Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-12-20
HELPING THE POOR.
Over $6O,OOO,OOO Invested in Loan
Associations in the County.
HOW THEY HURT SAVINGS BANKS.
Bankers Hold They Should be Taxed With
Other institutions
A HEAVY HOLDER OF BUILDING STOCK

The merits and demerits of building
and loan associations continue to be
discussed with more or less vigor between
their members and the savings banks,
and some of the former claim that they
are the commercial salt Of the earth,
so tar as the poor are concerned. They say 1t
is not altogether the abundance OF money IN
this section that causes mortgage brokers TO
hunt instead of would-be investors seeking
mortgage brokers. as in olden time, but the
fact that the poor are fast learning that tney
may get mortgages without going lorna pau
peris as in the olden time TO lordly Drokers
who exacted his terms, is suggestive.
system - Of every man his own banker that
the main cause of cheap money az pIesent Is
the fact that there are SO many Duiiolng anu
loan associations in the countrYi tnat Iney
have taken away monopoly once heio "
savings banks and brokers.
This is the view expressed BY the largese
holder of building and loan stock IN TINS county,
probably the largest in Western PennsyIv@anla, AM
holding 500 shares whose par value IS sIUOVO0.
A GENTLE ADMoNITIoN.
He was too modest to give his name, but re-
ferred the inquirer to ]. G. Robinson, after
giving the inquirer the admonition never to
take stock in any building and loan association
that bought property in its corporate capacity
He then read the epitaphs on the tombstones
of several whose untimeiy death was mourned
by thousands some years ago.
Mr.. Robinson was too busy to talk, put ne
said that as the building and loan associations
Of this county loaned considerably over
million dollars year, he supposed tney olo
hurt the business OF savings banks ana OroksIs.
How much he was not at the time prepared 70
say.
associations were of use TO the poor. ne
claimed that all the advantages derived from
them would be gotten from savings banks, but
at the same time he seemed to regard It as q
grievance that they were not taxed as banks
are which would seem to imply that their oP-
position might not be SO insignificant after all.
This banker gave the key to the solution OF
the whole matter. In the hrst place banks OF
discount are of little or no use to he very poor
as In the first place. they cannot give security
for loans. and in the second. their custom ls
not waIted, as they are not expected to ever
BECOME DEPosIToRs
and are not expected to be of any use to such
banks He might have added, secondly, that
the average day laborer is not likely to be able
to accumulate enough before oO years OF ias.s aee
banks. 1t is here the building and loan asso-
citation comes to his rescue. II ne can @ secure
some work in the suburbs Tor SlOO or SzyO ne
has the leverage to hoist him into neat little
home within few months. SupPosing he can
save 81 25 a week, he can take nVe
shares in an association, and on them
ViopSlv yH,uST naiS in rent viii more than
keep up his dues and interest. and at the end
of eight years he owns house and lot OF ms
own, paid for by rental CONSIDERABLY less
than he must have paid landlord. Instances
might be cited, but 1t is not necessary to DO SO,
as the proposition is self-evident.
OF course, to accomplish this there must be
a pop-borrowing class, but the trouble is that
this class is generally larger than wanted, as
at present many people are looking to these OF:
| ganizations as investments. There are over 1VU
| of these institutions in this county, and their
| capital stock is estimated at over $6O.OO0OOO.