table, which shows new investments received by insured associations, withdrawals from savings accounts and the ratio of withdrawals to new savings, this increasing turnover of savings is apparent: Reserves.—Title IV of the National Housing Act requires that each insured association accumulate a Federal insurance reserve available for losses in an amount equivalent to 5 percent of its insured accounts and creditor obligations, such goal to be met within 20 years following the date of insurance of the institution. Regulations of the Corporation have interpolated an additional requirement-that a reserve of 21⁄2 percent be accumulated within 13 years following the date of insurance. In addition to Federal insurance reserve accounts, other general reserves and undivided profits are available for losses which might be incurred by associations in their normal operations. Indicative of the ability of insured associations to absorb losses which might arise is the ratio of all general reserves and undivided profits accounts to assets of the institutions. The trend since 1939 is set forth in the following table: Associations. At the end of 1947 there were 2,536 insured associations of which 1,478 were Federally chartered associations and 1,058 were chartered under State law. The number of insured institutions increased by 40 during 1947. Federal associations held assets of $5,459,640,000 while assets of the State-chartered group aggregated $3,087,657,000. The average Federal association, therefore, was $3,694,000 in size and the average State-chartered institution, $2,918,000. [A State break-down of the number of insured associations and their assets at the end of 1947 is compared with the situation on December 31, 1946, in Exhibit 10.] During the past few years the average size of insured associations has been steadily increasing, as has the number of associations in the larger size groups. A summary of the number of insured institutions by size groups is presented in the following table: Frequency Distribution of Insured Associations, by Asset Size Groups-December 31, 1945, 1946, 1947 It is estimated that there are 3,514 uninsured institutions operating in the United States with gross assets of $3,253,000,000. However, it should be noted that, although the average size of these uninsured associations is $925,700, it is estimated that approximately twothirds have assets of less than $500,000 each. Because insurance of savings and loan associations has been established on an optional basis, these uninsured institutions may, if they so desire, apply for insurance of accounts and be accepted into membership, provided that they can qualify under the requirements established by the Congress and the Corporation. Budgetary limitations have prevented the Corporation from developing an adequate field staff which would personally contact uninsured associations with the purpose of interesting them in applying for insurance and of assisting them in qualifying. On December 31, 1947, only two field representatives of the Corporation were stationed in the field for this purpose. Investors.-Investors in insured associations consist for the most part of middle-income savers who are accumulating long-term savings toward a definite goal. However, an increasing proportion of higherincome individuals, as well as civic, religious, fraternal, and similar organizations, are placing funds with insured institutions for investment purposes. Savers and investors in insured associations increased by 555,000 during 1947, numbering 5,415,000 on December 31 of that year. Total private savings rose $987,000,000 during the year to $7,189,047,000 on December 31. The average account was $1,328. The increase during the past few years in the number of savers and in the average account are shown in the following table: Number of Private Savers and Average Savings Account in All Insured Institutions Of the total savings in insured institutions $6,725,651,000 or 94 percent was insured. Approximately 95 percent of the accounts were of less than $5,000 each and therefore were totally insured. Ratios of insured savings to total savings during recent years are shown below: Total and Insured Private Savings in all Insured Institutions |