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

AOHlu, WDlcn IN IUS months would
amount TO s., 400; deduc: this sum, and
we find that the borrorer has only paid
$3.50 to obtain possession Of $4,000
house. y similar operation for eight
years: Interest on $1,000 and month
ly dues for SO months, $4,000; add the
premium, $1,000; total $4,000 Now
deduct the rent, $50 per mouth. for 96
months, 81 500. and we have $l,7OO as
the sum really paid by the borrower.
II we repeat the operation of the seven
years we have the following results
Interest, monthly dues and premium,
$3.50; deduct the rent for seven years,
say 5000 year, and we find that the
borrower has only paid 81. $50 for j,-
600 house. The associations neither
buy lend nor build houses. They only
lend the money necessary for the pur-
pose on the same class of security
which Is demanded by savings and loan
societies. Wien the profit of the build
ing societies amount to sufficient
sum to pay 5000 on each share, its
full value, the association dissolves
Each share represents a par value of
5000, of which 81 per month per share
must be paid in on stated day The
money is loaned on the same day to the
members Offering the highest premium
for the use of the same. Each share
is entitled to loan of 5000 on good
security first mortgage on real estate
for example. The interest, per cent
per annum, Is payable monthly, and
together with the proceeds of the
monthly Installments, is loaned out
again, thus producing compound in
terest. which rapidly accumulates.
The expense of these societies are very
small, being confined to secretary and
the rent of an office. From the very
nature of their operations the securities
for their loans are continually increas-
ing in value. The loans are made for
a term of six years.
BUILDING SOCIETIES OF SAN FRANCISCO.
The principal building societies in the
city are the Mutual Building and
Loan Association. formed in December,
1874. with 5000 shares The profits
made by this society III the first 81
months OF its existence amounted to
$37. 1866 eqnal to profit per share
of 2115 per cent. The French Build
ing and Loan Society, established in
May, 1875, with 5000 shares, which
made profit in "a mouths of $50, 1885,
So. or u profit of 2934 per cent per
share; the Standard Building and
Loan Association. esta blished in April,
1915, with 5000 shares, which made
profit in q months of $40.739,60,
equal to 30l per cent per share; the
Home and Loan Association, established
in August. 1875. with 10000 shares,
which made in "A month $50, ,554,S2, or
ii profit per share of 81 per cent; and
the Metropolitan Loan Association,
established in March, 1875, with 5000
shares. which made in the same period
S33.679 80 or 2S per cent per share
There is also an active operation in the
Pacific Building and Loan Association,
with 5000 shares, and the Golden
Gate Mutual Association, with 5000
shares The former society has been
In existence three years. and its shares
command high premium. The latter,
although only organized in September
last. has already closed its share list.
As proof of public confidence In these
societies, it may be mentioned that be-
fore any one of them is g year in exist
ence their shares sell at a premium.
Over the bay there are two building
societies in operation, one In oakland
and the other in Alameda. The West
Oakland Society has been just as sue
cessful as those in San Francisco. In
twenty.three months the amount
earned per share amounted to 50 6S.
The Alameda society is equally pros
porous.
MORAL EFFECT OF THE SOCIETIES.
The first effect of giving man
homestead is to make him conservative.
The peasant propriety of France has
resulted in the foundation of French
republic which seems destined to last.
and with security of tenare In Ireland
tie fever of Fenianism has dwindled
into the mild and harmless agitation of
Home Rule There can be no doubt
that properly managed building
socities are unmixel good to people of
small means. They tend to give
what would be otherwise floating
population an interest in the develop
ment of the city and state. They help
to keep capital in circulation and
finally they offer to every man a
chance to become his own landlord.
Judging the future by the past it is
more than likely that we will see the
coming San Francisco largely built by
the aggregated capital of the working
classes.