St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1891-08-24

The history of building and loan as
sociations is an interesting one. and one
of uninterrupted success. 1t would bean
impossible task to attempt to estimate
5be great good accomplished by these
7ssociations-ass of men band
ed together for their common good. In
,alculabie benefits have been. and are
daily. conferred ali over this broad. fair
and through these agencies. Building
associations have been tested Oh large
scale. both in Europe and America, with
Uniform success. No other form Oh
legitimate investment has proven so
safe and. at the same time, 50 profitable
One OF the greatest benefits which such
organizations confer is the contracting
Of a habit of compulsory saving.
Almost any one with a moderate in
come can. with reasonable economy and
f0rethOught, save enough monthly to
pay for a few shares without lesseni ng
his comforts In any respect. By 5 uch
means he can secure q home for HIM
self on extremely easy terms Of pay
ment, really costing nothing mere than
a moderate rent: or accumulate enough
TO 20 into business, or provide for sum
of money that has 10 be raised to meet
future payments Of any kIad.
1t Is twenty-five years since the first
building association was estIbi shed in
ST. Paul. So rapidly have they grown
and so popular has this means Of saw
ing money become, that to-day st. Paul
has thirty local societies. There are in
the state eighty such societies, of
which Minneapolis has eight OF
ten. The deposits are figured
at SS.O0O.000. The deposits in the st.
Paul societies are placed at S2.eO0,O0O.
The success which has attended these
societies in st. Paul i largely attTIbu
table to the high character of the men
who have undertaken the management.
Some of these men are among the most
prominent in the city, and. in all enter
prises for the coed or the public. are tc
be found I'm the front rank. \ few
names may be mentioned: 0. O. Cul-
len. II. H. Fuller, w. Dawson Jr.. Hiler
II. Horton. \. Y. Ieeple. Theodore
Sander. II. T. McClunS. F. o. thinner
man. Samuel ITubsHaW, Joan Douglas,
John BOdin. G. PaSs1vult. w. II. Burns,
Z r. Bryant. W. Ber.andi, j. Austett
and scores OF others.
The ST Paul associations started on
the Philadelphia plan. otherwise known
as the gross plan. by which tie interest
was charged on the face of the mortgage
and the bonus deducted at the time the
loan was made. This plan proved un
satisfactory, and nearly all associations
organized in the last ten years are on
the inSlallment plan. bv which the Dor
rover gets the face OF his loan and pays
the bonus In monthly iuStallmentS. with
his dues and interest, which has proved
lar more popular than the old plan. 1t
has been hard Tor building associations
to yet good loans I'm the past four or five
Years. aud most of tLem have been re-
firing more CT less stock. IN place OF
lOaning their money, aad issuing very
little. If any. new stock. Inc result
has been that the small investors who
could not get stock u building assOcia-
tons nave gone to the savings bank. and
IN place OF only one savings bank IN st.
Paul. we now have four. two Of which
started in the past two wears.
The origin and early history Of the
societies is not very clearly traceable-
4 mention of building clubs In Biz
mIngham, Eng, occurs IN 1888; one Is
known 10 have been established by deed
IN l>uH at EECeuNlcu- announcer IS Sdlu 10
have been founded I'D $50. under the
auspices of the Ear Oh Scikirk. at Kirk
cUdbright. in Scotland. sixty years ago
these societies became established in
this country, and. probably, IN no other
country have such organizations flour
ished TO such an extent a. in this.
The largest builGinCa ISOLATION in the
world is the Birkbeck Building society,
of London. which handles S55.Qo0,000 an
uuaIy. Only ten banks I'm England
have more moneys on deposit. with
drawal Ou demand or short notice. and
only four banks in England hold more
British Government bonds. stock and
other investments which can he turned
into cash at short notice. There are
several very large associations in Ger
many and France. aud one in Canada.
but none that can compare with the
Birkbeck