The Norfolk Virginian. [volume] (Norfolk, Va.) 186?-189?, 1897-12-05
BUILDING AND LOAN ASSOCTA
TIONS AND BANKS.
Norfolk Va Dec T. 1897

.
Editor of The Virginian:
Some recent failures of more than
usual magnitude in building and loan
circles has given rise to considerable
comment as TO the stability of those
popular institutions.
Some men prophesy the dissolution of
all those concerns at an early date.
Others are ready TO brand every build
ing association as a fraud. and all their
promoters and officers as particcps
crimnls. But much the larger number,
however, shake their heads and decide
to let those institutions alone. Com
paraiively few Of those who express an
emphatic opinion on the subject have
any accurate knowledge of the princi-
pies upon which building and loan as
sociations are operated and know moth
Ing OF their magnitude and the vast
amount OF good they have done and are
doing.
IT is admitted that building and loan
associations have failed-scores of them:
it is admitted shat large amounts were
involved in those fnilures--evcn mil
lions of dollars, and 1t is admitted that
stockholders have lost in those fail
ures.
But let us look at some facts gath
cred from statistics. From the most
reliable sources of information it is as
certained that there are 5GlS building
and loan assoca lions in this country.
with assets OF about sT00 600. 900.
There are 3,679 national banks, with
paid up capital Of $3.50, 100000. Not a
weak showing for building and loan
associations
The asSJcia tions now in existence have
Furnished their members with $50 S53
homes, besides 3i.435 other buildings,
finally and fully paid for. These figures
do not include the tens of thousands
OF homes and other buildings now be-
ing paid for In these institutions.
During the pas; year these associa-
lions have paid Withdrawing members
more than Sl20.000,000 and n further
sum OF $ii.000,000 on matured stock. or
total of Sl3i,OO0,OO0
Inc national banks being regarded as
the safest and most conservative of
financial institutions, let us cpmpare
the statistics OF their failures with
those of building and n>an associa,-
lions.
Tha Cotnp.rol7er of the Currency
SHOWS That 5,e5l national banks have
nccn organized since their inccptinn
and that $50, or G1a per cent have fail
ed. involving nominal assets of over
SlSnoOo,O0O the deposit creditors hav-
inS received about 66 % per cent Of
the amount due i;hcm. the stockholders
receiving about SlOO0.O00 on, of ,bal,.
sSo'oooooo paid in capital and assess
mentS.
me record further show that Ii9 of
'ntSc pankS nave failed since 1893 in
NolvinE over S65, 10000 i'm assets Dur-
ms the same period I3i associa,J.us fail
Cd involving assets Of Il laa:le more
than S1i,O00.OO0. From these facts /,
VIII be seen that during the last fcur
years, the failures Of national banks In
volNed over $jl 900 0G0 more Than IN
failures of associations, while ahcir res
ptGtiVe cash capitals were about the
same.
IRON the same source we learn that
since 1893 the failures Of State private
ana savings banks and trust comma,
mics number 525. with assets of over
$S+,OOooOo, and that deposit creditors
received less than % per cent, while the
stockholders i'll nearly every instance
suffered total loss
from the above statement OF facts
il will be seen that of national, sat.
and private banking institutions, G6,
or lilo per cent. have failed during the
past four years, while OF building ana
loan associations 1874, or $40 per cent,
JAILED during the same period
comparison with railroads. insur-
ance companies ana commercial con-
Germs would show building and dan in
Il SIN more favorable light
AZ is said that comparisons are odi.us
hWi 1t is not the purpose OF this article
10 cast odium Dn our national banks
OF TO weaken the confidence of tho
luhiic They are usually deserving of
All me confidence rcposed in Them Rnt
when the record shows that there ara
"lher financial institutions couoIlv
worthy OF confidence, the, Investing puh-
lie should know it. '''''-
c. NJ. AGEY.