The star. (Cincinnati [Ohio]) 1874-1875, 1875-03-30
FURTHER ABOUT b BUILDING AND
LOAN ASSOCIATIONS.

others of limited incomes, with SOM
plain figures showing how the genera
results we have given are reached.
At a dollar week paid in, each mem
Der will contribute $52 per year. r.
make as strong as possible against th
profits of the Association, we will com
pute compound interest at ten per cent
to each member ON his weekly payments
THIS Is an. eXorbitant profit, but w,
will allow 1t. The average time his So
would be at interest the first year woult
be less than six months. The interes
would be 50 GU, making $54 60. The mex
year he would have to his credit $54 g.
plus the interest on the same to his cred
1T at the end of the first year, maxim.
$50 OG. Continue this for ten years an(
each member has to his credit 1860 II
though he has paid in but So 20. The av
erage time of his contributions has beer
about five years. The two hundred mem.
bers would have to their aggregate cred.
it $173,954 90.
Now, how about getting this out of the
Associationp Should only this amount
be realized it would be most satlsfacto.
rily successful.
At the end Of four weeks the Associa
tion has $500. This is loaned at six Per
cent. to the highest bidder. We will
show that the bidder who gives his note
for $1,000 for the $500 cash makes more
profit than any other member.
During the first year thirteen such
sales of money have been made, and
notes taken aggregating $4,000 for $780,
400 cash. The interest on these notes,
at all average of five months time, is
$325. This makes the amount to the
credit of the Association at the end of
the first year $l3,925. The next year the
amount would be the same, plus years
interest on the amount realized the first
year, making $14,124 SO.
So soon as the interest amounts to $500
an extra sale is made and u note for
81, 900 is taken for it. We now have in
terest to sell and 1924 50 interest money
standing over.
Pursuing this business for elevenyears
we have an aggregate of S20S,64 95. This
redeems every members note and fur
nishes $S,846 95 for incidental expenses
during the eleven years. But if the chief
part of the accumulation Of the first two
years be devoted TO the purchase of one
hundred acres of land at about $3.50 per
acre, we can make up the amount neces-
sary to pay every members note by
adding another year to the operation.
Those members who have taken no
money have $1,000 in cash and half an
acre of land now worth $500 because of
the town that covers the tract. They
therefore, realize $1,000 for their aggre-
gate weekly payments of $500 through q
period of thirteen years. We have seen
that these dollar payments at ten per
cent. compounded amount to $S70 in
whole numbers, but it is now found that
the Association yields $1500-$350 profit
in the former case against $3.50 in the lat
ter, the ratio of profit being as five to
fourteen-nearly three fold better than
compounded ten per cent. that doubles
the principal every seven and one-third
years!
Those who have taken the money on
the terms described have made still
more. The value of their houses and
improved lots range from $1,000 to 81, 800
each. Some of the builders have added
to their houses other savings, some of
which are consequent on the Associa-
tion. They have been exempt from an
average OF $12O a year rent, less by about
$12 taxes and $60of interest ON the note,
leaving a clear saving of S5S year, or Sc
more than they have paid into the Asso-
citation. This would amount to 1896 in
twelve years, $63S in eleven years, &C.,
downward.
Is not this worth looking afterp Why
not equitably divide up some of the
wealth of the world in this legitimate
way? If all the working classes would
adopt this plan, the landlords would
soon lose the chief part of their profit,
and spectators would be compelled to
go to work.
OF course the common laborers at 81 so
or 80 per day, and with family to sup
port, would contribute less, say so cents
per week, and those who are unmarried
can pay even two dollars week, while
mechanics could pay five dol
lars per week If they were wise.
Such Associations would also pay in
the sociality and business education
they would afford the members. They
would be far more elevating in their in
fiuence than the ordinary loafng, which
is vice with too many. 1t redeems as
many families from slavery and direful
poverty as thus wisely cooperate for
mutual redemption.
FOrty.eiQht savings banks in the State