The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1904-09-01
CHAPTER |.
Cooperative Sa wing.

For working people, the difference be.
tween prosperity and poverty may de.
pend upon slight differences in the sys.
tens of education, labor or savings
which have been afforded them.
The object of this writing is to discuss
| the best system OF savings institutions
which has been devised, and to show
how to use it.
The most successful and most advan-
tageous system for working people is
that of cooperative institutions, where
by working people may help themselves
and make their own way to prosperity.
The most important conditions which
conceive to be necessary for the main
tenance OF a successful cooperative saw
ings institution are these:
~. The development of a high respect
for Christian principles. This work is
naturally, to large extent, in the hands
OF the ministers of the different Christian
denominations.
e. The development of intelligence
and skill by education and training. The
development of intelligence rests upon
State. The execution of the system is in
the hands of the teachers The develop
ment of OF skill rests upon the system of
industry or labor fostered by the State
The execution of the system rests, in in
dustrial pursuits, with the employer and
the workman; in agricultural pursuits.
with the farmer.
These preliminary conditions are fairly
well fulfilled in almost all communities in
the United States. Wherever they are
well fulfilled human labor, when aggre-
gated, is q most excellent basis OF credit.
At some time in the past somebody
discovered that human life, when taken
in the aggregate, is a good collateral
an excellent basis of credit Upon this
theory, with proper regard for surround
ings of industry and economy, life insu-
rance companies have been formed, and
from very small beginnings have accumu-
lated vast wealth. Nothing is more I'M
certain than the life of one individual.
Nothing in human affairs is more certain
than the average life of 5000 men hay
ing normal surroundings.
So also an agreement with one work
ingman is an uncertain basis OF credit.
One workingman may be dishonest, may
lose his job, might get sick, or might die.
Five hundred or a thousand working
men together, however, have a certain
average condition of continued work and
pay If one drops out, another can take
his place This makes the very best basis
of credit, superior to all other forms oil
| security.
All accumulated property, except land
is the result of past labor. Even land
| would have no value except for labor
Buildings depreciate. They become old
and obsolete. Corporate securities are
uncertain and hazardous. Even land
itself depreciates under changed condi
tons. But the labor OF a country is al
| ways In the most modern form and Of
| the fullest value. Current labor-tht
labor of today-labor in the aggregate
when it's uncertainties are eliminated
ranks, as basis Of credit, above thu
very best of other forms OF collateral.
A building and loan association is al
institution for aggregating and averag
ing the net results OF labor and establish
ing it as a basis of credit. To illustrat.
it's operations, assume that 500 peopl
form an association. They may be ma
chinists, brick layers, merchants clerks
telegraph operators, ETC., sill wOrkin,
people. and all having fair prospects o
regular employment for wages or sala
ries. If each member pays in 81 mont
these 500 people will save an aggregat
OF $500 month. In two months tn
| aS6OclALlOu " Ill nave l,OOO. lid NO.
be used to build q house for one OF it
members. The house is decided to tn
member for whom it is built. The assC
citation retains a mortgage on it to in
sure payment of dues and interest unit
each other member, in turn, gets a houst
This usually requires regular paymen
for about six and one-half years.
The member moves into his new hOus'
The rent formerly paid is now saved, t
be applied as part Of the dues and intel
est payable to the building and loan a!
ISOLATION. In some cases, when rent
high, the rent alone will pay dues an
interest In such cases rent money lite
ally buys a home In all cases the ren
money pays large portion OF the insta
ments At the worst q very small add
tional outlay is required for a home I
comparatively high value.
Where houses are rented, in half tt
cases the rent money will pay half tt
cost of the house in about six and on
half years. In quarter OF the cases tt
rent money will pay three-quarters {
the cost In a quarter OF the cases tt
, rent money will pay all the cost. The
differences depend on the cost OF building
the rates of rent and the discretion an
taste OF the member who builds.