Five Mile Beach weekly journal., 1914-03-27
Good work Of Building AssocIa-
lions

ha0AA8
The building and oar associations of
the country are doing good work. not
alone in teaching people to save, butin
aiding them to secure theirown homes.
In discussing the strong hold the as
soclations have upon the people Nj. s.
Cohen, a widely known expert, says:
HEafety in investment is the para
mount principle which is controlling
savings and loan associations today.
The wild scramble for large premiums
which obtained in years gone by has
disappeared. The directors are looking
more closely to the property offered as
security as we'll as the ability of the
man on the bond 10 carry out his OBJ
legation. The promise to pay an ex-
cessive rate ofinterest does not evidence
surety of the return of the money.
1.-THE voluntary abolition of all usuri-
Gus charges has had a great deal to do
with the growth and prosperity of the
associations.
"Large interest returns have been sac
rificed in the interest of safe banking.
The investor in a savings and loan as
ISOLATION now recognizes the fact that
his money should only receive a fair
return, and that the borrower has rights
as well as the investor.
1.-THE year just closed has proved a
very prosperous one to the savings and
oar associations, and with very few
exceptions, they have all increased
their receipts. Where the assets have
been lowered 1t has been caused by the
maturity of the shares and the with
drawal of large sums ofmoney by MEM
bers who have stayed with the institu-
ton for twelve years.
tOf the money Withdrawn some of it
has come back to the association in the
shape of paid-up stock, on which a
dividend of five per cent, is paid others
having saved the money, desired to
place it in some other form with an idea
that it would bring q better return.
Many who Withdrew their money start
in again on a new book to accumulate
an additional nest-egg.
In one association in which a man
and his wife had been paying $40 a
month, their stock matured in Janu-
airy, and the holders took out paid-up
stock to the value of $1,000. This, at
the prevailing dividends, gives them an
additional $500 q wear.
1.-THE regular payment of a fixed
amount is the main idea in these in
situtions. Formerly, regularity of
which, in many instances, vas SO oner-
u that 1t proved a burden, as these
fines were imposed without regard to
the earning power of the money and
simply as a punitive measure.
when members paid regularly they
never knew Of the fine, but when they
went through sickness or some other
necessity, and payments could not be
made, the burden Of the fine became
apparent,and members Withdrew, feel
ing that they had been imposed upon.
IA small fine equal to a little more
than the loss of interest has a good eff
feet on a member, as 1t cOmpels regu-
-larity of payments, which would not be
made unless there was some compell-
ing force.
The distinctive difference between
savings and loan associations and other
savings institutions is that payments
should be made regularly in certain
fixed amounts at stated intervals.
When payments are not made with
any degree of regularity the a and
loan associations encroach upon the
legitimate field of other institutions
that are founded for savings"