Omaha daily bee., 1902-05-04
COOPERATIVE HOME BUILDING
Convention Of the Nebraska State League
Of Building-LOsn Associations,
PROBLEM OF MUTUAL SAVINGS BANKS
Features of the Proposed Innovation
in state B~anks-Other Important
Subjects Argued 90
n Finish.

Omaha last week, was a notable gathering
Of representative men actively engaged in
promoting thrift and home ownership
through the medium Of cooperative effort.
The associations Of fourteen cities and
towns had delegates present. The State
Banking board was represented by L. v.
Haskell and the banking interest by Hon.
P. L. Hall, former secretary Of the State
Banking board. The program embraced a
variety Of papers covering the leading fea-
lures Of association work, and the discus
sions they called forth we're spirited, in
structive and entertaining.
In his opening address President Bentley
called attention to the difference between
the building and loan association and all
other credit agencies, Its distinctive fea-
ture being the fact that 1t is an interme-
diary credit agency, owned and controlled
by those who use It and who are served by
II. ut collects small savings he said,
land masses them so that they become an
economic force. II distributes its loans so
as to make the ownership OF a home pos
sible to the industrious and economical
wage Garner. But II does more than this.
1t exerts a powerful, educative influence
on its members. 1t teaches s~obriety, self
denial. economy and self-reliance."
Value of the Work.
Although a banker and closely confined to
his business Mr.. Bentley has devoted much
Of his spare time to the upbuilding Of Co
operative associations, not only in his home
city, but throughout the state. His APP
probation Of their value and his pride In
their success are founded on the conviction
that building and loan associations are
among the most effective agencies of self
help now In operation. Recognizing their
great utility" he said. 1--WE see the neces-
slty for removing every obstacle and Of
smoothing out every irregularity, and for
endea voring to adjust our methods so as to
render not merely substantial Justice, but,
II possible, to do equal and exact Justice.
We believe our object to be a noble one.
Whoever removes an obstacle from the path
Of the building and loan association helps
to advance a great civilizing and humaniz-
ing fundamentally, and we may count our
selves fortunate in having the opportunity
to COM together with this end In view.
We cannot help feeling that, scattered
throughout the state, serving associations
that are not embers Of the league, are
many men whose bright minds and active
energies ought to be devoted. for a short
time at least, In each year, to helping their
comrades In the building association field
to a better understanding Of their work, to
greater efficiency in 1t and to greater en-
thusiasm for It.. These men ought to be
with us, and l ask every member Of this
convention to do his part in persuading
them to join our ranks. The past year has
been crowned with success In many ways
and the future Is bright before us. Let us
all look forward to the coming year with
the determination to make our associations
stronger and better and more useful than
ever before, and also with the determine
tion to secure, II possible. the cooperation
of every association in the state in the
good that this league has undertaken"
Mutual Savings Banks.
Foremost among the subjects considered
was the question, What should be the atti-
tude OF building association men toward
the proposed law for the establishment Of
mutual or trust savings banks in this
slater" During the last legislature a bill
for an act authorizing the establishment OF
mutual savings banks was introduced and
seriously considered and was with d~ificulty
defeated. Building association people OPP
posed the measure, believing that It was
an unwarranted invasion OF their special
province, and many disinterested persons
urged Its defeat on the ground that It's
provisions were ill-digested and dangerous
to the welfare OF existing institutions. This
experience lent special interest to the paper
Of Hon. p. L. Hall Of Lincoln, former sec
rotary Of the State Banking board, now an
oficer of a national bank. DR.. Hall is an
ardent believer in and supporter Of build
ing and loan associations, but does not be-
lieve they fulfill all necessities and re-
q%uirements OF the public in the whole field
Of small savings. He has heretofore advo-
Gated broadening their usefulness by the
addition Of savings bank features, urging
that It could be done without impairing
their stability or rendering them less able
to stand the crucial test Of hard times, de-
probation Of values and financial unrest"
THE disastrous record OF savings banks
with fixed capital in this state" said DR..
Hall, places them beyond the pale Of con-
sideration by those who know their weak
ness. No one conversant with the history
of savings banks in Nebraska. operated with
fixed capital. can do aught but condemn
them. In order to be perpetuated they must
be allied with some stronger institution
able to take care of them when they totter
and would fall. This is true because OF the
fatally defective law under which they
operate, which requires them in the main
to invest only in longtime securities and
to pay practically on demand"
sharing PROFITS and Losses.
The class Of savings banks needed to
meet existing conditions was, in DR.. Halls
opinion. those based on the principle of CO.
operation and mutually. wherein the de-
positor is mutually and equitably interested
to the extent OF his deposit and the time II
is left in the bank; where no interest Is
paid. but where each depositor shares in
the prchts in accordance with the time and
amount OF his deposit, and where the right
Of withdrawal is restricted In much the
same manner as now provided by building
and loan associations. An institution con-
structed upon such a plan, In competent
hands. will meet all requirements under or
binary conditions and bid defiance to Anan-
cial gloom and panic"
DR.. Hall reiterated his conviction ex-
pressed In his report to the State Banking
board two years ago. that with this savings
bank feature as an adjunct to building and
loan associations the latter would become
the most powerful financial Institutions in
the west. II this cannot be done, mutual
savings banks should be provided for indie
%pendently. There is q field for them and a
demand for them, and a Law authorizing
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