The Cheyenne daily leader. [volume] (Cheyenne, Wyo.) 1870-1884, 1877-08-26
a PoPuLAR Plan


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There are in this city scores Of men
who are working upon a salary and
paying rent for their dwellings, who
can, by proper cooperation build homes
for themselves and easily pay for the
same. The organization of a building
and loan association, such as have been
working successfully for years in Phila-
delphia, Denver and other cities is the
means by which this desirable object
can be obtained, and we suggest that
such organization be made here at once.
How popular the system is In Philadel-
phia where It has been more thoroughly
tested than anywhere else In the coun-
try, may be inferred from the fact that
there are 450 building and loan associ-
atoms in that city, and these have In
vested in them an aggregate Of $40, 000,-
600, while the total deposits in the
savings banks are only S14, 000, 900.
The Philadelphia working classes save a
share Of their wages, but instead of de-
posting them in saving banks they in
vest them In building associations,
where they earn ten per cent at least.
An effort is being made to extend and
popularize the system In Boston, and
some explanations made at the first
meeting Of the share holders Of the
Pioneer Cooperative Saving Fund ard
Loan Association held in that city
throw light IN its working. Each
share may be 5000, payable In monthly
installments of 81 each, or 1t may be
5000, payable in monthly installments
OF IS each. As fast as these monthly
instalments are paid, they are invested
that Is, they are put to work earning
profits for the shareholder. Suppose
the share is $500, then payments Of 81 u
month would amount to S12 a year and
S120 in ten years, but the earnings of
these payments added to the payments
themselves would, in the course Of ten
years, make the whole amount 5000; so
the 1920 which the shareholder will
have paid will entitle him to one share
of 5000 full paid. This is one side of
the case; it shows how the earnings of
the laborer can be made to constantly
yield other earnings through good in
vestment.
But there is another feature of the
system of no less practical Importance
which shows how the homeless laborer
can anticipate the full benefits of his
investment. The monthly payments
made by a large number of share-hold-
ers constitute a considerable fund, and
this fund must be put to work. This
is done by offering it in round numbers,
$50, 800, 5000, $3.50, or any other sum
Invisible by s to the highest bidder.
For example, suppose the association
has $4,000 to loan for ten years at 6 per
cent TO stockholders who want to bor-
row it to build a house with; the money
is put up at action, and the STOCKHOLM
er who wants it most bids Il premium
say fifty cents, he gets it, and pays So a
month interest, and so cents a month
premium. At the same time he pays
81 a month on his single share of stock,
and If he desires to borrow $1,000 he
must W five shares Of stock, the
monthly payments or which would be
IS. The so cents a month premium on
each share would be 50. so; total S12. so.
This is a high rate of interest, but
it is on a principle that is never to be
paid-or rather which is being paid in
the interests for at the end of ten years,
when the $1,000 loan falls due, the
borrowers five shares will have amount
ed to 8 $1,000, and one just balances the
other. In the meantime the borrower is
living in his own house built with the
$1,000, and paying no rent. His
monthly payments on his shares and
the borrowed money will be a severe
tax on him for the time being, it is true,
but they will be lightened by the abb
sence of rent payments, and at the end
of ten years he will own a house and
be out of debt.