The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL
HOME
LOAN
BANK
Vol.
Washington, D. C.
10, No. 12
SEPTEMBER 1944
Home-Mortgage Debt Declines Again
N A T I O N A L HOUSING
AGENCY
JohB B. Blandford, Jr., Administrator
FEDERAL HOME LOAN
BANK ADMINISTRATION
John H. Fahey, Commissioner
FEDERAL HOME LOAN
BANK SYSTEM
FEDERAL SAVINGS AND LOAN
ASSOCIATIONS
FEDERAL SAVINGS AND LOAN
INSURANCE CORPORATION
Sixth District Members First to Gain Predominant
Interest in FHL Bank
survey of LiFe Insurance Company Investments
In Mortgages
British Building Societies Merge
321
324
325
328
REGULAR FEATURES
Home Front
320
Directory Changes of Member, Federal/ end Insured Institutions
324
War Bond Sales
329
Worth Repeating
331
Monthly Survey
333
TABLES
HOME OWNERS' LOAN
CORPORATION
UNITED STATES HOUSING
CORPORATION
New family-dwelling units
338-339
Building costs
339-340
Savings and loan lending
340-341
Mortgage recordings
341-342
Sales of U. S. war savings bonds
342
Savings in selected fincnciol institutions
342
Federal Home Loan Banks
342
Insured savings and loan associations
343
F H A activity
343
Quarterly tables
344
mm
Lumber priorities
or emergencies
Only real emergencies—like leaks in
t h e roof—will qualify home-owners for
lumber priorities, t h e W a r Production
Board has announced. Applicants for
preference ratings m u s t show t h a t
their dwellings would be unfit for use
unless repaired, or t h a t damage caused
by fire, flood, t o r n a d o , storms and so
on, has rendered t h e dwelling unfit for
continued occupancy. Broken joists
or risers, weakening of t h e framework,
separation of lateral supports from t h e
m a i n supports, were given as examples
of such damage. L u m b e r deterioration caused by wear will not be considered an emergency if t h e p a r t s will
function without repair for another
three m o n t h s at least.
Those desiring l u m b e r for nonemergency purposes m u s t t a k e a
chance on buying it without a rating.
Dealers h a v e been allotted small
quantities of lumber t o meet these
"essential" d e m a n d s .
Syracuse plans
with its citizens
Syracuse, New York, has an original
plan for bringing problems and postwar planning issues straight t o t h e
public. A radio program, "Syracuse
on T r i a l , " has been presented weekly
for five m o n t h s ; t h e sponsors, t h e
Syracuse-Onondaga Postw r ar Planning
Council, have chosen a novel m e t h o d
of airing t h e controversies. Both
sides of such subjects as housing, taxes,
sewTerage and other civic problems are
examined in a " c o u r t r o o m " discussion.
Public officials present their viewpoints before a judge and jury. T h e
program was chosen as t h e medium of
bringing public interest t o bear on
these problems after t h e more usual
methods like direct mail and public
meetings h a d proved ineffective.
Previously, a questionnaire survey,
"Be t h e M a y o r for a M i n u t e , " h a d
crystallized public opinion. I t emphasized t h a t Syracusians believed i n
post-war planning. Traffic and housing i m p r o v e m e n t s were rated as most
i m p o r t a n t , with city services, schools,
320
/T\
nor
flood control, playgrounds, and agriculture following in t h a t order. The
findings served as t h e basis for t h e
Planning Council's studies and proposals, but after its plans had been
drawn up, no way could be found t o
interest t h e citizenry in its conclusions.
T h e new m e t h o d of allowing local
authorities t o t h r e s h out their differing
opinions before t h e public a t t r a c t e d
instant attention. A survey t a k e n
during t h e program showed a listening
audience of about 20,000 in t h e city
alone—33.7 percent of all t h e radio
sets which wTere t u r n e d on. Newspaper publicity grewr enormously,
bringing t h e program more into t h e
forefront. Editorial discussions and
t h e printing of letters from Syracuse
citizens proved t h a t t h e issues kept
alive.
Although no definite blue prints
have been outlined for Syracuse's postwar future, t h e program has served its
purpose. Selected by Ohio State
University as t h e best in t h e public
discussion class, it has enlisted t h e
necessary popular support.
Modern design favored
by homemakers
A comprehensive market survey,
taken by McCalVs
magazine, has
found t h a t there is a definite d e m a n d
for modern design. A wealth of
specific d a t a was gleaned from t h e
replies submitted wrhich covered m a r ket trends for most item of livingroom and bedroom equipment.
Of t h e 13,549 women polled, 57.1
percent voted for a modern interior
design. Appro ximately one-half of
those polled planned to b u y or build
a h o m e ; of this group, 61.2 percent
chose modern. T h e vote wTent decisively for t h a t t y p e , except for
people planning t o spend more t h a n
$10,000 for a new home. Here, t r a ditional style won out.
Of those choosing a modern design,
most based their choice, in part, on
t h e fact t h a t these rooms are easier to
clean. This emphasizes t h e income
correlation. Almost all voters want
both fireplaces and large windows.
Sixty-four percent of t h e vote for
modern came from women under 36.
Traditional design won a majority
vote only in t h e over-60 age group.
The geographic breakdown, too, is
interesting. Where an u r b a n vote
prevailed—in t h e East, South Central
and Middle Atlantic regions—opinion
favored t h e traditional style. In
New England a n d t h e South, modern
interiors led by a small margin, while
t h e West showed a distinct preference
for this t y p e .
Public expects
miracle house
A survey, conducted by a New York
research bureau, covering middle class
families in nine major cities, whose
average income is about $3,000, finds
t h a t 45 percent of t h e m are ready t o
build a home or b u y one soon after t h e
war's end. However, more t h a n half
of these potential customers w a n t a
house complete with innovations like
air conditioning, electronic controls,
plastic plumbing, or movable w^alls
and partitions. And all t h i s for $52
monthly, with F H A insurance.
T h e N a t i o n a l Association of Home
Builders is alarmed b y this new t u r n
of events. I n an effort t o combat it,
t h e y are planning a publicity program
t o inform t h e public t h a t such things
are not necessary t o comfortable and
efficient housing
Exhibit of savings
and loan planning
A p e r m a n e n t display of ideas for
post-war planning has been opened in
Chicago b y t h e American Savings and
Loan News.
I n a u g u r a t e d in conjunction with t h e News' " C o n s t r u c t i o n "
Section, the exhibit includes tested
plans to interest mortgage loan officers,
publicity suggestions for t h e advertising men, and other varied items
which will prove of value.
T h e library of booklets a n d brochures is extensive. This new service
was p r o m p t e d by reports of m a n y
forward-looking savings a n d loan executives who m a k e it a practice to
mail p e r t i n e n t literature to shareholders.
Federal Home Loan Bank Review
HOME-MORTGAGE DEBT DECLINES AGAIN
A reduction
in the 1943 outstanding
debt on 1- to 4-family
homes resulted from the second year of wartime operation
lenders.
Heavy
loan prepayments
of new
lending
last year made the increased volume insufficient to add to the
balance
of mortgage
•
D U R I N G 1943, in spite of a volume of mortgage
lending comparable to that of the past several years,
the total home-mortgage debt last year showed its
second consecutive decline. An estimated loan balance of $19,512,000,000 at the end of 1943 was
$396,000,000, or 2 percent, below the total recorded
in 1942.
This situation is attributable to the accentuation
of trends which developed during the first year of
war. With home construction still rigidly restricted,
loans for that purpose which normally add substantially to the loan balance, were correspondingly curtailed last year. The increased over-all volume of
lending was composed chiefly of home-purchase loans.
In many cases these represented cancelation of previous mortgages and to that extent did not appear
as additions to the net mortgage debt. Also, the
substantial volume of refinancing loans written last
3^ear, unless re-cast for higher amounts, did not
increase the outstanding balance.
Heavy prepayments on loan accounts also contributed in great measure to rapid debt liquidation.
Lending institutions have continued to encourage
this practice, in many instance s waiving the penalty
provisions previously imposed on payments in advance of contract terms.
The reduction of the home-mortgage debt, however, is only one instance of the anti-inflationary use
of currently increased consumer income. According
to a recent study of the farm-mortgage debt, made
by the Bureau of Agricultural Economics, the same
heavy prepayment trend resulted in a decrease of
8 percent during Last year.
As a result of these factors, a comparison of the
1943 volume of new lending with the net change in
mortgage debt shows that the substantial volume of
new loans written ($3,183,000,000) was insufficient
to add a single dollar to the mortgage portfolio.
T h a t is, in 1943 for each $100 of new loans made,
$112 was received in repayments on outstanding debt
balances. I t will be seen from the accompanying
chart that 1942 was the first year in which such a
condition prevailed. Prior to that, for each $100
September
1944
and the character
nonfarm
of mortgage
holdings.
in new loans written there was a substantial increase
in the outstanding mortgage debt.
Distribution of Mortgages H e l d
The relative importance of the various types of
lenders in relation to the total outstanding debt on
1- to 4-family homes was not changed-last year by the
declines in mortgage balances experienced by all
classes of mortgagees, except life insurance companies: nor did their proportionate shares of total
holdings vary appreciably. Individuals and miscellaneous lenders continued to hold first place.
Among the remaining types of lenders, savings and
loan associations continued in a dominant position
followed by mutual savings banks, commercial
banks, life insurance companies and the Home
Owners' Loan Corporation.
The HOLC again accounted for a large portion of
the 1943 reduction in mortgage holdings, reporting a
drop of $229,000,000 during last year compared with
a net decline of $167,000,000 for other lenders. A
total of $1,338,000,000 was carried on the books of
this organization at the close of last year—15 percent less than in 1942. This amount represented
6.9 percent of the total home-mortgage debt last year
as against 7.9 percent in 1942 and 16.5 percent in
321
Estimated b a l a n c e of outstanding mortgage loans
on 1 - to 4 - f a m i l y nonfarm homes
1
[Millions of dollars]
Type of lender
I 1943
Savings and loan associations
Life insurance companies
Mutual savings banks
Commercial banks
Home Owners' Loan Corporation.
Individuals and others 2
Total
1942
$4, 554
2, 410
2,660
2,450
1,338
6,100
r
19,512
r
1941
1940
1939
$4,556 $4,552 $4, 084 $3, 758
2,255 1,976
1,758
1,490
2,700 2,730 2,700 2,680
2,480 2,470 2,095 1,810
1, 777 1,956
1,567
2,038
6,350 6, 590 6,510
6,440
1938
53, 555
1,320
2,670
1,600
2,169
6,332
19, 908 20, 095 19,103 18, 216 17, 646
r
1
Revised.
For a detailed description of the source of these estimates see FHLB
REVIEW,
November 1939, p. 51; September 1940, p. 410; September 1941, p. 412.
2
Includes fiduciaries, trust departments of commercial banks, real-estate bond
companies, title and mortgage companies, philanthropic and educational institutions, fraternal organizations, construction companies, RFC Mortgage Company, etc.
1935, the last year preceding the commencement of
liquidation of the Corporation.
Again, as in 1942, the miscellaneous group of
lenders—" individuals and others"—showed the only
other substantial drop in mortgage holdings. Their
balance by the end of 1943 had declined by 4 percent
(as it had in 1942) and stood at $6,100,000,000,
according to the best available estimates. Despite
this reduction in balance, these lenders continued to
account for 31.3 percent of the total mortgage debt,
only slightly less than the 32 percent reported in
1942.
Savings and loan associations, with a decrease of
0.04 percent showed the least change during last
year and accounted for 23.3 percent of the outstanding debt on the basis of a dollar volume of $4,554,000,000. In 1942 their holdings of $4,556,000,000
represented 22.9 percent of the total.
Other classes of mortgagees showing declines during
1943—mutual savings banks and commercial banks—
reported 1.5 percent and 1.2 percent less, respectively. The former institutions, with an outstanding volume of $2,660,000,000 in 1943, accounted for
13.6 percent of the outstanding home-mortgage
debt, while the balance reported by the latter
group—$2,450,000,000—represented 12.6 percent of
the total. Both of these types of lenders accounted
for approximately the same proportions of the 1942
total of mortgages held on 1- to 4-family non-farm
homes.
Life insurance companies alone finished the year
with an increased balance of loans outstanding,
reporting a 7-percent gain compared to an advance
of 14 percent in 1942.* Their share of total holdi See "Survey of Life Insurance Company Investments in Mortgages," page
325 of this issue.
322
ings increased from 11.3 percent in 1942 to 12.3
percent last year, the dollar amount increasing from
$2,255,000,000 to $2,410,000,000 during the same
period. This resulted from the fact that these
organizations have been the largest purchasers of
loans originated by the various other types of mortgagees.
PERCENTAGE DISTRIBUTION OF EST. OUTSTANDING
MORTGAGE LOANS ON PRIVATE NONFARM
l - T O 4-FAMILY HOMES, BY TYPE OF LENDER
AS OF DEC. 31 EACH YEAR, 1932-1943
INDIVIDUALS AND OTHERS
iqp
•I pisHi •
^^w
mm
• K llii lili
^fl
INSURANCE COMPANIES
!! 5! >fc
' ¥ >—,
«|lf
m
if
»
•I
ill
1
H.O L.C.
1
N e w Lending Operations
Although wartime restrictions on new construction
kept down the volume of loans made for that purpose,
other types of home-mortgage lending activity were
sufficient to result in a 1-percent increase in 1943 over
1942. The total volume of new lending (excluding
sales contracts) last year was $3,183,000,000 compared with $3,155,000,000 in 1942. Changes reflected in the participation by the various classes
of lenders in the total volume of business were not
sufficient to affect their relative positions.
Savings and loan associations were the leading
lenders with respect to annual volume of money
loaned, dollar increase over 1942 and the proportion
of total lending done during 1943. Their aggregate
loans last year amounted to $1,184,000,000, an increase of $133,000,000, or 13 percent, during the year.
They accounted for 37.2 percent of all 1943 lending.
In 1942, these associations showed a total of
Federal Home Loan Bank Review
$1,051,000,000 in new lending- -33.3 percent of the
yearly aggregate.
Next in line with respect to the proportion of total
lending was the miscellaneous group—'"individuals
and others''—which accounted for 32.6 percent of the
volume of loans made, The $1,038,000,000 estimated
for this group was $84,000,000 (8.8 percent) more than
in 1942. The HOLC, the only other type of mortgagee to record an increase, showed $14,000,000, or
35 percent, more loans made than in 1942. This
gain was the result of the Corporation's accelerated
sales of real estate and the taking of purchase money
mortgages in return. Despite this increase, HOLC
lending represented only 1.7 percent of the year's
activity compared Math 1.3 percent in 1942.
Life insurance companies recorded the greatest
decline in home-mortgage lending in 1943. This
recession, in comparison with the increased mortgage
holdings of these organizations, is due to the fact
that new lending operations do not reflect mortgage
purchases. The volume of loans written last year
decreased $102,000,000 (27.3percent) to $272,000,000
thus dropping their proportion of total lending volume from 11.9 percent in 1942 to 8.5 perceit last
year. This is in sharp contrast to the 1942 picture
when these institutions were the only class to show
any increase over 1941.
Commercial banks made home-mortgage loans in
the amount of $515,000,000 during 1943—$91,000,000
less than in the previous year. By reason of this
15-percent drop, their share of total business declined
to 16.2 from 19.2 percent in 1942. Mutual savings
banks recorded a somewhat smaller decline last year.
The $120,000,000 in lending volume was $10,000,000
(7.7 percent) less than during 1942, representing a
drop from 4.1 percent of total lending activity in
1942 to 3.8 percent last year.
Estimated amounts loaned on 1-to 4-family nonfarm dwellings, 1943 and 1942
[Dollar a m o u n t s are s h o w n in millions
Loans
made
during
1943
T y p e of lender
Savings a n d loan associations
I n d i v i d u a l s a n d others.. _
C o m m e r c i a l b a n k s a n d their t r u s t
departments
Life insurance companies
M u t u a l savings b a n k s
H o m e O w n e r s ' L o a n Corporation
Total
r
Revised.
September 1944
.
Loans
made
during
1942
Dollar
change
from
1942
Percent
change
from
1942
$1,184
1,038
$1.05L
'954
+$133
+84
+12.7
+8.8
515
272
120
54
606
374
130
40
-91
-102
-10
+14
— 15 0
-27.3
-7.7
+35.0
3,183
* 3,155
+28
+0.9
F H A Activity Declines
Last year, for the first time, the annual volume of
FHA mortgage insurance written showed a decline—•
a drop of $447,000,000 in Title I I loans more than
offsetting a $251,000,000 increase in Title VI activity.
This decrease reflects the fact that 1943 was the first
full calendar year in which no loans on new construction were insured under Title II provisions of the
National Housing Act. I t will be recalled that this
activity was confined to loans on existing properties
in the spring of 1942 and that the insurance of mortgages on new homes was channeled into the warhousing section, Title VI.
The net decline, which was proportionately greater
than that for all new residential lending, produced a
corresponding decrease in the ratio of insured loans
to the total volume of lending. Of the estimated
$3,183,000,000 in home mortgages written, $762,000,000, or 23.9 percent, represented FHA-insured lending. In 1942, these loans amounted to $958,000,000,
or 30.4 percent.
According to FHA records, all classes of lenders,
except savings and loan associations, shared in the
decline in last year's insured-lending activity.
Although insurance companies and commercial banks
made a smaller volume of uninsured loans in 1943
than in 1942, the ratio of such loans to total homemortgage loans made increased for each type of
mortgagee. The proportion of insured lending to
total lending by savings and loan associations continued far below that of other types of lenders.
Although the dollar amount of FHA small-home
mortgages written by these institutions increased
slightly, a relatively smaller portion of their business—7.9 percent last year as against 8.8 percent
the year before—was represented by this type of
loan.
Insured Debt Outstanding
At the same time that this general decline in
lending volume was in progress, the balance of debt
outstanding represented by FHA loans increased.
From a 1942 total of $3,666,000,000, or 18.4 percent
of the total loan portfolio, premium-paying insured
mortgages increased last year to $3,998,000,000—
20.5 percent of the outstanding balance. This is
undoubtedly accounted for in part by the fact that
insured mortgages tend to be made for a longer
term and that many are relatively young. That is
to say, in the case of the many newer loans, a comparatively smaller proportion of monthly payments
323
is applied to principal reduction and a larger amount
is charged to interest.
The proportion of insured mortgages to total
mortgage holdings increased for all types of lenders
except -the miscellaneous group. Likewise, the
estimated unpaid balance of insured loans rose for
each type with the exception of the same group.
Life insurance companies -1 showed the greatest
gain (20.3 percent) followed by mutual savings
banks (19.8 percent), and savings and loan associations with a 15.8-percent increase. Holdings of
commercial banks rose 7.2 percent while individuals
and others declined an estimated 21.1 percent.
No published data are available on the institutional distribution of Title I, Class 3, loans outstanding.
Estimated holdings of F H A home mortgages,
by type of institution, 1943 and 1942
[Titles II and VI, premium-raying; dollar amounts in millions]
Amount
1943
T y p e of i n s t i t u t i o n
P e r c e n t of total
home-mortgage
portfolio
1943
Commercial banks
_________
Insurance companiesl _
S a v i n g s a n d l o a n associations __
M u t u a l savings b a n k s
Others.._
Total
$1. 737
1. 282
322
302
355
__
3,998 1
1942
70.9
53.2
7.1
11.4
5.8
65.3
47.3
6.1
9.3
7.1
20.5
18.4
1
As reported by FHA, insurance company figures include a small percentage
for insurance companies other than "life".
* * % DIRECTORY
CHANGES
w
JULY 16-AUGUST
15,
1944
Key to changes
*Admission to Membership in Bank System
**Termination of Membership in Bank System
#Federal Charter Granted
##Cancelation of Federal Charter
d Insurance Certificate Issued
03 Insurance Certificate Canceled
DISTRICT N O . 3
PENNSYLVANIA:
Pittsburgh:
"""Thirteenth Ward Premium Building and Loan Association, 1729 Lawrie
Street, N. S.
DISTRICT No. 4
ALABAMA:
Mobile:
##00 Security Federal Savings and Loan Association of Mobile, 214 St.
Francis Street.
NORTH CAROLINA:
Greensboro:
**Pilot Life Insurance Company.
324
Sixth District Members First to Gain
Predominant Interest in F H L Bank
•
M E M B E R savings and loan associations now
own more than half of the capital stock of the
F H L Bank of Indianapolis. As of last July 8, stock
in the Bank owned by the Government was $6,577,400, in comparison with the $6,595,200 share of the
member institutions. Of the 12 regional Banks,
Indianapolis is the first to have Government holdings
exceeded by the stock holdings of its members.
"The significance of this announcement is that the
Indianapolis Bank, serving the reserve credit needs
of 220 member savings and loan associations in
Indiana and Michigan, is now on the way to complete ownership by its members and the retirement
of the original capital put up by the national Government/' stated Fred T. Greene, president of the
Bank.
With this achievement, Indianapolis has reached
the goal set when the Bank System was established
in 1932. The law prescribes that at such time as
p a i d i n subscriptions by members are equivalent to
the Government investment in a Federal Home
Loan Bank, one-half of all capital paid in thereafter
shall be applied to the retirement of the Government shares outstanding.
When the System was created, the Government
invested $124,741,000 in the capital of the 12
regional Banks; and it was provided that members
hold stock in their District Bank equal to at least 1
percent of their net home mortgages. As member
assets have increased, * their growth has been translated into larger holdings of Bank stock. These
stock purchases have also risen due to the investment of the surplus of member institutions above
legal requirements.
The resources and reserves of the Indianapolis
Bank have grown steadily, Mr. Greene asserts; on
June 30, assets totaled $26,863,000, and reserves and
undivided profits came to $1,144,000. Dividends paid
by the Bank since its organization have amounted to
$1,608,419 of which $1,101,178 has gone to the Government and $507,241 to the members.
Member institutions, receiving a record flow of
investment funds from the public during the past few
years, have reduced their borrowings from the Bank.
Accordingly, outstanding advances of the Indianapolis Bank have declined from their peak of $13,800,000 at the beginning of 1942 to $10,988,000 in July
of this year.
Federal Home Loan Bank Review
the average amount of new mortgages purchased
during the year and from the repayment of loan balances outstanding.
LIFE
1
Data restricted to small-home loans under Title II, Section 203, and Title
VI, Section 603.
LIFE
INSURANCE
COMPANIES
NEW MORTGAGE LOANS MADE AND PURCHASED
MILLIONS
$600
BY TYPE OF PROPERTY
/ TO 4 FAMIDf
V
500
400
300
COM. UERC/AL
K
> "
200
,5 OR MORE FAMILY
Lsc
100
t,«
N
> - ^
F/ \RMJ
'*"
0
35
19
1936
326
1937
1938
1939
1940
1941
1942
19'»3
DIVISION OF OPERATING STATISTICS
1
FEDERAL HOME LOAN BANK ADMINISTRATION
COMPANIES
NEW MORTGAGE LOANS MADE AND PURCHASED
0 N E
MILLIONS
Emphasis on F H A
Last year, for the first time, holdings of insured
mortgages on 1- to 4-family homes by life insurance
companies exceeded uninsured loan balances outstanding in this particular category. Insured loans,
showing a 19-percent rise in 1943, accounted for 51
percent of the total compared with 46 percent on
December 31, 1942, and only 14 percent at the close
of 1938. Insured mortgages seem especially well
suited to the widespread operations of life insurance
companies, and the extensive use of this type of loan
has played an important part in developing the
trend toward a preponderance of home loans in the
portfolios of these institutions. This is substantiated by reports of the FHA which indicate that as
of the end of 1943, insurance companies of all kinds
held 31.3 percent, or the second largest share of
Title I I loans and 35.3 percent, or the largest portion,
of the loans insured under Title VI. 1 The^unpaid
balance of insured loans on 1- to 4-family homes in
the portfolios of life insurance companies amounted
INSURANCE
T 0
F0UR
FAMILY NONFARM HOMES
$ 500
400
300
'\NEW
MORTGAGE
LOANS MADE
200
'
/
100
T
1
i
/\MORTGAGES
/
PURCHASED
' 1 J HI
0
1935
1936
1937
1938
1939
1940
1941
1942
1943
DIVISION OF OPERATING STATISTICS
FEDERAL HOME LOAN BANK ADMINISTRATION
to an estimated $1,230,000,000 at the end of 1943,
accounting for about 94 percent of their holdings of
insured mortgages on all types of properties.
Ratio to Assets
The ratio of mortgages on 1- to 4-family properties
to total assets declined during 1943 from 6.5 to 6.4
percent, as assets showed a more rapid rate of gain
(about 8 percent) than did mortgages of the aforementioned type. However, there was a much more
pronounced drop in the ratio of the total mortgage
portfolio to all assets, principally due to the declines
in farm and commercial real-estate loans outstanding.
For a number of years these investments had maintained a remarkably constant relationship at between
19 and 20 percent of total assets. During 1943,
though, this ratio fell off to 17.9 percent from 19.3
at the close of the preceding year. This obviously
reflects wartime restrictions on the volume of all
types of building. However, the heavy proportionate share of Title VI loans currently held by these
institutions certainly indicates no loss of interest in
the acquisition of additional loans on small homes.
Lending in 1943
The gross volume of mortgage loans added to the
portfolios of life insurance companies declined for the
second consecutive year. The $899,000,000 of new
Federal Home Loan Bank Review
SURVEY OF LIFE INSURANCE COMPANY
INVESTMENTS IN MORTGAGES
The annual study of mortgage investments by life insurance companies
discloses a continued emphasis on small-home loans. During 1943,
mortgages purchased by these institutions showed a marked increase
and for the first time more than half of all small-home loans made
or purchased were insured under the Federal Housing Administration.
•
T H E total volume of mortgages in the portfolios
of life insurance companies was virtually unchanged in 1"943, according to the annual survey
conducted by the Division of Operating Statistics
of the Federal Home Loan Bank Administration.
The fractional decline of 0.2 percent observed in
these holdings followed six years of steady growth
(1937 through 1942) as the combined mortgage
portfolio receded to $6,748,000,000 at the end of
last December. This slight drop reflects decreases
in the holdings of farm and commercial mortgages
which more than offset gains in the unpaid balance
of loans on nonfarm dwellings. Correspondingly,
the trend toward higher proportionate holdings of
nonfarm residential mortgages, which has been
consistently noticeable since the late thirties, continued. At the end of last vear these holdings,
including those on multi-family structures, constituted about 57 percent of all mortgages owned
compared with 54 percent at the end of 1942 and
41 percent as of December 31, 1938. New mortgage lending on residential properties, although less
than in the previous year, was sufficient to exceed
the amount of loan balances liquidated. Consequently, this segment of their combined portfolio
showed an increase of approximately 6 percent during the year, amounting to $3,834,000,000 as of
December 31.
For the past seven years, a steady rise has been
noticed in the dollar volume of mortgages on 1- to
4-family nonfarm homes held by these institutions.
The increase over this period brings them to almost
194 percent of the 1936 level. At the end of last
year, the unpaid balances of loans on this type of
property totaled about $2,410,000,000, showing a
gain of 7 percent over holdings as of December 31,
1942, and representing 36 percent of the total mortgage portfolio.
For the second consecutive year, life insurance
companies were the only type of lender to register
a substantial gain in mortgage holdings on 1- to
Szptzmbzr 1944
4-family homes. As a result, the proportion of
total mortgage debt on 1- to 4-family nonfarm homes
held by these concerns rose from 11 percent of the
national total to 12 percent. However, this did not
prove sufficient to alter their relative position, as life
insurance companies stood fifth by type of mortgagee
in proportion to their holdings, being led by individuals and others with 31 percent, savings and loan associations with 23 percent, mutual savings banks
which held 14 percent, and commercial banks which
accounted for 13 percent of the total small-home
loans outstanding.
The average size of loans on 1- to 4-family nonfarm
homes in the life insurance portfolio declined during
1943 to $4,045 from $4,114, a drop of about 2 percent.
This resulted primarily from a 7-percent decline in
325
real-estate loans of all kinds made and purchased in
1943 represented a 12-percent drop from the total for
1942 and was 19 percent less than the post-depression
high of $1,111,000,000 reached in 1941. However,
despite restrictions on building which have reduced
the outlets for mortgage funds, these institutions
increased their volume of mortgages purchased above
the figure reported for the year before. Of the aggregate amount of new loans acquired, $677,000,000
was originated by the insurance companies or their
correspondents and $222,000,000 was purchased
from other originators. Compared with the previous
year, this was an increase of 9 percent in purchases as
against a decrease of 15 percent in new loans made in
their own name, and a decline of 25 percent in new
loans made in the names of correspondents. The
effect of these changes has been an increase in the
proportion of purchases to total new mortgage
investments from 20 percent in 1942 to 25 percent
in 1943.
For three consecutive years mortgages on 1- to
4-family homes have constituted more than half of
all new investments in real-estate loans, However,
the $469,000,000 of these loans, amounting to 52
percent of the total reported in 1943, represented a
decline in proportion from the 55 percent shown the
year before. This also reflects a decrease of 16 percent in dollar volume from 1942. Loans on multifamily properties represented 14 percent of all
mortgages added to the portfolios last year, while 19
percent of the new loans were on commercial properties and 16 percent were farm mortgages.
The volume of mortgages acquired during the year
(originations and purchases) showed decreases for
each group, with the exception of farm loans which
registered a gain of 11 percent over the total loans of
this type acquired by life insurance companies in
1942. To some extent this gain may reflect the
increased turnover in farm properties which has been
diagnosed by many as an incipient flight to equity
as a hedge against inflation. However, in considering this possibility, it should be recalled that over the
11 years covered by the surveys of the Division of
Operating Statistics, 1942 was the only year in which
the volume of farm loans acquired registered a
decline. Perhaps the most significant feature of the
volume of new farm loans added to the portfolio in
1943 is the relatively abrupt increase to 15.7 percent
of all acquisitions from 12.5 percent in 1942.
How have these institutions acquired new loans?
As mentioned above, life insurance companies have
been replenishing their portfolios more and more
September 1944
606085-14
through the purchase of loans from other originators.
The chart (top of page 326) graphically illustrates
the growing importance of purchases as a source of
new mortgages on 1- to 4-family properties. Except
for a minor reversal in 1942, the amount of these
mortgages purchased has increased each year, from
less than $10,000,000 in 1935 to nearly $200,000,000
in 1943. The heavy volume of purchases by life
insurance companies has been greatly facilitated by
the utilization of FHA mortgage insurance. This is
borne out by records of the FHA which indicate that
during last year insurance companies of all kinds
accounted for the greatest proportion of purchases
of both Title I I and Title VI loans, 44.9 percent and
43.7 percent, respectively.
Of the $469,000,000 in new mortgages on nonfarm
homes acquired during 1943, $197,000,000, or 42
percent, were purchased by the insurance companies
as compared with 1942 when only 33 percent were
purchased, and 67 percent were originated by insurance companies or their correspondents.
Owned Real Estate
Life insurance companies took full advantage of
the favorable market conditions during 1943 by
further reducing their holdings of acquired prop(Continued on p. 337)
LIFE
INSURANCE
COMPANIES
REAL ESTATE OWNED AT END OF YEAR
MILLIONS
BY
TYPE
OF
PROPERTY
$700
!
%4
,•*
600
/
-..—.. •••«..
s
*
fFARh f
*>
%
500
\
kV ,
0OMML-RCIAL
^
f
400
\
\
\
300
^
J^
200
s
V
N
TO 4 FAMILY
^
.
M: 5 OR MORE
^ * * C I
FAMILY
%i
/
f/
\
\
A
\
100
I S
0
1933
1934
1935
1936
1937
1938 1939 1940 1941 1942 19 43
DIVISION OF OPERATING STATISTICS
1
FEDERAL HOME LOAN BANK ADMINISTRATION
327
2
BRITISH BUILDING SOCIETIES MERGE
•
A process of amalgamation has been evident
among building societies in Great Britain for
the past few years. The October 1943 R E V I E W
reported the merger of the Abbey Road and National
Building Societies (two of the six leading organizations
of this type in England) to form the Abbey National.
The trend toward larger operating units continues
with proposals for the combination of the Leeds
Permanent and the Woolwich Equitable, with
prospects for the inclusion of the Liverpool Investment and the Dunfermline Building Societies. This
single unit would have assets of £86 million ($344
million1).
The Leeds Permanent and the Woolwich Societies
were the third and fourth largest in Britain. The
new British Building Society, the proposed title
for the combination of the four, will be the second
in respect to size, exceeded only by the Halifax
Building Society, with £129 million in assets.
" T h e Leeds-Woolwich-Liverpool-Dunfermline project, " says the Building Societies' Gazette, "would be
the largest transaction of its kind in the history of
the movement." If arrangements are on schedule,
the new organization will begin operations early in
October. At that time, the list of Britain's leading
institutions of this kind will be:
Building Society
Halifax
British
Abbey National
Co-operative Permanent
Leicester Permanent
Assets in millions
£129
86
82
35
17
$516
344
328
140
The announcement of the merger stated that " the
combination of interests of the North and South will
give the new Society the advantages of a nation-wide
field of activity and will enable it to make an important contribution to the solution of the problems
of post-war housing. The British Building Society
will maintain local traditions and extend its influence
by means of existing Branch Offices and by Local
Boards."
The president of the Leeds Permanent, Mr. Ellis
Thompson, commented that the amalgamation was
intended to help the country with post-war housing
problems, not only in the field of selling but that of
renting. The combined resources of the new organization will probably enable them to do this
better and more economically.
1
When the merger is completed the "big three"
will control approximately 40 percent of all capital
invested in building societies.
According to the Memorandum of the Leeds
Permanent Society, signed on behalf of the Board
of Directors by Sir Charles Davies, general manager,
"one of the most urgent tasks which will face the
country on the conclusion of hostilities will be the
provision of houses of approved standard and design.
Building societies will undoubtedly be called upon
to make a substantial contribution to the solution
of this vital problem, and the directors . . . are
anxious that, within the sphere of the building society
movement, it (the new society) should take a still
more prominent place in the post-war period . . ."
Advantages and Comments
The directors of the Leeds Permanent list six
important advantages of the merger:
Mortgage investments will be spread over a
wider field, making for added security. Combining the special knowledge of each society will
increase efficiency.
As inflow of investments and the demand for
mortgage loans varies, there is a benefit in a
society which can take advantage of differing
local conditions.
By pooling resources the society will be favorably
placed to meet post-war financial demands.
The financial strength and resources of the new
unit will augment its influence, enable it to keep
high standards and safeguard the interests of
borrowing members as well as of the shareholders. The combination of widely spread
branch offices will prove of great help.
Economies in administration will result from the
adoption of a common policy of operation.
The British press compared this merger with the
recent one of the Abbey National, and went on to
remark about the move toward larger units. For
example, the Daily Express was inclined to think
that this union was the possible beginning of a race
for leadership within the building-society movement.
The News Chronicle was of the opinion that it is
time that integration begin to " permeate the lower
ranges . . . for it is there that the need for consolidation and for the economies that go with it is
(Continued on p. 337)
1 £ = $4.
328
Federal Home Loan Bank Review
HONOR ROLL OF THE FIFTH WAR LOAN
•
W I T H 2,735 institutions reporting, the membership of the Federal Home Loan Bank System
reached a record total for combined purchases and
sales of Government securities during the Fifth War
Loan, $538,866,000, or approximately 30 percent
more than the previous peak reported during the
Third Drive last winter. This raised the cumulative
total of sales and purchases since May 1941, to
$2,510,000,000. Thus, more than 21 percent of this
cumulative figure was reported during the period of
the Fifth Drive.
Total sales and purchases during this campaign
amounted to about 9 percent of all assets of reporting
institutions, only 1 percent less than the requirements for Honor Roll qualification for the Drive. In
a special letter to the Governor of the Bank System,
Mr. Ted Gamble, National Director of the War
Finance Division, expressed the appreciation of the
Treasury Department for the part that all members
acting as issuing agents have played in making possible the success of the Fifth War Loan.
I t is obvious that if the nearly 500 additional qualified members and another 500 which are not qualified
to issue war bonds had filed reports of their activities
with the regional Banks, the combined figure for the
Fifth War Loan drive might have been reported
conservatively at $561,000,000.
The high peak which members achieved during
June and July was primarily due to an extraordinarily large volume of purchases which attained a
record total of $380,245,000, or more than 43 percent
above the previous peak reported during the Third
War Loan. This rise in purchases was accompanied
by a gain in sales to other investors, which reached
new heights and superseded the former record volume of sales recorded in the campaign last winter.
Sales of war bonds and stamps by members during
the Fifth Drive amounted to $158,621,000, standingmore than 7 percent higher than the former peak.
Reporting institutions indicated a combined portfolio of Government securities in the amount of
$1,378,660,000, or 23 percent of assets. As compared with the 13.3 percent reported by all members
at the end of 1943 this indicates phenomenal growth
in this segment of the balance sheet.
for the largest portion, followed by New York with
$41,286,000, while California in third place reported
$39,691,000. Texas was first in sales which amounted
to $17,575,000, while Ohio ran a close second with an
aggregate of $17,207,000. New York placed third,
sales in this state totaling $14,514,000.
The highest volume of purchases of Government
securities was reported in Ohio where it reached
$52,452,000. Large purchases by Massachusetts
members, $36,246,000, put that state in second place
and raised the combined total of sales and purchases
there to the fourth highest in the country. California had the third largest volume of purchases,
accounting for $26,861,000.
The 220 associations listed below reported sales of
war bonds a r d stamps during the months of June
and July in excess of 10 percent of their reported
assets. This is the highest standard for qualification yet established, the quota for the Fourth War
Loan having been set at 7}i percent. In accordance
with customary practice, qualifications will be lowered to monthly sales equal to 1 percent of assets for
the August Honor Roll which will appear in the next
issue of the R E V I E W .
NO. 1—BOSTON
First Federal Savings and Loan Association, Providence, R. I.
Windsor Locks Building and Loan Association, Windsor Locks, Conn.
NO. 2—NEW YORK
Bankers Federal Savings and Loan Association, New York, N. Y.
Berkeley Savings and Loan Association, Newark, N. J.
Bronx Federal Savings and Loan Association, Bronx, N. Y.
Bronxville Federal Savings and Loan Association, Bronxville, N. Y.
Center Savings and Loan Association, Clifton, N. J.
First Federal Savings and Loan Association, New York, N. Y.
Haddon Heights Victory Savings and Loan Association, Haddon ;Heights,lN. J.
Activities by States
A state-by-state breakdown shows that Ohio, with
total sales and purchases of $69,659,000, accounted
September 1944
329
To the Members of the Bank System:
The membership of the Federal H o m e Loan Bank
System cannot obtain proper credit for its efforts in the
Government bond drive unless you report your sales
a n d purchases regularly each m o n t h .
Please forward your monthly report of sales a n d
purchases of G o v e r n m e n t bonds a n d war stamps to
your District B a n k p r o m p t l y .
Long Beach Federal Savings and Loan Association, Long Beach, N. Y.
Maywood Savings and Loan Association, Maywood, N. J.
Oneida Federal Savings and Loan Association, Oneida, N. Y.
South Brooklyn Savings and Loan Association, Brooklyn, N. Y.
White Plains Federal Savings and Loan Association, White Plains, N. Y.
NO. 3—PITTSBURGH
Brentwood Federal Savings and Loan Association, Brentwood, Pa.
Cambria County Federal Savings and Loan Association, Cresson, Pa.
First Federal Savings and Loan Association, Logan, W. Va.
First Federal Savings and Loan Association, Wilkes-Barre, Pa.
Friendly City Federal Savings and Loan Association, Johnstown, Pa.
Matoaca Building and Loan Association, Philadelphia, Pa.
Mid-City Federal Savings and Loan Association, Philadelphia, Pa.
Polonia Building and Loan Association, Pittsburgh, Pa.
Roxborough-Manayunk Federal Savings and Loan Association, Philadelphia,
Pa.
St. Edmond's Building and Loan Association, Philadelphia, Pa.
United Federal Savings and Loan Association, Morgantown, W. Va.
West View Building and Loan Association, West View, Pa.
NO. 4—WINSTON-SALEM
Atlantic Federal Savings and Loan Association, Baltimore, Md.
Bartow Fedrral Savings and Loan Association, Bartow, Fla.
Baxley Federal Savings and Loan Association, Baxley, Ga.
Bohemian American Building Association, Baltimore, Md.
Brevard Federal Savings and Loan Association, Brevard, N. C.
Canton Building and Loan Association, Canton, N. C.
Community Federal Savings and Loan Association, Winnsboro, S. C.
Donalsonville Federal Savings and Loan Association, Donalsonville, Ga.
Douglas Federal Savings and Loan Association, Douglas, Ga.
First Federal Savings and Loan Association, Andalusia, Ala.
First Federal Savings and Loan Association, Bainbridge, Ga.
First Federal Savings and Loan Association, Bessemer, Ala.
First Federal Savings and Loan Association, Cordele, Ga.
First Federal Savings and Loan Association, Decatur, Ala.
First Federal Savings and I oan Association, Hopewell, Va.
First Federal Savings and Loan Association, Lakeland, Fla.
First Federal Savings and 1 oan Association, Montgomery, Ala.
First Federal Savings and Loan Association, Panama City, Fla.
First Federal Savings and Loan Association, South Boston, Va.
First Federal Savings and Loan Association, Sumter, S. C.
First Federal Savings and Loan Association, Waycross, Ga.
Fitzgerald Federal Savings and Loan Association, Fitzgerald, Ga.
Fort Hill Federal Savings and Loan Association, Clemson, S. C.
Gate City Building and Loan Association, Greensboro, N. C.
Hamlet Building and Loan Association, Hamlet, N. C.
Home Building and Loan Association, Easley, S. C.
Home Federal Savings and Loan Association, Fayetteville, N. C.
Jefferson Federal Savings and Loan Association, Birmingham, Ala.
Lake City Federal Savings and Loan Association, Lake City, Fla.
Lake Worth Federal Savings and Loan Association, Lake Worth, Fla.
Lexington County Building and Loan Association, West Columbia, S. C.
Lithuanian Federal Savings and Loan Association, Baltimore, Md.
Mechanics Federal Savings and Loan Association, Rock Hill, S. C.
Miami Beach Federal Savings and Loan Association, Miami Beach, Fla.
Palatka Federal Savings and Loan Association, Palatka, Fla.
Piedmont Building and Loan Association, High Point, N. C.
Stephens Federal Savings and Loan Association, Toccoa, Ga.
Tifton Federal Savings and Loan Association, Tifton, Ga.
Union Federal Savings and Loan Association, Baltimore, Md.
Vermont Federal Savings and Loan Association, Baltimore, Md.
Wyman Park Federal Savings and Loan Association, Baltimore, Md.
NO. 5 - C I N C I N N A T I
Athens Federal Savings and Loan Association, Athens, Tenn.
Citizens Federal Savings and Loan Association, Covington, Ky.
Citizens Federal Savings and Loan Association, Dayton, Ohio
Cookeville Federal Savings and Loan Association, Cookeville, Tenn.
First Federal Savings and Loan Association, Bucyrus, Ohio
First Federal Savings and Loan Association, Canton, Ohio
First Federal Savings and Loan Association, Greenville, Tenn.
First Federal Savings and Loan Association, Hopkinsville, Ky.
First Federal Savings and Loan Association, Lexington, Ky.
First Federal Savings and Loan Association, Maryville, Tenn.
First Federal Savings and Loan Association, Pineville, Ky.
First Federal Savings and Loan Association, Russellville, Ky.
Fulton Building and Loan Association, Fulton, Ky.
Hancock Savings and Loan Company, Findlay, Ohio
Hickman Federal Savings and Loan Association, Hickman, Ky.
Home Federal Savings and Loan Association, Cincinnati, Ohio
330
Home Loan and Savings Company, Coshocton, Ohio
Indian Village Federal Savings and Loan Association, Gnadenhiitten. Ohio
Lin wood Savings and Loan Company, Cincinnati, Ohio
Louisville Home Federal Savings and Loan Association, Louisville, Ky.
McKinley Federal Savings and Loan Association, Niles, Ohio
Newport Federal Savings and Loan Association, Newport, Tenn.
Provident Building and Loan Association, Cleveland, Ohio
Rockwood Federal Savings and Loan Association, Rockwood, Tenn.
San Marco Building and Loan Association, Cincinnati, Ohio
Third Equitable Building and Loan Company, Cadiz, Ohio
Tri-County Savings and Loan Company, Galion, Ohio
Versailles Building and Loan Company, Versailles, Ohio
Wm. H. Evans Building and Loan Association, Akron, Ohio
NO. 6 - I N D I A N A P O L I S
Capital Savings and Loan Company, Lansing, Mich.
Detroit Federal Savings and Loan Association, Detriot, Mich.
First Federal Savings and Loan Association, Detroit, Mich.
First Federal Savings and Loan Association, Gary, Ind.
First Federal Savings and Loan Association, Jefferson ville, Ind.
Griffith Federal Savings and Loan Association, Griffith, Ind.
Iron Savings and Loan Association, Iron River, Mich.
Logansport Building and Loan Association, Logansport, Ind.
Loogootee Federal Savings and Loan Association, Loogootee, Mich.
Midland Federal Savings and Loan Association, Midland Mich.
Monon Building, Loan and Savings Association, Monon, Ind.
Muncie Federal Savings and Loan Association, Muncie, Ind.
Ottawa County Building and Loan Association, Holland, Mich.
Peoples Federal Savings and Loan Association, Royal Oak, Mich.
Standard Savings and Loan Association, Detroit, Mich.
Three Rivers Building and Loan Association, Three Rivers, Mich.
Union Federal Savings and Loan Association, Evansville, Ind.
Wabash Federal Savings and Loan Association, Terre Haute, Ind.
Warsaw Building and Loan Association, Warsaw, Ind.
NO.
7—CHICAGO
Abraham Lincoln Savings and Loan Association, Chicago, 111.
Auburn Building and Loan Association, Auburn, 111.
Caseyville Building Association, Caseyville, 111.
Central Federal Savings and Loan Association, Milwaukee, Wis.
Damen Savings and Loan Association, Chicago, 111.
First Federal Savings and Loan Association, Barrington, 111.
Haller Savings and Loan Association, Chicago, 111.
Homewood Building and Loan Association, Homewood, 111.
Jugoslav Savings and Loan Association, Chicago, 111.
Libertyville Federal Savings and Loan Association, Libertyville, 111.
Lombard Building and Loan Association of DuPage County, Lombard, 111.
Morrisonville Building and Loan Association, Morrison ville, 111.
Mt. Vernon Loan and Building Association, Mt. Vernon, 111.
Naperville Building and Loan Association, Naperville, 111.
National Savings and Loan Association, Chicago, 111.
Peoples Federal Savings and Loan Association, Peoria, 111.
Richland Center Federal Savings and Loan Association, Richland Center, Wis.
Standard Building and Loan Association, Wood River, 111.
Uptown Federal Savings and Loan Association, Chicago, 111.
West Highland Savings and Loan Association, Chicago, 111.
NO.
- D E S MOINES
Aberdeen Federal Savings and Loan Association, Aberdeen, S.. D.
Albert Lea Building and Loan Association, Albert Lea, Minn.
Butler Building and Loan Association, Butler, Mo.
Decorah Building and Loan Association, Decorah, Iowa
First Federal Savings and Loan Association, Jamestown, N. D.
First Federal Savings and Loan Association, St. Paul, Minn.
First Federal Savings and Loan Association, Thief River Falls, Minn.
Home Savings and Loan Association, Osage, Iowa
(Continued
SALES
on p. 3^5)
AND PURCHASES
OF WAR
BONDS
ALL
OFOOLLARS
2.0 K
DEC.
REPORTING MEMBER SAVINGS AND LOAN ASSOCIATIONS
CUMULATIVE - MAY 1941 TO JULY 1944
OFDOLLARS
w". ^
~"-*
'" '•
'-A 2.0
MAR.
JUN. SEP
1941
DEC MAR.
J UN
1942
SEP
DEC. MAR. JUN. SEP
1943
DEC.
JUN.
SEP
DEJC.
1944
Federal Home Loan Bank Review
* * *
WORTH REPEATING
FARM PRICES: " . . . The r a t e a t which
farm land prices are rising coupled with
t h e large n u m b e r of sales are unmistakable signs t h a t an inflationary land
spree is under way in m a n y regions."
Claude Wickard, Secretary of
Agriculture, Wall Street Journal,
August 5, 1944.
TAX CONSIDERATIONS: " G i v i n g
particular attention to the impact of
taxation upon production and p a y m e n t
does not mean neglecting other objectives of taxation, such as fairness or
equity, or t h e adequacy of revenue
yield. A sensible tax program m u s t
be based on a balance of all these considerations. Fairness, or equity, in
taxation calls for reasonable classification and like t r e a t m e n t of those in
like circumstances. Beyond this, t h e
t e r m is associated with the concept of
ability to pay or with a frank interest
in reducing inequalities in t h e distribution of income or wealth. It cannot
be denied t h a t the desire for 'equity'
will a t times conflict with concern for
incentives . . . But there are a surprising n u m b e r of i m p o r t a n t tax reforms t h a t involve no clash of interests
a t all, and t h a t can be recommended in
t h e n a m e of b o t h equity and incentives.
Usually there is no conflict between a
t a x program t h a t nurtures production
and one t h a t seeks a d e q u a t e revenues."
Harold M. Groves, Professor of
E c o n o [ m i c s , U n i v e r s i t y of
W i s c o n s i n , The Constructor,
July 1944.
WHAT
PRICE SLUMS?
"Slums are a
dead weight on the body politic—a
drag from a financial and sociological
viewpoint . . . They are a symbol
of our a p a t h y , lethargy, selfishness,
ignorance and stupidity, a mockery to
boasts of our high standards of living,
our industrial capacity, and our system
of free enterprise.
" T h e homes in the unhealthy portions
of the city do not pay their fair share
of the costs of city government, but,
on t h e contrary, add t o those costs
and drive taxable citizens from t h e
city because of lack of desirable
dwelling space and living conditions.
This process increases t h e per capita
cost of taxation on those who r e m a i n . "
Roland R. Randall, Chairman, Philadelphia Housing
Authority, American Savings
and Loan News, August 1944.
September 1944
RATIONAL A P P R O A C H : " I m p o r t a n t
among . . . economic considerations
for housing are such factors as the
anticipated
post-war employment
level, t h e distribution of family income, future population expectations,
and its composition, particularly in
respect to the n u m b e r and size of
families. I t is extremely i m p o r t a n t
to visualize t h e future geographical
distribution of t h e population of an
area with reference to sources of
employment. For most
localities,
fortunately, t h e d a t a for making these
determinations are now more profuse
t h a n a t any other time, and additional
statistics are being made available at
frequent intervals to governmental
agencies and by public and private
institutions and organizations. With
a great proportion of needed raw
material t h u s a t hand, there appears
to be no logical reason why local
communities should not, to some
extent at least, employ a rational,
economic approach to their post-war
housing."
Albert E. Dickens, Director
of Research, Chicago Plan
Commission, National Real
Estate Journal, August 1944.
SABOTAGE: " W e can no more tolera t e idle dollars—than we can tolerate
idle men
We have come to a point
where unnecessary spending is a form
of sabotage and saving is not only common sense but a form of public service.
By saving without stint, we not only
provide for our own personal security—
we become partners rather than competitors of our Government in its
fight for life."
Peter Odegard, before Conference and Organization Meeting
of the Council of Insured Saving s
Associations of New York State
POST-WAR BOOKSHELF
* * *
POST-WAR
CAPACITY
AND
CHARACTERISTICS
OF
THE
CONSTRUCTION
INDUSTRY:
Reprint from Monthly
Labor
Review.
M a y 1944. Bulletin N o . 779. Available at 10^ from Superintendent of
Documents,
Government
Printing
Office, Washington 25, D . C.
POPULATION
AND
FAMILIES:
INCOME AND
REGIONS AND METROPOLITAN
HOUSING.
RENT—FOR
DISTRICTS
OF 1,000,000 OR More: 1943.
242 p p .
Available from the Bureau of the
Census, V. S. D e p a r t m e n t of Commerce
Washington 25, D. C.
PLATFORM
FOR POST-WAR
CONS TR UCTION; CONS TR UCTION
IN
THE POS T- WAR ECO NO M Y: Available from the Producers' Council, Inc.,
815 15th Street N W., Washington,
D. C.
GOOD SHELTER
FOR
EVERYONE:
1944. 24 p p . Available a t
100 from Congress of Industrial Organizations, 718 Jackson Place, N . W.,
Washington, D . C.
THESE ARE THE HOUSES
SAM
BUILT: first report of t h e Housing
Authority of the City of Vallejo,
California. 44 p p . illus. Available
from t h e Authority, P. O. Box 1432,
Vallejo, California.
CITIES
OF LATIN
AMERICA:
Planning and Housing to t h e South.
By Francis Violich. 240 pp. illus.
Available at $3.50 from Reinhold
Publishing Corporation, New York,
N. Y.
THE WINNING
PLANS
IN
THE
PABS T
POS T- WAR
EMPLO F MENT
AWARDS:
Available from
t h e P a b s t Brewing Company, Chicago,
111.
Although
inclusion of title
does not
necessarily mean recommendation by the
Review, the following recent publications
will be of interest.
HOME OR SLUM: Post-war Homes
for Post-war New York. 16 p p . illus.
Available a t 50 from Citizens' Council
of New York, 470 F o u r t h Avenue,
New York 16, N . Y.
HOUSING
AND
PLANNING
AFTER
THE WAR: T h e [British]
Labor P a r t y ' s Post-War Policy: 1944.
Available a t 2d from T r a n s p o r t House,
London, England.
JOBS AFTER THE WAR: By E. A.
Goldenweiser and E v e r e t t E. H a g e n .
I n t h e M a y 1944 issue of t h e Federal
Reserve Bulletin, p p . 424-431. Available at 200.
331
RESIDENTIAL BUILDING ACTIVITY AND SELECTED INFLUENCING FACTORS
1935-1939= 100
BY YEARS
BY MONTHS
220r
i
I
—
200
PRIVATE CONSTRUCTION^ ^
11 a 2 FAMILY DWELL. UNITS 1
—
180
( F E D HOME LOAN BANK ADM.) \ J
( U S DEPT OF LABOR R E C O R D S ) ! ^
'
,A1
/ *4
/
\
*>
\J'
A/SVGS.
I20[
f
• (FED
icol
80 [
V
60
HOME LOAN BANK ADM.
^
) \
•x.
r
l
1
|
!
-+ —i-
\ \
\
,y
1
1
!/
J
A
V
*
V
/
>
/
//
^SVGSSLN
LEND.
tg
v
Si
G\
* *V—-
40
;
vs/
ivvivrMnm |
FORECLOSURES
— — S—
—
20 |
-
1
ADJUSTED FOR SEASONAL VARIATION
!
1
1
|
l
i
K\
f /
\
-a.«.
a L/V. Lt/v/».n
I
- j...
i L PRIVATE CONSTRUCTION
~§\f
1 & 2 FAMILY D W E L L . U N I T S
ii . ^ /
S
—v-
!60
I40h
_
L. _
fNONFARM FORECLOSURES
—•—L^ i
!
i
1
1 1
0
! 1
i i
i
1 ! I 1!
i 1
i
1 1 1 1
1 1 1 1
1
1 i
1 i
1
140
N^
ioo\
^*^»
•% .-.'"'*
X.
80
o
|
-*£
RENTS^
1
V
j
- ^
ILDING N 1ATFI1IAI PRK)FS
1
/
1
BUILDING MATERJAL PR/CESx_.. -.——
...
RENTS 1
I20[— -
(U. S. D E P T
j
OF L A B O R )
1
1
1
1 1
I..JAI I I i
A
j
I I
,
i I
I I
1 |
1 i
1 |
I V\
V
V
i
i
i
i
i
i
i
ADJUSTED FOR SEASONAL VARIATION
/AIDUS TRIAl_
PRODUCTIONS^ """"v
*x».
*•
<*-
"*•
.4
y
.***'^
INCC)ME PAYhl1ENT5
r
f
*••••••
•••"v
MFC. Eh 'PLO YMEtn
[
j
!
1
|
LA
1930 31
.NDEX
200
'32
'33
'34 '35 '36 '37
DEPARTMENT STORE SALES
'38 '39 '40
'41
'<12 V, 43
1 ! i i
V ,o AO
MONEY IN CIRCULATION
1 1
i 1
M i l l
1 I
1
1M
!
! \ \ \A I 1
I Q AA
I Q /LI
WAR SAVINGS BONDS j
r
SERIES " E " , " F " AND " G "
,
TOTAL SALES^Vl
fl
mu
Kj^
\
.
VVJ t
REDEMPTIONS-^
„|..U.U.1.M.1.M«
1 1 1 1 1 1 I.I.U.L.
332
rfTnTi±LLL "TmlnlM
Federal Home Loan Bank Review
« « «
MONTHLY
SURVEY
» » »
HIGHLIGHTS
/. As new residential construction continued to decline, the more rapid rate of decrease in public warehousing construction produced a rise
in the proportion of private
building.
II. Mortgage recordings registered a slight decline in July following six months of steady increase.
III. New lending by all operating savings and loan associations during July declined 11 percent from the preceding month, registering a
more-than-seasonal drop.
IV. Repurchases in all savings and loan associations during July were 18 percent over the level for the corresponding month last year while
new investments were 11 percent higher than in July 1943.
A. General reserves and undivided profits of insured associations declined slightly during the year to 6.6 percent of resources.
B. Insured associations repurchased $12,000,000
of Government share capital in July, of which $10,000,000
was retired by
Federals.
V. Advances by the 12 Federal Home Loan Banks were the highest recorded for July, amounting to $28,481,000.
outstanding was over $7,800,000
The balance of advances
above the total at the end of June.
VI. Changes in the war-production program resulted in continued declines in industrial production.
BUSINESS CONDITIONS—Declinins
production continues
The fiscal year 1945 opened with continued declines
being reported by a number of industries, principally
due to additional readjustments in the munitions
program as well as shortages of manpower in various
lines. As a result, the over-all index of industrial
production (1935-1939 average), as reported by the
Federal Reserve Board, dropped to 233 percent during July from 235 percent the preceding month.
Thus, the steady, gradual recession, observable since
last February, now leaves the index 7 points below
its position in July 1943 and 14 points below the peak
attained last fall. Despite the downward trend in
manufactures, railroads and other carriers reported
an unabated rise in freight traffic in July with indications of a sustained high level in the following
month.
Employment trends during the month, as reported
by the Bureau of Labor Statistics, generally substantiate these data as transportation and public
utilities were the only categories other than the
financial, service and miscellaneous group to show
an increase in employees during July. Total employment in non-agricultural establishments, according
to this source, declined by 136,000 to 38,607,000, and
the number of wage earners in all lines of manufacture was 161.0 percent of the 1935-1939 average as
compared with 161.8 percent in June and 173.2 percent in the corresponding month of last year.
The Federal Reserve Board's seasonally adjusted
index for department store sales rose to 189 percent
September 1944
of the 1935-1939 base in July from 175 the month
before as actual sales registered a less-than-seasonal
decline. This followed a more-than-seasonal decline
in June, while preliminary indications are that
August sales are above the level reported for the
corresponding month last year.
The cost-of-living index of the Department of
Labor rose by more than one-half point in July when
it was reported at 126.1 percent as compared witti
123.9 percent in the same month of 1943. On the
other hand, according to the same source, wholesale
prices declined during the month to 129.2 percent
from 129.4 percent of the 1935-1939 figure. In July
of last year they were at 128.1 percent of this index.
Building materials showed no change during the
month.
War expenditures in the first month of the new
fiscal year totaled $7,200,800,000, or about 12 percent
more than was spent for that purpose in the same
month the year before. An increase of more than
$7,570,000,000 in the gross public debt brought the
total, including guaranteed obligations, to more than
$210,138,000,000.
[1935-1939 = 100]
July
1944
June
1944
Percent
change
July
1943
48.7
108.1
129.4
175.1
233.0
163.1
232.4
58.5
108.1
129.4
183.9
235.0
H63.7
r
232. 6
-16.8
0.0
0.0
-4.8
-0.9
-0.4
-0.1
62.6
108.0
123. 6
156.0
240.0
175.5
213.4
Percent
change
-22.2
-0.1
+4.7
+12.2
-2.9
-7.1
-8.9
"•Revised.
Adjusted for normal seasonal variation.
1
333
BUILDING ACTIVITY—Low point
reached in July
The rapid tapering off of the war-housing program
was continued during July when building permits
were issued for only 8,445 dwelling units in urban
areas, the lowest number for any one month since
early in 1936. This represents a decline of 25 percent from June of this year and a 43-percent drop
from last July. Both public and private construction decreased during July. Private construction
declined 23 percent from a volume of 9,973 units in
June to 7,646 in July while publicly financed units
dropped from 1,293 to 799, down 38 percent. Permits issued for all types of dwellings were substantially below the volume in the corresponding month
of 1943. Private building dropped 31 percent and
public construction was 78 percent less than in July
of last year.
Of all the dwelling units started during the first
seven months of this year, 84 percent were privately
financed compared with 52 percent in the corresponding period of 1943. From January through
July 1944, permits were issued for nearly 61,000
privately financed dwelling units compared with
66,000 during the same period in 1943, a decline of
8 percent, while units financed by public funds totaled
nearly 12,000 as against 62,000 in the same period
of 1943.
[TABLES 1 and
total construction costs increased 5 percent, with
materials up 6 percent and labor 2 percent higher
than a year ago.
The Department of Labor's composite index of
wholesale building material prices remained unchanged from June to July. Fractional increases in
lumber, brick and tile, and "other" building materials were offset by a reduction in the cost of paint
and paint materials, leaving the total index at 129.4
(1935-1939=100). During the past year, the combined index has advanced approximately 5 percent.
Lumber, which has increased 10 percent since July
1943, was the major contributing factor. [TABLES 3,
4 and 5.]
THOUSNEW
RESIDENTIAL CONSTRUCTION
35,
\jrPRIVATE
I and 2 FAMILY
2.)
1941
1942
1943
1944
BUILDING COSTS—Labor costs
decline fractionally
For the first time since September 1943 a decline
was registered during July in the labor charges incident to the cost of constructing the standard 6-rqom
frame house. However, this fractional drop was not
sufficient to offset an increase in material prices
which carried the composite index to a point slightly
above that recorded in June.
The total cost index now stands 33 percent above
the average for the 1935-1939 period. Labor costs
were 37 percent above this base level and material
prices were 31 percent higher. During the past year,
Construction cost for the standard house
[Average month of 1935-1939=100]
Element of cost
Material _ _
Labor
Total
334
Percent
change
July
1944
June
1944
Percent
change
July
1943
131.0
137.3
130.7
137. 5
+ 0.2
-0. 1
123.7
134. 3
+ 5. 9
+ 2.2
133. 1
133.0
+ 0.1
127. 3
+ 4. 6
M O R T G A G E LENDING—Greater-thanseasonal drop reported
New mortgage loans amounting to approximately
$125,000,000 were made during July by all operating
savings and loan associations. This was a decline of
11 percent from the previous month and, since it was
somewhat greater than seasonally expected, reduced
the adjusted index (1935-1939 = 100) from 183.9 to
175.1 between June and July.
Mortgage lending operations of both Federal and
State-chartered members declined 11 percent from
June to July while nonmembers showed 8 percent
less. This contracting activity was general throughout the country, with drops ranging from 1 percent in
the Topeka District to 19 percent in the New York
region.
By loan-purpose categories, declines from June
to July ranged from 4 percent for reconditioning to
27 percent for construction loans. Home-purchase
lending, down 10 percent, amounted to $93,200,000
in July and accounted for 75 percent of total loans
Federal Home Loan Bank Review
TOTAL LOANS MADE BY ALL SAVINGS AND LOAN ASSOCIATIONS
climb ended
UNITED STATES-BY TYPE OF ASSOCIATION
BY
MORTGAGE RECORDINGS Six-month
MONTHS
Mortgage-financing activity dropped off slightly
in July after a steady advance during the first six
months of this year to a near-record peak in June.
The estimated $411,000,000 of nonfarm mortgages of
$20,000 recorded in Jury represented a decline of
$10,000,000, or 2 percent, from the preceding month
but was about 17 percent higher than recordings in
July 1942 and 1943.
Among the several types of mortgagees, June to
July changes in recordirgs ranged from an increase
of 11 percent for insurance companies to a decrease
of 10 percent for the miscellaneous group—"individuals and others." Although savings and loan
recordings declined 5 percent to $139,000,000, these
institutions maintained leadership in the homefinancing field by recording 34 percent of the total
volume of business. Individuals, with 24 percent,
accounted for the second largest share of recordings
during the month.
UNITED STATES-BY PURPOSE OF LOAN
BY MONTHS
Mortgage recordings by type of mortgagee
^RECONDITIONS
I I I
SEP.
DEC,
made. Compared with July 1943, new mortgage
lending was up 12 percent with all Federal Home
Loan Bank Districts except Indianapolis contributing
to the rise.
In the first seven months of this year, savings and
loan associations made approximated ? 816,200,000
of new mortgage loans, an increase of $188,000,000, or
30 percent, over the same period in 1943. With the
exception of loans for refinancing, which declined 6
percent, all types of lending registered gains: home
purchase, 42 percent; "other purpose", 34 percent;
construction, 15 percent; and reconditioning, 4
percent.
[Dollar amounts are shown in thousands]
Type of lender
Percent Percent Crimula- Perchange of July tive re- cent of
from
total
1944
cordings recordJune amount
(7
months)
1944
ings
Savings and loan associations
-4.9
Insurance companies. __ + 11.2
Banks, trust companies _ + 1.8
Mutual savings banks _ _ - 1 . 8
Individuals
-1. 0
-10.2
Others
-2. 5
Total
33. 7
6.0
19.7
3.7
23. 9
13.0
$864, 634
150, 385
504, 928
88, 297
616, 512
362, 207
33.4
5. 8
19.5
3.4
23. 9
14.0
100. 0 2, 586, 963
100. 0
[TABLES 6 and 7.]
New mortgage loans distributed by purpose
[Dollar amounts are shown in thousands]
Purpose
Construction _
Home purchase
Refinancing
Reconditioning
Other purposes
Total
July
1944
June
1944
Percent
change
July
1943
Percent
change
$7, 078 $9, 663 - 2 6 . 8 $9, 209 - 2 3 . 1
93, 232 103, 276 - 9 . 7 77, 555 + 20.2
13, 871 14, 963 - 7 . 3 14, 925 - 7 . 1
2,841 2,957 - 3 . 9 2,807 + 1.2
8,014 9,850 - 1 8 . 6 6,859 + 16.8
125, 036 140, 709 — 11. 1111,355 + 12.3
In the first seven months of this year, approximately 814,000 mortgages involving almost $2.6 billion of credit were filed for public record, an increase
over the same period of last year of 18 percent in
number and 26 percent in amount. Although the
volume of recordings during January-July of this
year wa.s^, only 3 percent below the first seven
months of 1941 which was a peak year in mortgage-financing activity, the number of mortgages
has shown a much greater decline—from 930,000 to
814,000—a decrease of 12 percent during the period.
[TABLES 8 and
September 1944
9.]
335
SYSTEM—Highest
July advances recorded
Monthly advances made by the 12 F H L Banks
during July were the highest yet recorded in that
month. In conformity with the usual seasonal
trends, advances during July were lower than those
of June. However this is contrary to July of last
year, when advances were in excess of those reported
for the preceding month. July advances this year
were $28,481,000; approximately $36,400,000 below
the all-time high established in June. Portland and
Boston were the only Banks registering advances
higher than those of the previous month.
Repayments of $20,641,000 were almost $12,500,000 above those received the month before, and
about $3,340,000 more than the figure reported for
July 1943. Only two Banks, Indianapolis and Little
Rock, reported repayments lower in July than in
June. All other Banks showed increases, ranging
from $291,000 in Boston up to $4,551,000 in Chicago.
The balance of advances outstanding on July 31
was $136,118,000, an increase of $7,840,000 over
June 30. The expanded scale of lending is evident
from the fact that the July balance of advances outstanding was $44,577,000 above that of July of last
year, and is larger than any monthly balance since
September 1942. All Banks except Cincinnati and
Chicago showed an increase during July over June
in the balance of advances outstanding. [TABLE 12.]
F L O W OF PRIVATE REPURCHASABLE CAPITAL
July repurchases in all savings and loan associations increased 18 percent over last year while new
investments gained only 11 percent over July of 1943
so that the withdrawal ratio rose 4 points. The net
addition for the month was $40,600,000 against
$43,600,000 for the same month of last year, with
each type of association adding less to the private
capital account than was added in July 1943.
All associations received approximately $1,092,000,000 in new money during the first seven months
of 1944 while $905,000,000 was added to capital accounts in the same 1943 period. Withdrawals during
January-July 1944 were $645,000,000 compared with
$564,000,000 for the corresponding earlier period.
So far this year $59 was withdrawn for each $100
invested compared with $62 for the first seven months
of last year. Uninsured members and nonmembers
each showed a 10-point drop in their repurchase
ratios while insured associations had only a fractional
decrease.
336
Share investments and repurchases, July 1 9 4 4
[Dollar a m o u n t s are shown in thousands]
Item and period
All associations
Share
investments:
1st 7 mos.
$1, 092, 128
1944
1st 7 mos.
904, 615
1943
+ 21
Percent change191, 535
July 1944
172, 033
July 1943_ __
Percentchange.
+ 11
Repurchases:
1st 7 mos.
1944
1st 7 mos.
1943
Percent changeJuly 1944 __.._
July 1943
Percent c h a n g e .
Repurchase
ratio (percent) :
1st 7 mos.
1944
1st 7 mos.
1943
July 1 9 4 4 July 1 9 4 3 -
$645, 198
All insured Uninsured
associate
members
tions
Nonmembers
$848, 526 $147, 774 $95, 828
676, 321 126, 270 102, 024
-6
+ 17
+ 25
155,218 22, 364 13, 953
134, 065 21, 748 16, 220
-14
+ 16
+3
$481, 126 $99, 068 $65, 004
564, 019
+ 14
150, 971
128, 445
+ 18
387, 327
+ 24
120, 349
97, 117
+ 24
96, 968
+8
79, 724
-18
11,527
13, 690
-16
59. 1
56. 7
67.0
67.8
62.3
78. 8
74. 7
57.3
77. 5
72.4
76.8
85. 4
81. 1
78. 1
82. 6
84.4
+2
19, 095
17, 638
INSURED ASSOCIATIONS—Peak
investments and withdrawals shown
At the end of July, 2,463 savings and loan associations with assets of more than $4,600,000,000 were
insured by the Federal Savings and Loan Insurance
Corporation. During the month these institutions
repurchased more than $12,000,000 of Government
share capital, thereby reducing to $38,479,000 the
Government's investment in their shares.
According to the latest survey, insured associations
had by mid-1944 accumulated in general reserves
and undivided profits $304,000,000, an amount equivalent to 6.6 percent of their total resources. Percentagewise this represents a small decline from July 31,
1943 when 6.8 percent of the resources of these institutions were available to cover potential losses.
At the end of July 1944 insured state-chartered associations had 7.8 percent of their resources in general
reserves and undivided profits compared with 5.9
percent for Federals.
During January and July repurchases and new investments show marked seasonal increases since most
insured associations declare dividends on June 30 and
Federal Home Loan Bank Review
December 31. In July both withdrawals and new investments reached new peaks. Although a total of
$155,000,000 was invested during the month, repurchases amounted to $120,000,000, that is, for each
$100 invested during the month $78 was withdrawn.
The private repurchasable capital of insured associations amounted to $3,963,000,000 at the end of July.
[TABLE
13.]
FEDERAL SAVINGS AND LOAN ASSOCIATIONS
At the close of July, 1,466 savings and loan associations with assets of $2,908,000,000 were operating
under Federal charter. In addition to making
$57,200,000 of new mortgage loans during the month
and increasing their holdings of U. S. Government
securities, Federal savings and loan associations retired $10,000,000 of Government share capital.
bottom of the list of real estate owned by life institutions. By the end of 1943, 1- to 4-family dwellings accounted for less than 7 percent of the total
holdings of properties acquired as the result of
defalcations on loans. As of December 31, 1942,
the proportion was 9.3 percent. Over the 11-year
period (1933-1943) covered by the Division's studies,
this ratio has consistently diminished, its downward
movement being unbroken even by the mounting
acquisitions of the depression years.
On the other hand, commercial properties, a
section of the portfolio which accounted for 30.7 percent of all real-estate loans held as against 35.7
percent for the 1- to 4-family group, constituted 44
percent of the acquired real estate owned outright.
Farms represented 27.5 percent of this combined
account, while multi-family nonfarm properties were
21.6 percent.
Progress in number and assets of Federals
[Dollar amounts are shown in thousands]
Number
Class of association
i\Tew ._
Converted
_
_
Total
Approximate assets
(Continued jrom p. 328)
July 31, J u n e 30,
1944
1944
July 3 1 ,
1944
J u n e 30,
1944
635
831
635
830
$966, 433
1, 941, 541
$960, 001
1, 921, 275
1, 466
1, 465
2, 907, 974
2, 881, 276
Life Insurance Company Mortgage
Holdings
(Continued from p. 327)
erties. Sales during the year totaled $345,000,000,
being far in excess of new acquisitions. As a result,
the book value of real estate owned outright (exclusive of office buildings, real estate sold on contract
and housing projects built and held for investment
purposes) declined 28 percent from $1,033,000,000
in December 1942 to $747,000,000 at the end of
1943. Thus, since 1938 when acquired real estate
reached a peak of almost $1,731,000,000, there has
been a cumulative reduction of more than $983,000,000, or 57 percent.
Perhaps the most interesting aspect of the record
of property owned is the exceedingly favorable experience that life insurance companies have had
with respect to the 1- to 4-family category. Despite relatively large holdings of loans on this type
of property, they have been consistently at the
Sepiember 1944
Building Societies
greatest." The Star commented that the concentration should be "all to the good" for the public,
since it would increase the security of shares and
deposits and enable the societies to play " a more
active part in financing the building programme
after the war, and to do so at cheaper rates than
they would otherwise have charged." The Daily
Herald stated that the societies are trying to tighten
their organizations in order to meet changed conditions, the government's direct participation in
post-war housing, and the fact that the returning
serviceman and the civilians who have been bombed
out will probably want to rent their homes, rather
than buy them.
The financial press, too, commented widely upon
the merger. The Economist found little to be gained
in organizational economies, but geographical spread,
if real, was thought to be " presumably an advantage." The Investors' Chronicle hoped that the movement toward combination was not merely a race for
bigness' sake. The case for reduction of the number of societies would seem to rest on the fact that
many of the small units are not economical. Some
figures quoted by the Investors' Chronicle showed that
operating expense ratios rose with the society's size.
For this reason, among others, the "emergence of
building societies 'empires' along the lines of vast
industrial enterprises" is not to be accepted without
question."
337
Table 1 . — B U I L D I N G A C T I V I T Y - E s t i m a t e d number and valuation of new family dwelling units
provided in all urban areas in July 1944, by Federal Home Loan Bank District and by State
[Source: U. S. Department of Labor]
[Dollar amounts are shown in thousands]
All residential s t r u c t u r e s
Federal H o m e L o a n B a n k District a n d S t a t e
U N I T E D STATES
. _ . _ _ _ _ _
N o . 1—Boston
Connecticut_
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont-. -
_
.
- . . - . .
Delaware
Pennsylvania,
Wes^; Virginia
_
_ _ _
_
Alabama _ _ _
District of C o l u m b i a
Florida _
Georgia
_
.. .
_
.
14, 798
$27, 350
$43, 286
6,929
8,905
78
545
211
2,055
78
365
211 1
1,565
31
1
36
362
77
106
124
1
63
1,493
192
370
31
1
36
274
13
78
124
1
63
1,251
44
270
_
.
-
-
-
.
- --
_ _ _
Indiana
_
Michigan
.
. _ ' _ _ _
.
_ __
__
182
733
451
2,816
118
664
318
2,659
159
23
94
636
3
438
13
364
2,451
1
95
23
94
567
3
305
13
364
2,294
1
1,360
3,704
4,707
7,708
660
826
1,331
1 864
120
115
301
78
626
39
32
49
74
992
317
1,935
151
17
62
156
110
388
737
79
3,158
34
73
128
22
2,381
859
3,545
371
8
128
394
112
88
243
75
26
39
28
49
74
7
305
215
139
17
2
67
738
1,429
2,689
4,865
645
718
2,362
2 782
__
13
539
186
35
1,267
127
12
2,324
353
81
4,518
266
13
446
186
35
556
127
12
1,997
353
81
2,436
265
. __
685
1,961
2,784
7,330
494
1,460
2,171
6,178
195
490
166
1,795
765
2,019
373
6,957
189
305
115
1,345
753
1,418
295
5,883
442
354
88
732
682
50
1,958
1,562
396
3,029
2,820
209
415
349
66
605
567
38
1,883
1,548
335
2,653
2,479
174
110
22
23
58
2
5
89
8
5
63
199
6
5
165
13
213
49
37
115
5
7
199
6
5.
165
23
110
22
23
58
2
5
89
8
5
63
13
213
49
37
115
5
7
1,389
62
29
79
90
1,129
1,477
27
228
127
51
1,044
2, 795
20
8
40
263
2,464
2,404
6
419
176
110
1,693
1,280
62
29
79
90
1,020
1,229
27
92
127
43
940
2,497
20
8
40
263
2,166
1,969
6
189
176
103
1,495
147
12
24
43
68
538
17
238
73
210
326
23
40
194
69
1, 673
37
546
230
860
147
12
24
43
68
385
4
102
73
206
326
23
40
194
69
1,319
2
237
230
850
477
1,323
1, 725
22
11
129
1,037
490
36
5,169
469
8
2
1,150
2,031
1,941
37
20
4
78
225
129
13
1,033
3
4
133
482
398
13
1,703
22
11
129
1,037
468
36
4,213
1
2
513
2,030
1,630
37
4,180
117
4,062
1
2,471
1,072
8,408
2,945
27
2,437
7 j
13 1
1,058 1
1 j
4
2
2,942
1
-
__
-
..
N o . 7—Chicago _ _ _ _ _ _ _
_ ..
Illinois_
- _ _ . . - . _ - Wisconsin ._
.
_ ___ __ - _ _ __ _
-
. .
_
_
.
.
-
-
.
._
___
.__ __ _
._
_.
.
_
..
_ .
__
__ _
_. ________
. _
_.
_ _
__
.
- _ _ _ _
_
_ ___
_
_ _ _ _ _ _ _
___ .
_
_____.-__
_ _- _
N o . 10—Topeka.
Colorado
Kansas
_ . _ .
Nebraska _
O k l a h o m a . . . __ _
N o . 11—Portland
Idaho__ _ _ _ _ _ _ _ _
Montana
Oregon
Utah.
Washington.
__
Wyoming
__
_
-
__
_ _ _ _ _ _
_ __
._
__ .
_
_
_
__
__
_---_.
__
.__
_ ___
_
__
__
_ _
__ ___
_ _ _ _ _
__ _. __
__
__ ___
_
.
_ _ __
_ _ _
_ __ __
__
_.
20
4
78
225
137
13
2,795
N o . 12—Los Angeles
._
_ _._ ___ . .
___
_
_ _
.__ ___ __
_
_
23
297
162
_ ..
.
10
$29, 965
459
_ _ _
_.
23
$21,537
27
-
8,445
42
-.. _
_
___ ._
July
1943
1,176
682 j
-..
_
.
338
July
1944
July
1943
1,858 j
__.____.
.
_
July
1944
July
1943
75
39
N o . 5—Cincinnati
_
July
1944
July
1943
114
.
_ _
. _.
_ _ _ _ . . _ _ _ . .
-
_. _ _ - . . . .._ . _
..
N o r t h Carolina
S o u t h Carolina
Virginia. .
.. .
Arizona
California
Nevada
July
1944
559
N o . 4—Winston-Salem
N o . 9—Little R o c k
Arkansas
_
Louisiana
.
Mississippi
N e w Mexico, _
Texas _
Permit valuations
397
162
No. 3—Pittsburgh
N o . 8—Des M o i n e s
Iowa
_ _
Minnesota
Missouri
North Dakota
South Dakota
N u m b e r of family
dwelling u n i t s
27
15
.. .
N o . 6—Indianapolis
Permit valuation
42
N o . 2—New Y o r k
Kentucky.
Ohio
Tennessee.
N u m b e r of family
dwelling u n i t s
10
N e w Jersey
New York
All p r i v a t e 1- a n d 2-family s t r u c t u r e s
27
2, 761
7
!
7
4
263
482 1
554 '
13 |
1, 708
67
1,640
1
9,377
47~
9, 316
14 j
15 1
114
75
39 !
86
328
549
75
70
34
61
128
7
8,347
14
1 619
937
682
22
30
826
471
329
7
1
17
23
Federal Home Loan Bank Review
Table 2 . — B U I L D I N G A C T I V I T Y — E s t i m a t e d number and valuation of new family dwelling units
provided in all urban areas of the United States
[Source: U. S. Department of Labor]
[Dollar amounts are shown in thousands]
N u m b e r of family dwelling u n i t s
M o n t h l y tot?Is
T y p e of construction
J u l y 1944
J u n e 1944
7,646
9,973
6, 537
392
717
7,554
1,393
1,026-
P r i v a t e construction
1-family dwellings
2-family dwellings * - 3- and more family dwellings
2
J a n u a r y - J u l y totals
J u l y 1943 \
1944
M o n t h l y totals
1943
J a n u a r y - J u l y totals
| J u l y 1944
J u n e 1944
J u l y 1943
1944
1943
60,927
66, 006
$23, 686
$31, 676
$35, 574
$192,087
$201, 722
7, 497
1,408 !
2,181
46, 762
6.295
7, 870
44, 649
8,661
12, 696
20,174
1,363
2,149
23, 692
4,910
3,074
26,013
3, 952
5,609
147,529
21, 545
23, 013
145, 520
23, 368
32,834
11,086
799
1,293
3,712
11,834
62,025
3,664
3, 502
7,712
30,031
131, 513
8,445
11, 266
14,798 !
72.761
128, 031
27, 350
35, 178
43,286 !
222.118
333, 235
P u b l i c construction
T o t a l u r b a n construction
P e r m i t valuation
'
1
Includes 1- and 2-family dwellings combined with stores.
2
Includes multi-family dwellings combined with stores.
Table 3 . — B U I L D I N G
COSTS—Index of building costs for the standard house in representative
cities in specific months1
[Average month of 1935-1939=100]
1944
1943
1942
1941
1940
1939
1938
Aug.
Aug.
Aug.
Aug.
Aug .
Federal H o m e L o a n B a n k District a n d c i t y
Aug.
N o . 3—Pittsburgh:
W i l m i n g t o n , Del* .
Philadelphia, Pa*
Pittsburgh, P a .
C h a r l e s t o n , W . Va*_
Wheeling, W. Va
N o . 5—Cincinnati:
Louisville, K y *
C i n c i n n a t i , Ohio
C l e v e l a n d , Ohio*
C o l u m b u s , Ohio
Memphis, Tenn*
Nashville, T e n n
._
.. -
- _ -
__
. . . _ . _.
.
. . . ...
... . _.___._
.
...
..
N o . 9—Little R o c k :
Little Rock, Ark*
N e w Orleans, La*
Jackson, Miss*.
A l b u q u e r q u e , N . Mex* .
Dallas, Tex
Houston, Tex *
__.__.
San A n t o n i o , Tex
N o . 12—Los Angeles:
P h o e n i x , Ariz*
Los Angeles, Calif*.
San Diego, Calif
San Francisco, Calif.. .
Reno, Nev*
._
. . .
_ _
. ...
=. _ _ .
. ..
. . .
..
.
Feb .
Nov.
Aug.
135.3
149.9
134.2
125.3
134. 6
150.2
134.0
123.8
129.7
133.8
148.7
133.5
122.1
129.7
131.2
148.4
131.9
122.1
122.9
130.4
145.8
131.9
121.8
122.1
130.1
139.3
' 126.1
122.2
122.7
115.9
120.2
'118.7
108.2
109.7
93.9
110.0
' 100.1
'101.3
' 105.1
97.5
103.8
' 104.7
101.4
104.1
106.2
102.5
' 105. 5
103.0
99.6
139.9
139.2
133.9
142.1
129.6
137.4
130.6
133.1
131.2
140.4
129.7
137.4
127.9
132.8
130.7
139.3
132.1
136.4
128.6
112.3
137.7
117.7
126.9
125.3
111.9
127.3
117.2
126.4
121.4
119.0
103.4
121.3
111.4
117.6
114.0
104.4
97.4
108.4
100.6
102.8
95.1
100.7
96.3
102.1
98.3
101.2
96.6
99.9
102.2
100.8
103.5
101.8
99.2
125.5
138.6
136.8
121.9
' 136.0
123.6
' J37.6
123.3
138.6
132.3
120.9
'136.0
123.1
' 137. 8
123.7
138.4
129.2
118.4
123.4
131.4
125.4
116.3
123.6
131.9
122.7
116.8
128.0
115.9
127.4
106.3
123.9
118.9
102. 5
119.2
108.9
115.5
98.9
102.5
106.3
'100.8
94.6
96.8
94.5
100. 6
101.4
103.0
' 104.7
94.9
100.2
101.2
99.2
105.4
106.2
' 104.7
102.9
102.1
104.5
116.0
144. 2
115.7
144.3
115.7
143.1
1x3.2
142.0
112.0
133.9
127.6
127.6
124.7
120.0
120.5
111.8
128.5
126.3
121.6
118.0
107.7
105.5
111.9
112.3
110.6
99.0
95.4
93.2
101.5
105.5
97.9
95.0
98.2
102.5
102.3
103.6
103.6
102.3
101.3
102.1
142.1
137.3
_
May
126.1
138.6
136.5
123.2
124.3
l2l.~5~ " " 116.5"
. .
* Indexes of August 1941 and thereafter have been revised in order to use retail material prices collected by the Bureau of Labor Statistics.
' Revised.
i The house on which costs are reported is a detached 6-room home of 24,000 cubic feet volume. Living room, dining room, kitchen, and lavatory on first floor;
three bedrooms and bath on second floor. Exterior is wideboard siding with brick and stucco as features of design. Best quality materials and workmanship are used.
The house is not completed ready for occupancy. It includes all fundamental structural elements, an attached 1-car garage, an unfinished cellar, an unfinished
attic, a fireplace, essential heating, plumbing, and electric wiring equipment, and complete insulation. It does not include wallpaper nor other wall nor ceiling finish
on interior plastered surface, lighting fixtures, refrigerators, water heaters, ranges, screens, weather stripping, nor window shades.
The index reflects the changes in material and labor costs in the house described above. Allowances for overhead and profit, which were previously included in the
total costs, were based upon a flat percentage of the material and labor costs and therefore did not affect the movements of the series; no such allowances are included,
now that the index is expressed in relative terms only.
Reported costs do not include the cost of land nor of surveying the land, the cost of planting the lot, nor of providing walks and driveways; they do not incude
architect's fee, cost of building permit, financing charges, nor sales costs.
In figuring costs, current prices on the same building materials list are obtained every 3 months from the same dealers, and current wage rates are obtained from the
same reputable contractors and operative builders. The Bureau of Labor Statistics furnishes building material prices for some cities. Although shortages of materials
and priority restrictions preclude the actual construction of this house under wartime conditions, tests indicate that the indexes measure fairly closely the cost changes
for smaller frame structures that now can be built.
September 1944
339
Table 4 . — B U I L D I N G COSTS—Index of building cost for the standard house
[Average m o n t h of 1935-1939=100]
J u l y 1944 J u n e 1944 M a y 1944 A p r . 1944 M a r . 1944 F e b . 1944 J a n . 1 9 4 4
E l e m e n t of cost
Material.
Labor
__
Total cost.
r
D e c . 1943 N o v . 1943 Oct. 1943 Sept. 1943 A u g . 1943 J u l y 1943
131.0
137.3
130.7
137.5
' 130.3
137.3
129.7
137.0
129.1
'136.8
128.8
136.5
127.8
136.1
127.6
136.0
126.8
135.6
126.0
135.0
124.4
133.8
123.4
134.2
123 7
134.3
133.1
133.0
'132.7
132.2
>131.7
131.4
130.6
130.5
129.8
129.1
127.6
127.1
127.3
Revised.
Table 5 . — B U I L D I N G COSTS—Index of wholesale prices of building materials in the United States
[1935-1939=100; converted from 1926 base]
[Source: U . S. D e p a r t m e n t of Labor]
AH b u i l d i n g
materials
Period
Brick a n d
tile
Cement
Lumber
Paint and
paint materials
Plumbing
and heating
Structural
steel
Other
1942: J u l y
123.2
107.9
103.4
148.0
123. i
123.6
103.5
112.3
1943: J u l y
August
September
October
Novembfr
December.
123.6
125.3
125.6
125.8
126.3
126.6
109.0
109.0
109.0
109.0
110.1
110.1
102.7
102.7
102.7
102.7
102.7
102.7
155.6
161.5
162.7
163.3
164.1
164.3
125.4
126.4
126.1
126.4
126.9
127.0
118.8
118.8
118.5
118.5
120.6
120.6
103.5
103.5
103.5
103.5
1Q3.5
103.5
109.5
109.7
110.3
110.5
110.5
111.2
1944: J a n u a r y
February
March
AprilMay
June
July
126.7
126.9
127.5
128.6
129.2
129.4
129.4
110.3
110.2
110.4
110.4
110.6
110.7
110.8
102.7
102.7
102.7
103.1
105.8
105.8
105.8
164.4
165.3
167.8
170.8
171.5
171.5
171.7
127.2
127.7
128.4
128.4
128.7
130.0
129.7
120.6
120.6
120.6
120.6
121.4
121.4
121.4
103.5
103.5
103.5
103.5
103.5
103.5
103.5
111.2
111.2
111.2
111.2
111.4
111.4
111.5
P e r c e n t change:
J u l y 1944-June 1944
J u l y 1944-July 1943 _
0.0
+4.8
+0.1
+1.7
0.0
+3.0
+0.1
+10. 3
-0.2
+3.4
0.0
+2.2
0.0
0.0
+0.1
+1.8
_.
TabU 6 . — M O R T G A G E LENDING—Estimated volume of new home mortgage loans by all
savings and loan associations; by purpose and class of association
[ T h o u s a n d s of dollars]
Class of association
P u r p o s e of loans
Period
1942
January-July
July
1943
_ .
January-July
July
_
August
September.,.
October
November
December
.
______
...
. _
_
__
...
. .
.
__
_ _
.
L o a n s for
all other
purposes
Total
loans
Nonmembers
Construction
H o m e purchase
$190,438
137,102
17, 709
$573, 732
318, 419
52,190
$165,810
97, 800
16, 097
$41,695
25,061
3, 671
$78,820
49, 222
6,130
$1,050, 501
627, 604
95, 797
$412,828
247,122
37,007
$476,080
282,153
43, 665
$161, 593
98, 329
15,125
106,497
57, 386
9,209
10, 616
13,211
7,452
6,928
10, £04
802, 371
412, 493
77, 555
82,894
86,016
83,259
73,053
64, 656
167, 254
99,513
14,925
14, 600
13, 799
14,025
12,767
12, 650
30,441
16, 601
2,807
2,809
3,229
2,874
2,638
2,290
77,398
41, 828
6,859
6,470
6,718
7,540
7,670
7,172
1,183, 961
627, 821
111,355
117,389
122,973
115,150
103,056
97, 572
511,757
267, 458
48, 370
51,172
54,100
50, 576
44.804
43, 647
539, 299
286, 789
50, 648
53,497
55, 907
52,026
47.108
43, 972
132, 905
73, 574
12, 337
12,720
12,966
12,548
11,144
9,953
65, 757
7,872
11,195
9,127
13, 484
7,338
9,663
7,078
583, 932
55,000
66,138
81,846
85, 568
98,872
103, 276
93, 232
93, 093
9,976
11,955
14, 422
13, 491
14,415
14,963
13, 871
56, 210
6,609
6,916
8,469
7,421
8,931
9,850
8,014
816,183
80, 978
98,164
116,130
122, 643
132, 523
140, 709
125, 036
373, 015
37, 076
44,144
53,883
57,045
59, 229
64, 474
57,164
365,024
35,456
44,139
50,686
54, 212
60,141
63,851
56, 539
Refinancing
Reconditioning
Federals
State
members
.
1944:
January-July
January
February
March
April
May
June
-.
Julv
340
_ _ _
_ _ ...
.-
_ _
. _ . .
...
17,171
1,521
1,960
2,266
2, 679
2,967
2,957
2,841
-^™-
78,144
8,446
9,881
11,561
11,386
13,153
12,384
11,333
Federal Home Loan Bank Review
Tabic 7.—LENDING—Estimated volume of new
loans by savings and loan associations
Table 8.—RECORDINGS—Estimated nonfarm
mortgage recordings, $20,000 and under
JULY 1944
[Thousands of dollars]
[Thousands of dollars]
C u m u l a t i v e new loans
(7 m o n t h s )
Vew loans
Federal H o m e L o a n
B a n k District a n d
class of association
Federal
State m e m b e r
Nonmember
_
State m e m b e r
Nonmember
.._
Federal
. . . __
State member
Nonmember
Pittsburgh
Federal
State member
Nonmember
W inston-Salem
July
1943
1944
1943
Percent
change
Savings Insur- Banks M u and
tual
and
ance
trust
savloan
comings
associa- panies com"panies b a n k s
tions
$138, 762 $24, 707 $80,858 $16, 261 $98,194 $53, 354 $411,136
+30.0
UNITED
57,164
56, 539
11,333
64, 474
63, 851
12, 384
48, 370
50, 648
12, 337
373,015
365,024
78,144
267, 458
286, 789
73, 574
+39.5
+27.3
+6.2
Boston
10,079
12,085
9,377
59, 044
49, 768
+18.6
3,949
4,863
1,267
4,609
6,010
1,466
2,640
5, 294
1,443
21, 365
29, 923
7,756
14, 306
27, 235
8,227
+49.3
+9.9
-5.7
11,259
13,864
8,036
45,162
+51.9
3,757
5,507
1,995
4,691
6,968
2,205
2,109
4,115
1,812
20, 582
35, 767
12, 264
10,771
23, 352
11,039
+91.1
+53.2
+11.1
10,095
11,129
9,475
67,514
54, 750
+23.3
4,593
3,901
1,601
5,072
3,969
2,088
3,897
3,168
2,410
30,918
22,966
13,630
21,381
17, 294
16,075
+44.6
+32.8
-15.2
68, 613
STATES
_. _
Connecticut
Maine
_ Massachusetts
New Hampshire
Rhode Island
Vermont
NewT Y o r k .
. _ . . . .
NewT Jersey
New York
Pittsburgh
Delaware
. _ __
Pennsylvania
W e s t Virginia-, _ . .
Winston-Salem
Alabama
District of Columbia._
Florida
Georgia
__ _ __
Maryland
N o r t h Carolina
S o u t h Carolina
Virginia
Individuals
Other
mortgagees
Total
13, 295
648
3,681
8,005
6,437
3,068
35,134
1,496
695
9,485
329
1,092
198
426
20
200
1,606
225
1,123
142
500
85
1,375
775
4,626
544
358
327
1,891
517
2,974
340
510
205
1,074
36
1,782
17
149
10
7,868
2,268
20,190
1,372
2,611
825
10, 338
1,864
5,096
5,438 13, 775
5,928
42, 439
3,252
7,086
669
1,195
2,296
2,800
739 3,540
4,699 10, 235
1,874
4,054
12, 370
30,069
10,109
2,603
6,574
528
5,807
3,542
29,163
193
9,016
900
129
2,230
244
149
5,262
1,163
28
500
278
4,909
620
105
3,202
235
882
25,119
3,162
16,019
4,077
5,168
150 12,825
4,265
42, 504
487
2,718
1,590
1,678
4,760
2, 217
376
2,193
2,185
229
664
103
92
495
160
149
325
396
1,090
910
932
368
342
805
838
1,249
4,504
1,098
1,758
1,009
565
1,804
200
417
1,627
411
284
501
244
581
4,035
5,009
9,475
4,200
7,976
4,590
1,687
5,532
26,175
1,828
9,316
533
6,412
4,472
48, 736
2,557
23, 097
521
253
918
657
744
7,958
614
533
254
5,493
665
150
2,212
2,110
3,958
40, 211
4,567
2
14, 072
16,888
13, 532
97, 939
75,848
+29.1
..
6,710
6,449
913
9,115
6,718
1,055
6.778
5,417
1,337
52,173
39, 861
5,905
38, 284
29,532
8,032
+36.3
+35.0
-26.5
...
21,325
23,804
19, 852
138,848
119,173
+16.5
..
9, 300
10, 374
1,651
9, 819
12,314
1,671
7,937
10, 483
1,432
56,842
70,140
11, 866
45,036
64, 563
9, 574
+26.2
+8.6
+23.9
7,061
7,635
8, 033
45,058
38, 501
+17.0
Indianapolis..
7,868
3,183
7,418
30
3,259
3,486
25, 244
3, 453
3,290
318
3,918
3,382
335
4,977
2,708
348
21,930
21,030
2,098
20, 320
16,001
2,180
+7.9
+31.4
-3.8
IndianaMichigan
5,211
2,657
897
2,286
2,796
4,622
30
1,012
2,247
1,242
2,244
11,188
14,056
15, 582
1,368
5,774
13
6,584
8,013
37, 334
14, 938
16,052
11, 458
92,638
62, 254
+48.8
987
381
3,872
1,902
13
3,575
3,009
7,524
489
27, 652
9,682
5,840
8,065
1,033
6, 623
8,296
1,133
4,157
5,877
1,424
11, 694
3,888
37,919
46,956
7,763
23, 957
31,077
7,220
+58.3
+51.1
+7.5
8,486
2.105
5,977
123
5,420
3,901
26,012
1,768
3,268
2,993
299
158
126
488
1,417
38
36
1,448
1,053
3,175
105
196
865
1,497
2,787
96
175
267
738
2,843
35
18
4,474
7,167
13,215
573
583
7,782
3,051
1,615
6,609
2,329
21, 386
461
2,312
318
149
4,542
36
161
192
1
2,661
201
108
177
114
1,015
379
1,203
409
225
4,393
27
299
76
30
1,897
1,104
4,083
1,172
519
14, 508
6,983
919
2,087
4,730
1,928
16,647
941
2,195
1, 250
2,597
127
130
330
332
353
508
271
955
2,333
523
502
1,372
712
211
194
811
4,466
3,567
2,547
6,067
3,990
390
4,017
441
2,925
2,558
14,321
275
294
1,113
571
1,600
137
38
130
98
430
937
2,240
182
41
203
263
1,310
205
746
198
84
11
368
866
1,199
30
730
673
3,415
2,703
6,253
547
Federal __ S tate member
Nonmember
Cincinnati
June
1944
$125,036 $140, 709 $111,355 $816,183 $627, 821
U N I T E D STATES
Boston
July
1944
Federal H o m e
Loan
Bank District and
State
Cincinnati
Federal
State m e m b e r
Nonmember
Indianapolis^
Federal
State m e m b e r
Nonmember
Kentucky. ... _
Ohio
Tennessee
Chicago
Chicago
Federal
State m e m b e r
Nonmember- Des Moines
Federal.- _
State m e m b e r
Nonmember
__
L i t t l e Rock
Federal
State m e m b e r
Nonmember
8,187
8,754
6,151
49, 864
33,973
+46.8
4,365
2,758
1,064
4,733
3,000
1,021
2,916
2, 337
898
25, 254
17, 920
6, 690
16, 873
12,139
4,961
+49 7
+47.6
+34.9
6,144
7, 077
5, 656
45,424
32,540
+39.6
2,884
3,192
68
2,712
4,299
66
2,442
3,119
95
18, 577
26, 353
494
13, 559
18, 449
532
+37.0
+42.8
-7.1
6,287
6,354
5,510
39, 428
31, 648
+24.6
3,164
1,926
1,197
3,593
1,725
1,036
2,888
1,694
928
20, 403
11,006
8,019
18,145
9,184
4,319
+12.4
+19.8
+85. 7
4,220
4,739
4,198
26,162
24,100
+8.6
2, 796
1,264
160
2,917
1,572
250
2,721
1,327
150
17,494
7.576
1,092
15,381
7,750
969
+13.7
-2.2
+12.7
11,369
12, 328
10, 077
85, 651
60,104
+42.5
6,353
4,950
66
6,672
5,598
58
4,908
5,109
60
49, 558
35, 526
567
29, 445
30,213
446
+68.3
+17.6
+27.1
Illinois
Wisconsin
Des Moines
. . . . .
Iowa
Minnesota...
Missouri .
North Dakota
South Dakota
.
.
L i t t l e R o c k __
Arkansas
Louisiana.
Mississpipi
N e w Mexico
Texas. . . .
_ ..
.
Topeka.
Topeka
F e d e r a l , . . _. __ _.
S t a t e m e m b e r . __ _.
Nonmember-..
Colorado . . .
Kansas
Nebraska
Oklahoma
Portland
P o r t l a n d _ __ _ ___
Federal..
State member
NonmemberLos Angeles
Federal_
State member _ _ .
N o n m e m b e r - - .__
September 1944
Idaho
Montana
Oregon..
Utah
Washington
Wyoming
Los Angeles
Arizona.. . . .
California .
Nevada
.
153
124
68
150
123
400
.. . -
12,135
2,671 24,135
23.411
9,864
72, 216
_ ..
151
11, 905
79
14
208
2,654 23, 876
51
3
894
22,299
218
38
9,817
9
1,305
70,551
360
.....
341
Table 9 — M O R T G A G E RECORDINGS—Estimated
volume of nonfarm mortgages
recorded
[Dollar amounts are shown in thousands]
Savings and loan
associations
Insurance
companies
Banks and trust
companies
Mutual savings banks
Other
mortgagees
Individuals
All
mortgagees
Period
Total
1943: January-July.
July
August
September . . .
October
November
December
$655, 708
116,406
119,385
126,586
122,832
111,818
101,176
1944: January-July
January
February
March
April
May
June
July
864, 634
89, 887
101,705
121,210
127, 429
139. 748
145,893
138,762
Percent
Percent
Total
Percent
Total
Percent
Total
Total
1942
1943
July
August- . .
September
October
_
November
December.
1944
January
February
March
April
May
June
July..
19.7
18.4
19.1
19.0
19.4
18.3
20.1
$79,585
15,329
15,061
15,332
15,023
15,141
12,227
3.9
4.4
4.2
4.0
3.9
4.3
3.7
449,737
78,594
78,455
83,320
87,430
82,307
76,432
21.9 $302, 217
22.3
50,835
22.1
50,416
21.9
59,435
22.6
61,002
23.3
56,415
23.1
52,267
14.7 $2,054,195
14.5
351,516
14.2
355,432
15.6
380,809
15.8
386,303
16.0
353,673
15.8
330,989
100.0
100.0
100.0
100.0
100.0
100 0
100.0
33.4
29.8
32.8
32.9
34.5
34.5
34.6
33.7
6.8
6.1
6.1
5.3
5.4
5.3
6.0
504,928
62,180
60,346
70, 570
72, 438
79, 083
79, 453
80, 858
19.5
20.6
19.5
19.2
19.6
19.5
18.8
19.7
88, 297
9,731
9,294
11,255
12,338
14, 882
15, 536
15, 261
3.4
3.2
3.0
3.1
3.4
3.7
3.7
3.7
616, 512
72,600
72,246
89,136
89,466
95, 730
99,140
98,194.
23.9
24.0
23.3
24.2
24.2
23.6
23.5
23.9
14.0
15.6
15.3
14.5
13.0
13.3
14.1
13.0
100.0
100.0
100.0
1C0.0
100.0
100.0
100.0
100.0
150, 385
20, 585
18,753
22, 660
19, 671
21, 794
22, 215
24, 707
Tabic
Redemptions
SeriesF
Series G
Total
$1,622,496
$207,681
$1,184,868
$3,015,045
$13,601
5,988,849
652,044
2,516,065
9,156,958
245, 547
10,344,369
682,871
661, 200
1,400,159
1,340,148
665, 293
727, 558
745,123
37, 579
28,095
138, 984
93,124
23,449
24,081
2,639,908
169, 241
112, 434
387,412
274.877
109,404
101,378
13,729,402
889, 691
801,729
1, 926,555
1,708,150
798,146
853,017
1, 506,894
131,424
144,966
148, 498
137,496
164,412
200,840
486,942
521,702
110,347
113,528
111,088
377, 284
337, 459
126,825
157,422
22,933
19,306
15,287
115,119
101,082
362,207
46, 966
47,300
53. 409
47,926
53, 858
59 394
53, 354
11-SAVINGS-Held
2, 586, 963
301,9^9
309,644
368,240
369, 268
405.095
421, 631
411,163
by
institutions
[Thousands of dollars]
SeriesE
1,084,637
2,102,345
575, 714
605,709
624, 253
1,349,794
1,686, 509
Percent
Total
7.9 $405, 594
7.3
64,766
6.8
68,043
6.3
72,140
6.5
74,875
6.5
64,877
6.7
66,699
[Thousands of dollars]
1941«
Percent
Total
31.9 $161, 345
33.1
25, 586
33.6
24,072
33.2
23,996
31.8
25,141
31.6
23,115
30.6
22.188
Table 1 0 . — S A V I N G S — S a l e s of war bonds 1
Period
Percent
1,698,404
2,781,469
709,054
738,543
750,628
1, 842,197
2,125,051
Insured
savings a n d
loans i
E n d of period
180,965
177,980
261, 549
230,614
271, 597
241, 278
220,145
i U. S. Treasury War Savings Staff, Actual deposits made to the credit of
the U S. Treasury.
* Prior to May 1941: "Baby Bonds."
1942: J u n e
December.
1943: J u l y
August
September
October
N o v e m b e r . ._.
December
1944: J a n u a r y
February
March
April.
May
June
.
July
$2,736, 258
2,983,310
3, 318,900
3, 362,380
3,389,891
3, 435,798
3, 488, 270
3, 573,896
Mutual
savings
banks2
Insured
commercial
banks»
$10,354,533
10, 620,957
$13,030, 610
13,820,000
$1,315, 523
1,417,406
16,157,993
1, 620,194
1, 659, 545
1, 683,381
1,715, 579
1,752,439
1,787,879
11,707,000
1,833,145
1,866, 563
1,905,748
1,946,372
1,994,268
2, 034,137
2,081,946
3,7i6,356
3, 922, 705
Postal
savings *
12, 428,026
* Private repurchasable capital as reported to the F H L B Administration.
* Month's Work. All deposits.
* F D I C . Time deposits evidenced by saving passbooks. Estimated since
June 1942.
4
Balance on deposit to credit of depositors, including unclaimed accounts.
July total is unaudited.
Table 1 2 . — F H L B A N K S — L e n d i n g operations and principal assets and liabilities
[Thousands of dollars]
L e n d i n g operations
J u l y 1944
Federal H o m e Loan Bank
Advances
Boston
_ ._
New York..
.
Pittsburgh
_
Winston-Salem _
Indianapolis .
Chicago
Des Moines
L i t t l e Rock
Topeka
.
_
_.
_
-
. . .
_ .
- _ . - - --
_._
._
Los Angeles
_ . . - .
_
.
. .
. ._ __
..
Repayments
P r i n c i p a l assets J u l y 31, 1944
Advances
outstanding
Cashi
Government
securities
C a p i t a l a n d principal liabilities
J u l y 31, 1944
Capital2
Debentures
$5, 972
3,241
1,131
2,016
1,350
2,022
4,309
1,927
545
1,297
2.085
2, 586
$1,204
2,859
1,612
1,861
1,523
984
5,096
1,366
285
613
885
2,353
$12,903
20,504
12,041
9,091
8,992
10,988
18,427
9,245
5,136
5,728
3,736
19,327
$1,076
1,233
2.231
869
1,966
760
3,987
1,499
2,092
927
595
1.419
$9,913
18,645
8,573
8,003
22,984
11,118
11,291
8,037
8,168
7,566
5,979
5,778
$19,812
27, 335
16, 700
17, 751
25, 476
14,306
22, 683
12, 574
12, 447
10, 633
8,481
15,821
$3,000
10,000
6,000
0
5,000
6,500
7,000
5,000
3,000
3,000
1,000
8,500
Member
deposits
T o t a l assets
J u l y 31,
19441
$1,172
3,219
235
286
3,625
2,161
4,131
1,287
25
659
874
1,274
$23,988
40,583
22,949
18,037
34,111
22, 982
33,826
18,868
15, 475
14, 296
10,357
26,608
(All B a n k s ) J u l y 1944
28, 481
20, 641
136,118
18, 654
126,055
204,019
58,000
18, 948
282,080
J u n e 1944.
64,833
8,162 ;
128,278
22,657
131,973
203,479
58,000
21,360
283, 693
J u l y 1943
18,650 i
17.301
91, 541
19,200
155,056
196,380 1
35.000
30,895
266.926
1
342
Includes interbank deposits.
2
Capital stock, surplus, and undivided profits.
Fed eta I Home Loon Bank Review
Table 1 3 - i N S U R E D
ASSOCIATIONS
Progress of institutions insured by the FSLIC *
[Dollar a m o u n t s are shown in t h o u s a n d s ]
Operations
l
Number of
associations
Period a n d class
of association
ALL
Total
assets
New
New
private
mortgage investloans
ments
P r i v a t e | xue„
r
? P u r " I chase
$97,117
50, 250
60, 019
45,104
43,137
37,885
72.4
53.3
71.5
51.4
47.9
32.0
153, 276
94,831
104,494
103, 713
109, 049
127, 945
155, 218
104, 839
59, 890
56, 693
48, 392
44, 403
46, 560
120, 349
68.4
63.2
54.3
46.7
40.7
36.4
77.5
87,444
61, 351
53,138
56, 490
57, 915
76,677
64,073
31, 253
37, 274
26,825
24, 373
21,569
73.3
50.9
70.1
47.5
42.1
28.1
1943: J u l y
Aug
Sept
Oct
Nov
Dec
2,435
2,433
2,440
2,439
2,442
2,447
1944: J a n
Feb
March
Apr
May
June
July
2,451
2,453
2,452
2,453
2,459
2,461
2,463
4, 218, 521 59, 704
4, 287, 788 73,164
4, 327,868
87,163
4, 374, 338 91, 344
4, 442, 608 97, 454
4, 583, 568 105, 245
4, 619, 867 93, 305
1,468
1,466
1,471
1,468
1,467
1,466
2,
2,
2,
2,
2,
2,
1,467
1,467
1,466
1,466
1,466
1,465
1,466
2,637, 410
2, 685, 310
2, 709,897
2, 737,017
2, 775, 665
2,881, 276
2. 907, 974
967
967
969
971
975
981
1, 466, 582
1. 482,049
1, 514,189
1,530,499
1, 546, 731
1, 565, 297
29, 624
31, 896
33, 778
31,353
28,132
27, 326
46, 621
32,878
30, 832
31, 202
32,108
41, 819
33, 044
18, 997
22, 745
18, 279
18, 764
16, 316
70.9
57.8
73.8
58.6
58.4
39.0
987
993
996
997
1,581,111
1,602, 478
1, 617, 971
1, 637, 321
1, 666,943
1, 617, 971
1,711,893
22, 628
29,020
33, 280
34, 299
38, 225
33, 280
36,141
52, 780
33, 286
36, 218
35,164
36, 636
36, 218
53, 718
36, 330
22, 342
20, 511
18,113
16, 727
20, 511
40, 614
68.8
67.1
56.6
51.5
45.7
56.6
75.6
$3, 875, 269 $77, 994 $134,065
94, 229
3,920,852
83,068
83, 970
4,037, 926
87,878
87, 692
4, 081, 472 81, 929
90,023
4,127,212
72, 936
4,182, 728
70, 973 118, 496
FEDERAL
___
1944: J a n
Feb
March
April
May
June
July
408, 687
438,803
523, 737
550, 973
580, 481
617,431
48, 370
51,172
54,100
50, 576
44, 804
43, 647
68.2
61.0
53.0
44.2
38.2
31.0
78.6
STATE
1943: J u l y
Aug
Sept
Oct
Nov
Dec
...
1944: J a n
Feb
March
April
May
June
July
....
1
Balance sheet i t e m s , formerly s h o w n each m o n t h , n o w a p p e a r o n l y in t h e
F e b r u a r y , M a y , A u g u s t , a n d N o v e m b e r issues of t h e R E V I E W S
Table 14.—FHA—Home mortgages insured1
[ P r e m i u m p a y i n g ; t h o u s a n d s of dollars]
Title I I
Period
Title V I
New
1943: J u l y
August
September
October...
November.
December.
1944:
Membership of Federal Savings and
Loan Advisory Council
•
INSURED
1943: J u l y
Aug
Sept
Oct
Nov
Dec
Table 1 5 . — F O R E C L O S U R E S — n o w a p p e a r s
quarterly in the February, May, August and November issues.
January...
February..
March
April
May
June
July
Existing
Total
insured
at e n d of
period 2
$2,424
1,563
1,479
818
833
747
$18, 502
18, 519
18, 737
18,856
20,499
17, 401
$43, 445
49, 518
46. 365
48, 571
48, 421
42,979
$5,090,767
5,160.367
5,226,948
5, 295,193
6; 364,946
5,426,073
592
249
250
130
81
81
82
18,397
13, 795
12, 729
13,200
18, 319
17, 768
18, 322
49,003
40,616
41,620
36, 793
37, 739
34.238
42, 313
5,494,065
5, 548, 725
5,603,324
5,653,447
5, 709, 586
5.7G1.G73
5, 822, 390
1
Figures represent gross insurance w r i t t e n d u r i n g t h e period a n d d o not t a k e
a c c o u n t of principal r e p a y m e n t s o n previously i n s u r e d loans.
2
I n c l u d e s T i t l e I, Class 3, a m o u n t s t h a t were s h o w n prior t o J a n u a r y 1943.
September 1944
T H E Federal Home Loan Bank Administration
has recently announced the membership of the
Federal Savings and Loan Advisory Council for
1944-1945. This Council, composed of one member
elected annually by the board of directors of each
Federal Home Loan Bank and six members appointed by the Federal Home Loan Bank Commissioner, meets twice a year to confer on problems
relating to the field of thrift and home finance.
Membership of the new Advisory Council is still
incomplete inasmuch as the Winston-Salem and
Des Moines Banks have not yet held elections to fill
these positions.
Elected:
Boston:
R a y m o n d P . Harold, Worcester Co-Operative
Federal Savings a n d Loan Association, Worcester,
Massachusetts (re-elected).
New York: J. Alston Adams, Westfield Federal Savings a n d
Loan Association, Westfield, New Jersey.
Pittsburgh: James J. O'Malley, First Federal Savings a n d
Loan Association of Wilkes-Barre, Wilkes-Barre, Pennsylvania (re-elected).
Winston-Salem:
N o election reported.
Cincinnati: W m . Megrue Brock, T h e Gem City Building a n d
Loan Association, D a y t o n , Ohio (re-elected).
Indianapolis: Walter Gehrke, First Federal Savings a n d Loan
Association, Detroit, Michigan (re-elected).
Chicago: Arthur G. E r d m a n n , Bell Savings a n d Loan Association, Chicago, Illinois (re-elected).
Des Moines: N o election reported.
Little Rock: J. J. Miranne, Security Building a n d Loan
Association, New Orleans, Louisiana (re-elected).
Topeka: R a y H . Babbitt, H o m e Building a n d Loan Association of Lawton, Lawton, Oklahoma.
Portland: Keith Powell, Salem Federal Savings a n d Loan
Association, Salem, Oregon.
Los Angeles: J. K. Baillie, Los Angeles Federal Savings a n d
Loan Association, Los Angeles, California.
Appointed:
Joseph H . Soliday, Franklin Savings Bank, Boston,
Massachusetts.
Charles S. Tippetts, T h e Mercersburg Academy, Mercersburg, Pennsylvania.
H e r m a n B. Wells, I n d i a n a University, Bloomington,
Indiana.
Ben H . W^ooten, Republic National Bank, Dallas, Texas.
William M. Jardine, University of Wichita, Wichita,
Kansas.
D a v i d G. Davis, R a p h a e l Weill & C o m p a n y , San
Francisco, California (re-appointed).
343
QUARTERLY TABLES
Table 1 6 . — H O L C — M o r t g a g e loans outstanding and properties on hand
Table 17 - G O V E R N M E N T
SHARES
Investments in member associations 1
[Dollar amounts are shown in thousands]
D u e on
property
sold
D u e on
original
loans
Period
[Dollar amounts are shown in thousands]
Properties owned
H o m e Owners' Loan Corporation
Treasury
Book value N u m b e r
1940: J u l y
$1, 718,155
$284, 524
$382,395
60, 470
1941: J u l v
1, 502, 710
351,868
298,165
43, 933
1942: J u l y
1,293,416
363, 578
250,126
34,672
1, 059,151
1, 038, 512
1,018,805
997,970
978, 074
959,818
359,394
361,356
364, 506
370, 447
376,318
378, 284
179,103
165, 667
149, 788
129, 005
108, 099
94,140
23, 728
21, 943
19,915
17, 217
14, 509
12. 744
194o: J u l y
August.
_ .
September
.
October__
November _ _
December. _ . -
.- .
.. _ _
1944: J a n u a r y
._ __
February
March
April.._
. . . . ._ -_
May
June.. . . . . .
July
1
378, 248
377, 518
376, 205
375, 093
373, 732
373,732
370, 059
939,852
921, 987
902,923
885,304
856, 889
847,180
828,977
T y p e of operation
1
Federals 2
Oct. 1935-June 1944:
Applications:
Number. _
.... .
Amount
. .
Investments:
Number . .
Amount
Repurchases
N e t o u t s t a n d i n g investm e n t s . ._ .
Second q u a r t e r 1944:
Applications:
Number
Amount . ..
Investments:
Number
Amount
Repurchases
11,267
10, 160
8.955
7.735
6.413
5. 042
4, 245
82, 571
73.789
64. 683
55.456
45, 576
34,890
28,771
State
members
Federals
Total
1,862
$50, 401
4, 708
$213, 601
997
$66.595
5. 705
$280, 196
1,831
$49, 300
$44,573
4, 241
$178,316
$142, 726
740
$45, 541
$34, 602
4,981
$223,857
$177,328
$35, 590
$10, 939
$46, 529
0
0
0
0
0
0
0
0
0
00
$14
$47
0
0
$27
0
0
$74
$4,727 '
_
__
1
Refers to number of separate investments, not to number of associations in
which investments are made.
2
Investments in Federals by the Treasury were made between December
1933 and November 1935.
Includes reacquisitions of properties previously sold.
Table 18.—FHA—Insured home mortgages (Titles II and V ! ) he!d, by class of institution
l
[Thousands of dollars]
Commercial
banks
M u t u a l savings b a n k s
Savings a n d
loan associations
$2, 074, 739
2, 409,197
$1,008,147
1,142, 949
$117, 851
149, 239
$208, 218
224, 328
$431, 527
541, 561
$182, 327
201,032
$126, 6«9
150, 089
2, 754, 725
3,115,616
1, 300, 734
1, 447,101
174, 706
205, 748
237, 056
255, 296
668, 069
791, 617
220,400
233, 628
153, 760
182, 226
3, 551, 421
3, 795, 519
1, 614, 362
1, 694, 963
242. 6] 9
263, 825
277, 704
288, 618
966, 440
1, 095, 276
245, 206
251,871
205,058
200, 973
1943: J u n e
December _
4, 153, 657
4, 308, 362
1,819,942
1, 894, 913
301,058
328, 041
319,147
345, 938
1, 231, 638
1, 374, 570
259, 495
116,330
222, 377
248,570
1944: J u n e
4, 514,290
1,929,054
371,071
371,947
1,465,561
133, 042
243,615
Total
C u m u l a t i v e t h r o u g h e n d of m o n t h
1940: J u n e
December
1941: J u n e
.
1942: J u n e
December
1
2
3
.
_
. ... .
.
. . . .
._
Insurance
companies
Federal
agencies 2
Others 3
Original face amount of mortgages held; does not mclude terminated mortgages and cases in transit to or being audited at the Federal Housing Administration.
The RFC Mortgage Company, the Federal National Mortgage Association, and the United States Housing Corporation.
Includes mortgage companies, finance companies, industrial banks, endowed institutions, private and State benefit funds, etc.
Table 19.—FHLBS—Membership in the Federal Home Loan Bank System
[Dollar amounts are shown in thousands]
1944
June
T y p e of i n s t i t u t i o n
1
March
1943
1942
June
June
1
No.
All m e m b e r s
. .
Savings a n d loan associations . _
Federal
Insured State .
Uninsured State.
. .
.
M u t u a l savings b a n k s
...
Insurance companies
344
. . . . . . .
_
.
. .
. ..
. .
.. _
.
. ..
__ ._ ._
Assets
3,714
$6,840,241
3,671
1,465
992
1,214
22
21
5,962,319
2,881,276
1,696.352
1,384,691
463,580
414,342
j
No.
3,731
i
i
!
!
j
!
3,688
1,466
982
1,240
22
21
Assets
$6, 531, 180
5,
2,
1,
1,
690, 372
709,897
612, 275
368, 200
451, 429
389, 379
No.
Assets
No.
Assets
3,774
$6, 045, 016
3,815
$5, 643, 970
3,729
1,468
956
1,305
22
23
5, 249, 414
2, 426, 079
1, 449, 255
1, 374, 080
428, 566
367,036
3, 772
1,464
906
1,402
17
26
4, 885,049
2, 205, 921
1, 249, 530
1, 429, 598
340,838
418,083
Federal Home Loan Bank Review
NO. 10—TOPE K A
Honor Roll
(Continued from p. 330)
Independence Savings and Loan Association, Independence, Mo.
Missouri Building and Loan Association, St. Louis, Mo.
Montevideo Building and Loan Association, Montevideo, Minn.
Oelwein Federal Savings and Loan Association, Oelwein, Iowa
Perry Federal Savings and Loan Association, Perry, Iowa
Richmond Savings and Loan Association, Richmond, Mo.
Standard Federal Savings and Loan Association, Kansas City, Mo.
Wells Federal Savings and Loan Association, Wells, Minn.
NO. 9—LITTLE ROCKJ
Amory Federal Savings and Loan Association, Amory, Miss.
Atlanta Federal Savings and Loan Association, Atlanta, Tex.
Batesville Federal Savings and Loan Association, Batesville, Ark.
Chaves County Building and Loan Association, Roswell, N. Mex.
Clay County Federal Savings and Loan Association, West Point, Miss.
Commerce Federal Savings and Loan Association, Commerce, Tex.
Corsicana Federal Savings and Loan Association, Corsicana, Tex.
Cuero Federal Savings and Loan Association, Cuero, Tex.
Davy Crockett Federal Savings and Loan Association, Crockett, Tex.
Delta Federal Savings and Loan Association, Greenville, Miss.
Electra Federal Savings and Loan Association, Electra, Tex.
El Paso Federal Savings and Loan Association, El Paso, Tex.
Equitable Building and Loan Association, Forth Worth, Tex.
Equitable Building and Loan Association, Roswell, N. Mex.
First Federal Savings and Loan Association, Belzoni, Miss.
First Federal Savings and Loan Association, Canton, Miss.
First Federal Savings and Loan Association, Corpus Christi, Tex.
First Federal Savings and Loan Association, Dallas, Tex.
First Federal Savings and Loan Association, El Paso, Tex.
First Federal Savings and Loan Association, Helena, Ark.
First Federal Savings and Loan Association, Little Rock, Ark.
First Federal Savings and Loan Association, Lubbock, Tex.
First Federal Savings and Loan Association, Marshall, Tex.
First Federal Savings and Loan Association, New Braunfels, Tex.
Glade water Federal Savings and Loan Association, Glade water, Tex.
Greater New Orleans Homestead Association, New Orleans-, La.
Jennings Federal Savings and Loan Association, Jennings, La.
Morrilton Federal Savings and Loan Association, Morrilton, Ark.
Mutual Building and Loan Association, Las Cruces, N. Mex.
Nashville Federal Savings and Loan Association, Nashville, Ark.
Natchez Building and Loan Association, Natchez, Miss.
Piggott Federal Savings and Loan Association, Piggott, Ark.
Pocahontas Federal Savings and Loan Association, Pocahontas, Ark.
Ponchatoula Homestead Association, Ponchatoula, La.
Riceland Federal Savings and Loan Association, Stuttgart, Ark.
St. Tammany Homestead Association, Covington, La.
Teche Federal Savings and Loan Association, Franklin, La.
Tucumcari Federal Savings and Loan Association, Tucumcari, N. Mex.
Purchases a n d holdings of U. S. Government
o b l i g a t i o n s , b y reporting member institutions
[Dollar a m o u n t s are shown in thousands!
Date
Number
reporting
Purchases
during
month
Holdings
at end of
month
1943
January
February
March
April
May
June
July_____
August
September
October
November
December
2, 775
2, 721
2, 732
2, 744
2, 642
2,447
2,431
2,452
3, 035
2, 460
2, 387
2,287
$39,
22,
29,
177,
17,
13,
32,
21.
327,
IS,
13,
12,
1944
January
February
March_.
April
May
J u n e and Jul v.
2, 594
2,597
2, 564
2,567
2,499
2,735
166, 322
98, 408
25, 312
16, 404
11,040
380, 245
September 1944
996
083
234
536
739
432
131
534
950
881
883
083
$365, 105
376, 390
388, 170
537, 849
548, 552
530, 657
553, 533
537, 254
973, 026
772, 309
724, 538
713, 992
914, 683
995, 425
1, 043, 581
1, 041, 714
1, 027, 055
1, 378, 660
Brighton Federal Savings and Loan Association, Brighton, Colo.
Broken Arrow Federal Savings and Loan Association, Broken Arrow, Okla.
Capitol Federal Savings and Loan Association, Topeka, Kans.
First Federal Savings and Loan Association, Englewood, Colo.
First Federal Savings and Loan Association, Lincoln, Nebr.
First Federal Savings and Loan Association, WaKeeney, Kans.
First Federal Savings and Loan Association of Sumner County. Wellington,
Kans.
Home Federal Savings and Loan Association, Tulsa, Okla.
Midland Federal Savings and Loan Association, Denver, Colo.
Nebraska City Federal Savings and Loan Association, Nebraska City, Nebr.
Peoples Federal Savings and Loan Association, Tulsa, Okla.
Prudential Building and Loan Association, Great Bend, Kans.
Reserve Building and Loan Association, Oberlin, Kans.
Sapulpa Federal Savings and Loan Association, Sapulpa, Okla.
Schuyler Federal Savings and Loan Association, Schuyler, Nebr.
Valley Federal Savings and Loan Association, Hutchinson, Kans.
NO. 11—PORTLAND
Cheyenne Federal Savings and Loan Association, Cheyenne, Wyo.
Deer Lodge Federal Savings and Loan Association, Deer Lodge, Mont.
First Federal Savings and Loan Association, Klamath Falls, Oreg.
First Federal Savings and Loan Association, Salt Lake City, Utah
First Federal Savings and Loan Association, Sheridan, Wyo.
First Federal Savings and Loan Association, The Dalles, Oreg.
NO. 12—LOS ANGELES
California Savings and Loan Company, San Francisco, Calif.
Central Federal Savings and Loan Association, San Diego, Calif.
Century Federal Savings and Loan Association, Santa Monica, Calif.
First Federal Savings and Loan Association, Fullerton, Calif.
Liberty Savings and Loan Association, Los Angeles, Calif.
Newport Balboa Federal Savings and Loan Association, Newport Beach, Calif.
Oceanside Federal Savings and Loan Association, Oceanside, Calif.
Santa Maria Guarantee Building-Loan Association, Santa Maria, Calif.
Standard Federal Savings and Loan Association, Los Angeles, Calif.
Troy Looks A h e a d
•
A survey, sponsored by the Troy Savings Bank,
has, through interviews writh one out of every 15
families in every section and income group in the
area, explored the post-war outlook of Troy, New
York.
Troy residents intend, after the war, to spend
$57,297,900. Of this, $25,992,000 will be spent by
4,560 families to build homes; 2,340 families intend
to invest $15,210,000 in buying homes already built;
and modernization and improvement, at a cost of
$2,956,500, will be undertaken by 12,140 households.
The comment was that saving in itself will not
make jobs, but with "properly timed spending" it is
a means toward community prosperity. Of the
funds which will be on hand after the war, more than
half represent systematic war bond buying. Regular saving now is reported by 85 percent of the men
and 83 percent of the women; in addition, 72 percent
state that another member of the household is saving
consistently.
I t is interesting to note that 54 percent of the
people in the Troy area approve of a fixed program
of saving. Others, however—42 percent—are of the
opinion that enforced saving is undemocratic.
The study also uncovered some facts on probable
population shifts, a point which is of interest to the
local businessman. Despite the influx of war workers into the Troy region, it was found that nine out
of ten families plan to remain in the city.
345
INDEX OF VOLUME TEN
FEDERAL HOME LOAN BANK REVIEW
•
FOR the convenience of readers in finding references, the pagination of each issue of Volume 10
is listed below. The titles of all articles appear in
italics.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
Volume 10
1—October
2—November
3—December
4—January
5—February
6—March
7—April
8—May
9—June
10—July
11—August
12—September
Pages
.
1-28
29-56
57-88
89-116
117-152
153-174
175-202
203-230
231-258
259-290
291-318
319-350
Advisory Council, Federal Savings and Loan:
page
membership for 1944-1945
343.
Advisory Council Recommends Precautions
207
" American Housing—Prospects and Problems''—
Twentieth Century Fund
208
Amortization, illustrative m e t h o d s for combating
inflation
91
Analyzing a Peak Year in Liquidity
205
Asset a c c o u n t s :
liquidity position of insured associations
63, 205
trends of, in insured associations (1942-1943)
263
trends of, in member associations
298
trends of, in all operating savings and loan associations
67
B
Balance sheets:
analysis by city-size groups of selected, items of
Federals
of all operating savings a n d loan associations
(1943-1942)
of F H L Banks (consolidated and combined)
145,
of insured associations
of member associations
Blandford, John B., Jr.
war-housing report on progress and prospects
8,
Britain:
.building societies in 1943
" g u a r a n t e e d " homes in
reconstruction program
requisitioning of houses in
tax experience in
t e m p o r a r y prefabricated houses in
wartime lending in
346
Page
British Building Societies Merge
Building Codes—Present and Future
Building costs (monthly analysis and index table of
costs of s t a n d a r d house in selected cities, published
in each issue):
s u m m a r y of 1943 trends in
Building materials:
post-war prospects for simplification of
supply of, estimated for post-war construction
Building societies, British:
mergers of
28,
operations (1943) a n d post-war role of
Building Societies in British Reconstruction
Broadening
Concept of the City Problem Over Two
Decades
Bulletins of the Commissioner (see FS&L System and
Insurance of Accounts, Rules and Regulations).
Business conditions (analysis of business conditions
published in each issue):
s u m m a r y of 1943 trends in
Census, 1940, geographic characteristics of homes
Census Estimates Value of U. S. Dwelling Units
Chapter on Internal Checks Added to Accounting Guide
Commercial b a n k s :
mortgage loans made and held by
238,
real estate owned by
36,
trends of private savings invested in
Commissioner Fahey on Inflationary Lending
Commissioner Fahey Reports on HOLC
Commissioner
Fahey
Warns
Against
Inflationary
Lending
Construction (see also residential construction):
order P - 5 5 - C amended
U. S. D e p a r t m e n t of Commerce report, 1943
Construction
Industry—Its
Post-War
Capacity
and
Place in Reconversion
328
157
123
38
270
328
212
212
177
119
159
21
81
321
238
238
61
154
236
152
90
270
184
308
205
298
267
212
43
212
39
297
289
201
Defense Homes Corporation, war housing projects sold_
153
Directors, F H L B — a p p o i n t m e n t , d e s i g n a t i o n , a n d
election of
104, 121, 183, 228, 244
Directory of member, Federal, a n d insured institutions published in each issue
Dividend and Interest-Rate Structure of Member Associations
99
Dividends:
table of, paid or declared by F H L Banks (19431944)
"_
144,309
trends in
130
England (see Britain).
Expansion of the National
Economy-
119
Federal Home Loan Bank Review
F
Fahey, J o h n H .
Page
anti-inflation warning
_ 61, 236
report on H O L C by
154
Federal H o m e Loan Banks (summary and table of lending a n d balance-sheet items published in each issue;
combined consolidated s t a t e m e n t s of condition, dividends paid or declared, interest rates charged, p u b lished in F e b r u a r y a n d August).
debentures
144
s u m m a r y of trends
143, 308
Federal Housing Administration (table of insurance
operations—Title I—Class 3 published each m o n t h
through F e b r u a r y ; Titles I I a n d VI published each
m o n t h ; Title I I d a t a on holdings by t y p e of institution published in S e p t e m b e r ) :
anniversary of, 1934-1944
276
authorized funds increased
30, 292
life insurance company holdings of, mortgages
5, 325
loans covered by, a n d those outstanding (1943) __
321
repair and reconditioning loans
30, 204
savings and loan participation in, lending
56
trends in, insurance (1943)
123
FHLBA Program to Curb Inflation in Home Finance__
237
F H L B System (see also F H L B a n k s ) :
analysis by size-group of members of
96
combined s t a t e m e n t of members of
308
operating s t a t e m e n t of m e m b e r s of, (1942)
2
s u m m a r y of trends in (1943 a n d 1944)
143, 299
Federal Public Housing Authority, p a y m e n t s in lieu of
taxes
152, 277
Federal savings and loan associations (analysis a n d
tables of operations a n d lending activity of, p u b lished in each issue):
analysis of, by city-size group
184
Federal Savings a n d Loan Insurance Corporation
(analysis a n d tables on progress of insured associations published in each issue):
a m e n d m e n t s to rules a n d regulations of, (see
Insurance of Accounts)
a p p o i n t m e n t of William H. H u s b a n d as General
Manager
211
history of (1934-1944)
261
liquidity of associations insured by
205
rehabilitation program in New Jersey
33
report of operations
142
trends in associations insured by, (1934-1944)
263
FS&L System, Rules and Regulations, a m e n d m e n t s t o :
additional
lending
powers
for
associations
operating under Charter K
62
voting rights of members
228
repeal of provision regarding conversions
303
Forecast for 1944:
sumary of prospects in residential construction,
home financing, and related business
fields
131
Foreclosures (estimated nonfarm real estate foreclosures published in each issue through F e b r u a r y a n d
quarterly thereafter):
s u m m a r y of trends
126
Geographic Characteristics
September 1944
of Homes-
159
H
Page
Home Front (pertinent items of civilian war activities
published each m o n t h , indexed by subject).
Home-Mortgage Debt Declines Again
Home-mortgage debt, nonfarm:
held by selected financial institutions
238,
trends in
124,
Home Owners' Loan Corporation (tables on operations
and investments published quarterly from M a r c h ) :
mortgage loans m a d e a n d held by
real estate owned by
report on, by Commissioner Fahey
Home Purchase Loans Swell the 19^3 Volume of Mortgage Lending
Honor roll of war-bond sales by member savings a n d
loan associations (published in each issue).
How Can Local Institutions
Help to Stem the Tide of
Over-Lending?
How Many Families in Post-War America?
Increased Stability of Share Capital
Inflation:
Advisory Council recommends measures to curb_
Commissioner Fahey warns against
61,
F H L B A program t o curb, in lending
illustrative methods for combating, in mortgage
lending
I n s t a l m e n t credit, c o n s u m e r — N H A a m e n d m e n t t o
Regulation W
Insurance of Accounts, Rules and Regulations, amendments to:
issuance of securities by insured associations-Insured associations:
history of operations of (1934-1944)
rehabilitation program for, in New Jersey
regional comparison of balance-sheet items
share capital trends in
Interest r a t e s :
F H L B , on advances a n d deposits (1943-1944)
144,
mortgage, reported by member associations (1942) _
321
321
321
321
36
154
31
91
66
181
207
236
237
91
71
43
261
33
63
181
309
99
L
Life insurance companies:
mortgage holdings of a n d investments by, (1942
a n d 1943)
_"
5,325
real-estate owned by
36
Life Insurance
Mortgage Lending
Concentrates
on
Homes
5
Local Lenders in the Prefabricated Age
58
Low-cost Housing Opportunities for the
Prefabrication
Industry
233
Lumber:
conservation procedures
176
outlook for 1944
221
priorities
320
M
" M a n u a l of Office Administration"
Member Associations Showed Further Improvement
Year
Mortgage insurance (see F H A ) .
204
Last
298
347
Mortgage lending (analysis a n d tables of lending ac- Page
t i v i t y published in each issue):
activities of life insurance companies
5,325
activities of m u t u a l savings a n d insured commercial banks
238, 321
analysis by city-size groups of, by Federals
184
inflationary t r e n d s in
31,91
policies t o combat inflation
91, 152
t r e n d s in
31,63,126,155
t r e n d s in, by insured associations (1934-1944)___
263
t r e n d s in, by m e m b e r associations
298
T w e n t i e t h C e n t u r y F u n d suggestions r e g a r d i n g . .
207
Mortgage m o r a t o r i a :
effect of draft on
14
U. S. Supreme Court decision
70
Mortgage recordings (analysis and tables of estimated
volume published in each issue):
t r e n d s in
124
M u t u a l Ownership Plan
30
M u t u a l savings b a n k s :
asset distribution
238
money order sales increase
277
mortgage holdings of
238, 321
real estate owned by
36
t r e n d s of p r i v a t e savings invested in
238
N
National Housing Agency:
a m e n d m e n t t o Regulation W
regional office changes
New British Giant
New Jersey, rehabilitation program for insured associations
.
1943 Pattern of Mortgage Lending Shown in Selected
States
1944—A Bridge to Peace
155
131
Operating ratios—analysis by city-size group
Federal association
Operating Statements Show Continued Improvement
184
2
91
90
28
33
of
P
Population:
post-war, estimated by Census Bureau
66
probable shifts (map)
56
t a x receipts and, changes
277
Post-war Bookshelf (published each m o n t h ) .
Post-war building:
estimates of
71, 245, 270
simplification of, materials
38, 270
Post-war housing:
Blandford report
__. 8,267
financing plans for
15, 90
F P H A plans for
30
municipal funds for
245
New York State
56
prefabrication in
58, 233
T w e n t i e t h Century F u n d appraisal
208
U. S. C h a m b e r of Commerce survev
15
348
Post-war planning:
Page
city surveys
90, 134, 1 7 6 , 2 7 7 , 3 2 0 , 3 4 5
Committee for Economic Development
276
Pref abrication:
British use of
289
building codes as affected by
157
post-war prospects for construction, sales and
financing
58, 157, 233
Private savings, trends in, s u m m a r y of
129
Prospects for Post-war Simplification of Building
Materials
38
Real Estate and Mortgage Finance in 1943
124
Real-estate occupancy:
National Association of Real E s t a t e Boards survey
14, 245
Real-estate owned:
distribution of, held by selected financial institutions
36
summary
126
trends in, held by m u t u a l savings a n d insured
commercial b a n k s
238
trends in, held b y member associations
298
Real-Estate Tax Problems and Proposed Reforms
293
Regional Influences of the War in 1943 Operations of Insured Associations
63
R e n t control:
a m e n d m e n t s to Act
14
results of
70
Rentals (BLS index published in each issue).
Report on War Housing Progress and a Look to the
Future
267
Repurchase ratio (data for all savings a n d loan associations published in each issue):
trends in, for all member savings a n d loan associations
298
trends in, of insured savings and loan associations.
181
Residential construction:
Blandford report
8, 267
forecast for 1944
131
post-war prospects for
15, 30, 71, 270
pref abrication in
58, 233
recommendations by T w e n t i e t h C e n t u r y F u n d
208
trends in, (1940-1943)
122
Residential real estate, overhang
36
Review of 1943:
trends in regional a n d national vital statistics of
the savings a n d loan industry, a n d general business
conditions. (Entire F e b r u a r y issue is a year-end
survey number)
119
Rules and Regulations, a m e n d m e n t s to {see F S & L
System a n d Insurance of Accounts).
Saving for Victory
Savings (table of selected private long-term savings a n d
sales of U. S. War bonds published in each issue):
record gross
s u m m a r y of trends in, (1943)
trends in, in m u t u a l savings a n d insured commercial banks
129
277
129
238
Federal Home Loan Bank Review
Savings and loan associations (see also specific sub- Page
jects):
analysis of member, by city-size groups
96
New York, sell money orders a n d travel checks _ _
176
rehabilitation program of, in New Jersey
33
Savings and Loan Industry in 1942
67
Savings and Loan Rehabilitation in New Jersey
33
Savings and Loans Follow the Urban Trend
96
Savings and Loans in a Wartime Economy
126
Savings and Loan Operations in City, Suburb and S?nall
Town
184
Savings and Real-Estate Operations of Banks in the
Second Year of War
238
Share capital, private (table showing trends in, share
investments a n d repurchases by class of association
published in each issue):
analysis of, by city-size group of Federals
184
trends in, for insured associations
205
Sixth District Members First to Gain
Predominant
Interest in FHL Bank
324
" S t a n d a r d h o u s e " (monthly analysis a n d table of building cost index published in each issue).
State-chartered savings and loan associations (analysis
a n d tables of operations of insured associations a n d
of lending activity published in each issue).
S t a t e m e n t of condition (see balance sheets).
Statistical Supplement (published with March issue).
" S t o p Construction" Order, a m e n d m e n t s to
14, 70
Survey of American Housing, Its Prospects and Problems
208
Survey of Life Insurance
Company
Investments
in
Mortgages
325
September
1944
T
Taxation:
real estate, and proposed reforms
t a x receipts a n d population changes
Ten Years of Savings and Loan Insurance
U
Urban redevelopment:
New York exhibit
recent history a n d future prospects
state laws
U. S. D e p a r t m e n t of Labor (monthly building permit
d a t a a n d indexes of housing rentals, of manufacturing employment, a n d of wholesale price of
building materials published in each issue).
U. S. Savings Bonds (see war bonds).
U. S. Treasury (table of investments in savings and
loan associations published quarterly from March).
Page
293
277
261
204
177
152
W
War b o n d s : (honor roll of war bond sales published
in each issue).
private savings invested in
selling methods
War housing:
F P H A reports on
occupancy report
re-use of
report on, by J o h n B. Blandford, J r
review of (1940-1943)
War Clears Up the Overhang
War Housing Passes the Peak
122
70
14
176
204
267
122
36
122
349
FEDERAL HOME LOAN BANK DISTRICTS
M a
$
BOUNDARIES OF FEDERAL HOME LOAN BANK DISTRICTS
FEDERAL HOME LOAN BANK CITIES.
OFFICERS OF FEDERAL HOME LOAN BANKS
BOSTON
B.
J. ROTHWELL, Chairman;
CHICAGO
E . H . W E E K S , Vice Chairman;
W. H.
C. E . B R O U G H T O N , C h a i r m a n ; H . G. ZANDER, J R . , Vice C h a i r m a n ; A. R .
N E A V E S , P r e s i d e n t ; H . N . F A U L K N E R , Vice P r e s i d e n t ; L . E . D O N O V A N ,
G A R D N E R , P r e s i d e n t ; J . P . D O M E I E R , Vice P r e s i d e n t ; L A U R E T T A Q U A M ,
S e c r e t a r y - T r e a s u r e r ; P . A. H E N D R I C K , Counsel; B E A T R I C E E . H O L L A N D ,
Assistant Treasurer; CONSTANCE M . W R I G H T , Secretary; GERARD
Assistant Secretary.
U N G A R O , Counsel.
NEW
GEORGE
MACDONALD,
Chairman;
DES
YORK
F . V. D .
LLOYD,
Vice
Chairman;
SON, President-Secretary; W . H . LOHMAN, Vice President-Treasurer;
J. M . M A R T I N , Assistant Secretary; A. E . M U E L L E R , Assistant T r e a s -
D E N T O N C. L Y O N , Secretary; H . B . D I F F E N D E R F E R , Treasurer.
u r e r ; E M M E R T , J A M E S , N E E D H A M & L I N D G R E N , Counsel.
LITTLE ROCK
PITTSBURGH
E . T . T R I G G , C h a i r m a n ; C . S. T I P P E T T S , Vice C h a i r m a n ; R . H . R I C H ARDS, P r e s i d e n t ; G. R . P A R K E R , Vice P r e s i d e n t ; H . H . G A R B E R , S e c -
B.
H . WOOTEN, Chairman;
WALLACE,
W . P . G U L L E Y , Vice Chairman; H . D .
P r e s i d e n t ; J . C . C O N W A Y , Vice P r e s i d e n t ; R . T . P R Y O R ,
Secretary; W . F . T A R V I N , Treasurer.
r e t a r y - T r e a e u r e r ; W I L L I A M S. B E N D E R , Counsel.
TOPEKA
WINSTON-SALEM
H . S. H A W O R T H , C h a i r m a n ; E . C . BALTZ, Vice C h a i r m a n ; O. K . L A R O Q U E , President-Secretary; J o s . W . H O L T , Vice President-Treasurer.
P . F . G O O D , C h a i r m a n ; A. G. H A R T R O N F T , Vice C h a i r m a n ; C. A. S T E R -
LING, President-Secretary;
W M . MEGRUE
R . H . B U R T O N , Vice
President-Treasurer;
J O H N S. D E A N , G e n e r a l Counsel.
PORTLAND
CINCINNATI
S. K I S S E L L , C h a i r m a n ;
MOINES
E . J . R U S S E L L , C h a i r m a n ; E . A. P U R D Y , Vice C h a i r m a n ; R . J . R I C H A R D -
N U G E N T F A L L O N , P r e s i d e n t ; R O B E R T G. C L A R K S O N , Vice P r e s i d e n t ;
HARRY
M.
B R O C K , Vice C h a i r m a n ;
B E N A. PERHAM, Chairman;
H . . R . G R A N T , Vice Chairman;
W A L T E R D . S H U L T Z , P r e s i d e n t ; W . E . J U L I U S , Vice P r e s i d e n t - S e c r e t a r y ;
JOHNSON,
A. L . M A D D O X , T r e a s u r e r ; T A F T , S T E T T I N I U S & H O L L I S T E R
T r e a s u r e r ; M r s . E . M . J E N N E S S , Assistant S e c r e t a r y ; V E R N E
General
Counsel.
President-Secretary;
IRVING
BOGARDUS,
Vice
F. H.
PresidentDUSEN-
B E R Y , Counsel.
Los
INDIANAPOLIS
H . B . W E L L S , C h a i r m a n ; F . S. C A N N O N , Vice Chairman-Vice
President;
F R E D . T . G R E E N E , P r e s i d e n t - S e c r e t a r y ; G. E . G B M A R T , Vice P r e s i d e n t T r e a s u r e r ; H A M M O N D , B U S C E M A N N , R O L L & A L E X A N D E R , Counsel.
ANGELES
D . G. D A V I S , C h a i r m a n ; C . A. C A R D E N , Vice C h a i r m a n ; M . M . H U R FCRD, President; C . E . B E R R Y , Vice President; F . C . N O O N , SecretaryTreasurer; H E L E N FRFPFXUCKS, Attorney.
S U B S C R I P T I O N P R I C E OF R E V I E W . The REVIEW is the Federal Home Loan Bank Administration's medium of communication with member institutions
of the Federal Home Loan Bank System and is the only official organ or periodical publication of the Administration. The REVIEW will be sent to all member institutions without charge. To oth?rs the annual subscription price, which covers the cost of paper and printing, is $1. Single copies will be sold at 10 cents- Outside
of the United States, Canada, Mexico, and the insular possessions, subscription price is $1.60; singlecopies, 15 cents. Subscriptions should be^sent to and copies ordered
from Superintendent of Documents, Government Printing Office, Washington 25, D. C.
A P P R O V E D BY T H E B U R E A U OF T H E B U D G E T
U. S. GOVERNMENT PRINTING OFFICE: 1944
@FedFRASER