The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1890-03-25
MUTUAL BUILDING AND LOAN
ASSOCIATIONS.

Il
in our midst q Mutual
building and Loan Association The
ubject had been locked into very
thoroughly by two or three, who pre-
'ented the results of their study at
his meeting. After this presenta- |
ion, and some discussion, it was
voted to incorporate, and committees |
we're appointed upon charter " and
4 bye-lsws."
In view Of these steps towards the
establishment of such an association
in this community, it may be of in
terest to present briefly some gen
eral facts relative to the objects,
growth and plan of operations of
similar associations abroad, and from
these facts to conclude what viii be
the probable results here.
l. The OBJECTS The objects are
generally well expressed in the name.
They are for the mutual benefit OF
all members in the matter of savings,
home building and homecoming.
The principle is a cooperative one
that of making careful and advant-
ageous loans to each other, for the
benefit of all, out of the accumulated
savings of all. We quote from the
State Bureau of Labor Statistics OF
California: " No form of direct CO.
operation among persons of limited
means is attracting more attention,
at the present time, than co-opera-
tive building and loan associations.
Whyi Because q building and loan
association is one of the very best
plans of cooperation. Through its
instrumentality, people of small
means are able to conduct bust
mass enterprise by uniting their
little capital, which no one of them
could possibly do alone. 1t trans
forms the tenant from being the
bondsman Of the landlord into being
the lord of his own castle. Rent-day
ceases to have terrors for him. His
| cottage is his home-in truth as vel
as in name. He becomes q free
holder. A properly conducted build
| ing and loan association is primary
school of business knowledge, an(
in this respect, also, is q boon to thu
mechanic. It is democratic in it
method of transacting its affairs. 1
generates and conserves the HON,
and family belongings which are
reflex of, as we'll as bulwark to, on
free institutions. It has been wei
characterized as the simplest, bes
and most successful plan of &C
operation ever made practicable il
the two hemispheres.'
| 2. The GRowTH.-We quote agar
briefly, as follows: Building an
Loan Associations are multiplying
with marvellous rapidity, both 9
home and abroad. In the State G
Pennsylvania, where they first gre,
and prospered, there are nearly on
thousand of these association,
which disburse, every twelve year,
about $4OO,OOO,OOO. In the city {
Philadelphia, from 1849 to 1881
1000 comfortable homes had bee
erected through the aid Of thee
associations. Since then the goo
work has been continued with eve
increasing ratio, so that it is we
said there is more happiness to th
square mile there than in any othe
city of the world. 1t is estimate
that fully one-fifth of all the home
in Philadelphia have been erected {
acquired under these building an
loan associations, and that one sixt
, of all the real estate in that city
/ the property of their members. Ne,
to Pennsylvania stands Ohio, wit
, about six hundred association
, which do business propo
, tionately as great. Cincinna
/ alone claims to have investe
; through her associations no LEI
, than $500, OO0, 900 in ten years. Ill
: nois ranks next, having about to,
{ hundred associations; more ths
: half of which are in Chicago. It
: estimated that about $36, OOO, 600 ~
. year is loaned by Building and Los
) Associations of Illinois, which is
r least twice the amount deposited
! the Savings Banks Of that State.
T In Minnesota they have prove
| wonderfully successful. Whilst Il
8 deposits in the Savings Banks
) that State hardly exceed $2,0OO,O l
> per year, the amount invested
: Building and Loan Associations e
q ceeds $18,OOO,OOO. From eight
, ten thousand homes in st. Paul ha'
1 been secured to their owners Wi
: money advanced by these cooper
q tive associations. Their progress
/ other States has been similar
q marked.
MIR. F. B. Sanborn, in his report
s the Social Science Association,
q 1888, estimated the number of Bull
J. ing and Loan Associations in Il
Q United States at from three to ii
r thousand, with a constant invei
!. ment of $500, 100000. The accum
). lation under this plan of saving dr
8 ing the last forty years in Il
g United States has amounted to fro
It 100000, 600 to $3.50, 600, 600"
@ 3. The PLAN OF OPERATIONS
It about as follows: A company
n from three to five hundred subscri
l. for stock, the par value Of whie
{ when matured, will be $500 p
It share. These shares are paid for
Ie monthly payments of 81 per shal
r. The shareholders thus pay, into
common fund, sums varying
amount, according to their subscri
tions from nerhaps Sc tn S25 n