Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1877-07-26
BUILDING AID LOAN ASSOCIATIONS
WHAT THRY HAVE DONE FOR PHIL
ADRBPHIA, MEMPHIS AND OTHER
CITIES.

9SAA1AN0 AAA IVAN A19O1AA AAOAa
WHAT THEY HAVE DONE FOR PHIL
ADRBPHIA, MEMPHIS AND 0THEE
CITIES.
The greatest ideas, however ben
efcial to mankind, are often Of
slow growth. This may be said
especially when reference is made 10
the building and loan associations
of this country. Their first real
success was in Philadelphia, but
other cities were slow to accept and
follow the example.
The first building and loan asso-
citation in Philadelphia was formed
in 1849, and from hal year to Jan
uary l, 1876, 672 associations have
been formed in the State Of Penn
%sylyania, $50 Of which are now in
active operation. From 1S49 to
to 1875 in Philadelphia 36,129.
mortgages have been recorded, rep
rcsenting $72,25S,O 900. In 1875,
1886 buildings were erected in Phil
adelphia under the auspices of these
associations, representing $1,000,
600. The system is inexpensive as
no one but the secretary is paid a.
salary, but it requires unity and
harmony. The laboring man pays
on an average at least one,third Of.
his earnings for rent. When he
joins one Of these associations
and pays into it the money he
would pay for rent, in eight or
nine years he will be able TO buy a
home for himself in his declining
years and for his children after
him. 1t is better than q savings
bank, orthe association being upon
the mutual cooperative principle,
it cannot fail, and there is a con-
slant inducement to pay up dues
either in the prospect Of having a
home of his own and in the in
creased value Of his stock. It
combines all the benefits Of com
pound interest without the risk Of
money loaned or in bank.
The history Of building as.ocia-
tons in Memphis is both curious
and instructive. An effort was
made Just before the war to start
something of the kind, and it only
failed Of satisfactory results on ac-
count Of that great disturbance of
public affairs. After the war no
effort Of the kind was made until
1870. About that time a gentle
man who deserves to rank as a
pioneer, as far as Memphis is con-
cerned, wrote an article fayoring
such an enterprise, which was pub
liShed in one Of the morning pa I
pers. A reply was ELECTED through
the paper, and the writer's :
met and had a conference, !
and the result was the I
organization of the Workingmen's I
Building and Loan Association. }
which was chartered. October, 1871, I
according to the laws of the State :
then existing. 1t was not fully or !
gained, however, until March. .
1873. The paid up capital stock I
OF the company is now sos, 1O7: :
gain on the same, $50, $780, Az. To- /.
tai assets, $15S, 7O3.45. The reye. !
nue. Of the association for the six q
months ending July l, 1877, from . !
interest, premiums, etc, was $l4,. l
6SS.77 exclusive of dues, etc. The
present value of the shares is as
r. ~ (
follows: First series, fifty months, !
or $50, value $50. "; second series.
eighteen months paid, value S95.10; !
third series, six months paid, value ,
$S.25. The capital invested foots mn
as follows First series, average in
vestment twenty-five months. ST. !
25O; second series, average invest ]
ment nine months, SIS, 1906 third '
series, average Investment three {
months, $2,551; amounting to :
$3.50 in money actually invested. !
on which there has been a gain ac-
cumulated of $6O,596.45. No other !
business can make such a showing
IN the same length of time. We
take this single association as an ]
illustration Of what can be done, I
and what others have done here {