of Portland Branch; A.
C. NEWELL, Vice President, Manager of Los?Anj»eles Branch; E. M. JENNESS
Assistant Secretary; E . E . PEARSON, Assistant Secretary; KATHLEEN
MCCLIMENT, Assistant Secretary; T . A. MARCURE, Assistant Treasurer;
L. F. NOLAN, Assistant Treasurer; G. H. MELANDER, Assistant Treasurer;
VERNE DUSENBERY, Counsel.
«. f. QOVIIIMIIT P l l i m i t OPFlCIt l»4C
@FedFRASER