The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-04-19
MONEY SAVERS.
The Great Good Done This Community BY
Building Associations.

'There is no need of savings banks in this
city," said gentleman to the reporter. 'The
building and loan associations have completely
taken their place BY the way, the title build
ing and loan is a misnomer; they are more cor
rectly saving and loan associations AS first or
ganized in Philadelphia, the term building asso-
citation was correct one, as the associations
bought land and built rows of houses upon it,
selling the tenements to members who bid a
bonus for first choice There is less complica-
ton in the method in vogue here The first
series of building and loan associations in this
city started in 1S63lS64. They were got up
and managed by real estate dealers, and were
not successful. The next began in 1871, and
since that time they have constantly increased
in number, new ones being formed as the old
ones paid out Hundreds of workingmen
have accumulated homes through their invest
ments in these associations. and no one has ever
suffered from any defalcation or mismanage-
ment
ION the 1st day of January, this year. there
were fifty of these associations in this county
forty nine of them in indianapolis and one in
Brghtwood. These fifty have 1880 paying
shares representing about ST. 900 paid in dues
each working day in the year. Since the LIST of
January nine other associations have been
formed in this CITY, which increases the number
to fifty nine and increases the dues paid in daily
to nearly So, 600, or yearly total of over 5000,
900. Two classes are benefited by these asso-
ciations-the savers and the borrowers. All loans
are made on first mortgage on realestate A great
amount of the borrowing is to remove incum-
brances. These associations except in the case
of very large amounts, have about driven East
ern capital out of the market. This is good for
home interests. 1t keeps both money and in
terest at home where they are taxed. Interest
on foreign capital is lost to u.s. and foreign cap
ital doesn't pay cent of tax into our treasury.
ut would be difficult to estimate the number
of cottage homes for working men that have been
built by money saved in these associations, but
they are numerous. These associations COM
mend themselves for several reasons. In the
first place, they are run on a mere nominal
expense the secretary, who is the only saaried
man, receiving very small pay Every member
has a voice in the management, and access to all
books and papers, There are over 5000 persons
classes being represented, but by far the larger
number being mechanics and laboring people
who depend upon their days wages. Many
parents take shares for their children, and hus-
bands for their wives. They keep more money
away o.h from .ns the , drinking shops than
They are different from savings banks
and better, because the saving is compulsory and
must go from week to week without skip
while in savings bank the depostor can put in
one week and neglect to do so whenever he may
see fit The laboring man who takes shares in
a savings association begins to curtail his ex-
penses, and having begun must keep it up He
drinks less beer, smokes fewer cigars and per-
haps gives up one or both habits altogether
They stimulate thrift and encourage the domcs-
tic virtues Each association organized is an
additional bulwark to society. In laying this
weekly obligation to pay upon members, debt
is placed upon them that calls for temperance
and self-deniaL All of Benjamin Franklin's
proverbs put together are not worth as much to
the laboring man as he receives in practical
good from an investment in properly conducted
loan and savings association"