New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1852-03-03

ments Of Building Associations daily oc-
cupy in our columns. The number of these
Associations established, or in process of
organization in this City, we understand to
be about forty ; and the number of members
attached to each will not vary much from
500, making in all some 10000 persons,
mostly working men, and heads of families,
combined, or to be combined in these organi-
cations. And when We consider that 1T is
hardly more than four years since the first one
was formed in this country, and that most
of those now in existence were commenced
within few months, it is evident that there
must be something in them which promises
remarkable benefits, to render their progress
so extensive and rapid.
The object of these Associations is by
the combination and accumulation Of small
capitals, saved by economy from the cara
iDgs of their members, to enable the latter
by the monthly payment Of sums not much
exceeding their ordinary house-rent, to be-
come the owners of their own houses, and
to live free Of the eXactOns OF landlords.
They are organized under an act of the Le-
gislature specially framed for the purpose.
Each Association is generally divided into
one thousand shares, and a sum, say $500 or
$500, is fixed as the full value Of each share.
Utmost Associations we believe there is no
Limitation to the number Of shares which an
individual may take. On each share he
pays an entrance fee of one or two dollars
and monthly installment of 50 so or SO.
A time is fixed, varying in the prospec-
fuses of the Associations in this City from
six to eight years, when by means of these
monthly installmeDts, with compound interest
and premiums on loans, the shares will have
reached their full value that is to say,
when the Association will have in its hands
sum sufficient to pay upon each share re-
naming unredeemed, the 5000 or $500, pro-
posed at the outset. Then the object Of
the Association will be gained and it will
be dissolved.
The redemption of shares is another term
for loans made to members who wish to
borrow The Association holds monthly
meeting, when the funds in the treasury
are offered to be loaned to the highest bid
ders. The question is asked, Who will give
the highest premium for the money upon
his share now, instead of waiting till the
end of the concern? He who bids the most
share, or shares, minus the premium at
which it was struck off to him. Thus, for
a share which will be worth $500 at the
dissolution of the Society, he may now re-
ceive 5000, $500 or $500, according to his
bid, in ready cash. This is, however, paid
over to him exclusively for the purpose of
buying lot, or house and lot, or of build
ing house on lot previously leased or
purchased. This property he mortgages to
the Association to secure the payment Of
his monthly dues, together with the interest
upon the share or shares which he has thus
redeemed. The interest, reckoned at
six per cent. upon the full value of the
share, not upon the sum which he has
received for it, is also paid monthly at the
same time with the dues. Thus, as it is
Immediately loaned out again, it is COM
pounded every month, which increases the
rapidity Of the accumulation. When bor-
ROVER fails to pay, the Association takes
possession of the property and rents it if
possible, devoting the rent to the payment
of the defaulter's dues and interest, in
which case it is finally his, just as if he had
himself paid regularly. Provision is also
made for cases of death or wish to with
draw, in manner to guard the interests of
the Association without infringing on the
rights or property of the individual mem.
bers.
Such are the general features of the
Building Associations in this city. They
differ In many important respects from those
in England and Scotland, in which latter
country the plan originated, and in both of
which they have been tried with various
success for about fifteen years their pres
ent number in those countries is about two
thousand We do not here propose to dis
cuss the differences between the plan now
generally used in England and that pursued
In this country, but briefly to call wider
attention to the great benefits which per-
sons of small means may derive from this
species Of Association.
The first of these is the habit of econo.
my. The working man who invests six or
twelve shillings from his weekly earnings