The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1880-11-27
Building Associations.

For many years IN the city of Philadelphia
lco.operative savings banks, or Loan or Build.
ing Associations, have been carried on win
degree of success that has been gratifying 10
the projectors Of the scheme and fortunate lor
the investors. They are oftcner called build
ing associations, though either OF the TWO la'-
Ter names Is more applicable, for the associa
tons never build There are over SIX nun
dred of them in Philadelphia at present, with
membership of $4,000, and with An invested
capital of about $S0000000, and they have Ger.
tainly beeen boon to the workngmen OF that
lcity.
In 1874 the first attempt was made in Mas.
sachusetts to get bill through the legislature
authorizing such an association, and not TIL
1877 was it obtained. Since then three such
associations have been formed, and the earn
ings of the investments of two have been eight
per cent. per annum, the rate of the third not
being yet known, as it has been in operation
less than year. The plan is essentially co
operative, but has the advantage over co-opera
tive stores of being able to make their stock
holders useful or else turn them out.
The primary object of these associations Is
to assist person Of moderate means In secur
ing a homestead at a reasonable price and thas
free him from the iniquities of the rent sys
TEN, which always tend to bear harder ana
ldluCI VII tHC WolhluS lIldiI, 40 Souht''Ns g."
older And this is cOmmendable and phil
anthroplc purpose; the tendency is in all new
countries, where work Is plenty and wages
high, to spend and not accumulate, ana TINS
characteristic is prominent IN the United
States in the eyes of the world because OF rapid
development into prominence among the ma
tons. Taking her place SO consplcuously
among them, rivaling them already in litera
ture science and art her people still retain
many of the characteristics of youngness, and
among them is the one we have mentioned
The working people of the United States have
not yet learned 10 save; 1t makes no difference
whether the average daily wages Is 81 or "a,
the Accommodations seldom vary in amount, as
every period of depression and hard times dem
onstrates We have yet to learn the trugality
of the German and the Frenchman, and it can
be done without lowering the dignity of labor
or the average intellectual plane on which the
American worklngman stands, even now so
far above his foreign competitor. HIS present
condition tends directly TO the end sought; Tor
added to superior intelligence, the security OF
! the working man in this country tends to IN
crease his power Of production, and that, IN
| turn, his power Of accumulation, He Is
conscious of his power to produce; his ability
to accumulate no one disputes, but his Will
llngness to do so needs cultivation, and this Is
the great end towards which practical coop
Grafton, whether productive, dlstributive or
banking, is striving, and the one which work
lngmen and their champions must keep clear
ly IN MUD in considering labor questions.
The banks as conducted IN Boston are es-
sentlally the same as those in Philadelphia,
where they have been so successful that they
have practically superseded savings banks,
both as places of deposit for investment and
rs sources for small loans on real estate. The
sources of income are interest and premiums
on loans, fines on arrears and the profit which
acCrues to the associations on Withdrawals.
The chances for fraud are reduced to mini
mum, and every possible opportunity utilized
| TO make the most of investments.
We are on the hither side of an era of pros
perlty; the future Of all classes seems bright,
and no time ever presented itself more favora-
bic for small INVESTORS to learn the lesson the
experience of their fellows can teach.