The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1867-11-23

we were told that in South Wheeling,
nine.tenths of all the progress made In
the way of building, have been the re-
suit of the organization of such an in
stitution In that locality.
The following exposition of the Prac-
teal workings of building association
we clip from one OF our exchanges. 1t
is the clearest we have seen, and we ask
a careful perusaI of it by all who feel
an interest in the work Of improve
nent:
BUILDING ASSOCIATIONS.
The object of these associations is not
only 70 provide Savings Banks, in fact,
for those who are willing and able TO
set apart portion OF their earnings,
but also to enable them to become part
ners in an active organization, whose
capital is furnished by deposit these
savings, and whose profits are fairly
divided among all the members OF the
partnership. The scheme OF the Build
ing Association is as follows:
The members determine for them
selves what shall be the capital of the
Association, and what the number of
shares into W hich IL shall be divided,
and their par value. An order of in-
corporation is then obtained from the
SECRETARY Vi SolALcN AA4G ~
conduct its affairs are elected, and Ii Is
ready for business.
Without election, and without any
test whatever, any one may subscribe
for any number of shares which he has
| the ability to take, in accordance with
the terms prescribed by the association.
Certificates for these shares are given
to the shareholder, which are in the ma
ture of certificates OF Indebtedness of
the association to him. The means
with which thei association pays this
Indebtedness or as II is termed, TedeeHnS
| its shares, are the amounts periodically
paid IN the holder and his portion Of The
profits Of the association. For each
share he owns he is required TO pay a
small sum weekly or mOnthly-usually
tuy cents per week. That is all he
need to pay.
The association receives this small
| sum, from time TO time, and places II
to his credit, until his weekly Install
| ments together with the profits of the
association lin which he participates)
will enable il to pay him the full par
| value for each and every share he
holds. When it Is thus able to redeem
its stock or shares, or pay each share
holder dollar for dollar for his share,
the association Will have accomplished
its purposes and 1t Will then be dis
solved.
perhaps may make the operation of
the scheme palmer by u few ilustra-
tons:
Suppose the corporation organized,
aud il Is determined that the number
OF shares shall be one thousand, and
their par value $3.50 per share. Each
shareholder then by paying 90 cents
per week VIII have paid at the end of
each year 500. At the end of ten years
the Association ought to be able, from
the instaIImeuts paid by the share
holder himself, to redeem his share OF
$3.50 in null. But the profits, which are
proporIionally divided among the
shareholders, added to the weekly de-
posts, enable the Association to redeem
its stock or shares in about SeUeH years.
So that the difference between an AsSo-
citation OF this description and IA simple
| bank is this: In bank, deposits yield
no interest, accumulate no profits, and
| il will require n deposit of so cents per
week for ten wears to reach the sum of
$500. But by the mode of Investment
now under consideration, one will have
at the end of about SeUe1l years. aS n re-
salt of II deposit of the sum OF 90 cents
week, like amount of $3.50. His
share OF the profits of the building as
ISOLATION will account for the difference.
The advantage of the association over
| the bank is plainly seen. By paying SO
cents u week he has TO his credit in the
association the BHme amount at the end
OF ABOUT ScUsII years that lie would nave
| TO his credit In IA bank Mt the end OF ten
yeaTs OF course he saves the INSTALL
ments OF so cents per week for the space
of three years and has saved just as
much money in the one cnse ns in the
other.
One OF the great purposes of the asso.
ciaiiOn IL to enable men of limited
means and who are subscribers to
shares, to borrow money on approved
NH II bark with their
shares of the assets OF the association.
There are TWO plans for loaning the
funds Of the association. (Which There
| be 1000 shares will amount 10 5000 per
week, } both of which will be best eX.
planned by Illustrations. The first Is
denominated the simple interest plan, or
where simple interest alone is charged,
| and Is as follows:
Suppose "a shareholder has two shares
| ($52O) and he wants to borrow that sum
on property sufficient to secure 1t. The
JuH sum OF $500 IL advanced and deed
Oftrnst for the payment OF II at simple
| interest is given. The shareholder con-
tinues to pay his stated weekly INSTALL
ment, and when the association is able
| from it's net assets TO redeem his two
shares $500, the sum to which he Will
| be entitled will be equal to the debt
course the latter will be cancelled or
releaseds and he will then have the
| benefit ola loan of $3.50 and have almost
| impsrceptibly paid II of.
The second mode ofloauing is known
az the premium plan. II is at follows:
Instead OF advancing the full amount
| of the par value of the share, or redeem-
ing the share dollar for dollar, al above,
the funds of the association arc offered
| to shareholders for the tOIOeSt amount
for which any one may be willing 70
have his share redeemed; which Will be
~ a
| a premium for the use OF the money.
| For instance; take, as before, the hold
or 1.-TWO shares (S520). The holder may
| offer them for redemption say for the
sum of $500. II the proposition is &C.
cspted by the association, deed of
trust is given to secure the payment of
| the par value (S52O). The Indebtedness
will be discharged, as before, Shenev-
or the miscellaneous (Which, will still be
continued to be paid) and the profits
\ (which go TO the credit of the share
holder) shall equal the par value OF the
two certificates OF stock. 1t will be
readily perceived in the last case, how
ever, that the borrower, or he who has
his shares redeemed in advance, will
actually pay premium OF ttVeIlty dol
lars for the redemption of his stock.
But It must always be borne in mind
| that whether the borrower, or he who
has shares redeemed, pay simple inter-
| est or Il premium, as ne IL n uleLuDeE Vi
tho association, he participates as such,
in the interest or premium which lie
himself has paid, and thus invariably
gets portion of IL back.
The real difference between these two
| plans IS that i'll one case the profits of
the association are larger than the
| other; and hence the shareholders will
have theil shares redeemed In full in
the one Instance sooner than in the
other.