The labor world., 1922-06-24

Some Good Features.
IN addition to the advantages ac-
cruing to a deposilor that an aver
age :rvipgs bank offers, an invest
ment in building and loan asso-
citation has a score Of other features
that a banS would never think Of
granting. In the first place, the in
vestor III the building and loan as
soCiat;on secures a larger rate of in
terest than he would were he to
place his savings in q bank, and in
the second place, besides securing
a larger rate of interest, he can
withdraw his money with the same
ease and under similar conditions
as those that a savings bank affords.
Prominent among the features in
which building and loan investment
overshadows- the plan of the savings
bank are that the shareholder be-
comes a member of the association,
with a full voice in it's management
by reason Of his vote, and that the
borrowing privileges of the associa-
ton are far better than those af-
forded by bank.
Investors Protected.
BY means of this voting privilege,
the officers of the association are
directly responsible to the share
holders, and If their conduct and ad-
ministration is such that it is not
satisfactory, they can be removed
from office at any time. Also, the
advisa bility of granting every loan
is left to the vote of the investors,
so that he constantly is in possession
of information regarding the manner
in which his savings are being used.
The associations have no quarrel
with the banks and have every rea-
son to believe that great majority
of the bankers are and want to be
ON friendly terms with the assOcia-
tions. There should be no serious
clashes between the two institutions
since both have we'll defined fields
of activity but the advantage of be-
ing able to offer more attractive
terms to depositors of saving ac-
counts lies with the building and
loan associations because of the
methods Of their operations.
Records Prove 1t.
The conservative management of
the building and loan associations is
testified to by the reports of the
state banking departments of va
riOus states. In the recent biennial
report of the state hanking depart
ment of Louis ID, dealing with
building and -oan associations, there
. was shown an increase of sc1,397,-
report. Despite failures in other
lines, there has not been single
homestead failure in the state with
in the last twenty years.
In New York state, the report Of
. the banking department relative to
building and loan associations
showed corresponding gratifying re-
suits. At the beginning of this year,
there were 2S1 associations in New
York with total resources Of $131,-
27O,O91, an increase in resources
over those Of the previous year of
5,490,292.
Indiana's Experience.
How we'll the building and loan
associations fulfill their primary en-
deavor to aid in the building of
homes is shown by a report from
the office of the building and loan
department Of the state banking de-
partment of Indiana. In 1921, the
report shows. 2,947 homes were
built, 3,403 were improved and g.
976 were bought through the aid
Of the associations. Likewise in Cali
fornia. where there are ninety-six
associations with a membership OF
over fifty thousand. They are proud
Of the fact that out of every four.
teen houses in the state, one was
bhilt by building and loan asso.
citation. In the United States there
are at the present time between
eight and nine thousand associations
which have financed the building OF
more than a million homes
During the past years of financia
depression in the country, the build