Lewisburg chronicle. [volume] (Lewisburg, Pa.) 1850-1859, 1857-07-03
FOR THE LEwIsBUHa CHRONICLE.
Building Associations. mo. q.

investing the surplus earnings of poor
man. Unlike the capitalist, the man of
small means can not easily obtain COM
pound interest for his money. The meagre
sums he receives as interest, can not often
be profitably invested, except at too great
cost of time. The Building Association
combines these small sums, belonging to
many, and invests the aggregate immedi-
ately. In this way, compound interest at
least can be sccured, even if no gain should
accrue from premiums. But experience
has shown that large premiums will always
be paid, and the profits thus arising are
shared in just proportion by all the men,
bers. Take, for example, the Association
whose plan of operations l gave last week.
Members who have paid in but $l20, re.
ceive from the Association 5000 each, ma.
king the handsome profit of $50 per share,
on an investment Of sl20, for an average
time Of five years. At simple interest, this
is more than thirteen per cent. per annum,
and even at compound interest it is ten
per cent Let every poor man judge for
himself whether the chance Of investing
securely his small savings from month to
month, at this rate of interest, is not of it
selfa great help'towards getting himself a
home.
But very inadequate view of the true
benefits of B. AS would be obtained by re-
garding them merely as convenient means
Of getting good interest on small sums
Of money. To large class, they may be
almost said to give both principal and in
tercst l suppose the majority of men of
small means increase their expenses nearly
in the same proportion in which they sue
ceed in increasing their income. The man
who earns one dollar per day, manages to
support his family; let his wages be raised
to dollar and half day, and he will
do scarcely more. Most men lay up but
little in either case. Suppose, after his
wages are increased to Sl.50, he saves
twenty five cents day, for twenty days
in the month, and subscribes to five shares
Of stock in B. A. To enable him to
keep up his monthly payments, he must
Keep nis UsueI .Aponses "IsnI" 9r.=o ~.
day. This he can do, and if he riN do it,
in ten years he will have one thousand dol
lars in cash. The Association will then
have given him not only four hundred dol
lars interest, but, by furnishing the neces-
sary inducement to save, may almost be
said to have given him the six hundred
dollars principal. In many cases, it has
worked so.
Savings Institutions have done much to
encourage frugality, but the Building As
sociation occomplishes this object much
more offectually. 1t not only offers the
stronger indueement Of higher rate Of
interest, but it places difficulties in the way
Of expending the sum already accumulated.
To reap the full benefit Of the Association,
its members must hold on to the end. They
can indeed withdraw when they choose,
but they can not take out the full amount
of their profits, and unless they keep up
their payments as long as two years, they
are not entitled to draw any interest at all.
This furnishes strong motive to persevere
in economy and self denial, while the door
is open for withdrawal when it is really
necessary.
Many illustrations Of this have come
under my own observation. l call to mind
at this moment one of young man who
drove cart in lumber yard. He had
been in the habit of taking an occasional
"spree," and in this way had spent all his
surplus earnings. He married, and through b
the united persuasions of his wife and his
employer, was induced to take three shares
in Building Association then just start
ing. He found be could easily save the
required three dollars per month, and did
not miss 1t, except that it deprived him of
grog money. When tho strong desire for
liquor came on him, he often resolved to
withdraw his money from the Association,
but some notice was necessary, and, before
be could carry out his purpose, the temp.
tation was over. He persevercd, and when
the Association closed, and he found him
self in the possession Of title to q small
but comfortable house, with many attrac-
tions in the shape Of flowers and shrubbery
that his wife had gathered around it, and
many little comforts and conveniences
which in his leisure hours his own hands
had furnished, he told his employer that
he was just that much better of than he
would have been if he had not followed his
advice. But this was not all. He owed
his reformation also, in great part, to the
fact that he could not draw his money
without notice.
An incidental advantage which is not
to be entirely overlooked, is derived from
the provision that authorizes the heirs of