The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1876-02-03

| leag than thirty minutes LHe enIlTe sun
Of $4,000 and several hundred dollars
more arc sold. This extra money is the
premiums that are offered. They are
| likewise sold, and earn premiums on
themselves. ..g ..s
Those who are not members gather
around the trcasurer's desk 10 buy tho
shares that entitle them to the loans, and
10 give the locality where the houses and
land they offer for security may be found.
In short time the whole affair IL ar.
ranged and the meeting adjourns. The
money received from the lenders is given
to the treasurer, and he takes it home.
Tomorrow it will be placed with the
rest Of the capital in some bank, there to
remain until drawn out by checks to sup.
ply the borrowers whose bids arc finally
accepted by the directors. In few days
one or more OF the directors will be de-
tailed to examine the securities offered.
II they prove good, the directors in reg
ular meeting assembled at some private
house, or elsewhere, will make the loans,
The solicitor will then be directed to ex-
anime tho titles. The securities not
deemed good will be rejected and the
loans will be refused. In that case the
borrower must offer other security or
pay one months interest on his bid, and
then he has leave to withdraw. a month
hence these things will be fully reported,
and the money left over on refused loans
WILDE offered again in open auction.
To such simplicity is this system Of
cooperative banking reduced. In this
easy and inexpensive manner is this busi'
ness conducted. Lenders and depositors
on one side, borrowers for every known
purpose on the otter-the poor lending
10 the rich, the rich both borrowing and
lending. They call such an association
as this building and loaning associa.
ton. In reality It Is, as we have seen,
only a saving and loaning bank. The
association itself does not build, nor does
it ask what its members propose to do
with the money they take. Il may be
for house or 10 buy land. 1t may be
capital TO start some manufacture, TO
open store, buy a piano or sewing
machine, furniture or wedding outfit, or
to obtain an education. If the security
is good, that is all the association cares
to know. Such is the personal aspect OF
this matter, These are the people who
make and use these associations. The
homes that line Philadelphia's streets
represent the tangible result, the outcome
OF this system Of finance.
Suppose number Of people in GER
tain place wish to start such an associa'
ton. Some desire 10 furnish safe and
profitable means OF saving the earnings
Of those about them. Others wish to
sec the town built up, taxable prop
erty increase, and real estate raised in
value, or they wish to buy or build q
home. There is no capital in the town
except in the hands OF one or two hard
listed fellows, to deal with whom isalways
trial and grind. There is good deal
OF money in tritlIng sums scattered
through the place. II collected in one
fund il might be of great benefit in many
ways. These people meet at some pri
vate house and become the promoters o.
the enterprise. The affair is duly talked
over and the result is that some twenty
or more subscribe, say, twenty-five dol
lars each, or one advances the money t
the new association and fund is thus
created. This little capital is to aid il
procuring charter, to get the necessa
ry accOunt-bOoks and to advertise thu
new association. The charter is prOcur
cd and n name selected and the frs
meeting is announced. Thus far the as.
ISOLATION has no existence and no capital
The fund subscribed was only the start
ing bar" which sets the train in motion.
The public attends the meeting partly
out OF curiosity, partly to see who is like
" to be placed at the head OF the new
bank, and partly by an unexpressed but
very eager desire to get the use OF the
new associations money. The meeting i:
called to order and the charter Of the
new society is read. The number o.
shares is Fixed at $500, and OF these &
number are offered ut one dollar each
ANY man or woman can buy ono or as
many as they like up to fifty. 1t the pco-
pie have faith in the promoters, they
come forward and buy such IA they de-
sire. Perhaps four hundred shares are
taken by about one hundred different PEG
pie.
THE NEXT srEP Is TO ORGANIZE,
and to elect the officers and directors
Each shareholder has one ballot without
regard to the number OF shares he holds,
and the business is soon finished. The
laws OF Pennsylvania permit each share
to have n vote. The best associations
disregard this and give each shareholder
one vote only. The bylaws are prepar'
ed aud accepted, and the association be-
gins its existence. In many cases the
original promoters are elected to one or
more OF the offices. Ii time admits, the
officers arc installed that evening", and
the books OF tho association arc opened
The new directors then hold, their first
meeting. Tho pass-books and certificates
Of stock are issued, the treasurer presents
his bonds, and the salary OF the secretary
Is Fixed at about $500 n year.
Meanwhile, others become interested
and call on the secretary for shares. Any
one who can paya dollar month may
purchase share. Women, whether mar
ried or single, or the former
| independently VI 1HeAE HuaOA"NoI 'n"S
take ~ many shares as they
feel they are able to carry. Parents and
guardians may invest for their charges
Il is savings bank, free to all. A
month passes and the next meeting is to
DO held in some small hall. The cheaper
the rent of the room, provided the place is
decent and respectable, the better, for il
gives tho association a reputation for
economy that gratifies the present mem.
bera and wins new ones. The second in
stallment is now paid in, and more shares
are sold at two dollars each, and tho aSso'
citation declares itself ready TO loan money
CAPITAL has APPEARED IN TOWN.
A new and most liberal.minded CAPT
talist stands ready to loan to such as can
meet his easy demands. The meeting i
called to order, and the secretary an
nouuces that the association sold at liz
first meeting perhaps four hundred shares
that some three hundred more were ia
ken during the month, and that one hun
drcd more has been taken this evening
He adds that two installmCnts have beer
paid on each. and that about 81 400 is nov
ior sale. II the premiums offered arc
high, a few hundred dollars more will be
added to this amount.
In this simple manner is the business o.
,bo association started. There il no con