Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-01-16

istence. Has their work JuStlneo tneir
creation? We think it has. The $S'4ao'-
1861 invested through these associa-
tions is not a large sum of money, Out
il has meant a great deal to the state
of Maine. You will find ct $20o0 eacn.
IT may have been the building OF 1'oo
new homes and has provided nome
for at least 5000 people. But this Is not
all. It has taught the habit OF economy
and thrift to 1866 shareholders. claim
that the same person is a much better
citizen after he has acquired property
and become a taxpayer I claim also
that he is a much happier person. rms
is recognized in many so-calied Tree
countries, where the Individual IS not
admitted to full citizenship until ne
acquires a certain amount Of property.
Certainly. every citizen is much SAFER
when every other citizen has property
with which to take care of himself IN
case of disability. And it seems to ME
that the first Of all property which
should interest any citizen is a home
1t is the best life insurance a man can
have. 1t is also accident and sickness
insurance. 1t is a guarantee against
overdue rent bills and the disadvant-
age of cheap boarding houses.
The Maine Loan and Building AssO-
citation is sometimes thought of by
people as an institution simply for
those who wish to borrow money for
the purpose of building new houses. 1t
is true that the money paid into these
institutions is designed to be loaned
for the building of new houses as far
as possible; but the treasures Of these
institutions are open to everybody as
a depositor or investor. For more than
20 years they have earned and paid
safely 5 per cent. interest to their de-
positors. taking care Of all expenses
and proper guaranty funds. VIII you
look back 20 years and tell me what
has been better than that for the whole
period? What is safer than a mortgage
OH a mans home? When you deposit
your money in the Loan & Building
Association you have right to assume
that it will be loaned to some member
Of that association to help build
house or a home for him; that he will
pay at least per cent. for the money;
that he will give mortgage for its
security; that he will pay his interest
every month. and that he will pay the
same amount on the principal that he
pays in interest every month, SO that
his loan is constantly being reduced
and the interest is paid monthly while
the security remains the same. When
such security as this, with such meth
DDS of doing business, is not a proper
place for the peoples money. 1 don't
know what kind of property it can be
put into where it will be safe. 1t is
true, the rate Of interest is not large.
There is no promise of stock dividends;
there Is no expectation of great rise in
value; there Is no get-rich-quick
Scheme about 1t. But to my Judgment,
in the last 25 years in the State of
Maine. with the opportunity have had
as lawyer and business man to OBJ
Serve how the average man invests his
savings. l feel ! make no mistake in
saying that there has been more money
lost by investors in Maine with the
promise of more than 6 per cent inter-
est, than there has been made.
TO my mind there is nothing more
dangerous for the average mans sa>
ings than the promise of large inter-
est. In the early history of the coun-
try the mortgage loan was the popu-
lar method of investment But the
more recent desire to have ones can
ital where 1t can be quickly turned
into cash, which has been the constant
education of the banker and broker
and stock gambler has led to far
more losses than the investment of
money in several securities which
could not be so readily got at or turn
ed into cash. The fact that a man
could not get his money to put into
some new scheme of great promise,
because it was invested where he
could not cash it Immediately. has
many times saved the investor his
principal. And, as a rule. I have no.
ticed that the man who has stuck to
mortgage loans at fair rates of inter-
est. carefully looking to his security,
has had a much larger estate to ad-
minister than any other class of peo-
pie in our community. 1t is true he
makes no great and sudden advances,
neither does he make any heavy and
paralyzing losses.
The monthly deposit in the Loan &
Building Association might seem to
be a constant grind to the saver, but
IN no other way can saving be made.
There are comparatively few people
who save much from their earnings
With those who do save, it is generally
a pleasure to save Most people see
something they prefer to the money in
their pockets. Such people save little
or nothing. But the man who enters
on the journey of 10 of IA years of
monthly savings with which to create
home, and all these years has the
benefit of the home. very soon ac-
quires taste for this kind of financial
habit. and when once acquired and he
has once saved home in this way,
the whole course of his life is changed
in accordance with such habit. and he
invariably becomes a man of thrift
and prosperity.
l have been reading of late all kinds
Of rules and ways to invest. The mag
azines are full Of articles on this sub
iect. NV rule would be: First, earn
the dollar. and keep it. not waste it in
some foolish fad or unnecessary thfns,
and to keep it invested in some kind
of security that / could see or know
something about. and not be obliged ~
take the word Of some red-vest pro-
moter from the city to find out where
NV money was would not MACE if