The broad ax. [volume] (Salt Lake City, Utah) 1895-19??, 1898-02-26

For several years the feeling has
been spreading In the West, as wei rs
In the East, that speculative invest
ments ere seldom desirable for wage
earners or people Of moderate means,
and men and women OF this class have
been turning their attention to safe.
regular and legitimate business invest
ments. In view Of this fact It speaks
well for building and loan associations
that during this period they have
steadily increased their membership
and capital, while the business Of other
kinds of financial corporations has
greatly decreased.
According to recent official reports,
the national banks have an aggregate
paid-up capital OF $3.50, O00,0 600, owned
by 2SS,0OO stockholders, while the
building and loan associations have q
pald-up capital Of $607, 0O0.00 owned
by 100000 stockholders. The number
OF stockholders In the latter exceeds
those in the former nearly ten to one.
The comptroller OF the currency
shows that during the past four years
the capital stock of national banks has
decreased more than $4,000, 900. while
their assets decreased $246, 409, 5S4, and
the records in most lines OF business
show a greater decrease than In the
case Of national banks.
How is 1t with building and loan as
soclations? There are fourteen states
that issue official reports, representing
more then go per cent. of the active as
sociations Of the country. In his bulle-
tin, issued in May, 1897, the commits
sioner Of labor says:
Comparing the figures for fourteen
states for the period covered by the
ninth annual report of the commission
er Of labor, the fiscal year Of the asso-
Citations ending nearest TO January i,
| 1893, with the figures for those four.
teen states as shown by recent state re-
ports for 1856, n growth is shown In
every Item. The number of
associations reporting. which repre-
sents practically all active associations
year old or over. had increased from
4,44S to 1851, or 2 per cent. The shares
outstanding had increased from $500.
155 to cess, 800, or ITO per cent; and
the installment dues paid in, plus paid
up and prepaid stock, and profits had
Increased from $3.50, Al. $50 to $40.
643,04S, or p 40 per cent"
Notwithstanding this great increase
In assets, these associations during the
past year have paid to withdrawals
members and on stock that has ma.
tured, more than SI34,OOO.OOO.
Since 1898 the records show that 14s
national banks failed. involving &c..
a34,SS1 In assets and SO, T45,02O In
capital During the same time 134
building and loan associations have
Jailed. Involving assets Of $14.211, 900,
or Sol ,323,3S1 less than was involved
IN the 149 national bank failures. An.
other feature shows a still greater dis !
crepancy. The stockholders Of the
tailed national banks, out OF $S4, !
300 or paid In capital and assessments.
nave only received In cash the sum OF
M.1l1,3S4. which indicates that thelI
holdings have little or no value In the
event or failure. On the other hand /
the assets or the associations, which
are almost exclusively invested In first /
mortgages upon real estate, are tangi |
Die and usually repay to shareholders |
In any event, a large per cent. of theiI |
investment.
Since 1893 there have been 523 fail
ures OF this class Of banking instftu !
tons, involving assets of SS4 300 .T45 ;
They have paid their depositors les,
than % per cent, while in nearly every
instance the loss of the stockholders
has been total.
The records Of the national board Of
hre underwriters show that So7 ioInt
stock fire companies have failed within
tne past Few years. involving a paId-uu
capital Of $117.312.633 and aR9re0ats
assets OF S191.STS.4 52. and the most m
these companies failed to nav thai,
creditors In full, while their stoclhoId.
ers met with a total loss. ComRornd
with these the losses Of building and
loan associations are Insignificant.
Inc records show that during tbe
past four years III railroads and az
SOo miles OF track have failed ana that
the stock and bond liabilities OF these
roads amount TO -. $50. JO9. 900. or I'm
other words. that these failures inyoIv.
twenty-five per cent. Of the aggrepats
capital stock Of all the railroads In The
country.
The commercial failures during the
past four years have been enormous
Dun's review shows that during 1870
the ratio of defaulted liabilities n
clearing house exchanges was $4.27 ne,
S1,OOO and that the ratio In 1893 was
$3.50 per $1,000. with losses almost rs
great for the two intervening years
These statistics show that he fail
ures OF national banks during the pnst
four years are about five times CREATE,
than those OF building and loan asso
Citations. and that the percentage In 9th
or lines is very much greater.
A careful review OF recent legislative
enactments and decisions In state and
federal courts shows that building and
loan associations are constantly coming
Into high favor. Laws are made for
the express purpose Of promoting and
fostering them.
The auditor Of public accounts In II
linois, In his annual report for 1896
says: There Is no more safe and pro-
htable Investment for those having
small sums TO deposit periodically than
these associations"
The associations offer one Of the best
plans upon which to borrow money.
for since the loan is constantly reduced
In amOunt by monthly payments, tho
property Is certain to become free