The record-union., 1896-09-30
HELPFUL 10 THE PEOPLE.
CommendatiOn for Building and Loan
Associations.
Biennial Report of the Commissioners
Causes for Congratu-
lation.

SPAiuih6, oldle commissioners ~ sh0
buldlng and Loan Associations, have
hled with the Governor their biennial
report, which contains a mass OF sta
ustlcaI and tabular matter showing
the operations of these associations and
the beneficial results therefrom. Among
other things the Commissioners say:
A COMPREHENSIVE VIEW.
Taking a general view of the build
ing and loan business for the past year
we think there is cause for congratu-
iat1on on the record here presented.
Gauged by the total assets and liablli-
tles, there has been a falling of OF
$oO,2lO 15, or Ola Of one per cent.
That this decrease has been SO small is
really a matter of wonder, when we
take into consideration the reactiOnary
times. and the much greater effect to be
noted in nearly every other branch OF
business. 1t may be said that the
building and loan associations are
stemming the tide of hard times in a
way to command the admiration Of
every student of finance. During the
past year no association has been
forced into bankruptcy as the result of
current losses One institution that had
been dragging it's slow length along
through voluntary liquidation for a
number Of years, having become so re-
duced in membership that it had no
Board of Directors, and not enough
members to create one, was placed In
the hands of receiver.
Even in this case the affairs will
doubtless be closed up without loss to
the stockholders. Two other associa-
tons that have been liquidating their
affairs as the result of losses sustained
two or three years ago, will no doubt
infiict losses on their members. The as
sociations of San Francisco which suf-
fered through the Lander loans and
defalcations are gradually improving
their condition, and, If real estate held
can be disposed of at present reduced
valuations, we believe they will come
out without further loss to members
On the other hand, every association
in the State that has been fairly we'll
managed shows a balance on the right
side of its profit and loss account. The
aggregate net profits of all associa-
tons foot up the comfortable sum of
S1,3IO,I42 Is. This is equal to q net of
I'll per cent. on the average capital
loaned out There are few, If any
other, lines Of investment, with over
twenty millions capital involved, with
interests scattered through every part
of the State and under a great many
different managements, that can make
SO handsome showing.
Probably no stronger attestation of
the desirability of the building and
loan plan when worked through to its
logical conclusion can be given than in
our report Of shares matured during
the current year Investors who stayed
With the organizations until their
shares had run the full course pre-
scribed, realized an average Of 9.62 per
cent per annum, monthly compound.
In what other line of business can the
man Of small means invest his savings
at such rate of interest? And this
with good assurance of safety for his
invested funds, and the privilege Of
withdrawing them at any time by ac-
cepting a profit somewhat smaller
EFFECTS OF THE SYSTESM.
The effect Of the building and loan
system on the finances of the State will
be appreciated when we mention the
fact that, during this year Of depres-
sion, when it has been next to impos-
sible for small operators TO obtain
leans from banks, these societies have
Gisbursed in loans to their members
S3,321, 49, 81. A large share of this
money has gone into the building OF
new homes. and the balance has helped
members to carry loans already in
CURED in such manner as to render
the repayment easy and reasonably
sure
Since their organization these associ-
atoms have been instrumental in the
1,001 were built during the fiscal year
covered by this report. That more
than 5000 citizens of California car
look to this system Of cooperation as
the chief means through which they
acquired that great desideratum a
home Of their own, is one Of the proud
est boasts of building and loan institu-
tions. That these homes are increasing
at the rate Of thousand a year
through such times Of stringency as we
nave been encountering is no less a
cause Of congratulation than Of wonder
The effect Of this form of saving and
cooperation is most beneficent on or
eanized society, by helping to organize
an Independent, property holding, self
respecting citizenship
Not only is the influence felt by those
WIZ SCSuiC AOaAlo 1OE SQCIl purposes, Du1
the entire membership, numbering 81 !.
40 people, are being educated in habits
Of economy and thrift, and a consider.
able majority will eventually attain
the ranks Of freeholders
KEPT IN CIRCULATION.
In addition to the large amount lib
Grated TO go into the channels Of in
dustry, the building and loan associa
tons have paid to their members fol
stock Cancelled or matured the sum O
s., 5,143, IA 43. OF this, $3,S66,J62 4.
represented dues refunded, and S1,277
151 94 profits paid to the withdrawing
members.
Here Is total Of nearly eight ant
one-h half millions Of dollars that TIL
building and loan associations have Sc
free during the year to relieve tn
stress of hard times and actuate TIL
wheels Of industry. Surely such an in
fluence is to be regarded as one of tn
most powerful and one Of the most sal
utary in the State.
NOT A HOARDER.
From the essential conditions of 1t
business, the building and loan associ
alton is not and could not afford to b
hoarder of money. If Ii expects t