The Sedalia weekly bazoo. [volume] (Sedalia, Mo.) 187?-1904, 1884-10-21
THE OHIO IDEA.
What Prominent Buckeye Citf-.
zen Thinks of Building and
Loan Associations.
DAYTON, o., Oct, Z, 1884.

EDITOR BAZ0O:
/ am glad to see your state has
formed building association league,
for the purpose of getting the peoples
savings association on a correct and
practicable basis. Isee that Missouri
is young in building associations, and
now she mas the opportunity of using
the experience of men who have been
in these associations in other states
for some years. And if this league
succeeds in getting the legislature of
Missouri to pass the proper laws. IN
a few years the Building association
of the state will be the great power to
further the progress and prosperity
of said state Building association, do
more to build houses and give the mass
of your people homes than any other
kind of an organization that you can
have. Building associations learn
your merchant. mechanic, clerk and
laborer to be frugal and saving and
secure homes for themselves and fam
lilies, and the single men to save up
and become good citizens and after the
young man has saved fora few years
he is ready to take unto himself help
meet and the next be will want a home.
1t is an educator for all classes of your
community. They learn to save
money and they know not how, yet
when they go in a building association
and take sick at the end of the year
they have discovered that they are
just so much ahead and that is an en-
couragement for them to try another
year to see how much more they can
save out of their weekly or monthly
earnings. The building association
should receive dues weekly and at the
same time the secretary should take
dues at least one day in the week as
we'll as one night and in few years
they become regular Savings banks do
business the same as other banks.
This is accomplished by taking or al
allowing new stock to be subscribed
weekly, pay no back dues, receive the
interest yearly, loan the full share of
stock and charge 80 much premium,
besides interest on each 500
loaned. The most probable
are one hundred shares. If necessary,
have part 500 and part of shares
$500. Say the weekly dues to be
twenty-five cents on each 800. If 3
man becomes borrower let him pay
the same dues on loan that he pays
on shares that he is only depositing on.
At the end of the year charge him up
with his premium and interest and
deduct the same from the amount he
has paid on his loan through the year
and the balance credit on his loan.
On tie following year he shall only
pay on the actual amount he may
owe on the first OF each January. Pay
the borrower no dividend. Let your
depositors and borrowers be entirely
separate. The borrower paying for
the use of the money he has and the
earning first 60 to pay the expenses
and a certain amount for surplus
fund for contingent loss and the bal
ance to be credited up to the deposi-
tors as dividend pro rata on the sew
eral amounts. Each depositor has
deposit in the association. Under
the plan you form the best association
or savings bank this country ever had.
The great mistake in all building asso-
Citations is paying dividends to bOr-
rowers. 1t leaves your association
all uncertain and your officers always
at sea. They can only approximate
the length of time that shares will
then run. 1t is also unsatisfactory,
and constant troubles between officers
and members. Yours,
U D