Juniata sentinel. [volume] (Mifflintown, Pa.) 1846-1873, 1872-01-31

held in Mr. Lyons, ofhce, on Last Satur'
day evening, md the introductory move
mest inaugarated to the complete, and
permanent organization Of such an asso.
cia,ion was made. The fun scope of
said association will be fully explained
by he committee On resolutions .nasby-
laws, at the next useeing.s which will be
held on tomorrow night, February LIST,
at the Patterson School House. Loan
and building associations have long been
in successful and beneficial operation in
cities and many towns IN ll.s State. Ye
here reproduce an article on said assueia-
tions that appeared in last Saturdays
Pre.s 1t sheds = great deel.of light on
the subject. Read it carefully, ..z5s~.
BUILDING AND LOAN ASSOCIATIONS.
Much has been said Of cooperative as
sociations for manufacturing and for car
rying on other branches of productive
industry. as we'll as Of fco-operative stores.
but what are known as building and loan
associations, representing another appli-
cation of the same mutual principle, are
comparatively little undertood. The
latter offer very decided advantages not
only to the working people, but to all
persons in receipt Of wages or fixed
salary, whether shop girl. or railroad
superintendents. "a -. ysT,
The building and loan association is
in the nature of a saving bank. all the
depositors IN which are stock kholders aud
entitled to a pro rata shsre Of the profits
which their aggregated savings earn 1t
is perfectly mutual concern, there be-
ing no preferred class Of stockholders,
and, a. usually managed, the officers for
the most part serving without salaries.-
The expenses are exceedingly small. ..
A prominent feature Of such dssocia-
tions is the privilege accorded to mem
bcrs of borrowing money, iu amounts
proportioned to the number Of their
shares of stock on remarkably favorable
terms. This enables poor man to be-
come the absolute owner Of house u
from eight to eleven years by paying an
nually but a small rum in addition to the
rent of it. '>4 .-
A law passed by the Legislature of
Pennsylvania in 1859 provides for the
incorporation of building and loan asso-
Citations, and prcssribes certain; general
rules and limitations respecting them.-
Some Of the details of their working are
little complex. but the plan in the main
is very simple. and entirely within the
comprehension Of everybody. A man
or woman ei;her-who can save ten dol
lars month, may take ten shares Of
stock, which have nominal or prospec-
tive value Of 5000 each. Byocontinuing
monthly payments Of $40 during a term
which varies from eight to eleven years,
he can withdraw the sum Of $4,000 at
the end IF that time. Supposing the as
sociation TO run nine years and six
months (which is about the average
period under good management. such a
stockholder actually pays but $i,l4o in
return for the $4,000 which he obtains.
He thu, realizes an average annual in
terest of very nearly eight per cent. on
his money. while five per cent. is tie
highest ever allowed by saving banks,
and four per cent. is the more usual rate.
This example shows the paramount
advantages of such mutual socities sim
ply as a depository for savings. Of
course smaller or larger amount of
stock may be taken with proportionate
results.
Men who desire to borrow moderate
amounts of money, either for the pur-
pose of purchasing or buildings house,
or starting in buiness, find quite as great
an advantage from the possession Of
stock in a building and loan association.
though they may be obliged to pay a
considerable premium il addition to legal
interest, That premium goes to swell
the common fund, and the larger the
profits thus made by the association the
sooner its objects is accomplished and
the end of its existence reached, when
the borrower is not only relieved from
further payments of interest, but bis note
and mortgage are cancled without the
payment or any principal beyond the
amounts which have been received from
him as monthly dues on his shares of
stock. . .. ...
The stock in these associations may be
transferred at any time, and always for
more than it cost; TINS there is no possi-
bility of loss, provided honest or respon-
sible officers are chosen. The principles
and workings Of this plan cannot all be
explained within the limits of a newspaper
article. Several books have been writ
ten concerning it, and a monthly journal.
THE Building ASSOCIATION .Joxrxal-
devoted to the subject, has been publish
ed in Philadelphia for more than q year
past.
The idea Of such associations originated
in Scotland about 1919 The frat one