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Vol. 1
J 3 £ L
No. 12
FEDERAL
HOME LOAN BANK
REVIEW
SEPTEMBER
1935
ISSUED BY
FEDERAL HOME LOAN BANK BOARD
WASHINGTON D.C.
Federal Home Loan Bank Review
TABLE OF CONTENTS
Page
Holland's achievement in housing
431
Revision of procedure for share purchase by the Home Owners' Loan Corporation
437
Truth in savings and loan advertising
441
Residential construction activity in the United States
445
Combined statement of condition of the Federal Home Loan Banks
450
Growth and lending operations of the Federal Home Loan Banks
452
Interest rates on advances to member institutions
453
Federal Savings and Loan System
454
Federal Savings and Loan Insurance Corporation
457
Home Owners' Loan Corporation
459
Table of applications received and loan closed, by months
459
Summary of operations of the Reconditioning Division
459
Resolutions of the Board
460
Directory of member, Federal, and insured institutions added during July-August...
462
Suggestions for binding the completed first volume of the FEDERAL HOME LOAN
BANK REVIEW
465
Index of Volume I—FEDERAL HOME LOAN BANK REVIEW
466
SUBSCRIPTION PRICE OF REVIEW
T H E FEDERAL HOME LOAN BANK REVIEW is the Board's medium of communication with member institutions of the Federal Home Loan
Bank System and is the only official organ or periodical publication of the Board. The REVIEW will be sent to all member institutions without
charge. To others the annual subscription price, which covers the cost of paper and printing, is $1. Single copies will be sold at 10 cents. Outside of the United States, Canada, Mexico, and the insular possessions, subscription price is $1.40; single copies, 15 cents. Subscriptions should be
sent to and copies ordered from Superintendent of Documents, Government Printing Office, Washington, D. C.
APPROVED BY THE BUREAU OF THE BUDGET
Federal Home Loan Bank Board
JOHN H. FAHEY, Chairman
WILLIAM F. STEVENSON
T. D . W E R B , Vice Chairman
F. W. CATLETT
H. E . HOAGLAND
OFFICERS OF FEDERAL HOME LOAN BANKS
BOSTON:
B. J. ROTHWELL, Chairman; W. H. NEAVES, President; H. N . FAULKNER, Vice President;
FREDERICK WINANT, J R . , Secretary-Treasurer.
N E W YORK:
GEORGE MACDONALD, Chairman; G. L. BLISS, President; F. G. STICKEL, Jr., Vice President-
General Counsel; ROBERT G. CLARKSON, Vice President-Secretary; DENTON C. LYON, Treasurer.
PITTSBURGH:
E. T. TRIGG, Chairman; R. H. RICHARDS, President; G. R. PARKER, Vice President; H. H. GARBER
Secretary-Treasurer.
WINSTON-SALEM :
IVAN ALLEN, Chairman; 0 . K. LAROQUE, President-Secretary; G. E . WALSTON, Vice President-
Treasurer.
CINCINNATI:
H. S. KISSELL, Chairman; H. F. CELLARIUS, President; W. E . JULIUS, Executive Vice President;
H. J. BRODBECK, Second Vice President; W. B. FURGERSON, Treasurer; T. DWIGHT W E B B , Jr.,
Secretary-Comptroller.
INDIANAPOLIS:
F. S. CANNON, Chairman; F. B. M C K I B B I N , President; JOHN A. R H U E , Vice President; B . F.
BURTLESS, Secretary-Treasurer.
CHICAGO:
H. G. ZANDER, Chairman; A. R. GARDNER, President; E . H. BURGESS, Treasurer; R. D . H U L S F ,
Secretary.
DES
MOINES:
C. B. ROBBINS, Chairman; R. J. RICHARDSON, President-Secretary; W. H. LOHMAN, Vice President-Treasurer; J. M. MARTIN, Assistant Secretary; A. E. MUELLER, Assistant Treasurer.
LITTLE ROCK:
I. FRIEDLANDER, Chairman; B. H. WOOTEN, President; H. D . WALLACE, Vice President-Treasurer;
J. C. CONWAY, Secretary.
TOPEKA:
C. B . MERRIAM, Chairman; C. A. STERLING, President; W. L. BOWERSOX, Vice President; R. H.
BURTON, Secretary-Treasurer.
PORTLAND:
F. S. MCWILLIAMS, Chairman; C. H. STEWART, President; IRVING BOGARDUS, Vice President-
Treasurer; W. H. CAMPBELL, Secretary; M R S . E . M. SOOYSMITH, Assistant Secretary.
Los ANGELES:
C. H. W A D E , Chairman; M. M. HURFORD, President; F. C. NOON, Secretary-Treasurer.
Holland's Achievement In Housing
F
ACED at the end of the World W a r
with a severe housing shortage, exorbitant building costs, high interest rates, and
a demoralized building industry, Holland
solved the crisis by the use of governmental
subsidies. Making both grants and lowcost loans, the Government not only stimulated the heaviest volume of private and
public residential building in her history,
but also brought down prices and interest
rates, and relieved unemployment.
In the 16-year period, 1919-1934, Holland built 714,000 new dwelling units, a
number equal to more than half of the
total of 1,380,000 units that existed in the
country in 1919. This remarkable achievement in volume of new building was accompanied by clearance of a majority of
the country's slums, removal of unsanitary
conditions, replanning of towns to provide
parks and other amenities, and protection
of old and new housing by adequate zoning. As a result the Dutch people are now
said to be as well housed as any in the
world. The housing problems which Holland has done so much to solve were not
dissimilar to the present problems of the
United States, though, of course, on a much
smaller scale. The steps Holland took to
meet them may, therefore, well contain
suggestions of use to this country in the
present emergency.
Holland faced the post-war crisis with
the double advantage of a long-established
national housing policy and of an informed
public opinion. The public recognized
both that so complex a social and economic
good as adequate housing could not be provided without governmental control and
that it was the State's responsibility to see
that adequate housing was provided for all
Federal Home Loan Bank
Review
classes. It was further universally recognized that to discharge this responsibility
the State must give financial aid to clear
slums and to house the lower-income
groups adequately. Thus the public looked
to the Government for leadership and aid
in improving housing conditions, not only
during the emergency but as a matter of
permanent policy.
This public and official attitude toward
housing had been implemented by law and
by mechanisms capable of translating it
into action long before the World War.
The basis of the Dutch housing policy is the
Housing Law of 1901. This law gives the
State power to control housing and to provide Government funds for housing where
necessary. At the same time it delegates
the principal responsibility for carrying out
housing measures to the local authorities.
This localization of control seems to have
been a well-defined policy of the Dutch law
makers, and was no doubt inspired by the
fact that local authorities are those most
vitally concerned and best able to see the
needs of their particular community.
H O U S I N G L A W OF 1 9 0 1
T H E principal provisions of the 1901 law
fall into two categories: social and economic. The social provisions established
minimum standards of light, cubic air
space, and sanitation for all habitations.
All towns of over 10,000 population and
any fast-growing smaller ones are required
to make detailed extension plans involve
ing surveys of population densities and
provisions for parks, zoning, and building
restrictions. In these extension plans, municipalities are required to list all possible
improvements, to mark slums for removal,
431
to define commercial and industrial centers, and to make provisions for their expansion. In order to put such plans into
execution the municipalities are given
power to condemn, evict, close, and demolish unsanitary dwellings. They may
also expropriate dwellings and change
their utilization to fit the town plan.
The economic provisions of the law concern primarily housing for the low-income
groups. To understand them we must devote a moment to the public utility building societies through which homes are provided at low cost to the lower-income
groups with the aid of Government funds.
These societies are nonprofit-making cooperatives whose members occupy the
houses provided. They are directly under
municipal control, and in most towns and
cities are subject to municipal audits at
stated periods. In the event of liquidation
all the assets and liabilities are turned over
to the municipality. Further, the members
of these cooperative societies are not allowed to own their own homes. All the
houses built are owned by the society until
the long-term Government loan is liquidated, at which time ownership is transferred to the municipality. Thus, as loans
are usually for long periods (50 to 75
years) and bear a low rate of interest, the
actual function of these societies is to provide houses at low rents to members. The
members are secured in the possession of
their houses so long as they pay their rents.
As a protection for both the municipality
and the national Government all properties that receive Government loans must
be insured. The burden of such insurance
is slight as rates are often as low as .375
florins per thousand florins of value.
In the last 30 years, an estimated 700,000,000 florins has been advanced to the
societies for the construction of about
200,000 houses. The number of these public utility building societies has fluctuated
as the need for them has increased or di-
432
minished—in 1923 there were about 1,350
active societies where today there are about
800.
To return now to the economic provisions of the Housing law of 1901. The
Act provides that State aid may take the
form of loans or subsidies. The Government may make loans to the municipalities,
which may in turn lend to the public utility
building societies, up to 100 percent of the
building costs. These loans are repayable
in equal annual instalments. Under the
original law the loans ran for 50 years and
were to pay a rate of interest equivalent to
the effective interest paid on Government
securities.
The burden of responsibility for repaying to the State both interest and principal
on these loans rests with the municipality
or local authority. For this it receives an
annual management fee of 0.1 percent. As
a protection to themselves, the municipalities usually require the building societies to
contribute from 2 to 5 percent of the building cost. If there is at any time insufficient
building by the public utility societies to
supply the houses needed the municipalities must build themselves. If for any reason the municipalities fail to carry out a
successful building program the Crown
may order the provincial government to
run the local housing program.
So much for State loans to aid low-cost
housing. To provide housing for those
members of the population unable to pay
an economic rent (interest plus amortization of loan), the Housing Law of 1901 also
authorized the Government to grant subsidies. Originally, half of the subsidy was
to be paid by the State and half by the local
government and the total amount of the
subsidy was to be sufficient to cover the
deficit between a rent equal to one sixth or
one seventh of the tenant's income and the
annual interest and amortization charges
on the mortgage.
No loans were made nor subsidies
granted under the Housing Law until 1905.
Federal Home Loan Bank
Review
Between 1905 and 1914, approximately
9,900 houses were erected with loans or
grants under this law. During the same
period, 12,918 houses were condemned and
demolished under the law of 1901. The
World W a r with its train of difficulties led
to a great expansion of activity under the
1901 law and the supplementing to this law
to give the Government even greater
powers.
POST-WAR HOUSING LEGISLATION AND ACTIVITY
T H E Dutch Government's W a r and postw a r activities to meet the housing crisis
may be considered under 4 heads: (1) the
provision of temporary buildings to meet
the emergency; (2) rent restrictions; (3)
more liberal extension of loans and subsidies under the Housing Law of 1901; and
(4) loans and subsidies to encourage private initiative in the production of middleclass dwellings.
The provision of temporary buildings
was of minor importance. Rent restrictions, however, played an important part in
compelling the Government to subsidize
the construction of homes by private builders. As the cost of a workingman's dwelling rose from approximately 1,800 florins
in 1914 to 5,500 florins in 1920, it was inevitable that rents should tend to become
prohibitive for a large part of the population. Accordingly, the Government had no
choice but to impose restrictions. They
remained in effect for the 10 years between
1917 and 1927 when the fall in prices eliminated the need for them altogether.
EMERGENCY EXTENSION OF SUBSIDIES AND
LOANS FOR WORKING-CLASS HOUSING UNDER
THE 1901 ACT
the W a r caused a virtual stoppage
of private building, it was natural that the
Government should as a first step make
more liberal use of the powers granted it
by the Housing Act of 1901 to increase
building by public utility societies. Beginning in 1917, the Government raised its
WHEN
Federal Home Loan Bank
Review
portion of the subsidies granted for working-class housing from 50 percent to 75
percent, leaving the municipality to provide the remaining 25 percent.
The
amount of the subsidy remained at the difference between the tenant's capacity to
pay and an economic rent.
This form of subsidy, however, soon revealed a serious weakness in that it provided for no control of building costs and
consequently rendered the Government
liable to a heavy burden. To remedy this
weakness a measure was passed in 1920
requiring that the rent paid by the tenant
must cover the interest on a sum varying
from 50 percent to 70 percent of the building cost, depending upon the size of the
house. Only then would the State undertake to subsidize 75 percent of the balance.
At the same time, the size of such subsidized dwellings was limited first to 300
and later to 225 cubic meters. In 1921 and
1922 the portion of the rent to be covered
by subsidies was reduced progressively to
10 percent and discontinued altogether in
January 1924.
During the W a r and early post-War
period the State also greatly increased its
volume of loans to municipalities for lowcost housing. Thus its loans rose in 1921
to nearly 200,000,000 florins as compared
with an annual average of 5,000,000 florins
before the War. To protect the public
utility building societies against rising interest rates, the Government in 1916 fixed a
maximum rate of 3% percent on loans to
these societies. After 1921 the volume of
loans dropped rapidly until they reached
the pre-War average in 1926.
GOVERNMENTAL AID TO ENCOURAGE PRIVATE
ENTERPRISE
building costs coupled with rent restrictions imposed in the later years of the
W a r also put a curb on private building for
the middle-income group of the population.
To meet the need of this group for houses
the Government sought a means to stimuHIGH
433
late building by private enterprise. Between 1918 and 1923 a series of measures
were enacted for the granting of subsidies
and loans to private builders. The Act of
1918 provided for the payment of a lumpsum subsidy to cover the difference between the actual cost of a house and a sum
representing at first 150 percent and later
200 percent of the pre-War building cost.
Seventy-five percent of the subsidy was
paid by the State and 25 percent by the
local authorities who were responsible for
distributing the grants.
This plan proved very expensive, the subsidies ranging from 2,000 to 3,000 florins
per dwelling. Accordingly, the system was
slightly modified in 1920. In that year the
State undertook to pay the entire subsidy.
These subsidies were calculated according
to the superficial area of the dwelling at
20 florins per square meter and a maximum subsidy of 2,000 florins per house was
fixed. In the course of 1921 and 1922 this
maximum was progressively reduced to
1,700, 1,200, 900, 600, and 300 florins. The
size of the dwellings entitled to benefit by
the subsidies was also gradually reduced
from 450 cubic meters in 1920 to 225 cubic
meters in 1922. At the end of 1923, the
grants were abolished altogether.
TABLE
In 1920 an amendment to the Act of 1918
authorized the State to make first-mortgage
loans to private builders in addition to the
subsidies. The loans were guaranteed by
local authorities. They were issued for 15
years up to 100 percent of the site value
and 90 percent of the building cost, after
the amount of the lump-sum subsidy had
been deducted. The rate of interest was
fixed at 6 percent with an additional 1 percentum per annum to be paid to the municipalities as an insurance against depreciation. However, this system of loans was
short lived as the rapid recovery of the
money market rendered it superfluous.
The results of the Act of 1918 and of the
amendments thereto to encourage private
initiative are shown in table 1. During
the 5-year period the Government granted
subsidies totaling 105,529,098 florins and
mortgage loans totaling 76,963,595 florins.
With this aid, 95,072 dwellings were built.
It should be noted that this aid, which was
in principle intended to encourage private
enterprise alone, was also used to some
extent by public utility building societies
and local authorities to build dwellings of
a rather better type than they were empowered to build under the Act of 1901.
1.—Subsidies and loans made by the State under Emergency Decrees of 1918, 1919, and 1920 to
encourage private enterprise, and number of dwelling units built with such aid.
[Source: "Housing in Holland" by Ir. H. Van Der Kaa, Chief Inspector of State Housing]
Year
1919
1920
1921
1922
1923
'
Total
Subsidies 1
(florins)
Number of Mortgage loans Number of
dwelling units
(florins)
dwelling units
1, 554, 710
14,730, 065
55,476, 975
23,162, 948
10, 604, 400
105, 529, 098
2
593
3,904
25, 281
29, 946
35, 348
67, 872, 865
9, 090, 730
14, 232
4,209
95, 072
76, 963, 595
18, 441
1
These State Subsidies represented 75 percent of the total subsidy, the local government supplying an additional
25 percent.
2
Of this total number approximately 26,000 were built by the public utility societies and local authorities.
434
Federal Home Loan Bank
Review
TABLE
2.—Number of dwelling units completed in Holland by years from 1900 through 1934
[Source: "Housing in Holland" by Ir. H. Van Der Kaa, Chief Inspector of State Housing]
Year
1900 through 1904.
1905 through 1914.
1915 through 1918.
1919
1920
1921
1922
1923
1924
1925
1926
1927
1928
1929
1930
1931
1932
1933
1934
building
By State and By municipalj Bysocieties
private
provincial governments under munic- By
builders1
governments
ipal control
630
130
94
107
41
100
69
44
64
98
35
47
58
41
665
2,673
1,968
8,242
5,687
6,808
5,449
3,574
4,059
2,916
2,759
1,191
2,242
2,329
3,358
1,447
685
748
9,279
17, 586
10, 341
13, 417
19, 298
13, 622
9,590
8,736
8,538
4,749
4,801
5,542
5,221
5,050
5,961
3,718
979
4,127
92, 000
200, 056
17, 741
3,191
3,341
14, 743
24, 936
27, 999
34, 295
34, 552
41, 068
42, 617
40, 558
39, 820
44, 024
41, 226
36,129
42, 703
47, 684
[Total number)
total of
Total of new demolished Net
additional
or
no
longer
dwelling
dwelling
units 2
used as
units
dwellings
92, 000
210, 000
38, 000
15, 500
25, 000
40, 358
45, 496
43,132
46, 712
47,190
50, 698
51, 622
49,128
48, 865
52, 588
52, 092
43, 493
46, 967
55, 294
(3)
(33)
(3)
()
(3)
1,895
2,035
2,629
3,616
4,477
6,335
6,932
8,446
7,711
8,057
9,022
6,192
5,341
5,344
(33)
(3)
(3)
()
(3)
38, 463
43,461
40, 503
43, 096
42, 713
44, 363
44, 690
40, 682
41,154
44, 531
43, 070
37, 301
41, 626
49, 950
1
During 1919-1923, approximately 68,000 houses built by private builders received government subsidies. All other
houses
listed in this column were built wholly by unaided private enterprise.
2
This total includes houses made available as dwellings by rebuilding or change of purpose. These additional dwellings 8are not included in preceding columns after the year 1925.
Figures not available.
GOVERNMENT LOANS TO PRIVATE BUILDERS ON
SECOND MORTGAGE
AFTER the combined system of grants and
loans to private builders was abandoned,
the State still continued to give support to
private initiative in the form of loans on
second mortgages. First-mortgage money
to finance private urban building in Holland is supplied principally by home mortgage banks of which there are 50 in the
country. These banks are organized as
limited stock companies and obtain their
funds principally through the sale of bonds
to the public. They make loans up to 60
or 70 percent of the purchase price of
building for periods usually ranging from
5 to 10 years. Of late years their interest
rates have been 5 percent and 51/4: percent.
Although from 1924 on these banks had
plenty of money at reasonable rates for
first mortgages, they were prohibited from
granting second-mortgage loans. To pro-
Federal Home Loan Bank
Review
tect builders from exorbitant rates of interest on second mortgages, the Government began in 1924 to grant such loans
from Treasury funds. These loans were
made up to 20 percent of the building cost
with a limit of 600 florins and originally
carried 6 percent interest. In 1925, the rate
was reduced to 5 percent and in 1927 to
4.75 percent. Although these second-mortgage Treasury loans had been used for the
construction of only 10,991 houses in the
10-year period, 1924-1933, they have served
to keep interest rates at a reasonable level.
GOVERNMENT HOUSING ACTIVITY SINCE 1 9 2 4
1924 the State has limited its financial
aid almost exclusively to slum-clearance
and the building of houses for the lowestincome groups, pursuant to the original
provisions of the Act of 1901. The State
pays only 50 percent of the subsidy and its
contribution is limited to 50 florins annuSINCE
435
ally to cover the deficit between the tenant's
payments and an economic rent.
The local authorities have not, however,
reduced their activity to the same extent
as the State. They continue, on a smaller
scale, to build houses themselves out of
their own funds, to make loans and subsidies to public utility building societies, and
to guarantee private loans.
APPRAISAL OF GOVERNMENT'S POST-WAR
HOUSING PROGRAM
the end of the W a r through 1934, a
total of 714,000 dwelling units was built in
Holland. The total number receiving subsidies or low-cost loans, either from the
central or local governments or both, was
approximately 264,000. This means that
unaided private enterprise built approximately 450,000 dwellings, or two thirds of
the total number (table 2).
Subsidies to both public utility building
societies and private builders were heaviest
from 1919 to 1922. In 1920, private builders produced only 3,341 dwellings. In
1921, this number jumped to 14,743; in
1922, it was 24,936; and steady yearly increases brought the annual average up to
40,000 by 1926. It is thus evident that the
Government's measures not only removed
the housing shortage but that its system of
subsidies effectively stimulated private
initiative.
It is sometimes argued that entrance by
the Government into the building field inevitably raises prices and forces private
initiative out of the field. This does not
seem to have been the result in Holland.
From 1920 to 1923, during the years when
governmentally financed and controlled
dwelling construction was at its height,
building costs fell from 300 percent above
the 1914 level to only 60 percent above this
level.
As to the cost of the subsidies to central
and local governments, it has been impossible to obtain complete figures. The annur 1 grants are payable over periods ranging from 50 to 75 years, so that it would
FROM
436
be difficult at best to measure the full extent of the burden on the taxpayers. In
any event, the policies of making State
subsidies dependent on local government
subsidies and of leaving control with the
local governments seems to have contributed to keep down the cost of subsidies
and to have reduced waste.
Another result of the extensive post-War
building which the Government inspired
has been greatly to stimulate employment
in the building trades. The number of
workers in the building trades reached in
1930 the high total of 21 percent of all industrial workers. At that time the index
of unemployment in the building trades
relative to potential employment averaged
10.1 percent. With the advent of the recent depression, there was an increase in
such unemployment, the figure being 34.5
percent at the beginning of 1934. Building
costs dropped 40 percent between 1930 and
1935, in spite of a sales tax levied since
January 1, 1934. During the same period
the total value of contracts let fell off from
185,067,000 florins to 92,963,000 florins, due
to the drop in wages and building costs
and to cut-throat competition among contractors, while the net total of houses built
remained fairly stable (table 2).
In spite of the continued economic crisis
there was an increase in home building
and a consequent revival of the building
trades during 1934. The return of public
confidence and the large amounts of capital available at low rates of interest resulted in the construction of 49,950 houses
in 1934. This maintenance of building volume seems to have resulted in some overproduction. At the end of 1934 100,000
dwellings, or more than 5 percent of the
total number of units in the country, were
unoccupied as compared with 50,000 vacant dwellings in 1930. At the same time,
rents have fallen—as much as 20 percent
for the more expensive dwellings. Nevertheless, nothing points to any considerable
reduction of building activity in the near
future.
Federal Home Loan Bank
Review
Revision of Procedure for Share Purchase
by Home Owners' Loan Corporation
I
N ORDER to simplify the routine to be
followed by applicants for share purchase by the Home Owners' Loan Corporation, the Board on September 13 adopted
a resolution providing for complete Rules
and Regulations governing the procedure
to be followed. This resolution provides,
in Section 5, details of the method by which
the " approved list of applicants " is established. Any institution which is under the
supervision of the Board as to examination and periodical reports (either by rules
and regulations governing its status, or
from its voluntary request for such supervision) and whose first request for investment has been approved by the Board, is
placed on this approved list, and will remain thereon indefinitely unless for some
cause the Board removes its name. All
other associations whose first request has
been approved are also placed on the list
for a period of 6 months, subject to the
regulations of Section 2-b-(l) and Section
5. The associations on this list are permitted to make applications for investment
by following a greatly simplified procedure.
The Rules and Regulations also provide
(Section 1-c) that Federal savings and loan
associations tender a full-paid share certificate instead of the receipt as heretofore
used in Treasury calls.
To facilitate the handling of all requests
it is important that each applicant institution secure its forms and make its request through the Federal Home Loan
Bank of which it is a member. The regional Bank will make its recommendation on the application and forward it with
Federal Home Loan Bank
16398—35
2
Review
two copies of the application to the Board
in Washington. If, after examination by
the proper divisions, the Board approves
the application, the subscription will be
consummated. Special attention is called
to the necessity of executing all forms in
quadruplicate, 3 copies of which must be
sent to the regional Bank.
The resolution of the Board is as follows:
Whereas Section 4, subsection (n) of Home
Owners' Loan Act of 1933, as amended, authorizes Home Owners' Loan Corporation (hereinafter referred to as the " Corporation ") to purchase full-paid income shares of Federal savings
and loan associations, after the funds made
available to the Secretary of the Treasury for
the purchase of such shares have been exhausted, on the same terms and conditions as
have been heretofore authorized by law for the
purchase of such shares by the Secretary of the
Treasury, provided that the total amount of such
shares in any one association held by the Secretary of the Treasury and the Corporation shall
not exceed the total amount of such shares heretofore authorized to be held by the Secretary of
the Treasury in any one association, and to make
deposits and purchase certificates of deposit, investment certificates and/or shares, in any institution which is (1) a member of a Federal Home
Loan Bank, or (2) whose accounts are insured
under Title IV of the National Housing Act, as
amended, if the institution is eligible for insurance under such title, and
Whereas it is necessary to provide forms and
procedure for the accomplishment of such purpose without discrimination, therefore
Be it resolved by the Federal Home Loan Bank
Board that forms and procedure for applications
for such purchases by the Corporation be prescribed as follows:
1. When notice has been given to all Federal
savings and loan associations that the funds
made available to the Secretary of the Treasury
for the purchase of their shares have been exhausted, any Federal savings and loan associa437
tion may request the Corporation to purchase its
full-paid income shares on the form identified
as Exhibit 1, supported b y :
a. Statement of condition on the form identified as Exhibit 2.
b. Statement of loans (aggregating approximately the amount of the last preceding
purchase b y the Secretary of the Treasury
of the United States or the Corporation)
made since such last request to the Secret a r y of the Treasury or the Corporation (if
any such previous request has been m a d e ) ,
using the form identified as Exhibit 3.
c. Applicant shall tender a duly executed
certificate of full-paid income shares for
the amount of such shares requested to be
purchased, issued in the name of " Home
Owners' Loan C o r p o r a t i o n " . Such tender
shall be made w i t h the understanding that
if the request for purchase is approved and
such purchase is made by the Corporation,
certificates evidencing the interest purchased shall be delivered to the Corporation
and such securities shall become issued and
outstanding securities on the date of such
purchase by the Corporation.
2. Any institution w h i c h is a member of a
Federal Home Loan Bank or whose accounts
are insured under Title IV of the National Housing Act as amended may make application to the
Corporation requesting it to purchase the shares,
certificates of deposit or investment certificates
of the applicant in the form identified as Exhibit
4, and supported as follows:
a. If the applicant is an insured institution,
such application shall be supported b y :
(1). Statement of condition on the form
identified as Exhibit 5.
(2). Statement of loans (aggregating approximately the amount of the last preceding purchase by the Corporation)
made since such last request to the Corporation (if any such previous request
has been m a d e ) , using the form identified
as Exhibit 3.
(3). If the applicant issues only one class
of shares w h i c h participate equally in
dividends and assets with all other shares,
and does not accept deposits, applicant
shall tender fully executed certificates of
share interest for an amount equal to the
amount of shares of such association requested to be purchased, issued in the
name of " Home Owners' Loan Corporat i o n " . If the applicant issues more than
one class of securities (that is, different
classes of shares w h i c h participate unequally in assets or earnings with other
438
classes of shares or certificates of deposit
or investment certificates), the applicant
shall tender fully executed certificates
issued in the name of " Home Owners'
Loan C o r p o r a t i o n " evidencing the type
of share interest or of creditor interest
w h i c h gives to the holder of such security
the most preferred participation in the
assets and earnings of the institution.
Such tender shall be made with the understanding that if the request for purchase
is approved and such purchase is made by
the Corporation, certificates evidencing the
interest purchased shall be delivered to the
Corporation and such securities shall become issued and outstanding securities on
the date of such purchase by the Corporation. The securities tendered shall expressly provide h o w income thereon shall
accrue and be payable in accordance w i t h
the charter and by-laws of the applicant,
b. If the applicant is a member of a Federal
Home Loan Bank but not an insured institution, such application shall be supported b y :
(1). The financial report forms containing
statements regarding the financial policies,
condition, and management, w h i c h applicants for membership in a Federal Home
Loan Bank are at the time of this application required to file in support of such
application for membership, together w i t h
Schedules 17 and 18 (known as supplemental information to Form 1).
(2). Statement of loans on the form identified as Exhibit 3.
(3). Executed forms of securities shall be
tendered in the m a n n e r and upon the conditions set forth in Section 2-a-(3) above.
3. Upon receipt by the Corporation of any such
request, properly authorized, executed, and supported, the applicant will be informed either:
a. That the Corporation rules that such request is approved without further examination, in w h i c h event the applicant will be
required to pay the cost of office analysis of
the application, as computed by the Corporation, or
b. That such request cannot be approved on
the data submitted and that further examination a n d / o r appraisal is necessary to determine whether the Corporation will make
such purchase.
In the latter event, the applicant may e i t h e r :
(1). W i t h d r a w its application, or
(2). Request the Corporation to make such
examination a n d / o r appraisal as in its
judgment may be necessary to determine
whether the financial condition and the
Federal Home Loan Bank
Review
character of the management are such that
the purchase may be safely made by the
Corporation. The examination shall be
made in such manner as may be prescribed
by the Corporation, the cost, as computed
by the Corporation, of any such examination of applicant, including office analysis,
audit, and appraisals made in connection
with such examination, overhead, per
diem and travel expense, shall be paid by
the applicant before any such purchase
will be consummated. If the Corporation
rules that appraisals are necessary in connection with any such examination, such
appraisals will be conducted in accordance
with the procedure governing appraisals
made by the Federal Home Loan Bank
Board in connection with examinations
conducted by said Board. All assets appraised shall be appraised at what may be
reasonably expected to be realized therefrom in the orderly and p r o p e r conduct
of the business of the applicant. The responsibility of the mortgagor and the person or persons who shall have assumed the
mortgage debt, the possibilities and costs
of collection and the value of the security
shall be weighed in making appraisals of
mortgages.
It will be the policy of the Corporation by
such purchases to make such funds available for
the encouragement of local home financing in the
community to be served and for the reasonable
financing of homes in such community. It is
expected that substantially all of such funds will
be employed in the financing of homes and that
applicants for such funds shall have used on a
reasonable basis their own credit to secure funds
for such purpose before applying to the Corporation for investment in its securities.
4. Purchases of shares, certificates of deposit
and investment certificates will be made by the
Corporation only upon the understanding and
agreement that no request will be made by the
Corporation for the repurchase or w i t h d r a w a l of
such shares, certificates of deposit or investment
certificates for a period of five years from the
date of such purchase and that thereafter no institution shall be requested to repurchase or p a y
withdrawal requests in any one year in excess of
10 percent of the total amount invested by the
Corporation in such institution. If the applicant
proposes at any time after the Corporation has
purchased any of its securities to issue securities
having participation in assets or earnings w h i c h
is preferred as to the time or amount of payment
to securities w h i c h the Corporation has pur-
Federal Home Loan Bank
Review
chased, the applicant will give the Corporation
notice in writing of such intention and of the
form of certificates evidencing such securities
and a 30 days' option to surrender the certificates
held by the Corporation in exchange for a like
amount of securities having such preferred participation. If the applicant fails to grant such
option, to give such notice or to issue to the Corporation in exchange for certificates held b y the
Corporation certificates for a like amount representing such preferred participation, the Corporation shall have the right forthwith to request
the repurchase or w i t h d r a w a l of such shares.
5. An approved list of applicants for investment by the Corporation shall be established and
maintained in the following m a n n e r :
a. Simultaneous with the approval by the
Board of the first request for investment by
the Corporation in the securities of an applicant, such institution shall be placed upon
such an approved list w h i c h will be maintained by the General Manager and shall be
made available to the Federal Home Loan
Banks and such divisions of the Board's
activities as the Board shall direct.
b. E a c h institution w h i c h is placed upon
such approved list and w h i c h is u n d e r the
supervision of the Board, as to examination
and periodical reports resulting, either from
rules and regulations governing its present
status, or from its voluntary request for such
supervision, shall remain thereon until such
time as the Board by its action, based upon
information contained in periodic reports
filed by such institution or contained in reports of supervisory field examinations or
from other sources, removes the institution
from such approved list.
c. Each other institution shall remain on
such approved list for a period of six months
from the date w h e n placed thereon, unless
by action of the Board, based upon information received in reports filed by the institution or upon reports of examinations made
by its supervisory authority or from other
sources, it is removed from the list before
the expiration of the six months period; but
any such institution may be reinstated at any
time upon such approved list by action of
the Board after complying with the provisions as set forth in Section 2-b hereof, except that it shall not be necessary for such
institution to support such subsequent application with instruments or documents
w h i c h are exact duplicates of instruments or
documents previously filed with its original
application as provided in said Section.
439
So long as any institution remains upon such
approved list, it may request investment by the
Corporation by filing only Exhibits 1 and 3, or
Exhibits 3 and 4, as the case may be, and duly
executed forms of securities in the manner and
upon the conditions set forth in Section 1-c or
2-a-(3) hereof, whichever is applicable.
440
Be it further resolved, that all resolutions or
portions of resolutions heretofore adopted in conflict herewith are hereby rescinded and revoked.
Nothing herein contained shall be construed as
in any way limiting the freedom of action or
discretion of the Corporation in investing in the
shares of applicant institutions.
Federal Home Loan Bank
Review
Truth In Savings and Loan Advertising
4 CCURACY in financial advertising is
jf\_ essential to hold public confidence.
One of the direct causes of the financial
crisis of 1929-1933 was the misleading character of high-powered salesmanship and
advertising by which a minority of irresponsible financial concerns secured the
stewardship of savings running into hundreds of millions. When the day of reckoning came, the contrast between the facts
and the promises of this small group shook
public confidence in all financial institutions and so prolonged the disaster.
The operation of long-term mutual thrift
institutions has never been prone to the
worst abuses of such " security " salesmanship as were exemplified in the 19209s by
the promotional type of financial institution. Savings and loan shares were never
dangled before small savers as an easy
means of doubling their money overnight.
On the other hand, the experience of the
past 6 years has revealed that misrepresentation was practised by a few associations,
to the injury of numbers of people of small
means. The usual purpose of misrepresentation was to confuse investors with regard
to the merits of savings and loan investment from the triple viewpoint of security,
liquidity, and dividend yield.
The fact that misleading claims were
made by only a small proportion of all
institutions in the field did not protect the
great majority of worthy institutions of the
building and loan type from some loss of
public confidence when the test demonstrated the fallacy of expecting high income and 100 percent liquidity on demand
from any single form of investment. The
inevitable result of the failure of a few associations to keep their promises was to
alarm the public, and thus to make buildFederal Home Loan Bank
Review
ing and loan investment far less liquid and
less profitable from an income standpoint
than would have been the case had its
strength been more clearly understood and
its limitations more definitely set forth in
the past.
Once destroyed, public faith is slow and
difficult to rebuild. As far as the building
and loan business is concerned, much has
already been done to create clearer public
understanding and to expand savings operations through straightforward informative statements of the advantages and limitations of the savings plans which these
institutions offer.
It now seems probable that building and
loan shares in the future will have a somewhat different investment basis than in the
past. The former competitive advantage
of a relatively high yield is giving way to a
greater measure of liquidity and a somewhat lower, but perhaps more stable and
dependable, rate of return. This trend is
the result of such salutary developments
as the preference of investors for safety
rather than exorbitant yield from the use
of their money; insurance of share accounts; the creation of larger reserves, in
the Home Loan Banks and in the thrift institutions themselves; and the lower interest rates now prevailing on home mortgage
loans.
On accompanying pages there are reproduced a number of savings and mortgage loan advertisements which have been
used recently by insured, State-chartered
associations or by Federal savings and loan
associations. They illustrate the way in
which the more progressive institutions are
seeking business. These advertisements
may contain useful suggestions for other
institutions, and thus help to encourage
441
steadily more effective advertising methods. Incidentally, if all member institutions, including savings banks and life
insurance companies, will cooperate by
sending clear proofs or clippings of their
current home mortgage loan advertising
and thrift advertising to the REVIEW, it
will be possible each month to reproduce a
selection of representative advertisements
for the benefit of the home-financing business as a whole.
Clear and exact statements of the fundamental facts about building and loan investment should go far to restore public
confidence. They will attract new savings
from people of large and small means who
clearly recognize that their investment in
long-term thrift institutions does not correspond to a demand deposit in a bank,
but that it should give them an income
yield from 25 percent to 100 percent greater
than could safely be expected if instant
liquidity were their prime consideration.
In this connection, the Federal Savings
and Loan Division has taken various steps
to enlist the far-sighted cooperation of all
Federal savings and loan associations in
sales promotion methods based upon accurate presentation of the facts. The following list of detailed principles was recently sent to every Federal association for
the purpose of assisting them to develop
public confidence in their communities by
avoiding claims or forecasts which cannot
safely be carried out in the normal operation of any well-managed Federal savings
and loan association.
" DONT 5 S " O N ADVERTISING FOR FEDERAL
SAVINGS A N D LOAN ASSOCIATIONS
1. Do not refer to loans made by Federal associations as " Federal loans ". Such loans are not
" Federal loans ", but loans by privately-owned
and privately-managed home financing institutions operating u n d e r Federal charter and supervision.
442
2. Do not call dividends
on share
payments
" interest".
Earnings credited or distributed on
shares of Federal savings and loan associations
are dividends
and should be so designated
wherever reference is made thereto.
3. Do not directly or by implication
advertise
a definite rate of return on share payments.
Any
reference to a definite rate of dividend should
be limited strictly to w h a t has been done in the
past. Such references should be so w o r d e d that
the public may not have cause to interpret them
as a guaranty or assurance of future earnings.
Not " Dividends 3 p e r c e n t " , but " Latest dividend at rate of 3 percent p e r a n n u m " .
4. Do not refer to the shares of Federal associations as being " fully insured ". Such shares
are only insured u p to $5,000.00 for each individual investor.
5. Do not refer to shares as being " insured by
the Federal Government".
They are not. The
Federal Savings and Loan Insurance Corporation is, of course, a Government agency, but the
protection by that agency is in no sense a Government guaranty.
6. Do not advertise the shares of Federal associations as being " as safe as a United States
Government bond ". No other type of security is
as safe as a United States Government bond.
7. Do not use the word " withdrawal"
in connection with advertising or printed matter of any
sort. Stick to the terminology of the c h a r t e r ;
that is, " repurchase ".
8. Do not refer to subscription
to shares by
the Secretary of the Treasury as being a " guaranty of safety ". Treasury subscriptions (except
Preferred shares) are not different from shares
held by private shareholders. The Federal Savings and Loan Insurance Corporation provides
the guaranty of safety—not the Secretary of the
Treasury.
9. Do not say " the Federal Government
will
subscribe $3.00 for each $1.00 paid by private
shareholders ". An association is eligible u n d e r
the statutes to apply for Treasury subscription
up to three times the amount standing to the
credit of other shareholders, but the Board must
first approve. Stick to the facts.
10. Do not say, "Sponsored and supervised by
the United States Government".
Rather use the
term, " Chartered and supervised by the United
States Government".
11. Do not advertise in such a way as to reflect discredit upon any other sound form of
thrift.
Federal Home Loan Bank
Review
ADVERTISEMENTS USED BY STATE-CHARTERED AND FEDERAL ASSOCIATIONS
I-A',
SAFE
EASY
\-It's
*XOFlTABLt.
SAVE WITH
INSURED SAFETY
to
S
Invest 50c to $100 a month in
our thrift shares.
AVE
f r
; °Hom
"for TRAVEL
OLD,
Eaih investment insured up
to $5000 by the Federal Savings and Loan Insurance Cor.
poration, Washington. D. C.
No repurchase fee is charged.
Z£**™*TT«
100,000
HOMB tOAM»
.00
SAVINGS
fo*
MARX & iENSDORF BUILDINC
PLANS
Second at Monro*
(h«
S A V
I
su^^-rS
, tatest,
method
over a « o » v « » « £ J m o n t h l y cash
" V « SHARES
/
There's "^ Old Way and
the New Federal Way
p\E0lAOMT j
sSWHTo Finance Your Home
, piedmont H d «
"J. MITCH**.*-
J
Suppose you place a loan of $5,000 on your home.
There are two ways to handle that debt—an old-fashioned, costly way—a new, economical, sensible way.
"SSL*"
t term straight loan plant
1. You borrow 55,000.
2. Every month you pay 535.80 which"
plied first to interest on unpaid bala
rate of 6% and remainder to retiree j
principal.
Lrs you have paid 56,000 in 3. Each time you reduce the princi'
also reduce the interest.
flus various renewal charges
lissions paid for refinancing 4. In 20 years you pay only 53.592 i
terest at 6% with no additional
• every time it matures.
on account of renewal or re
charges.
wars you still owe 55,000.
5. And after 20 years you owe n<jt
^ 5300 in interest every year
v >t a g ° o d i a t e °\
„ ;t to work, » * *
invested
i•n
first mOftg'B .
•« America,
security m A t n
or
more of these 10
K*nsH City Federal S
up
$5,000 per » n v c
Insurer.
No^stand^
o t
The new long term Federal loan plan:
|;row $5,000.
^
ini »t»^n »*n !'7 ;. JSdividend
„:Aert<!
' d ,tt:,xx\t
iiiUuU
I This new Federal type of long-term, low-cost loan
Vis being offered to home-owners on the better tvpes
lof residences. It is also available for new construction.
We will be glad to consider your application.
none of these
They » " n 0 W P
i n that pet">d.
PHON£
rEDERALJ
l|JAND LOAN f ASSOCIATION
OF A T L A N T A
aitttt
-SSs^-SSsW
g»»tnt« *
Federal Home Loan Bank
Review
443
ADVERTISEMENTS USED BY STATE-CHARTERED AND FEDERAL
LOANS °!U
NEW PLAN
FEDERAL
SAVING^
AND
KLAHOMA CITY FEDERAL SAVINGS & LOAN ASSOCIAO
TION now offers its new Direst Reduction Loan plan. In
addition to being a long-term loan—10Vz to 15 years, with no renewal charges—this loan is made at moderate cost. Monthly
payments range from $9.25 par $1~ftOO on new construction to
$11.50 per $1,000 on older types of construction.
Whether you contemplate buying, building, improving or refinancing a home of your own, we suggest that you consult one of
the officers of this Association. Our facilities will be useful to
you in securing a safe, economical, convenient loan to meet your
own circumstances and requirements.
SAFETY OF YOUR I N V E S T M E N T
INSURED UP T O $5,000.00
Oklahoma City Federal Savings & Loan Association's loanable
funds are ample, drawn as they are from the investor of large and
small means seeking a combination of safety and income. The
safeguard of each individual account being insured up to $5,000
makes the shares of this Association particularly attractive to such
investors. Thus, a substantial volume of private capital is. avail*
able at all times, as well as additional resources under our membership in the Federal Home Loan Bank System.
Oklahoma City Federal Savings & Loan Association has always
hacTthe confidence of its shareholders and the public through its
38 years of business life. The same management that founded
this Association in 1898 is still in charge, maintaining the same,
sound policies through the years. This capable management hasenabled this Association to enjoy a "C(J
FEDERAL SAVINGS AND
. ON JULY 1st.
j^BBSn
You can make convenient payments on a monthly basis well fitted
to repayment from the average home owner's regular wage or
salary income. Since each successive payment pays off an additional part of the principal, a correspondingly smaller part of each
subsequent monthly payment is needed as interest. Thus, a larger
part is applied for reduction of the principal.
OKLAHO
ASSOCIATIONS
[INVESTORS
|In This Association
Will Receive a 4 % Dividend
YOU TOO MAY
BUILD
FINANCIAL
MDEPESDENCBt
Savings a n be invested in this Association in any amount from as Jit tie as 50 cents a month
op to »ny multiple of % 100.00.
SAFETY of YOUR investment up to $5,000.00 assured by the United-States Government
Federal Savings and |-oan Insurance Corporation of Washington, D. C , thereby offering
investors in this Association the same safety as any Governmental Agency.
Our full paid Income shares, par value } 100.00, is the ideal- i
which a good cash return must Iv. — — '
» »»»st be earned "•gujarly
t0t
fundj
id.
fell r ettmtM
«
empowered to invest its own funds •<• snares
"h off u " M f e * The Umted State,
Moi
«>>"« of «hi,
4 ;
mcv invested /m or before July IOth uill earn dividends as of July 1st. Vour invest*
mint
it ma/ bt converted, into cash at ; o u / option through the sound withdrawal provisions
part of etfery contract.
We h ,
rite you to come in and talk over your pla.-u at any time.
Chartered and Supervised by the United States Cevernment
r/ie,
Ft*t-&T
s
A-no/^r
»8RQ^ s ?
OC|
FEDERAL,
PHONE 528
MRUS
R
ETVRN
Sehaeht,
^"™J?J0 $5,000
f ««'ph fffcil.y
125 North
OKLAHOMACITY
tv» V t v C A 0 t
444
Federal Home Loan Bank
Review
Residential Construction Activity
in the United States
A
UGUST marks the first month of this
year in which nonresidential construction contracts awarded showed an increase over a comparable period in 1934.
Such contracts awarded for the first 22
days of August (as reported for 37 Eastern
States by the F. W. Dodge Corporation)
registered an increase of 29 percent over
the same period of 1934. Contracts for
residential construction awarded during
this 22-day period constituted an increase
of 135 percent over the similar period of
the previous year (chart 1).
The average daily value of residential
construction, however, declined 16.6 percent from July to August. This decline
was greater than the seasonal July-to-August decline based upon the 3-year period
1932-1934 (chart 3), but it must be remembered that July building this year was unseasonably high.
For the entire period, January 1 to August 22, residential construction amounted
to $286,075,000, representing a gain of more
than 70 percent over the same period in
1934 (chart 2). It remains, however, at
only 20.6 percent of the $1,389,799,000 of
residential construction contracts awarded
in the comparative period of 1929.
Housing rentals in July increased very
slightly over June, thereby maintaining the
steady advance which began in the early
part of 1934. The index of housing rentals
in July rose to 68.1 percent of the 1923-1925
base as computed by the National Industrial Conference Board. This may be compared with 67.6 percent in June 1935, and
62.5 percent in July 1934. In 1929 rentals
were between 88 percent and 89 percent of
the base period level.
The cost of building as measured by the
Federal Reserve Bank of New York de-
V A L U E OF R E S I D E N T I A L CONSTRUCTION CONTRACTS AWARDED I N
1932-35
(Based on F.W.Dodge Corp. Reports for 37 Eastern States)
Millions of
Dollars
40i
- I
AUGUST 1 - 2 2 *
* Comparable Periods of 19 Business Days
CHART - 2
Millions of
Dollars
1 40
Millions of
Dollars
400 I—
30
300
20
200
JAN. I - AUG. 22
Millions of
Dotlors
— I 400
m
Federal Home Loan Bank
16498—35
3
Review
445
CHART 3.—AVERAGE DAILY VALUE OF RESIDENTIAL
CONSTUCTION CONTRACTS AWARDED IN 1935 COMPARED WITH SELECTED PERIODS
(Based on F.w Dodge Reports for 37 Eastern States.)
Millions of
Dollars
Millions of
oollora
r-m-T
\
/
J
i
i I
AVERAGE OF 3 MEDIAN YEARS 1925-1929
(High &Low Values in Each Month
Eliminated)
9
/
\
e
/
L
7
y
/
/
/
^"J
6
AVERAGE OF TEN YEARS 1925- 1934.
5
industrial production which is adjusted for
seasonal variation was 86 percent of the
1923-1925 average in July as compared with
86 percent in June 1935, and 76 percent in
July 1934. Total construction contracts
awarded, on the other hand, after correction for seasonal variation were 36 percent
of the 1923-1925 average in July, as compared with 30 percent in June and 27 percent in July 1934.
4
NUMBER OF FAMILIES FOR WHICH NEW DWELLING UNITS WERE PROVIDED IN JULY
3
•y
:AR L )35
(fl
~ * — •
DEC.
JAN.
FEB.
:' .-AVERAGE OF 3 YEARS
1
1
1
1
MAR.
APR
MAY
JUNE JULY
AU6
SEPT
OCT.
1932-1934
1
NOV.
DEC
p * Preliminary
clined slightly in July. In that month the
index stood at 88.8 percent of the 1923-1925
base, as compared with 88.9 percent in
June 1935, and 89.5 percent in July 1934.
The comparison between the level of industrial production and construction of all
kinds is indicated by indexes prepared by
the Federal Reserve Board. The index of
TABLE
HOMES were provided in July 1935 for
more than 2y2 times as many families as
in July 1934, according to data on building
permits in all cities of 10,000 population
or over collected by the Bureau of Labor
Statistics (table 2). Total housekeeping
units for which permits were granted in
July numbered 7,849 as compared with
2,817 in the same month of 1934.
One- and 2-family structures registered
the largest increases, with 182 percent and
1.—Value of construction contracts awarded in 37 Eastern States and percentage changes for
comparative periods
[Source: F . W. Dodge Corporation]
Total for the period
Aug. 1-22
Type
(000 omitted)
1935
1934
Average daily *
Jan. 1-Aug. 22
(000 omitted)
Percent
change
2
1935
1934 '
Percent Aug.
change 1935
29, 506 12, 543 + 135.2 286, 075 164,136 + 74.3
Nonresidential4. 97,144 75, 246 +29.1 696, 340 897, 777 - 2 2 . 4
Total
(000 omitted)
126, 650 87, 789 +44.3 982,415 1,061,913
-7.5
Percent change
Aug.
1935
from
July
1935
Aug.
from
July,
3-year
aver-s
age
Aug.
1934
1,553
5,113
1,861
4,264
690 - 1 6 . 6 - 1 0 . 0 + 125.1
3,739 + 19.9 + 7.3 + 36.7
6,666
6,125
4,429
+ 8.8
+ 2 . 6 +50.5
1
2
8
4
Based on the following number of business days: August 1935—19; July 1935—26; August 1934—27.
Based on preliminary reports for the first 22 days (19 business days).
Represents the average of the percent change in August from July for the 3 years 1932-34.
Includes contracts for commercial buildings, public works, and utilities.
446
Federal Home Loan Bank
Aug.
1935
from
Aug.
1934
July
1935
Review
203 percent respectively. Also, 1- and 2family units accounted for 74.7 percent of
all residential units authorized in July and
multifamily units accounted for 25.3 percent. In the first 7 months of 1935, multifamily units constituted 30 percent of all
dwellings as compared with 24.3 percent
in the similar 1934 period.
For the present year up to August 1, the
number of new residential units authorized was 42,027. This is an increase of
146 percent over the 17,087 units provided
in the similar period of 1934. Cities of all
sizes show an increase in residential construction over last year but the expansion
is especially noticeable in the larger urban
centers.
In July the average cost of all 1-family
dwellings for which permits were issued
was $4,146, an increase of 10.4 percent over
the average cost of $3,755 in July 1934. The
average cost of 2-family units was $2,785,
which was a gain of 1.8 percent over the
cost of this type of structure in the same
month of last year.
TABLE
NEW RESIDENTIAL CONSTRUCTION BY STATES IN
THE FEDERAL HOME LOAN BANK DISTRICTS
3 reveals that the estimated cost of
all new residential building in cities of
10,000 population or over for which permits
were issued in July was $29,879,000. Of
this amount, 1- and 2-family dwellings accounted for $235,805,000, or 80 percent. As
noted above, 1- and 2-family dwellings accounted for only 75 percent of the number
of new dwelling units provided. This offers an interesting comparison as to the
average cost of construction between 1- and
2-family dwellings and multifamily units.
The amount of money expended for
housing in every Federal Home Loan Bank
District except the Boston, New York, and
Little Rock Districts, showed an increase of
more than 200 percent in July 1935 as compared with July 1934.
Members of the Federal Home Loan
Banks can discover how much money is
being expended every month for new residential building in their Districts and in
their States by reference to table 3.
TABLE
2.—Number and [estimated cost of new housekeeping dwelling units for which permits were issued
in all cities of 10,000 population or over in the United States in July 1935 *
[Source: Federal Home Loan Bank Board.
Compiled from reports to U. S. Department of Labor]
Number of family units
provided
Total cost of units
(000 omitted)
Average cost of family
units
Type of structure
All housekeeping dwellings. .
Total 1- and 2-family dwellings
1-family dwellings
2-family dwellings
Joint home and business 2 . . .
Multifamily dwellings
Percent
change
July
1935
July
1934
7,849
2,817 + 178.6
5,866
5,405
k.418
'••* 43
1,983
2,081
1,917
138
26
736
July
1935
+ 181.9 $23, 805. 9
+ 182.0 22, 408.1
1,164. 0
+202. 9
233.8
+65.4
+ 169.4
July
1934
Percent
change
$7, 698. 0 +209. 2
7,197. 9 +211. 3
377.6 +208. 3
122.5 +90.9
July
1935
July
1934
$4, 058
4,146
2,785
5,437
$3, 699
3,755
2,736
4,712
Percent
change
+ 9.7
+ 10.4
+ 1.8
+ 15.4
1
Estimate is based on reports from communities having approximately 95 percent of the population of all cities
with 2population of 10,000 or over.
Includes 1- and 2-family dwellings with business property attached.
Federal Home Loan Bank
Review
447
TABLE
3.—Estimated cost of new residential buildings for which permits were issued in all cities of 10,000
population or over, in July 1935, by Federal Home Loan Bank Districts and by States *
[Source: Federal Home Loan Bank Board.
Compiled from reports to U. S. Department of Labor]
Cost of all new residential building (000 omitted)
Cost of all 1- and 2-family dwellings (000 omitted)
Federal Home Loan Bank Districts and States
fH
U N I T E D STATES
No. 1—Boston
Rhode Island
No. 2—New York
No. 3—Pittsburgh
No 4—Winston-Salem
District of Columbia
Florida
Maryland
North Carolina
South Carolina
No. 5—Cincinnati.
Ohio
Tennessee
No. 6—Indianapolis
Michigan
No. 7—Chicago
Illinois
Wisconsin
Percent
change
July 1935
July 1934
Percent
change
July 1935
July 1934
$29,879.5
$9,469. 2
+ 2 1 5 . 5 $23, 805. 9
$7, 698. 0
+209. 2
2,191. 3
1, 487.1
+47.4
2,191. 3
1, 386. 7
+ 58.0
531.3
139.7
1,189. 6
93.2
237.5
0
333.2
42.3
857.0
122.6
108.0
24.0
+59.5
+230. 3
+38.8
-24.0
+ 119.9
-100.0
531.3
139.7
1,189. 6
93.2
237.5
0
333.2
42.3
826.8
52.4
108.0
24.0
+59.5
+230. 3
+43.9
+77.9
+119.9
-100.0
6,437.1
3, 225. 7
+99.6
4,163.1
1, 656.1
+ 151.4
1, 593. 9
4, 843.2
1,110. 3
2,115.4
+43.6
+ 128.9
1, 593. 9
2, 569. 2
398.7
1, 257. 4
+299. 8
+ 104.3
1, 603. 6
521.5
+207. 5
1, 566. 8
508.4
+208. 2
84.6
1, 346. 3
172.7
51.7
450.1
19.7
+63.6
+ 199.1
+776. 6
84.6
1, 309. 5
172.7
51.7
437.0
19.7
+63.6
+ 199.7
+776. 6
3, 626. 7
948.5
+282.4
3, 294. 8
912.3
+261. 2
168.9
1, 390. 0
600.9
349. 0
177.4
390. 7
155.1
394. 7
11.6
412.0
107.7
68.1
67.3
101.1
105.0
75.7
(2)
+237. 4
+457. 9
+412. 5
+ 163.6
+286.4
+47.7
+421. 4
154.6
1,128. 5
579.4
339.7
177.4
379.4
141.1
394.7
11.6
401.8
107.7
68.1
67.3
90.1
90.0
75.7
+ 180.9
+438. 0
+ 398.8
+ 163.6
+321.1
+ 56.8
+421.4
1, 800. 0
453.9
+296. 6
1, 770. 5
430.4
+ 311.4
248. 7
1, 399. 5
j
151.8
49.7
363.5
40.7
+400. 4
+285. 0
+273. 0
248. 7
1, 370. 0
151.8
35.7
354.0
40.7
+596. 6
+287. 0
+273. 0
3, 981. 2
288.7
(2)
1, 499. 6
282.8
+430. 3
2, 729. 5
1, 251. 7
52.5
236. 2
(2)
+429. 9
288.6
1, 211. 0
52.5
230.3
+449. 7
+425. 8
2,162. 5
400. 8
+439. 5
1, 729. 7
398.4
+ 334.2
827. 5 !
1, 335. 0 j
215.1 j
185.7 |
+284.7
+618.9
697. 5
1, 032. 2 |
212. 7
185.7
+227. 9
+455. 8
(2)
1
Estimate is based on reports from communities having approximately 95 percent of the population of all cities with
population
of 10,000 or over.
1
Increase of 1,000 percent or over.
448
Federal Home Loan Bank
Review
3.—Estimated cost of new residential buildings for which permits were issued in all cities of 10,000
population or over, in July 1935, by Federal Home Loan Bank Districts and by States—Continued
TABLE
Cost of all new residential building (000 omitted)
Cost of all 1- and 2-family dwellings (000 omitted)
Federal Home Loan Bank Districts and States
July 1935 July 1934
No. 8—Des Moines
Percent
change
July 1935 July 1934
Percent
change
1, 724. 5
425.6
+305. 2
1, 717. 9
425.6
+303. 6
Iowa
Minnesota
Missouri
North Dakota
South Dakota
339.5
471.0
848.9
10.0
55.1
93.1
160.3
159.5
6.5
6.2
+264.7
+ 193.8
+432. 2
+53.8
+787.1
332.9
471.0
848.9
10.0
55.1
93.1
160.3
159.5
6.5
6.2
+257. 6
+ 193.8
+432. 2
+ 53.8
+ 788.7
No. 9—Little Rock
1, 417. 3
542.9
+ 161.1
1, 399. 9
535.8
+ 161.3
23.6
147.1
59.2
29.0
1,158. 4
1.4
23.8
62.3
3.2
452.2
(2)
+518.1
-5.0
+806. 3
+ 156.2
23.6
147.1
59.2
29.0
1,141.0
1.4
23.8
62.3
3.2
445.1
+ 518.1
-5.0
+806.3
+ 156.3
1,198. 0
214.4
+458. 8
913.5
214.4
+426.1
537.7
210.4
133.2
316.7
112.0
33.3
34.5
34.6
+380.1
+531.8
+286.1
+815.3
268.7
194.9
133.2
316.7
112.0
33.3
34.5
34.6
+ 139.9
+485. 3
+286.1
+ 815. 3
536.5
135.9
+294. 8
536.5
122.9
+ 336. 5
8.2
118.5
79.0
71.7
174.0
85.1
7.5
25.5
14.8
17.5
61.4
9.2
+9.3
+364. 7
+433. 8
+ 309.7
+ 183.4
+825.0
8.2
118.5
79.0
71.7
174.0
85.1
7.5
25.5
1.8
17.5
61.4
9.2
+ 9.3
+364. 7
(2)
+309. 7
+ 183.4
+825. 0
3, 200. 8
824.2
+ 288.4
3, 022. 3
824.2
+266. 7
62.2
3,135. 6
3.0
15.9
808.3
0
+291. 2
+288. 0
(3)
62.2
2, 957.1
3.0
15.9
808.3
0
+291. 2
+265. 8
(3)
Arkansas
Louisiana
Mississippi
New Mexico
Texas
No. 10—Topeka
Colorado
Kansas
Nebraska
Oklahoma
No. 11—Portland
Idaho
Montana
Oregon
Utah
Washington
Wyoming
No. 12—Los Angeles
Arizona
California
Nevada
2
3
(2)
Increase of 1,000 percent or over.
Represents an infinite percentage increase due to comparison with zero in the particular period.
Federal Home Loan Bank
Review
449
FEDERAL HOME
Combined statement of condi
Combined
Boston
New York
Pittsburgh
WinstonSalem
ASSETS
Gash on hand in Banks and U. S.
$13,169, 056. 49 $1, 332, 784.45 $882, 919. 30 $208, 570. 01 $178, 775.12
Treasury
Loans outstanding:
80, 872, 687. 01 2, 354, 905. 86 14, 072, 596. 30 10, 272, 314. 41 6,106, 826. 28
Members
0
4,175. 68
0
0
Other
0
Total loans
Accrued interest receivable
Investments, U. S. Government
Other assets
Total assets
80, 876, 862. 69 2, 354, 905. 86 14, 072, 596. 30 10, 272, 314.41 6,106, 826. 28
508, 023. 27
54, 997. 39
17, 516, 798. 41 3, 854, 062. 50
29, 235. 68
2,137. 28
67, 591. 66
159, 606. 25
1, 977. 38
37,460. 30
41, 994. 58
137, 900. 00 1, 482, 752. 52
1, 238. 22
3, 214. 75
112, 099, 976. 54 7, 598, 887. 48 15,184, 690. 89 10, 657, 482. 94 7, 813, 563.25
LIABILITIES AND CAPITAL
Liabilities:
Current
Fixed
Total liabilities
Capital:
Capital stock, fully paid, issued and
outstanding:
Members
U. S. Government
4, 521, 093.40
0
502, 974. 35
0
55, 000. 00
0
201, 651. 86
0
0
4, 521, 093.40
502, 974. 35
55, 000. 00
201, 651. 86
o|
22, 489, 700. 00 1, 999,100. 00 3, 246, 900. 00 1, 651, 500. 00 1, 881, 600. 00
81, 645, 700. 00 5, 000, 000. 00 11, 500, 000. 00 8, 500, 000. 00 5, 700, 000. 00
104,135,400. 00 6, 999,100. 00 14, 746, 900. 00 10,151, 500. 00 7, 581, 600. 00
Subscription to capital stock:
Less balance due
U. S. Government
Less balance due
Surplus:
Reserves:
As required under section no. 16
of act
Surplus, unallocated
Total surplus
1, 498, 800. 00
598, 401.18
36, 900. 00
23, 225. 00
210, 800. 00
113, 075.13
146, 000. 00
79, 550. 00
97, 800. 00
24, 025. 00
900, 398. 82
13, 675. 00
97, 724. 87
66,450. 00
73, 775. 00|
43, 095, 300. 00 7, 467, 500. 00 7,463, 200. 00 2, 646, 300. 00 3, 508, 200. 00
43, 095, 300. 00 7, 467, 500. 00 7, 463, 200. 00 2, 646, 300. 00 3, 508, 200. 00
1,133, 732.48
1,409, 351. 84
54, 846. 37
28, 291. 76
148,496. 32
136, 569. 70
121, 492.45
116, 388. 63
75,181. 27
83, 006. 98
2, 543, 084. 32
83,138.13
285, 066. 02
237, 881. 08
158,188. 25
Total capital
107, 578, 883.14 7, 095, 913.13 15,129, 690. 89 10,455, 831. 08 7, 813, 563. 25|
Total liabilities and capital
112, 099, 976. 54 7, 598, 887.48 15,184, 690. 89 10, 657,482. 94 7, 813, 563.25
450
Federal Home Loan Bank
Review
LOAN BANKS
tion as at July 31,1935
Cincinnati
Indianapolis
Chicago
Des Moines
Little Rock
Topeka
Portland
Los Angeles
$1, 792,432. 01$1, 953, 017. 06 $948, 895. 90 $286, 259. 77$1, 702, 677. 66
$1, 677, 462. 39
$1, 399, 311. 34$805, 951. 48
15, 448, 971.46 4,113, 399. 0512, 699, 679.443, 569, 648. 683, 555, 608.123, 286,114. 87 2, 391, 041. 30
3, 001, 581. 24
0
0
0
0
0
4, 175. 68
0
0
15,448, 971.46 4,113, 399. 0512, 699, 679.443, 569, 648. 683, 555, 608.12 3, 286,114. 872, 391, 041. 30
3, 005, 756. 92
101, 557. 70
39, 865. 31
37, 749. 44 35, 054. 03
41, 659.11
21, 084. 89
8, 942. 31 20, 066. 55
3,032,925.46 2, 088, 441. 76 121, 742. 431, 986,133.11 2, 377, 000. 001, 053, 046. 88 212, 075.001, 011,112. 50
2, 205. 62
1, 521. 77
6, 208. 26
920. 55
7, 315. 07
600. 46
1, 395.26
501. 06
20, 378, 092. 258,196, 244. 9513, 814, 275. 47
5, 878, 016.147, 677, 545. 356, 039,104. 294, 011, 871. 01
4, 850, 202. 52
1,903,800.31
0
57, 832.19 1,181, 587. 83 215, 365. 35
0
0
0
117, 656. 88
0
117, 094. 37
0
130,130. 26
0
38, 000. 00
0
1,903,800.31
57, 832.19 1,181, 587. 83 215, 365. 35
117, 656. 88
117, 094. 37
130,130. 26
38, 000. 00
4, 733,100. 00 1, 951, 800.002,166, 900.00 992, 900. 00 1, 296, 200. 00 971, 200. 00 511, 000. 001, 087, 500. 00
12,775,700.00 6, 000, 000. 00
10, 000, 000.004, 500, 000. 006,100, 000. 00 4, 700, 000. 003, 310, 000. 00
3, 560, 000. 00
17,508,800.00 7,951,800.00 12,166, 900. 005, 492, 900. 007, 396, 200. 005, 671, 200. 003, 821, 000. 00
4, 647, 500. 00
1
1
607, 700. 00
146, 950. 00
82, 500. 00
53, 550. 00
120, 800. 00
77, 990. 00
61, 700. 00
23, 725. 00
34, 800. 00
16, 095. 00
57, 500. 00
15, 800. 00
23, 400. 00
13, 850. 00
18, 900. 00
10, 566. 05
460, 750.00
28, 950. 00
42, 810. 00
37, 975. 00
18, 705. 00
41, 700. 00
9, 550. 00
8, 333. 95
0
577,400. 00 4,173, 900. 002, 894, 900. 002, 672,400.00 2, 633, 600. 002, 650, 000. 00
6, 407, 900. 00
577, 400. 00 4,173, 900. 002, 894, 900. 002, 672, 400. 002, 633, 600. 002, 650, 000. 00
6,407, 900. 00
236, 755. 27
267, 986. 67
92, 322.43
65, 340. 33
504, 741. 94
157, 662.76
55, 865. 92
75, 909. 87
88, 520. 05
56, 463. 42
40, 835. 62
168, 274. 30
29, 934. 38 36, 281. 97
1 120, 086. 60
21, 256. 37
422, 977. 64 131, 775. 79
144, 983. 47
209,109. 92
51,190. 75 156, 368. 57
153, 200. 43
269, 777. 21
Il8,474,291.94 8,138, 412. 7612, 632, 687. 64
5, 662, 650. 797, 559, 888.47 5, 922, 009. 923, 881, 740. 75
4, 812, 202. 52
|20, 378, 092. 258,196, 244. 9513, 814, 275. 47
5, 878, 016.147, 677, 545. 356, 039, 104. 294, 011, 871. 01
4, 850, 202. 52
Federal Home Loan Bank Review
451
Growth and Lending Operations of the
Federal Home Loan Banks
E
XPANSION of lending activity by the
Federal Home Loan Banks led to calls
on the United States Treasury for additional stock subscriptions from 2 regional Banks during August. This is the
first month since October 1934 that any
such calls have been made. At the same
time, inter-Bank lending was resumed on a
considerable scale after 4 months complete
suspension of such activity. Finally, be-
tween July 31 and August 17 the combined
balance of loans outstanding on advances
to member institutions rose from $80,877,000 to $83,230,000.
These data reflect both the degree to
which member institutions are taking advantage of the low interest rates offered by
the Federal Home Loan Banks on longand short-term advances, and the pick-up
in home-financing activity.
Growth, trend of lending operations, line of credit, and unused credit of the Federal Howe Loan Banks
Members
Month
Number
December
June
December
Assets *
(000
omitted)
Balance
Loans
Line of
outLoans
!
Repaycredit advanced advanced J ments j stand(cumula- (cumula- (monthly) (monthly) ing at
tive)
tive)
end of
(000 j
(000
(000
(000
month
omitted)
omitted)
omitted) omitted)
(000
omitted)
1932
1933
118
$216, 613
$23, 630
$837
$837
1,337
2,086
1, 846, 775
2, 607, 307
146, 849
211, 224
48, 817
90, 835
8,825
7,102
2,579
3,072
3, 027, 999
3, 305, 088
232, 926
254, 085
111, 767
129, 545
3,326
3,340
3, 201, 671
3,185, 822
260, 726 148, 450
260, 984 153, 523
1934
June
December
1935
June
July
Unused
line of
credit*
(000
omitted)
$837
$22, 793
$270
859
47, 600
85,442
99, 249
125, 782
2,950
2,904
3,143
3,360
85,148
86, 658
147, 778
167,426
5,353
5,074
1,957
3,429
79, 233
80, 877
181,493
180,107
1
Where declines occur they are due to adjustments based on current reports from State building and loan commissioners. In this connection it should be stated that assets of member institutions are reported when they join the System
and are subsequently brought up to date once a year as periodic reports are received either from the institutions or from
State2 building and loan supervisors.
Derived by deducting the balance outstanding from the line of credit.
NOTE.—All figures, except loans advanced (monthly) and repayments, are as of the end of month.
452
Federal Home Loan Bank
Review
Interest rates, Federal Home Loan Banks: rates on advances to member institutions
Federal Home Loan
Bank
Rate in
effect on
Sept. 1
1. Boston
Percent
3
2. New York
3. Pittsburgh
3#
4
3H
4. Winston-Salem
5. Cincinnati....
6. Indianapolis...
3
3H
7. Chicago
8. Des Moines...
3#
3H
3^-4
9. Little Rock
10. Topeka....
11. Portland...
3
3
3
3H|
12. Los Angeles
Type of loan
All advances for 2 years or less, made between July 1 and Dec. 31, 1935, with right
to renew for period up to 10 years at not more than 4 percent. During 6-month
period, July 1 to Dec. 31, 1935, interest will be collected at 3 percent on all outstanding 10-year advances.
All advances for 1 year or less, and amortized within that time.
All other advances.
All advances for 1 year or less. All advances for more than 1 year are to be written
at 4 percent, but until further notice credit will be given on all outstanding advances
for the difference between the written rates of 5,4^, or 4 percent and 3 ^ percentum
per annum.
All advances secured by H. 0 . L. C. bonds.
All advances for 1 year or less. All advances for more than 1 year are written at 4}£
percent, but interest collected at 4-percent rate.
All advances for 2 years or less. All advances for more than 2 years are to be written
at 3% percent, but billed at 3 percent during the period in which short-term advances
carry this rate.
All secured advances for 1 year or less.
All unsecured advances, none of which may be made for more than 6 months.
All secured advances for more than 1 year.
All advances written for 1 year or less. All advances for more than 1 year are to be
written at 4 ^ percent, but billed at 3 ^ percent during the period in which shortterm advances carry this rate.
All advances for 1 year or less.
All new advances for more than 1 year shall be written at 3K-percent interest rate for
the first year and 4 percent for subsequent years. However, the rate of interest
collectible quarterly after the first year shall be the same as the then effective rate
on short-term advances. On all existing advances written at 4 ^ percent only 4 per
cent will be collected on and after May 1, 1935 so long as these lower rates remain
in effect. Further, all advances outstanding at May 1, 1935 written in excess of
3}£ percent will, on Dec. 31, 1935, and semiannually thereafter, receive a refund of
such portion of the interest collected above V/% percent as the Board of Directors
shall deem justifiable. Such refund will be granted only on loans on which no payments in advance of maturity are made.
All advances.
Do.
All advances to members secured by mortgages insured under Title II of National
Housing Act.
All advances for 1 year or less. All advances for more than 1 year to be written at
4 percent, but interest collected at V/2 percent so long as short-term advances carry
this rate.
All advances.
1
On May 29, 1935 the Board passed a resolution to the effect that all advances to nonmembers institutions upon
the security of insured mortgages, insured under Title II of the National Housing Act, "shall bear interest at rates of
interest one half on 1 per centum per annum in excess of the current rates of interest prevailing for member institutions/'
Federal Home Loan Bank
Review
453
Federal Savings and Loan System
B
ETWEEN January and July, the percentage of all mortgage loans made
by reporting Federal savings and loan associations for new construction and purchase of homes rose from 29.4 percent to
almost 50 percent. During this period, the
percentage of loans for reconditioning remained practically stationary around 8 percent, but the percentage for refinancing
fell from 61.3 percent in January to 43.2
percent in July. This gradual shift away
from refinancing and towards construction
and purchase loans, though due in part to
seasonal factors, is nevertheless an encouraging sign of the revival of confidence and
of real-estate and home-building activity.
Table 1 reveals the degree to which both
new and converted associations not only
expanded their lending activity for all purposes but gained in share subscriptions in
the month of July as compared with June.
As a result of the semiannual declaration
of dividends, the item "repurchases during m o n t h " showed its usual seasonal
advance for both new and converted
associations.
Table 2 reveals an increase during July
of nearly $7,000,000 in total Treasury subscriptions to shares of Federal savings and
loan associations. As of July 31, the Treasury had subscribed a total of $37,044,500
to associations' shares. At that time, requests were in for an additional $6,000,000.
July saw the addition of 33 converted
and 10 new Federal associations. This
brought the total as of July 31 to 794 with
assets of $365,800,000 (table 3).
KEPORTS ON EFFECTS OF FEDERALIZATION
A NUMBER of associations converted from
State charters have recently reported
454
progress made as a result of federalization.
Extracts from these reports are given
below.
From a converted association in Tennessee, which began business under Federal charter on July 1:
We were not especially interested in increasing stock sales for the time being, because we
had been compelled to place a limit on sales in
the State association, but we were anxious for an
increase in good loan demand. We are pleased
with the increase in both departments. But even
with the increase in loans, we still find a limit
on sales necessary. Otherwise we will not get
to the place where we can use the Banks 3y2
percent money.
I would say that our loan demand has increased at least 50 percent. The direct reduction loan is very popular and I feel that the
association which does not adopt it is headed
for liquidation. We made a net increase of 5
percent in loans during the first 30 days. Insurance of shares is also a stimulus to stock sales.
F r o m a converted association in New
York:
We have been operating as a Federal association since January 8, 1935, after having given
considerable thought to conversion for over a
period of a year. Our only regret is that we did
not federalize in January 1934.
. . . we are enjoying a good volume of unsolicited subscriptions to shares. We believe
that this new business, coming to the association from people not previously known to us, is
a healthy sign.
From a converted association in North
Carolina:
Following receipt of this charter and the certificate of insurance, we announced to the public the advantages of a Federal association, and
the response to this announcement has been phenomenal. When our plan of loans was announced
we immediately began to receive applications of
the highest type for loans—an entirely different
Federal Home Loan Bank
Review
class of business than the old State-chartered
association had always been accustomed to
handling. Since that time, we have made more
loans than in the previous 2% years—and with
respect to investments—all of our old shareholders seem to be well pleased with the addiTABLE
tional safety offered under the insured plan, and
new investments since that time aggregate more
than $25,000. Applications for repurchase of
shares are confined strictly to absolute necessity.
It has become necessary for us to increase our
office force.
1.—Federal Savings and Loan System—Combined summary of operations for July 1935 compared
with June 1935
223 converted associations
435 new associations
Total subscriptions at end of month:
Private share accounts
July
June
48, 893
454,415
10
45, 949
422, 737
10
Change
June to
July
Percent
+ 6.4
+ 7.5
0
Change
June to
July
June
July
200, 251
2, 509, 594
12.2
Percent
+3.7
+ 1.-2
+2.4
+ 15.3 $151, 637, 453 $154, 204, 863
+ 14.1
16, 200, 900
13, 446, 900
-1.6
+20.5
207, 622
2, 538, 921
12.5
Share liability at end of month:
$14, 483, 312 $12,564,535
16,948,600 I 14, 854, 300
Treasury subscriptions
297
234, 843
Average paid on private subscriptions...
Repurchases during month
Mortgage loans made during month:
a. Reconditioning
b. New construction
c. Refinancing
d. Purchase of homes
317,
1,179,
1, 693,
695,
Total for month
x
Borrowed money as of end of month:
From Federal Home Loan B a n k s . . .
From other sources
Total
+ 14.6
167, 838, 353
167, 651, 763
+.1
+ 8.4
+ 104.7
730
4, 218, 988
770
1, 753, 924
-5.2
+ 140.5
418,
951,
2, 067,
1, 373,
292,
757,
2, 035,
1, 384,
31,431,912 27, 418, 835
Total
681
956
274
262
274
114, 723
247,
1, 015,
1, 463,
573,
218
004
657
602
+28.5
+ 16.2
+ 15.7
+21.2
3, 886,173 3, 299, 481
31, 331, 805 27, 070,117
+ 17.8
+ 15.7
2, 789, 482
68, 179
+ 16.1
2, 403, 276
50, 854 ! + 3 4 .
2, 857, 661
2, 454, 130 !
+16.4
370
771
380
645
+43.2
+25.6
+ 1.6
-.8
4, 812, 346
140,840,463
4, 470,166
138,129, 282
+ 7.7
11, 294, 737
1, 803, 508
10, 709, 919
1, 858, 786
+ 5.4
—3.
13, 098, 245
12, 568, 705
+4.2
819
714
819
994
+2.
!
:
This total includes loans made for other purposes than those listed.
TABLE
2.—Treasury subscriptions to stock of Federal savings and loan associations—Request and
subscriptions
Dec. 31,
1933
Federal Home Loan Bank
OO
OO
Requests received:
Number
Amount
Subscriptions:
N umber
Amount
Review
June 30, 1934
Dec. 31, 1934
June 30, 1935
July 31, 1935
184
$2, 726, 500
707
$14, 839, 600
1,490
$38, 098, 000
1,636
$43, 094, 500
71
$1, 229, 300
536
$10, 725,400
1,293
$30, 606, 700
1,475
$37, 044, 500
455
TABLE
3.—Progress in number and assets of the Federal Savings and Loan System
Number
New
Converted
Total
456
Assets
Number
Assets
June 30,
1935
July 31,
1935
July 31,
1935
Dec. 31,
1933
June 30,
1934
Dec. 31,
1934
June 30,
1935
57
2
321
49
481
158
554
297
$36,145,430
268, 423, 577
564
330
$36, 875, 037
328, 931, 531
59
370
639
851
304, 569, 007
894
365, 806, 568
Federal Home Loan Bank
Review
Federal Savings and Loan Insurance
Corporation
B
UILDING and loan associations that
are debating the desirability of having
their shareholders' accounts insured by the
Federal Savings and Loan Insurance Corporation, frequently request information
on the experience of associations already
insured. To satisfy this demand and extend the benefits of the information to the
largest group possible, the REVIEW will publish regularly pertinent extracts from letters and reports currently received.
The following excerpts are taken from a
letter dated August 7, from a North Carolina association whose accounts were insured on June 8. Particular attention is
called to the last paragraph which indicates
the importance of educating the public concerning the significance of Federal insurance.
The announcement to our old members has
met with universal satisfaction and approval and
has resulted in many of them increasing their
investments in the association since that time,
and has also attracted a great number of new
investors and has resulted in more money coming into the association for investments since
that time than we had received over the previous
2-year period. . . .
With regard to the stimulation of applications
for home loans, we desire to say that we are
being offered a higher class of security for loans,
and that we have received applications, and
made more loans since that time than we had
in the previous 2 years.
Our association is the first association in this
part of North Carolina to convert from a State
to a Federal charter, and naturally the public at
first did not understand it, but as they are beginning to understand that we are offering this
protection to our members it is very gratifying
to us to note the results, and we cannot too
highly recommend the insurance of shares to all
associations that are not insured.
Federal
Home
Loan
Bank
Review
From a converted association in New
York:
The insurance of share accounts was felt to be
needed by this association before we converted.
Old members are now adding to their share
credits more rapidly and consistently than before conversion, and we are attracting as members people of our community from whom we
could not get accounts in the past.
An association in the State of W a s h i n g ton w r o t e i n p a r t as follows 10 days after
receipt of its i n s u r a n c e certificate:
We have been more than pleased with the reception the public has given us to date. Our old
members that had damned us and blamed the
entire depression upon us have been most enthusiastic in their endorsement . . .
We are for the first time since 1931 receiving
new investments and are aggressively in the
loan business again for the first time in over
4 years.
We have the above to report during the hardest
times this county has had due to a 15-week
lumber strike with no let-up in sight.
F r o m a converted association in I d a h o :
On April 1 the First Federal Savings and Loan
Association of . . . , Idaho, began business fully
protected by Federal savings and loan insurance
on all share accounts, and it was immediately
recognized by the manager of the institution and
the Board of Directors that confidence was,
among the shareholders and public, immediately
restored.
After operating 3 months, on July 1, after
taking care of all the organization expenses, and
the expenses required under the charter, we were
able to pay the shareholders a dividend on the
basis of 4 percent per year.
The fact that we are insured has not brought
any large amount of new accounts, at the same
time we can see day by day the atmosphere is
clearing and confidence is completely restored.
457
PROGRESS OF THE INSURANCE CORPORATION
A LARGER number of associations had their
shareholders' accounts insured during the
period July 20 to August 24 than in any
comparable period for the preceding 6
months. Of a total of 71 associations receiving their certificate of insurance, 23
were State-chartered associations and 48
were converted Federal savings and loan
associations. The total assets of the 932
associations insured as of August 24 was
$475,824,281 and the total number of shareholders whose accounts up to $5,000 were
protected by insurance was 714,378.
During this same period, the Insurance
Corporation received applications for insurance from 83 associations, bringing the
total of applicant associations to 1,180, with
combined assets of $827,765,455. Of the
83 applicants, 40 were State-chartered associations, 28 Federal savings and loan associations converted from State charters,
and 15 new Federal associations.
Progress of the Federal Savings and Loan Insurance Corporation—Applications received
and instiutions insured
APPLICATIONS RECEIVED
Assets (as of date of application)
Number
Dec. 31, July 20, Aug. 24,
1934
1935
1935
State-chartered associations
Converted F. S. and L. A
New F. S. and L. A
Total
53
134
393
199
375
523
580
1,097
Dec. 31,
1934
July 20,
1935
Aug. 24,
1935
239 $110, 681, 409 $370, 000,180 $399, 947, 510
403 128, 907, 073 356, 659, 511 418, 661, 514
538
7, 578, 870
8, 893, 767
9,156,431
247,167, 352
735, 553, 458
Number
Number of
shareholders
(as of date
of insurance)
Share and
creditor
Assets (as of
liabilities (as
date of
of date of
insurance)
insurance)
Dec. 31, July 20, Aug. 24,
1935
1935
1934
Aug. 24,
1935
1,180
827, 765, 455
INSTITUTIONS INSURED
State-chartered associations
New and converted F. S. and L. A
Total
458
Aug. 24,
1935
Aug. 24,
1935
4
447
47
814
70
862
184, 844 $126, 560,462 $140, 778, 835
529, 534 306, 888, 002 335, 045, 446
451
861
932
714, 378
433, 448,464
475, 824, 281
Federal Home Loan Bank
Review
Home Owners' Loan Corporation
Applications received and loans closed by months *
Applications
received
(number)
Month
Loans closed
Number
Amount
1933
From date of opening through Sept. 30. .
October
November
December
1934
January. .
February.
March
April
May
June
July.
August
September.
October
November.
December.,
593
3,424
10, 946
22, 286
$1, 688, 787
10,164, 678
31, 445, 827
62, 621, 051
123,189
136,132
168, 273
145, 772
119, 791
97, 679
66,157
72, 022
39, 317
35, 675
2
13, 913
30, 339
32, 940
52, 260
56,172
64,172
71, 768
78, 046
69, 738
59, 240
65, 813
54, 468
54, 036
86,143, 838
93,499, 995
150, 213, 639
171, 490, 768
208, 293, 766
223, 440,191
235, 467, 606
202, 442, 864
179, 299, 857
201, 211, 532
170, 544, 562
169, 018, 847
54, 990
36, 542
23,140
13, 807
13, 593
13,142
13, 413
9,927
166, 836,150
104, 919, 941
70, 664, 400
39, 475,180
41, 235, 897
40, 557, 636
41, 569, 800
30, 065, 530
904, 795
2, 732, 312, 342
1935
January. .
February.
March
April
May
June
July.
Aug. 1 to Aug. 22
3
2, 914
139, 260
Grand total to Aug. 22, 1935.
1
2
8
403,114
129, 504
99, 232
90, 946
1, 882, 890
These figures are subject to adjustment.
Receipt of applications stopped Nov. 13, 1934, and was not resumed until May 28, 1935.
Represents applications received in 3 days. Order to receive applications for a 30-day period was issued May 28,
1935.
Reconditioning Division—Summary of all reconditioning operations through Aug. 22y 1935
Period
June 1, 1934 through July 24, 1935 1
July 25, 1935 through Aug. 22, 1935 2
Grand total through Aug. 22, 1935
Number of
applications
received for
reconditioning loans
Total contracts executed
577, 707
22, 380
269, 359 $49,138,161
2, 007, 230
9,039
221, 034
18, 393
$39,121, 517
3, 234, 945
600, 087
278, 398
239, 427
42, 356,462
Number
Amount
51,145, 391
Total jobs completed
Number
Amount
1
The totals for this period differ from those published in the August REVIEW due to subsequent corrections.
The figures for this period are subject to correction.
NOTE.—Prior to the organization of the Reconditioning Division on June 1, 1934, the Corporation had completed
52,269 reconditioning jobs amounting to approximately $6,800,000.
2
Federal Home Loan Bank
Review
459
Resolutions of the Board
L—PROVIDING FOR THE RETIREMENT
OF SHARES OF FEDERAL SAVINGS
AND LOAN ASSOCIATIONS PURCHASED BY THE SECRETARY OF
THE TREASURY
The Board adopted the following resolution on August 12:
Whereas the Federal statute provides for the
retirement of shares of Federal savings and loan
associations purchased by the Secretary of the
Treasury of the United States on the approval
of this Board beginning at the expiration of five
years from the time of the investment in such
shares, and in the case of preferred shares, such
retirement to take place from one third of the
receipts from the investing and borrowing shareholders, and in the case of full-paid income
shares, such retirement shall be made in accordance with the rules and regulations prescribed
by the Board for such associations, and
Whereas no provision by law is made for the
retirement of such shares by such associations
prior to such dates, and
Whereas some associations desire to begin the
retirement of their shares held by the Secretary
of the Treasury prior to the statutory period,
therefore
Be it resolved by the Federal Home Loan Bank
Board that, subject to the approval of the Secretary of the Treasury, Federal savings and loan
associations having issued receipts to the Secretary of the Treasury for subscription to shares
and desiring to repurchase such shares in whole
or in part prior to the expiration of the statutory period may retire such shares in whole or
in part as follows:
1. Such associations shall execute in quadruplicate request to the Secretary of the Treasury
for the retirement of such shares in whole or in
part on the form approved by the Board and
filed on Page 200 of the Exhibit Book, properly
filled out and executed for repurchase in units
of $100 shares which shall be accompanied by
check, money order, or draft for the amount
indicated.
2. Requests to repurchase shares held by the
Secretary of the Treasury when made prior to
460
the end of the statutory period shall be made as
of a dividend date with remittance within 30
days thereafter and with dividends as declared
to such dividend date.
3. Such requests to repurchase shall be forwarded by the association to the Federal Savings and Loan Division, and after approval by
the Board, shall be transmitted to the Secretary
of the Treasury.
4. The Secretary of the Treasury will cause to
be executed an acceptance of such request to repurchase and will mail acknowledgment to the
association and to the Federal Savings and Loan
Division.
II.—CONCERNING THE JOINT USE OF
THE SAME OFFICE BY A FEDERAL
SAVINGS AND LOAN ASSOCIATION
AND ANOTHER INSTITUTION ENGAGED IN THE FINANCING OF
HOMES
The Board adopted the following resolution on August 22:
Whereas it appears to be undesirable for Federal savings and loan associations to operate in
the same office with another institution engaged
principally in the business of the financing of
homes, and
Whereas several such associations were organized and are operating in the same offices
with other institutions engaged principally in
the financing of homes, therefore
Be it resolved that the General Manager of the
Federal Savings and Loan Division be directed to
make a survey of the situation of Federal savings
and loan associations which are operating in the
offices of other institutions engaged principally
in the business of financing homes and report to
the Board, and
Be it further resolved that all such associations
be required to enter into a written agreement
with the institution occupying space with it, setting out clearly the basis of such joint occupancy and in a form approved by the General
Manager of the Federal Savings and Loan Division, and
Be it further resolved that if a satisfactory
basis of joint occupancy is not arranged within
Federal Home Loan Bank
Review
a reasonable time such Federal savings and loan
association be required to secure for itself separate space.
III.—AMENDING THE RULES AND REGULATIONS FOR FEDERAL SAVINGS
AND LOAN ASSOCIATIONS CONCERNING THE DATE AT WHICH THE
ANNUAL AUDIT SHALL BE MADE
On August 22, the Board adopted the
following resolution:
Be it resolved by the Federal Home Loan Bank
Board that Section 18 of the Rules and Regulations for Federal Savings and Loan Associations,
Revised Edition, June 1935, be amended by the
addition of the following:
" The audit herein provided for shall be made
as nearly as practicable six months after the
official examination, and in the event the official
examination is delayed may be delayed until six
months after such examination."
IV.—CONCERNING CALLS ON THE
HOME OWNERS' LOAN CORPORATION FOR SUBSCRIPTIONS TO
SHARES OF FEDERAL SAVINGS AND
LOAN ASSOCIATIONS
On August 28, the Board directed that
the Federal Savings and Loan Division
Federal
Home
Loan
Bank
Review
shall handle calls by Federal savings and
loan associations for subscriptions to shares
by the Home Owners' Loan Corporation
in the same manner as the Federal Savings
and Loan Division has heretofore handled
calls on the Secretary of the Treasury by
such associations.
V.—AUTHORIZING OFFICIAL ABBREVIATIONS OF AGENCIES UNDER THE
BOARD
On August 21, the Board approved the
following resolution:
Be it resolved that in the interest of economy
in the transmission of telegrams, the following
code words shall be used for names as shown:
FSLIG for Federal Savings and Loan Insurance Corporation
BLA for Building and Loan Association
HOLC for Home Owners' Loan Corporation
FHLBB for Federal Home Loan Bank Board
FHLB for individual Banks as "FHLB
BOSTON "
FSLA for Federal Savings and Loan Association
FSLD for Federal Savings and Loan Division.
461
Directory of Member, Federal, and
Insured Institutions
Added during July-August
I. INSTITUTIONS ADMITTED TO MEMBERSHIP
IN THE FEDERAL HOME LOAN BANK SYSTEM BETWEEN JULY 29, 1935, AND AUGUST
24, 1935 l
{Listed by Federal Home Loan Bank Districts, States, and
cities)
DISTRICT NO. 2
NEW JERSEY:
Paterson:
Benefactor Building & Loan Association, 64 Hamilton Street.
Pompton Lakes:
Pompton Lakes Building & Loan Association, 115
Wanaque Avenue.
Rutherford:
Rutherford Mutual Loan & Building Association,
Glen Road & Park Avenue.
NEW YORK:
Baldwinsville:
Baldwinsville Savings & Loan Association, 2 West
Genesse Street.
DISTRICT NO. 3
PENNSYLVANIA:
New Castle:
Equitable Building & Loan Association of New
Castle, 33 North Mercer Street.
Philadelphia:
St. Charles Building & Loan Association, 5431
Cedar Avenue.
Wharton Building Association No. 3, 1802 South
Broad Street.
Washington:
Industrial Building & Loan Association of Washington, 28 Court Square Arcade.
DISTRICT NO. 5
KENTUCKY:
Newport:
Standard Savings, Building & Loan Association,
821 York Street.
OHIO:
Canton:
First Savings & Loan Company of Canton, Ohio.
Van Wert:
Van Wert Building & Savings Company, 123 West
Main Street.
West Milton:
Milton Loan & Savings Association, 102 North
Miami Street.
1
During this period 11 Federal savings and loan associations were admitted to membership in the System.
462
DISTRICT NO. 7
ILLINOIS :
Chicago:
Lawndale Building & Loan
South Kedzie Avenue.
Association,
2340
WISCONSIN :
Milwaukee:
Bay View Building & Loan Association,
South Kinnickinnic Avenue.
Home Mutual Building & Loan Association,
West North Avenue.
Sherman Park Building & Loan Association,
West Center Street.
State Building & Loan Association, 634
Mitchell Street.
West Allis:
West Allis Building & Loan Association,
West Greenfield Avenue.
2671
2613
2800
West
7028
DISTRICT NO. 10
KANSAS:
Wichita:
Southwest Building & Loan Association, 109 North
Topeka Avenue.
WITHDRAWALS FROM T H E FEDERAL HOME LOAN
BANK SYSTEM BETWEEN JULY 29, 1935,
AND
AUGUST 24,
1935
IOWA :
Mason City:
Mason City Building & Loan Association.
McGregor:
Home Savings & Loan Association.
MASSACHUSETTS :
Waltham:
Watch City Co-operative Bank, 7 Moody Street.
NEW JERSEY:
Trenton:
White Horse 'Building & Loan Association, 73
Locust Avenue.
II. FEDERAL SAVINGS AND LOAN ASSOCIATIONS CHARTERED BETWEEN JULY 30,
1935, AND AUGUST 26, 1935
(Listed by Federal Home Loan Bank Districts, States, and
cities)
DISTRICT NO. 1
CONNECTICUT :
Bristol:
Bristol Federal Savings & Loan Association, 5
Prospect Street (converted from Bristol Building & Loan Association, Incorporated).
Groton:
New London Federal Savings & Loan Association.
Federal Home Loan Bank
Review
DISTRICT NO. 2
INDIANA :—Continued
NEW YORK:
Albany:
West End Federal Savings & Loan Association of
Albany, 854 Madison Avenue (converted from
West End Savings & Loan Association).
Kenmore:
First Federal Savings & Loan Association of Kenmore, 2830 Delaware Avenue (converted from
Kenmore Savings & Loan Association).
DISTRICT NO. 4
ALABAMA :
Birmingham:
Birmingham Federal Savings & Loan Association,
2028 First Avenue, North (converted from Birmingham Building & Loan, Incorporated).
FLORIDA :
Eustis:
First Federal
Eustis.
DISTRICT NO. 7
ILLINOIS :
Lawrenceville:
Lawrenceville Federal Savings & Loan Association,
614 Twelfth Street (converted from Lawrenceville Investment & Loan Association).
Wheaton:
Home Federal Savings & Loan Association of
Wheaton, 107 North Main Street (converted from
Home Building & Loan Association of Wheaton).
Savings & Loan Association of
Athens:
Athens Federal Savings & Loan Association, 231
Washington Street (converted from Mutual
Building & Loan Association).
Atlanta:
Atlanta Federal Savings & Loan Association, 74
Plaza Way (converted from Atlanta Building &
Loan Association).
NORTH CAROLINA:
Tryon:
Tryon Federal Savings & Loan Association.
KENTUCKY :
Hopkinsville:
First Federal Savings & Loan Association of
Hopkinsville.
Newport:
Clifton-Southgate Federal Savings & Loan Association of Newport, 1009 Monmouth Street (converted from Clifton-Southgate Loan & Building
Association).
OHIO:
Chillicothe:
First Federal Savings & Loan Association of Chillicothe, 166 East Main Street (converted from East
End Building & Loan Company).
Cincinnati:
Cincinnati Federal Savings & Loan Association,
3115 Warsaw Avenue (converted from Library
Savings & Loan Company).
Galion:
First Federal Savings & Loan Association of
Galion, Public Square (converted from Home
Savings & Loan Company of Galion, Ohio).
Niles:
McKinley Federal Savings & Loan Association of
Niles, 36 South Main Street (converted from
McKinley Savings & Loan Company).
TENNESSEE :
& Loan Association of
DISTRICT NO. 6
INDIANA :
East Chicago:
East Chicago Federal Savings & Loan Association.
Federal Home Loan Bank
Algona:
Algona Federal Savings & Loan Association, 7
North Dodge Street (involving transfer of assets
of Algona Building, Loan & Savings Association).
NORTH DAKOTA:
Fargo:
First Federal Savings & Loan Association of Fargo,
13 Broadway (converted from Fargo Building &
Loan Association).
DISTRICT NO. 9
ARKANSAS:
Little Rock:
Guaranty Federal Savings & Loan Association, 123
Main Street.
DISTRICT NO. 5
Waynesboro:
First Federal Savings
Waynesboro.
DISTRICT NO. 8
IOWA:
GEORGIA :
Gary:
Steel City Federal Savings & Loan Association,
1134 Broadway.
Richmond:
First Federal Savings & Loan Association of Richmond, 21 North Ninth Street (converted from
Richmond Loan & Savings Association).
Review
DISTRICT NO. 10
COLORADO:
Denver:
Industrial Federal Savings & Loan Association of
Denver, 740 Seventeenth Street (converted from
Industrial Building & Loan Association).
NEBRASKA :
Nebraska City:
Second Federal Savings & Loan Association of
Nebraska City, 115 South Eighth Street (converted from Nebraska City Building & Loan
Association).
DISTRICT NO. 11
UTAH:
Salt Lake City:
Prudential Federal Savings & Loan Association,
49 West South Temple Street (converted from
Prudential Building Society).
DISTRICT NO. 12
CALIFORNIA :
Los Angeles:
Los Angeles Federal Savings & Loan Association,
215 West Seventh Street.
San Francisco:
Eureka Federal Savings & Loan Association of
San Francisco, 465 California Street (converted
from Eureka Building & Loan Association).
Santa Monica:
First Federal Savings & Loan Association of Santa
Monica, 222 Santa Monica Boulevard (converted
from Citizens Guarantee Building-Loan Association of Santa Monica).
463
III. INSTITUTIONS INSURED BY THE FEDERAL SAVINGS AND LOAN INSURANCE
CORPORATION BETWEEN AUGUST 2, 1935,
AND AUGUST 30, 1935 *
(Listed b y Federal Home Loan Bank Districts, States, and
cities)
DISTRICT NO. 5
OHIO:
Belief ontaine:
Bellefontaine Building & Loan Company, 149 West
Columbus Avenue.
Canton:
Citizens Building & Loan Company, 114 Market
Avenue.
Cincinnati:
Market Building & Savings Company, 1717 Vine
Street.
DISTRICT NO'. 6
INDIANA :
Franklin:
Mutual Building & Loan Association, 40 North
Water Street.
Huntington:
People's Savings & Loan Association, 450 North
Jefferson Street.
DISTRICT NO. 9
LOUISIANA :
Algiers:
Algiers Homestead Association, 644 Bonny Street.
Covington:
St. Tammany Homestead Association, 311 New
Hampshire Street.
N e w Orleans:
Carrollton Homestead Association, 923 Maritime
Building.
1
During this period 45 Federal savings and loan a s s o ciations were insured.
464
LOUISIANA—Continued.
New Orleans—Continued.
Citizens Homestead Association, 1117 Canal Bank
Bldg.
Dixie Homestead Association, 404 American Bank
Building.
Dryades Building & Loan Association, 1701 Dryades
Street.
Eureka Homestead Society, 451 Camp Street.
Fifth District Homestead Society, 518 Verret
Street.
General Building & Loan Association, Maritime
Building.
Homeseekers Building & Loan Association, 542
Frenchman Street.
Jackson Homestead Association, 722 Common
Street.
Pelican Homestead Association, 625-26 Canal Bank
Building.
Security Building & Loan Association, 801 Masion
Blanche Building.
Sixth District Building & Loan Association, 4322
Magazine Street.
TEXAS :
Dallas:
Dallas Building & Loan Association, 1319 Commerce Street.
Greenville:
Mutual Building & Loan Company, 306-7 GrahamFagg Building.
DISTRICT NO. 11
WASHINGTON :
Seattle:
Puget Sound Savings
Fourth Avenue.
& Loan Association,
1414
DISTRICT NO. 12
CALIFORNIA :
Pasadena:
Mutual Building & Loan Association of Pasadena,
38 South Los Robles Avenue.
Federal Home Loan Bank Review
Suggestions for Bindingthe Completed First
Volume of the Federal Home Loan
Bank Review
W
ITH this issue, the
FEDERAL
HOME
LOAN BANK REVIEW completes its
first 12-months of existence and consequently its first volume. The October issue
will be Number 1 of Volume 2. Those who
wish to preserve past issues for ready reference will find it preferable to have the
volume bound. The cost of such work is
slight and can be done locally.
To facilitate the use of a bound volume,
the pages have been numbered consec-
Federal Home Loan Bank
Review
utively through the 12 issues. 1 Also, a complete index of the 12 numbers has been prepared and is published in the last pages of
this issue, so that it will come at the end
of the volume.
1
Due to an oversight, the pages of issue Number 2, published in November 1934, were numbered beginning at 1
instead of 29. However, the correct consecutive number
appears on the first page of Number 3. The pages of issue
Number 2 should therefore be renumbered in ink beginning
with 29 and ending with 64. The page references in the
index are to the corrected page numbers.
465
Index of Volume I—Federal Home Loan
Bank Review
Advertisements, samples, 97-98, 204-05, 287-88,
381, 424, 443-44
Appraisals, by HOLC, 119-23
Building and loan associations, history of, 146-48
Capital structure, of savings and loan associations, 396-99
Combined statement of condition of Federal
Home Loan Banks, by months (tables), 22,
50, 90, 128, 172, 222, 262, 298, 340, 382,
412, 450
Construction: improving quality of, 12; monthly
data on (tables), 111, 149, 212, 253, 293, 332,
371, 407, 445; world trends in, 244-48
Conversion: constitutionality of, 208-11; resolu
tion of the Board affecting, 62
Demand deposits, 10, 397-98
England, housing in, 103-10
Examining Division, creation of, 61
F a r m Credit Administration, 69-70
Federal Emergency Relief Administration, 72
Federal Home Loan Banks: advances to member
institutions, 67, 126, 169-71, 219-21, 264-66,
301, 337-38, 377, 414-16, 452-53; dividends
declared, 87-89, 130; interest rates on advances to members (tables), 21, 52-53, 92,
131, 171, 219-21, 266, 302, 339, 378, 415, 453
FHLB Act, amendments to, 279-81
FHLB REVIEW, purposes of, 18
FHLB System: general description of, 8-9, 10,
52, 72, 87-88; membership compared w i t h
potential membership, 54-55; state legislation affecting, 163-66
Federal Housing Administration, 73
Federal savings and loan associations: advertising for, 202-07, 441-44; constitutionality of,
208-11; dividends paid by, 224; experience
of, in New England, 167-68; general description of, 8, 24, 73; legal validity of, 27; rules
and regulations, 146-48, 189-99, 239-43,
289-92, 328-29, 353-55, 368-69, 396-99
Federal Savings and Loan System, operations, by
months (tables), 24, 56-57, 94-96, 132-33,
174-77, 224-28, 267-71, 304, 342-44, 379,
416-21, 454-56
Federal Savings and Loan Insurance Corporat i o n : general description of, 10, 24-25, 73;
progress, by months (tables), 58, 93, 134-36,
178, 229-30, 272-73, 306, 345-46, 384, 422,
457-58; rules and regulations, 75-78, 366-67
466
Federal Subsistence Homesteads Corporation, 71
Financial survey of urban housing, 39-44, 359-63
Foreclosed properties, disposition of, 317-18
Foreclosures, study of, in a building and loan
association, 79-84
Form I, 370.
Government: agencies concerned in
financing
homes, 68-74; competition with private
home-financing agencies, 14, 33-34; aid to
private agencies, 14, 65; program for the
organization of the nation's home-financing
system, 7-14; responsibility for housing, 2
Guarantee stock, 398-99
Holland, housing in, 431-36.
Home financing: cost of, 6, 11, 239-43, 328-29,
353-55; market for, 143-45, 330-31
Home-financing system: collapse of, 31-32; defects of, 3-7, 33; history of, 1-7
Home-mortgage debt, national total, 3
Home Owners' Loan Act, amendments to, 279-81
Home Owners' Loan Corporation: applications
stopped, 99; appraisals, 119-23; description
of, 69; effect on interest rates, 1 1 ; effect on
liquidity of lending institutions, 137-38;
effect of operations on real-estate market and
economic structure, 2; investment in savings
and loan shares, 279, 393-95, 437-40; necessity for, 31-32; operations, by months
(tables), 26, 60, 101, 138, 179, 231, 274, 309,
347, 386-87, 425, 459
Housing: in England, 103-10; in Holland, 431-36,
shortage, 15-17, 34; standards of, in relation
to risk, 364
I n c o m e : of families, 41-42, 359-63; in relation
to rent, 41
Interest r a t e s : adjustment to risk, 282-85; on
home mortgages, 6, 19-20, 45-49, 353-55
Investment market, 321-23
" J e r r y " building, 12
Life insurance companies, investments of, 200-01,
249-50, 319-20
Loan amortization, plans of, 189-99
Long-term amortized loan, superiority of, 5, 7
Louisiana, State-wide program of share insurance, 356-58
Mortgage experience tables, 400-03
Federal Home Loan Bank
Review
National Housing Act, amendments to, affecting
FSLIG, 279-81
Neighborhoods: appraisal of, 404-06; their effect on investment risk, 315-16
Premiums, 289-92
Private capital, opportunity of, in home financing, 65-67
Public Works Administration, 71
Real Property Inventory: 14, 324-27; statistical
summary of results, 16-17
Reconditioning Division: description of, 85;.
operations, by months (tables), 86, 139, 179,
231, 274, 308, 347, 387, 425, 459
Federal Home Loan Bank
Review
Reconditioning loans, procedure for handling,
155-62
Reconstruction Finance Corporation, 70
Second mortgage: causes and evils of, 4; elimination of, 12
Segregation, of assets, 35, 67, 124-25, 180
Slow assets, 251-52
Tennessee Valley Authority, 72
Thrift, encouragement of, by FSLA and by
FSLIG, 9-10
Wisconsin, decision of State Circuit Court concerning constitutionality of act authorizing
FSLA, 27
467
FEDERAL HOME LOAN BANK DISTRICTS
«
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•
BOUNDARIES OF FEDERAL HOME LOAN BANK DISTRICTS
FEDERAL HOME LOAN BANK CITIES.
U. S. GOVERNMENT PRINTING OFFICE: 1935
@FedFRASER