Daily American telegraph., 1852-03-23
suiIding Assoctations.

Building Associations.
The objects, uses, and practical operations of
these institutions are exciting lively discussion
in some of our Northern cities. 1t is subject
of much interest here, from the number in sue
cessful operation in our city, and their very nu-
merous membership The New York associations
differ in MANY respects from our own--of which
latter we shall speak, and which, IN our Judg-
ment, have the advantage in the leading features
of their organization.
The object is, the accumulation of fund by
the savings Of the members to enable the stock
holders to build or purchase dwelling houses, or
to make other investments. Every stakeholder
paws in monthly one dollar on each share of stock
held by him, and must continue to do so until
the value of the whole stock shall be sufficient to
divide to each share ($100) the sum of two hun
dred dollars at which time the association shall
determine and close. Each stakeholder is entf-
tied on every share of his stock to purchase an
advance Of stock lin other words, negotiate
loan) Of two hundred dollars from the funds OF
the association, on his paying the premium Of
fered and securing the association by BOND, deed
of trust on real estate and policy Of insurance
thereafter, and in consideration of which, he is |
REQUIRED to pay to the treasurer two dollars per
month on each share on which such advance has
been made This, with suitable regulations, is
the essence of the scheme.
In the first place. it creates fund, by monthly
contributions readily accessible to all the mem
bers, from which loans of money can be obtained
on suitable conditionsnot by favor, but by right;
and these loans are made reimbursable by easy
and regular instalments over q series of years,
not exceeding eight and one-third, and which
may be much shortened by the of the insti-
tuition. Aside from the premium given in the first
instance, the borrower pays nothing more than
simply two dollars per month on each share thus
advanced, so long as the association continues;
nor is he subject to the machinery of endorse
ments renewals, curtailments, and other contin-
gencies of huctuating financial market A man
of slender means can thus secure for himself and
family homestead, or make other substantial
improvement, and with small portion of his
monthly earnings readily and surely divest it of
any incumbrance. He obtains the money, too
at reasonable rate; for on a comparison with q
bank loan for SO long period if one could be
negotiated, computing with it the usual bank in
terest it will be seen that he has the advantage,
even though he pay in the first instance pre-
MUM of thirty or thirty-fye per cent. For in
stance: The holder of ten shares is entitled to an
advance of $4,000. He gives n premium Of
thirty-fye per cent, or 800, and receives the
nett sum Of 81, 30e and by the termination of the
association, not exceeding eight and one-third
years-and should that period be shortened, sof
course the less he will be required to pay-he
will by regular monthly payments have contrib
uted to the mutual fund the sum of $4,000
Another individual obtains a loan from bank Of
ST., 800, at the same time, and for the like period
of eight and one-third years. Let him compute
the usual rate of bank interest, seven per cent,
and add this simple interest for the whole term
to the principal, and it amounts to the sum of
$2,O5s.
In the second place, these organizations pre-
sent inducements for the employment of capital
in safe, remuneratiye, and meritorious way.
With ordinary circumspection the object of the
association will be reached within the time con-
templated, eight and one-third years. when the
value Of the stock will be sufficient to divide to
each share the sum Of two hundred dollars-just
twice the amount paid by those who have not
awaited themselves of the privilege Of taking any
advance. Thisis certainly sufficiently productive
at the same time that the investment aids mate
rally whole classes Of persons who, with no facil
tiles of this kind, would in all probability remain
without the means of improving their condition
The institution is mutually beneficial to all it
members-to both borrowers and lenders. AL
must desire its highest success and its earliest ter
mination, as an abatement Of the monthly contri
button, and for realizing the goal when the valu
of each share shall reach the sum Of two hundred
dollars. When this period shall arrive, its exist
ence must close; the mortgages held must b.
lifted and surrendered, and whatever moneys re.
main must be paid over to the lawful claimants
The common law is abundantly sufficient to en-
force this, should it be necessary; but really the
checks and balances are such that we are unable
to conceive of the probable motive or means 0
interposing any serious obstacle.
The City Councils.
A New MARKET-HoUsE.--The proceedings o
the Councils last evening have not yet reached u
for publication, but we learn that resolution
was adopted-to be submitted to the peopl
- -. =. -