The Cecil Whig. [volume] (Elkton, Md.) 1841-current, 1873-02-08
Amending the Tonic

Amending the By.Laws.-To-night the
Stockholders of the Elkton Building Society
hold meeting to finally determine the
proposed alteration of the BYLAWS of the
Society, allowing withdrawing members to
receive six per cent interest on the money
paid into the Society exclusive of fines,
initiation, fees, &c. This rate was settled
upon at the last meeting after much debate.
A strong interest was in favor of fixing the
rate to be paid withdrawers ten or twelve
per cent, and we think the Association
stood in the light of its own interest by not
doing SO. 1t seems to us that any Stock
holder who has not borrowed, could COM
pei the Association to pay him per cent
on his investment, without any amendment
to the Bylaws; and it is the opinion of
some who have thought most on the sub
ject, that he could compel the Association
to do more than this; even to paying full
proportional share of the earnings of the
Society. Every share has paid in about
$50, which has earned about $40, and to
pay Shareholder 12 per cent on his money
in case Of withdrawing, would leave very
large margin of profit in favor of the So
ciety. The timid members who opposed
the payment of more than per cent, got
wrong impression into their heads that the
Society, somehow resembled Savings
Bank, when in truth there is scarcely the
remotest similarity between the two insti-
buttons. 1t was argued that no Savings
Bank was safe or able to stand any consid-
cradle time, that paid six per cent to its
depositors; admitting which to be all true
was, nevertheless, no argument at all; as
the nature, scope and operations of the
two institutions are as widely opposite as
the poles. Savings Banks have a corps of
salaried officers, rents and taxes to pay
The Building Society has none of these
expenses to meet. A Savings Bank has all
sorts of depostors who place sums of vary
ing amounts, and at all times on deposit,
and who are continually drawing out and
receiving their interest. A Building So
ciety has a stated number of depositors or
stockholders, who start all together, pay
the same amount on each share and all at
stated periods of one month. Moreover,
they are all known to each other, reside in
the same neighborhood and hold property
under the jurisdiction of the same County
Court. The deposits are invested by loan
to members of the Society who offer pro-
perty as security in the neighborhood,
which is carefully examined by commit
tee, who generally insist on first mort
gage. Also, all the money the borrower
has paid to the Society is additional secur-
ity, which has actually cancelled SO much of
the debt at the time it is contracted. Now
a Savings Bank has no feature at all resem-
bling these; and yet these are the very
foundation of safety on which the Building
Society rests. Hence it is utterly impossi
BILE for any considerable loss to occur to
the Elkton Building Society, and scarcely
within the bounds of probability for even
small loss. A Savings Bank is a stock
holders institution depending upon pre-
carious and uncertain set of depositors, out
of whose money all the profits of the Bank
are to be made, while the stockholders of
the Building Society are alone its deposit
tors and borrowers, and their property is
given as security for the funds of the So
ciety. When examined it will be found
that there is scarce similarity exists be-
tween Building Society and the institu-
ton known as Savings Bank, and argu-
ments drawn from the workings of the one
do not touch the operations of the other.
There has not been given, and cannot be,
any good reasons why the Elkton Building
Society should not pay withdrawing men,
bers 12 per cent; while the most conclusive
reasons have been stated why it should.