St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1894-02-08

While it is true that building associa-
ton cannot become insolvent or fail, if
heavy losses should occur the profits
would thereby become reduced and the
stock would, as consequence, become
Improbable as an investment 1t is i'm
portant, therefore, to inquire what the
nature of building association business
is. Does 1t speculate with its funds in
any way? No. Does it give credit to any
body, and thereby expose itself to loss?
No. Does it incur liability by obtaining
credit of other people? No. What, then,
does it do 1t merely loans its funds to
its own members, and on first mortgage
security on real estate. No business in
the world is safer First mortgages on
real estate are everywhere recognized as
the best possible security. But this is
not all. A mortgage to building asso-
citation is much safer than ordinary real
estate mortgages, and for three reasons
i. The loans are made only to mem
bers. Both principal and interest are
paid in small monthly payments. There
is less liability of default occurring
than there would be if a large sum was
to be paid at one time.
2. The borrower commences to repay
his loan at once. IT, after three or four
years, he should get in financial troubles,
or real estate should depreciate heavily,
the association would have no chance to
lose, as a large part Of the loan has
already been repaid.
3. Most of the loans are small ones
made to mechanics and salaried men who
want to pay for homes. AS only a small
monthly payment is required to finally
give him his home clear of encumbrance,
he rarely ever makes default The result
is that 1T is a rare thing for a building
association to foreelose a mortgage,
and when a foreclosure does occur, it is
not often that the association is a loser
thereby.
There are no financial institutions in
the world which are more solid than
building associations, and there are no
institutions which have been so uniformly
successful.
The Granite State Provident is under
the supervision of the New Hampshire
bank commissioners, who speak in the
highest terms OF its standing and is also
examined annually by the bank exam
liners of Maine, Vermont and New York,
and it is safe to say that any institution
that can stand the searching and critical
examination of the last-named board
can safely be trusted. Among the well
known gentlemen of this state who have
shown their confidence in the Granite
State by becoming stockholders we
noted the names of Hon, Frank Jones,
ex-GOv. Prescott and ex-Gov Goodell
Its officers have also largely invested IN
it, and the president, Mr.. Stewart, has
several hundred shares, and is probably
the largest holder of building and loan
stock in New England. The affairs of
the association are managed upon 4 most
perfect system, and any member IS wei
come to investigate the affairs of the
association at any time. Whoever does
so will come away satisfied that it Is not
only ably and successfully managed. but
that it is also one of the safest and best
investments tor his money TO be found in
the state. Probably no similar institu-
ton in the country can show a more
rapid or prosperous growth, and it has
more than doubled its assets each year
since its organization, as will be seen by
the following: