Morning journal and courier., 1880-12-06
HOW TO SAVE MONEY AND HAVE A
 HOME.

HOW TO SAVE MONEY AND HAVE A
 HOME.
 Robert Treat Paine, jr., president of the very successful Workingmen's Cooperative Saving Fund and Loan Association of Bos- ton, has made simple and comprehensive presentation of the principles, mode of ope- ration and advantages of cooperative build ing associations as they exist in Massachu- setts. We give a summary of his explana- tion in the hope that it may increase the in terest felt in this city in these great blessings to men of small means.
 Each member of an association takes as many shares as he or she wishes, not exceed ing twenty-five. One dollar a month is paid on each share. This goes on until all the shares are worth $20O, when they are of full value and are wound up and the $2OO is paid back to the holder of the share. Usually one series of shares after another is started every six months or every year, so that the different series may mature at different times. If no interest were earned 1t would take POO months for $1 month to amount to $200, or 163 years. But, with the benefit of com pound interest, one may hope and expect that ten or twelve years will see the shares worth $2OO. When business was brisk in Philadelphia, and high rates were paid for money, the shares of the building association there became worth $2OO in eight or nine years. Of course the time will depend on the rates the money earns.
 No forfeiture of money paid in is possible. A months notice is required before its with drawal. If a member ceases to pay and does not withdraw his money fine of two cents month on each share is levied.
 Loans are made at each monthly meeting of all money paid in, and thus no interest is lost. The money is offered at auction, and whoever offers the highest rate of interest gets it. Loans are made only to members. They are made in small sums-ffty dollars or any multiple thereof.
 The security must be real estate to the ap- proval first of 8 security committee and then of the board of directors. The shares of the borrower must also be pledged as addi- tional security. Loans also made upon pledge of shares alone, but only to less amount than the actual value of the shares.
 Loans may be paid back at any monthly meeting, or earlier, with interest to that day, thus giving the borrower a great privilege, and enabling him, if he has borrowed his money at high rate (say 10 or II per cent.) to reborrow at any lower rate which he may be lucky enough to get elsewhere or on any subsequent evening.
 The expenses of doing the business are re- duced to the least possible sum. No great banking houses; no expensive offices; no high salaries. There is only one sa1aried of ficer, the secretary, and his pay is small.
 There is no risk of loss of money, as no money except very small sum is kept on hand but each month all the money received and on hand is loaned at once The treasur- CT and secretary each give bonds, with sure ties, for the faithful discharge of their du- ties
 The business is done in open monthly meeting, where all members are welcome and where they can consult about all common in- terests
 The profits in the associations are large than in most other safe investments. They were eight per cent. last year in two Boston associations. The Boston societies get as high as II 7-1O per cent. interest on some of their loans
 A specimen case will make the working and benefits of these associations still plainer. A member wishes to borrow $1, 1000 on five shares. He pays B Ca dollar share) each month until the principal is paid. Of course he also pays the interest each month, which at six per cent. is $5 more G. C., $6O year If he bids 8 premium of 4o cents a share, he must also pay $2 on his five shares Sup pose he bids and gets his $1 900 loan at 40 cents premium. He pays each month, dues on principal, $5 interest at six per cent, $5; premium at 40 cents share, $2; total, SIP. This goes on till his five shares are worth" each .$2OO when his shares are equal to his mortgage and pay it of, and his shares and his mortgage are all cancelled, and he owns his own home free of debt.
 Cooperative building associations of the character described above have been in ope- ration in Philadelphia many years. They have done much to make that city a City of Homes," instead of a city of tenement houses. There are several successful associ- ations in Boston and in other places It is astonishing, or would be if the human race were not what it is, that these benefits are not more widely appreciated and enjoyed AS we have frequently asked before, why cannot one or more of these associations be formed in New Haven?