The southern press., 1851-12-18

suucuVe report was receHliy ialu oeicre the
South Carolina legislature The associations
referred to, are emphatically the poor mans
friend ..H ,.
BUILDING AND LOAN uilding
and loan associations originated in Scotland
about thirty five years since. The first instilu-
ton of the kind was established under the i'm.
mediate auspices of the Earl OF Selkirk, gen.
tleman of large fortune, and Of liberal and en-
lightened views, who is said to have devoted no
little study to the perccting of this truly philan-
i thropic and noble scheme. Since their intro
duction, they have spread very extensively
throughout Great Britain; and number, in that
country alone, two thousand and fifty societies,
with an annual income, OF four millions sterling.
On account of their number the large amount
of active capital they employ, and the very ben.
eficial influence, they exert upon the industrious
and middle classes, they have attracted the at
tention Of the British Parliament, and secured
several special enacments in their favor. Such,
indeed, is the legislative encouragement and
protection afforded them, that all that is now
necessary for the obtain tent of a charter on the
part of u new association is simple application
| to the solicitor OF the Crown. .- ....s
They were introduced into this country about
twelve or thirteen years since, and have operated
I very successfully in most of the Northern cities
In PHILADELPHIA and New York. whole districts
have been built up by their eXclu i've agency ;
in Savannah and Augusta also, they are now in
prosperous operation. Three associations have
been in existence in Charleston for little over
year, and have, in that time, invested upwards of
| eighty thousand dolLarS in real estate. Such
sum expended upon this species Of property.
has of course very favorably affected it-creat-
| ing an increased demand, and thereby enhanc
ing its value II has led, also, to the erection
of IL number of new buildings, and furnished
many persons with houses of their own, by the
accumulation and investment OF little sums that
would otherwise have been disspated and lost
While apart from the benefits conferred npon
individuals and families, the impulse given to
mechanical and other branches of industry, has
been very considerable Nothing is now needed
| to ensure the complete success Of these in. titu
tons, and the entire confidence Of the comnu-
nifty in them, but the sanction and support of a
State charter. Nor can we believe that this will
be withheld, when the principles upon which
they are based, are properly understood. Your
attention is, therefore, respectfully invited to the
following brief exposition Of their objects and
! plan of operation:
The primary object Of these associations is to
enable every man, to become his oDn landlord
to secure howe for his family, by simply pay.
ing for few years but little more than would
otherwise be expended in rett; while, to the
economical and thrifty, they aft ,rd the means of
vcs,ing their sayings to great advantage-to II
much greatr advantage than in any other
known institution. BY thus promoting habits
of economy and Industry, and holding forth to
! individuals the inducement to BECOME owners of
real property-thus Identifying them with the
soil and Institutions of the State, and increasing
the am, unit of its taxable property--lheir ad-
vantage, in both moral and political point If
view, is highly important. AS to their nature
and mode OF operation:
|. They are mutual benefit and stock compa :
nies
2. Each share of stock is one dollar month,
paid in monthly during the terms Of the associl-
tons existence
g. The entire amount paid in each month is
put up at the monthly meeting of the stockhold
ers, and sold to the highest bidder or bidders
among them, at a premium. This premium is
deducted from the gross amount and the nsr.c..
! bidding receives the balance; ana is required to
secure the association for the advance by a
mortgage on real estate, equal in value 10 the net
| amount which he receives.
t. A stakeholder is allowed to bid for $500
on each share be holds; and after he has Dor.
rowed, pays, in addition To his monthly dues for
shares, g per cent per annum, on the amount for
which he bids. This interest Is paid in monthly
18th the shares.
For INSTANCE. Suppose the capital stock OF
an association to b, one thousand shares one
thousand dollars viii then be paid in and sold
out each month. Suppose an individual holding
five shares. bids al a monthly meeting, for the
whole amount AT 30 per cent premium. He r.
crves $500, One net sum at or The premium is
A A 4 L e.,
sddition to his five dollars IT. onthly for shares
per cent. on thousand dollar would
Ue sixty dollars year, or tive'doars month
In other words, he pays five dollars monthly for
his shares, an. the same amount as interest
II while the association lasts.
8. The association winds up when il is able
to divide two hundred dollars 10 each share Of
stock. The stakeholder who has purchased an
adv nee, is debted in his account with the pre-.
MUM he has bid. Thu, If he owq five share =,
and has bid for n thousand dollars at 20 per
cent. (as in the supposedly he receives eight
hundred dollars; which, in the winding up Of the
association is accounted a full settlement-the
premium being the clear profit of the ASSOCIATE n.
In addition TO the profit derived from pre-
miums, the association, by loaning out with iis
other fuCds the amount paid in nonihy for in.
terest, actually compounds interest twelve times
j a year, while its individual stockholders are pay
ing but simple interest. BY this rapid mode Of
multiplying money, these societies are generally
enabled TO wind ur in from five 10 eight years
never exceeding, as far as we have learned
the last named period.
! The advantages afforded TO borrowers by
there associations, are many and obvious. IN
all ordinary loans, an individual borrows from
another party; and in the end pays back more
than he receives-after paying the interest for a
: certain time, he is required TO refund the prin.
Z cipal but a borrower from the association rare
ly returns more than he receives. He borrows
from concern in which he is interested, and de
rves his prop ortona;e profit from the very in.
ierest and premium that he pay. for the loan
( s. great is this difference, that an individual
borrowing from the association even ut 40 per
cent. premium, "a very extreme case,) and pay.
ing an interest besides Of 6 per cent does not
really pay as much as the man who boriows IN
the ordinary way at z per cent. To illustrate
an individual owning five shares. bids for a
"A An A.