The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1893-01-31
THE POOR MANS CHANCE
Suggestions From the President Of
the State Building and
Loan League.
Some Reasons Why TheHe Excel
lent Institutions Have Be-
come sc Popular.
In some OF the States tho Amount In
vested Exceeds That Held by
National Banks.

The following address was delivered At
the fl Al annual meeting OF the state league
of local building and loan associations OF
Montana by John Stedman. the president
of the league, at Helena, on Jan. ii, 1898;
Gentlemen: l feel 1t to be alleasant
duty to welcome You to this, tho initial
meeting of the State League OF Local
Building aud Loan associations OF the state
of Montana. You are here to eprssens an
institution which. Judging by results IN
other sections of the country ia destined at
no distant day TO become a power for good
scarcely realized by us at the present time.
Statistics show that In several OF the states
the amount of capital invested in building
and loans associations exceeds that held by
national banks, and promises III the near
future to ovsrbalance the wealth OF all
other financial institutions combined. The
institution ia in its infancy in this stetf.
but the amount of money invested is very
large. How large ! am unable TO say at
this time, but hope TO be able 10 give you
the figures. approximately, before the close
of this session.
Many wonder why il Is that such vast
amounts of capital are gravitating so rapid
" In this direction. Once let them under
stand the principles OF the local uilding
associations and they will understand at
once why so many, especially those OF small
means, invest to such an extent IN these
societies. They ind that local societies of
this kind are purely oo-opsf"s've; every
member having an equal voice in the con
duct of it's affairs and sharing equally in its
profits. There are no SELF constituted
bosrd of officers whose salaries absorb a
great part Of the profits. The expense OF
doing the business of properly managed
scarcely worth mentioning. Every dollar
received, from whatever source, goes into a
general fund and is Immediately loaned
for the benefit of all the members, with the
exception of the small amount paid for
stationery and sectetnry's salary, he being
the only officer who receives any compsnsa-
tion. The most casual investigation soon
reveals to the inquirer that there hnn never
been discovered so cheap, profitable, safe
and altogether satisfactory q way OF han
ding small savings as is offered by these
societies.
The advantage to the borrower is not to
DO overlooked. In no other way and from
no other financial institution under the
sun can a borrower obtain the loan of thou
sands on a secu ity of hundrods. They are
emphaticslly the loor mems savings banks:
Here every member Ia a stockholder and
gets his equal share OF the profits as repre-
sented by the loaning rate instead of the
three or four per cent paid by the savings
hanks.
mcnts become large enough to be apprtci-
able and the habit Of saving 10 fostered and
stimulated in many who never saved any
thing before.
b result Ia the building of hundreds of
homes by those who could scarcely have &C
complished that end in any Other way. and
the making of hundreds of home-owne, 6
who are the mainstav and support of all
governments and societies.
These are some OF the ieasons why these
associations have become SO popular and
are taking the lead of all other financial
institutions. Their growth il only limited
by the lack of knowledge by the mass OF the
people, and it becomes our duty TO make
known the advantt ges in every way pos
sible.
Gentlemen we have met nt the request of
our several organizations for the urpose of
consulting together to see what can lie done
for the mutual benefit of the various so.
cieties which we represent here to-day.
Perhaps the most impo. tant matter that
presents itself for your consideration is
that of state supervision of the business of
ours and similar organizations. | am CON
WINGED that an examination by an author
lied agent of the state, followed by Il ub-
Ito report yearly or oftener wonld be OF
great advantage to all institutions doing n
legitimate business as it would enable tine
public to sec for themselves the exact
standing of those institutions that claim to
be worthy to be entrusted with the funds of
the eople.
1t has become q we'll recognized fact that
there should be some check. some authority
to control the ope ations of those co pc a.
x;n,,n xuhn nal IN ha nSE a6 fn hnnIla nthaf
peoples moncy.
Different states have adopted different
methods by which to ieHch this end aud
some of them have laws SO strin ent as to
%entitely exclude those institutions known as
national" building and 10 n associations
and to put the locals on their metal in such
q way as to be of great benefit to all
concerned l hope to zee the united effort
of the local societies of thiI stite put forth
toward the procuring of the enactment OF
suoh laws, At the present session of the
Legislature as will insure strict state con-
troll of all these societies. l am confid.nt
you will give this subject the consideration
it's Importance demands.
Another matter that I deem worthy
of consideration is the proposition
Of uniformity of business methods in all
the social associations of the state. IL
seems to me that we should aim to select
the best features of each individual asso-
citation, embodv them into a complete
whole and let each modify their methods
to conform to the one code.
We cannot. perhaps, accomplish much in
this direction at the present meeting, but
We can at least take the initial ster. with
the hoie that we may in time reach the
desii ed end. 1t might be well to consider
the subject OF cooperation among the mem
beEs of this League. 1t is we'll known to all
OF You that there are times in the history
of all soci ties oi this KIM when the calls
tor loans cannot be met without borrowing
temporarily from the outside.
There are times again whom you have
more money IN your troasuries thar YOU
oan dispose of. Now If some aystem could
be devised whe eby idle funds of the one
could be utilized by the other on &c. tain
safe and fixed ter ms, it would be of great
advantage In many instances. Such an
arrangement would. necessarily, consoli-
date, in a certain SENSE, all the members of
this league into one great and powerful
financial institution. which il honestly and
intelligently managed. would in a few years
become n controlling factor in tho finances
of the state. binding and loan associations
cannot flourish without borrowers al, more
than they can live without investors. 1t
has always appeared to me that the most, il
not all, these institutions giye the investor
the Iona end of the lever. Willis they are
not. strictly speaking. charitable institu-
lions, there are nevertheless MANY festu ct
about them which make them pa take some.
what of that nature. This fact mas been
recognized In the laws of eveIy state in the
Union. as 10 proved by tbs fact that they