Northern tribune. [volume] (Cheboygan, Mich.) 1875-1885, 1881-01-15
Deposit and Loan Associations.
the Editor NORTHERN TRIBUNE.

| 10 the Eult0r NORTHERN TRIBUNE.
The uncertainties Of human life and
health, and the effect of these upon the
we'll being of those who are dependent
for their subsistence on human labor
are so manifest as to have arrested the
attention of men of all ages, and to have
taxed their ingenuity to guard against
them. 1t is probable therefore, that
traces of some sort of institution, CORES
ponding more or less closely to the
friendly societies" of modern Europe,
might be found wherever mankind have
not depended for their means of living
on the spontaneous productions of the
soil.
Germany and Scotland had their eases,
"bOxes," "chests" or "kits." which were
funds, not only for maintaining the dig
nifty of the members, but for providing
for the aged and sick. They existed in
Anglo Saxon England and were probably
the legacy of the Romans to the Teutonic
cOnquerors of Europe.
There exists in many parts of Europe
among the humble class. the sO-called
Friendly societies. These are Insurance
societies, and they depend on the prin-
ciple of substituting the certainty which
attends the fortunes of large numbers of
men for the uncertainty which belongs
to the fortunes of each.
Their object being to secure in virtue
of small periodical payment during
health. of weekly sum for relief or sup
port during sickness.
In some respects their joining a friend
ly society is better than depOsiting i'm
savings bank, for long continued sick
ness may exhaust the accumulatiOnS of
the bank and prevent the replemishing
of the fund, but it can never exhaust the
fund of the friendly society as long as
its membership continues.
Various branches have grown upon the
parent stem, including life and fire in
Surance as the most prominent in COM
mercial way, and cooperative stores,
trade unions and what is commonly
known as building associations, all
founded upon the principle enunciated
above.
With the Building Association, which
we will hereafter call the deposit and
Loan Association" as being the most
modern i'm form and purpose, our article
proposes to treat.
Some of its workings are similar to
banking, with the difference that the
borrowers who create the profits share
them and manage all the business i'm
common.
The first building associations were
formed for the purpose of creating by
periodical subscriptions, fund to assist
members i'm obtaining heritable property.
In England these are very popular and
are regulated by acts of parliament.
The royal commissioners in 1872 report
ed on the London societies a capital of
e17O00O0O, having e16.000,0OO advanced
on mortgages.
When it is considered that this large
sum is contributed chiefly by persons
in humble circumstances and in small
inStalments the reader will more fully
appreciate the power of Titles and the
protection which the weaker may create
for themselves by uniting.
The rules for the government of such
an organization must specify: Place and
time of meeting purpose, mode of raising
and investing funds, names of officers,
their election, duties, powers, and sue
cessiOn; custody of securities; provisions
as to general and special meetings; fines;
manner of altering rules; terms of with
drawal and repayment and modes of dis
solution.
The theory of these institutions is very
simple. Money is collected in compare
lively small sums from a large number
of persons and loaned to the contributors
in larger sums, secured by mortgage
upon real property or by other undOubt-
ed security, for the purpose of enabling
the borrowers to build homes or embark
i'm business.
If this sketch shall awaken an interest
among your readers we will follow it with
some statistics of the rise and growth of
the organizations in the United States
and our own state, with figures showing
the profits to members by such an ag
gregate of capital, and the cost to bOr-
rowers and plan of constitution and
bylaws for the ChebOygan Deposit and
Loan Association.