The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1890-07-17
NUMBER 8.

Cavanagh & Fish Iris law office and COM
pleted the organic tion of the0association
by electing Mr.. James Cavanagh Presi-
dent; DIR. n. \. Pennoyer, Vice Presi
dent: Mr.. Hugh hines, Secretary Mr.. r.
f. Howe, Treasu err, and Mr. Peter Fish
er, Attorney The requisite preliminaries
Will be completed very soon and the bus
mess OF the association opened Monday
evening, the 11th of August. Ito
shares OF stock ha We been taken up to the
present writing. The board did not de-
termlne on place for the meetings of the
association, but will consider that at its
next meeting next Tuesday evening. The
following is taken from the May Sc146ner
and is worthy Ct reful perusal:
While the acc Imulation Of wealth is
mixed up with M ny of the grievous evils
OF this world, til lis statement Of the inn
pOrtance of right method of saving will
not be denied; an of equal Importance
with knowledge of saving is the lInowl-
edge how best to Use what one has saved.
The great initial problem with the multi
tude is how to saw at all. Next comes
the needed lesson, how not to squander
what has been &C eumulated.
Experience has shown that some SyS-
tenn is absolutely necessary to induce
large proportion of the persons of mod
crate means to lay aside part Of their
incomes. The 81 haller the income the
greater, of COURSE, is the temptation to
spend it all in or Ter to supply wished
for comforts of life. When money say
ing means Il denial of some creature COM
fort, some equival ent for the denial must
be presented clearly to view. The natur-
ally frugal spy put this equivalent for
themselves. But there are so many who
are not by nature frugal; and it is for
them that SYSTEM must be devised.
The most efficld Pat system of this kind
should combine Eree things: /, An easily
perceived induceIhent to save: 2, regu-
larity in laying aside the savings; g. as
much compulsion as may be in enforcing
the economy.
:: = X
Here another syd tem-n0t 50 generally
understood, but LONG tried and rapidly eX-
tending its Operat fOns-claims attention.
This is the form of cooperation known
most generally as he Building and Loan
Association In u former number of this
Magazine | gave u history Of this kind Of
cooperation, and 4 Explained at length its
business methods In view Of the grow
ing interest in the subject and the eager
demand that is ma Infested for the opinions
of members who have tested these aSSOcia-
lions. as we'll as the experiments OF differ
ent associations with particular plans of
business, | propose to bring together some
experiences, GATHERED by personal inquiry
and by correspondence with officers of as
s0ciatiOns all over the country. A suffi-
cient demonstration Of the Importance of
the subject will be found i'll the following
Statistics compiled from the reports Of
1000 of these SdciatiOns in the United
States, and printed in the last report or
the Secretary of In ternal Affairs Of Penn
sylvaria:
Shares. .......... 0,40U, OOO
Members. ....... ...... S72;O0O
Borrowers. ...... 272, 900
Borrowed shares. ......... |. 1876, 900
Assets. .... .... 1896 485, $50
Receipts, one year. ......... 139, 1873, 934
Expenses. ...... .... 1875, $50
Gains ......... ......... 70,512 200
Stated in the br efest form possible, ii
cooperative building and loan association
is corporation formed under State
law, the members Pf which agree to pay
in each a fixed SUM, at stated periods, on
each of their shar4 IS of stock, until the
payments with IL e accumulated profits
bring the stock I'd its par value. The
money as it is pal in, is lent to those
members land to nd embers only who wish
to buy or build houses or remove incum-
cnmbrances from I eal estate they already
own. If there are more applications for
loans than the trea Bury can supply, the
funds on hand are put up at auction and
awarded to the m Pmber who offers the
highest premium h addition to the regu-
lar interest, the ST atutes providing that
the associations ma do this without in
curing a penalty for usury. AS the
money paid in is 10 bned out Immediately,
the interest is com pounded, and in this
way the period required for the stock to
mature is greatly shortened. When the
stock Of series natures, the borrowing
members receive nb tice that their mort
cages are cancelled and those who have
not borrowed are paid the value Of their :
shares in cash.
Important elements Of this system are
regular dates for making the payments
Casually a certain day Of each month";
and the infliction of fine on delinquents.
If a non-bOrrower is delinquent he knows
that the fine will reduce his profits, and
the borrower has the same inducement to
be punctual, with the added knowledge
that continued defaults will be followed
by foreclosure of ibis mortgage, and the
consequent loss of IBIS home. These are
which the Building and Loan