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FEDERAL
HOME
LOAN
BANK
Vol.
I I , No. 12
Washington, D. C.
SEPTEMBER
Victory, won at so tremendous a cost, has
brought us only to the threshold of peace.
There are still
many responsibilities to be faced if we are to have the
orderly reconversion necessary to assure us the ultimate
fruits of this victory.
The stage is finally set for the long-awaited
resurgence of the building industry.
Mortgage financing
institutions, by exercising prudence as well as imagination
in tackling the problems ahead, can play a major role in
providing good housing for a peace-time America.
vl^t^VAJt^—-7
u$o
Governor,
Federal Home Loan Bank System
(945
FEDERAL HOME LOAN BANK
Contents
THE R O A D BACK
343
Economic reconversion a n d home
finance.
THE
SUPERVISORY
EXAMINATION—ITS
PURPOSES
A N D OBJECTIVES
By V e r n e C. Bonesteel, Chief Examiner, Federal H o m e
L o a n Bank A d m i n i s t r a t i o n .
Vol.
11
No.
SEPTEMBER
12
1945
The Federal H e m e L o a n Bank Review
is published monthly
b y the
Federal
H o m e L o a n Bank A d m i n i s t r a t i o n under
the direction of a staff editorial
mittee.
This committee
com-
is responsible
344
M O R T G A G E I N V E S T M E N T S O F LIFE I N S U R A N C E C O M PANIES IN 1944
A n n u a l survey.
348
EFFECTS O F BUSINESS A N D I N D U S T R I A L L O C A T I O N
O N RESIDENTIAL A R E A S
The fifth in a series of urban planning articles.
351
SOUND SALARY ADMINISTRATION
A suggested plan a d a p t a b l e to savings a n d loan associations.
354
BRITISH B U I L D I N G SOCIETIES S H O W A C T I V E Y E A R
Summary of 1 9 4 4 activity.
357
for interpretations, opinions, summaries,
a n d other text, except that which a p pears in the form of official statements
a n d signed articles.
Each issue is written for executives
thrift a n d
home
financins
of
institutions,
especially those whose organizations are
insured b y
Loan
the
Federal
Savings
Insurance Corporation
and
members of the Federal H o m e
and
are
Loan
Bank System.
Communications
concerning
material
which has been printed or which is d e sired for publication should be sent to
the Editor of the Review, Federal H o m e
L o a n Bank Building, Washington
STATISTICAL
DATA
N e w f a m i l y dwelling units
Building costs
Savings a n d loan lending
365-366
366-367
367-368
M o r t g a g e recordings
Sales of U. S. war savings bonds
F H A activity
Federal H o m e L o a n Banks
Insured savings a n d loan associations
Q u a r t e r l y tables
368-369
369
369
369
370
371
REGULAR
DEPARTMENTS
Directory Changes of M e m b e r , Federal a n d Insured Institutions
News Notes
Rules a n d Regulations
353
358
359
M o n t h l y Survey
W o r t h Repeating
361
372
25,
•
D. C.
•
•
•
Contents
of this
publication
are
not
copyrighted
*
The Federal H o m e L o a n Bank A d m i n istration assumes no responsibility for
material o b t a i n e d from sources other
than itself or other instrumentalities of
the Federal Government.
342
SUBSCRIPTION PRICE OF REVIEW.—A copy of the REVIEW is seDt to each member andinsured institution without charge. To others the annual subscription price, which covers the cost
of paper and printing, is $1. Single copies will be sold at 10 cents. Outside of the United States,
Canada, Mexico and the insular possessions, subscription price is $1.60; single copies, 15 cents.
Subscriptions and orders for individual copies should be sent with remittances to the Superintendent
of Documents, Government Printing Office, Washington 25, D. C.
A P P R O V E D . B Y T H E BUREAU OF T H E B U D G E T .
Federal Home Loan Bank Revrev
THE ROAD BACK
H
T H E termination of hostilities came with almost
the same suddenness that marked our entry into
the war. Now the country is moving with increasing
rapidity along the road back—back to a peacetime
economy. In readjusting to civilian production we
are returning to the system of competitive marketing
in which the individual citizen is the principal
buyer, compared with our wartime economy in which
Government purchases for war dominated the scene.
However, our return cannot be considered complete
until resumed civilian production restores sufficient
demand-supply equilibrium to reestablish free market
operations.
To the problems of reconversion now before us,
the Director of War Mobilization and Reconversion
recently gave the answer:
"Only a production vastly expanded over
anything this or any other nation has ever seen
will make possible the attainment of the four
major economic objectives which face us in the
months ahead . . .
(1) Jobs for all those willing and able to work.
(2) A steadily rising standard of living.
(3) Stabilization of our economy to avoid disastrous inflation or deflation.
(4) Increased opportunities for farmers and
businessmen.
*
*
*
"Wherever immediate removal of controls
will help to get expanded production under
way faster, they will be removed. Wherever
the removal of controls at this time would
bring a chaotic condition or cause bottlenecks,
or produce a disruptive scramble for goods,
controls will be kept and used."
In accordance with plans made public 24 hours
after President Truman's announcement of the
unconditional surrender of Japan, literally hundreds
of controls over industry were abandoned or scheduled for cancelation by WPB. Significant to the
home building industry among these early cancelations were orders affecting hand tools, hardware,
copper, logging equipment and wood products
machinery and equipment, Douglas fir logs, plumbing
and heating and domestic cooking appliances.
Although the old wartime priorities control
system, including the Controlled Materials Plan,
September 1945
will be eliminated at the end of September, a new
limited system for use during the reconversion
period is to be introduced. Under this system a
new, junior, non-extensible, civilian " C C " preference
rating will be used in limited cases to break bottlenecks in reconversion and to insure, when necessary,
continued production and services. However, W P B
explained that its policy, for the most part, will be
not to assign priorities assistance for n on -military
needs.
Housing
In housing, NHA moved immediately to expand
the goal for the 12 months ending next July which
had previously been set at 400,000 starts for residential construction. Almost simultaneously, all regulations restricting occupancy of privately financed
war housing to war workers were lifted. However,
as this issue of the R E V I E W goes to press, word has
not been received as to changes in the Construction
Order L-41. These are currently under consideration and are expected as soon as a decision is reached
on the point of sales and rental ceilings for new construction during the period of reconversion.
With respect to lumber, the elimination of controls
by the WPB will undoubtedly release a supply
sufficient to allow some expansion in building activity. I t is reported that an adequate stock of the
proper grades of seasoned lumber to be used in
residential construction is not expected to be available before the spring of next year.
As early as August 11, telegraphic orders were
issued by FPI.IA stopping the awarding of contracts
for Federally financed war housing and plans were
speeded for the eventual disposition of such accommodations on hand.
The importance of housing in the postwar period
received special commeut from the President in his
message of September 6 to Congress:
"There is wide agreement that, over the next 10
years, there should be built in the United States an
average of from a million to a million and a half
homes a year.
"Such a program would provide an opportunity
for private capital to invest from six to seven billion
dollars annually. Private enterprise in this field
could provide employment for several million workers each year . . ."
{Continued on p. 370)
343
THE SUPERVISORY EXAMINATIONITS PURPOSES AND OBJECTIVES
Impartial examination has come to be accepted as a necessary procedure from the standpoint of public policy, as well as for the internal
direction and management of thrift institutions.
An understanding of
the principles and practices of examination enables the directors and
officers to obtain the maximum benefits of the examiner's report.
By V E R N E C. BONESTEEL, Chief Examiner
Federal Home Loan Bank
Administration
M
T H E managers of some savings and loan associations may regard the annual supervisory
examination as little more than a. necessary burden.
Others value it as the constructive and useful
analysis which it is intended to be.
Much can be gained from this periodic examination if the procedures are thorough without delving
into the unessential, if the examiner is objective in
his viewpoint without being uncooperative, if he is
helpful without wavering in his duty to portray bis
findings accurately, and finally, if the proper use is
made of the examination report. Every manager
needs an impartial review of the condition and
operations of his institution. The examination report may be used as a constructive tool by the
manager and as an unbiased analysis for the protection and consideration of the board of directors.
The examiner's work, like that of any other profession, is a science and an art. Underlying and
defining the work is a philosophy. The science of
examining is concerned with, the technical knowledge
which must be mastered as a basis for the work.
Its philosophy deals with the reasoning and purposes
which support the science. But, to the examiner, a
knowledge of the science and an understanding of
the philosophy are useless and impractical without
proficiency in the art, which is the practical application of the principles and philosophy.
This article presents the philosophy or the purposes
and objectives of the examination of savings and loan
associations. I t attempts to clarify certain questions that sometimes may occur to managers and
directors. Why is a supervisory examination necessary? What are the principal objectives of the
examination and the audit? What is the function
and responsibility of the examiner? What specific
uses can managers and directors make of the exami-*
nation report? Is it feasible to reduce as well as to
expand procedures to fit conditions?
344
Savings and loan managers through the years have
appreciated the necessity of audits more than they
have valued supervisory examinations. Even prior
to statutory regulation, by-laws generally made some
provision for an annual audit. Judge Seymour
Dexter in his Treatise on Cooperative Savings and
Loan Association? published in 1889, in one of the two
chapters on how to organize an association in New
York State, suggested that the constitution or bylaws include a section which would provide for an
auditing committee, the members of which should
not be officers of the association. In this, he emphasized the importance of the independence of the
auditors.
Legislative Aspects
Legislation, including provision for audits and
examinations, has usually been proposed and endorsed
by organizers and officers of savings and loan associations. The development has been progressive and
gradual: audits by committees; then, reports to state
officials; next, permissive examination by supervisory authorities; and finally, compulsory periodic
examinations.
The demand for examinations thus came from the
business itself. The interests of good management
are not in conflict with the purposes and objectives
of supervisory examinations. Although the examiner
is employed by the state or by the Federal Home
Loan Bank Administration, his examinations are
conducted not only in the interest of the supervisory
authorities and for the protection of the members of
the association and the general public, but also in the
interest of the directors who accept the responsibility
of determining the policies of the association, and the
officers and employees who may find the examiner's
observations helpful in the performance of their
duties.
Section 5 (a) of Home Owners' Loan Act of 1933
reads: " I n order to provide local mutual thrift
institutions in which people may invest their funds
Federal Home Loan Bank Review
and in order to provide for the financing of homes,
the Board is authorized, under such rules and regulations as it may prescribe, to provide for the organization, incorporation, examination, operation, and
regulation of associations to be known as Federal
savings and loan associations . . ." Title IV of the
National Housing Act, Section 403 (b), provides that
applications for insurance of accounts " shall contain
an agreement (1) to pay the reasonable cost of such
examinations as the Corporation shall deem necessary
in connection with such insurance, and (2) if the
insurance is granted, to permit and pay the cost of
such examinations as in the judgment of the Corporation may from time to time be necessary for its
protection and the protection of other insured institutions."
Thus, the business itself and legislation recognize
that examination and supervision are necessary
because savings and loan associations are quasipublic institutions and are trustees of the people's
savings. Obviously, if associations are to be supervised fairly and intelligently, current information
regarding their condition and operations must be
obtained. Moreover, the Rules and Regulations for
Insurance of Accounts provide that if an insured institution is not audited at least once each year in a
manner and by auditors satisfactory to the Corporation, the annual supervisory examination by the
Corporation shall include an audit. Whether an
association is to be audited separately or at the time
of the annual examination is a matter for determination by the association.
Purposes Served
What are the principal purposes of the examination and the audit? An examination of a lending
institution is conducted for three purposes: first, to
determine by analysis of assets, liabilities and operations, the actual condition of the institution and
whether it is being operated in accordance with sound
principles; second, to see whether there are violations of charter, by-laws, statutes or regulations;
and third, to see whether all transactions have been
properly recorded.
In the examination and audit of associations, a
division of purposes, or at least of emphasis, has
naturally developed. Supervisory examinations are
made principally for the first and second reasons—to
ascertain whether the association is being operated
soundly and is following the laws and regulations;
and audits are conducted princially for the third
reason—to determine whether accounts are accurate,
Scp/cmfccr 1945
whether there are technical errors such as inaccurate
computations and posting to the wrong accounts,
and errors of principle, such as confusion between
capital accounts and profit and loss accounts or
failure to discriminate between apparent and real
profits. It would be wholly theoretical, however, to
assert that there could be this complete separation
of purposes, for there must be some overlapping in
examinations and audits when conducted separately.
I t is largely because of this overlapping or duplication of part of the w w k that there is a saving in
expense when the examination and the audit are
combined.
The supervisory examination must include what
is usually referred to as a balance sheet audit—a
proving of the subsidiary accounts with the controlling accounts, and a sufficient review of the
income and expense accounts to distinguish operating and non-operating items, and to see that
reserve allocations are proper. But this does not
mean any detailed analysis or verification of receipts
and disbursements or of income and expense. Hence,
in the supervisory examination alone, the integrity
of the accounts is to some extent accepted, since the
examiner depends upon the auditor for adequate
test checks and proofs.
Examiners observe these distinctions between the
procedures of a supervisory examination and the
additional procedures which are involved when the
work is to include an audit. These additional features all relate to the testing of the accuracy of the
accounts. In an examination, among other differences, there is no analysis of all transactions for any
specific period, nor are there verifications by direct
correspondence.
The actual inspection of all assets with supporting
documents is not repeated in each examination; but
in an audit, and to a lesser extent in an examination,
test checks of old assets are made. Considerable
time is thus saved by accepting work previously
done. However, speaking cumulatively of work previously and currently done, the examiner verifies all
assets by recognized procedures, such as by inspection, counting, reconcilement, or direct correspondence; he ascertains by inspection of attorney's opinion
or title policy that the asset is genuine; and he
determines the liabilities by proof and analysis of
the accounts. He analyzes operating accounts,
making test checks of expense charges and income
credits. He prepares reconcilements of undivided
profits and reserve accounts. He reviews the minutes
of directors' and shareholders' meetings for authori345
zations and confirmation of policies. He evaluates
assets on the basis of payment performance and
other qualities. He makes an investigation of the
association's appraisal methods and lending policies.
He analyzes the system of internal check and control, and he suggests methods of improving the
association's accounting practices.
Within the reasonable limitations of approximate
average time for an assignment of a certain size and
difficulty, and within the general instructions as to
scope and uniformity, independence in determining
procedures is essential in an examination or audit.
The examiner must maintain his independence and
keep free from all shadow of suspicion that his
work is influenced by any considerations other than
the obtaining and the reporting of unbiased facts.
When the Examining Division was organized in
1934, it was agreed that the responsibility of examining should be separated as much as practicable from
the responsibility of supervising. The principle is
that fact finding should be uninfluenced by considerations of actions which might follow the presentation
of unbiased facts. However, to a considerable
degree, a good examiner will keep in mind not only
the purposes and objectives of his procedures from
an examining standpoint, but he will also bear in
mind the use that may be made of the information;
otherwise his facts and comments may not be clear
and useful to the supervisor or to the association.
Managers and directors are interested in the
ability, integrity and alertness of the men who conduct their examinations. They want men not only
competent from a technical standpoint, but men
familiar with the savings and loan business. This
emphasizes the training necessary to develop an
examiner. After the basic technical knowledge or
science has been acquired through study and review
of instructions to examiners, much of the development must come through actual practice. An inexperienced examiner is placed under the supervision
of an experienced examiner. Then, partly to give
him different approaches and methods and clearer
understanding, an assistant examiner is assigned to
periods of service under other senior examiners.
Any examiner who has the necessary qualifications
will develop through observation and questioning.
I t is planned in every Federal Home Loan Bank
District to have periodic staff meetings of the examiners, when all procedures are reviewed and problems
are discussed with them.
What specific uses can managers and directors
make of the examination report? The manager
346
should fully review every report of examination with
the board of directors. No matter how well informed a manager is about his association, he wants
to know what the examiners found; and the directors
are entitled to know all the facts and the examiner's
comments. In reviewing a report, it should be
understood that the scheduling of a loan does not
mean that ultimate payment of the loan is questioned.
Loans are scheduled because of lack of performance
or because of some other reason based upon the
formula set forth in the report, a formula agreed
upon by representatives of the Bank Administration
and of the business. The examiner endeavors to be
reasonable and yet he cannot depart from the standards established.
1
'Standard Form"
The report form used for examinations of all insured institutions is usually referred to as the "standard form". I t is the product of many collaborators,
and it includes what are regarded as some of the
best features of forms used in several of the states.
I t was approved by the National Association of Building and Loan Supervisors, representatives of management who were members of a committee of the United
States Savings and Loan League and by the Federal
Home Loan Bank Administration.
Many managers have found it practicable to make
their monthly reports to boards of directors in substantially similar form; then the information obtained by the examiner should not vary materially
from that given to the directors at the most recent
board meeting. Also, the month-to-month changes
and trends will have real meaning to the board.
Some managers are keeping a desk manual which
follows the general plan of the examination report.
The first section in such a manual is a month-bymonth comparison of the balance sheet. The second
section, as in the examination report, is the statement
of operations. The budget estimates are sometimes
presented cumulatively from month to month beside
the actual figures. The itemized income and expense may also be shown in comparison with other
months.
The third section of such a manual, as in the examination report, shows loan statistics. Loans closed
during the month may be broken down as to purpose—that is, construction, home purchase, refinancing, reconditioning, etc. Here, too, a record is kept
of delinquencies.
Another section is for information regarding the
share accounts. Still another part of the manual
Federal Home Loan Bank Review
may deal with any specific problems such as real
estate owned or other slow assets.
I t is a simple matter each month to prepare from
this desk manual an intelligent and valuable report
for the directors.
The form of the examination report does not control the procedures to be followed in obtaining information for the report. I t provides the manner
and sequence in which the information is to be presented, but not the method by which it is to be
obtained. The report form prescribes the orderly
arrangement of information.
The examination
method or program relates to the procedure by which
an examination is accomplished.
Plans of Procedure
There are two plans of examination procedures or
programs, (1) the predetermined and (2) the general.
The first has the advantage of providing the examiner
with a check sheet; the second has the advantage of
accentuating objectives rather than methods. The
Examining Division uses the first plan in order that
the work may be divided efficiently and that the
scope of the program may be recorded in the working
papers; but the examiners are encouraged to develop
the thinking which is essential to the second plan.
Although the predetermined program is used, the
examiners understand that program must never be
a substitute for judgment. They are taught that
the value of any examiner's work depends more upon
his ability to grasp the significance of his findings
than upon his following the program thoughtlessly or
implicitly. I t therefore logically follows that procedures may be contracted in those instances when
that course can be safely followed. In other words,
it is feasible to reduce as well as to expand procedures
to fit conditions.
Internal Check and Control
There is much that can be done by some associations to reduce their examination costs. For the
past three or four years, and especially during the
past year, examiners have been reporting as to systems of internal check and control. Improvements
in associations' methods have enabled directors and
managers better to discharge their trusteeship responsibilities and, at the same time, they have made
it possible for the examiner to dispense with some of
the auditing procedures which would otherwise be
necessary.
The term internal check and control is used to
describe the measures and methods employed by
September 1945
the association to safeguard the assets and to check
the accuracy of the records. The basic principle is
that the several responsibilities and duties of the
personnel shall be so separated and yet coordinated
that there is a constant check of the work of one
department against that of another and the work
of one employee against that of another, so that no
one person has complete control over any entire
important transaction. Obviously, the extent to
which a system can be put into practice depends to
some extent upon the number of employees; and
yet there are important but simple methods that
can be adopted in any savings and loan association
regardless of size.
A broader and perhaps more constructive viewpoint of internal check and control is that some
system is essential to assist employees in carrying
out their several responsibilities in accordance with
the objectives of the directors who establish the
policies. I t is a method of self-regulation of associations directed by men who realize their trusteeship
responsibilities and are seeing to it that they are
carried out.
I t is necessary for employees to have standards
and objectives. I t is, of course, possible to have
them without reducing them to writing, provided
they are understood and accepted by all of the
employees. There is real value, however, in having
duties and standards made matters of record. That
results in clearer understanding. The outline of
instructions supplements memories. I t is especially
useful in the event of the absence of certain employees.
Such a record enables the examiner more quickly
to analyze the system and the duties of personnel,
particularly as to the flow of cash, the custody and
control of assets and the accounting methods.
Even where a good system of internal check and
control exists, the effectiveness of its operation must
be established by test; but consideration of these
factors will enable the examiner to provide in his
program for the minimum tests which are needed
to reveal any absences of order.
Instructions to Examiners
Examiners are instructed to observe t h e " 4 C ' s " in
their comments. They are directed to bear in mind
that the report should be clear, coherent, concise
and complete. The extent of an examiner's* comments does not necessarily indicate the extent 6f the
(Continued on p. 350)
347
MORTGAGE INVESTMENTS OF LIFE INSURANCE
COMPANIES
This article is based on the annual study, made by the Division of
Operating Statistics, of mortgage and real estate activity of life insurance companies.
Highlights of last year were a declining proportion of funds secured by new mortgages on small homes and a decrease
in loans obtained by purchase.
•
T H E total mortgage portfolio of life insurance
companies showed only a fractional increase last
year in spite of the fact that their new lending
activity gave the first indication of recovery from
the declines of early war years. Held down by an
unusually high volume of principal repayments, the
unpaid balance of mortgages held by these institutions w^as estimated at $6,771,000,000 on December 31, 1944, an advance of only 0.3 percent, or
$23,000,000, over the 1943 year-end figure. This
slight increase resulted from gains in the holdings of
mortgages on 1- to 4-family homes and on commercial properties, offset to some extent by losses in
multi-family and farm property balances. During
this period the number of mortgages held decreased
by about 3,000 and the average value increased from
$8,199 to $8,259.
Life insurance companies, thus, were the only type
of lending institution, except savings and loan
associations, to show any increase in mortgage holdings last year, although their fractional gain did not
compare with the 6-percent increase of savings and
loan members of the Bank System. However, it
ESTIMATED MORTGAGE HOLDINGS
OF LIFE INSURANCE COMPANIES
BILLIONS
OF DOLLARS
7
348
AS
OF DECEMBER 31 - 1938
TO 1944
bettered the record of a 3-percent decline shown by
insured commercial banks and the drop of 4 percent
in the mortgage portfolio of mutual savings banks.
Rising for the eighth successive year, the unpaid
balance of mortgages on 1- to 4-family homes held
by life insurance companies at the end of December
stood at $2,458,000,000. However, the rate of increase in this category was considerably diminished
from 1943—only 2 percent last year compared with
a 7-percent gain the year before. Even so, the rise
was sufficient to increase the proportion of these
loans from 35.7 percent of the total mortgage portfolio in 1943 to 36.3 percent last year. The average
size of these loans increased from $4,045 in 1943 to
$4,085 last year.
Other residential mortgage holdings (5- or morefamily dwellings) reversed the upward trend evident
since 1938, dropping almost 5 percent during 1944.
The $1,361,000,000 secured by these apartment
properties accounted for fractionally more than 20
percent of total holdings in 1944 compared with
more than 21 percent the year before. I n this category the average loan declined slightly from $50,036
to $49,876.
As a consequence of these divergent trends, total
nonfarm residential mortgage holdings of life insurance companies dropped from $3,834,000,000 to
$3,819,000,000. Last year they represented fractionally less than they had the year before—56.4
compared with 56.8 percent of the total mortgage
portfolio.
The unpaid balance of mortgages on commercial
properties, which, in proportion to the total portfolio, had been declining slowly since 1938, increased
almost 4 percent last year to $2,153,000,000 and represented about 32 percent of total mortgage holdings
compared with less than 31 percent a year earlier.
On the other hand, the volume of mortgages held
on farm properties continued downward, receding
to less than 12 percent ($799,000,000) of the total
loan balance. In 1943 farm mortgages amounted to
$840,000,000, approximately 13 percent of the total.
Federal Home Loan Bank Review
F H A Activity
Once again, as in 1943, life insurance company
holdings of insured mortgages on 1- to 4-family
homes exceeded the balance outstanding on uninsured
loans of this category. At the close of 1944, these
insured loans amounted to $1,302,000,000, or 53 percent of the balance outstanding on this type of
property compared with 51 percent in 1943. The
increase of 6 percent last year represented a slackening in the rate of growth from the 19-percent gain
shown in 1943. At the same time, the ratio of
insured loans on 1- to 4-family homes to the total
FHA insured loans held by life insurance companies
dropped from above 94 percent in 1943 to slightly
more than 92 percent last year. Apartment house
FHA insured loans, however, increased from 6 to
almost 8 percent of the total.
FHA reports on the face amount of mortgages on
1- to 4-family homes insured under Titles I I and VI
indicated that insurance companies of all kinds held
32.8 percent of the total amount, which was the
second largest share for any one type of lending institution, and that life insurance companies alone
held 29.7 percent of the total amount. Life insurance companies held 57.4 percent of the total faceamount of mortgages on large-scale rental housing
projects insured under Titles I I and VI which, combined with their holdings of insured mortgages on
1- to 4-family homes, represented 31.2 percent of the
total face amount of mortgages of all types insured
under Titles I I and VI.
Ratio to Assets
The ratio of loan balances to admitted assets
provides another indication of the effect of wartime
conditions on new mortgage investments. From
1936 through 1942, the gain in mortgage holdings
kept pace with the growth of assets so that the ratio
of total loans to admitted assets fluctuated around
19-20 percent. In 1943 this ratio dropped to 17.9
percent, while last year a practically stationary
mortgage portfolio coupled with an unprecedented
asset growth brought the ratio down to 16.6 percent
of admitted resources.
The decline in the ratio of mortgages held on
small homes to total assets showed considerably
more stability, reflecting only a fractional decrease
from 6.4 percent in 1943 to 6.0 percent last year.
This was because mortgage holdings on 1- to 4family homes increased more rapidly than total
loans, although the advance was relatively less than
the expansion of resources.
September 1945
G63690-45
New Loans During 1944
For the first time since 1941 the gross volume of
mortgages made or purchased by life insurance companies increased. The $984,000,000 of these new
loans was 9 percent greater than the 1943 volume
but still 11 percent below the post-depression peak
of $1,111,000,000 added to their portfolio in 1941.
At the same time that the 1944 dollar volume of
new loans increased, the number declined 21 percent
with the result that the average value of these mortgages rose 39 percent from $7,102 in 1943 to $9,863.
A breakdown by type of property shows that
multi-family dwellings recorded the largest gain in
the average value of new mortgages placed on books
of these companies—up 55 percent. The second
largest increase in average size occurred among
mortgage loans on commercial properties, which
were 51 percent greater than the average for this
type reported in 1943. However, the increase in the
average size of mortgage loans made on 1- to 4family homes was considerably less, this type showing a gain of 20 percent, while the average gain among
farm mortgages was 9 percent.
Reflecting the generally tight condition of the
1944 mortgage market, loans acquired by purchase
reversed a 10-year upward trend and declined 26
percent to $164,000,000. They represented only 17
percent of total lending activity in 1944 compared
with 25 percent the year before. Conversely, loans
made in the names of the companies themselves increased 24 percent. The $685,000,000 of these
mortgages accounted for 70 percent of the year's
aggregate activity whereas in 1943 such loans represented 61 percent. Those made in the name of
correspondents increased 8 percent to $135,000,000
349
2
during 1944 but their proportion to total lending
remained practically the same as the year before—
about 14 percent.
Perhaps the most outstanding finding in an analysis of these data was the diversion of funds from mortgages on 1- to 4-family homes. Although those
properties remained the most favored type of security, they represented only 43 percent ($420,000,000) of the total lending volume compared to 52 percent in 1943. This was the first time in four years,
that mortgages on this type of property represented
less than half of all new real estate loans acq aired.
Furthermore, this type of loan was the only one to
show a decrease in dollar volume (as distinct from
number) during 1944- down $48,000,000, or 10 percent, compared with increases ranging from 5 to 49
percent for other types of real estate security held
by life insurance companies.
Mortgages made on 5- or more-family units reflected the greatest percentage gain during the year,
advancing over 48 percent, or $60,000,000, to
$182,000,000 and accounting for almost 19 percent
of last year's new business. Commercial properties,
following a 40-percent increase, made up the second
most important segment of new mortgages—$234,000,000, or 24 percent of the total. Farm loans increased 5 percent to $148,000,000. However, because of the greater proportionate increase in total
loans acquired, these new mortgages represented a
fractionally smaller ratio to the year's total-—15.0
percent last year compared with 15.7 percent the
year before.
Owned Real Estate
The diminishing supply of marketable properties
in the hands of mortgage lending institutions was
reflected in the fact that real estate sales, although
still high, were less than in 1943 when the volume
reached $345,000,000.
However, sales totaling
$274,000,000 last year resulted in a reduction of
more than one-third in the book value of all real
estate held the year before. At the close of 1944,
owned real estate wTas estimated at $479,000,000, or
7.1 percent of the value of outstanding loans. In
1938 when total real estate owned by life insurance
companies reached its peak, this ratio stood at 32
percent.
Experience with 1- to 4-family homes continued
to be particularly favorable. Relatively low acquisitions together with brisk sales resulted in a reduction of 65 percent ($33,297,000) from the previous
year-end figure. On December 31, 1944 this cate350
gory of owned properties represented less than 4 percent of total real estate holdings compared with a ratio
of nearly 7 percent which was sluwn the year before.
Holdings of farm properties decreased from almost
28 to 25 percent of total real estate owned, while
the ratio for multi-family dwellings remained constant at about 22 percent. Only commercial properties showed an increase in this respect, rising from
44 to 49 percent of all acquired real estate owned
outright.
i
Examinations
(Continued from p. 347)
procedures followed in preparing the information.
Therefore, shortening the comments will not always
save examining time, but it will usually save time in
writing the report. Examiners are advised to omit
comments that are not necessary to bring out a
salient point, and to avoid repetition of the information presented.
Other important instructions as to shortening
procedures in obtaining information and as to
methods of reporting were issued recently. The
Examining Division is always pleased when examination time can be saved. Managers will appreciate,
however, that in an examination the examiner's
procedures must be sufficient to enable the examiner
to present the essential statements, exhibits, and
schedules with his comments on the condition,
operations and policies of the association; and in an
examination-audit the examiner must make sufficient
test checks of accounting records and other supporting evidence to enable him to be reasonably satisfied
as to the integrity of the accounts.
Through examination and supervision, through
the leadership and reserve facilities of the Federal
Home Loan Banks, and through insurance of investors' accounts, the contribution of the Federal
Home Loan Bank Administration to higher standards
of operation has been important in the past 12
years; but the policies of each association are established by its board of directors and are carried out
by its officers and employees. The testing period of
those past and current policies lies just ahead in the
months and years to come. The prewar emphasis
on improved methods and the wartime stressing of
conservative but forward-looking mortgage lending
policies should result in postwar success and continued progress for the vast majority of savings and
loan associations.
Federal Home Loan Bank Review
EFFECTS OF BUSINESS AND INDUSTRIAL
LOCATION ON RESIDENTIAL AREAS
The location of business and industry is of fundamental importance to
the economic and social life of any community.
This article, the fifth
in a series on urban planning,1 discusses the considerations
involved
and reviews various proposals for the proper relationships of commercial, industrial and residential
property.
•
The historical motives which influenced the location and early growth of many American cities
have been largely lost during the passing years, or
have been clouded by local legends indicating conflicting and illogical reasons for the birth of the
city. A number of towns trace their origins to the
intersection of Indian trails or the location of their
camps, the meeting of waterways, or the traditional
use of waterholes. The stockades of Fort Dearborn,
Fort Dusquesne and Fort Pontchartrain took advantage of militarily strategic water and topographic
features to serve as trading and collection posts and
for protection against marauding Indians and renegades. These, then, were the forerunners of Chicago,
Pittsburgh and Detroit. Legend has it thai Chicago
was located at the mouth of the sluggish Chicago
River rather than the Calumet River as a result of
the interest of a young Army surveyor in a settler's
daughter—whose cabin was near the Chicago River.
By such a quirk of fate was the destiny of a great
city determined.
The Strategic Location of Cities
Possibly more than any other factor, the strategic
location of Chicago as a point of trans-shipment has
accounted for its phenomenal growth. The cities of
Buffalo and New Orleans and the Duluth-Superior
area, among others, trace their origin to similar
location factors.
The exploitation of wild-life, timber and agriculture, mineral resources and water supply has also
accounted for the early development of a town or
city. Syracuse's initial start resulted from the coincidence of salt deposits and adequate wood fuel for
processing them. By the time the salt deposits were
exhausted, other industries had made sufficient gains
to perpetuate and advance the city's economy, aided
largely by the completion of the Erie Canal. Minneapolis, at first nothing more4 than the outpost Fort
Snelling, was nourished in its economic growth by
•' Prepared by Beginald R. leaacs and Victor H. Bringe of the Urban Development Division, National Housing Agency.
September 1945
the indiscriminate exploitation of northern Minnesota timber and later by the grain and milling
activities of the Northwest. The rich, extensive
Mesabi Range ores were responsible for the growth of
the Lake Superior ports and indirectly, for the growth
of Pittsburgh, Chicago and Detroit.
Difficulties in transporting raw materials of large
bulk to processing plants and finished products to
the market confine basic industries to locations
where both functions can be accomplished with
maximum economy. Transportation, in the broad
sense, includes power transmission lines, pipe lines
for oil and gas, freight carriers and facilities for
assembling labor. The use of the automobile has
eased the problem of labor supply by increasing the
commuting area for labor around industrial plants.
This development has made it possible for plants to
locate on the outskirts of cities. The improvements
in passenger transportation have extended the trading areas of cities and have diverted trade from
country villages and towns. Rarely in the past has
a city site been selected for livability alone. This
fact is reflected in the resulting haphazard pattern
of streets, misuse of land, uneconomic and socially
undersirable relationship of industry to transportation facilities and the working population, as well as
blight and the depreciation of residential real estate.
The Supply of Labor
To say that local economic prospects and opportunities will have an important influence upon the
size of population in a given area seems to be a
truism; yet it is a fundamental fact. Trends of
mortality and reproduction can be computed with a
fair degree of accuracy. Migration to and from an
area in response to job opportunities can only be
estimated. This is not to say that a good estimate
cannot be made, based upon such facts as are available, and that it is not well worth the making. A
realistic estimate of future population is basic to a
determination of the future need for homes in the
351
area and, in fact, to the need for goods and services
of all kinds.
I t is a matter of common observation that transportation routes, major markets and physical resources are important elements in determining a
city's location and the amount of industrial and commercial activity that locates in the vicinity. What is
not so well understood is that the supply of labor
available and the types of skills represented are in
themselves active factors in the locational process.
Plants carrying on processes requiring a large proportion of skilled labor may find it necessary to
locate in areas where such skilled labor already resides. In the same manner, the existence of a pool of
unskilled and unutilized labor may attract an industry which can utilize it. The shift of many textile
plants from the New England area to other parts of
the country is commonly attributed to this cause,
at least in part.
Local subsidies have often been offered to attract
new industries to particular communities. Such
studies as have been made indicate that these efforts
are sometimes ill-fated and may not return to the
community the actual expenditures involved. The
Tennessee State Planning Commission, in a recent
publication, 2 records the evils which may spring from
reliance by towns and cities upon subsidies to attract
employment-providing industries. Competitive efforts by many cities cancel each other out. When
the fly-by-night firm has squeezed the final concession from the town council it is likely to move on to
another town, leaving financial headaches behind it.
During the war years the location of industries
drew population from many parts of the country to
the coast cities and stimulated developments in the
West and South. Social and economic considerations could not take precedence over the need for
immediate production. In some cities over-concentration of working population and inadequate
accommodations were the results. In many areas
readjustments will be required for more stable relationships between industry and population.
Although residential development has often exploited land better suited for other uses, conversely,
business-industry has laid waste land more desirable
for open space or residential purposes.
For instance, in southern California we find ugly
oil derricks straddling what were once fine residential
and recreational lands—a gain in spectacular wealth,
but a depreciation of the section for living purposes.
Inclined drilling of oilheads from considerable distances would conserve residential values and still
permit exploitation of mineral resources.
I t is also true that commercial development has
appropriated gently rolling slopes ideally suited to
the location of homes. The banks of rivers and
lakes might serve for recreation as well as for industry and harbors; the commercial development of
shorelines must be accompanied with restrictions on
their use for industrial purposes—for example, the
amount and c o n d i t i o n of returned water. Industry has often followed a too easy path, moving
in on neighborhoods old but otherwise good from the
standpoint of location, facilities, densities and similar
criteria. Resulting truck routes traversing these
neighborhoods encourage ribbon development and
other uses of land not harmonious with residential
areas.
What are the area relationships that we want in a
city? I t is easier to diagram than to describe these
relationships.
The cut on the following p a g e 3 is
a pattern of forms purposely drawn this way so
as not to confuse the diagram with a city plan. The
shape which is designated " industrial" simply indicates that this is the industry of a city regardless
of where it is located. Another shape is designated
as "residential." The flow lines indicate that
people who work in the industries should live close
enough to the place of work to make it efficient, safe
and convenient for them to go from home to work.
The same is true of those who Avork in "commercial"
areas. "Transportation" is indicated by arrows
entering the diagram from the left. Movement of
people and of goods should be related to industrial,
wholesale and commercial areas. These relationships must be kept constantly in mind in developing
an over-all plan for future city growth.
Over the last decade or two, there has been a
trend toward establishment of organized industrial districts like the Northwest Terminal of Minneapolis and the Clearing of Chicago. The organized
Clearing Industrial District, situated at the western
edge of Chicago, has had a strong appeal in pulling
many manufacturing establishments from the city,
as well as in attracting newly established concerns.
This district has special features not ordinarily found
in potential industrial areas either inside or outside
the city. Among these are financial services which
' The Tennessee Planner, Vol. V, No. 5, June 1045, Tennessee State Planning
Commission, Nashville.
3
Adapted from Tacoma, The City We Build, Mayor's Research Committee on
Urban Problems, 1944.
Locations of Business and Industry
352
Federal Home Loan Bank Review
CITY FUNCTIONAL
RELATIONS
RESID E N T I A L
"VDUSTR1AL
BASED ON PLATE 2 9 , "TACOMA, THE C
are offered to concerns locating in the Clearing
District. In addition, the district maintains its own
engineering staff and can quickly design and erect a
factory building suitable to the particular requirements of the new concern. This appeals to many
infant industries with limited capital. Clearing's
property tax rate—about one-third that of the
Chicago city rate—offers a particular advantage.
The absence of building codes in unincorporated
suburban territory and the less exacting industrial
and inspection regulations naturally enable factories
to be erected in less time and at less capital cost.
Land acquisition costs are less in suburban areas,
and large sites for one-story structures with extended
production lines are more readily available.
Toledo has recognized the need for properly
locating industry in relation to highways and to
water supply. The City Plan Commission has
proposed setting aside areas for industrial development near its rivers and away from the congested
central districts.
During the war years, new plants have been built
largely in suburban areas, but few planned communities have been erected to house their workers. As
soon as it is determined which plants will be converted to peacetime purposes, it is hoped that
permanent residential neighborhoods will be provided with adequate community services and facilities, protective buffer strips, segregation of light and
heavy traffic and proper orientation to minimize the
undesirable effects of industrial smoke and gas.
A city planning body may perform many important functions for a community in relation to industry
and commerce. Direct facilities may be planned for
September
1945
industry and commerce within the area.
Good
arrangement of railroad sidings and highways, efficient water, gas, sewerage and electric power systems,
well articulated organization of industrial, commercial, residential and public uses of land will yield
substantial convenience, economy and satisfaction to
businesses locating there. These advantages may
determine the success or failure of such enterprises.
The planning body may also assist in providing an
attractive community background with convenient
and efficient schools, playgrounds and parks, public
buildings and services. When such factors as cost
of power, nearness to markets, freight rates, supply
of labor and ease of transportation are on a par as
among a number of towns, sound community morale
and well being may tip the scales in favor of the city
with the most ordered civic household and best run
government. While these advantages are not always
measurable in dollars, they may have a profound
influence upon the future welfare of the city.
DIRECTORY
^ f l j F CHANGES
J U L Y 1 6 — A U G U S T 15,
1945
Key to Changes
•Admission to Membership in Bank System
"""Termination of Membership in Bank System
#Federal Charter Granted
01nsurance Certificate Granted
DISTRICT N O . 1
CONNECTICUT:
Torrington:
0First Federal Savings and Loan Association of Torrington, 61 Main Street.
DISTRICT N O . 3
PENNSYLVANIA:
Imperial:
**Montour Valley Savings, Building and Loan Association, Sauers Building,
Main Street.
Philadelphia:
#Protected Future Federal Savings and Loan Association, 404 Beury Building, 3701 North Broad Street.
Sellers ville:
*Sellersville Building and Loan Association, 214 North Main Street.
DISTRICT No. 4
FLORIDA:
Melbourne:
* First Federal Savings and Loan Association of Brevard County, Arcade
Building.
DISTRICT N O . 8
MISSOURI:
Jefferson City:
*City National Building and Loan Association, 306 Monroe Street.
NATIONAL HOUSING AGENCY
John B. Blandford, Jr., Administrator
FEDERAL HOME LOAN BANK ADMINISTRATION
John H. Fahey, Commissioner
353
SOUND SALARY ADMINISTRATION—A PAYING
PROPOSITION
At the request of several member associations, the Personnel Department of the Federal Home Loan Bank Administration recently drew up
a "Statement of Salary Administration Policy."
The following article
is based on this suggested plan which is easily adaptable to any set of
local operating conditions.
•
D U R I N G the past 10 years, competition in the
savings and loan field has increased and progressive management, in rising to the challenge, has
found that capable, qualified personnel is one of its
greatest assets. Whether a savings and loan association is large or small, whether or not its business
is expanding, policy in handling personnel matters
has a definite bearing upon the full development of
the institution. Through an efficient and reliable
staff, an executive multiplies the effectiveness of his
own capacity. Sound personnel policy is a payingproposition—advantageous in its promotion of efficiency and economical in reducing turnover costs with
a consequent cut in operating cost,ratios. Not the
least of its merits is the solid basis it provides for
developing a staff of future leaders.
It is axiomatic in any business that there are some
jobs that are worth more than others and some people
who are worth more than others on the same job.
To apply this principle on a fair and systematic basis
is a fundamental of sound personnel practice.
The following plan, drawn up by the FHLBA
Personnel Department in answer to requests from
several savings and loan associations for a system
of establishing and administering an equitable
salary program, is not a Federal pay plan. I t represents merely a suggested basic pattern which can be •
tailored to fit the requirements of any organization.
Such a program provides a common yardstick for
measuring jobs and thereby assures that all positions
of like duties and responsibilities will receive like
treatment. "Also, it gives recognition to the extent
of differing responsibilities and value of work. Such
a salary plan, based on facts, eliminates much guesswork and many personal considerations, thus letting
employees know where they stand and what their
reasonable expectations are.
Basic Features
A well balanced and consistent plan to provide
equal pay for work of equal difficulty has three basic
features—job classification, pay scale and adminis354
trative policy. The first of these—job classification—consists of the orderly sorting and ranking of
jobs in a progressive sequence according to the
comparative difficulty and responsibility of the
duties involved.
Such an over-all inventory is frequently an eyeopener to management. I t will show up most
flaws in work organization, indicate the possibilities
of more efficient use of present personnel and provide
a reliable guide to future hiring.
The initial step is the preparation of a description
of each position, setting forth the assigned duties,
responsibilities and authority. Positions are then
grouped into classes according to the similarity of
assigned duties and responsibilities, and the required
education, specialized knowledge, experience, abilities
and personal characteristics.
Following this general allocation of the various
positions to their appropriate classes, it is necessary
to undertake a careful comparative evaluation so
that all classes of jobs may be ranked progressively
within and among the different groups. This can
be done accurately by allowing a specified number of
points for each significant job factor. The table
below suggests a method of ranking based on the
comparative values to a job of these essential requirements. A wider spread of points on these
factors could be used if it should seem advisable.
Suggested table for ranking employees
J O B FACTOR
RANGE
Education required
Experience required
Special knowledge required
Ability required
Personal traits required
Difficulty of work
Responsibility of work
TOTAL
1- 30
1- 50
. 1 - 40
1- 40
1- 40
1-100
1-100
points
points
points
points
points
points
points
400 points m a x i m u m
When the jobs have been evaluated, the accuracy
of the totals should be verified by comparing the
Federal Home Loan Bank Review
points allowed for each factor. Some adjustments
may be necessary. For example, the points assigned
to personal traits for a teller would have to be appreciably higher than those for a bookkeeper, since the
teller must successfully deal with the public. Titles
and grade numbers, which are indicative of their
relative importance, are then assigned to the various
classes of positions.
I t frequently will be found, particularly in smaller
associations, that there are "mixed" positions, that
is, those involving duties of different classes of positions. For instance, there may be a teller whose
job also includes some other work, such as typing.
The more difficult duty determines the classification,
providing the duties of teller comprise a substantial
part of the job; such a job would fall in the former,
rather than in the latter group.
Pay Scale
When all positions have been grouped and classified, the next step is to establish a consistent and
equitable pay scale. Rates of pay are of such fundamental importance that it is necessary to see that
they are properly related to general wage scales
within the community and the region, as well as to
prevailing salaries for similar work in competing
organizations. On the basis of these data, which
can be readily obtained, a pay scale can be set up
which takes into account these factors as well as
rates already in effect within the association itself.
Such a wage schedule would, of course, have to conform to the existing minimum wage legislation.
Tlie mechanics of this procedure consist of establishing a salary range for each class of positions. A
spread of 25 to 35 percent between the minimum
and the maximum rates has been found advisable.
In, addition, each range should include several intermediate steps—preferably three, five or seven—with
a difference of 4 to 8 percent between each step.
This is usually sufficient to constitute the necessary
inducement to hold desirable employees. Such a
salary range should coincide with the relative difficulty and responsibility of the class of position.
Once it is set up, substantial changes need be made
only upon drastic alterations in generally prevailing
wage rates.
Administrative Policy
On the basis of position classification and an established salary schedule, the functioning of an effective salary policy depends upon orderly and equitable
administration. The principles should be known and
understood by all employees and deviations, which
should be infrequent, must be well justified.
The minimum rate for each class of positions is
chiefly an employment device. It should be high
enough to attract qualified employees and should
be considered the standard wage for a newcomer to
any position. Exceptions are occasionally justifiable when, for instance, an applicant has considerably better than the minimum required qualifications for the position. On the other hand, it is
sometimes desirable to make short-term probationary
appointments below the minimum rate. Temporary
employees may be paid at a rate in excess of the
minimum.
The maximum rate for each position should always
be the ceiling above wdiich the salary for a particular
job can never go. This amount, for a class of
executive positions should be lower than the minimum rate for the next higher class of executive positions. However, the maximum for a class other than
one covering executive positions may be higher than
the minimum for the next higher class in the same
line of work. This variation is warranted on the
ground that differences in responsibility in these
positions are less than in executive positions.
Relation to Efficiency
In justice to employees and to the association,
salary increases should be made at specified periods
but not be entirely automatic. They should be
based on a definite system of rating each employee's
efficiency and progress on the job.
An " outstanding" rating, representing 90-100
percent efficiency, could then be required to justify
the highest rate in a salary range of three to five
steps or the sixth or seventh rate in a range of seven
steps. A rating of "adequate," indicating 75-89
percent efficiency, would permit progression to the
middle step in a three to five rate range or to the fifth
step in a seven rate range.
"Weak," 65-74 percent efficiency, would not be
sufficient to advance an employee beyond entrance
pay except in cases where the salary range is comprised of seven steps. In this event, the first rate
above minimum could be justified. An "unsatisfactory" rating, less than 65 percent efficiency, would
necessitate reassignment or dismissal.
Administrative, or merit, increases are normally
one step in a salary range. They should not be more
than two steps.
Promotion from one job to another of higher rank
should be accompanied by an increase. In most
September 1945
355
instances this would mean adjustment to the minimum salary of the new grade. If that rate does not
represent a raise, the next step in the grade is in
order. Any larger increase should be justified by
considerably better than required qualifications for
the job, the same as new employment at a rate above
the grade minimum. In the case of a promotion to
a new line of work, a trial period of 60 days (never
more than 120 days) may be provided before a salary
adjustment is made.
Transfers to positions of like salary range usually
entail no salary change. Demotions to lower paying
jobs, as a rule, should involve salary adjustment to
the maximum of the new position unless that is more
than the employee had been receiving.
For particularly meritorious service—for example,
if an employee is responsible for an improvement in
operating methods or a saving in the cost of operation—a special reward might well be provided. This
could be effected without regard to the regular period
for pay increases.
With postwar plans now about to be placed in
operation, a competent staff is of paramount importance. The Bank Administration will be glad
to furnish additional information and reasonable
assistance to any association which is interested in
starting or expanding a personnel administration
program.
Bond Sales by Members Exceed
Billion Dollar M a r k
•
ACTIVITY during the Seventh War Loan
carried to $1,294,000,000 the total of sales of
U. S. Government securities by members of the
Federal Home Loan Bank System since May 1941.
During the same period, these institutions purchased
for their own accounts $2,801,601,000 of obligations
of the Federal Government.
The 2,690 members reporting sales and purchases
of war bonds during the months of April through July,
which included the period of the Seventh War Loan,
indicated sales to others aggregating $142,093,000,
while purchases by these organizations for their own
accounts amounted to $675,866,000. According to
reports by the Treasury Department, all savings and
loan associations purchased a total of $811,000,000 of
Government obligations during the Drive.
In sales and purchases combined during both the
defense and war finance programs, members of the
Federal Home Loan Bank System have accounted
for $4,096,000,000 in Government securities.
356
The Victory Loan Drive
;jw*^^
1
On October 29 the Treasl i f e - J k i i L - *^%
y Department will begin
i f F C - / v ^ ^ , ^ i - 3 S L t n e Victory Loan Drive to
^ L L ^ ^ ^ j S ^ 3 ^
sell $11,000,000,000 in GovF,^^gj|
ernment
securities.
The
I i^^KJl
period of this, the last public
j^^^^^^^R^
drive, will extend through
^^^^^^^pHy
December 8. Again, as in
•
the past, the major emphasis
will be placed on sales to individuals, proceeds from
this source being expected to yield $4,000,000,000,
with the remaining $7,000,000,000 to come from sales
to other non-banking investors. Of the individual
quota, $2,000,000,000 is to be obtained through the
sale of Series E bonds.
Although the present Treasury balance is large, it
is expected to be quickly depleted in meeting obligations incurred in the achievement of victory. Thus,
additional funds will be needed in December despite
the fact that Government expenditures are being
drastically reduced.
Offerings during the drive will include Series E, F
and G Savings Bonds; Series C Savings Notes; 2l/2
percent Treasury Bonds of 1967-1972; 2}{ percent
Treasury Bonds of 1959-1962; and % percent Certificates of Indebtedness maturing December 1, 1946.
The Drive for individuals will extend from October 29
through December 8 and subscriptions from all other
non-banking investors for marketable securities will
be received from December 3 through December 8.
However, all Series E, F and G bonds and Series
C Savings Notes processed through the Federal
Reserve Banks between October 29 and December 31
will be credited to the Drive.
The 2}{ percent and 2}{ percent bonds will be dated
November 15 and the certificates of indebtedness will
be dated December 3, 1945, and will be sold at par
and accrued interest from these dates. Savings institutions will be permitted to make deferred payment,
at par and accrued interest, for the 2% percent and 2){
percent marketable bonds allotted to them, up to
February 28, 1946. Commercial banks will not be
permitted to own the 2){ percent and 2}{ percent
marketable bonds offered in the Drive until within
10 years of their respective maturity dates. The
Treasury will request that there be no trading in the
marketable securities and no purchases of such
securities other than on direct subscription until
after December 8.
ur
Federal Home Loan Bank Review
BRITISH BUILDING SOCIETIES SHOW ACTIVE YEAR
Reports on the activities
of British building societies last year showed
a continued strengthening
of their position in spite of over five years
of war.
The postwar period finds them ready and able to play a
major role in the huge task of
reconstruction.
•
R E C O R D assets, a greatly increased volume of
mortgage lending and continued growth of
reserves characterized the operations of British building societies during the fifth year of war, according to
a report recently published in the Building Societies1
Gazette.
The 924 societies, from whose records these preliminary estimates have been compiled, reported
total assets of $3,181,726,000 l at the close of 1944.
This represented an increase of $103,738,000, or
almost 4 percent, during the year. The year-end
total far surpassed any previous figure, exceeding by
some $89,000,000 the record volume in 1939.
Even more significant than this fact, however, is
the evidence of the steadily increasing volume of
mortgage lending. While the actual dollar amount
($212,389,000) was insignificant compared with prewar levels of $560,000,000, the amount of loans last
year was $100,007,000, or almost 89 percent, greater
than the 1943 figure of $112,382,000. The bulk of
this new lending by the British building societies,
like that of our own mortgage financing institutions,
was based on purchases of existing properties.
Assets and L i a b i l i t i e s
Despite the greatly increased volume of new loans
added to the portfolio, the mortgage asset account of
these societies declined again during 1944, dropping
off $57,609,000, or 2.5 percent, to $2,247,000,000.
This decline, however, was considerably less than
the $128,000,000 recession of 1943. The comparatively small shrinkage last year compares favorably
with an average drop in mortgage assets of over
$128,000,000 a year for the previous four years.
Obviously, these British institutions have felt acutely
conditions more severe than those which confronted
savings and loan associations in this country. The
five-year lack of construction, with the consequent
absence of construction lending activity, and amortization (frequently at an increased rate due to
favorable wartime earning conditions) have brought
about the decline. As evidence of the general
resurgence of lending activity, the fact was cited
1
that many of the reporting institutions showed
increases in their mortgage assets during 1944.
Liabilities to shareholders amounted to $2,341,000,000, an increase of $81,000,000 over 1943. By
the end of last year, liabilities to depositors had increased $22,700,000 over the same 1943 date and
stood at $595,000,000. To quote the Gazette: " I n
short, the movement now holds some £30,000,000
[$120,000,000] more of the public's money than it
did before the war, a striking tribute to the manner
in which it has retained the confidence of investors."
Investments and Reserves
A new high was registered last year in the investments shown by reporting societies, although the
rate of increase—25.5 percent—was less than that of
the previous year. During 1944, investments totaled
$796,170,000, an increase of $161,675,000 over the
previous peak which was attained in 1943. This
account, during last year, represented approximately
25 percent of total assets compared with about 21
percent the preceding year. Paralleling the situation
prevalent among American savings and loan associations, these investments were largely government
war bonds. A large part of the $138,227,000 standing to the credit of other assets was held in cash.
The balance of profits and reserves increased 3.5
percent in 1944—fractionally more than the 1943
rate. At last year-end they stood at $202,466,000—
an outstanding achievement in the face of continued loss of income from the principal revenue
source, heavy taxes and large contributions to the
War Damage Fund.
Summary of reports
[Thousands of dollars]
924 Societies
1944
Advances on mortgage _
Mortgage assets
_ __
Investments
Other assets
Total assets
Profit and reserves
_
$212, 389
2, 247, 329
796, 170
138, 227
3, 181, 726
202, 466
1943
$112, 382
2, 304, 938
634, 495
138, 555
.3, 077, 988
195, 508
All references to dollar amounts are on the basis of $4 = £ 1 .
357
September 1945
663690—45
3
Popularity of
payroll savings
W h a t m a y prove to be a significant
aftermath of w a r t i m e financing techniques was disclosed in t h e popularity
of t h e payroll deduction plan for regular savings. A special pilot s t u d y , conducted in Detroit by t h e U. S. Treasury D e p a r t m e n t just before V E Day,
showed t h a t seven out of t e n of t h e
people interviewed would like t o continue regular participation in such a
plan, with t h e a m o u n t depending on
postwar incomes a n d t h e cost of living.
T h e survey, based on interviews
with war bond purchasers, established
the fact t h a t 92 percent approved t h e
plan unconditionally, while onty 3 percent were opposed. Of t h e remaining
people interviewed, 4 percent were u n decided or gave qualified approval, and
t h e opinions of 1 percent were n o t ascertained. I t was also found t h a t t h e
majority of those who own bonds are
anxious to keep t h e m until m a t u r i t y .
T h e survey covered a r a n d o m sample of households of people employed
in D e t r o i t manufacturing industries.
M o r e t h a n three-fourths of t h e group
were skilled or semi-skilled workers; 11
percent, clerical employees; and, 6 percent held managerial or professional
positions. About one-half earned $ 5 6 $75 weekly, approximately one q u a r t e r
getting more a n d t h e same proportion
receiving less.
Federal tax receipts
reach all-time high
T h e American people paid a record
high of almost $24,000,000,000 in
Federal income taxes during t h e fiscal
year ending J u n e 30, 1945, according
t o t h e Bureau of I n t e r n a l Revenue.
Collections of $6,923,713,981 in New
Y o r k t o p p e d receipts from any single
s t a t e . N e x t largest income t a x revenues came from California with
$3,051,642,491, a n d
Illinois
with
$3,012,770,139.
All sources of Federal internal
revenue, including income tax, yielded
nearly $44,000,000,000 in fiscal 1945
as compared to $40,000,000,000 during
358
t h e preceding fiscal year. New York
again led t h e 48 states with receipts of
$8,261,525,191 from all types of Federal taxes.
Despite wartime shortages of consumer items, manufacturers' excise
taxes increased by $279,000,000 to a
1945 t o t a l of $783,000,000. T h e
scrapping of automobiles during t h e
year was reflected in t h e $5,600,000
drop to $129,000,000 brought in by
Federal use tax s t a m p sales.
Survey shows
mortgase preferences
T h e majority of prospective h o m e
owners in all income groups prefer a
mortgage which would m a t u r e in 10
to 14 years, t h e recent u r b a n housing
survey made b y t h e Curtis Publishing
C o m p a n y revealed. T h e next most
popular t e r m of p a y m e n t would run
from 15 to 19 years.
As to t h e t y p e of mortgage chosen,
90.1 percent of those who plan to
finance their home purchases t h u s
picked a " r e d u c i n g " mortgage. T h e
straight or old-type loan appealed to
only 5.1 percent of potential customers,
while 4.8 percent s t a t e d no preference.
Opinions on t h e a m o u n t of monthly
mortgage p a y m e n t s varied a m o n g
income groups.
According to t h e
survey, " 9 3 . 7 % prefer to make regular
monthly p a y m e n t s on principal of $46
per month. T h e preferences in median
monthly p a y m e n t s , however, range
from $37 for those in t h e lowest income
brackets to $59 for those in t h e $5,000
a n d over group.''
T h e study was based on complete
interviews with 4,007 separate families
in 118 centers of population in 35
states. Of all those interviewed, 34.3
percent indicated t h a t t h e y expected
to b u y or build a home, 58.5 percent
did not plan to acquire a house a n d
7.2 percent were uncertain a b o u t
future plans.
Although only 11.2 percent expect
to cover t h e entire purchase cost from
personal funds, already three-fourths
of those who w a n t to own their homes
have begun setting aside money for
t h a t purpose.
Nearly half of t h e
prospective home owners—47.8 percent—plan to employ a
definite
schedule of mortgage p a y m e n t s . On
t h e other h a n d , almost as large a portion, or 41 percent, of t h e would-be
home purchasers h a v e only relatively
vague ideas of how to finance such
transactions.
War costs exceed
a trillion dollars
By t h e end of J u n e 1945, t h e fiscal
costs of World W a r I I h a d exceeded a
trillion dollars, according t o t h e estimates of t h e T a x I n s t i t u t e in New
York. Of this total, t h e Allies h a d
spent a b o u t six-tenths.
T h e United States headed t h e list
with $287,000,000,000 spent for war
purposes, although G e r m a n y was a
close second with war expenditures of
$280,000,000,000. Russia h a d spent
$136,000,000,000 a n d t h e British Commonwealth, $130,000,000,000 b y t h e
end of t h e period. W a r costs totaled
$49,000,000,000 for J a p a n a n d $34,000,000,000 for France, including t h e
occupation costs levied b y G e r m a n y
a n d I t a l y . Until t h e last few m o n t h s ,
G e r m a n y h a d led in t h e t o t a l a m o u n t
of war expenditures, while J a p a n h a d
t h e most rapidly increasing outlay.
" E v e n t h o u g h we cannot grasp t h e
meaning of this figure," commented
t h e T a x I n s t i t u t e , " w e can perceive
some of t h e sinister implications of t h e
war-cost d a t a t h a t are available. . . .
I t is startling t o observe t h e fiscal effort
t h a t has been p u t forth by our enemies,
t h e presumably 'have-not' n a t i o n s . "
Interest Rates Rose in Last War: Fell in This
1914
PERCE
""l '
1915
'
1916
'
1917
'
1918
1919
....'....'.
'
1920
'
1921
1
Average Rate
4.0
/""
theF ublic 0 »bt
/
3.0
20
!
f
1939
(
1940
/
,
1941
.oro War H1942
1
1
1943
U. S. Treasury
Federal Home Loan Bank Review
Proposed Amendment
FSLIC
Bulletin No. 20
P R O P O S E D AMENDMENT TO R U L E S AND REGULATIONS F O R
INSURANCE O F ACCOUNTS RELATING TO DECLARATION O F
DIVIDENDS W H E N LOSSES ARE CHARGED TO F E D E R A L INSURANCE
RESERVE.
(Proposed S e p t e m b e r 5, 1945.)
On September 5, the Federal Savings and Loan
Insurance Corporation issued Bulletin No. 20 in
notification of a proposed amendment of Section
301.12 (e) of the Rules and Regulations for Insurance
of Accounts. The principal change in this subsection, which relates to the declaration of dividends
when losses are charged to the Federal insurance
reserve, would be the requirement specifying that
each insured institution accumulate, within 13 years
of the effective date of insurance, a Federal insurance
reserve equivalent to 2% percent of all insured
accounts. The requirement that these institutions
accumulate in this account a sum equivalent to 5
percent of insured accounts within 20 years of the
effective date of insurance would be incorporated in
the subsection by this amendment.
(e) Declaration of dividends when losses are charged to Federal insurance reserve.—An insured institution may not pay dividends from its Federal insurance reserve account.
(1) If at any time before the Federal insurance reserve account equals 5
percent of all insured accounts, losses are charged to such reserve account
the insured institution shall not declare any dividends until such reserve
account equals a sum aggregating the credits of three-tenths of 1 percent of
its insured accounts hereinabove required to be annually credited to such
reserve account and until such reserve account also meets the requirements
of paragraphs (2) and (3) hereof. If at any time after the Federal insurance
reserve account equals or exceeds 5 percent of all insured accounts, losses
are charged to such reserve account so that such reserve account is reduced
below 5 percent of all insured accounts, the insured institution shall credit
an amount sufficient to restore such reserve account to 5 percent of all insured
accounts before any dividend can be paid on the shares of the insured institution: Provided, however, that if such reserve account shall have been brought
up to 5 percent of all insured accounts by credits thereto in excess of the
amounts hereinabove required to be annually credited to such account,
then it shall only be necessary before dividends may be declared or paid by
the insured institution, to restore such reserve account to an amount which
shall equal a sum aggregating the credits of three-tenths of 1 percent of its
insured accounts hereinabove required to be annually credited to such reserve account and to an amount which shall be sufficient to meet the requirements of paragraphs (2) and (3) hereof, and thereafter such annual credits shall
be resumed until the net credits again equal 5 percent of all insured accounts.
Even though losses may have been charged to the insurance reserve account,
dividends may be declared and paid in any year if the declaration of such
dividends is approved by the Corporation.
(2) Each insured institution shall build up its Federal insurance reserve account to 5 percent of all insured accounts within a reasonable period, not exceeding 20 years from the effective date of insurance. An insured institution
which has been insured for 20 years or more may not pay any dividends if any
losses are charged to the insurance reserve which reduce such reserve below 5
percent of its insured accounts: Provided, that for any year dividends may be
declared and paid when losses are so charged to such reserve if the declaration
of such dividends in such case is approved by the Corporation.
(3) Each insured institution shall build up its Federal insurance reserve account to 2y2 percent of all insured accounts within a reasonable period, not
exceeding 13 years from the effective date of insurance. An insured institution
which has been insured for 13 years or more may not pay any dividends if any
Sep/emfcer 1945
losses are charged to the insurance reserve which reduce such reserve below
2y2 percent of its insured accounts: Provided, that for any year dividends may
be declared and paid when losses are so charged to such reserve if the declaration of such dividends in such case is approved by the Corporation.
The proposed amendment will not be adopted by
the FSLIC until at least 30 days have elapsed after a
copy has been mailed to each member of the Federal
Savings and Loan Advisory Council. (September 6,
1945.)
Amendment to Rules and Regulations
FHLBA
Bulletin No. 44
A M E N D M E N T TO R U L E S AND REGULATIONS FOR THE F E D E R A L
SAVINGS AND LOAN SYSTEM RELATING TO AUTHORIZATION O F
ADDITIONAL LENDING POWERS NECESSARY F O R CHARTER K
ASSOCIATIONS TO PARTICIPATE I N MORTGAGE LENDING U N D E R
THE SERVICEMEN'S READJUSTMENT ACT O F 1944. (Approved
August 30, effective August 31, 1945.)
Section 203.21 of the Rules and Regulations for
the Federal Savings and Loan System, which was
added on October 19, 1944, has been rescinded and
the following section substituted therefor.
The new section restates the previously provided
mechanism for Charter K associations, which have
adopted Section 14.1, to make loans guaranteed by
the Administrator of Veterans' Affairs under Title
I I I of the GI Bill of Rights, removing, however, the
necessity for filing applications and receiving acknowledgment. (The original Section 203.21 was
published in the R E V I E W in November 1944, page
63. Provisions and procedures for the adoption of
Section 14.1 were published in December 1943,
page 62). In addition, the new section specifies the
terms, types, percentages and ratio to assets of loans
permissible under the increased lending powers
provided in this amendment.
203.21 Additional Lending Powers. Federal associations operating under Charter
K, and having duly adopted the standard Section 14.1 amendment thereof may,
upon approval of the directors of said association, use the following lending powers
provided that all loans made pursuant to this Section shall comply with the requirements of Section 5 (c) of Home Owners' Loan Act of 1933, as now or hereafter amended:
(1) The increase of the present authorized percentage of lending to appraised
value of the underlying improved real estate security to the extent of the
guarantee by the Administrator of Veterans' Affairs under Title I I I of the
Servicemen's Readjustment Act of 1944, and any amendments thereto,
and the loan plans, practices and procedures now or hereafter provided by
the Administrator of Veterans' Affairs thereunder.
(2) Loan plans as follows, provided, however, that all loans under this subparagraph (2) shall be permitted under this Section only when such loans,
together with all other loans which are included in the 15% of assets limitation fixed by Section 13 of Charter K, are not in excess of 15% of the assets of
the particular Federal association:
(i) In an amount not exceeding 60% of the value of real estate which is
improved by an income-producing structure thereon, when such loans
(Continued
on p . 370)
359
RESIDENTIAL BUILDING ACTIVITY AND SELECTED INFLUENCING FACTORS
INDEX
1935-1939=100
BY Y E A R S
220
BY M O N T H S
1 1 1 1 1
200
HOME LOAN BANK AD
( FED.
U.S. DEPT OF LAB. RECORD*3
1
I
160
(
!
120
\f
IV
/
/
«SV( 5S.6 LN. LE!\ 0.
FED. HOM : L N . BK.A DMyJ
V
80
/
^
!
!
i
y PRIVATE
:•
k
.
f
|
CONSTRUCTION
I I S 2 FAMILY DWELL. UNITS
Ajr
|
V^/
NONFARM *
F ORECLOSURES
V
20
;
f
\ ^ ..«•
40
fS./^
ifVr
i
/r
\
60
.«*.
i
:
u_ J * "
100
i
i ' y vl '
/| V T
/VsVGS 8 LN. LEND.
/
/
f
i
*
!/
I
/ '\
/
\
i
A
y
\
140
I
PRI S/ATF
CONSTRUCTION
I 8 2 FAMILY DWELL. UNIT
i
180
ADJUSTED FOR SEASONAL VARIATION
- (F!" D
H 0
M F
> M RK
r"sr~
1 ^
_ l
Aniuil
x-NONFARM
l
0
I40|
!
FORECLOSURES
r+r •
,,
r.Trrr- "
11
11
11
...
[......
_.._.._.._,_..i-J
L~ . M. .M. ./ tif f_W. L •::.
^BUILutNb
rtt/ota
120!
11
4
HLN/b r
^BUILDING
80
60'
280
MATERIAL
PRICES
;
(U.S. DEPT OF LABOR)
I
I
_j i i i
I L_
1 1 ! 1
I I
! 1
1 1 1 1 I I
1 1
ADJUSTED FOR SEASONAL VARIATION
:
260
240
INDL ISTRIAL
220
PRODUt rnoN-*s
KFED. rctst. K V t
BUAK
0)
r
j—-^—T^-to
/
1
-
I40|
/
120
\
\;
100
tr INCOME
PAYMENTS
( U S . DEPT OF COMMERCE)^*,
£\
J
CREDIT
II.
i&ZZ
^
—
•
*"*\
v,#
COMt: PAYMENT S
ff
-MFG.
EMPLOYMENT
(U.S. DEPT OF LABOR)
j
;
>
i :1 i ! I i « ! i
CONSUMER
1
J
MFG. EMPLOY rMEN TS
i i
I 1
THOUSNEW RESIDENTIAL CONSTRUCTION
i
i
1 !
i 1
1944
1943
1930 *3I '32 '33 '34 '35 '36 '37 '38 '39 '40 '41 '42 '43 '44
BILLIONS
1
*'*"
H..^
<&''
*\*
1
s.
sp^\
80
1
f INDUSTRIAL 1*RODl JCTION
..•••**••••..
i
160
I
^Jr"->.
. *^T «
11
180
'
:
**?
1
200|
60
:
NDEX
1| 1 1 1 1
1945
COST OF STANDARD SIX-RM. HOUSE
25r
$10.
URBAN AREAS - NO. OF DWELL. UNITS
,TOTAL
CONSUMER
1935-19 39 - 100
CREDIT
^
LABOR-,.
^^L
•^z
MATERIAL
'*
MO
nliilnh
360
iihilnlii
An
^•&te£
1111iii i i : 1 1 1 I I I M ! n
1 l1i i h i l n
III IIIIII'LL
Federal Home Loan Bank Review
« « «
MONTHLY
SURVEY
» » »
HIGHLIGHTS
/. Industrial production, affected by post-VE Day cutbacks, dropped 8 points in July to 212 percent of the 1935-1939
II. Urban residential construction increased 17 percent in July when units totaled
1944 month.
15,911—nearly
average.
62 percent more than in the same
III. New lending by savings and loan associations, in spite of a 4-percent decline in July, totaled $160,000,000—28
than in the same month last year.
A. Construction loans increased fractionally, while all other types declined.
B. In contrast to the over-all decline, five FHLB Districts showed increases during July.
IV. Mortgage recordings of $20,000
or less declined 4 percent from June. In July the volume aggregated
A. All types of mortgagees and all FHLB Districts, except Topeka, shared in this drop.
B. Recordings by savings and loan associations accounted for a record proportion—36.2 percent—of
percent greater
$469,000,000.
the total volume.
V. FHLB advances outstanding totaled $121,608,000
at the end of July—$14,500,000
less than at the same time last year.
A. General reserves and undivided profits of all insured associations, amounting to $356,000,000,
were 9 percent higher
than six months ago.
B. Total resources of all Federals, as of July 31, were $3,550,000,000—an
increase of $24,000,000
during the month.
ik
BUSINESS CONDITIONS-Cutbacb
reflected in production
The end of the war is, of course, the big news in
business and industry. Reconversion, which got
under way almost within hours of the Japanese
capitulation, has already started far-reaching changes
in our national economy. The broad outline of
some of the significant alterations in the wartime
set-up are discussed on page 343, but it is still too
soon to have data on many early results.
Industrial production continued, in July, to show
the effects of accelerated cutbacks incident to a onefront war, dropping from 220 in June to 212 percent
of the Federal Reserve Board's seasonally adjusted
index (1935-1939=100). This was 18 points below
the July 1944 figure and reflected the lowest level of
industrial activity since the early months of the war
(September 1942).
Aircraft production declined 20 percent during
July, and operations at shipyards and in other
munitions industries were reduced considerably
from June rates. At the same time, production of
lumber, stone, clay, and glass products was maintained.
Total employment, as reported by the Bureau of
the Census, increased by 600,000 during July when
it reached 52,660,000—still 1,340,000 below the July
1944 level. The month's increase, however, was
not sufficient to offset the greater gain in the total
labor force (up 610,000 to 53,750,000). As a result,
the number of unemployed increased 90,000 to total
1,090,000 in July.
September 194S
^r
#
Department store sales, as measured by the
Federal Reserve Board's seasonally adjusted index
rose 16 points in July to 218 percent of the 1935-1939
average, compared with only 189 percent in July last
year. This upward trend continued during early
August when the index again stood considerably
higher than at the same time a year ago.
The Labor Department's index of wholesale commodity prices (1926=100), when converted to the
basis of 1935-1939 = 100, showed only a fractional
decline between the last week of June and that of
July—down 0.1 percent to 131.3 percent. This
gradual downward movement continued through
the week ending August 18 when the index stood at
130.9. Despite the recent trend, though, it was 1.8
percent above the corresponding week of 1944.
Money in circulation, belying the opinion that the
upward trend had been halted, reached a new alltime high as reported in the U. S. Treasury Monthly
Statement. At the end of July, for the first time, it
exceeded $27,000,000,000. The increase during the
month amounted to $422,229,000—almost double
the gain registered in the same month last year.
[1935-1939 = 100J
T y p e of index
H o m e construction ( p r i v a t e ) l - _.
R e n t a l index (BLS)
Building material prices.. _
Savings a n d loan l e n d i n g '
Industrial production i
M a n u f a c t u r i n g e m p l o y m e n t i___
I n c o m e p a y m e n t s ! . . . _._
r
1
July
1945
79.1
108.3
131.2
224.7
212.0
148.3
232.3
June
1945
71.7
108.3
131.1
218.6
r
220. 0
r
153. 2
r
244. 6
Percent
change
+10.3
0.0
+0.1
+2.8
-3.6
-3.2
-0.9
July
1944
52.0
108.2
129.4
175.1
230.0
170.8
233.2
Percent
change
+52.1
+0 1
+1.4
+28.3
-7.8
-13.2
+3.9
Revised.
Adjusted for normal seasonal variation.
361
B U I L D I N G A C T I V I T Y — E x c e e d e d (ike
1944 month for Fourth time
Although still more than 4 percent below the
volume reported for the like month in the first year
of war, the total of 15,911 family dwelling units
covered in building permits issued and Federal
contracts awarded during July was nearly 62 percent larger than in the corresponding month of 1944.
This was the fourth successive month in which the
number of dwellings authorized has exceeded the
volume of the corresponding month last year. The
monthly totals are still small and it cannot be presumed that all of these units have been placed under
construction, but the upward movement of this
series is the first statistical indication of a post-VE
D a y gain in residential building.
Of the July total, private construction accounted
for 81 percent, or 12,054 units, the largest July number since 1941. The proportion of public to total
residential building in urban areas has been declining
steadily since April when it accounted for 24 percent
compared with 19 percent in July.
Home building in the first seven months of 1945
declined 2 percent from the same period last year.
However, private construction advanced 4 percent
in this comparison, accounting for close to 88 percent of total. [TABLES 1 and 2.]
B U I L D I N G COSTS—Gradual
increase continued
Residential construction costs continued to increase gradually during July, according to the
FHLBA's index of the cost of building the standard
house. Preliminary computations placed the July
index at 135.6 (1935-1939=100) compared with
135.3 in June (revised). Both materials and labor
advanced slightly during the month, the former to
133.0 and the latter to 140.6. Since July of last year,
the total index has advanced 1.9 percent, the result
of a 1.5 percent rise in the cost of building materials
and an increase of 2.4 percent which was reported
in labor charges.
Construction costs for the standard house
[Average m o n t h of 1935-1939=100]
Material
Labor
Total
1
Revised.
362
Percent
change
July
1944
133. 0 132. 7
140. 6 r 140. 5
+ 0. 2
+ 0. 1
131. 0
137. 3
+ 1.5
+ 2. 4
135. 6 ' 135. 3
+ 0. 2
133. 1
+ 1.9
Julv
1945
Element of cost
_.
June
1945
Percent
change
The U. S. Department of Labor's composite index
of wholesale prices of building materials also continued upward during July, advancing fractionally
to 131.2. Indexes of the prices of brick and tile and
of lumber advanced during July, but those for paint
and paint materials declined slightly. All other
components of the over-all index remained unchanged from June. [TABLES 3, 4 and 5.]
MORTGAGE
decline in July
LENDING—Slight
Although continuing at a very high level, new
mortgage lending by all operating savings and loan
associations declined 4 percent during July. The
estimated $160,000,000 of new loans made during
the month represented a drop of $7,000,000 from
June but was $35,000,000, or 28 percent, greater
than the volume estimated for July 1944.
New mortgage loans distributed by purpose
, [Dollar a m o u n t s are shown in thousands]
Purpose
ConstructionH o m e purchase
Refinancing
Reconditioning
Other purposes
Total
Julv
1945
June
1945
$17, 658 $17,
112, 761 116,
15, 622 17,
3, 351 3,
11,007 12,
Percent
change
567
+ 0.
798
-3.
147
-8.
364
-0.
435 - 1 1 .
160, 399 167,311
Julv
1944
Percent
change
5 $7, 078 + 1 4 9 . 5
5 93, 232 + 20. 9
9 13, 871 + 12. 6
4 2 , 8 4 1 + 18. 0
5 8, 014 + 37. 3
- 4 . 1 125. 036 + 28. 3
Loans made for the construction of homes, which
accounted for 11 percent of total loans made during
the month, increased fractionally from June. All
other loan-purpose categories, however, registered
declines, ranging from 11 percent in the " other purpose" group to a fractional drop in reconditioning
loans. Home purchase lending, which fell off 3.5
percent during the month, accounted for 70 percent
of the July total. A year ago, 75 percent of all
loans made by associations were for this purpose.
The drop in new lending during July was not general throughout the United States. Three Districts
(Winston-Salem, Cincinnati and Los Angeles) reflected gains of about 1 percent, while Little Rock
and Topeka associations showred increases of 12 and
13 percent, respectively.
During the first seven months of 1945, savings and
loan associations extended about $994,000,000 of new
mortgage credit compared with $816,000,000 in the
January-July period of last year. Associations in all
Federal Home Loan Bank Review
TOTAL LOANS MADE BY ALL SAVINGS AND LOAN ASSOCIATIONS
UNITED STATES - BY TYPE OF ASSOCIATION
1943
1944
1945
UNITED STATES - BY PURPOSE OF LOAN
BY MONTHS
BANK SYSTEM
parts of the country contributed to this rise. Similarly, all types of loans registered gains: "Other
purpose", 30 percent; home purchase, 24 percent;
refinancing, 14 percent; and reconditioning, 13 percent. Home construction loans, although showing
substantial percentage gains in recent months, registered the smallest relative rise in this cumulativecomparison—up 10 percent from the same period
last year. [TABLES 6 and 7.1
With one exception, the total amount of mortgages recorded during July in each of the F H L
Bank Districts was below that shown during June.
In the Topeka region, July mortgage recordings
were 3 percent greater than in June.
Since the first of this year, an estimated $3,026,000,000 of nonfarm mortgages of $20,000 or less have
been recorded in the United States, an increase of 17
percent over the first seven months of last year and
47 percent above the same 1943 period. With the
exception of life insurance companies, whose recordings declined 8 percent, all types of lenders reported
greater activity than in the like months of last year.
Significant shifts have occurred in the relative
participation of the several types of lenders in total
mortgage financing activity since America's entry
into World War II. By far the greatest increase during the January-July period of this year compared
with that of the same 1941 months has been shown by
individual lenders. Their percent of the total rose
from 16.5 percent in 1941 to 26.1 percent in 1945.
Savings and loan associations were the only other
type of lender to show a gain, increasing their percent
of the total from 32.0 to 34.7 percent. Declines
shown by other types of mortgagees were as follows:
Insurance companies from 8.3 to 4.6 percent; banks
and trust companies from 24.9 to 18.8 percent;
mutual savings banks from 4.4 to 3.6 percent, and
"other" mortgagees from 13.9 to 12.2 percent.
[TABLES 8 and
9.]
M o r t g a g e recordings b y t y p e of mortgagee
[Dollar a m o u n t s are shown in tl ou sands]
Type of lender
MORTGAGE RECORDINGS—July
volume down slightly
The total volume of nonfarm mortgages of $20,000
or less recorded during July—$469,000,000—represented a drop of 4 percent from the recent high
volumes of $487,000,000 recorded during each of the
two preceding months. All types of mortgage
lenders shared in this drop. The greatest relative
decline from June, 8 percent, was reported by insurance companies and the smallest, 1 percent, by
banks and trust companies. Recordings by savings
and loan associations, which accounted for 36.2
percent of the July total (a record proportion),
declined 4 percent from the preceding month.
September 1945
Savings and loan associations
Insurance companies
Banks, trust companies-_
M u t u a l savings banks
Total
PerPercent
cent
Cumulachange
of
tive refrom
cordings
Julv
June
1945 (7 months)
1945 amount
-3.
-7.
-1.
-2.
-4.
-5.
6
5
2
7
0
9
-3. 6
36. 2 $1,
4. 3
19. 2
3.9
24. 9
11. 5
049,
137,
570,
107,
790,
370,
454
736
349
737
745
126
Percent
of
total
recordings
34.
4.
18.
3.
26.
12
7
6
8
6
1
2
100. 0 3, 026, 147 100. 0
FHLB SYSTEM—Outstand ing
advances
dropped in July
The balance of advances outstanding at the end of
July dropped to $121,608,000—down $10,000,000
from June and $14,500,000 less than in July 1944.
363
Only in 1943 were the outstanding advances reported
for any July in the past 10 years below the 1945
figure for that month.
Declining sharply to about one-twelfth of the alltime high volume of June, the monthly advances made
by the 12 F H L Banks in July totaled $7,444,000.
All Districts conformed to the downward trend in
amounts loaned. The July advances, which were
only one-fourth as large as those in the same month
of 1944, represented the smallest amount advanced
in that month since 1939.
Repayments to the Banks during July reached
$17,501,000. This was almost three times as much
as all Banks received in June, although it represented a 15.2 percent decrease from the July 1944
repayments. Only Topeka deviated from the general
pattern of larger repayments in July than in June.
Repayments exceeded advances in all Districts.
[TABLE
12.]
F L O W OF PRIVATE REPURCHASABLE CAPITAL
Private savings invested in and withdrawn from
all operating savings and loan associations during
July were substantially higher than in the same
month last year. The estimated $243,000,000 of
savings received during July 1945 was a record
amount and represented an increase of $52,000,000,
or 27 percent, over gross receipts in July 1944.
Share investments and repurchases, July 1945
[Dollar a m o u n t s are shown in thousands]
I t e m a n d period
All associations
Nonmembers
Share investments:
l s t 7 m o s . 1945__ $1,335,786 $1,083,488 $158, 492 $93, 806
l s t 7 m o s . 1944__ $1,092,128 $848, 526 $147, 774 $95, 828
Percent change
+ 22
-2
+ 28
+7
Julv 1945
$243, 361 $196, 944 $28, 666 $17, 751
Julv 1944
$191, 535 $155, 218 $22, 364 $13, 953
+ 27
+ 28
+ 27
+ 27
Percent change
Repurchases:
l s t 7 m o s . 1945__
l s t 7 m o s . 1944__
Percent change
Julv 1945
Julv 1944
Percent change.___
Repurchase ratio
(percent):
1st 7 mos. 19451st 7 mos. 1944 _
Julv 1945
Julv 1944
364
INSURED ASSOCIATIONS—General
reserves and undivided profits increased
As of July 31, the 2,473 insured savings and loan
associations reported total assets of $5,594,000,000,
of which 6.4 percent had been set aside in reserves.
At this time their general reserves and undivided
profits accounts totaled about $356,000,000, standing 9 percent higher than they were six months ago.
Private repurchasable capital showed a 1-percent
gain during July to total $4,840,000,000 at the end of
the month.
For each $100 invested in these institutions in
July, $74 was withdrawn. [TABLE 13.]
FEDERAL SAVINGS AND LOAN ASSOCIATIONS
Uninsured
members
All insured
associations
Withdrawals of approximately $179,000,000, also
a record month for recent years, showed a somewhat
smaller rise—both in percent and amount—$28,000,000, or 19 percent, over a year ago. As the
result of the greater gain in gross receipts, the private
repurchasable capital of all associations was increased by approximately $64,000,000 during July
compared with $41,000,000 in the same 1944 month.
Cumulative data for the first seven months of this
year placed total savings receipts by these institutions at approximately $1,336,000,000, about 22
percent more than in the same period of last year.
Withdrawals through July amounted to $759,000,000, resulting in a net gain of about $577,000,000 in
the amount of private savings held.
On July 31 there were 1,467 associations operating
under Federal Charter, additions during the month
consisting of one newly chartered association and one
institution converted from state to Federal charter.
Total resources of these associations amounted to
$3,550,000,000, of which $203,300,000, or 5.7 percent,
constituted general reserves and undivided profits.
Progress in number and assets of Federals
[Dollar a m o u n t s are shown in thousands]
$758, 510
$645, 198
+ 18
$179, 183
$150, 971
+ 19
56.
59.
73.
78.
8
1
6
8
$588, 412 $106, 688 $63, 410
$481, 126 $99, 068 $65, 004
+ 22
-2
+8
$144, 932 $22, 191 $12, 060
$120, 349 $19, 095 $11,527
+ 16
+ 20
+5
54.
56.
73.
77.
3
7
6
5
67.
67.
77.
85.
3
0
4
4
67.
67.
67.
82.
6
8
9
6
Number
Class of association
New
Converted
Total
Approximate assets
Julv 31, J u n e 30,
1945
1945
632
835
1,467
Julv 31,
1945
J u n e 30,
1945
631 $1, 220, 423 $1, 212, 465
834 2, 331, 731 2, 315, 562
1,465
3, 552, 154
3, 528, 027
Federal Home Loan Bank Review
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 1945, by Federal Home Loan Bank District and by State
[Source: U. S. Department of Labor]
[Dollar amounts are shown in thousands]
All residential s t r u c t u r e s
N u m b e r of family
dwelling u n i t s
Federal Home Loan Bank District and State
U N I T E D STATES
- .
Connecticut
Maine
Massachusetts
_ _
__
N o . 2—New Y o r k
.
-
7,397
$46, 220
$22, 684
270
78
1,197
211
_ _ _ _
_______
_ _ _ _ __
53
20
145
4
48
31
1
36
124
1
63
53
20
145
4
48
31
1
36
10
260
31
676
14
216
124
1
63
10
260
31
676
14
216
-
N o 10—Topeka
-.
Colorado
-_ _ _ _
Nebraska.
Oklahoma
__ _ _
. _ _
42
3,644
114
583
42
3,012
113
--
27
15
1,503
2,141
75
39
268
315
27
15
1,318
1,694
75
38
_
387
182
1,733
450
206
118
974
317
95
23
7
882
85
304
13
-
_ _ .
.
_ _ .
_
_ _ _ __
.
_. . . .
__
JST0 j i _ p o r t l a n d
Idaho
___
Montana
__
Oregon
...
Utah
Washington
W y o m i n g . __
_ --.
__
_ _
_ _ . _ _ . _ _ .
_ _
___ _
_ _ _
_ _ _ __ _. _
_ _ ...
N o . 12—Los Angeles
Arizona. .
California
Nevada
-
_-.
- ...
_-_
...
____
. __ _
-
.. _ _ ... _
_
_ _ .
. . . .
Szpizmbzr 1945
.
.
__
_
23
747
_ _ _
_ _
. _ .__
23
352
395
_ _ __
_ -
_
J u l y 1944
11,244
-
...
J u l y 1945
211
- -
L i t t l e Rock
J u l y 1944
$30,015
.
South Dakota
No 9
J u l y 1945
1,197
-
N o 8—Des Moines
J u l y 1944
$59, 824
_ _ _
Ohio
J u l y 1945
78
_.
_____--_-_
Florida
J u l y 1944
9, 830
___ .
Pennsylvania
J u l y 1945
270
_ _
_
No. 3—Pittsburgh
P e r m i t ^valuation
15,911
-
New York
N u m b e r of family
dwelling u n i t s
P e r m i t \ aluation
. ___ - ._ - .- - --
_ _ _ _
N o . 1—Boston
All p r vate 1- a n d 2-family s t r u c t u r e s
....
____________
_ __
...
1
1
349
37
159
23
1,641
85
437
13
1
168
37
1,936
1,547
5,595
5,056
1,399
660
4,042
1,332
208
461
562
212
21
233
75
164
120
222
381
78
626
39
32
49
320
1,430
1,569
595
109
745
86
741
110
547
927
79
3,158
34
73
128
208
56
448
201
21
233
68
164
112
88
243
75
26
39
28
49
320
236
1,223
588
109
745
80
741
86
328
549
76
70
34
61
128
1,137
738
5,922
2, 690
1,000
645
5,377
2,363
35
837
265
13
539
186
123
5,060
739
12
2,325
353
35
718
247
13
446
186
123
4,551
703
12
1,998
353
925
685
4,544
2,784
925
494
4,544
2,171
304
621
195
490
1,143
3,401
765
2,019
304
621
189
305
1,143
3,401
753
1,418
1,184
442
6,354
1,958
673
415
3,627
1,883
1,548
335
850
334
354
88
4,572
1,782
1,562
396
374
299
349
66
1,979
1,648
450
110
1,976
213
440
110
1,967
213
69
232
97
20
32
22
23
58
2
5
274
1,238
313
74
77
49
38
115
6
5
69
232
93
20
26
22
23
58
2
5
274
1,238
309
74
72
49
38
115
6
5
2,141
1,937
4,729
4,083
1,798
1, 748
3,875
3,643
191
95
103
320
1,432
62
497
79
170
1,129
462
154
96
686
3, 331
20
1,154
40
405
2,464
191
95
103
75
1,334
62
497
79
90
1,020
462
154
96
87
3,076
20
1,154
40
263
2,166
628
147
1,843
326
428
147
1,387
326
118
279
5
174
12
24
43
68
484
633
232
494
23
40
194
69
118
83
53
174
12
24
43
68
484
190
219
494
23
40
194
69
2,355
477
6,704
1,725
630
469
2,778
1,703
22
55
266
88
1,912
12
20
4
78
225
137
13
99
141
952
291
5,169
52
22
11
129
1,037
490
36
22
55
168
72
301
12
20
4
78
225
129
13
99
141
697
261
1, 528
52
22
11
129
1,037
468
36
3,751
3,445
15, 583
10, 405
2,892
2,471
13, 440
8, 409
81
3,604
66
27
3,411
341
14, 864
378
47
10, 344
14
73
2,753
66
27
2,437
7
313
12,749
378
47
8,348
14
7
365
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
IVTonthly totals
T y p e of construction
P r i v a t e construction
1-family dwellings
2-family dwellings '
_
3-and more-family dwellings
2
P u b l i c construction
T o t a l u r b a n construction
1
2
Permit valuation
J a n u a r y - J u l y totals
1944
J u l y 1945
J u n e 1945
J u l y 1944
1945
12,954
11,982
8,114
64,010
61,462
10, 464
780
1,710
10,437
544
1,001"
6. 537
860
717
52, 237
4, 599
7, 174
46, 771
6, 763
7,928
2, 957
1,598
1, 716
8, 869
12.868
15,911
13, 580
9. 830
72,879
74, 330
J a n u a r y - , Fuly totals
M o n t h l y totals
J u l y 1945 \ J u n e 1945
$51, 675
43,519
2,701
5,455 !
J u l y 1944
1945
1944
$48, 161
$24, 833
$226, 902
$193, 439
43, 551
1,915
2, 695
20,174
2,510
2,149
191,492
15,340
20, 070
147,535
22, 692
23, 212
8,149 1
4,423
5,182
18, 361
31, 928
:
52, 584
30,015
245. 263
225, 367
59,824
Includes 1- and 2-family dwellings combined with stores.
Includes multi-family dwellings combined with stores.
Table 3 . — B U I L D I N G COSTS—Index of building costs for the standard house in representative
cities in specific months *
[Average month of 1935-1939 = 100]
1945
1944
1943
1942
1941
1940
1939
Aug.
Aug.
Aug.
Aug.
Aug.
F e d e r a l H o m e Loan B a n k District
a n d city
Aug.
No. 3—Pittsburgh:
W i l m i n g t o n , Del
_. . .
C h a r l e s t o n , W . Va
-
N o . 5—Cincinnati:
Louisville, K y
C l e v e l a n d , Ohio
Memphis, Tenn
N o . 9—Little R o c k :
L i t t l e Rock, A r k
N e w Orleans, L a
_
_ .
. .
_
May
Feb.
Nov.
Aug.
136.2
158.3
135.4
135. 4
151.9
134.1
134. 9
151.4
134.2
134.9
151.1
134.2
134.9
149.7
133.4
130.0
145.7
121.3
129.7
138.5
121.3
115.9
120.1
108.0
93.9
110.0
r 100. 7
97.5
103.8
100.9
135.7
148.1
137.7
136.3
147.5
136.9
135. 2
147.9
136.9
134.7
147.8
135.6
134.3
142.6
135.3
122.0
138.5
121.7
116.4
127.3
118.6
108.6
121.3
108.8
• 104.4
108.4
102.8
100.7
102 1
101.2
138. 8
141.9
139.2
132.3
126.8
139.0
141.9
139.0
132.0
126.8
138.4
141.9
137.2
134.7
126.4
138.5
141.7
137.2
132.0
126.8
138.1
141.2
137.2
130.9
126. 7
135. 0
131.4
123.9
118.7
116.5
135.0
131.9
122.7
117.7
115.9
113.9
123.9
118.9
110.3
108.9
122.3
151.9
134.5
122. 4
151.4
133.0
122.3
150.9
133.0
122.0
151.3
132.9
122.0
148.9
133.0
111.5
133. 5
120.7
111.8
128.1
118.2
107.7
105.4
110.6
r
104. 5
102.5
106.3
«• 103. 8
96.8
102.7
101.4
103.0
103.5
100.2
99.0
95.4
105.5
97.9
95.0
102.3
N o . 12—Los Angeles:
Los Angeles, Calif
Reno, Nev
_ -
-
1
Indexes of August 1941 and thereafter have been revised in order to use retail material prices collected by the Bureau of Labor Statistics.
This index is designed to measure the changes in the costs of constructing a standard frame house and to provide a basis for the study of the trend of costs within an
individual community or in different cities.The various units of materials and labor are selected in accordance with their contribution to the total cost of the completed
dwelling.
Material costs are based on prices for a limited bill of the more important items. Current prices are furnished by the Bureau of Labor Statistics and are based on
information from a group of dealers in each city who report on prices for material delivered to job site, in average quantities, for residential construction. Because of
wartime conditions, some of the regular items are not available at times and, therefore, substitutions must be made of similar products which are being sold in the current
market.
Labor costs are based on prevailing rates for residential construction and reflect total earnings, including overtime and bonus pay. Either union or nonunion rates
are used according to which prevails in the majority of cases within the community.
Figures presented in this table include all revisions up to the present time. Revisions are unavoidable, however, as more complete information is obtained and
becomes available for inclusion in this table.
Cities in FHLB Districts 2, 6, 8, and 11 report in January, April, July, and October of each year; those in Districts 3, 5, 9 and 12 report in February. May, August
and r November; and those in Districts 1, 4, 7 and 10 report in March, June, September and December.
Revised.
366
Federal Home Loan Bank Review
Tabic 4 . — B U I L D I N G COSTS—Index of building costs for the standard house
[Average m o n t h of 1935-1939=100]
J u l y 1945 J u n e 194 5 M a y 1945 A p r . 1945 M a r . 1945 Feb.1945 J a n . 1945 Dec. 1944 N o v . 1944
E l e m e n t of cost
Material
Labor
_ _
._
Total
Oct. 1944 Sept. 1944 Aug. 1944 J u l y 1944
p 133.0
v 140.6
132.7
r 140. 5
132.5
r 140. 5
r 132.4
' 140.5
132.3
140.4
131.9
140.1
131.7
140.1
131.5
140.0
131.5
139.9
131.3
139.1
131.2
138.5
131.3
137.3
131.0
137.3
v 135. 6
' 135. 3
135. 2
r 135. 1
'135.0
134.7
134.5
134.4
134.4
133.9
133.7
133.3
133.1
r
Revised.
p Preliminary.
Table 5 . — B U I L D I N G COSTS—Index of wholesale prices of building materials in the United States
[Source: U . S. D e p a r t m e n t of L a b o r ]
[1935-1939=100; converted from 1926 base]
All b u i l d i n g
materials
Period
Brick a n d
tile
P a i n t and
paint materials
Lumber
Cement
Plumbing
and heating
Structural
steel
Other
1943: J u l y
123.6
109.0
102.7
r 155.6
125.4
118.8
103.5
109.5
1944: J u l y
August
September
October
November
December
129.4
129. 5
129.5
129.9
130.0
130.0
110.8
110.8
111.7
115.3
115.6
115.9
105.8
105.8
106.3
107.0
107.2
107.0
171.7
171.9
171.5
171.3
171.3
171.3
129.7
129.7
129.7
130.3
130.7
130.7
121.4
121.4
121.4
121.4
121.4
121.4
103.5
103.5
103.5
103.5,
103.5
103.5
111.5
111.6
111.7
111.7
111.7
111.7
130.4
130.6
130.8
130.8
131.0
131.1
131.2
121.5
121.6
121.8
121.7
121.8
122.1
122.9
106.9
108.7
109.1
109.1
109.1
109.1
109.1
171.3
171.4
171.3
171.4
171.9
172.5
172.7
130.7
130.8
130.7
130.7
130.8
130.7
130.4
121.4
121.4
121.4
121.4
121.4
121.7
121.7
103.5
103.5
103.5
103.5
103.5
103.5
103.5
111.9
112.0
112.3
112.3
112.6
112.8
112.8
+0.1
+ 1.4
+0.7
+ 10.9
0.0
+0. 1
+0. 6
-0.2
+0.5
0.0
+0.2
0.0
0.0
0.0
+ 1.2
_._ .
...
1945: J a n u a r y ._ . . .
February
March
April
__...
May
_'
June . .
July
P e r c e n t change:
J u l y 1945-June 1945
J u l y 1945-July 1944
__
.
._
. ___
...
+?. 1 '
Revised.
Table 6 . — M O R T G A G E LENDING—Estimated volume of new home mortgage loans by all savings
and loan associations, by purpose and class of association
[ T h o u s a n d s of dollars]
Class of association
P u r p o s e of loans
Period
Construction
H o m e purchase
Refinancing
Reconditioning
L o a n s for
all other
purposes
$106,497
$30,441
Total
loans
Federals
State
members
Nonmembers
$802,371
$167,254
$77,398
$1,183,961
$511,757
$539, 299
$132,905
57, 386
9, T09
412,493
77, 555
99, 513
14, 925
16, 601
2, 807
41,828
6, 859
627, 821
111,355
267, 458
48, 370
286, 789
50, 648
73, 574
12,337
95, 243
1,064,017
163,813
30, 751
100,228
65, 757
£83, 932
93,093
17,191
56,210
7,078
7,589
5,923
6,095
4,635
5,244
93, 232
105,050
101,884
101,461
90,182
81,508
13,871
14,152
14,495
15,253
13,265
13, 555
2,841
3,067
3,160
2,699
2,507
2.127
8,014
8,816
8,993
9,720
7,785
8,704
1945
January-July.
72, 057
723,429
106, 069
19,483
January...
February.
March
April
May
June
July
3,772
3,081
7,406
9,541
13,032
17, 567
17, 658
76,495
78,140
105,307
113,684
120,244
116,798
112,761
12,167
12,524
15,922
16,800
15,887
17,147
15, 622
1,868
1,994
2,559
2,951
3,396
3,364
3, 351
January-JulyJuly
1944.
January-July.
July
August
SeptemberOctober
November.
December..
September 1945
648, 670
135,949
373,015
365, 024
78,144
125,036
138,674
134,455
135,228
118,374
111,138
57,164
64,400
63,489
61,965
54,978
51,586
56, 539
61,377
59,162
60, 945
52, 241
49,921
11,333
12,897
11,804
12,318
11,155
9,631
73, 296
694, 334
468, 709
138, 074
87, 551
7,999
10,270
10, 287
10,778
10, 520
12,435
11.007
102, 301
106,009
141,481
153,754
163,079
167,311
160,399
46, 439
49,900
69,430
71,375
75,607
79,603
76, 355
46,452
46. 575
60,688
67,955
71,921
74, 219
70. 264
9,410
9, 534
11,363
14,424
15,551
13,489
13,780
367
Table 7. — L E N D I N G — Estimated volume of
new loans by savings and loan associations
Table 8.—RECORDINGS—Estimated nonfarm
mortgage recordings, $20,000 and under
JULY 1945
[Thousands of dollars]
[Dollar amounts are shown in thousands]
C u m u l a t i v e n e w loans
(7 m o n t h s )
N e w loans
Federal H o m e L o a n
Bank District and
class of association
July
1945
June
1945
July
1944
1945
1944
Savings I n s u r - B a n k s M u and
tual
and
ance
trust
savloan
comings
associa- panies companies b a n k s
tions
Federal H o m e Loan
B a n k District
and State
Percent
change
..
Boston.
Federal
State member
Nonmember
..
New York..
Pittsburgh
10, 079
67, 309
59, 044
+ 14.0
5,550
6,306
1,151
3,949
4,863
1,267
27, 677
31,517
8,115
21, 365
29, 923
7. 756
+29.5''
+5.3
+4.6
+41.3
5,483
7,773
2,633
6,190
8,586
2,450
3,757
5, 507
1,995
34, 007
46, 500
16,419
20, 582
35, 767
12, 264
+65.2
+30.0
+33.9
12,094
14,261
10. 095
83,128
67, 514
+23.1
6,258
4,036
1,800
6.857
5,090
2.314
4,593
3.901
1,601
39, 239
29, 037
14, 852
30,918
22, 966
13, 630
+26 9
+26.4
+9.0
. .
19, 449
19,169
14, 072 121,845
97, 939
+24.4
.
...
__ _
10, 314
7,923
1,212
10, 298
7,706
1,165
52,173
39, 861
5,905
+24. 7
4 25.0
+17.7
27, 836
27, 691
21, 325 165, 772 138, 848
+ 19.4
Federal
State member
Nonmember. .
..
Federal
State member
Nonmember..
.
Federal
State member
Nonmember..
_
Des M o i n e s
Federal
State member
Nonmember...
L i t t l e Rock
13, 007
4,381
4,687
1,800
68, 613
Cincinnati .
Chicago . . .
10, 868
+25.7
+20.0
+12.0
96, 926
Federal
S t a t e m e m b e r . _. .
Nonmember
Indianapolis..
57, 164 468, 709 373,015
56. 539 438. 074 365. 024
11, 333 87, 551 78, 144
11, 259
__ __
Federal
State m e m b e r .
Nonmember-
79, 603
74, 219
13, 489
17, 226
-
Winston-Salem.
76, 355
70, 264
13, 780
15, 889
Federal
State member
Nonmember..
_ __
Federal
. .
State m e m b e r
Nonmember..
... .
6,710
6, 449
913
65, 062
49, 835
6, 948
11,596
14, 329
1,911
11,601
14. 394
1,696
9.300
10, 374
1,651
71,026
83, 572
11,174
56, 842
70,140
11,866
+25.0
+19.2
-5.8
8,618
8, 805
7,061
55, 539
45, 058
+23.3
4,646
3, 711
261
5, 012
3,441
352
17, 487
20,143
7,221
9,073
1,193
8,988
9,739
1, 416
5,840
8,065
1,033
9,572
9,876
4,933
3,409
1,230
5,154
3,244
1, 478
Connecticut
Maine
Massachusetts
New Hampshire
R h o d e Island
Vermont ...
New York
New Jersey. New York
Delaware
Pennsylvania
W e s t Virginia
Alabama
District of C o l u m b i a . .
Florida
Georgia
__
Maryland
N o r t h Carolina
.
S o u t h C arolina
Virginia
Federal . .
State member
Nonmember
4, 677
2.280
1,358
4,176
2,089
1,121
3,164
1,926
1,197
27, 396
14, 749
8,472
20, 403
11, 006
8,019
+34.3
+34.0
+5.6
4,220
34, 522
26,162
+32.0
Portland
...
+ 19.7
+65.1
-1.8
F e d e r a l . _.
State member . _
Nonmember._
Los Angeles
F e d e r a l _.
State member . . Nonmember..
368
5.178
5,583
2,396
8,477
596
7,394
3,616
36, 547
211
12, 858
999
156
1,949
291
213
6,747
1,517
80
516
286
6,488
620
96
3,357
163
1,042
31,915
3,590
16, 637
2, 659
6,039
119
15,587
4,264
45, 305
590
2,608
2, 050
1,856
4,234
2,436
435
2,428
244
346
610
242
165
513
202
337
377
512
1,007
1,244
1,055
419
446
979
119
941
1,372
5,813
1,382
1,634
1,378
740
2,327
364
394
1,234
546
248
507
282
689
2, 516
5,232
10, 714
5,270
7,455
5, 253
2, 105
6,760
8,685
9
3,890
1, 933
26, 028
700
1,338
3,470
5,215
9
1,486
2,404
945
988
12,748
13, 280
19, 262
1,040
6,997
33
8,068
7,883
43, 283
15, 080
4,182
693
347
4,729
2,268
33
4,702
3,366
7,148
735
32, 352
10,931
10,155
1,842
7,673
287
5,331
5,192
30, 480
2,575
3,959
3, 149
285
187
235
297
1,255
36
19
1,655
1,771
3,914
168
165
812
1,325
2.876
150
168
318
1,489
3,319
54
12
5,595
9,128
14, 513
693
551
8,497
2,204
2,118
7,705
2,800
23, 324
633
2,296
411
184
4,973
116
171
121
2
1,794
383
153
255
97
1,230
431
1,642
461
259
4,912
72
759
146
12
1,811
1, 635
5,021
1,394
554
14, 720
8,409
899
2,549
6,280
2,163
20, 300
1,209
2,345
1,334
3,521
229
132
328
210
626
591
419
913
3,407
710
537
1,626
938
340
183
702
6, 409
4,118
2,801
6,972
4,975
536
4,188
513
3,865
1,942
16,019
433
384
1,351
407
2,268
132
52
23
196
120
145
169
189
391
45
746
2,556 """""468
137
438
450
1,374
292
1,030
281
17
5
326
92
1,491
11
1.109
1,051
3,683
1, 657
7,958
561
+18.3
+16.3
+17.4
+28.4
14, 068
2,038
25, 254
17. 920
6,690
39, 428
16, 940
38, 379
6,138
3, 335
29, 871
20, 836
7,857
50, 617
55,319
2, 2e0
4,142
9, 473
4,365
2,758
1, 064
6, 287
6,402
4,667
13, 562
Indiana
Michigan
+17.4
7. 386
18. 229
936
5, 292
Indianapolis
49, 864
8, 315
6,228
3,668
4,229
4, 476
46, 980
6,779
.
Chicago
..
Iowa
...
Minnesota.__ ... „
Missouri
North Dakota.
South Dakota
Little Rock
Arkansas
Louisiana...
Mississippi. . .
N e w Mexico .
Texas
Topeka
Topeka
7,897
729
942
483
58, 564
+27.6
-12.0
+30.6
1,671
4,680
10, 212
58,135
8,187
18, 577
26, 353
494
14, 892
216
1,468
2,804
Des Moines
23,711
23, 201
645
8, 796
2,358
21, 623
1,626
2,648
947
4,488
+26.6
+20.0
+12.9
2,884
3,192
68
37, 998
886
66
1,499
43
381
22
362
5,798
665
37. 919
46, 956
7,763
3,529
3,169
68
2,897
2,220
556
2,943
320
491
248
6,825
47, 996
56, 347
8,761
3,871
3,609
127
6,778
1,539
818
5,944
691
419
383
483
Illinois
Wisconsin
+4.7
9,794
2,077
264
1,475
166
441
78
1,027
9,765
1,165
+22.1
45, 424
4,501
300
22
146
20
186
934
981
92, 638
47, 557
488
1, 774
632
9,616
386
916
216
2,685
28, 532
1,064
Kentucky
Ohio
Tennessee
14, 938 113.104
6,144
13, 540
32, 281
Cincinnati
+35.3
+10.8
+22.4
6,766
.
..
Winston-Salem... . _
21, 930
21, 030
2,098
7,607
.. _
Pittsburgh . _
29, 668
23, 302
2,569
3,453
3,290
318
Total
+21.8
Boston
Federal
State member
Nonmember..
Other
mortgagees
$169, 784 $20,173 $90,199 $18, 062 $116,964 $54, 087 $469, 269
U N I T E D STATES
$160, 399 $167,311 $125. 036 $994, 334 $816, 183
UNITED STATES
Individuals
Colorado
Kansas ..
Nebraska
Oklahoma . .
Portland
Idaho . . . . .
. .
Montana
Oregon
Utah
W ashington
W v o m i n g . . . __ . . .
2,101 11,957
287
3,399
1,629
•150
3,151
2,275
157
2,796
1,264
160
20, 944
12, 506
1,072
17,494
7, 576
1,092
17, 486
' 17, 398
11,369
99,451
85, 651
+ 16.1
Los Angples
17, 595
2,299 19,118
27, 012 10, 507
76, 531
9,576
7,805
105
9,097
8,180
121
6,353
4, 950
66
52,112
46, 672
667
49, 558
35, 526
567
+5.2
+31.4
+17.6
Arizona
California
Nevada
397
17,102
96
465
93
2,183 18, 539
23
114
85
1,202
25, 517 10, 401
293
21
2, 242
73, 742
547
...
Federal Home Loan Bank Review
Tabic 9 . — M O R T G A G E RECORDINGS—Estimated volume of nonfarm mortgages recorded
[Dollar a m o u n t s are s h o w n in thousands]
M u t u a l savings
banks
Banks and trust
companies
Insurance
companies
Savings a n d loan
associations
Individuals
O t h e r mortgagees
All mortgagees
Period
Total
1944.
January-July__
July.
August
September
October . . - .
November
December
Percent
Percent
Total
Total
Percent
Total
Percent
Total
Percent
Total
Percent
Percent
Total
$1,563,678
33.9
$256,173
5.6
$877, 762
19.0
$165,054
3.6 $1,134,054
24.6
$613,908
13.3
$4,610,629
100.0
864, 634
138, 762
149,835
146,151
148,131
134,359
120, 568
33.4
33.7
34.8
35.1
35.0
34.1
33.5
150,385
24, 707
22,646
22,432
20,985
20, 543
19,182
5.8
6.0
5.2
5.4
5.0
5.2
5.3
504, 928
80,858
83,094
77, 000
76,181
71, 752
64,807
19.5
19.7
19.3
18.5
18.0
18.2
18.0
88, 297
15, 261
15,920
15,447
16, 552
15,176
13, 662
3.4
3.7
3.7
3.7
3.9
3.9
3.8
616,512
98,194
104,215
104,479
109, 767
103,513
95, 568
23.9
23.9
24.2
25.1
26.0
26.3
26.5
362, 207
53,354
55,066
50,676
51,223
48,296
46,440
14.0
13.0
12.8
12.2
12.1
12.3
12.9
2, 586, 963
411,136
430, 776
416,185
422,839
393,639
360, 227
100.0
100.0
100.0
100 0
100.0
100.0
100.0
1,049,454
111,480
111, 176
151,361
157,181
172,421
176,051
169, 784
34.7
31.4
32.8
34.9
34.5
35.4
36.1
36.2
137, 736
17,882
16,034
20, 669
19,718
21,459
21,801
20,173
4.6
5.0
4.7
4.8
4.3
4.4
4.5
4.3
570, 349
65,109
63,933
80, 000
88, 749
91,023
91,336
90,199
18.8
18.4
18.9
18.5
19.5
18.7
18.8
19.2
107, 737
12,500
10,343
13, 599
15,680
18,981
18,572
18, 062
3.6
3.5
3.1
3.1
3.4
3.9
3.8
3.9
790, 745
99,200
93,248
114,971
118, 713
125,849
121,800
116,964
26.1
28.0
27.5
26.5
26.1
25.8
25.0
24.9
370,126
48,407
43,963
52,737
55, 749
57,702
57,481
54, 087
12.2
13.7
13.0
12.2
12.2
11.8
11.8
11.5
3,026,147
354, 578
338,697
433,337
455, 790
487, 435
487,041
469, 269
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
1945
January-July
January
_
February
_
March
April
May
_
June.
July
-
Table 1 0 — S A V I N G S — S a l e s of war bonds 1
Table 1 1 . — F H A — H o m e mortgages insured
[ T h o u s a n d s of dollars]
[ P r e m i u m p a y i n g ; t h o u s a n d s of dollars]
Period
Series E
Series G
Series F
Redemptions
Total
1944
. . $12,379,891
$772,767
July
August
September
October
November
December.
1945
January
February
MarchApril
May
June
Julv
1,686, 509
499,357
590,827
598,570
806, 817
1, 855,300
101,082
17,807
15, 953
13,653
42,680
124,669
337,459
85, 272
85,286
82,871
173, 858
405,880
2,125,050
602, 436
692,066
695,094
1,023,355
2,385,849
220,145
272,125
277,445
394, 846
376,053
358, 572
803,819
653,222
712,133
684,424
1,194,712
1,467,673
1, 031, 778
42,034
30,695
26,487
23,112
62,940
178,003
47, 409
228,327
164,073
160,456
130,100
282, 437
532, 379
215,288
1,074,180
847,990
889,076
837,636
1,540,089
2,178,055
1, 294, 475
333,443
317,083
437,892
381,168
404,209
382, 536
406, 103
_
i U . S. T r e a s u r y W a r Savings Staff.
t h e U . S. T r e e s u r y .
$2,891,427 $16,044,085
Title VI
(603)
New
$3,263,168
A c t u a l deposits m a d e to t h e credit of
Total
insured
a t end of
period
Title II
Period
Existing
1944: J u l y
August
September
October.-.
November.
December.
1945: J a n u a r y . . .
February..
March
April
May.
June
July
67
27
37
63
80
374
347
$18,322
20,256
19,967
21, 941
21,646
18, 269
$42,322
48,166
42,592
43,354
38,053
36, 573
19,006
14,085
16,480
14,813
22,272
18,841
18, 207
38,640
31,417
29,886
26,885
23,707
20, 413
19, 056
l
$5, 713,449
5, 781, 961
5,844, 599
5,909,934
5,969,687
6, 024, 560
6,082, 273
6,127, 802
6,174,205
6, 215,966
6,262,025
6, 301, 653
6, 339, 263
1
Figures represent gross i n s u r a n c e w r i t t e n d u r i n g t h e period a n d do not t a k e
a c c o u n t of principal r e p a y m e n t s on p r e v i o u s l y ' i n s u r e d loans.
Table 12.—FHL B A N K S — L e n d i n g operations and principal assets and liabilities
[ T h o u s a n d s of dollars]
L e n d i n g operations,
J u l y 1945
C a p i t a l a n d principal liabilities,
J u l y 31, 1945
P r i n c i p a l assets, J u l y 31, 1945
T o t a l assets
| J u l y 31,19451
Federal H o m e L o a n B a n k
Advances
Boston
New York
Pittsburgh
Winston-Salem
C incinnati
Indianapolis
Chicago
Des Moines
Little Rock
Topeka
Portland
Los Angeles
J u l y 1945 (combined total)
Advances
Repayments outstanding
$241
777
534
1,385
1,255
550
1,049
161
520
47
170
755
$324
1,027
1,737
1,449
1,895
1,176
2,595
1, 741
673
365
382
4,137
$9,492
6,585
9,900
11,205
11, 204
7,484
24,656
8,274
4,199
3,185
2,155
23,269
Cash i
Government)
securities
Capital 2
$450
4,702
2,188
365
3,465
1,992
1,506
260
993
1,047
732
805
$11,034
26, 997
10, 872
7,135
26, 202
15, 541
7,827
9,483
8,116
8,220
9,857
13,652
$20,184
28,172
17,167
18, 370
28, 430
15,214
23,933
13, 760
12, 627
10, 902
8,721
16, 859
Debentures
Member
deposits
$0
0
4,000
0
2,500
4,000
5,000
3,500
500
1,000
1,000
10, 500
10,323
1,902
421
10, 212
5,958
5,185
834
255
625
1,075
5,956
$21, 081
38, 507
23, 079
18, 794
41,181
25,186
34,128
18,100
13, 384
12, 529
12, 799
37, 833
7,444
17, 501
121,608
18, 505
154, 936
214, 339
32,000
43, 642
296, 601
J u n e 1945
86, 734
5,992
131,666
24, 887
159, 763
213, 415
50,000
45, 328
317, 335
J u l y 1944
28, 481
126, 055
204, 019
58, 000
18, 948
282,080
1
I n c l u d e s i n t e r b a n k deposits.
September 1945
136,118
2
C a p i t a l stock, s u r p l u s , a n d u n d i v i d e d profits.
369
Table 13—INSURED A S S O C I A T I O N S —
Progress of institutions insured by the FSLIC x
[Dollar amounts are shown in thousands]
Operations
Number of
associations
Period a n d class
of association
ALL
Total
assets
New
mortgage
loans
New
private
investments
Private
repurchases
Repurchase
ratio
INSURED
1944: J u l v
August
September
October
November
December
2,463
2,461
2,460
2,462
2,462
2,466
$4, 619, 867
4, 667,060
4, 713, 815
4, 774,160
4, 867, 068
5,012, 662
1945: J a n u a r y
February
March... _
April
May
June . . .
..
July
2,466
2,463
2,465
2,469
2, 469
2,471
2,473
5,035, 626
5, 076, 554
5,136, 903
5,204,641
5, 292,169
5, 549, 563
5, 594, 461
76, 215
79,479
110,287
113,296
121,808
126, 824
121, 572
1944: J u l y
August .
September . . . .
October .
November .
December
1,466
1,465
1,464
1,465
1,464
1, 464
2, 907, 974
2, 934, 647
2, 961,860
3, 000, 365
3,059, 556
3,168, 731
1945: J a n u a r y
February
March
April
May
June . .
July
1,464
1,464
1,465
1,465
1,466
1,465
1,467
1944: J u l y
August
September..^ _
October. .
November. _
December
1945: J a n u a r y
February
March
April..
May
June . .
July
.
$93, 305 $155, 218 $120, 349
64, 619
104, 008 126, 641
56,102
101, 658 122, 016
54,719
100, 642 129,938
52, 378
88, 227 115, 008
45, 985
83.408
142,291
77.5
51.0
46.0
42 1
45. 5
32.3
195, 077
125, 769
138, 709
133, 651
130,182
163,156
196, 944
123, 943
63, 089
71,488
65, 701
62,980
56, 279
144, 932
63.5
50.2
51 5
49 2
48 4
34 5
73 6
57,164
64,400
63, 489
61, 965
54, 978
51, 586
101, 500
82,105
79,126
85, 297
75,372
93, 400
79,735
40,825
35, 570
33, 746
32, 665
26,049
78 6
49 7
45.0
39 6
43.3
27.9
3,178,132
3, 200, 324
3, 237, 942
3, 280, 506
3, 337, 648
3, 528.027
3, 552,154
46,439
49, 900
69, 430
71, 375
75, 607
79, 603
76, 355
129, 640
82, 862
91, 627
88, 356
85, 977
106, 770
129,958
84, 624
41, 374
46, 574
41, 856
40,063
33, 601
100, 301
65.3
49.9
50 8
47 4
46 6
31 5
77.2
997
996
996
997
998
1,002
1,711,893
1, 732, 413
1, 752, 015
1, 773, 795
1, 807, 512
1,843,931
36.141
39, 608
38,169
38, 677
33, 249
31, 822
53,
44,
42,
44,
39,
48,
718
536
890
641
636
891
40,
23,
20,
20,
19,
19,
1,002
999
1,000
1,004
1,003
1,006
1,006
1, 857, 494
1,876,230
1, 898, 961
1, 924, 135
1, 954, 521
2, 021, 536
2, 042, 307
29, 776
29, 579
40, 857
41,921
46, 201
47, 221
45, 217
65,
42,
47,
45,
44,
56,
66,
437
907
082
295
205
386
986
39,319
21,715
24, 914
23, 845
22, 917 •
22, 678
44, 631
FEDERAL
_
STATE
1
...
.
_
614
794
532
973
713
936
75 6
53.4
47.9
47 0
49.7
40.8
60.1
50.6
52.9
52 6
51.8
40.2
66. 6
Balance sheet items, formerly shown each month, now appear only in the
February, May, August and November issues of the REVIEW.
Tables 1 4 and 15—now appear quarterly in the
February, May, August and November issues of the
REVIEW.
Amendment to Rules and Regulations
of FS and L System
(Continued from p. 359)
are repayable in accordance with paragraph (a) of Section 14 of Charter
K, except that the period of amortization shall not exceed 15 years,
(ii) In an amount' not exceeding 6624% of the value of improved real
estate used primarily for residential purposes, when such loans are repayable in accordance with paragraph (a) of Section 14 of Charter K,
except that the period of amortization shall not exceed 15 years,
(iii) In an amount not exceeding 60% of the value of improved real
estate used primarily for residential purposes, when such loans are re- .
payable in accordance with paragraph (b) of Section 14 of Charter K, except that the maturity period shall not exceed 2 years.
(iv) In an amount not exceeding 75% of the value of residential prop-
370
erty for more than four families, but for not more than six families, when
such loans are repayable in accordance with paragraph (a) of Section 14 of
Charter K.
(v) In an amount not exceeding 60% of the value of home or combination
home and business property, when such loans are repayable in accordance with paragraph (b) of Section 14 of Charter K, except that the
maturity period shall not exceed 3 years.
This action, being of an emergency character,
was adopted by the Federal Home Loan Bank Administration on August 30 and became effective iipon
filing with the Federal Register August 31, 1945.
The Road Back
(Continued from p. 343)
Savings and Loan Associations
The savings and loan industry has entered the
reconversion period in the strongest position it has
enjoyed in its entire history. Not only do its resources (less pledged shares) now approximate the
pre-depression peak, but an unprecedented proportion are in liquid form, enabling these institutions
to play a major role in financing, on a sound basis,
the postwar revival of new home construction.
Already they have accounted for the overwhelming
bulk of the $26,738,000 of home loans to veterans,
guaranteed under the Servicemen's Readjustment
Act, and the volume of this activity is expected to
show a marked rise.
While the return to peace brings with it a resumption of home building in large volume and the consequent opening of opportunities for lending to
finance the construction of new homes, the coming
years are expected to be a period of vigorous competition for which savings and loan associations are well
equipped—competition in lending as well as competition in the attraction' and retention of savings.
Throughout the war years the industry has closely
reexammed home financing methods and is prepared
to offer prospective borrowers a variety of plans
designed to suit the circumstances of the individual
and assure him the ultimate protection.
The strengthening of the ^industry's reserve position which has occurred since Pearl Harbor, in spite
of the large expansion of liquid assets and the consequent decline in the rate of earnings, has made savings and loan associations increasingly attractive
as savings institutions. However, broadening investment opportunities in all lines of civilian production will increase competition among the various
types of savings institutions in the years ahead,
making it particularly important for savings and
loan management to keep its public fully cognizant
of its plans for systematic thrift.
Federal Home Loan Bank Review
Table 1 7 . - G O V E R N M E N T
Table 1 6 . — H O L C — M o r t g a g e loans outstanding and properties on hand
[Dollar a m o u n t s are shown in t h o u s a n d s ]
D u e on
original
loans
Period
D u e on
property
sold
$1, 718,155
1940: J u l y . . . !
[Dollar a m o u n t s are s h o w n in thousands]
Properties owned
H o m e O w n e r s ' Loan
Corporation
Treasury
T y p e of operation
Book value N u m b e r i
$284, 524
$382, 395
60, 470
1941: J u l y .
1, 502, 710
351,868
298,165
43, 933
1942: J u l y
1,293, 416
363, 578
250,126
34, 672
1943: J u l y
1,059,151
359,394
179,103
23, 728
1944: J u l y
August
September
October
November
December
828,977
810,320
792,620
774,179
757, 028
741, 656
370,059
366,561
362,874
358,541
354,117
349, 707
28,771
23,318
19,009
15,641
12, 660
10,701
* 4, 235
3,478
2,863
2,362
1,941
1,659
1945: J a n u a r y . __ _._.,.
February.:
March
__
April
May
June..
Julv
724, 306
709, 620
693,190
678,134
662, 020
647, 024
632, 598
344,311
339, 642
334, 092
328,846
323, 046
317,592
312, 329
9,157
8,278
7,342
6,439
5,194
4,144
3,522
1,446
1, 337
1,207
1,071
881
710
613
1
r
SHARES—In-
vestments in member associations1
I n c l u d e s re-acquisitions of properties p r e v i o u s l y sold.
Revised.
October 1935—June 1945:
Applications:
Number
A mount
Investments:
Number
_
Amount
Repurchases
Net outstanding investments
Federals
State
members
1,862
$50,401
4,710
$213,701
995
$66,495
5,705
$280,196
1,831
$49, 300
$46, 645
$2, 655
4,243
$178,416
$158,320
$20, 096
738
$45,441
$39,305
$6,136
4,981
$223, 857
$197,625
$26, 232
Second q u a r t e r 1945:
Applications:
Number
Amount
Investments:
Number
Amount
Repurchases
Total
0
0
0
0
0
0
$74
0
0
$74
1
Refers to n u m b e r of separate i n v e s t m e n t s , not t o n u m b e r of associations in
w h i c h i n v e s t m e n t s are m a d e .
2
I n v e s t m e n t s in Federals b y t h e T r e a s u r y wTere m a d e b e t w e e n D e c e m b e r 1933
a n d N o v e m b e r 1935.
Table 18.—FHLBS—Membership in the Federal Home Loan Bank System
[Dollar a m o u n t s are s h o w n in t h o u s a n d s ]
1945
Assets
No.
Savings and loan associations. _.
March
June
T y p e of i n s t i t u t i o n
_
Federal
Insured s t a t e . . .
Uninsured state. _
M u t u a l savings b a n k s
. . . . .
...
Assets
No.
NO.
1944
1943
June
June
Assets
Assets
No.
3,696
$7, 969,978
3,696
$7,392, 554
3,714
$6, 840, 241
3,774
$6,045,016
3,656
7, 013, 906
3,657
6,541,038
3,671
5,962, 319
3,729
5, 249,414
1,465
1,002
1,189
3, 528, 027
2,015,142
1,470, 737
1,465
996
1,196
3, 237,942
1,892,876
1,410,220
1,465
992
1,214
2, 881, 276
1,696,352
1,384,691
1,468
956
1,305
2, 426, 079
1,449,255
1,374,080
25
566,553
24
510, 230
22
463,580
22
428, 566
15
389,519
15
341,286
21
414,342
23
367,036
Table 19.—FHA—Insured home mortgages (Titles II and V I ) held, by class of institution
[ T h o u s a n d s of dollars]
C u m u l a t i v e t h r o u g h end of m o n t h
Total
Commercial
banks
M u t u a l savings b a n k s
Savings a n d
loan associations
1941: J u n e
December
$2, 754, 725
3,115,616
$1,300,734
1,447,101
$174, 706
205, 748
$237, 056
255, 296
1942: J u n e
December
3,551,421
3, 795, 519
1,614,392
1,694,963
242, 619
263,825
277, 704
288, 611
1943: J u n e .._..
December
4,153,657
4, 308, 362
1,819,942
1, 894, 913
301,058
328, 041
1944: J u n e
December-
4,514,290
4, 555, 672
1,929,054
1,919,999
371, 071
392, 643
1,982,879
Insurance
companies
Federal
agencies 2
Others 3
$220, 400
233, 628
$153,760
182, 226)
966, 441
1,095,270
245, 206
251,871
205, 059
200, 973
319,147
345,938
1,231,638
1,374,570
259, 495
116,330
222, 377
248, 570
371,947
379, 482
1,465,561
1,495,245
133, 042
134,551
243,615
233,752
407,994
$668, 069
791,617
99,362
1
Original face a m o u n t of mortgages held; does not include t e r m i n a t e d mortgages a n d cases in transit to or being a u d i t e d at the Federal Housing A d m i n i s t r a t i o n .
'• T h e R F C Mortgage C o m p a n y , t h e F e d e r a l N a t i o n a l M o r t g a g e Association a n d t h e U n i t e d States H o u s i n g C o r p o r a t i o n .
*' Includes mortgage companies, finance companies, industrial b a n k s , endowed institutions, p r i v a t e a n d state benefit funds, etc.
September
1945
371
*
*
* WORTH REPEATING
SECURITY: " I t has often been said
t h a t t h e absence of war is not peace,
a n d t h a t there can be no real peace
without a measure of economic security. In a democracy, this means an
o p p o r t u n i t y for t h e individual to work
a n d to provide for a family.
Unless
employment a n d production can be
maintained a t a high level in future
years, it will v seem to m a n y people t h a t
we h a v e failed to realize a t home t h e
ideals for which wTe fought t h e w a r . "
M . S . Szymczak, Board of Governors of the Federal Reserve
System, Washington, D. C ,
The Burroughs Clearing House,
August 1945.
AFTER VICTORY: " I n our exuberance
of military victory, let us not be
blinded to t h e fact t h a t we m u s t still
win t h e victory of a p e r m a n e n t and
prosperous peace.
F r o m t o d a y on
the most pressing problem of t h e nation is reconversion—-reconversion of
men, reconversion of machines a n d
factories, reconversion of thinking . . .
I t is t h e job of every American to spur
private initiative throughout t h e count r y a n d to speed up the removal of all
obstacles to quick reconversion."
Eric Johnston, President, Chamber of Commerce of the United
States, Business Action, Aug. 27,
1945.
EFFECTIVE INSTRUMENT: "Fiscal policy is clearly capable of being utilized
as one of t h e effective i n s t r u m e n t s for
t h e promotion of full employment in
t h e post-war period.
Our primary
objective should be to make it possible
for our people to purchase t h e full
a m o u n t of goods a n d services which
our economy is capable of producing.
I do not consider this objective incompatible with t h a t of encouraging the
largest possible volume of p r i v a t e
i n v e s t m e n t in industry. On t h e cont r a r y , I believe t h a t t h e two objectives
go together and t h a t neither can be
achieved without t h e other.
Consumer d e m a n d is the motivating force
of private industry and lays t h e basis
for profitable private i n v e s t m e n t . "
Summary Report of the Secretary of the Treasury, 1945,
Washington, D. C.
LONG-TERM ASSETS: " T h e p r i v a t e
housing industry n o t only was kept
alive during this war—in contrast to
the l a s t — b u t it has been in a position
to build over a million war housing
372
units, representing the bulk of t h e
permanent war housing construction.
Channeled into the areas where a
continuing market appeared likely,
these units should prove to be a longt e r m asset in the postwar housing
supply. Furthermore, in handling its
difficult wartime construction assignment, the private housing industry has
broadened its experience with potential mass housing m a r k e t s and with
rental housing, has developed new
construction methods for larger-scale
operations, and has m a d e its first
substantial venture into t h e field of
Negro housing."
Statement by John B. Bland ford, Jr., Administrator, National Housing Agency, August 1945.
COORDINATED RESEARCH: "If
we
are to have progressively higher standa r d s in community housing a n d development, we must carry out a coordin a t e d program of research in design,
planning, construction, land uses, financing, marketing, m a n a g e m e n t a n d
community services.
"If t h e government is to provide
useful technical services to local communities and t h e building industry,
its agency should be empowered to
initiate and carry out a comprehensive
program of research. T h e aim of such
research should always be to get b e t t e r
housing a t less cost."
R . J . Thomas, President, International Union, UAW-CIO,
Problems and Answers.
OBJECTIVES: " T h e
objectives
of
a
sound program should be to house all
Americans at fair prices a n d decently,
b u t not necessarily all of t h e m in new
houses. It should have the secondary
purpose of providing employment
through the construction industry's
normal activities." .
Lawrence E. Mawn, American
Institute of Architects, Architect
and Engineer, June 1945.
MARKET INFORMATION: "If all of
the diverse elements which make up t h e
construction industry are to plan
wisely and aggressively to absorb their
share of the manpower a n d other resources as fast as these resources are
released from war production, they
m u s t have an a d e q u a t e knowledge of
t h e m a r k e t s for such construction.
This m a r k e t information m u s t be sufficiently detailed a n d sufficiently con-
*
*
*
crete so t h a t the average businessman
can visualize t h e potentialities of his
c o m m u n i t y a n d m a k e his p l a n s
accordingly.
"If t h e industry is to prepare, with
confidence, for p r o m p t resumption of
non-war activity it m u s t have access
to a careful and continuing appraisal
of the possible bottlenecks limiting
such expansion."
Amos E. Taylor, Director, Bureau of Foreign and Domestic
Commerce, The Constructor,
July 1945.
FUTURE ACTIVITY: " N o m a t t e r whose
figures you accept on post-war housingneed a n d demand, t h e m a r k e t still
looms large. B u t the largest section
of it is still t h a t great middle class,
above the lowest income, a n d below the
top strata.
"Finding the ways to provide a welllocated, well-designed, well-built, wellfinanced a n d serviced house for t h a t
segment of the m a r k e t is the answer
to the questions as to how big, how
sound, and how long-lasting will the
post-war housing activity be for private building enterprise."
Raymond Foley, Commissioner,
Federal Housing Administration, The Bildor, August 1945.
THE BOOKSHELF
Although inclusion of title does not
necessarily mean recommendation by the
REVIEW, the following recent publications
will be of interest.
NATIONAL
BUDGETS
FOR FULL
EMPLOYMENT:
1945.
96 pp.
Available a t 50^ from National Planning Association, 800 21st St., N . W.,
Washington, D . C.
AMERICAN
PLANNING
AND
CIVIC
ANNUAL:
Harlean James,
Editor. 1944. 178 p p . Available a t
$3 from American Planning and Civic
Association, 901 Union Trust Bldg.,
Washington, D . C.
RESEARCH
AND
POST-WAR
PLANNING:
BIBLIOGRAPHY,
PART
XVII:
80 p p . Available at
$1 from United N a t i o n s Information
Office, 610 Fifth Avenue, New York
21, N . Y.
IS NOW THE TIME
TO BUY OR
SELL?
By Walter Adams.
In
August 1945 issue of Better Homes and
Gardens.
Single copy, 15^.
Federal Home Loan Bank Review
INDEX OF VOLUME II
FEDERAL HOME LOAN BANK REVIEW
H
FOR the convenience of readers in finding references, the pagination of each issue of Volume 11
is listed below. Unless otherwise indicated, the
period covered in survey articles is 1944. The
titles of all articles appear in italics.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
Volume 11
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 - 32
33-64
6 5 - 96
97-128
129-164
165-188
189-216
217-248
249-276
277-308
309-340
341-376
A
Page
Advisory Council, Federal Savings and Loan, membership—1945-1946. _ 23, 301, 322
After the War, What Will We Need in Housing?
41
Allotments (Army), regulations affecting savings and loan associations.._
43
Analysis of Savings and Loan Trends in the New York District, by Robert
G. Clarkson
279
A nesting Real Estate Inflation
191
Asset accounts (see balance sheets)
B
Balance sheets:
all operating savings and loan associations (1943 and 1944)
67, 283
F H L Banks (1944 and 1945)
152,328
FSLTC
155
member associations
283
member associations in New York District
279
Bonesteel, Verne C , Supervisory Examination—Its Purposes and Objectives. 344
Bookshelf: reviews
262
Britain:
housing needs in Dominions
30
war savings in
175
British Building Societies Show Active Year
357
Building codes
17,172,295
Building costs (monthly analysis and index table of costs of standard house
in selected cities published in each issue):
analysis of residential, (NHA)
70
effect of World Wars on
3
effect of research on
.... 226
summary of trends
136
Building materials:
after the war
48,343
priorities on
44,45,295
postwar prospects
343
research in
163,226,338
"Building or Buying a House," by B. K. Johnstone and Associates (book
review)
262
Business conditions (analysis of business conditions published in each
issue):
summary of
131
September 194S
C
Canada Looks to Its Housing
77
Carson, Ivan D., Bern Control and Beat Estate Stabilization
311
Clarkson, Robert G., Analysis of Savings and Loan Trends in the New
York District
279
Commercial banks:
mortgage loans made and held by
288
private savings invested in (1941-1943 and 1944)
109, 288
real estate owned by (1943 and 1944)
74,288
trends in mortgage recording by (1939-1944)
99
Condition of Member Associations
283
Construction, estimates of 1945
110, 3'3
Construction (see also residential construction).
Cooperatives in Be construction
(53
D
Directors, FHLB, appointment, designation and election of
114, 203, 241
Directory of member, Federal and insured institutions published in each
issue.
Dividends:
table of, declared by F H L Banks (1944 and 1945)
154, 329
trends in..
143
Dual Fu nctions of Liquidity
1^7
E
Effects of Business and Industrial Location on Besidential Areas
Employment:
construction industry offers postwar,
estimate of post-VE Day
migration and postwar,
small business and,
351
294
276
222
307
F
Federal Housing Administration (table of insurance operations—Titles II
and VI—published each month; Titles II and VI data on holdings by type
of institution published in March and September):
life insurance company activity in, loans
34s
prepayment plans clarified
p;
Title II lending resumed
39
Title VI lending extended
215
warning by, against instalment land buying
44
Federal Home Loan Banks (summary and table of lending and balance
sheet items published in each issue; combined consolidated statements
of condition, dividends declared, interest rates charged, published in
February and August):
trends in, summary (1944 and 1945)
15?, 328
Federal Home Loan Bank System (see also F H L Banks):
condition of member associations
283
operating statements of member associations (1943 and 1944)
6, 319
summary of trends
152, 328
Federal savings and loan associations (analysis and tables of operations and
lending activity of, published in each issue. See also specific subjects.)
Federal Savings and Loan Insurance Corporation (analysis and tables on
progress of insured associations published in each issue):
amendments to Rules and Regulations of (see Insurance of Accounts).
liquidity of associations insured by
223
trends in share capital of associations insured by
199
summary of operations of
155
Federal Savings and Loan System, Rules and Regulations, amendments to:
extension of lending powers of Federals under G. I. Bill
63
loans by Charter K associations under G. I. Bill
63,359
Forecast for 1945:
construction estimates (WPB)
110
summary of prospects in residential construction, home financing and
related
fields
144
Foreclosures (estimated nonfarm real estate foreclosures published in each
issue quarterly from February).
summary of trends
138
Foricard Look
144
373
G
G. I. Bill (see Servicemen's R e a d j u s t m e n t A c t ) .
G. I. Bill of Rights: A Summary
of Regulations
Greene, F r e d T . , What .ire Your Local Housing A>t"/sf__.
Page
35
251
H
Home Building in Transition
318
H o m e F r o n t ( p e r t i n e n t i t e m s of civilian w a r activities p u b l i s h e d in each
issue; indexed b y s u b j e c t ) .
Home mortgage debt, nonfarm trends
138
H o m e O w n e r s ' L o a n C o r p o r a t i o n (tables on operations a n d i n v e s t m e n t s
p u b l i s h e d q u a r t e r l y from M a r c h ) .
real estate o w n e d b y (1943 a n d 1944)
74,138
" H o m e O w n e r s h i p : Is It S o u n d ? " b y J o h n P . D e a n (book review)
262
H o n o r Roll of w a r b o n d sales b y m e m b e r savings a n d loan associations
(published October t h r o u g h A p r i l ) .
Housing and Mortgage Finance
134
How Well Do You Know Your Community?
194
I
I n c o m e p a y m e n t s , s u r v e y of
29
Inflation:
after W o r l d W a r s I a n d I I
3
as related to mortgage lending
•
254
c u r b i n g real estate ( s t a t e m e n t s b y O P A a n d Federal Reserve heads)-...
191
relation of, to savings a n d loan associations
37,167, 229
relation of m o r t g a g e lending to
291
relation of w a r t i m e savings to
107
rent control in relation to
.
315
I n s t a l m e n t credit—Regulation W a m e n d e d
294
I n s u r a n c e of Accounts, Rules a n d Regulations, a m e n d m e n t s t o :
employees' fidelity b o n d s
268
p a y m e n t of d i v i d e n d s
359
real estate loans u n d e r G . I . Bill
. _ 156
Interest rates: tables of F H L B , on a d v a n c e s a n d deposits
154,329
L
Land Use: Foundation of Urban Planning
Let's Get More for Our Housing Dollar
Life insurance companies:
m o r t g a g e holdings of a n d i n v e s t m e n t s b y ,
p r i v a t e savings invested in (1941-1943, a n d 1944)
real estate o w n e d b y (1943 a n d 1944)
t r e n d s in mortgage recordings of (1939-1944)
L i q u i d i t y , dual functions of
Liquidity Pattern Last Year
Look to Our Future
Lumber:
inventories
controls a m e n d e d
supplies for use a b r o a d
102
70
.
348
108,142
74,348
99
167
223
37
48, 276,343
163, 338,343
215
M
' ' M i l l i o n H o m e s a Y e a r , " b y D o r o t h y R o s e n m a n (book review) _.
262
M o r t g a g e insurance (see F H A ) .
Mortgage Investments of Li)e Insurance Companies
348
M o r t g a g e lending (analysis a n d tables of lending activity p u b l i s h e d in each
issue):
" p a c k a g e d " loans
234
p u b l i c preferences regarding
358
risk in c u r r e n t , policies
254
t r e n d s in average loan sizes (1939-1944)
291
t r e n d s in, b y i n s u r e d commercial a n d m u t u a l savings b a n k s
288
t r e n d s in, b y life insurance companies
348
t r e n d s in, b y savings a n d loan associations
139
t r e n d s in, b y savings a n d loan associations (1922-1944)
229
t r e n d s in,-of selected states (1939-1944)
169
u n d e r G. I . Bill of R i g h t s
35.295
Mortgage Recording Trends in Perspective
99
Mortgage recordings (analysis a n d tables of e s t i m a t e d v o l u m e p u b l i s h e d in
each issue):
t r e n d s in
137
t r e n d s in average size of, (1939-1944)
291
t r e n d s in, b y selected i n s t i t u t i o n s , (1939L1944)
99
t r e n d s in, b y life insurance companies
348
374
A l u t u a l savings b a n k s :
Page
mortgage holdings of
...
. _ __ 74,288
real estate owned b y (1943 and 1944)
74, 288
t r e n d s in asset d i s t r i b u t i o n
..
288
t r e n d s in mortgage recordings (1939-1944)
...
99
t r e n d s of p r i v a t e savings invested in (1941-1943; 1943 a n d 1944)
._ 107, 288
N
National Economy in the Third War Year.
N a t i o n a l H o u s i n g Agency:
building m a t e r i a l s u r v e y (postwar)
construction m a r k e t (postwar)
H - l , H-2, a n d H - 3 programs
housing costs analyzed
housing priorities
surplus housing regulations
N e w s Notes (formerly H o m e F r o n t )
.......
131
48
41
39,134,228,318,343
._ _ . .
70
44,295,318
173
358
O
Operating Ratios of Member Savings and Loan Associations
Operating s t a t e m e n t s :
m e m b e r associations (1943 a n d 1944)
m e m b e r associations in N e w Y o r k D i s t r i c t (1939-1944)
Path We Have Traveled
Personnel a d m i n i s t r a t i o n
Population:
migration and postwar employment
sample census of, b y Census B u r e a u
P o s t w a r Bookshelf (published each m o n t h ) .
P o s t w a r housing:
effect of cost on v o l u m e of
in British D o m i n i o n s
p l a n n i n g a n d m a r k e t s for
prospects
research on i m p r o v e m e n t s for
P o s t w a r planning, b y cities
Postwar Planning Directory ( T w e n t i e t h C e n t u r y F u n d )
Post World War I—A Straw in the Wind?.
Prefabrication s t a n d a r d s a d o p t e d
Priorities:
construction and housing, eased
housing, for veterans
319
6,319
279
229
354
2o:
?»
70
30
40,41, 79, 251, 295, 358
343
17,215,226, 234
95,295,339
87
._'_.
3
338
44,295,318,343
44
R
Real estate:
arresting inflation in
191
effects of W o r l d W a r s on residential
3
Real Estate Overhang Continues Its Downward Course
74
Real estate o w n e d :
d i s t r i b u t i o n of, held b y selected financial i n s t i t u t i o n s
74
t r e n d s in, b y life insurance c o m p a n i e s
348
t r e n d s in, b y m e m b e r associations
283
t r e n d s in, b y m u t u a l savings a n d insured commercial b a n k s (1943 a n d
1944)
74,288
t r e n d s in, b y savings a n d loan associations (1922-1944)
228
s u m m a r y of t r e n d s in
_ _ _
..
138
Recent Lending Pattern in Selected States
169
R e n t control
.
3,17,98,163,172,311
Rent Control and Real Estate Stabilization, by I v a n D . Carson
_.
311
R e p u r c h a s e ratios (data for all savings a n d loan associations p u b l i s h e d
each m o n t h ) :
s u m m a r y of, b y t y p e of association
..
141
t r e n d s of, in insured associations
191
Residential construction:
analysis of costs of ( N H A )
70
determining local need a n d cost of
,
251
effect of traffic on
258
effects of W o r l d W a r s on
3
forecast for 1945
144
in British Dominions..
.
30
new m e t h o d s a n d materials for
17,98,163.215.226,234
N H A e s t i m a t e of p o s t w a r need for
41
prefabrication s t a n d a r d s a d o p t e d
338
restrictions eased on
39,228,257,318,343
t r e n d s in
134
W P B s u r v e y of potential p o s t w a r d e m a n d for
40
Federal Home Loan Bank Review
Review of 1944:
trends in regional and national vital statistics of the savings a n d loan
i n d u s t r y , a n d general business conditions. ( E n t i r e F e b r u a r y issue
is a year-end s u r v e y n u m b e r )
R i c h a r d s , R a l p h H . , Should Commissions be Paid to Secure Savings Accounts?
Road Back
Road to Afore and Better Housing
. -:
Pa e
^
131
315
343
39
T
Taxes, Federal
Thrift and Real Estate Operations of Banks During the Past Year
Traffic and Residential Real Estate
T w o h y , J a m e s ; outlook of savings and loan associations
358
288
258
37
U
S
Savings (table of sales of U. S. WTar B o n d s published in each issue; selected
p r i v a t e long-term savings published q u a r t e r l y from F e b r u a r y ) :
British war
175
p a t t e r n s during 1944
142
payroll savings
358
p a y m e n t of commissions for, b y savings a n d loan associations
315
private, in m e m b e r associations
283
trends in p r i v a t e , b y selected types (1941-1944)
107
t r e n d s in, insured commercial a n d m u t u a l savings b a n k s (1941-1943,
a n d 1944)
107,288
t r e n d s in, invested in savings a n d loan associations (1922-1944)
229
Savings a n d loan associations (see specific subjects).
Savings and Loan Industry in the Second War Year
67
Savings and Loans Show Further Growth
139
Savings Patterns During 1944
142
Securities for the Bond Portfolio, b y E v e r e t t S m i t h
219
Servicemen's R e a d j u s t m e n t Act of 1944:
lending u n d e r
35, .81,172,295
s u m m a r y of h o m e loan regulations
35
Share capital, private (table showing t r e n d s in, a n d repurchases b y class
of association published in each issue) :
t r e n d s in all operating associations
141
trends in insured associations
199
Shoidd Commissions Be Paid to Secure Savings Accounts? b y R a l p h H .
Richards
315
S m i t h , E v e r e t t , Securities for the Bond Portfolio
219
Sound Salary Administration—A
Paying Proposition
354
Stability Characterizes Share Capital Trends in Insured Associations
199
S t a t e m e n t of condition (see balance sheets).
Statistical Supplement
(published w i t h M a r c h issue).
Supervisory
Examination—Its
Purposes
and Objectives, b y Verne C .
Bonesteel
344
Surplus Housing Regulations
173
Survey of Postwar Demand for Homes
40
September
1945
Upward Trend in Loan Amounts
Urban Planning: A Key to Postw ar Problems
Urban redevelopment
291
10
10,102, 194,258,351
V
Veterans:
G. I. Bill in action
housing for, in British Dominions
housing priorities for
h o m e loan regulations u n d e r G. I. Bill of R i g h t s
Victory L o a n
81
30
44
35
35(5
W
W a r b o n d s : (honor roll for sales p u b l i s h e d m o n t h l y October 1944 t h r o u g h
April 1945.)
F H L B a n k S y s t e m a c t i v i t y in S e v e n t h W a r L o a n
356
p r i v a t e savings invested in
142
savings a n d loan associations as r e d e m p t i o n agents
9, 331
W a r housing:
in British D o m i n i o n s
30
N H A - W P B program ( H - l - 2 - 3 )
39,134,228,318
occupancy restrictions u p h e l d
276
restrictions eased on construction
39,228,257, 318,343
review of (1940-1944)
134
s u r p l u s housing regulations
173
transfer of
16, 45
Wartime Trends Reflected in Operating Statements of Member Associations _ _
6
What Are Your Local Housing Needs? b y F r e d T . Greene
251
What Has War Done to Savings?
107
What Is the Risk in Current Lending?
254
What's New in Housing Research?
226
THEY FINISHED THEIR JOB-
LET'S F'N:C: : O U R S i
U. S. G O V E R N M E N T P R I N T I N G O F F I C E : 1 9 4 5
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