The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1852-03-10
LocAL MATTERS.

BUILDING AssocrATloNs.-As one of these or.
ganizatons we understand is about to be put in OPP
GRAFTON in this city, we have thoughtit not inapprc-
pirate to give some facts In regard to their origin
character and success hitherto in other cities. The
nlan originated In Scotland, and these associations
have been tried in that country and England for the
last fifteen years. Their present number in those
countries now is about two thousand fair indica-
ton of their merit. The general features OF the
building associations in this country are different In
many respects from those in the old We will not
here detail the plan used the continent tut give
an outline simply of that in most successful opera
ton in the United States.
Thtir object lie, by the economy OF individual
members, to combine and accumulate small capitals
so as to enable members, by payments monthly OF
amounts about equal to those requisite for house
rent to become house owners, and thus exempt
from the tariff of rents imposed at the discretion OF
landlords. They are organized by acts of the lie.
cislature An Association may be divided into five
hundred or a thousand shares, and the value of
each share fixed say at $500. limit, if thought
necessary can be put to the number of shares each
person may take, and On each he pays an entrance
fee Of one or two dollars and an nstalment of two
or three dollars monthly A time is fixed. say
eight years. when by means of these monthly install
ments, added to compound interest," and premiums
on loans there will be in theexchequer OF the As
ISOLATION sufic lent sum to pay upon each unre-
deemed share the value originally affixed, six hun
dred dollars The object of the Association is then
game and it necessarily dissolves.
Again, loans made from the funds OF the as
sociations to members in order to afford them
means for purchasing lot, or building house on
lot previously leased or purchased. The person
who, instead of wal ing the time necessary, accor-
ding to the rule for receiving the full amount of his
share, may by giving the highest premium on that
share, receive the six hundred dollars in cash,
minus the premium. Thus, if he gives premium
of one hundred dollars, he receives five hundred
dollars in ready cash. The property he purchases
with this money is morteaged to the Association, to
secure the payment of bis monthly dues, and the
interest upon the share or shares redeemed by him.
The six per cent interest upon the full value of the
share is, of course to be paid monthly with the
dues. As this amount may beloaned outimmediate
ly-by the process Of compounding-thea ctumula-
ton is more rapid. Requisite provision Is mado
for the withdrawal or death of any member, 40 as
TO guard the intert SITS alike of those members and
the Association
Among the benefits resulting from this species Of
Association which surely are 70 more obnoxious
than fire, marine, property, life, or the numerous
benevolent associations-which persons of small
means may derive, are the habits of economy, pru-
dence, foresight and temperance engendered, which
are of greater value to a member and family than
the worth of his share. The stimulus in these as
soc;.t;ons RI carry ont their DESIGN ia very
The inherent desire of independence, and to become
proprietor Of homestead, necessarily produces
that economy and punctuality requisite to the sue
cess of the Association. We shall refer to this
subject again.