The Cecil Whig. [volume] (Elkton, Md.) 1841-current, 1867-12-21


that very many persons have become inter.
ested, and desire all the information to be
obtained. We are more than pleased to
learn that efforts are being made to form
society in our town, with fine prospects of
success.
Cooperative building societies were first
formed in England, about thirty years ago.
The projectors of them noticed that large
portion of the wages Of working men was
consumed in the rent Of houses, and to oh.
viate this the plan of these societies was
formed. Almost impercepibly the working
man slowly, but surely, found himself be-
coming the owner of property, with an out.
lay scarcely noticeable. They have so rap.
idly spread in England, that there are in
London alone some l40 societies, with about
10000 members. The London societies
being SO successful, many limitations sprung
up in other cities. Started with false con-
fdence, with too broad scope, and upon
unsound principles of political economy,
those societies generally failed in the course
of a few years. The failure of many natur-
ally brought suspicion upon all, and it was
not till the perfect success of the we'll con.
Quoted ones, that the people at large acquired
confidence in them. Those societies which
failed, had for their bases the following prin-
ciples TO afford more complete accom-
mediation in their loans, payments, small
deposits, and business to all persons by
loans of SMALL or large amounts, at short
or long periods, and upon easy instalment
payments; to enable members to acquire
real property, without the large capital usual.
ly necessary; to pay off membranes on
property; to accommodate, by loans and
nstallments, payments of mortgages, &C.;
to assist owners to improve and make pro.
ductive their real estate, or to find market
for the same; to facilitate the buying and
selling of real estate; to assist tenants in
paying their rents, and others having stated
payments to make for interest, fuel provi.
sions, and the like, by receiving deposits
however small or infrequent, and allowing
interest on the same conditionaly to afford
good investments by installments or other
wise to trustees, guardians, and others, and
by parents who wish to endow their chill.
dren to encourage savings and the habits
of economy and thrift by giving definite
object to induce a continuance of such hab.
its until substantial good was effected. -
The reader will perceive that some of these
principles are perfectly sound, and must en-
ter into the composition of all successful
societies, while others are conceived in total
ignorance Of the laws of business, and were
therefore doomed to destruction But the
new societies do not undertake so much. -
They confine themselves strictly to procur-
ing houses or other property for their mem.
bers. That they have been successful, when
confined to their sphere, our readers well
know.
Now as to the forming and working of
the new societies. A company OF persons,
not exceeding five hundred, meet together
and organize themselves into a society,"
Sometimes they are incorporated, but this
is neither usual nor necessary. Officers are
elected, and it is organized by determining
the number Of shares; dividing them among
the members, and settling how much are to
be the stated payments. A member buys
one share or more, according 10 his ability
This share costs him nothing in the begin.
ming except his entrance fee, but he pays a
certain snm weekly or monthly upon it, in
the nature of interest upon the estimated
value of the share. This and certain trans.
oil ,rb oh bo "A
til the member decides to borrow from the
society sum sufficient to procure house.
These weekly or monthly payments continue
until enough money is in the treasury to
equal in value one share, when the money
is loaned out to that member VI no will nav
the greatest bonus for it. Due notice is
given to the members of the time of lend.
ing. Each buyer of the money determines
for himself what bonus he can afford to
give. In New York City as much as fifteen
per cent has often been given. This sale of
money goes on whenever there is sufficient
sum on hand, till each member is provided
with house. Those who first get the
money, get their houses PAID Tor easier, ond
Of course can afford to pay higher bonus
than those who borrow later. As soon as
the purchaser selects or builds his house,
the society pay for it, and take mortgage
for the amount Of the loan. OF course the
price of the property must not exceed the
amount loaned, unless the purchaser makes
up the balance from other sources. The
vauators of the society have also power to
decide upon the sutliciency of the security
for the loan. The weekly payments are
still continued, and interest is paid the So
ciety upon the mortgage at the usual rates.
These society payments and the payment of
the interest upon the loan continue till all
the members are provided with houses in
the sane way. This runs through a period
of thirteen years &. the end of which time
the mortgage is liquidated, the payments
stop and the member has his house free of
membranes. The house is insured, for
the benefit of the society, as additional Sc
curity for the loan. At the end of these
thirteen years, oil the members will have
their houses paid for, and the society, hay
ing completed its designs, will be dissolved
Payments once made are never forfeited if
the members should desire TO withdraw or
become unable to continue their weekly pay.
ments, but will be returned upon reasonable
notice. In case of sickness, the managers