Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1875-11-29
Alexandria 0azette
MONDAY EVENING, NOV. %.
New Kind Of Savings Bank.


To the editor Of the Alerandria Glzette:
/ think the subjoued article, taken from the
New York Times, is worthy place in the Ga.
zette. 1t may induce our people to start a
similar savings bank. DIT.
We have received from Philadelphia Gocu.
meDt which should interest highly the mechan-
les and intelligent working men of New York.
II Is entitled the Fifth Annual Report of the
Tradesmen's Building ard Loan Association"
1t Is evidently the product of n working man 5
pen. Its hgures-not of speech but of accounts
may not perhaps equal the description of them
IN the report which states that there is ro-
nance In them, but it is one lying far beneath
the surface they yield abundant and magnii-
cent fruit to suen as can reach It, but the ability
TO do So Is confined to 3 small minority" Yet
they certainly present = remarkable history,
which our mechanics would do we'll to study.
This association for securing homes to work.
ing men Is only five years old, and at its first
meeting only 600 shares were subscribed and
paid for by the members Now it owns 2220
shares, capital Of Sl69,645 and a membership
of ZIG stockholders. Each one of these two
hundred and seventy six members either has
already acquired a home. or is in process of
gaining it.. But the years business is the re-
msrkable Thing. The total disbursements ofthe
year by this Mutual Building Association, or
Cooperative Savings Bank, is 500 Az. Ofthis,
the loans to members have amounted to 543 600,
secured by their shares and mortgages on their
lots. The net profit on these loans has been
Sl3, AUG: or more than thirty per cent
Then, there have been paid to the with
drawn mem ers' of the different series some
$1,000. But the extraordinary figures in the
report are the current expenses, and it is these
which explain to certain degree the success of
these building associations in Philadelphia
The total expense for the year of this savings
bank is FIVE hundred and forty-two dollars, the
secretRry's salary being $500
Even in this year of business of depression
and panic, tho total indebtedness on their CAPT :
tai of Sl69, 645 is only 81 O95 and these arrears
the board hope to recover before the annual
meeting, though they desire to show all leniency
and forbearance to the members who have be-
come involved in difficulties through the sever
ity of the times.
The secretary in reviewing these figures, be-
comes almost eloquent in describing the mani
ford Influences of the association. 1t has in
spired all its members with habits of thrift and
industry; ut has imp rted an expanding and
elevatlng impulse by the social contact :" II has
given higher tastes and higher purposes !" it
has "renred up new centres OF population," and,
homes and the pleasures of home life, and an
earnest Of our future independence from pecu.
mary want"
The Secretary points with just pride to their
economical management" thrifty, cosy, I'm
ostatsous," with mo show ur useless expendi-
ture," and claims that the association has cult
waited habits of cohesion and mutual confidence
which tend essentially TO contribute to each
others prosperity, and create habits of business
and mind which could or would not be gained
in any other way"
Whatever we may think of tie rhetoric of the
Secretary, there can be no doubt that his figures
show q remarkable management of this co oper.
alive bank, and one which no association of
working men in New York has ever in u single
instance equalled: The theory of the Philadel-
md
be this: The working men unite together, and
instead of depositing their savings in savings
bank where there are manifold expenses, and
where they secure only portion of the profits,
they put them IN mutual company, and then
borrow from this same company, giving rs Sc
curity their deposits and the land they are seek
ing to buy. They pay high rate of interest,
but it comes back 20 them in the value of their
shares. The company is secure, because it holds
mortgage both on their real estate and their
shares. The stockholder is each year paying
up the price of his land and house, and mas q
motive to save, that he may own these He
shares, too, in the profits of the company and in
the gain from the ill-luck or laziness of those
members who cannot pay their dues. By
skillful management, it is found that y mechanic
paying on house about what he would have
paid as rent, becomes IN eight or ten years its
owner, with only small indebtedness.
The immense gain 10 the community is in Gull
tivating habits OF thrift in working class and
ID transforming tenant class into freeholders
Mechanics and laborers who own their homes
become, as rule, better citizens and more USE
full and intelligent members OF society.