The daily intelligencer. [volume] (Seattle, Wash. Territory [i.e. Wash.]) 1876-1881, 1878-08-29


THE OBJECTS AND OPERATIONS OF
BUILDING AssOCIATIoNs-RIsE or
THE AOyEMEST-How 1T HAS
SPREAD IN ENGLAND AND GERMANY
THE BUILDING SOCIETIES OF PHIL
ADELPHIA PROFITS REALIZED
SPREAD OF THE MOVEMENT IN SAN
FRAsCIsCo-PRosPER CONDITION
OF OUR SOCIETIES
Within the past four or five years
some half dozen societies have been
formed in San Francisco under the
title Of mutual building and loan so.
cietles,' the object Of which are but
little understood by the general pub
lie. They may be briefly stated: A
building society properly formed is a
joint stock association, the members of
which subscribe monthly, aud, in pro-
portion to the number Of shares they
hold pay certain fixed sums into the
common fund This fund is employed
by being let out at interest to such of
the members as desire advances and the
interest so received makes fresh capital
to be let out again and again to be con-
tinually reproductive. The sums of
money raised in this manner are suffici-
ent to make advances large enough to
enable workmen and others to acquire
building lots or building on lots already
acquired. The payments of borrowers
are so calculated as to enable them to
repay by equal monthly installments.
within a specified period, the sum bor-
rowed. and whatever interest may be
due on it during the duration of the
loan. Such societies properly conduct
ed hold out peculiar advantages to the
working classes, to put by portions of
their incomes, which are invested for
them by the society. and at the end of
a certain time repaid TO them III the
shape of large accumulation; while on
the other hand the money advanced
being let to other members of the so
ciety enables them TO purchase home
steads. being obliged only to pay the
loan back at about the rate that they
would otherwise pay rent. These So
cieties enable the ordinary man, in re-
ceipt of fixed income. to become, to a
small extent. capitalist. This be can
do from the fact that the repayments
required by the societies upon loan
do not much exceed. if at all, the rent
of house which could be purchased
or built for the amount borrowe |. A
large portion Of young mems incomes
Is absorbed by the payment of reRt,
especially 'roomers. who pay much
more for roo ms relatively than capital
lists DO for houses on Mob hill. That
hired articles are dearest oil are ready
to admit. Nevertheless. people who
would move heaven and earth to pur-
chase their furniture outright are quite
content to rent their houses.
THE HISTORY OF THE MOVEMENT.
The first benefit building society of
which we have an account was formed
in 1915. at KIrkendfright, in Scotland,
under the auspices of the Earl of Sell
kirk. Other institutions of a similar
kind were afterwards established in
the same country under the title of Men.
ages and the system was shortly after
introduced into England, and societies
were formed in the neighborhood of
Manchester and Liverpool. After the
year 1880 they increased so rapidly
that in July. 1886, special act was
passed by the British Parliment for
their encouragement and protection
The movement shortly afterwards
spread to Germany, and subsequently
to France and the Unified States AT
present there are over 5000 building
societies In the United Kingdom of
Great Britain, Scotland ami Ireland.
with an annual income of not less than
$4,000. 900 in the aggregate. Seven of
the societies have an income of $780,
900 year. Seme of them have even
higher incomes. The State Building
Society of Edinburg has an annual in
come of S650,000. The official report of
Herr Schultze- Delitzsch for 1875 shows
that in that year there were in existence
in Germany 1900 building societies,
with ,35O,000 and a capital aggregat
ing 81 OS,0O0,00O. In the United
States the great center of building So
cieties is the Quaker City. Ia Phil
adelphia alone there are 45 mutual
building societies, with $I5,0OO0OO
capital, in active operation. and quite
a large number in different cities in the
East.
THE UNDERLYING PRINCIPLES.