The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1917-09-18
Home Building for
Bennington Families
Urgent Need of Prompt Action in Providing
for the Growth of the Town and the OPP
portunity Offered By Building
and Loan Association

81 uOluS pidCtS llStll Ill stronger IL
nancial position than it would be if it.
invested funds in the bonds of rail
roads. One can always nquidate a
real estate mortgage at favorable
terms, but such is not always the
case with railroad bonds.
Cooperative loans on small houses
to owner and occupant, are especial
ly favored, Money is advanced in in
stalments to build if desired. Loans
on real estate are not made, however,
until after the property has been per
sonally investigated by a security
committee that usually is made up of
real estate experts, after all titles
have been examined, and the board
of directors has passed upon the loan.
The money is sold at auction to the
highest bidder. In the early days the
bid had to be a monthly premium
above per cent. interest. Later
competition, Peeame ksapsp ,apd, to-
day the Ggerass loanigSlat@h silkar-
er 81 peFscahh. The YnSsess fFTg bid
der must spaysJne Ea&AisiihiftiNest
and premium Immediately. In addi-
tionshe srlEssgmN aersaHgipH lfRi ~
! looked 'tip fartf For ~ tx istf9tfuff n
deeds If the loan is not approved
the months interest and premium
are forfeited to the bank, Loans on
real estate can be repaid in full. but
usually are paid in monthly pinsaal
ments of principal and interest On
a loan of $1,000, the monthly payment
| is about $1l, and of the amount S. is
| passed to the credit of the principal
| These credits on loans are called
dues, and form sinking fund The
sinking fund participates in the pro
! fits of the bank, and in time elimin
1 ates the loan.
A bank will not loan less than S5(
nor more than $4,000. Loans are
made on shares but never exceeding
their value at the next preceding ad
| iustment The earnings of eaot
bank generally are larger than thosG
of the ordinary savings bank. 70
that reason many persons .buyi icp
operative shares as an Investments
| majority OF the banks pay per cent
on the money invested in the shares
but a very large number pay 81 t
and few as high as z per cent.
In 1915 only four savings banks
paid as high as per cent. ON deposits
and most Of them only 4 and ever
less. Thus the return on a cooper
alive share is often as large as 1t /,
on gilt-edge bonds, and is much safer
Since 1877 only. one co-operativ,
bank has been in financial difficulties
and that institution today is on it
feet and perfectly sound
Cost of Share.
The cooperative share cost 81
month Each shareholder may hav
from one to rs shares. II the share
holder fails to make the regula
monthly payment on his share o
shares he is fined two cents per DO
lar per month. A dollar per mont
must be deposited upon each shar
until, with earnings, 1t amounts t
$500. When a share amounts to $40
It is payable in cash or draws intel
est.
-
II no prohts were ADDED 10 IN
shares, 1t would require ZOO months
or 16 2-3 years to pay up shar'
but the prohts reduce the tlme 10
or u years. A shareholder canne
Withdraw MS shares without slVln
the Dank months notice unde
such conditions the bank is neye
threatened with run on IT. In
shares are transferable and are SUI
fNrf 7Snn' TI -
Dank deposlts are NJ tne EETNSsi PEN
| paid by the Dark. Inc Dank can VIII