The Brattleboro reformer. (Brattleboro, Vt.) 1907-1912, 1907-09-13
HOUSES ARE
BADLY NEEDED
To Accommodate Growth
the Town is Making.
AGITATION OF A PLAN
To Form Building and Loan Associa-
tion and Make II Possible for Peo'
pie of Moderate Means to own
Houses Something Concerning 1t.

| Houses-Somethin Concerning 1t.
| The need of more dwelling hous,
in Brattleboro is rapidly becoming
urgent and the matter is one which
identified so closely with the futuI
growth and development of the tow
that the board of trade has begu
| agitating the formation of a buildin
and loan association in the hope tina
such an organization will help solv
the problem which the communit
must face as it increases in popula
tion. Building and loan associations
or cooperative banks as they ar
called in some states, have been es
tablished and maintained with muc
success in large number of town
| and cities. Not only do they offer
| good opportunity for investment t.
men who have funds at their com
mand, but they make it possible foi
people who could not otherwise hop'
to become property owners to builC
homes of their own and pay for then
. gradually. Associations of this kline
are not in any way antagonistic tC
; savings banks and other financial in
stitutions of that character for the
people whom they accommodate are
those who could not hope to borrow
money in any other way. In fact, they
help banks by cultiyating among peo-
Pile in moderate circumstances the
habit of systematic saving and event.
ually putting them in position
where they will have security on
which to borrow through regulation
channels.
There are no doubt in Brattleboro
many people who would be glad to
build homes of their own if arrange
/ ments could be made whereby they
could borrow money. The ownership
of property as rule makes people
more interested and public.spirited
citizens, and the increased valuations
that are bound to come in this town
within the next few years form an.
other strong reason for becoming
property owner. Then, too, building
association of this kind would be an
extremely desirable thing from the
standpoint of manufacturers and 9th
er employers of labor for the reason
that employees who became members
would be far less likely to give up
their positions, the incentive for saw
ing thus offered acting as a strong
factor in keeping them contented with
their surroundings.
The principal object of building
and loan association is the accommo
dation of men who desire loans but
cannot reasonably expect to pay the
loans within short term of years.
Suppose, for example, 1000 men each
able to save one dollar month agree |
among themselves in order to strength |
en- their purpose to save, to put their j
money together at fixed periods to be
held in some depository until each
shall have accumulated 5000. 1t is
plain that at the end of 200 months
each man being regular in his pay
ments will have saved 5000. Sup
pose that as soon as this agreement is
made one of the members suggests
that instead of allowing the money to
lie idle they put it at interest, placing
the securities for its return and the in
terest thereon into a depository. 1t
is apparent that acting upon this sug,
gestion they will accumulate 5000
each in less than 200 months-possibly
1876 or 13S months. Call this build
ing and loan association with its oIu-
GERS elected The first problem is how
to use the money collected each month.
An association of this kind lends its
money to its own members on real es-
tate security or upon such members
holdings of other kinds. If two or
more members want to borrow the
building and loan plan is to require
zach member to bid for the funds, and
he money is loaned to the one who is
Wiling to pay the highest premium.
This premium is, of course, a profit to
III of the members. The member pays l
interest upon the money borrowed
md in addition pays his monthly as
essments whatever they may be, thus
educing his obligation regularly in
ddition to paying for use of the mon
y. If a member in the compact fails o
o pay his installments when due he is
bliged to make good the loss to the t
ther members by paying fine, and Q
member finds he cannot continue 9
he original agreement he is permitted i
D withdraw and the remaining mem
ers pay him the amount he has paid t
a with a share of the profits, the Il
emainder of the profits being re. t,
aimed to guard against any future b
,ss. 1t will be seen that there are Il
everal sources of profit, namely, in Ii
crest, premiums arising from compe- Z
tion for loans, penalties for non-pay- S,
ent of dues and the portion of the
rofits withheld from members who b
Ill to remain in the compact. Thus A
the end of 126 to 13S months, to in
,ntinue the illustration, each member T
as paid in 1926 to $l3S, and the de, Sc
ository is found to contain money VI
nd securities enough to pay each he
ember, borrower and non-borrower, in
100. Each borrower is entitled to M
I've that amount applied to his mort re
lge and note and each non-borrower te
entitled to his 5000 in funds. ar
To make such an organization eff. ed
ctual from the start it is necessary VIZ
r many of its members to be men Dl
no put their money in wholly for an Fe
vestment and with no wish to bor- ra
W. Under this arrangement there tn
II soon be funds enough on hand to me
gin making loans, and the members SCI
m enter the o0mnqat prinninol1v for th.