New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1894-03-07
BUILD YOUR OWN HOMES.
An Excellent Article on the Usefulness Of
Building and Loan Societies.

following prize essay on Building and
Loan Association, and as it is general in
its character, it will prove Instructive
reading.
Why do i3uilding & Loan Associations
properly conducted, tend to insure hab-
its of thrift and ultimate competence to
the wage eIrners who invest in them!
The advent Of Building & Loan Asso-
ciations is convincing us Of the truth Of
the old saying, .:When all the people
save all the people prosper The fund.-
mental principle Of political economy is,
that one must be willing to sacrifice
present enjoyment for future gain, or as
the proverb puts. it, ECONOMY is wealth."
Concentration of wealth is one of the
greatest perils of the times and some
thing should be done to prevent it. Fin
ancial enterprises are coming more and
more under tie control of the few while
the masses are reduced to life long servi-
tude. \ from hand to mouth existence
grows irksome and discouraging to the
man who begins with little. He enters
upon the struggle for Il livelihood brave
", cheered by the hope that soon he
will rise to better circumstances, but how
often this hope is destined never to be
realized. The hard earned wages are
consumed from month to month in the
bare necessities Of life, no small per cent
going into the hands of his landlord.
This eXaction for the mere priviledge of
shelter is barrier in the way of ad-
vancement which is in many cases unsur-
mountable. 1t was Erastus Wiman who
said The Indian in the forest may own
his teepee, the Arab in the desert his tent
but in large aggregations of humanity,
great groups of civilized sons of men
have not where to lay their heads except
at a cost that keeps them forever slaves
to the first charge upon all their efforts. -
The condition and density of the rent
ing population in our large cities ought
to make the nation blush. A recent census
shows that in the city of New York
100000 out Of ,60O,OOO of the inhabit-
ants occupy flat apartments and tene-
ments, and that there is an average of
four families for every house in the city.
The crowding and the attending lack of
sanitary measures has resulted in a rapid
increase in the death rate. Philadelphia,
on the other hand, has shown by actual
experiment that this condition can be
converted into one in which many of
the tenement houses are owned by those
who occupy them.
Philadelphia, the proud "City of
Homes" is standing example of the
work of Building & Loan Associations.
The first association of the kind in Ame-
rica was planted il a suburb of that city
about sixty years ago, and it is estimated
that no less than 100000 houses have
been built in tho city through the direct
influence of the many associations that
have since been organized there. Three
fourths of the houses are owned by those
who occupy them and no other city of
its size can boast as prosperous and con-
tented a people. Philadelphia acknowl-
edges that the thrift and permanency of
her population is largely due to the active
interests she has taken in Building s.
Loan Associations.
The chief object is the securing of
homes to those of scanty means, and the
plan is one which enables every work.
inpman to make the most out of his
earnings. Stated in the briefest form
possible, cooperative Savings & Loan
Co. is a corporation formed under State
law, the members of which agree to pay
in fixed sum at stated periods on each
of their shares of stock, until payments
with the accumulated profits bring the
stock to its par-value. The money as it
is paid il is loaned to members land to
members only who wish to buy or build
houses, or remove encumbrances from
real estate they already own. AS the
money paid in is loaned out Immediately
the interest is compounded. and in this
way the period required for the stock to
mature is very much shortened. When
the stock of the series natures, the bor-
rowing members receive notice that their
mortgages are cancelled, and those who
have not borrowed or paid the value of
their shares in cash. 81
This plan is superior in respects to
that on which savings banks are conduct
ed. These banks were very popular Tor
a time, and many wage earners look to