The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1904-09-08

| Ihe membership Oh these aSSOcla-
tons has been mainly drawn from
industrial wage workers. 1t is, hox-
ever, by no means confined to this
class. The membership of most as
sociations includes also merchants,
professional men, teachers, preachers,
and in some cases also capitalists
and farmers. Building and loan as
sociations have had their greatest
development in Philadelphia and adj
joining towns in Pennsylvania. They
have been notably successful, how
ever, in and near Baltimore, Nd,
and Charlotte, N. C. They have also
succeeded in the principal cities of
the State just north of the Ohio
river, and in many other parts of
the United States. The plan of Or
ganization is briefly as follows:
A charter is obtained and bylaws
are prepared.
A subscription list or subscription
blank are provided; sometimes both.
An admission fee of 25 to so cents
per share is usually charged to pay
for charter, cost of books, station
cry and expenses connected with Or
ganization.
The payments are usually fixed at
25 cents Il week or s Il month per
share 1t is best to make the pay
ments by the week, with provision
for those who prefer to pay by
month.
In most cases from 800 to 1000
shares are subscribed before business
is begun. Associations are some
times organized and put into opera
ton with no more than 100 shares
subscribed. This would give an in
come of about 500 month. To
accumulate 5000 to lend to a men,
Der to build a modest house would
require six months. 1t would be
necessary in such q case for officers
to serve practically without pay. Yet
a, small beginning like this has in
many Cases been made, and the or
ganization, under careful manage
ment, has grown into a large and
important institution. Indeed, it
would seem that in most cases of
starting a new business small begin
nings are advantageous.
In all cases the money is loaned to
members as fast as it ia accumulated
in such sums as they may desire,
and on the approval of the board OF
directors, or of a credit committee
| on the board. A first mortgage is
taken Oh the property on which the
borrowed money is spent. Loans to
the extent of about two-thirds to
three-foufths the value of the prop
erty arc usually considered safe. If
the borrower owns a lot he can gen.
orally get enough money to build
the house. II a member has no lot
he may find somebody willing to sell
one on long time and take a second
mortgage, provided the first mort
gage is given to the building and
loan association to secure q loan for
building house on the lot
Land companies and individuals
trading in land are often willing to
sell lot on these terms. When the
payments to the building and loan
association are completed, SAY in six
and one-half years, it's debt and mort
gage are cancelled, and then the
second mortgage, made for the cost
OF the lot, becomes the first But if
desired money may now be borrowed
from the building and loan associa-
ton on Il new series to pay off this
original debt on the lot. The adj
vantage of this is that the debt is
finally cancelled by the easy pay
ments to the building and loan as
ISOLATION, whereas it might be irk-
some to pay it all off at one time
There are many variations in the
details of plans for building and loan
payments, loans, premiums, dis
counts, etc. These are fully discuss
ed in another chapter
Land loan banks are cooperative
savings and loan associations, made
up chiefly of farmers. They origi
mated in Germany, and have theil
highest development there, though
they are now extending over many
parts of Europe. They are the ap
plication to a farming population o
exactly the same principle which has
been so successful in the United
States in building and loan associa
tons for industrial populations. II
,, the building and loan association
payments are made at periods thai
! suit the manner of income of most o
it's members. This is naturally b,
the week or by the month. For al
association of farmers the payment
must be made to coincide substan
o TALLY with the marketing of tn
. crops For the United States, sucl
! an association of farmers in tn
Northwest would naturally fix tn
payments to coincide with tn
marketing of wheat, in Kansa
with the marketing OF corn, and il
the South with the marketing OF cot
ton. Thus, instead of paying by th
week, so times a year, or by til
month. which would be impractit
: able for a farmer, the payment
n would be made in about three insta
t ments, one month apart, as crop
r mature and marketed.
:, For the organization of a Ian
: loan bank among cotton farmers
n for'example, the charter and bylaw
q are prepared and the subscription G
D membership list is completed. SUI
a pose shares are made 500 each, an
J. payments are fixed at $13 a year
J. share Cotton natures all threug
If the fall months, beginning abor
q September 1 and ending about d
e cember Is. The marketing begir
q about September Is and ends abor
a January 1. To suit these conditio
J. the instalment dates for cotto
farmers might be made October
November l, December 1 and Jam
~ airy /. This would make four insta
ments each year. For a farm'
carrying two shares $4,000 the yea
h ly payments would be $26, or So
N on each of these dates.
10 Assuming that we have On organ
N cation of 100 farmers, and that tt
" shares carried by the members (sOn
|