Middletown transcript., 1868-03-14
For the Midaletorn Tran,cr,pt.


| noticed an article against Building Loan
Associations from Inquirer, and believing
him to be honest in his views, and willing
to be convinced of the truth Of these BEN
efits, will, candidly, undertake to give
Ehiu. ~ tie inforNatioaA " my powef. az
present Sf "
| First askins BIZ to Ay aowp hls sar.
casn and rlsliculpus attehpt Is a iinaneier,
and res lohgcr attempt TO show llinlselfs
iguorant6f what all who undertake 70 re-
buke any association should be possessed of,
namely, the facts of the case.
I.s-sIsdosnotknew-hvw;s sbetter; 20 set forth
claims Of Building and Loan Associa-
tions, their originator, their practical
workings. their. beneits. and the -mathe-.
matical problem Inquirer is pleased to sar-,
castlcally demand, than to copy the follow,
ing l from ON Che Delasereqa Of NOV, sl6,
"The present age is one one, Of p progress. :,
Many are the means of q sound and prac-.
ticai nature that have. been employed to,
develop Individual character. and enter
prise, to ensure to honest Industry its
proper reward, and to increase the com
fort and usefulness Of the masses, Building
and loan Associations, in the accomplish
ment Of these results, exercise. no, little
influence. The first institution Of the kind
was established at Kircudbroght in 1915
under the auspices o., the Earl Of Selkirk,
a gentleman of large fortune and liberal
views. Soon they extended into the man
ufactering districts of England, and after
wards were established in London, They
were introduced into this eopntry over
twenty Thyc or thirty years ago. "a and have
operated successfully in most of our, cities
In Philadelphia, whole districts have been
built up through their fundamentally; !; Il,
I The primary object ofthcse Associations
is TO convert rent into capitalize enable
every man, to become his own landlord.
BY uniting the savings of individual mem-
bers small sums Of money are rendered far
more productive than they possibly could
be- IT expended separately. BY paying
into joint concern but little, if any, more
than would be consumed in rent, home
can be procured and the money keptsin-
the community, a,isea1 lajn5aosta17 sdT
We all know that every renter, in the
course Of some neights or ten years pays
enough money to purchase the property
\ rented. These societies propose the asso-
citation of individual energies and means,
and the purchase Of property instead of
renting'itsiaUsually to purchase property
q large sum of money is required, and but
tfewsin these, times can commanding sneces-
( sary capital; but most of our laboring and
business men can save enough from their
b labor and business t0d payaas small sum
every amonth.iaI In fact they have to save
enough to pay rent, and by aslight addi-
tion they could meet their monthly dues
inian associationtof this kind and thereby
scure a shonle.sss1tis truethat all the mem.
lbcrs could not procure home ut the start,
but all could during theterm ofthe Associa-
tion's existence, and as fafaas our know
ledge extends, from seven to eight years
is the maximrin inn period required. gmssd
The following is an outline of the plan
and workings Of an Association Of this
Kiho S!y0w ads c,n. saacsza s1e VIA .sd H
Let each share of stock be one dollar q
month, paid in monthly during the term
of the Assoeiation's existence.Bo Suppose
there are asthoslsand shares. Every month
500 will be paid in,5 and this sun, Is put
up monthly and sold to the highest bidder
: at apremium, and this premium is deduc4
ted, and the balance handed over to the
buyer. With this advance the buyermust
either build or secure property Of equal
value; and as security 10 the Association,
give a mortgage on it equal in value to the
net sum of money he receives III = b
i A stockholder is allowed to bid for 5000
on each share he holds, and, after he bor-
rows, pays, in addition to his dues for
shares. 6pcr cent. on the amount for which
he bids. This interest ID paid monthly
This association winds mp when the as
sets Of it are sufficient to divide out to each
stoekholderl 5000 for each share of stock
To one dnotaequ,sinted with the workings
of these Associations, this mi ght: seem to
!, be asusurious mode of iloaning money, the
borrower heing requiredto pay premium
at tho outset, and thereafter an interest Of
o per cent. not simply on the amount he
actually receives, but on the amount for
!, which be bids; and this would he 50, il the
| borrower and lender werc two distinct par.
, ties. but the borrower is one Of the com.
poncnt paris. OF the concern and derives
! has pfoportionate sprofitr from the invest.
mensiof the premium andsintorcst which
he. pays ni3zsTe siltt ts8i 5ad4
"A borrowing money from the Association
even at forty per cent. premium, is a,
cheap as borrowing money in tho ordinar,
wayiat'G per cent. ,yrRad bra sI1aH p6g
For instance, a stockholder owning
shares bids for $1,000 at forty per cent
premium. This would be $500 premium
: leaving him $500 net. Nov for thi
/ 5000 hcsis required to pay 80 a month OF
s his shares and 80 interest a month, namel,
O. $1O.s9fn severn years at this sarate of pl e
MUM the Association would wind up ant
in all he has paid $40. ~ l',s cd Ta
> Suppose he borrows $500 IN the osdi
mary way. The interest wouIdlHbe S3t
per annanh, and in seven years $252, max.