The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1917-09-20
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

so doing places itself in a stronger fl
nancial position than it would be If it
invested funds in the bonds of rail-
roads. One can always liquidate
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 il 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 became keener and to-
day the average loaning rate is near
er 5l5 per cent. The successful bid
der must pay one months interest
and premium Immediately. I'm addi-
ton he must pay for having the title
blocked Up and tor the registration Of
deeds. II the loan is not approved
i the months interest and premium
Z are forfeited TO the bank boans on
real estate can be repaid in full, but
/ nstially are paid i'm monthly instGll
inents of principal and interest. On
| a. loan of $1,000. thegnontbyj payment
is about 81. and OF the amount IS is
passed to the credit Of the principal.
These credits on loans are called
| dues, and form a sinking fund The
sinking fund participates in the pro-
fits of the bank, and in time elimin-
ates the loan
A bank will not loan less than $50
nor more than $4,000. Loans are
made on shares but never exceeding
their value at the next preceding adj
justment The earnings OF each
bank generally are larger than those
of the ordinary savings bank. For
that reason many persons buy CO.
, | operative shares as an investment. A
majority of the banks pay 5 per cent.
on the money invested in the shares,
, but very large number pay 5ia to
, and few as high as z per cent.
4 In 1915 only four savings banks
paid as high as per cent. on deposits
and most of them only and even
less Thus the return on cooper
alive share is often as large as it is
on gilt-edge bonds, and is much safer
Since 1877 only one cooperative
: bank has been in financial difficulties
al and that institution today is on It's
feet and perfectly sound
fHscsst of Share.
The cooperative share cost 81 q
: month. Each shareholder may hayI
Q from one to % sharesl If the share
holder fails to make the regular
monthly payment on his share OF
I shaBes he is fined two cents per dol
: lar oper month. A dollar per mont
n must be deposited upon each share
/ until, with earnings, II amounts L
= 5000. When a share amounts to 500
d it is payable in cash or draws inter
y est
If no profits were added to tn
d shares, 1t would require 200 months
or 1G 2-3 years to pay up share
e but the profits reduce the time to l
or II years. A shareholder canno
e withdraw his shares without givin
e the bank a months notice. Unde
st such conditions the bank is neve
IS threatened with run on IT, Tn
g shares are transferable and are sui
o ject to the same taxes that saving
y bank deposits are, the taxes hein
IS paid by the bank, The bank can viii
vs. draw shares whenever 1t sees, q
y This proyiso eliminates any possibi
Of ity OF acquiring more money than tn
eel bank needs. New shares are issue
every three or six months. to take tn
ri place OF the series that mature ever
r.. three or six months. iei "oi' ~
C The idea of Christmas clubs sprun
n. from cooperative banks. but they
oil not pay as high rate of interest 2
ct the cooperative bank does. In man
s. ways the cooperative method OF sa
o. ing is the best offered by any BAN
IL uucS sohN'hihb thuN 'hV GOV"
n bank does not-reQuires the shar
err holder to deposit stated amour
n each month. That the cooperatiV
" bank is growing more popular eac
year is shown by the following tab
that gives the number of banks d
no ing business since 1879 and IL
-. growth in the loans on real estat
70 and in the total assets and liabilitie:
@. No of Loans on Asseisai
40 banks real estate liabilito