Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-12-31
ASSOCIATIONS
POPULAR WITH MASSES
Nineteen Organizations in Dis
trict Have 1928 Members
and $15,25O,731 Assets.

The work of building and loan assocla-
tons is so generally regarded as local
that most persons fail to realize the large
number Who are stockholders and the
enormous amount of money invested In
these institutions. The recent report OF
the controller of currency contains an IN
teresting table compiled by the secretary
of the United States League OF building
and Loan Associa lions. which shows that
there are J,131 associa tons in the United
States having a total membership Oh
aOo99o1 and total assets of $500. IS2,Gll.
\ very significant fact is also shown IN
the increase in the membership during
the past year, 1876 members. and i'll the
assets, S63, 7S:;, 1872.
The associations of the District OF Co.
l,lmbia enjoy the distinction OF being ill
rertly under the supervision OF the con-
troIler of currency, and his report relating
to them indicates that the people In the
District consider this form OF investment
very favorable. There are nineteen as
sociatons doing business here, which have
i'll force 12S,c32 shares issued to 29.2'b
Stockholders of whom $50 are borrow
ing and 21S43 non-borrowing members
The total assets are Sl52oO, 131 80. This
money represents the savings of the fru-
gal and will in time represent homes anu
taxable property.
Theory of Building Loan Scheme.
The theory OF building loan scheme is
quite simple. though many persons. even
among those who believe in the principle,
do not readily understand it. Ii man
wanted $1,000 for home, he could save
the money easily in ten years. The
amount to be saved would be 500 a year,
or $3.50 a mouth, or SOS each week
~ NJ in rnl
he would have to double the amount he
saved in each week. The saver could put
the money in stocking, and, barring un-
foreseen events. the continued additions
would produce the amount desired in the
given time.
If he should deposit the money in
savings bank the interest allowed would
amount to about one-half of the sum that
the percentage paid would produce. That
is. at per cent, If the whole 81 900 We're
deposited, the addition from interest
would be $40 year, but the saver would
begin with small deposit and the in
crease would be more gradual. This Is
generally equated by allowing half of the
interest rate on half OF the time. Either
way the interest On the $1,000 during the
ten years of saving would amount TO
about 5000. II the deposits were main
tanned at SOS per week the balance IN
the bank in ten years would be about
ST. 300. This is the straight savings plan
and ii is slower than the building loan
plan.
Lend Money to Members.
The building loan as a rule provides for
S. per month Oh the $1,000 dues. mis-
is straight saving. The shareowner sub
scribes for that amount. II that was all
there was in the scheme, the saving
would be $50 a year on $1,000 in share.
or 5000 in ten years.
But the association lends IT, honey
out as soon as there is enough money in
hand from dues to make a loan. They
charge q per cent to the borrower. Thus
each dollar paid In for dues earns per
cent interest. This interest equated equals
5 per cent, and at the end OF ten years
would produce $500. Generally the as
sociations continue longer than ten years.
and by the end of the period the savings
of the individuals and the interest earned
equal their subscription. If they have not
borrowed they then receive the full sum
they subscribed for, or If they have bor-
roWed they get Cancelled mortgage.
The borrower gets his home while he is
pa ying his dues and interest, thus saving
rent. The non-borrower gets his money
back with interest