The evening world., 1912-11-23
Of State and
Metropolitan Leasues
Of SaOinss and Loan
Associations Tells How
. They Offer Great On.
povfunities to Ware.
q, Farmers Who Seek a
Safe Place for Money.
~ ARcMsALL W. M.EwAN.

oettee Tor men and women Of moderate
means. especially TO thousands who live
D eongested sections Of Manhattan.
Many persons in the early stages of
married life have. Q picture in their
minds Of . house and grounds In the
kss popuiated borouEhs. where the chill
dren can have plenty Of room to play
ana Grow up amid healthful environ
uents. New problems develop, the OBJ
stacies look larger each succeeding year,
end ninety-nine In . hundred never get
anywhere IN this direction. After q fife-
time. they have nothing to show In tho
/ way OF q real homo. Whereas three
fowths Of the rent money could just a.
wei DO In their pockets, SO to speak, a.
u would have paid for home.
Savings and loan associations in this
state. or building and loan associations
n they are called IN New Jersey, have
excellent plans to offer In the way Of
owning homes. They arc the only in
sututions controlled by the Banking De-
pertment OF this State that can lend
"oney up to eighty per cent. Of an APP
pssisso valuaton-in other words, II
!osf mousse costs $500. a savings and
toan association. under the law, can
iend you 1900 on It. The reason for
+ thss privilege Ii that these savings and
loan association mortgages are beinr
pead on In weekly or monthly INSTALL
ments, and the plan will pay a mort
SASe on In twelve years. so that the
mono - then free and clear. Other
mortgages call for interest payments
every SIX months. and reduction OF the
prncspat Is not generally the rule.
SeSngs and loan associa tons do not
buy or build houses; they lend money
on nrst mortgages on improved real
estate. Occasionally money mas been
loaned on unimproved property, but no
association can have more than fifteen
per cent. OF It's assets In this class OF
real estate-in fact. wisely managed
associations will no: listen to unim-
proved real estate applications. In sew
srai associations In the greater city 1t
is now possible for n person with a few
hundred dollars to, arrange his monthly
paymsnts In many Ways Is the hard
and-fast lines of the old building and
loan system have been eliminated
- sAoss associations follow $50 plan OF
w monthly on each $1,000 borrowed
five dollars OF this amount Is Inter. At
At per cent. per annum. and & goes -
reduce the mortgage. In twelve yeas.
the accumulated reduction aucurt. ~
$s0, and as,the money Is earning IL: :rc g,
in the mean time, cquated on a savia.s
bank basis It amounts 10 si.oGo. whcn
ends the $1,000 piy;u,!... y s3.oN mort
gaze means payments OF so :noa,.,,
and So on. one-half always go.9u to y -
AH
Aboat twelve years.
il Is evident that n nan WHO pays
s.5, $50 or more rent every month cal,
own htJ home II he makes up sis m.a1
10 H. Thousands of persons hsre IN
tho metropolitan district and in su oIr-
ban New Jersey have paid for their
homes through the savings or ouild,;:;
and loan associations. They nad little
money to begin with, ard thee. assO
Citations were the only doors open tu
them. The large financial and mortSdS =
lending institutions would not lend them
money for various reasons.
1t should always be kept in mind that
savings and loan associations are Cd
partnership institutions vita no pee
ferred stockholders. Nine-tenshs of ,he
associations are operated from a gocL
citizenship standpoint. They are nor
economicallyS conducted than osnef
financial Institutions because most u.
the boards OF manasement feel that :ney
are promoting seli-:espeet through the
ownership of homes and intoxicating
habits Of thrift and will not take pay
for their services. On this latter po.a,-
thrift-the associa lions welcome depos.ei
OF even s. II month. and every deposit D;
has q voice In tho management Of al.
institution.
A savings and loan association ca.
always pay ~ and per cent. dividends
year after year with perfect safety AID
continue to add to It's reserve, wh'ca
under tho law must be . per cent. Of TIL
assets
The person who has q savings and
loan mortsage Is free 10 pay II OFF ans
time he desires. He has complete con-
troll over II, a. long as he lives up IA
his contract. Formerly. many persons
paid of their mortgages to association
after a few years and transferred then
10 other institutions. where only Interest
was demanded. This 10 not done to '
great extent these days, as many as
sociations will adjust payments to meei
n borrowers wishes. The savings ane
loan associa tion mortgage never needI
70 be renewed--it stands indefinitely
and not a few men are willing to pay
/ ope-half per cent. more for such money
because they do not worry about re-
newals.
There 10 considerable brotherhood-of
man feeling running through the man
sSeansnt Of these associations. In this
nrst place. an applicant for a loan n
the average association must show evi.
dsnces Of being straight" He II likel.
TO be refused II his reputation Is below
par. II. after q few years. troubles
come, the association helps him in every
way possible without detriment to th'
interests Of u other stockholders The
savings and loan association does no
want 10 foreciose his property. and THU
Ia never done until every alternative l,
exhausted.
Finally. tho man or woman OF sinai
means who wants TO set ahead. either
through saving q few dollars or b.
owning Q house. should investigate the
savings and loan plan. II Is mutual
one person Is as good as another. ant
every member can tell where every dol
,i$r 10 invested. n no 10 desires. Tn,
associations are subject to the samt
laws a. State banks and trust com
paniss in the matter Of State exam
aatfoaA