The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1900-07-28

Nv LA Va
| Citations is the loaning of money on pre-
| miums. AS rule, money is sold to the
| highest bidder who has to pay the cur
rent rate, plus the premium. The prin-
icple of this method is correct, probably,
but a man, in his anxiety to secure
such a loan, especially when he feels
that his security is somewhat oyerval-
| ued, Is willing to pay a high premium,
but later on, when he finds that his in
terest plus his premium, after deduct
ing his own share n the profits, results
in his paying very high rate of inter-
! est, compared it'll the market rates, he
feels the strain, which is constant one,
and thus he begins to complain of the
methods of the building and loan asso-
| citation, of the officers conducting it, and
of the results secured to him individual
| ~ This condition Injuries the moral
tone of the association.
am unable to suggest d remedy, eX-
cept drastic one. which is to abandon
the premium method entirely and make
! loans in the order of application, on the
| Judgment of a careful, conservative III
Vestment committee. Probably in this
way as much good would be accom-
| plished as in the other, and the weak
ness coming from the premium system
| be avoided.
| The use of expense funds is a matter
which in the future must receive the
most earnest consideration of the man
ayers of building and loan associations.
A large surplus in any institution is
11xyn
more money than they know what to do
with, building and loan associations
with a large surplus, are pro tanto sub
ject to it; but building and loan asso-
citation with an expense fund which is
at the disposal of its officers is in very
bad condition. The accumulation of
expense funds is not a general practice
at the present time, but wherever 1t is a
practice there exist opportunities for IT.
regular transactions, The national
building associations have come into
disrepute very largely through the ac-
cumulation of such a fund. There
should be some regulation by law by
which the disposition of an expense
fund should be provided for.
The difficulties of building and loan
associations are not altogether connect
ed with them, or inherent. During the
last few months several associations in
one of our states have been obliged to
put their affairs into the hands OF re-
ceivers on account of the legislation of
the state relative to taxation. 1t seems
to me to be a very short -sghted prac- |
tice for state to so tax benevolent or
philanthropic movement that 1t cannot
conduct it's business successfully. The
taxation of building and loan assdcia- |
lions Is question which interests you
greatly, and l believe that if you pre-
sent a united front are harmonious In
your demands and give the most inn
portant reasons for your action, you
can secure generally throughout the |
country reasonable and just legislation |
relative to taxation.
The very best interests of building |
and loan associations in the future are |
to be enhanced by wise supervision. !
Our great corporations for many pur-
poses--banks, insurance companies, ev
erything that deals with the public and
for the avowed purpose of benetiting
the public-have been brought under
more or less perfect, but in
sucha way that the public can ascertain
the financial standing and condition of
such institutions. There is no reason
why building and loan associations
should not be brought under such SUI
pervision 1t would dignity their exist
ence, it would safeguard their interests,
it would protect them as we'll as the
public, and in those states where super
vision exists you generally find the
safest associations.
One of the features of such a law
should be the insistence upon all finan-
cia officers of a building and loan as
ISOLATION giving proper bombs for the
protection Of the funds in their care.
The high character of such officials. or
their reputation for honesty and integ-
rity and careful management, is not the
only requisite, the Investors have
right to feel that, no matter what hap
pens in the way of losses or otherwise,
the officers are responsible to their
wards.
AS / said, you have been passing
through perilous times You must re-
cover from the menaces and weakness
es which come of too rapid growth; you
must overcome some of the propensi-
ties in the management Of your associ-
atoms, and thus make them what l be-
lieve them to be-a great moral and CO.
cial force. There is nothing which
adds more stability, security and re-
sponsibility, even, to the members of a
than to feel that they have
invested in a provident in
stitution. They then become the very
best citizens, eager to sustain law.
ready to defend institutions, and at all
times interested in the welfare of the
whole community.
ALASKA'S MOST NOTED DOG is
DEAD.