The daily intelligencer. [volume] (Seattle, Wash. Territory [i.e. Wash.]) 1876-1881, 1878-05-07
Official Press Of King County.
Tuesday, May z, 1878.
THE Pennsylvania SAY.
INGS SYSTEM.

One cause of slow growth in this por-
tion of our Territory. is the fact that
we have no facilities for economical
and thrifty producers to deposit their
surplus earnings SO as to be safe and at
the sane time earn profitable rate of
interest. The bank is not paying in
terest on deposits. Individual accumu-
lators of small savings cannot easily
neglect their business or work to
investigate and watch investments
They would rather in most cases
send their money away to the San
Francisco savings banks for investment
in that city. and to the depletion of our
own monetary resources. 1t is law
of right that money should be reinvest-
ed on the soil where it is earned, else
depletion and the restitution of ey.
haustion will speedily follow It's a
system of starving the goose that lays
the golden eggs.
All our manufacturers, and our mer.
chants as we'll as the farmers and real
estate dealers and men in every depart.
msnt of industry should resolve them
selves into q committee of the whole to
provide q remedy for the evil The
system that has attained great popu.
larity and a great degree Of success
throughout the towns Of Pennsylvania
is that known as the "Cooperative
Building and Loan Association.
It's great merit is its simplicity. The
running expenses are merely nominal.
There are no pickings and stealings on
which to fatten lazy and corrupt officials
A packet of cheap books which may
be held in a school boys strap, the use
of q room one evening in n month and
the services of a secretary three or four
days in week comprise all the machin-
cry there is about it.
The chances for embezzlement are
reduced to a minimum. as there is no
accumulation of funds to tempt dis
honest managers, and all the business
is done in open meeting IN the presence
Of and by the stockholders, and the
whole status of the associations affairs
presented IN a monthly public state
ment. All the funds are paid in at the
stated monthly meeting. and then and
there put up for loan to the stock.
holders, who may wish to build or have
other use for money at auction, to. the
highest bidder therefor. The interest
on loans is paid in as we'll as the install
ments ON the shares each month, and
the rate Of interest is fixed, but loans
are to be struck off to the
bidder who offers the highest
premium for it, which premium
becomes q part of the profits of the
association, in which all the stock
holders have q mutual share, and it is
put up and loaned along with the other
funds. For instance, if sum of 81 600
is offered at one per cent. a month, a
man who has five 5000 shares of stock
and is willing to pay the association OF
which he is participating member,
one and one-half per cent a month
offers premium of twenty-five per
cent, that is, gives his note for the
81 900 at one per cent interest, secured
by first mortgage on approved real
estate security and assignment of hi.
five shares of stock, and ut the time
pays back to the association twenty five
per cent of tho nominal amount, &C
that he really pays ten dollars month
on $3.50. or nearly one and a half pei
cent on his actual loan. The principaI
pays itself off. so as to speak. through
= the one dollar installments. by the
maturity of the shares within a few
years.
The recommendation of the plan tc
those who have small monthly gains oil
earnings is that through the punctu
atty of payments, which is enforced b,
penalties of fines. practical monthly
compromising of interest or payments
both of interest and installments, pre-
MUM profits, etc. and the negativ,
gains of perfect economy of expense
the aggregate rate of profit on deposits
is very great. No instances of failur,
or loss have yet been known. Beside
withdrawal is free TO all stakeholder
at any time without loss.