The Hillsdale standard. [volume] (Hillsdale, Mich.) 1851-1909, 1852-04-06
From the New York Tribune.
Building Associations.

Building Associations.
Most Of our readers have 90 do ubt remark ed
the large space which the advertisements Of
Building Associations occupy daily in our col!
umns. The number Of these Associations es-
tablished, or 10 process OF org snizat'on n this
City. we understand TO bo about forty; and the
uumber Of members attached 10 each will not
vary much from 500, making in all some 20,-
600 persons. mostly working men. and heads
| Of families, combined, or TO be combined In
Ibsssei tonygsnaiizaicnss y s And W en- we consider
| first one was formed 10 this country, and that
most Of those now in existence were commence
ed within few moh,hs, ii is evident that there
| must be something IN them which promises
remarkable benefits, 10 render their progress so
extensive aud rapid.
| The object of these Associations is by the
combination and accumulation OF sm'll cap
tals, saved by economy from The earnings OF
| their members. TO enable the latter, by the
| monthly payment Of sums not much exceeding
| their ordinary house-renIs, TO become the
| eis Of their owo houses and TO live free OF The
exaclious Of landlords. They are organized
under an act OF the Legislature specially nam
ed for the purpose. Each Association IL gen.
orally divided into one thousand shares, and
sum, say $500 or $500. is fixed as tho fall val
1
believe there is no limitation to the number Of
shares which an individual may take On each
share he paws an entrance fee Of one or two
dollars aud a monthly instsllment OF Se so. or
50. A time is fixed varying in the prospectus
| es Of the Associations in this Ciiy from six TO
| eight years, when by means Of these month ~
| instalments, with compound interest and pre-
miums on loans, the shares will have reached
their full value; that is 10 say. when the Asso-
ciatieu will have io I,s haEds sum sufficient
TO pay upon each share remaining uniedeemed
the 5000. or $500, proposed at the outset.-
| Then the object Of the Association will be
gained and it will be dissolved.
The redemption Of shares is another lei m
| for loans made 10 members who wish 10 borrow. &.
The Association holds monthly meeting,
when the funds in the treasury are offered to be
loaned 10 the highest bidders. The question
is asked, Who will give the highest premium
for the money upon his share now. instead OF
waiting ill the end OF The coicern2 lie who
bids the most gets il, and he receives the cash
for his shares, minus the premium at which u
was siruck off to him. Thus, for the share
which will be worth $500 al the dissolution OF
the society, he may now receive $500, $500 or
S4OO, according to his bid, in ready cash.
This is. however. paid over 10 him exclusively
ioi the purpose OF buying n lot. or house aud
lot, or Of building a house on a lot previously
leased or purchased. This property he mort
cages 10 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 Teckoned at SIX per
cent upon the full value Of the share, not up
on the sum which he has received for u, IS al
so paid monthly at the sime time with the
dues. Thus, as it is Immediately loaned out
! again, II is compounded every month. which
increases The rapidity Of he accumulation
When a borrower fails to pay, The Association
takes possession Of the property, and rents u "
possible, devo,iog the reoi 10 the deianiiers
dues and interest. 10 which case IL Is finally his
! Just as il he had himself paid regularly. Pro-
vision is also made for cases Of death or wish
TO Withdraw, in manner 10 guard the interest
, Of the Association without infringing on the
rights of property of the individual members.
Such are the general features Of the Build
ing Associations 10 this city. They differ in
, many important respects from those 10 Eng.
(; land and Scotland. in which latter country the
g plan originated. and in both Of which they
: have been tried with various success Tor about
e fifteen years; the present number in those
countries is about Two thousand. We do not
D hers propose to discuss the differences between
D the plan now generally used in Eogannd aod
I that pursued 10 this country. but briefly 10 cal
/! a wider attention to the great benefits which
4 persons OF small means NAY uefNe iioW th''
n species OF Association.
n The first Of these is the habit Of economy
2 The working men who invests six or twelve
; shiIIings from his weekly earnings 10 The shares
J. OF a building Association, lays the foundation
r Tor liab, OF foresight. prudence and temper
: snce, which in the long run, is Of groater val
e ue 10 himself aud his family than the worth o
u the share. The next benef, is, that. withou
: adding anything. or with but small addition
j. 10 what he is used to pay for house rent. he Il
q enabled to become the owner Of the tenement
o he inhabits. This can be illustrated in figures
a, aud Tor the purpose we will take the case OF "A
member Of one Of the Building Association
,f in this city Awe will supposedly in Brook
y iyn, in a house whose rent is 5000. hall o
$, which is borne by friend, whose family share
= the house with As This house can be bough
e for $4,000, the seller requiring $500 10 be psi
N down, leaving the rest on bond add morieag
Is for an indefinite term. A has two shares IN I
e Building Association; he goes to the month";
q meeting and redeems them at a premium o
y S400 each. making $500, which he gels for tn
: two. With this be buys the house, the Trus
& tees sf the Association having first sa,isfie
3. themselves that the property isfuIly worth i