The Roanoke times. [volume] (Roanoke, Va.) 1890-1895, 1893-02-20
tute the most benefcent institution of
modern times:"

"Although building societies were before nu-
merous, thcy have multiplied exceedingly since
was suggested the plan OF permanent ccontinu-
inCO society, which is now, with few divcrstlcs
in detail, universally adopted, and has come into
operation extensively in the British colonies, in
America and largely over Europe. Many OF these
societies important institutions useful in the
highest degree funds of the best kind for in
vcstmcnt, to which humble persons may come
with their small contributions. and obtain high,
yet safe, rate OF interest. These societies have
exercised powerful influence all over the coun-
try, fostering a careful and provident spirit
among the working classes. They have added
increased value to lands and houses, and have
greatly assisted the growth OF towns This
suit could never have been effected except by the
permanent ccontinuingo principle, by which not
only are Afforded the conditions OF perpetual
existence, but to each locality secured the
lasting benefits to be derived from the expert.
cnce, enterprise and energy of the managers,
which would be lost with the closing of the ter
minating' society.
1.-THE test OF principle is Its success. Socic.
ties exist in the greatest prosperity, which were
founded ss permanent associations over thirty
years ago. Some OF the societies in England have
incomes of greater amount than that OF any other
savings institution, and with exceptions,
they have succeeded far beyond the well-balanccd
anticipations OF their founders"
Quite lately several great associa lions
of this character in Eng land have met
with disaster. The fault could in no
sense be attributed to any defects in
the system; it lay, on the contrary, IN
the departure from these principles by
the persons in charge of the manage
ment, and troubles of this sort may come
to any institution, financial or other
wise, anywhere. The primary object OF
such association is to aid men in secur.
ing homes. Instead of placing the in
como of the association in these usually
small loans, enormous advances were
made to few mon and these mon failed
to respond. AS England is the creditor
nation of the world the accumulation of
capital there for inves tment is both
rapid and great. Those who know best
about it place the amount at ST 900, O0O,-
600 per annum. 1t might have bee n
that borrowers OF small amounts were
not sufficiently numerous to absorb the
income of these defaulting associations
and to prevent stagnation the manage
mont took the risk they did, trusting to
luck to bring them out.
The building and loan associat ion
presents its great attraction in this: IT
ENABLES EVERY MAN 1T AIDS TO BECOME
HIS OWN LANDLORD. A tenant may occupy
ahouse belonging to a nonresident land i.
lord; If 80, 1T Is clear that the money
paid for the rent OF this house does not
remain In the community where the
tenant is located, but goes regularly to
the nonresident landlord, less, of
course, the commission paid to the agent
for attending to the business. Now,
houses are not built for sport-they are
meant to shelter somebody = but it
makes very material difference who
tho owner is. No matter how long a
tenant pays nonresident landlord for
the use OF a house, it will always be the
landlords and not his, and the receipt
for the rent money is certainly not an
available asset to the tenant. The
man, on the contrary, who is aided by a
building and loan association seldom
pays moro on what no gets from the as.
to pay to landlord for house of the
Same character; but he has this most
comforting assurance, that portion of
each monthly payment he makes to the
association is a part of the principal re
turned and cancelled; in other words,
he has an available asset instead of a
dead rent receipt. To secure the debt
he gives exactly the same security that
is given by any one any where who pur-
chases real estate on credit, only in.
stead of having to pay the money in a
few largo instalments-wh which not MANY
wage earners are able to compass-he
has accorded him the privilege OF pay
ing it in small monthly insta lments.
He and his family must have shelter
| somewhere, and the shelter thus pro-
vided, becoming each month more and
moro his own, so far from the property
diminishing in value, it is increased;
for there is certainly ono person, his
wife, who will SEQ that flo wers adorn it,
and that all needed repairs are attended
to without stint.
| Several cities in this country owe
moro to those associations in accelera
ting thor grow. than to any other
known agency. Leaving out, for in,
stance, Cincinnati and ST. Louis, the
great object lesson in this line is in the
| oil af Di,I, ~