St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1894-02-08
COOPERATIVE INVESTMENTS.
What the Granite State Provident Loan
and building A SSOciafiOn is Doing in
the United States.

What the Granite State PrOvident Loan
and l5uiIdine ssociaffon is Doing in
the United States.
The Granite State Provident Loan and
Building Associat ton IS the largest in
New England and has the largest paid-in
cash capital of any financial Institution
in the state of New Hampshire 1t has
$152, 900 deposited with four states to
secure the shareholders, and is examined
annually by them.
The safest way to procure a home
from small savings, is the building and
loan association. The plan is simple, in
expensive, easily understood and effectual.
There is no better method, at present at
least, by which the desired result can be
obtained. There are hundreds of neat,
pleasant and happy homes in the United
States which never would have been OBJ
tanned but for the building and loan asso-
Citations. The practical application of
this plan of providing homes for people
of limited means or small salaries is now
about one hundred years old. The first
building and loan association now in eX-
iStence was organized in Birmingham,
England, in 1895. This was quite sue
cessful so another was organized at
Greenwich in 1909. She first one in Scot
land was in 1925, at Kirkcudbright,
under the auspices of the Earl of Selkirk.
They were recognized by act of Parlia-
ment in 1884. BY the act of 1886 they
were defined as societies to enable a
mem Der to receive the amount in value of
| his share or shares to erect or purchase
house: but member who did not desire
to do this. could receive from the funds
! of the society the amount or value OF his
| share, improved by the payment of in
! terest by those to whom advances had
been made" etc. The shire Middlesex,
in which London is situated. had then
| about 1000 societies; in 1870 they had
increased to little over 1000. In 1874
an act was passed giving these associa-
tions special privileges and protection.
Early in the century they were introduced
into Philadelphia, where they at once
| became popular, and as the result a
| greater percentage of mechan MICS and
Iaboring men own their own homes in
that city than in any other of this
country.
Their record in this country is some
thing remarkable. So far as we know
not one has ever failed. There has been
Il large number of these organizations in
this part of the country In some the
memberships have been large, in others,
smaller. But in every instance the asso
citation has been Il success-ln one re
spect, at least, the members have GOOD
investment Mercantile houses fail; in
surance companies fail; banks fail
sometimes, more especially in this veal
of our Lord. but building and loan asso-
Citations never. Why is this The reason
is easy to find
LIABILITIES ALWAYS EQUAL ASSETS.
The true building association is part
nership institution in which the members
are partners. The assets belong to tn,
members These consist of the monthly
payments made by the members and the
profits thereon. The associate has nc
liabilities except to its members. Th'
contract of the association with its mem
beers is not to pay each member a certain
sum of money at a certain time, but tC
pay each member what he has paid tc
the association in monthly payment:
with the accumulated profits. The
association agrees TO give its members
lust what there is-no more, no less
Therefore the liability of the association
or the amount which it owes to its mem
bers, mnst always be just equal to the
| assets. From the nature of the case The
association cannot become insOlvent
ANY increase in the assets adds to the
liabilities q like amount If a loss occur
it would decrease the assets and also de
crease the liabilities to the same extent
1t would not make the associa ton in
solvent In any event the association is
able to carry out its contract with its
members.