Omaha daily bee., 1906-05-27

ward which associations are tending, is
very nearly like the savings bank. in which
the investing member will at monthly
periods put away such sums as he con-
veniently can, with no penalty II he
chooses to miss a month. and the borrower
will pay straight interest on his loan in
monthly installments. and OF course, on
a certain amount OF his stock, the princi-
pal difference from the capital stock saw
ings bank being its mutually. and the
fact that each member participates in the
profits Of the institution"
Necessity for Caution.
c. f. Bentley, the Grand Island banker,
the guide, philosopher and friend" Of the
building and loan association movement IN
Nebraska, sounded a note OF warning that
deserves consideration in other than build
ing and loan circles He cautioned associ-
alton managers against the danger OF
inflated valuation of security offered for
loans Good times" he said, 'are gen
orally characterized by expansion of credit.
The creditor is willing to lend freely for
all seem prosperous and the risk OF loss
seems slight. The borrower does not
hesitate to go into debt for everyone seems
TO be making money. Prices are advancing
and It seems as II the more a man owed
the greater his profits would be. But
every period of prosperity seems to bear
the seeds Of adversely and every period Of
adversely the seeds, OF prosperity. Pros
perity Incites to extravaganza. TO specu-
lation. Adversely incites to industry
economy, to conservatism" Mr.. Bentley
pointed out that real estate is higher than
1t has been for many years. The price OF
building material is excessive. The price
10 INF
on the present tariff. A change in the
tariff, for which there is a strong demand
in some quarters would materially lessen
the value Of our securities. He showed by
a comparative statements Of national banks
that 1.-The nation has been using its credit
to an unheard-of degree and that the law
full money reserve upon which that credit
is based has been constantly growing
proportionately narrower and narrower"
IT am not a pessimist," he says. II am
not predicting trouble. DO not imagine
that a panic is impending" but, ''as to
the management of building associations
1T seems to me that the correct policy for
the present should be, while making loans
freely and literally, to be just little
more conservative, to canvass with a little
more care than usual all the elements that
go toward making a loan safe or unsafe
and when in doubt to take the benefit Of
the doubt and reject the application con-
corning which the doubt arises"
Work of the League.
As historian of the league, T. J. F1ts-
morris Of Omaha reviewed its activities
since It was called into existence in 1892,
and summarized Its achievements as fol-
lows: Put force and vitality into the
building and loan law of 1891; caused a
revision of the constitutions and bylaws
of associations so as to conform with the
| law; secured the exclusion OF foreign as
! soclations from the state; assisted, in driv-
| ing numerical bond companies out of the
state; revised and secured passage of
present building and loan law; initiated
| action against home cooperative COM
! panies, resulting in their destruction
drafted and secured passage of the law
| governing installment investment COM
panies, and prevented double taxation OF
building and loan associations in the
! revenue law. 1.-The Nebraska State league,
he said, a" has not been surpassed by any
other agency of equal membership i1
promoting the welfare OF the people Of
I Nebraska"
G. F. Gilmore of Omaha read a paper
on Investment Stock" covering the
same lines as President Nattinger and
Bank Examiner Whittemore.
r. NJ. Gillian OF Auburn spoke on "Ar
Ideal" which he happily illustrated will
a map Of Nemaha county.
The meeting endorsed c. +. Bentley FOL
president of the United States league anC
instructed the delegation TO the Cincin
natl meeting to present his name and worl
for his election. Mr.. Bentley is now frs