The Rock Island Argus., 1880-05-11
Shall We Have a sBuilding Associa.

Shall We Have q building Assooia-
tton7
To the Editor of the Argus.
Rock ISLAND. May 10.-I desire
through your columns to call attention to
the great importance of establishing q
Loan and Building Association in Rock
Island, and to explain the object and
workings of such institutions, Working
men, living in rented houses. would derive
the greatest benefit. 1t has been demon
strated in hundreds of cities of this coun-
try, and in England, that poor man, by
joining such an association and paying to
| it monthly iustalment no larger than he
ordinarily pays for rent, in eight or ten
years, can own the house. or as good a one
as he lives in, and by continuing in an
| association for an additional eight or ten
years may own one or two other houses
| from which he derives an income sufficient
to support him comfortably in old age.
say this has been done thousands Of
times, by men earning the lowest wages,
besides being benefit to these who wish
| to provide themselves with homes. Ii is
also benefit to those who wish to save
up their small earnings by putting them
| In loan association where the money
| accumulates much faster than in q small
| savings bank.
The workings of the association are
somewhat as follows: A man wishing to
secure house, worth, we will say. 81 900
| subscribes for ten shares of stock, binding
himself to pay a monthly instalrnent of
| fifty cents on each share or $5 on his sub
scriptioD. He then applies to his associa-
ton at the regular monthly meeting for a
loan and bids a certain per cent as premi.
um over and above the six per cent inter
est, If his bid is the best one he gets the
money. $1,000, less the premium bid by
him. He then purchases house
end lot in any part Of the city he may wish
10 build one, and gives to his association a
mortgage aud also pledges his stock for
loan. He pays six per cent interest on
$1,000, or monthly instalment Of $5
which added to the $5 he pays monthly on
his stock makes $40 per month-no more
than an ordinary house rent, aud expert
ence shows that iu eight or ten years, the
value Of his stock will be equal to his in.
debtedness and he can exchange his stock to
his association for his indebtedness, and
have his property free.
TO show the above are 10 idle specula-
,ioas.I point to the success of the societies
of England and hundreds of cities of this
country, both large aud small, and es-
peciaIly to those of Philadelphia which
forty years and have furnished thousands
of families with good comfortable homes
aud have done more to build up the city
than anything else, and which to-day. rep
resent $50, 900 of capital. also point tt
the success of the association organized two
years ago in our sister city. Davenport
The first year after paying for books anC
printing tho profits were l23 per cent; the
second year Is per cent. and at the same
rate the stock viii be worth par in eigh
years.
The last Legislature of this state passeG
an act for the Incorporation OF such asso
ciations which is very liberal in its pro
visions, under which an association il
Moline has just been organized. Let tb,
worklngmen of this city not be far behind
them in this work.
The undersigned has procured books te
explain the workings of building and loar
associations from Philadelphia. also ha:
several copies of By laws and constitutions
of different associations and will be pleased
to show them to all who wish to inform
themselves With o view of starting the
Rock Island Building and Loan Associ'
alton. SAMUEL s. GUYER.