Delaware tribune. [volume] (Wilmington, Del.) 1867-1877, 1867-09-12

Our friend Edward NJ. Davis, of Philadelphia,
contributes to the Norristown Republican, prac-
tical and interesting article on the cooperative
plan of Building and Loan Associations He
says -
If the future is full of trouble, financial
as some think, 1t will be well for lis to have some
of to-,ays earnings laid aside to use III such tle
and if the future is TO be as bright as we all nope
what we may now save will be ready for new en-
terprises. There are very few laboring people,
mechanics, clerks in stores and offices, or women
who work for stipulated price, but are able 10
save portion of their weekly or monthly earn
ings. Ii this class of people would join some
building association, depositng their saving there
many family could have home that now de-
votes its earnings TO paying rent, which swallows
them up never TO return. Within the last three
months have carefully studied the workings OF
certain building associations, and believe that the
wit and wisdom of men have IN this way opened
the best channel by which the class OF people
have named can secure It home know of four
or five; they are all based upon the same princi-
| pie, varying only In details They are mutual in
their advantages and co-uperatye in their power.
Justice and power working In harmony Sub
| scribers pay into the Treasury 80 cents each
/ month on each share, until the shares by month
| ly payments, fines, interest on money loaned and
| premiums make each share worth S1OU. 1t takes
/ ten or eleven years TO accomplish this. From
$50 to 500 are paid, in the monty dues, and the
other "a to 40 is earned by interest premiums and
zines The money lis loaned ont TO the members
ON real estate, first mortgages and not above the
| value Of the properly and II there are buildings
they must be insured, and the policy transferred
to the association.
These are all the precautions thai my one car
, | ask but there is an additional one, Tor the Dor
rover is every month reducing the principal. A
person who has ten shares has the right to borrow
$1,000. He pays each month 81 as interest and
30 or so cents share ms monthly dues, both
items going into the general fund and helping IL
swell il TO the 500 share, which AS have sale
is generally done in about ten or eleven years
and by this time the borrower has paid back lii
borrowed money, and in such small amounts n
to be in many cases almost imperceptiblc I,
: him. The money received into the rrasnry i
kept active for as soon as there Is a few hundrct
dollars to loan, it is announced to the subscribers
and the president of the company sells 1t to th,
highest bidder, only stockholders bidding. Some
times it brings $40 premium on every hundred
sometimes 80. The higher the premium TIT
, better for those who do not need to borrow, ant
the better for the borrower, for the sooner Sl0
on each share will be reached.
This system enables person to buy home q
the prices of to-day AMI pay for II in little sum
0 running through ten years, when in all probabi
4 ty the property will be much more valtnibl,
4 There are very many people who pay from eigl
n to twelve dollals a month rent and who may d
: il all their lives, who, if they would join built
. ing association, could have in ten years hon
paid fol. II Is by the power of corporation
is the result of MUTUAL help ii Illustrates vital
:, the truth that sin union there is strength.
: person may say, ."Well, will put away 80
n month, and when 1t gets to S120 will invest
. and when it gets to S240, say IN two years, "
:, buy home for $780, pay $2i0 down, get cred
;. on the $3.50, payable S12O at a time until it
0 clear 1t is good resolution, but is 1t as got
IS as the cooperative PLAN No. First you n
e losing interest on your $2i0 as you are collecI
s it. Whereas in the association you will be makir
interest ON every 30 as you depositlt. Next, il
i by the association securely invested, whilst y,
:, may put II where 1t may be stolen or where VI
y yourself may use it upon some sudden temptaii,
III from which the association debars you
m Next you cannot buy q home as cheap part
re general thing cheaper than you can buy, Tor I
owner will want profit. Ii you build und
your own supervision you know what you hay
finally not two in ten who resolve MS above coll
IN carry out their resolution, whilst in the ASSOCIATE
about eight out OF ten d ,, because Of the aid d
such an association affords. At first ii forces p
n tics to be economical then it becomes u ha
n with them and before three years hnye passed
will be found that $40 month can be easier say
= for home than % could the first years An
or ISOLATION that will run out, as il is termed,
- ten years, yields to the depositors over per q
" per annum interest. This arises from tic Il
to that the money is always earning more Il
IN there are fines for not paying punctualy
=" monthly dues, and then there is a premium p
by the members wanting money, for the use ol
Then the associations arc conducted with eco
ri my, the secretary being the only officer paid,
he getting only 81 month. The Board IN
III, monthly to receive their monthly dues from
in members, and it costs about sc year for roc
light and fire, and some ncighboring school no
M is always open to objects OF such general rood
he This principle of corporation and mutual
- should be studied by our young people. II
ic will see in it key to success in life and 1t i
viii much better occupation than many that now 5
10 away our time. q. p.